Laid Off on H1B: What to Do and Your Options
By Sumit Patel · Last updated October 18, 2026
Laid off on H1B? You generally have up to 60 days, or until your I-94 ends if sooner, to have a new employer file for you, change to another status, or leave. Write down your last day of employment, check your I-94, and start the job search on day one.
What should I do in the first week after an H-1B layoff?
Secure your dates and documents first; they decide every deadline that follows.
- Get your last day of employment in writing. The grace period counts from when employment ends, not from the last paycheck you expect.
- Check your I-94 end date on the CBP I-94 website. The grace period cannot run past it.
- Keep your last pay stubs, I-797 approval notices and offer letter. A new employer's petition will need them.
- Ask about return transportation. An employer that dismisses you early must pay the reasonable cost of travel to your last country of residence (8 CFR 214.2(h)(4)(iii)(E)). It does not apply if you resign.
- Plan for your family. H-4 spouses and children depend on your status and follow the same timeline.
- Count your days with the H-1B grace period calculator.
How long can I stay after being laid off?
Up to 60 consecutive days, or until your I-94 expires if sooner, once per validity period, under 8 CFR 214.1(l)(2). USCIS can shorten it, and it does not let you work.
DHS proposed removing this grace period on September 11, 2026 (FR Doc. 2026-18631, comments due November 10, 2026). It is not final. Full rules and the latest status: H-1B 60-day grace period.
What are my options after an H-1B layoff?
Five paths keep you lawfully in the U.S. or let you leave cleanly. Most people use the first one.
| Option | Deadline | Good to know |
|---|---|---|
| New H-1B employer files for you | Before the grace period or I-94 ends | Cap-exempt if you were counted before; work can start on filing |
| Change of status (H-4, F-1, B-2) | Form I-539 filed in time | B-2 buys time to job hunt but does not allow work |
| Green card filing (I-485) | Only if your priority date is current | Needs an approved or concurrently filed I-140 |
| Compelling circumstances work permit | Form I-765 in time | Narrow: needs an approved I-140 and serious circumstances |
| Leave the U.S. | Before the period ends | A new employer can still file for you from abroad |
Of 328,758 workers in H-1B and similar categories who lost or changed jobs from FY2021 to FY2025, 5.77% had a new employer file during the grace period and 1.70% filed to change or extend status, DHS reported in its 2026 proposed rule.
How can a new employer hire me before the grace period ends?
The new employer must file a new H-1B petition before your grace period or I-94 ends. You do not go through the lottery again if you were already counted against the cap, and under H-1B portability you can start work once the petition is properly filed.
- Search employers that already file for your role: H-1B sponsors database and current H-1B jobs.
- Universities, affiliated nonprofits and research organizations are cap-exempt: cap-exempt employers list.
- Premium processing gets a decision within 15 business days if the employer pays for it.
- Step-by-step filing guide: how to change jobs on an H-1B. If a transfer is denied: H-1B transfer denied.
Does an H-1B layoff affect my green card?
It depends how far the case got. An I-140 approved for 180 days or more generally stays valid even if the employer withdraws it, and you keep its priority date for a petition from a new employer (8 CFR 205.1(a)(3)(iii)(C)).
If your I-485 has been pending 180 days or more, you may be able to move to a same or similar job and keep the case, under INA 204(j). A PERM application that was not yet approved generally ends with the job. Ask the attorney which applies to you.
Will employers that had layoffs face more scrutiny?
Possibly. A September 2026 executive order directs DHS, the Department of Labor and the State Department to consider whether a sponsoring employer has had, or plans, layoffs when reviewing H-1B filings. Implementing guidance had not been issued as of October 2026. If a prospective employer recently cut staff, ask its attorney whether to expect closer review.
What if I need to travel or leave?
Leaving ends the grace period. You can return later on a new petition with a valid visa stamp. Staying past your grace period without a filing starts unlawful presence, which can bar you from returning for 3 or 10 years. Travel and re-entry details: H-1B re-entry after a layoff.
Frequently asked questions
How long can I stay in the U.S. after an H-1B layoff?
Up to 60 days, or until your I-94 expires if sooner, under the current grace period rule. DHS proposed removing that grace period in September 2026; it is not final, so the 60 days still apply today.
Can a new employer hire me after a layoff without the lottery?
Usually yes. If you were already counted against the H-1B cap, a new employer files a cap-exempt petition. It must be filed before your grace period or I-94 ends, and you can start work once it is filed.
Does my employer have to pay my way home?
If the employer dismisses you before the end of your H-1B period, it must pay the reasonable cost of return transportation to your last country of residence. This does not apply if you resign.
Do I lose my green card priority date if I am laid off?
Not if your I-140 was approved. An I-140 approved for 180 days or more generally stays valid even if the employer withdraws it, and you keep its priority date for a future petition.
What happens to my H-4 spouse after my layoff?
H-4 status depends on yours, so your spouse and children are covered by the same grace period and need the same plan: a new H-1B petition, another status, or departure.
Sources
- 8 CFR 214.1(l)(2): grace period.
- 8 CFR 214.2(h)(4)(iii)(E): return transportation on dismissal.
- 8 CFR 205.1(a)(3)(iii)(C): approved I-140 retention.
- INA 204(j), 8 U.S.C. 1154(j): green card job portability.
- DHS proposed rule, FR Doc. 2026-18631: grace period proposal and FY2021-FY2025 figures.
- Executive order, September 2026: layoffs considered in H-1B reviews.
Sumit Patel
SMIEEE · FBCS · FIETE | 16+ years data engineering | 30+ peer-reviewed papers
Sumit built H1BVisaJobs.com on DOL LCA disclosure data. The rules on this page are quoted from the regulations and USCIS guidance listed under Sources. This is general information, not legal or tax advice: for your own case, consult a licensed immigration attorney or tax professional.