Immigration Compliance Checklist for Series A Companies

If your Series A company sponsors foreign workers, immigration compliance is no longer optional. Between the new wage-weighted H-1B lottery, a $100,000 supplemental payment for certain H-1B petitions, DOL's Project Firewall enforcement initiative, and a sharp increase in ICE I-9 audits, early-stage companies face the most complex regulatory environment in a decade. A single missed I-9, an outdated LCA, or a failed FDNS site visit can trigger six-figure penalties and jeopardize an employer's ability to hire global talent. This guide walks through every compliance obligation Series A employers need to know in 2026, from setting up infrastructure to maintaining ongoing compliance across all major visa categories.

Visa Categories That Matter Most for Series A Companies

Series A startups typically rely on a small set of visa categories, each with distinct compliance requirements. The right choice depends on the employee's background, the company's structure, and post-2025 budget realities.

H-1B: Specialty Occupation

The H-1B remains the most common work visa, but the economics shifted significantly in 2025 and 2026. The annual cap is 85,000 (65,000 regular plus 20,000 for U.S. advanced degree holders). For FY2027, USCIS registration ran March 4 to 19, 2026, with a $215 per-beneficiary fee.

USCIS replaced the random lottery with a wage-weighted selection system effective February 27, 2026. Registrations now receive weighted entries based on OES prevailing wage level: Level IV receives four entries, Level III three, Level II two, and Level I one. This structurally disadvantages startups offering entry-level wages. The January 17, 2025 H-1B Modernization Rule introduced founder-friendly provisions: founders with a controlling or majority ownership stake can now self-sponsor through their corporate entity for an initial 18-month period, and the "bona fide job offer" standard replaced the prior employer-employee relationship test.

Every H-1B filing requires a certified Labor Condition Application (LCA) filed through DOL's FLAG system, attesting to paying at least the higher of the actual or prevailing wage, maintaining equivalent working conditions, the absence of strikes, and proper notice to employees.

O-1A: The Preferred Founder Visa

For startup founders and exceptional early employees, the O-1A (extraordinary ability in business, science, or technology) has no annual cap, no lottery, and strong approval rates. Applicants must meet at least three of eight criteria, including nationally recognized awards, published material about them, original contributions of major significance, high remuneration, or critical roles at distinguished organizations. Accelerator acceptances, VC funding, patents, and open-source contributions can all serve as strong evidence.

TN: Fast Track for Canadian and Mexican Professionals

The TN visa covers over 60 USMCA-listed professions including Computer Systems Analyst, Engineer, Accountant, and Economist. Canadian citizens apply directly at a U.S. port of entry for a $50 adjudication fee (plus a $30 I-94 fee at land borders) with same-day processing. Valid for up to three years with unlimited renewals. Key limitation: TN status does not carry dual intent, so pursuing a green card can raise complications.

L-1A/L-1B: Intracompany Transferees

The L-1A allows founders who were employed abroad at a qualifying organization for at least one continuous year within the preceding three years (in a managerial, executive, or specialized knowledge capacity) to transfer to a U.S. subsidiary in a managerial or executive role. The "new office" L-1 grants only a one-year initial approval, during which the company must show it can support a genuine managerial role. Its key strategic advantage: the L-1A leads directly to the EB-1C green card with no PERM labor certification required.

E-2: Treaty Investor Visa

The E-2 requires a "substantial" at-risk investment (practically $80,000 to $300,000 for tech/service businesses) and nationality in a treaty country. Notable exclusions: India, China (mainland PRC), Russia, and Brazil lack qualifying treaties. The E-2 has no statutory maximum duration and can be renewed indefinitely, but it carries no direct green card pathway. E-2 spouses receive work authorization incident to status.

Building Your Compliance Infrastructure From Scratch

Phase 1: I-9 Verification

Every employee, including founders, must have a completed Form I-9. The current edition (01/20/2025) is valid through 05/31/2027. Section 1 must be completed on or before the employee's first day of work. Section 2 must be completed within three business days of the start date.

The cardinal rule: employees choose which documents to present. Requesting specific documents, rejecting facially valid documents, or requiring more documentation than necessary constitutes "document abuse" under INA §274B. Penalties for I-9 paperwork violations range from $288 to $2,861 per form per the January 2025 DHS inflation adjustment. Penalties for knowingly employing unauthorized workers are tiered: $716 to $5,724 per individual for a first offense, $5,724 to $14,308 for a second offense, and $8,586 to $28,619 per individual for third or subsequent offenses.

A permanent alternative procedure allows remote document examination via live video for employers enrolled in E-Verify. This is particularly relevant for remote-first startups.

Retention rules: I-9 forms must be kept for three years from the hire date or one year after termination, whichever is later. I-9s should be stored separately from personnel files to limit exposure during audits.

Phase 2: H-1B Public Access File and LCA Posting

Every H-1B, H-1B1, and E-3 employer must create a Public Access File (PAF) within one working day of filing the LCA. The PAF must contain the certified LCA, the worker's rate of pay, a description of the actual wage system, the prevailing wage rate and its source, evidence of LCA posting for 10 days, and a summary of benefits offered to U.S. workers in the same classification. Any member of the public can request access, and the file must be made available within one working day.

For non-unionized workplaces, the LCA must be posted in at least two conspicuous locations at each place of employment for 10 days, on or within 30 days before filing with DOL, per 20 CFR § 655.734. Electronic posting is permitted if the employer normally communicates electronically with employees. PAFs must be retained for one year beyond the last date of H-1B employment under the LCA; or, if no H-1B nonimmigrant was employed under the LCA, one year from the LCA's expiration or withdrawal.

Phase 3: Preparing for FDNS Site Visits

USCIS's Fraud Detection and National Security (FDNS) directorate conducts unannounced site visits to verify that petition details match reality. The January 17, 2025 H-1B Modernization Rule codified site visit authority, and cooperation is now mandatory. Refusal can result in petition denial or revocation.

Visits typically last 30 to 120 minutes. Officers verify business legitimacy, the beneficiary's presence and duties, salary alignment with the LCA, organizational structure, and worksite accuracy. They may interview the H-1B worker, their supervisor, HR, and sometimes immigration counsel.

Preparing Your Team for an FDNS Site Visit: Common preparation steps include designating primary and backup contacts at every office location, training reception staff to recognize FDNS officers (they carry government ID and a compliance letter), maintaining organized petition files and PAFs in an accessible location, and briefing every H-1B employee on their exact job title, duties, work location, salary, and supervisor name as listed on the petition. If a beneficiary is absent during a visit and cannot be located, the consequence may be a Notice of Intent to Revoke.

Phase 4: Anti-Discrimination Compliance and E-Verify

INA §274B prohibits citizenship status discrimination, national origin discrimination, unfair documentary practices, and retaliation. During interviews, permissible questions are limited to: "Are you authorized to work in the U.S.?" and "Will you require sponsorship?" Employers cannot prefer visa holders over U.S. workers and cannot require specific I-9 documents based on perceived citizenship or national origin.

E-Verify is voluntary at the federal level for most private employers but mandatory for federal contractors and in several states including Alabama, Arizona, Florida (25+ employees), Georgia (more than 10 employees), Mississippi, North Carolina (25+ employees), South Carolina, Tennessee (35+ employees), and Utah (more than 150 employees). E-Verify enrollment is also required to use the remote I-9 alternative procedure. Once enrolled, employers must verify all new hires; selective use is prohibited.

What Changed in 2025 and 2026: The Most Impactful Regulatory Shifts

The Wage-Weighted Lottery and $100,000 Payment

The random H-1B lottery was replaced by a wage-weighted selection system effective February 27, 2026, applied to FY2027 registrations. Level IV positions receive four times the selection probability of Level I positions. A Presidential Proclamation (September 19, 2025) also imposed a $100,000 supplemental payment on new H-1B petitions for beneficiaries outside the U.S. without valid H-1B visas. The practical effect is a strong push toward alternative categories like O-1A, TN, and L-1 for overseas hires, and toward hiring foreign nationals already in the U.S. The $100,000 payment generally does not apply to amendment petitions, change-of-status filings (e.g., F-1 to H-1B), or extensions with the same employer, provided the beneficiary is in the U.S. in valid status and the petition is filed as a change of status or extension of stay rather than for consular processing. The proclamation is set to expire September 21, 2026, unless extended, and faces pending legal challenges.

Project Firewall: DOL's New H-1B Enforcement Initiative

Launched September 2025, Project Firewall enables the Secretary of Labor to certify H-1B investigations where reasonable cause exists, even without a formal complaint. Focus areas include wage underpayment, benching (failing to pay during employer-caused downtime), worksite discrepancies, and displacement of U.S. workers. The initiative coordinates enforcement across DOL, DOJ, EEOC, and USCIS with interagency data sharing.

Surging ICE I-9 Audits

ICE audit volume in early 2025 ran at approximately ten times the 2024 rate per DHS enforcement data. An April 2025 IRS-ICE memorandum of understanding initially allowed enforcement access to individual taxpayer identity records, though a federal court subsequently blocked further disclosures. Companies that cannot produce organized I-9 records within three business days of a Notice of Inspection face maximum penalty assessments with no good-faith mitigation.

Common Compliance Pitfalls That Sink Startups

Wage miscalculation is the highest-dollar risk. Employers must pay H-1B workers the higher of the actual wage (what similarly situated U.S. workers earn) or the prevailing wage. Classifying experienced roles at Level I to minimize costs is a red flag for both USCIS and DOL. Benching triggers back-pay liability from the first day of nonproductive time.

Worksite changes without amendments create silent violations. Any move outside the Metropolitan Statistical Area covered by the current LCA requires both a new LCA and an amended H-1B petition before the employee begins work at the new location, unless the short-term placement exception under 20 CFR § 655.735 applies (generally up to 30 workdays at a non-covered location, extendable to 60 workdays under specific conditions). A home office counts as a worksite.

Corporate restructuring can unravel immigration status. In a stock purchase, the employer entity remains the same and existing petitions continue. In an asset purchase, the acquiring entity must formally assume all immigration obligations as a successor-in-interest before transferring employees. If the predecessor dissolves first, H-1B petitions are automatically revoked.

Offboarding sponsored workers incorrectly extends wage liability. Terminating an H-1B employee requires three steps: (1) written notice to the employee, (2) written notification to USCIS requesting petition withdrawal, and (3) a written offer of reasonable return transportation costs. If any step is missed, the employer remains liable for continued wages at the LCA rate. The terminated worker is eligible for up to a 60-day grace period (or until the end of the authorized validity period, whichever is shorter) to find a new employer, file a change of status, or depart, though this grace period is discretionary and DHS may shorten or eliminate it on a case-by-case basis.

Green Card Sponsorship as a Retention Strategy

Start Earlier Than You Think

Given PERM processing times of approximately 17+ months and the need to file a PERM application or I-140 petition at least 365 days before an H-1B worker's 6-year limit (to qualify for AC21 extensions under INA § 106(a)), the practical trigger is year 3 to 4 of H-1B status. For Indian nationals, the current EB-2/EB-3 backlog depth is approximately 12 years based on the gap between the Final Action Date and the present, though the prospective wait time for new filers may be significantly longer given the slow pace of priority date advancement. Every month of delay pushes the priority date further back. Starting early is both a compliance necessity and a powerful retention signal.

PERM vs. EB-2 NIW: Two Paths

PERM labor certification (EB-2 or EB-3) is employer-sponsored and requires prevailing wage determination (approximately 3 to 4 months), structured recruitment (60+ days), and DOL adjudication (currently approximately 17+ months per DOL FLAG data). All PERM costs must be paid by the employer. Total cost through I-140 approval typically runs $10,000 to $20,000 per employee in combined government filing fees and attorney fees, including Alma's flat-fee PERM pricing of $8,000 and Alma's I-140 attorney fee of $4,000.

The EB-2 National Interest Waiver eliminates both PERM and the job offer requirement. Under the Dhanasar framework, the applicant demonstrates substantial merit and national importance, that they are well-positioned to advance the endeavor, and that the balance favors waiving standard requirements. The timeline with premium processing is 45 business days for the I-140. This lets key employees self-petition without burdening the company with PERM obligations. Alma's EB-2 NIW attorneys prepare petitions in approximately 2 weeks with an industry-high approval rate for qualified cases.

Green Card Strategy for Series A Companies: For retention of engineers and technical staff, PERM is typically initiated around the 3-year mark of H-1B status. For founders and exceptional talent, EB-2 NIW or EB-1A are self-petition options with no PERM required and significantly faster timelines. For executives transferring from abroad, the L-1A to EB-1C pathway skips PERM entirely. The USCIS Visa Bulletin is published monthly and tracks filing date movements.

Portability Rules

Once an I-485 adjustment of status application has been pending for 180+ days and the beneficiary has an approved or approvable I-140 petition, the employee can change employers under AC21 portability, provided the new position is in the same or similar occupational classification. An approved I-140 retains its priority date even if the employee leaves after 180 days of approval. Green card sponsorship creates a period of mutual commitment during PERM and early I-140 stages, followed by increasing flexibility as the process matures.

Why Choose Alma for Immigration Compliance?

Read success stories from Alma's startup clients including Series A founders, engineers, and technical leaders.

Traditional law firms often leave Series A companies juggling spreadsheets, missed deadlines, and inconsistent advice from rotating associates. Alma's attorney-led, tech-enabled platform was purpose-built for high-growth companies sponsoring foreign talent.

Platform-driven compliance: Alma's dashboard automates deadline tracking, visa expiration alerts, and document organization across an entire foreign national population. Real-time case status, cost projections, and compliance tracking live in one place.

Transparent, flat-fee pricing: Alma's per-visa pricing is charged upfront with no hidden costs. H-1B Cap filings start at $3,500, O-1 new petitions at $8,000, and PERM labor certifications at $8,000. RFE responses, FedEx, and administrative charges are included in every case fee. Payment plans (50/50) are available for businesses that prefer flexibility.

Dedicated attorneys with startup expertise: Every client receives a dedicated attorney (not rotating associates) who knows their case. Alma attorneys respond within 4 to 6 hours on business days, and the platform provides 24/7 visibility into case progress from document upload through USCIS decision.

Built for scale: From startup through growth to enterprise, Alma's infrastructure grows with you. White-glove migration from existing vendors, bi-weekly status calls with your lead attorney, and volume discounts for portfolio companies of Y Combinator, Techstars, and Pear VC.

Get started with a consultation to assess your company's compliance posture and build an immigration strategy that scales.