Losing your job on an H1B visa is stressful. Your immigration status depends entirely on your employer. The moment that job ends, the clock starts. Understanding the H1B layoff grace period is the first thing you need to do. This guide covers exactly how it works in 2026, what your options are, and the steps you should take from day one.
This is not legal advice. Please speak with a licensed immigration attorney for your specific situation. Everything here is based on current USCIS regulations and 2026 policy changes.
What Is the H1B Layoff Grace Period?
Before 2017, H1B holders had no protection after losing a job. You went out of status the next day. That changed in January 2017. The Department of Homeland Security introduced a formal grace period under 8 CFR 214.1(l)(2).
This rule gives H1B holders up to 60 days after job loss to maintain their immigration status. Workers on L-1, O-1, E-1, E-2, E-3, H-1B1, and TN visas also qualify for this grace period.
The Most Important Rule to Know
You get up to 60 days, or until your I-94 expiration date — whichever comes first. If your I-94 expires in 28 days, your grace period is 28 days. Not 60. Check your I-94 right away at i94.cbp.dhs.gov.
When Does the H1B Grace Period Clock Start?
The clock starts the day after your last day of productive employment. USCIS defines this as your last day of paid work. If your last working day is April 10, your grace period starts April 11.
What About Severance Pay?
Severance pay adds some nuance here. Some employers pay severance as ongoing regular paychecks, not a lump sum. In that case, some immigration attorneys argue the grace period starts after the severance period ends. USCIS has historically treated paid nonproductive time as valid H1B time. But this is not guaranteed. It depends on how your severance is structured. Do not assume you have extra time. Talk to an attorney first.
Can You Work During the H1B Grace Period?
No. This is one of the biggest misconceptions. The grace period keeps you in valid status. It does not give you work authorization. You cannot work for any employer during this window.
When Can You Start Working Again?
A new employer must file an H1B transfer petition on your behalf. Once USCIS receives it and issues a receipt notice, you can start working. You do not need to wait for approval. The receipt notice is enough. This is called H1B portability.
This is why you need to start your job search on day one. Every day you wait is time lost for the new employer’s attorney to prepare the petition.
Your Four Options During the H1B Grace Period
You have four main paths. Each has its own requirements and tradeoffs.
Option 1: Find a New Employer and File an H1B Transfer
This is the most direct path. A new employer files a change of employer petition with USCIS. You do not need to go through the H1B lottery again. You were already counted against the cap. The petition can be filed at any time of year.
Focus your job search on companies with a history of sponsoring H1B workers. They already have immigration attorneys and know how to move fast. You can check sponsorship history on the USCIS H1B Employer Data Hub or on H1BTrack.com.
Option 2: Change Your Visa Status
If finding a new job in 60 days is not realistic, you can change your immigration status before the grace period ends. Filing on time keeps you in authorized stay while USCIS processes the application. Your options include:
- B-2 Visitor Visa: File Form I-539 before your grace period ends. You can request up to 6 months of additional stay. You cannot work on it, but you can continue job searching from inside the US.
- F-1 Student Visa: If you plan to go back to school, this is a valid option. You need an I-20 from a SEVIS-approved school and must file Form I-539.
- H-4 Dependent Visa: If your spouse holds a valid H1B, you can switch to H-4 status. If your spouse has an approved I-140, you may also qualify for an H-4 EAD, which allows you to work.
- O-1 Visa: This visa is for people with extraordinary ability in their field. The bar is high. But it is not tied to the H1B cap and gives you more employer independence.
Option 3: File for Adjustment of Status
This option works if you are already in the green card process. You need an approved I-140 petition and a current priority date. You can then file Form I-485 for adjustment of status. A pending I-485 keeps you in authorized stay and lets you apply for an EAD work permit.
Do not travel outside the US if you have a pending I-485. You need advance parole first. USCIS may treat the application as abandoned if you leave without it.
Option 4: Leave the United States
If none of the above options work in time, leave before the grace period ends. This avoids unlawful presence. Since you were already counted against the H1B cap, a future employer can file a cap-exempt petition for you. You can return after approval and after getting a new H1B visa stamp at a US consulate abroad.
The Big Change in 2026: NTAs During the Grace Period
This is the part most older guides do not cover. It is new and it is serious.
What Is an NTA?
An NTA is a Notice to Appear. It is the formal document that begins removal proceedings. Most people call this deportation proceedings. In the past, H1B workers rarely received NTAs during a job search. That has changed.
What Started Happening in 2025
In February 2025, USCIS issued a new policy memo. It expanded when the agency can issue NTAs. By mid-2025, immigration attorneys and organizations like NAFSA and AILA started documenting cases. H1B workers were receiving NTAs while still inside their 60-day grace period.
Here is how it happens. When your employer terminates you, they must notify USCIS and withdraw your H1B petition. Under the current enforcement posture, some USCIS offices treat that withdrawal as an immediate trigger to issue an NTA — sometimes within days. This happens even when the worker already filed a transfer petition.
Why This Is Legally Possible
The same regulation that created the grace period also gives DHS the power to shorten or eliminate it. The current administration is using that power more aggressively than any previous administration.
Who Is Most at Risk
Workers with older I-94 records or those who previously held different visa statuses before H1B face higher risk. Workers with recent H1B entries and clean immigration histories have been less affected. But no one is fully safe right now.
The bottom line: treat day one of your layoff like it is day sixty. File your transfer or change of status as fast as possible. Do not wait.
How the H1B Grace Period Affects Your H-4 Family
Your spouse and children on H-4 visas are tied directly to your H1B status. They get the same 60-day grace period. When your status ends, theirs ends too.
What About the H-4 EAD?
If your spouse has an H-4 EAD, they can keep working during your 60-day grace period. During that window, you are still in valid status. That keeps their H-4 active. That keeps their EAD authorization valid.
Once your grace period ends without a new filing, their H-4 and EAD end at the same time. It does not matter what date is printed on the physical EAD card. The authorization ends the moment your status lapses.
Options for H-4 Dependents
H-4 family members should explore their own options in parallel. They can file for F-1 student status, B-2 visitor status as a short-term bridge, or their own H1B if they are eligible and have a sponsoring employer.
How Many Times Can You Use the H1B Grace Period?
You get one grace period per authorized H1B petition validity period. If Employer A lays you off and you transfer to Employer B, and Employer B later lays you off, you get another grace period under Employer B’s petition period. The grace period resets with each new petition, not each calendar year.
What Can Get Your Grace Period Denied?
The grace period is not automatic. USCIS grants it during the review of a subsequent filing. Certain factors can cause it to be shortened or refused:
- Prior unlawful presence in the US
- Unauthorized employment at any point
- Fraud or misrepresentation in any prior immigration filing
- Criminal charges or convictions
The Late Filing Risk
There is also a timing risk even when everything goes well. If you file an H1B transfer on or close to day 60, USCIS may approve the transfer but deny the status extension. You would then need to leave the US, go through consular processing, get a new H1B stamp, and re-enter before starting the job. Filing early removes this risk entirely.
What Happens If You Do Nothing: Unlawful Presence
If the grace period ends and you have not filed anything or departed, you start accruing unlawful presence. The consequences are serious:
- 180 to 365 days of unlawful presence triggers a 3-year bar on re-entering the US
- More than 365 days triggers a 10-year bar
- Working without authorization adds additional violations on top
These bars activate the moment you leave the US after accumulating unlawful presence. Removal proceedings on your record can also affect future visa applications and green card petitions for years.
Action Plan: What to Do on Day One of Your H1B Layoff
- Check your I-94 right away. Go to i94.cbp.dhs.gov and download your latest record. This tells you your exact grace period end date.
- Gather your documents. Collect your termination letter, pay stubs, H1B approval notices, and passport. Your attorney will need all of these.
- Call an immigration attorney within 24 to 48 hours. Given the 2026 NTA environment, this is not optional. Get professional guidance fast.
- Start your job search on day one. Target companies with a history of H1B sponsorship. Use H1BTrack.com or the USCIS H1B Employer Data Hub to verify sponsorship history quickly.
- Talk to your H-4 family members. Their status is tied to yours. They may need to take their own steps within the same 60-day window.
- Do not travel outside the US. Wait until your status is fully resolved before any international travel.
- Ask about premium processing. For an added fee, USCIS processes the petition within 15 business days. In this environment, faster is always better.
Frequently Asked Questions About the H1B Layoff Grace Period
How long is the H1B grace period after a layoff?
The H1B layoff grace period is up to 60 days, or until your I-94 expires — whichever comes first. The clock starts the day after your last paid working day.
Can I stay in the US after my H1B is terminated?
Yes, for up to 60 days under the grace period rule. You must take action within that window. File an H1B transfer, change your status, or file for adjustment of status. If you do nothing and the grace period ends, you begin accruing unlawful presence.
Can I work during the H1B grace period?
No. Work authorization only resumes after a new employer files an H1B transfer petition and USCIS issues a receipt notice. The receipt notice is what allows you to start. You do not need to wait for full approval.
What happens to my H-4 spouse’s EAD if I get laid off?
Your spouse’s H-4 EAD stays valid during your 60-day grace period. Once your grace period ends without a new filing, their H-4 and EAD end immediately — regardless of what date the EAD card shows.
What is an NTA and why are H1B workers getting them in 2026?
An NTA is a Notice to Appear — the document that begins deportation proceedings. Since mid-2025, USCIS has issued NTAs to some H1B workers while they are still inside their grace period. A February 2025 USCIS policy memo expanded the agency’s discretion to do this. File your transfer or change of status as early as possible to reduce this risk.
Can I switch to a B-2 visa after losing my H1B job?
Yes. File Form I-539 before your grace period ends. You can request up to 6 months of additional stay. You cannot work on B-2 status. If you leave the US before the B-2 is approved, USCIS will deny it for abandonment — but that denial alone will not hurt future visa applications as long as you did not overstay.
Do I need to go through the H1B lottery again if I find a new job?
No. You are cap-exempt once you have been counted against the H1B cap. A new employer can file a transfer petition for you at any time of year without going through the lottery.
Final Thoughts
Getting laid off on H1B is hard. But it is manageable if you act fast and know the rules.
The H1B layoff grace period is still 60 days in 2026. What has changed is the enforcement environment. NTAs are being issued faster than before. The old assumption of a comfortable 60-day buffer no longer holds.
Check your I-94 today. Call an attorney within 48 hours. Start your job search immediately. Make sure your family understands what is happening with their status too.
At H1BTrack.com, we track H1B employer data, USCIS policy updates, and visa news in one place so you always have the information you need.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Immigration laws and USCIS policies change frequently. Please consult a licensed immigration attorney for advice specific to your situation.