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Quota Exempt H-1B's
Only 65,000 foreign nationals per year can be issued visas or given status in H-1B classification. For FY2005, the 65,000 H-1B cap was reached on August 10, 2005. This resulted in a great deal of hardship to both employers and H-1B candidates who did not qualify for the additional 20,000 H-1B's set aside each year for holders of U.S. Masters Degrees or higher. In addition, certain H-1B employees are exempt from the H-1B quota cap. The numerical limitations do not apply to:
1. H-1B workers employed by institutions of higher education as defined by the Higher Education Act of 1965, or
2. A related or affiliated nonprofit organization (a university affiliated teaching hospital, for example).
3. A nonprofit organization primarily engaged in applied or basic research; or
4. A governmental research organization.
The cap also does not apply to H-1B extensions of status with the same company, a petition for a second H-1B, transfers from one H-1B employer to another H-1B employer. The cap does apply, however, to an H-1B transfer applicant who was previously working in a quota exempt H-1B position (e.g. for a government research organization) and now wishes to transfer to a for-profit cap-subject organization.
A recent memo issued by the USCIS broadened H-1B Quota Exempt issuance, especially for IMG/FMG's and others who worked geographically at a quota exempt institution, even if technically working for a quota-subject (for-profit) petitioning employer; ex) Hospitalists.