Layoffs are stressful for anyone. For H-1B workers, the job and the right to stay in the US are tied together, so a layoff raises urgent questions. Federal rules give you a grace period of up to 60 days to find a way to stay, and there are several legal options.
This guide explains how it works. It’s general information, not legal advice. Talk to an immigration attorney as soon as you know your last day, because some options need to be filed within the grace period.
What the grace period is
Under a 2017 regulation, many nonimmigrant workers, including H-1B, L-1, O-1, TN and E-3 holders, can stay in the US for up to 60 consecutive days after their employment ends, or until their authorized stay (I-94) ends, whichever is shorter. During this period you’re considered to be maintaining status, even though you’re not working.
You can use this grace period once per authorized validity period, meaning once per I-94.
When does it start?
Generally, the day after your last day of employment. That’s usually the last day you’re on payroll, not the day you receive a layoff notice.
| Situation | Grace period usually starts |
|---|---|
| Notice given, you work until the last day | Day after last working day |
| Garden leave, still on payroll | Day after payroll ends |
| Lump-sum severance, employment ends immediately | Day after employment ends |
| Your I-94 expires in 30 days | You have 30 days, not 60 |
Watch out: Severance paid as a lump sum doesn’t necessarily extend your employment. Ask HR for your official termination date in writing.
Your four main options
1. Find a new H-1B employer
A new employer can file an H-1B transfer petition for you within the grace period. Because you’ve already been counted under the cap, you generally don’t need to enter the lottery again. Under portability rules, you may be able to start work once the new petition is filed, before approval, if you were maintaining status when it was filed.
Note: the $100,000 payment introduced in 2025 targets certain new petitions for workers outside the US. Change of employer petitions filed for workers who remain in the US in valid status have generally been treated as outside it, but confirm current guidance with the employer’s attorney.
2. Change to another status
You can file to change status to one that fits your plans, for example:
- H-4, if your spouse holds H-1B status
- F-1, if you enroll in a degree program
- B-2 visitor status, to buy time while you job hunt (you can’t work on B-2)
- O-1, if you qualify for extraordinary ability
The application must be filed before the grace period ends.
3. Apply for a compelling circumstances EAD
If you have an approved I-140 green card petition and face compelling circumstances, such as a serious illness or significant disruption to your employer, you may qualify for a one-year work permit. This is a narrower option, but useful for people with long green card backlogs.
4. Adjust status, if eligible
If your green card priority date is current, you may be able to file Form I-485 and get a work permit while it’s pending. If you have a pending I-485 for 180 days or more, you may be able to “port” your green card case to a new job in the same or similar occupation.
If none of these work
You’ll need to leave the US before the grace period ends. Leaving on time protects your record and makes it easier to return later on a new visa.
A 60-day action plan
| Days | Actions |
|---|---|
| Day 0 | Get your termination date, final pay date and benefits end date in writing |
| Days 1–3 | Consult an immigration attorney; update your resume and LinkedIn |
| Days 1–10 | Contact recruiters and employers that sponsor; tell your network you’re available |
| Days 10–30 | Interviews; prepare documents for a transfer (passport, I-94, approval notices, pay stubs) |
| Days 30–45 | If no offer, prepare a backup change of status filing |
| By day 50 | File a transfer or change of status, or book travel to leave |
Documents to keep
- Every H-1B approval notice (I-797)
- Your latest I-94 record
- Your last several pay stubs and your final pay stub
- Termination letter showing the last day of employment
- Passport and visa stamp
- Any I-140 approval notice
Health insurance and money
Your employer health plan usually ends at the end of your last month. You can often continue it through COBRA, but it can be expensive. Losing job-based coverage is a qualifying event for a special enrollment period on the ACA Marketplace, usually within 60 days.
Take stock of your savings. This is exactly the situation an emergency fund is for.
What happens to your family
H-4 spouses and children depend on your status. If you change status or leave, they must too. If your spouse holds an H-4 EAD, that work permit ends when their H-4 status does.
Common mistakes
- Waiting weeks before calling an attorney
- Assuming the grace period starts on the notice date
- Starting work for a new employer before a petition is filed
- Traveling abroad during the grace period without a plan to return in valid status
Layoffs are hard, but many people land a new role within the grace period. Acting in the first week makes the biggest difference.
A quick decision guide
Use this to think through your options in the first week. It’s a simplification, not legal advice.
| Your situation | Likely first step |
|---|---|
| You have interviews or an offer | Prepare transfer documents and ask the new employer to file quickly |
| Your spouse is on H-1B | Consider filing for H-4 as a backup |
| You want to study | Research programs that could issue an I-20 quickly |
| You have an approved I-140 and a long green card wait | Ask about a compelling circumstances EAD |
| You have a pending I-485 for 180+ days | Ask about porting to a new same or similar job |
| No offers and no backup | Plan a timely departure to protect your record |
How to talk to recruiters
Be clear and confident about your status:
“I’m on an H-1B and was affected by a layoff. I’m eligible for an H-1B transfer, which doesn’t require the lottery. I can start once a petition is filed.”
Many recruiters don’t know how transfers work, so a short, clear explanation helps.
Your final paycheck and benefits
- Check your state’s rules on when final pay must arrive
- Ask about unused PTO; some states require it to be paid out
- Save your final pay stub; your next employer’s attorney may ask for it
- Ask whether any bonus or equity vests before your termination date
Unemployment benefits
Eligibility for unemployment insurance depends on state rules and your work authorization. Because unemployment requires being able and available to work, many H-1B holders don’t qualify during the grace period. Ask your state’s workforce agency, and talk to an attorney before applying if you’re unsure how it could affect your case.
Leaving the US and coming back
If you leave, you can return later on a new H-1B petition from a new employer. Because you’ve already been counted under the cap, you may not need to go through the lottery again, as long as you’re within your six-year limit. Time spent outside the US may also be “recaptured,” adding time back to your six years.
Looking after yourself
A layoff affects more than your visa. Keep a routine, stay in touch with friends and colleagues, and use employee assistance programs if your former employer offers them for a period after termination. Many people find a new role faster when they share openly with their network rather than searching quietly.
