Many companies are laying off due to strategy changes, cost cutting measures, mergers or business downturns due to situations like COVID-19. In such cases, employees lose their jobs and some of them could also be H1B holders. In these casesH1B employees need to consider their optionsand how it works
In the past, there was no concept of a grace period for those H1B holders who lose their jobs. They would lose their status if terminated or fired... But in January 2017, USCIS introduced a new rulebook with grace period provisions to help certain employment-based nonimmigrants, such as H1B holders, with layoffs.
In this article, we will review the details and FAQs of the official rules about it, including the COVID-19 situation.
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1. What is the DHS 60-day grace period rule? H1B, other visas?
2. How long is the H1B visa grace period if I-94 expires 60 days ago?
3. What does a 60-day grace period mean for job-loss H1B holders?
4. Is the 60-day grace period automatic? USCIS discretion?
5. Why would USCIS shorten the grace period from 60?
6. How do I request a 60-day grace period for H1B, L1, and E3 visa holders?
7. How often can you use the 60-day grace period?
8. Do I get a 60 day grace period in lieu of notice if I quit or resign from the job?
9. Can we just cancel and automatically get a 60 day grace period?
10. What happens if I exceed the 60 day grace period with H1B Transfer?
11. Can H1B members work from H4 EAD during the 60 day grace period?
12. Any Additional USCIS H1B Grace Period with COVID-19?
13. Other Frequently Asked Questions
What is the DHS 60-day grace period rule? H1B, other visas?
According to the regulation of the Dept. of Homeland Security (DHS), certain nonimmigrant visa holders such as H1B visas, L1 visas, and others may be granted a grace period of up to 60 days if they lose their job due to layoffs or other unforeseen reasons before the end of their respective USCIS visa Petition.
These nonimmigrant visa holders like H1B visa, L1 visa and others can use the 60-day grace period to find another job or change their visa status to another status.
The 60-day grace period applies to nonimmigrant workers in the United States who work on the visa categories listed below and maintain their status
- H1B-Visual, H1B1-Visual
- E1-, E2- und E3-Visa
- L1 full
- O1 view
- TN view.
The rationale for granting the grace period is for job portability to allow employees to find relevant work and continue their employment as their employment period ended before the end of the period stated in their actual permit notice.
Below is the official rules text screenshot for the same.
What is the grace period for the H1B visa if I-94 expires 60 days ago?
The regulation under 8 CFR 214.1(l)(2) clarifies the situationI-94 expiryDate prior to H1B application approval notice. It says "The visa holder is granted a 60-day grace period or until the end of the authorized validity period of their status (basically I-94 end date), whichever is shorter.”
So if your I-94 or petition end date is less than 60 days after you lost your job or were fired, your grace period will be shortened until your I-94 date expires. Below is the screenshot of the official rules text. See the text highlighted below in green and purple.
What does a 60-day grace period mean for job-loss H1B holders?
The grace period, which is a maximum of 60 days for H1B, L1 and other visa holders, means they are in “valid state" (readUS-Status vs. Visum) and not considered "out of statusfor the entire period of 60 days. It is important to have status forH1B transmissionand remain in the United States with no violations.
In general, you must be in “valid status” in the United States in order to apply for a renewal or change of status (COS) with USCISapproved with I-94continue to stay in the United States. The 60-day grace period (or two months) gives H1B, L1 and other visa holders a chance to show uplegal statusFind another employer to submit an H1B application as a transfer or change of status (COS) to another visa if needed.
Lost your job on an H1B visa and now on a 60 day grace period? Test60DaysGracePeriod.com- A community-curated H1B job site for such H1B holders.
Is the 60-day grace period automatic? USCIS discretion?
Under the regulation, the 60-day grace period for H1B or L1 holders is not automatic, but is at their discretion. This means that DHS/USCIS has the absolute right to omit or reduce the grace period on a case-by-case basis.
As per the official H1B grace period rule it says"DHS, in its sole discretion, may remove or shorten this 60-day grace period.". So you can't take it for granted. See the text highlighted in red in the screenshot above.
Why Would USCIS Reduce the 60 Day Grace Period?
USCIS does not state why they would eliminate or shorten the grace period for H1B holders. However, some of the most common reasons USCIS might use to reduce or end the grace period are situations involving unauthorized employment, fraud, or criminal charges related to the H1B holder. As long as you don't engage in any of these types of activities, you should get the full 60-day grace period.
How do I request a 60-day grace period for H1B, L1, and E3 visa holders?
No special form is required to apply for a grace period. It's pretty much a standard process when applying for a transfer, in addition to the standard documents you would submit documents related to job loss, dismissal or termination. Basically, you would submit a cover letter explaining your job loss situation, along with supporting documents, when filing an H1B transfer or status change application with USCIS. That way, even if you don't have payslips, they would consider your status valid.
How often can you use the 60-day grace period?
H1B, L1, E3 and other visa holders can only use the 60-day grace period ONCE for the validity period of the H1B application. This means that, say you work for Employer A, you get 60 days grace period for H1B validity with Employer A. Now the catch is, if you quit or were fired from Employer A and plan to rejoin Employer A, say after 30 days during your grace period, then you will not get another 60 days of grace period with Employer A because the same H1B petition is used .
In contrast, if you move to Employer B, you will get another 60-day grace period because you have a new H1B application with a new validity period. You can also watch the short video below.
You can watch themYouTube video explaining the 60 day grace period
Do I get a 60-day grace period in lieu of notice if I quit or resign from the job?
The ordinance does not distinguish between dismissal, job loss, termination, resignation or termination of employment. Technically, all H1B, L1, and other visa holders who either opt out or cancel should be given a 60-day grace period instead of a layoff. However, USCIS has the discretion to decide or shorten the grace period based on your case and circumstances, as this cannot automatically be taken for granted.
Can we just cancel and automatically get a 60 day grace period?
Although the regulation does not differentiate between job loss and termination or termination of employment, it is important to note that the 60-day grace period is at the discretion of USCIS/DHS and is not automatic. The original intention of the rule was to help highly qualified non-immigrants in difficult situations.
If USCIS is not satisfied and may not grant you the 60-day grace period or shorten it, thereby placing your stay "out of status." It is therefore NOT recommended to take the H1B grace period rule for granted and quit the job and later apply for a transfer... discuss this with your attorney before making such decisions.
What happens if I exceed the 60 day grace period with H1B Transfer?
Well, technically, your status is considered valid until you reach the 60-day grace period or I-94 expiration. Once you have exceeded 60 days, your status is no longer valid and you are considered Out of Status.
Suppose you request an H1B transfer and receive the USCIS receipt on the 60th day. You can still start work from the 60th day and it's fine but if you don't have the receipt on the 60th daythToday you are entering a sensitive area and you should speak to your lawyer and decide. Ideally, it is safest to exit and re-enter the United States. It is always recommended to opt for premium processing in such situations if available.
Can H1B dependents work on H4 EAD during the 60 day grace period?
In general, you must be in a valid status to continue working. During the 60-day grace period, the H1B holder is technically in status, so the H4 visa holder is also in status. So, logically, an H4 holder with a valid EAD may be able to work during the grace period. However, the tricky part is that the USCIS regulation clearly states that H1B holders cannot work during the grace period, but provides no guidance for H4 holders working on EAD. So it's a gray area and you need to discuss this with a lawyer to be sure.
Why is it risky not to work during the grace period:As USCIS mentioned, the 60 day grace period is voluntary and not automatic, you have to be very careful. Assuming USCIS does not grant you or shorten your 60 day grace period, then the H1B holder would not have been in status, so the H4 visa holder would not have been in status either...so you would have been performing unauthorized employment on H4 EAD , since there wasn't a grace period for you either... so it can be tricky, so the suggestion is to either stop work on the day your H1B spouse loses the job to avoid problems, as that's subjective , or discuss your case with your immigration attorney and act accordingly. Better safe than sorry!
Any additional USCIS H1B Grace Period with COVID-19?
No, there are no special provisions or concessions from USCIS for H1B holders during the COVID-19 pandemic. Even if your company is laid off due to coronavirus, you still have the same 60-day grace period to find a new employer. Due to the pandemic, USCIS is not giving additional extra time.
If you do not find a job within the grace period, it is best to leave the country within 60 days or apply for a status change to another visa type. If you cannot actually travel out of the country due to COVID-19, you may consider applying for a B2 visitor visa.
Other frequently asked questions
When does the 60-day grace period begin if you lose your job?
It starts on the day the layoff ends or the job ends...or you quit. It's not tied to your payment cycle like the 1st or 15th of the month. Once you receive notice of cancellation, your grace period begins on that day. You must ensure that all supporting documents are submitted during the H1B transfer or status change.
Can I carry forward the unused 60-day grace period and use it in the future?
No, you cannot carry forward the unused 60-day grace period and use it another time. As mentioned above, you can only use it once per petition validity period and cannot reuse it in blocks as needed.
Can you work part-time during the 60-day grace period?
No, you may not work part-time or do any type of unauthorized work during the 60-day grace period.
When can I work with H1B Transfer during the grace period?
You can start working for the new employer as soon as you receive the USCIS Receipt Number. E.g. If you lose your job and have applied for an H1B transfer from a new employer and received a receipt after 20 days during the grace period, you can start work immediately after receiving the receipt number from USCIS. You don't have to wait for the 60-day grace period to expire.
Do I get a 60 day grace period if my H1B or L1 is denied?
No, you will not get a 60-day grace period if your H1B or L1 applications are denied by USCIS. The grace period applies only to cases where employment ends prior to the expiration of the H1B or L1 application period.
Can I travel outside of the US and re-enter during the 60-day grace period?
You can travel outside the US during the grace period, but you will not be able to re-enter as you will need a valid visa to re-enter. If you do not have a valid visa for another status, you will not be able to re-enter. The grace period can be used to settle your affairs in the US and move out or find another employer and extend your status via wire transfer.
How will the H1B/L1 grace period affect my visa stamp? Reuse the same?
Your visa stamp in your passport will not affect the H1B/L1 grace period or your termination of employment. You can use your H1B or L1 visa stamp to re-enter the United States by presenting the new USCIS H1B/L1 Approved Application Approval Notice (I797 Approval Notice). You don't need to stamp again.
What do you think of the 60-day H1B, L1 grace period? your experiences
references:USCIS Non-Immigrant Visa Changes Regulation – 2017,USCIS H1B 60 Day End Date Regulation 2017
FAQs
What happens if you exceed 60 days grace period with H-1B transfer? ›
What if I exceed 60 days grace period with H1B Transfer? Well, technically you are considered to be in valid status until you hit the 60 days grace period mark or expiration of I-94. Once you go past 60 days, your status is no longer valid and you are considered as 'Out of Status'.
How many times can you use the 60 days grace period? ›And so, the 60-day employment-based grace period can occur at any time during the nonimmigrant's authorized validity period, but only once during that period.
How long is H-1B valid after quitting job? ›The H-1B regulations allow for a discretionary grace period of up to 60 consecutive days following the end of H-1B employment, or until the end of authorized validity period on the H-1B approval notice, whichever is shorter. This 60-day grace period may only apply one time per authorized nonimmigrant validity period.
Does H-1B 60-day grace period reset? ›To answer your first question, there is a 60-day maximum grace period for an H-1B worker once the employment ends. Therefore, if your job ends Friday, you will have a maximum of 60 days to arrange for another employer to submit an H-1B petition for you, change to another status, or depart the United States.
Can I work during 60-day grace period? ›In the 60-day grace period, USCIS allows the H1B worker to maintain the status even if he has lost his job and running no payroll. This means that H4 status also remains valid for those 60 days. Hence, H4-EAD remains valid and the H4-EAD spouse can keep working for those 60 days as per my understanding.
How do you calculate 60 days grace period? ›Following the I-140 Final Rule, most recent websites reference the 60 days grace period. Under the I-140 Final Rule, there are three grace periods. 10 days before the validity period begins, 10 days after the validity period ends, and 60 days after cessation of employment within the validity of the most recent I-94.
Under what circumstances the days of grace are not allowed? ›Days of grace are not allowed when the bill is payable on or at sight.
What happens if I lose job on H-1B? ›Immigration Consequences of Losing H-1B Employment
Once you cease to be employed, you have a maximum 60-day grace period in which to either get another employer to sponsor you for H-1B employment, arrange for another visa status allowing you to stay in the U.S., or make plans to head home.
Grace periods for different types of debt
During that time, you can send in a payment without being considered delinquent. After that, you'll be subject to a late fee — usually from 2% to 5% of the monthly payment amount. If you miss a second mortgage payment, then your loan could be considered in default.
Unfortunately, you will have to leave the U.S. if you are unable to find a new employer after the 60 days given to you. Even if you find a new job and the employer is going to file a petition on the 61st day of the grace period, you will still need to leave.
Can I leave my employer after getting H-1B? ›
Yes, H1B visa holders can change jobs and retain their H1B status. However, to do so you must reapply for the H1B visa.
Will I lose my H-1B status if I re enter the US using my advance parole AP travel document while my adjustment of status application is pending? ›If you re-enter the U.S. on AP, you will technically no longer be in H-1B status. Your dependents will also be unable to be admitted in H-4 nonimmigrant status. Many adjustment of status applicants without a visa status report difficulty procuring certain benefits, such as getting a driver's license.
What happens after 60 day grace period F-1? ›F-1 visa holders have 60 days after their program end date to leave the United States. For F-1 students who participate in post-completion optional practical training, they have 60 days after their employment ends to depart. M-1 visa holders have 30 days after their program end date to leave the United States.
What happens if you lose your job on a work visa? ›If you lose your job while on an H-1B visa, you are considered immediately “out of status” in the United States. This is because the H-1B visa category requires the visa holder to be actively employed in order to maintain lawful status.
What happens when grace period ends end? ›A grace period is the period between the end of a billing cycle and the date your payment is due. During this time, you may not be charged interest as long as you pay your balance in full by the due date.
Can I stay in US after grace period? ›The final date you can stay in the U.S. is the “admit until” date on your Form I-94 Arrival/Departure Record. By law, you cannot enter and leave the U.S. during your grace period. Once you leave the U.S., your grace period terminates.
How many days are allowed as days of grace for payment? ›Grace periods vary by card issuer, but must be a minimum of 21 days from the end of a billing cycle. For example, if your billing cycle ends on the first of each month and your bill is due on the 22nd of the month, your grace period is 21 days.
Does grace period count as late? ›A grace period is also typically included in mortgage and insurance contracts. During this period no late fees will be charged, and the delay will not result in default or cancellation of the loan or contract. In practice, the exact time will be noted in the contract if the loan or agreement has a grace period.
Why is grace period important? ›Grace period offers convenience in the form of leeway in paying bills. You can pay bills when the due date has passed. This is certainly very beneficial for debtors to avoid bad credit. Later, every transaction that occurs during the grace period is calculated as the next month's bill.
How do I notify USCIS of H-1B termination? ›You can do this by simply sending a letter to USCIS who will revoke the petition on the date you request. Secondly, you must withdraw the Labor Condition Application (LCA) with the U.S. Department of Labor (DOL).
Does the grace period reset? ›
You can't technically extend your grace period. However, if you do not use your entire grace period time and go back to school, the next time you drop below half-time enrollment, your grace period resets on those federal loans and you will have a full six-months (or nine-months if you have a Federal Perkins Loan).
Can I travel during grace period? ›Your grace period is time for you to make plans to leave the U.S. or take action on your immigration record. You can travel within the U.S. during this time, but if you depart the U.S. you will need to apply for another visa status, such as a visitor visa.
Is there a 90 day grace period? ›The ACA provision extends, to 90 days, the grace period patients have to become current on any past payments before their insurance coverage is terminated. Current laws on late and premium payments vary by state, but the ACA replaces all existing state laws with the 90-day rule.
Do I have to put in my 2 weeks or can I just quit? ›It's common for American workers to provide their employers with two weeks' notice before quitting a job, so many people believe that doing so is legally required. It's not. No state or federal law requires you to notify your boss two weeks before leaving your job.
What are the rules to quitting? ›- Speak to Your Boss First. ...
- Be Prepared for a Counteroffer. ...
- Give Sufficient Notice. ...
- Abide by Professional Codes of Conduct. ...
- Continue to Meet Your Performance Expectations. ...
- Never Trash-Talk Your Employer or Your Boss. ...
- Be Wary of Exit Interviews.
California law permits most employees to quit their jobs at any time, regardless of the reason for quitting. Only a small number of employees are not permitted to leave their employment at any time without consequences, and that's because they have a contract stating the specific duration of their employment.
Can I transfer H-1B to another company without my current employer knowing? ›A: You don't have to tell your current employer, and there is no way for them to know about this transfer from any government agency, such as USCIS, DOL, etc.
Can you go back to your old employer if H-1B is not withdrawn without filing H-1B transfer? ›If your previous Employer has not withdrawn your prior H-1B and this remains valid, then you are permitted to go back to your original Employer and work as per the original terms and conditions of the H-1B filing. However, if your previous Employer has withdrawn your old H-1B you cannot go back and work for them.
What is an employer's responsibility when an employee with an H-1B visa is terminated? ›If a department terminates employment prior to the expiration date of the H-1B, they must offer to pay the reasonable costs of return transportation for the employee to their last place of foreign residence or to their home country.
Can I switch from EAD to H-1B? ›If you already have EAD, you do not need to apply for H-1B. However, because H-1B is an immigrant visa, meaning you can transition to lawful permanent residency, it could be worth getting an H-1B visa. Again, this decision depends on your current residency status and the visa on which you entered the U.S.
Can I go back to H-1B after using EAD? ›
Answer: No. Once an EAD card is used for any employment, you may be deemed to have terminated your nonimmigrant status, and, therefore, you would no longer have H-1B status. If you use your EAD card for employment, you will need AP to travel.
Is EAD better than H-1B? ›H-4 EAD Employment Advantages: Lower cost of securing H-4 EAD – in most cases, the cost of securing H-4 EAD is significantly lower than the cost of securing an H-1B petition. In most cases, the applicable attorney and the total amount of filing fees are significantly lower for H-4 EAD cases than for H-1B cases.
What happens if H-1B transfer fails? ›If your H1B transfer is denied, you will have a grace period to find alternative employment or transfer to another visa status. Once your transfer is denied, you can remain in the U.S. until the departure date listed on your I-94 arrival/departure card.
What happens if you miss your grace period? ›If you lose your grace period by not paying your balance in full by the due date, you will be charged interest on the unpaid portion of the balance. You will also be charged interest on purchases in the new billing cycle starting on the date each purchase is made.
What happens after grace period ends? ›What happens after the grace period? If you continue to carry a balance after the grace period ends, you will be charged interest at the regular purchase APR (unless your card offers an intro 0% APR period).
Does 240 day rule apply to H-1B Transfer? ›240-day Rule & H-1B Portability: Transfers and Amendments
The petition does not need to be approved by USCIS first. In the case of extension requests, the employment authorization is limited to 240 days. The 240-day period commences on the day following the expiration of the previous USCIS approval.
Immigration Consequences of Losing H-1B Employment
Once you cease to be employed, you have a maximum 60-day grace period in which to either get another employer to sponsor you for H-1B employment, arrange for another visa status allowing you to stay in the U.S., or make plans to head home.
A: You don't have to tell your current employer, and there is no way for them to know about this transfer from any government agency, such as USCIS, DOL, etc.
Can USCIS deny H1B Transfer? ›Recently, there has been a steady decline in the rate of denials on H-1B visa transfer petitions. Reports based on data from USCIS show that the denial rate dropped 4% in FY 2021, a stark contrast to the 24% denial rate in 2018 and 21% in 2019.
Do grace periods hurt your credit? ›Do Payments Made Within the Grace Period Affect Your Credit? In most cases, payments made during the grace period will not affect your credit. Late payments—which can negatively impact your credit— can only be reported to credit bureaus once they are 30 or more days past due.
Does grace period affect credit score? ›
The grace period duration varies depending on the contract and debt instrument but is usually 15 days. Satisfying a financial obligation during the grace period will not negatively impact an individual's credit score.
What can you do during a grace period? ›- Borrowers can use a grace period to pay a late bill without negative impact.
- A mortgage loan usually offers a built-in grace period.
- If a loan or other agreement has a grace period, its length of time will be noted in the contract.
If you can't make your payment by the end of your grace period, it's officially considered late. In the short term, this means you'll pay a late fee. The amount of the fee depends on what type of loan you have.
Can grace period be extended? ›A grace period may be extended in certain situations: You're called to active military duty for more than 30 days before the end of your grace period. Your six-month grace period will start when you return from active duty. You reenroll in school at least half time before the end of your grace period.
Is there a 240-day rule for H4 extension? ›H4 dependents can stay in the USA while the H4 application is pending with USCIS even after 240 days of the i94 expiry.
Does 240-day rule apply to H4 extension? ›H4 can stay more than 240 days pending on extension approval.
What is USCIS 240-day rule? ›When an employer timely files a petition for an employee in H-1B, H-1B1, O-1, E-3 or TN status to extend their employment in the same status, the employee may continue to work for the sponsoring employer for an additional 240 days beyond their current status end date. This is commonly referred to as the 240-day rule.