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A Flexible Alternative to the H-1B Visa: How EOR Empowers Small Businesses

Learn how EOR can help small businesses bypass H-1B visa challenges and hire international talent faster and more easily.

Blog Author - Janelle Watson
Janelle Watson
Sep 23, 2025 • 3 minutes
Blog Author - Janelle Watson
Janelle Watson

Janelle Watson provides content marketing for the international team at Justworks. With a background in higher education and journalism, Janelle helps tell stories that make international expansion and EOR accessible.

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Table of Contents

The H-1B Visa: Competitive, Complex, and Constrained

What Is an Employer of Record?

How EOR Solves for H-1B Visa Challenges

Why Small Businesses Choose Justworks EOR

Leave the Visa Woes Behind

Hiring top-tier talent is tough in any market. For small businesses navigating strict U.S. visa caps and complex immigration laws, it can feel nearly impossible. The H-1B visa has long been a popular path for hiring foreign professionals, but with low acceptance rates, annual lotteries, and long processing timelines, many employers are left without the talent they need when they need it.

That’s where an Employer of Record (EOR) solution comes in.

The H-1B Visa: Competitive, Complex, and Constrained

The H-1B visa allows U.S. employers to hire foreign workers in specialty occupations, often in fields like engineering, IT, or finance. It’s commonly used to bring in highly skilled professionals when local candidates aren’t available.

While the program can provide access to global talent, it comes with significant limitations:

  • Strict annual caps: Only a certain number of new H-1B visas are issued each year, despite growing demand. In many cases, applications are rejected simply due to volume.

  • A lottery-based system: Employers cannot guarantee a candidate will be selected, which adds uncertainty to hiring plans and creates frustration for candidates and teams alike.

  • High legal and administrative costs: The petition process is expensive in legal retainers, filing fees, and compliance-related costs.

  • Long timelines: Even if a candidate is selected, the application process can take several months. That delay can disrupt team productivity, product roadmaps, or client deliverables.

For many small businesses, these hurdles create too much friction. That’s why more companies are choosing to hire internationally through a global EOR like Justworks instead.

What Is an Employer of Record?

An Employer of Record is a third-party organization that enables businesses to hire and pay employees in other countries without having to set up a legal entity there. The EOR becomes the legal employer of your team member abroad, managing compliance, payroll, benefits, and HR tasks on your behalf.

With Justworks’ EOR solution, you can onboard talent in top international markets quickly and compliantly, without having to worry about the hurdles of trying to bring talent to the U.S. on an H-1B visa. 

You maintain control over the employee’s day-to-day work, while Justworks handles the behind-the-scenes logistics, everything from setting up local payroll and tax withholding, to supporting access to regionally appropriate benefits.

How EOR Solves for H-1B Visa Challenges

An EOR unlocks access to international talent without needing to navigate the complexities of U.S. immigration. Here’s how:

1. No Visa Limitations

With an EOR, your candidate can be located outside of the U.S. and still join your team. There’s no need to rely on a visa lottery or wait for approval from immigration authorities. This flexibility is particularly helpful when trying to retain employees who didn’t win the H-1B lottery or who are facing expiring work authorization.

2. Faster Hiring Timelines

Onboarding through an EOR can take as little as a few days, compared to the months-long wait associated with H-1B processing. For fast-moving teams, speed matters. An EOR helps you meet business needs in real time, not six months later.

3. Access to Global Markets

Whether your ideal candidate is based in the UK, Canada, Brazil, or beyond, an EOR helps you tap into talent worldwide without needing to open a local office or become an expert in foreign labor laws. That means you can focus on finding the right person, not navigating red tape.

4. Built-In HR Compliance and Payroll Support

An EOR like Justworks manages payroll, tax deductions, local benefits, and individual labor law compliance for you. This lets you stay focused on running your business instead of getting bogged down in administrative details. From data privacy regulations to leave policies, EORs handle the local complexities.

Why Small Businesses Choose Justworks EOR

Justworks is built for small businesses that want to grow without taking on unnecessary risk. 

With our EOR solution, you get:

  • Support in 25+ countries and growing: Justworks is constantly expanding our footprint to help small businesses access top talent in key international markets.

  • Transparent pricing and no setup fees: You’ll know exactly what you’re paying, with no surprise costs. Justworks charges a flat monthly rate per employee.

  • Fast onboarding and local payroll management: We help your new hires get started quickly and ensure their payroll is accurate and timely, every time.

  • Access to localized benefits for your international hires: From health insurance to pension plans, we help you offer competitive benefits that align with local expectations.

  • Expert support to help you stay compliant across borders: Our team provides guidance on local labor laws, payroll taxes, and documentation, so you can confidently manage a distributed workforce.

Whether you are trying to retain a key employee who had a H-1B visa that expired, those who moved abroad, or looking to expand your team with specialized skills not available locally, Justworks can help you make it happen, without the wait and headache.

Leave the Visa Woes Behind

The H-1B visa process can feel daunting. Between visa caps, shifting regulations, and the unpredictability of the lottery, small businesses need a hiring strategy they can actually rely on. An EOR provides an alternative that puts control back in your hands.

Justworks EOR offers an efficient, scalable, and compliant way to build the global team you need. Whether you’re hiring your first overseas employee or scaling an entire distributed team, Justworks makes it easy to grow with confidence.

Ready to explore global hiring without the red tape? Get started today.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.

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Written By
Blog Author - Janelle Watson
Janelle Watson
Sep 23, 2025 • 3 minutes

Janelle Watson provides content marketing for the international team at Justworks. With a background in higher education and journalism, Janelle helps tell stories that make international expansion and EOR accessible.

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