H-1B Third-Party Placement: Compliance Guide (2026)
H-1B workers placed at client sites face distinct compliance requirements. Post-ITServe, the standards are more workable — but documentation is still critical.
What Is Third-Party Placement?
Third-party placement (also called body-shop or consulting deployment) is when an H-1B petitioner employs a worker who performs work at a client company's site, under varying degrees of client supervision. The classic example: an IT staffing firm (Employer/Petitioner) sends an H-1B software engineer to work at a bank (End Client). The bank directs the day-to-day work; the staffing firm pays wages and maintains the H-1B petition.
Post-ITServe Compliance Standards
The 2020 ITServe Alliance court decision overturned USCIS's 2018 guidance that had effectively prohibited itinerary-based H-1B petitions for consulting firms. Post-ITServe, USCIS cannot: (1) demand non-speculative work documentation as a prerequisite for approval, (2) deny petitions solely because the exact future worksite is unknown at filing, (3) require specific end-client letters in all cases as a threshold requirement. However, USCIS can still issue RFEs requesting evidence of bona fide employment and specialty occupation.
Best Practice: End-Client Letters
While no longer strictly mandatory in all cases, end-client letters remain the strongest evidence for third-party placement petitions. A strong end-client letter includes: (1) client company name and address, (2) project name and description, (3) H-1B worker's specific role and duties at the client, (4) Duration of the engagement, (5) Minimum educational requirement for the role (to support specialty occupation), (6) Signature from an authorized company representative. Draft these letters with specificity — vague letters provide weak evidence.
LCA Worksite Compliance for Third-Party Sites
For each third-party worksite, the employer must: (1) file an LCA listing the actual client worksite location (not the employer's home office), (2) post the LCA at the worksite for 10 consecutive business days — for a client site, this means physically posting or providing electronic notice at the client location, (3) maintain wage obligations from the I-129 start date, regardless of whether the worker is billable to the client. If the client worksite changes, a new LCA for the new location is required.
Frequently Asked Questions
Is end-client letter required for H-1B third-party placement?
Post-ITServe, end-client letters are not automatically required in every case. USCIS can request them via RFE if the specialty occupation or employer-employee relationship is in question. In practice, including an end-client letter proactively is still best practice — it pre-empts RFEs and strengthens the petition. Not providing one creates avoidable RFE risk.
What should an end-client letter say for H-1B?
Key elements: (1) Company name and address of the end client, (2) Project/engagement name, (3) Role of the H-1B worker at the client (job title and key duties), (4) Duration of the engagement (start and end dates or 'ongoing'), (5) Minimum educational requirement for someone in this role (e.g., 'bachelor's degree in computer science required'), (6) Name and title of the client representative signing. Avoid generic letters — specificity matters.
Can an H-1B worker be placed at multiple client sites?
Yes, but each worksite must be covered by an appropriate LCA. If the worker will work at Client A in San Francisco and Client B in Seattle, separate LCAs for each MSA are required. The I-129 must include an itinerary listing both locations and expected time at each. The employer must post the LCA at each client worksite.
What is the staffing firm's obligation when a client engagement ends?
When a client engagement ends, the staffing firm must: (1) continue paying the required LCA wage (bench time prohibition), (2) find a new assignment or provide reasonable notice of termination, (3) if terminating the H-1B, notify USCIS of the withdrawal and pay reasonable return transportation costs to the worker's home country. Stopping payment without formal termination and USCIS notification is an LCA violation.