What Documentation Do Employers Need to Provide?

Employers should provide all relevant information to legal counsel so the partner firm can create the strongest possible I-129 petition. This includes proof that the role the company is hiring for is a specialty occupation, a written contract between the employer and potential employee, and documents attesting to the financial stability of the employer.

Can Talent Be Rehired Under the Same H-1B Visa?

Yes, talent can be rehired by another employer under the same H-1B visa. An employee’s H-1B visa status is tied to their employer through the I-129 petition to USCIS. However, this is transferable if a new employer submits a nonfrivolous petition filing within the grace period.

What Is the Risk if H-1B Visa Grace Periods Are Mismanaged?

Workers may fall out of status and have to leave the U.S. if the grace period is mismanaged. Alternatively, if a company hires someone to begin working before they submit a nonfrivolous I-129 petition, it may face compliance penalties.

What Are the Implications of Losing Your Job While on an H-1B Visa?

Termination or layoffs while on an H-1B visa mean that you have 60 days to either find a new company to sponsor your visa, change or adjust your status, or leave the U.S.

What Should You Do if You’re Fired While on an H-1B Visa Status?

International talent fired while on their H-1B visa should either prepare to leave the U.S. or look for an alternative solution to stay. For example, they could look for a new job at another company willing to sponsor them.

What Is the Grace Period for H-1B Visa Job Loss?

There’s a maximum of 60 calendar days within the grace period after H-1B visa job loss. The grace period may be shorter if an individual’s I-94 expires before the allotted 60 days.

What Is a Change of Status After an H-1B Layoff?

After employment is terminated, the H-1B visa holder may file an application with USCIS to move to a different visa status — known as a change of status. The employee must submit their change of status application before the grace period runs out. Speaking with an immigration attorney can help find the best pathway forward.

H-1B Visa Layoffs: What Talent Teams Need to Know

Layoffs are never easy, but for someone on an H-1B visa, they can be especially high-stakes.

When an H-1B worker leaves their job, whether voluntarily or involuntarily, their visa status is immediately affected. Since an H-1B visa is tied to a specific employer, a job loss triggers a limited window to take action. In most cases, the individual has a grace period of 60 calendar days to find another employer, change their immigration status, or leave the United States.

For startups looking to hire top talent, acting quickly during this grace period allows them to legally onboard leading global professionals. However, the transfer process carries compliance risks and delays that could mean businesses miss out on great candidates.

This guide breaks down how to support prospective candidates through the grace period and hire efficiently while maintaining full compliance with United States Citizenship and Immigration Services (USCIS) requirements.

What Is the H-1B Grace Period?

If an employee on an H-1B leaves their job, they’re generally eligible for a discretionary 60-day grace period. During this time, they most commonly use one of these H-1B layoff options to stay in the U.S. beyond that grace period:

Secure new employment: Visa holders need to apply for new positions, and if hired, the new employer files a new H-1B petition on behalf of the candidate.
File a change of status request: The individual applies to move to another non-immigrant category.

If the individual cannot move through one of these alternative processes, they must leave the U.S. by the end of the grace period.

Why Does the Grace Period Matter for Employers?

The grace period limits how long employers have to act. If your company wants to hire someone who was recently laid off on an H-1B visa, you must file an H-1B transfer and petition a new I-129 within that 60-day window.

Employers may allow the individual to begin working as soon as a nonfrivolous H-1B petition is filed. However, filing errors or timing issues can put the worker out of status, creating compliance risks and delaying onboarding.

Common pitfalls include:

Waiting too longThere’s no way to pause the 60-day grace period, meaning time is of the essence in collecting candidate documents and filing the I-129 petition.
Starting work too earlyYour new hire cannot begin working for your company until you’ve filed the I-129 petition, which includes a proposed start date. Starting work before the petition is filed and approved could count as unauthorized employment and jeopardize the employee.
Incorrect end dates: The grace period begins on the last day of employment—not the end of severance pay. Confusing these dates can cause an employer to file too late, making the worker fall out of status before the petition is submitted.

Supporting Employees Through the H-1B Grace Period

When a company lays off an H-1B employee, other companies in the U.S. have an opportunity to hire highly skilled talent. But the employee’s career continuity and peace of mind depend on timely action by the new employer.

Here’s how employers can to support candidates effectively:

Before you begin: Employer verification (if applicable)

If your company has never filed an H-1B petition, you must first complete employer registration and verification with the U.S. Department of Labor. This step is required before filing a Labor Condition Application (LCA) and should be started as early as possible.

1. Draw Up an Official Job Offer and Description

Create a written job offer that includes all relevant information, like the job title, duties, wage, and starting date. Work with an immigration attorney to speed up this process.

2. Gather All Relevant Documentation

Use the official USCIS checklist for H-1B Specialty Occupation Workers to see exactly what documents you need to supply. Ensure that all documents, both internal and the ones provided by the candidate, are up-to-date and accurate.

It’s important to note that the new employer must submit an approved Labor Condition Application (LCA) defining the scope of the job.

3. Prepare the I-129 H-1B Petition

Once all documents are in place, the employer should file the I-129 form on behalf of the individual they’re looking to hire. Employers may also consider alternatives to the H-1B visa.

Avoiding the $100,000 rehiring risk

If the H-1B transfer is not filed correctly or within the grace period, the individual may be required to leave the U.S. In some situations, rehiring that same worker later can trigger a $100,000 fee—creating avoidable cost, delays, and uncertainty for both the employer and the employee.

When handled properly, an H-1B transfer during the grace period helps protect career continuity for the individual while allowing employers to hire with care and full compliance.

Secure Top Talent With Ellis

Company layoffs are deeply difficult for affected employees and their families, and in some cases create a narrow, time-sensitive window for businesses to support highly skilled workers through new employment. Understanding how H-1B layoffs and grace periods work allows companies to move quickly and file a compliant H-1B petition to USCIS on behalf of the candidate.

Ellis gives employers the best possible chance of a successful petition. It offers case building and document management services so companies can easily navigate the time-sensitive process of hiring during the H-1B layoff grace period. Employers can also opt for premium processing to expedite USCIS review.

Partner with Ellis for a cost-effective solution that balances the urgency of tight timelines and compliance with USCIS regulations. Connect with Ellis today to get started.