An employer runs the risk of becoming an 'H-1B dependent employer' if he hires too many H-1B employees. Employers are considered to be H-1B dependent if they fall into any one of the following three categories:

• An employer has 25 or fewer full time employees of which more than seven are H-1B employees

• An employer has between 26 to 50 full time employees of which more than 12 are H-1B employees

• An employer has more than 50 full time employees of which 15% or more are H-1B employees

While filing a Labor Condition Application (LCA), an H-1B dependent employer must attest to the following three additional elements addressing non-displacement and recruitment of U.S. workers:

• The employer will not displace any similarly employed U.S. worker within 90 days before or after applying for H-1B status, or an extension of status for any H-1B worker;

• The employer will not place any H-1B worker employed pursuant to the LCA at the worksite of another employer unless the employer first makes a bona fide inquiry as to whether the other employer has displaced or intends to displace a similarly employed U.S. worker within 90 days before or after the placement of the H-1B worker; and

• The employer, before applying for H-1B status for any alien worker pursuant to an H-1B LCA, took good faith steps to recruit U.S. workers for the job for which the alien worker is sought, at wages at least equal to those offered to the H-1B worker. Also, the employer will offer the job to any U.S. worker who applies and is equally or better qualified than the H-1B worker.