> Employers are considered to be H1B dependent if they have less than 25 workers and more than 7 H1B workers; between 26 to 50 workers and more than 12 H1B workers; or more than 50 workers with 15% or more of them being H-1B foreign nationals. In this case, H1B dependent employer must fulfill 2 additional requirements.
> Displacement of US workers: An H1B dependent employer must attest that by hiring a H1B worker, it is not displacing any US worker for a similar position within 90 days before or after filing a H1B petition.
> Recruitment efforts: The H1B dependent employer must also attest to making good faith attempts to recruit US workers and offering prevailing wages for this position. When hiring an H1B worker, it is important for employers to recognize the attendant responsibilities that they must shoulder. Although the requirements are not excessively burdensome, the employer is required to maintain some paperwork to demonstrate its compliance with the law. A clear understanding and fulfillment of these requirements will minimize possible civil penalties and ensure that the employer will be permitted to petition for future H1B workers.
Hi Peter, my apologies. I was not clear enough. The scenario is like this. One of my friends is a citizen. Our plan is that he will establish a startup and another set of friends( all on h1B)will work as employees for that startup. Is there a cap on how many H1B employees can a startup hire?
A company with a high percentage of H-1B workers (there's a formula) can be deemed "H-1B dependent" and this then brings in an onerous set of requirements.