Visa Holders and Job Loss: What You Need to Know

Losing your job while on a work visa creates urgent immigration concerns on top of normal layoff stress. This guide covers your options, timelines, and critical steps to maintain legal status after job loss.

Important: Immigration law is complex and constantly changing. This guide provides general information, but you should consult an immigration attorney for advice specific to your situation.

Immediate Concerns

Your Status After Termination

When you lose your job on a work visa:

• Your visa status is tied to employment
• Termination affects your authorized stay
• You may have a grace period (depends on visa type)
• Taking action quickly is critical

The 60-Day Grace Period (H-1B, L-1, O-1, etc.)

For certain employment-based visas:

Since 2017, USCIS regulations provide a 60-day grace period for:

• H-1B
• L-1A and L-1B
• O-1
• E-1 and E-2
• TN (USMCA/NAFTA)

During the grace period:

• You remain in legal status
• You cannot work (no employment authorization)
• You must find new employment, change status, or depart

Grace period limitations:

• Maximum 60 days OR until your I-94 expires, whichever is shorter
• Only once per authorized validity period
• Doesn't apply to all visa types

Example: If your H-1B is valid until October 2026 and you lose your job in March, you have 60 days from your last day of employment to find a new sponsor, change status, or leave.

Options After Job Loss

Option 1: Find a New Employer Sponsor

Best option if available:

Process:

• New employer files H-1B transfer (or applicable visa petition)
• Can file while you're still in grace period
• Premium processing available (15 days) for additional fee
• Can begin work when transfer is filed (for H-1B)

H-1B transfer specifics:

• No lottery required (cap-exempt transfer)
• Previous employer approval not needed
• Can start work upon filing if properly submitted

Timeline concern: 60 days is tight for finding and processing new sponsorship.

Option 2: Change to Another Status

B-1/B-2 (Tourist/Visitor):

• File Form I-539 before grace period ends
• Allows you to stay while seeking employment
• Cannot work on B status
• Pending I-539 extends authorized stay (usually)

F-1 (Student):

• Enroll in an eligible educational program
• File I-539 to change status
• Can work on campus or with OPT/CPT authorization

Spouse's status:

• If spouse has H-1B or other work visa, you may change to dependent status
• H-4, L-2, O-3, etc.
• Some dependent statuses allow work authorization

Option 3: Depart the United States

If you can't find sponsorship:

• Leave before grace period ends
• Maintain good immigration history
• Can return on new visa or apply from abroad
• Protects future visa applications

Option 4: Pending Green Card (I-485)

If you have an approved I-140 and pending I-485:

• You may have more flexibility
• Portability rules may apply (AC21)
• Consult immigration attorney immediately
• Special considerations for long-pending cases

Visa-Specific Considerations

H-1B Visa Holders

Grace period: 60 days

Key points:

• Transfer doesn't require lottery
• Can start work upon filing H-1B transfer
• Premium processing recommended (15 days)
• Previous employer should withdraw petition promptly

Severance and H-1B:

• Receiving severance doesn't extend your authorized employment
• Grace period starts from last day of actual work
• Severance doesn't equal employment

L-1 Visa Holders

Grace period: 60 days

Complications:

• L-1 is tied to specific multinational employer
• Cannot simply transfer to new employer
• Options: H-1B (lottery), change status, internal transfer within company

If laid off from L-1:

• Check if different position within same company is available
• H-1B transfer to new employer (if available without lottery)
• Consider returning to foreign office
• Change to dependent status if applicable

H-4 Visa Holders (H-1B Dependent)

If H-1B holder loses job:

• Your H-4 status is derivative
• Follows the H-1B holder's status
• Grace period applies to family

H-4 EAD considerations:

• Work authorization tied to H-1B holder's I-140 or extension
• May lose work authorization when H-1B status ends
• Consult attorney for your specific situation

O-1 Visa Holders

Grace period: 60 days

Options:

• Find new O-1 sponsor (agent or employer)
• Change to B-1/B-2
• Change to H-1B if eligible

E-1/E-2 Treaty Traders/Investors

Grace period: 60 days

Considerations:

• Status tied to specific employer or business
• New employer must qualify under treaty
• Self-sponsorship may be possible for E-2

TN Visa Holders (USMCA)

Grace period: 60 days

Advantages:

• Relatively quick processing for new TN
• No annual cap
• Can apply at border with new job offer

Critical Timeline Actions

Day 1-7: Immediate Actions

• [ ] Document your last day of employment
• [ ] Gather all immigration documents (I-797, I-94, passport, visa)
• [ ] Contact an immigration attorney
• [ ] Begin job search immediately
• [ ] Understand your specific grace period

Day 7-30: Active Job Search

• [ ] Network aggressively
• [ ] Target employers who sponsor visas
• [ ] Be upfront about visa timeline with recruiters
• [ ] Consider all options (transfer, status change, etc.)
• [ ] Prepare documents for quick filing

Day 30-60: Decision Time

• [ ] Evaluate realistic options
• [ ] File change of status if needed (before day 60)
• [ ] Prepare for departure if no options available
• [ ] Don't overstay—protect future visa eligibility

Unemployment Benefits and Work Visas

Can You Collect Unemployment?

Generally yes, but with complications:

• You paid into unemployment insurance through your employer
• You may be eligible for benefits
• However, you cannot work without authorization
• Must certify you're "able and available" for work

The dilemma:

• Filing for unemployment suggests you're seeking work
• But you can't legally work without new sponsorship
• Some states allow it; others create complications

Recommendation:

• Consult immigration attorney before filing
• Some attorneys advise against it
• Others say it's acceptable during grace period job search
• State-specific rules vary

Severance and Immigration

Important distinctions:

• Severance doesn't extend work authorization
• Your last day of work = start of grace period
• Even if receiving severance pay, you cannot continue working
• Severance negotiations don't change immigration timeline

Common Questions

Can I start a business on the grace period?

No. You cannot work, including self-employment, during the grace period. Starting a business doesn't solve your status problem.

What if my employer doesn't withdraw the petition?

Even if your employer doesn't formally withdraw the H-1B, your employment has ended. USCIS eventually learns of the termination. Don't rely on this—take action.

Can I do a "bridge" job while finding H-1B sponsorship?

Not if it requires work authorization. You cannot work on the grace period. Unpaid work or volunteering has complex implications—consult an attorney.

What about my family?

Dependents (H-4, L-2, etc.) follow the primary visa holder's status. Their grace period is the same as yours. They need to maintain status too.

Does the grace period restart if I find a job then lose it again?

Generally, you get one 60-day grace period per authorized validity period. Multiple job losses in one H-1B period don't give multiple grace periods.

Can I travel during the grace period?

Risky. Leaving the US may end your grace period. Re-entry could be denied without current valid employment. Consult an attorney before any travel.

Protecting Your Future

Maintain Good Immigration Record

Why it matters:

• Overstaying damages future visa applications
• Can trigger bars on re-entry
• Affects green card eligibility
• Better to leave legally and return later

Document Everything

Keep records of:

• Last day of employment
• Job search activities
• Attorney consultations
• Any filings made
• Dates of all actions taken

Consider Long-Term Strategy

Think beyond immediate crisis:

• Is the US the right long-term choice?
• What are alternative countries' options?
• What's your path to permanent residence?
• Should you prioritize employers with green card sponsorship?

Finding Visa-Sponsoring Employers

Companies Known to Sponsor

Resources:

• H1BGrader.com - H-1B sponsor history
• MyVisaJobs.com - Visa sponsor data
• Glassdoor - Company reviews mentioning sponsorship
• LinkedIn - Filter for "visa sponsor" in job posts

Industries More Likely to Sponsor

• Technology
• Healthcare
• Finance
• Academia
• Engineering
• Scientific research

Interview Approach

Be strategic:

• Research if company sponsors before applying
• Ask early in process about sponsorship
• Emphasize skills and value, not just visa need
• Have documents ready for quick filing

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Key Takeaways

1. 60-day grace period exists for H-1B, L-1, O-1, and similar visas
2. You cannot work during the grace period
3. Find new sponsor, change status, or depart before grace period ends
4. H-1B transfers don't require lottery — can start work upon filing
5. Consult an immigration attorney immediately — your situation is unique
6. Don't overstay — protect your immigration future
7. Act fast — 60 days goes quickly

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Related Resources:

• Tech Industry Layoffs →
• First 24 Hours After Layoff →
• Job Search Strategies →
• Severance Negotiation →

Disclaimer: This guide provides general information only and does not constitute legal advice. Immigration law is complex and changes frequently. Consult a qualified immigration attorney for advice specific to your situation.