What happens if you're laid off on H-1B visa — 60-day grace period, transfer options, changing status, and protecting your green card application.
Last updated: April 2026 · Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Consult a licensed immigration attorney.
If your H-1B employment is terminated (whether by layoff, firing, or resignation), you have a 60-day grace period to take action. During this period, you can: find a new H-1B employer to file a transfer petition, change to another visa status (B-1/B-2 tourist, F-1 student), or prepare to depart the U.S. The 60-day period starts from the date of termination, not from your last day of work if those dates differ. This grace period was formalized in a 2017 DHS rule.
The best option is finding a new employer to sponsor your H-1B. Since you've already been counted against the cap, the new employer can file a transfer petition at any time — no lottery needed. Under AC21 portability, you can start working for the new employer as soon as the petition is received by USCIS. To maximize your chances: start networking and interviewing immediately upon learning of the layoff, be upfront with potential employers about your timeline, and consider premium processing to expedite the transfer.
If you can't find a new H-1B sponsor within 60 days, consider changing to another status: B-1/B-2 (tourist) — gives you more time to job search but you cannot work. F-1 (student) — if you enroll in a degree program. H-4 (dependent) — if your spouse is on H-1B. O-1 — if you qualify for extraordinary ability. File the change of status before the 60-day grace period expires.
If you have a pending green card application, a layoff doesn't necessarily derail it. If your I-140 has been approved for 180+ days, your priority date is portable to a new employer. If your I-485 has been pending for 180+ days, you can change jobs under AC21 portability (the new job must be in the same or similar occupation). If your PERM is pending or I-140 approved less than 180 days, you'll likely need to restart the green card process with a new employer but may still port the priority date in some circumstances.
Your employer has obligations when terminating an H-1B worker: they must offer to pay reasonable transportation costs for you to return to your home country, withdraw the H-1B petition with USCIS, and notify USCIS of the termination. The employer remains liable for the H-1B worker's return transportation costs regardless of whether the termination was voluntary or involuntary.
You have a 60-day grace period from the date of employment termination. During this time, you must find a new sponsor, change status, or prepare to depart.
It depends on the state. Some states allow H-1B workers to collect unemployment benefits since employers pay into the unemployment insurance system. However, you cannot work without H-1B authorization, so you'd need to secure a new sponsor.
Yes. By law, the H-1B employer must offer to pay the reasonable cost of return transportation to your last place of foreign residence. This obligation exists regardless of who initiated the termination.