Laid Off on H1B? Secure Your Future with These Viable Options
Layoffs are becoming increasingly common in the US. According to the layoffs.fyi tracking site, in 2023, 260,000 people were laid off by companies.
As we entered 2024, we held hopes for economic improvement and a decrease in layoffs. However, as of April 2024, 74,000 people have been laid off from 255 companies. The reasons behind layoffs may be restructuring business operations and economic instabilities. Regardless, are these numbers truly alarming?
Consider a foreign worker with a non-immigrant visa who has recently been laid off. Apart from financial strains, they often require employment to maintain their non-immigrant visa status in the US.
The objective of this blog is to delve into potential US visa options following layoffs on H1B visas, as most tech professionals are in H1B status. Let’s dive in.
Impact of Layoffs on H1B Visa Holders
If you are on an H1B visa and are laid off, you have only a 60-day grace period to find a new job. The 60-day grace period doesn’t begin on the day you are terminated; rather, it begins from the final paycheck day.
So, if you are currently falls under the “unproductive employee status” after receiving the layoff notice, you will still receive paychecks for two more months. The 60-day grace period will then begin on the last day of your final paycheck.
However, if you can’t find a new job or change your visa status within those 60 days, you will have to leave the US, as you will be considered out of status.
Options Available After Layoffs on H1B Visa for Maintaining Legal Status in the US
Let’s look at possible options for H1B visa holders after layoffs,
1. Find an employer sponsor within 60 days
The best option would be to search for a job and secure a new employer sponsor within 60 days. Severance packages may extend this period further. This allows you to port your H1B status to the new employer without restarting the whole H1B process again
2. Change to a different US visa status
If you are struggling to find a new job in the US after layoffs, you can shift to another nonimmigrant visa status based on your needs. Here are some examples of US visas that you can obtain to stay in the US legally.
- H4 visa: If you are willing to continue your work in the US, you can opt for an H4 dependent visa if your spouse is on an H1B visa. The H4 visa doesn’t allow you to work in the US. However, with an H4 visa, you can get an Employment Authorization Document (EAD) when you meet certain requirements, which provides you with work authorization in the US.
- B1/B2 Visa: Another viable option is the B1/B2 visa, which allows you to stay in the US for a six-month period. The advantage of the B1/B2 visa is that it permits you to search and interview for job positions, providing additional time for your job hunt. However, approval of the B1/B2 visa is not guaranteed.
- F1 visa: Consider changing to an F-1 visa if you wish to pursue a full-time degree. It helps you learn new skills, and meanwhile, you can explore other work visa options in the US. However, choosing this option depends on your situation.
- O1 visa: The O1 visa may be a choice for individuals who possess extraordinary ability in their field, an H1B alternative too. The selection of the O1 visa is based on merit rather than a lottery process like the H1B visa. Additionally, the O1 visa doesn’t require labor certification.
Paths for H1B Holders in the Green Card Process After Layoffs
If you are laid off after your I-140 approval, you may apply for the Compelling Circumstances EAD work permit for up to one year.
The eligibility for compelling circumstances EAD is as follows:
- You should be the principal applicant for the green card and have an approved I-140 application.
- Your priority date should not be current on the date of applying for the EAD.
- Your non-immigrant visa status must be valid.
- You must demonstrate compelling circumstances for the EAD.
Contingency Plan for Layoffs of H1B Visa Holders
Currently, job cuts are occurring nationwide in the US, impacting both large companies and new startups. If you are an immigrant, the entire situation of job loss is particularly stressful. For example, when facing layoffs on H1B visas, you need to find a job within 60 days or leave the country.
If you were in the employer-sponsored green card process, a job loss means starting the green card process all over again, which takes a significant amount of time. Additionally, most companies are pausing PERM after layoffs. PERM is often the first step in the green card process.
However, the EB1A and EB2-NIW green cards come as saviors. They allow you to petition your green card application independently. Both of these green cards do not require a labor certification, skipping the lengthy PERM process.
Conclusion
Layoffs are inevitable in today’s situation, and layoffs on H1B visas are truly daunting. So, start preparing for self-petition green cards like EB1A and EB2-NIW earlier to overcome H1B visa challenges.
Moreover, if you are from India, choose EB1A over EB2-NIW, as EB2-NIW spans backlogs for several decades.
If you are looking for hands-on EB1A guidance beyond professional coaching, discover the Smart Green Card VIP.
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