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H1B vs H4 EAD: Which is Better?
by Phil on May 7, 2024 10:51:28 AM
Understanding H1B and H4 EAD
What is H1B?
The H1B is a nonimmigrant visa that allows U.S. companies to sponsor foreign workers in occupations requiring specialized skills or knowledge. Since the USCIS moved to an online registration system, we’ve seen a massive increase in applications–more than
Because the H1B cap allows for only 85,000 visas to be issued each year through the H1B lottery system, the competition remains intense, leaving many qualified applicants without being selected an H1B visa. In January 2024, the USCIS announced measures to crackdown on potential abuses of the H1B lottery, implementing new beneficiary-centric selection process (i.e. selection by unique beneficiary).
However, according to USCIS data released last week, the H1B lottery for the FY 2025 cap season was still highly competitive, with a selection rate of only 25% as USCIS selected 114,017 beneficiaries from about 442,000 applicants. This pool size was similar to the previous year, and the number of participating employers remained consistent at around 52,700.
What is H4 EAD
An H4 EAD is a work authorization document that allows the spouses of certain H1B holders to work in the United States. To qualify for an H4 EAD, you must be married to an H1B visa holder with an approved Form I-140 or who has been granted an H1B extension beyond the standard six-year limit, due to a pending employment-based green card application.
Additionally, you must maintain your H4 status without any other work authorization. The H4 EAD provides you the flexibility to work for any employer in the United States.
If you have not got your H4 EAD card, but want to work in the US, check out our previous article and explore your options!
Comparing H1B and H4 EAD
Pros and Cons of H1B
Pursuing an H1B visa can offer significant advantages, including specialized job opportunities and a pathway to U.S. residency. However, it also involves a complex and competitive application process, and uncertainties regarding visa approvals can pose challenges for applicants.
Some advantages of H1B visas include:
- Direct Employment Eligibility: The primary advantage of the H1B visa is that it allows the holder to work in specialty occupations directly without needing any additional authorization. This visa is tied to the employer who sponsors it, making it ideal for professionals who have secured a position that requires specialized knowledge.
- Independent Status: Unlike H4, the H1B visa is not dependent on the status of another visa holder. The individual’s right to stay and work in the U.S. is independent of anyone else’s status.
- Job Flexibility: H1B visa holders can change jobs, but they must have a new H1B petition approved for each new employer. This provides some flexibility to pursue different employment opportunities within the field of specialty.
- Employer-paid fees: One significant advantage of the H1B visa is that the mandatory application fees are generally paid by your employer, reducing your financial burden.
However, the H1B visa also includes some notable disadvantages:
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Annual lottery system: The majority of H1B visa petitions are subject to an annual cap, with visas awarded through the H1B lottery system. This both reduces your likelihood of securing an H1B and limits the period during which you can apply, which can lead to uncertainty as you plan your career.
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Specialty occupation requirement: The H1B is designed specifically for individuals who will work in a “specialty occupation,” defined as a position requiring specialized knowledge. One of the most common reasons for an H1B RFE is the USCIS determining the applicant’s position does not meet the criteria for a specialty occupation.
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Educational requirements: To qualify for an H1B visa, you must possess at least a bachelor’s degree in a field related to the job you’ll undertake. This can potentially exclude individuals with significant professional experience but no formal degree in the relevant field.
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Complex application process: Obtaining an H1B involves undergoing a complicated process that includes preparing extensive documentation, adhering to tight deadlines, and coordinating with potential employers and possibly legal representatives.
Pros and Cons of H4 EAD
Pursuing an H4 EAD allows nonimmigrant spouses to work in the United States, offering both financial independence and professional growth. However, possible gaps in work authorization and dependence on the primary visa holder’s status can present challenges and uncertainty.
Notable advantages of an H4 EAD include:
- Employment Flexibility: One of the biggest advantages of the H4 EAD is that it allows the holder to work in any lawful job, without any restriction on occupation or employer. This includes self-employment and starting a business, offering broader employment opportunities compared to the H1B.
- No annual cap: Unlike the H1B, the H4 EAD is not subject to an annual cap or a lottery system. This helps to ensure that all eligible applicants can obtain an EAD without having to compete for a limited number of slots or deal with the uncertainties of a random selection process.
- Easy application: The process to obtain an H4 EAD is relatively straightforward, requiring only the submission of Form I-765, Application for Employment Authorization.
Some disadvantages of an H4 EAD include:
- Dependent Status: The H4 visa is entirely dependent on the status of the primary H1B visa holder. If the H1B visa is revoked or expires, the H4 status is also affected.
- Selective eligibility: The H4 EAD is only available to spouses of certain H1B visa holders who are on the path to permanent residency, with an approved I-140. This limitation restricts the number of individuals who can benefit from this provision.
Navigating H4 EAD Issues
If you're on an H4 visa, certain scenarios can jeopardize both your eligibility to work and your legal status in the United States. When an H4 visa holder faces situations such as a divorce or their spouse losing their job, they face specific implications for their visa status.
Spouse Loses Job
If your spouse loses their H1B job, they generally have a 60-day grace period to find new employment and transfer their H1B status, change their visa status, or leave the United States. During this grace period, your H4 visa status remains valid. If your spouse cannot find employment within this period and must leave the United States–or if they must switch to a new visa status–you would also need to leave the country or change your visa status.
Divorce
H4 visa status is dependent on being married to an H1B visa holder. If a divorce occurs, the H4 holder loses their dependent status. In this scenario, there exists no grace period, and you may begin to accumulate unlawful presence once the divorce is finalized. To avoid this, you will either need to leave the United States or apply for a change of status before the divorce is final.
Choosing Day 1 CPT as a Solution
If you’re an H4 visa holder dealing with an impending divorce or the loss of your spouse’s H1B job–or if you cannot otherwise secure work authorization–exploring Day 1 CPT programs can provide an ideal solution. Curricular Practical Training (CPT) allows international students to engage in employment opportunities directly related to their major field of study.
While CPT eligibility generally requires you to be enrolled in your program for one academic year, Day 1 CPT programs are unique in that they allow you to start working from the very first day of your program, providing immediate financial support and hands-on professional experience.
One significant benefit of Day 1 CPT is the ability to work full-time while pursuing your studies, which can be particularly helpful if you suddenly need to become financially independent. Additionally, Day 1 CPT programs often feature low onsite requirements, allowing you to better balance work and education. Moreover, these programs facilitate professional networking opportunities, linking you with potential long-term employers from the onset of your academic program.
To change your visa status from H4 to F1 and enroll in a Day 1 CPT program, you’ll need to gather the following documentation:
- Acceptance letter from an institution that offers Day 1 CPT
- Evidence of financial ability to cover tuition and living expenses
- Valid passport and recent passport-style photographs
- Completed Form I-539, Application to Extend/Change Nonimmigrant Status
The process involves enrolling in a university that offers Day 1 CPT and shifting from H4 to F1 by submitting a change of status application to the USCIS. Once you’re enrolled in the Day 1 CPT program and have secured F1 visa status, you can start working in a role related to your field of study immediately.
Conclusion
Deciding between pursuing an H1B visa or an H4 EAD depends on your personal circumstances. While the H1B can be ideal for those in specialty occupations seeking long-term employment opportunities, it involves a competitive and uncertain lottery process.
For spouses of H1B visa holders with an approved I-140, the H4 EAD offers a viable alternative, enabling them to work without being tied to one employer or field. When immediate work is necessary, pursuing an EAD while in H4 status can be particularly valuable. When choosing between H1B and an H4 EAD, consider both your long-term career goals as well as your financial needs.
If you remain uncertain about which option best fits your needs, or if you are exploring immediate work opportunities while waiting for your EAD, please reach out to us for guidance. We’re here to help you understand your options and thrive in the United States.