articleIcon-icon

Article

10 min read

Missed the H-1B Lottery? Get a Cap-Exempt Work Visa

Author

Last Update

April 22, 2025

Published

March 31, 2025

Table of Contents

What is the H-1B lottery?

What is the cap-exempt H-1B visa?

The Build Fellowship & Deel: A new pathway

Who can benefit from these cap-exempt work visas?

Benefits of taking the cap-exempt route

How to apply for a cap-exempt H-1B visa (step-by-step)

Take the next steps with Deel & The Build Fellowship

Key takeaways
  1. If you missed out on the H-1B lottery, cap-exempt H-1B visas offer an alternative route to living and working in the United States. These visas are available through qualifying organizations like universities, research institutions, and their affiliated nonprofits, such as The Build Fellowship.
  2. The cap-exempt H-1B visa works through the concurrent employment model, where professionals work a part-time position with a cap-exempt organization while simultaneously working full-time for a regular employer. This is a legally compliant work arrangement recognized by US immigration authorities.
  3. This alternative route offers reliability and certainty for employers and professionals. The application process is straightforward and doesn’t depend on luck in the lottery.

Was your H-1B application unsuccessful in the lottery? You’re not alone. Thousands of talented professionals face this setback every year. But here’s the good news: there’s another way to work legally in the US.

Cap-exempt H-1B visas offer an alternative pathway that doesn’t depend on luck. Deel's partnership with The Build Fellowship allows employers and their candidates to gain access to this alternative route.

In this guide, we’ll explain what cap-exempt H-1B visas are, how they work, and the step-by-step process to get one based on first-hand experience. Let’s turn your unsuccessful lottery application into a great success story.

What is the H-1B lottery?

The H-1B visa program lets companies based in the United States (US) hire foreign workers in specialty jobs. It’s a temporary visa, lasting for up to six years, that enables foreign workers in specialized fields to live and work in the US.

But here’s the catch: according to the US Citizenship and Immigration Services (USCIS), there’s an annual cap of just 85,000 visas, including 65,000 regular visas and 20,000 for people with US master’s degrees.

The problem with this? Over 300,000 applications flood in each year, meaning your chances of being selected and having your visa approved are only about 25%. Three out of four applicants face rejection, not necessarily because they lack skills but because of simple math.

This system hurts global talent and US companies. Businesses lose access to skilled workers, professionals lose career opportunities, and the economy misses out on innovation and growth.

Read more: H-1B Visa: Complete Guide from Immigration Experts

What is the cap-exempt H-1B visa?

The cap-exempt H-1B is a work visa suitable for those who missed out on the H-1B lottery. A cap-exempt H-1B visa works just like a regular H-1B. It allows you to work legally in the US in a specialty occupation. The big difference is that it’s not subject to the annual cap that the H-1B lottery faces. This means no lottery, no waiting until next year to try again, and no uncertainty about your professional future.

However, not all businesses are eligible for cap-exempt H-1B visas. Current H-1B cap-exempt employers include:

  • Higher education institutions
  • Non-profit research organizations
  • Government research organizations
  • Non-profits affiliated with educational institutions
  • Organizations that provide healthcare services to universities

Working for one of these employers lets you bypass the competitive lottery system entirely.

Read more: What is the Relationship Between Non-Profit Organizations and the H-1B Work Visa?

The Build Fellowship & Deel: A new pathway

Deel has partnered with The Build Fellowship to create a smooth pathway to cap-exempt H-1B visas. This program connects talented professionals with eligible cap-exempt employers.

Here’s how it works: The Build Fellowship is a nonprofit affiliated with US universities. Through this program, you can secure a cap-exempt H-1B visa. Once you have H-1B status, you can also work for a regular (cap-subject) employer at the same time. This approach is called the ‘concurrent H-1B model’.

Concurrent employment is completely legal and recognized by US immigration authorities. You maintain your primary employment with the cap-exempt employer while also working for another company.

Meanwhile, Deel manages the entire process behind the scenes. We handle all the paperwork, legal requirements, and coordination between all parties.

My experience with [Deel] was nothing short of amazing and was efficiently executed, the team helped me navigate the H-1B process with great knowledge of the process and responded quickly to my questions with the right guidance. I would highly recommend their services to anyone looking for legal services in the US. I am beyond grateful because they have a team of exceptional people working there and understand their clients’ needs very well. Keep doing what you guys are doing!!

Haider Piracha,

Markaaz

Deel Immigration
Get worldwide visas without the legwork
Hire and retain the best global talent, while smoothing out the usual visa hurdles. Deel’s in-house immigration support handles the entire visa process, enabling employees to work from 50+ countries—and counting.

Who can benefit from these cap-exempt work visas?

Both individuals and organizations can benefit from cap-exempt H-1B visas. Including:

Global talent

If you’ve faced rejection in the H-1B lottery, this alternative route offers hope. Instead of waiting another year, you can start working in the US much sooner. This applies to recent graduates on OPT, professionals abroad, and even those currently living in the US on different visas.

US employers

US-based companies that miss out on visas through the H-1B lottery risk losing excellent candidates, which can result in project delays. The cap-exempt route lets organizations hire and retain global talent without having to endure the lottery gamble. This gives you more stability when hiring new employees from overseas.

Entrepreneurs and founders

Setting up a business in the US can be particularly tricky for foreign entrepreneurs and founders. The cap-exempt route offers a legal way to work in the US while building and scaling your own company.

I can sincerely say that [Deel] is the catalyst immigrant entrepreneurs need to build a dream company in the dreamland! They are a knowledgeable and friendly team, creating an experience beyond typical attorney-client relationships. [Deel] is a true living example of a great team: whoever you interact with, you feel a fully streamlined, personalized, and high-precision experience. I’m beyond grateful to be able to work with this incredible team!

Ari Nejadmalayeri,

Wellian

Benefits of taking the cap-exempt route

The cap-exempt H-1B visa offers huge benefits for both employers and employees.

No lottery system

The biggest advantage is clear: there is no random selection process. Your visa approval depends entirely on qualifications and eligibility, not luck. As a result, you’ll have a lot more certainty about your career or hiring processes.

Faster processing of applications

The standard H-1B cycle means applying in March for an October start date (that’s if you’re selected). This offers little flexibility and a long wait for those available to start sooner.

On the other hand, with a cap-exempt H-1B visa, you, or the employee, can apply and start working as soon as the application is approved. This can save months of waiting.

Secure talent retention

For employers, the cap-exempt H-1B route reduces staff turnover caused by visa issues. You’re free to hire confidently, knowing that your employees won’t have their applications rejected in the H-1B lottery. This is a great benefit for the company as a whole.

Legal and scalable solution

This isn’t a loophole or temporary fix. Cap-exempt H-1B visas are perfectly established in immigration law. The concurrent employment model has legal precedent, so you can rest assured that you’re taking a safe route.

[Deel] has taken the dreaded H-1B process and made it as simple as posting a new job on a job board.

Stewart Fortier,

Banzai

How to apply for a cap-exempt H-1B visa (step-by-step)

Apply for a cap-exempt H-1B visa in a few simple steps. Here’s how:

1. Check eligibility

First, check if you qualify with The Build Fellowship. You’ll need the following visa requirements:

  • A Bachelor’s degree or equivalent work experience in a specialized field
  • The ability to dedicate 5+ hours per week to educational programming initiatives and workforce development
  • A benefactor (a company, organization, or individual) willing to support the Fellowship costs–you cannot fund your own Fellowship

2. Book a consultation

Next, schedule a consultation with Deel and The Build Fellowship’s immigration experts. This call is for you to find out more about our offering and evaluate if the cap-exempt H-1B visa is suitable for you.

The consultation call is free and comes with no obligation, so if you’re simply looking to find out more, don’t hesitate to get in touch!

3. Complete the application process

After your visa consultation, qualifying candidates will be guided through how to submit their application. You will need to provide relevant documents confirming your educational background, specialized skills, and professional experience.

4. Evaluation and contracting

Once your application has been received, you or your candidate will be screened and H-1B eligibility evaluated. If approved, contracts will be signed between all parties involved.

5. Visa processing

The next step is visa processing. This is where the legal work begins.

Deel will step in and help develop and process all the necessary documentation. Your cap-exempt H-1B petition is filed and awaiting approval. This usually comes within 6-8 weeks if there's no Request for Evidence (RFE).

6. Begin your Fellowship

Once your visa has been approved, you're ready to start your part-time position with the cap-exempt employer. Remember, this position requires a minimum of 5 hours per week. Your full-time employer can then file a concurrent visa petition.

7. Maintain your Fellowship status

To keep your visa status valid, you must fulfill your commitment and continue your concurrent employment alongside your primary job.

Preparing the H-1B petition is remarkably easy with [Deel]. The [Deel] team provides a wealth of knowledge about immigration in the workplace and simplifies a complex process for our legal and HR teams using a tech-driven approach.

Legal team,

Avalara

Take the next steps with Deel & The Build Fellowship

Missing out on the H-1B lottery doesn’t have to ruin your career plans. Cap-exempt H-1B visas are a life-changing alternative for international professionals and the companies that want to hire them.

Through Deel's partnership with The Build Fellowship, this alternative route becomes more accessible than ever before. We’ll guide you through every step, from the eligibility assessment all the way through the visa approval and beginning the program.

Ready to start your journey? Visit The Build Fellowship x Deel Partnership to find out more and begin your application.

Book a free 30-minute product demo

Experience a personalized product demo and get all your questions answered by our experts

G2OrangeLogo-icon

4.8/ 5

 7531 reviews

We respect your data. By submitting this form, you agree that we will contact you in relation to our products and services, in accordance with our privacy policy.

Contractor or employee? Sign up here instead.