Navigating Employment Termination: Essential Steps for H-1B Visa Holders

Facing job loss while on an H-1B visa presents unique legal and procedural challenges. Because your immigration status is tied to your employment, it’s critical to act quickly and strategically to maintain lawful presence in the U.S. and prepare your next steps effectively.

Immediate Actions Post-Termination

1. Understand the 60-Day Grace Period

• Eligibility: H-1B visa holders are typically granted up to 60 consecutive days or until the end of their current I-94 validity (whichever is shorter) after employment ends.
  
  
• Purpose: This period allows time to secure a new H-1B job, change visa status, or depart the U.S. without falling out of legal status.
  
  

2. Seek New Employment

• H-1B Transfer: Find a new job and ensure your new employer files a new H-1B petition within the grace period.
  
  
• H-1B Portability: You may start working for the new employer as soon as USCIS receives the petition (filing receipt), without needing to wait for full approval.
  
  

3. Explore Change of Status

• Alternative Visa Options: Apply to switch to another status, such as:
  
  
  • B-2 (Tourist) — for short-term stay.
    
    
  • F-1 (Student) — to begin or continue studies in the U.S.
    
    
• Dependent Status: If your spouse holds an H-1B or other valid visa, you can apply for H-4 or another dependent status if eligible.
  
  

4. Prepare for Departure

• Timely Exit: If you’re unable to switch employers or change status, plan to leave the U.S. before the grace period ends to avoid accruing unlawful presence, which may affect future visa eligibility.
  
  

Important Considerations

• Validity of I-94: The grace period only applies while your I-94 record is valid. If your I-94 expires before the end of the 60-day period, your lawful stay ends at the I-94 expiry date.
  
  
• Severance and Benefits: Severance pay is not mandatory but can provide financial support. Health insurance coverage may be extended via COBRA or other options.
  
  
• Employer Obligations: Upon termination, the employer must notify USCIS and offer to cover the reasonable cost of transportation back to the employee’s last country of residence (in cases of involuntary termination).
  
  
• Unemployment Benefits: Eligibility varies by state and is often limited for H-1B holders due to work authorization requirements. In most states, you must have valid employment authorization to qualify.
  
  

Seeking Professional Guidance

Navigating the complexities of immigration rules following job termination can be difficult. It is highly advisable to consult with a qualified immigration attorney to:

• Assess your visa options
  
  
• Avoid status violations
  
  
• Understand implications of your choices on future immigration benefits
  
  

People Also Ask (PAA)

1. What is the 60-day grace period for H-1B visa holders?
   It is a timeframe that allows H-1B workers to secure new employment, change visa status, or leave the U.S. lawfully after job termination.
2. Can I work during the H-1B grace period?
   No. You may only work after a new H-1B petition is filed by another employer and is received by USCIS.
3. What happens if I don’t find a new employer within the 60-day grace period?
   You must change to a valid nonimmigrant status or leave the U.S. before the grace period ends to avoid accruing unlawful presence.
4. Can I change my status to a tourist visa during the grace period?
   Yes. You may apply to change your status to B-2 (visitor) to lawfully remain in the U.S. temporarily.
5. Is the 60-day grace period automatic?
   Yes. It is automatically granted once per authorized H-1B petition period, provided you were in valid status prior to termination.
6. Can the 60-day grace period be extended?
   No. The grace period is fixed and cannot be extended beyond 60 days or the I-94 expiry date, whichever comes first.
7. What if my I-94 expires during the grace period?
   Your grace period ends on the I-94 expiration date, even if the 60 days are not completed.
8. Are employers required to pay for my return transportation after termination?
   Yes. In cases of involuntary termination, H-1B employers must offer to pay reasonable transportation costs to your last country of residence.
9. Am I eligible for unemployment benefits during the grace period?
   Eligibility depends on the state and your work authorization. In most cases, H-1B holders are not eligible unless they have valid employment authorization.
10. Can I start working for a new employer before H-1B transfer approval?
    Yes. Under H-1B portability provisions, you may begin working once the new employer files the H-1B petition and USCIS receives it.

Understanding your rights and responsibilities after job termination on an H-1B visa is vital. The 60-day grace period offers valuable time to regroup, but acting quickly, staying compliant, and seeking legal help are the keys to successfully navigating this transition.