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The 25 most-asked H-1B layoff questions

Plain-English answers. Each cites the controlling 8 CFR / INA / USCIS Policy Manual section. If you don’t see your question here, email us and we’ll add it.

Grace period (60-day clock)

When does my 60-day grace period actually start?

The clock starts the day AFTER your last day physically worked. NOT the last paycheck. NOT the end of severance. NOT when the formal termination date is per the severance agreement. Severance pay does not extend H-1B status — only continued physical work or unpaid leave-of-absence does.

If you stopped working on April 15, your day-1 of grace is April 16, and day-60 is June 14. Get your last-day-worked confirmed in writing from HR within 48 hours so any future filing has the right effective date.

Sources8 CFR 214.1(l)(2)·USCIS — Options for Nonimmigrant Workers Following Termination

Can I travel internationally during the grace period?

No. Leaving the US during the grace period kills the grace period. To re-enter on H-1B you'd need a valid visa stamp (not just an approval notice) — consular wait times can be months in India, China, etc. If you depart, plan it as a 'depart with re-entry plan,' not a quick trip.

Can the grace period be extended past 60 days?

No. 8 CFR 214.1(l)(2) caps it at 60 calendar days OR I-94 expiration, whichever is sooner. There's no provision to extend it. What you CAN do: file an I-539 or I-129 inside the 60-day window — once USCIS RECEIVES the filing (not postmark), the underlying status question shifts to whether they approve, not whether you're in status.

Sources8 CFR 214.1(l)(2)

Transfer / new employer

How fast can a new employer file an H-1B transfer?

Once they have a signed offer letter and you've handed over your immigration documents, prep to filing usually takes 1-2 weeks at a competent immigration counsel. Premium processing (Form I-907, $2,965) buys a 15-business-day USCIS decision after filing.

Under INA §214(n) portability, you can BEGIN work the day USCIS receives the petition — the receipt notice (I-797C) authorizes the work start. So in practice: 2 weeks of prep + 1 day of receipt = ~15 days from offer to starting your new job.

SourcesINA §214(n)·Form I-907 (Premium Processing)

Does the $100K H-1B fee apply to my transfer?

NO. Per current USCIS guidance, the September 2025 $100,000 supplemental fee proclamation applies only to NEW H-1B petitions for workers OUTSIDE the United States. It does NOT apply to transfers, extensions, or change-of-status for workers already in the US. It does NOT apply to cap-exempt petitions either.

Many employers' HR teams don't know this and reject H-1B applicants assuming they'd owe $100K. Send them the USCIS H-1B FAQ link directly when you sense hesitation.

SourcesUSCIS H-1B FAQ (Sept 2025 fee proclamation)·USCIS H-1B FAQ

Can a cap-exempt employer hire me without the lottery?

Yes. Cap-exempt employers (universities, nonprofit research orgs, governmental research orgs, and affiliated nonprofits per 8 USC §1184(g)(5)) can file H-1B any day of the year, no lottery, no annual cap. Once you hold a cap-exempt H-1B, you carry the exemption forward — any FUTURE employer can hire you without the lottery.

See /cap-exempt-employers for our database of 75+ vetted sponsors. /cap-exempt-insurance has the upcoming subscription product for currently-employed H-1Bs who want to lock in cap-exempt status as insurance against a future layoff.

Sources8 USC §1184(g)(5)·8 CFR 214.2(h)(19)

I-539 (H-4, B-2, F-1)

Can I file I-539 to B-2 to buy time while I job-search?

USCIS has been DENYING B-2 changes filed for job-search purposes since March 2023. A denial inside the grace period can trigger an NTA (Notice to Appear in immigration court), which USCIS resumed issuing inside grace periods in February 2025.

Use B-2 ONLY if your reason is genuinely non-employment: tourism, family event, serious medical condition, immigration adjudication for a spouse. Do NOT write 'looking for a new H-1B sponsor' on the I-539 cover letter.

Sources8 CFR 248·USCIS Policy Manual

Should I file I-539 to H-4 if my spouse is on H-1B?

Often yes — it's the cleanest fallback when no transfer materializes. Filing fee $470 paper / $420 online, plus $85 biometrics per applicant. You can include all dependents (spouse, kids) on a single I-539 to save fees and align timelines.

Note: H-4 alone doesn't authorize work. You can ALSO file I-765 for H-4 EAD if your spouse has an approved I-140 ≥180 days old. USCIS ended automatic 540-day EAD extensions Oct 30, 2025 — file BEFORE your current EAD expires, never after.

Sources8 CFR 248·Form I-539 (Application to Extend/Change Nonimmigrant Status)

What's Day-1 CPT and should I do it?

Day-1 CPT is a master's program that authorizes Curricular Practical Training (work) from the first day of enrollment. Marketed aggressively to laid-off H-1B workers because it lets you start working on F-1 status immediately.

WARNINGS: ICE/SEVP have publicly flagged several Day-1 CPT schools. USCIS scrutinizes the underlying I-539 heavily. The CPT must be 'integral to the established curriculum' (8 CFR 214.2(f)(10)(i)) — at most schools, that means you can't legitimately start CPT until 1 academic year into the program. A future H-1B / green-card adjudication often questions whether the F-1 was bona fide.

Use only if (1) you have a genuine educational goal independent of work authorization, (2) the school is regionally (not just nationally) accredited, and (3) you're prepared to defend the choice years later.

Sources8 CFR 214.2(f)(10)(i)

Does USCIS have to RECEIVE my I-539 before day 60, or just postmark it?

USCIS counts the date they physically RECEIVE the filing — postmark date alone does not count. Use FedEx/UPS overnight with tracking, or file online (fastest). Never USPS during the final week of grace period. If filed online, you usually get an instant receipt notice (I-797C); if filed paper, expect 1-3 weeks for the receipt.

Dependents (H-4 spouse, kids)

What happens to my H-4 spouse's EAD when I'm laid off?

Your spouse's H-4 EAD is tethered to YOUR H-1B status. When your status ends (60-day grace ends without transfer), their work authorization ends with it.

IF you transfer to a new H-1B employer in time, the H-4 EAD continues uninterrupted (assuming the I-140 basis is still valid). IF you change to a different status (e.g., F-1 yourself), your spouse needs to file a fresh I-539 for H-4 (since you're no longer the H-1B principal). IF you depart, the H-4 status + EAD end immediately for everyone.

What about my H-4 kids' school enrollment?

US public schools must enroll any child living in the district regardless of immigration status. So your kids can stay enrolled regardless of what happens with your H-1B. The bigger issue is mid-year transfers if you depart — start gathering sealed transcripts (universities/schools mail directly to the new institution) early in the process if departure is on the table.

Will my kids age out of H-4 at 21?

Yes — and the 2025 DHS rule on Child Status Protection Act (CSPA) eliminated some prior protections, leaving ~200,000 documented dreamers (children of H-1B parents who arrived as kids) at risk. Options for kids approaching 21: convert to F-1 student status (requires acceptance to a SEVP-certified school), or in rare cases, qualify for an independent immigration pathway.

If you're departing the US, your kids' aging-out timeline becomes moot — they re-enter with you. If you're staying, this is one of the most stressful long-term planning issues for Indian-born / Chinese-born families with the longest backlogs.

Severance & money

What's the most-negotiable line item in my severance offer?

RSU acceleration. Severance offers RARELY accelerate unvested RSUs by default — you forfeit them at signing. Acceleration is the #1 negotiation lever, often worth $20K-$200K in tech roles. Ask in writing for 100% acceleration; even partial (50-75%) is meaningful.

Secondary levers: extending the ISO/NSO 90-day exercise window to 12 months (requires converting ISOs to NSOs), COBRA premium reimbursement for the severance period, severance-to-unpaid-leave conversion (preserves H-1B status), and an explicit confirmation of your 'last day worked' date in writing.

Should I take severance pay or unpaid leave?

Severance pay does NOT extend H-1B status. Unpaid leave-of-absence DOES. If your employer will agree, asking to convert a portion of severance into unpaid leave is materially valuable: each week of leave is a week your 60-day grace clock isn't running, AND you keep employer health insurance.

Not all employers agree, but the ones with HR experience handling H-1B often will because the cost to them is the same. Run the numbers on /severance-calculator.

What are the actual USCIS fees I'll need?

I-129 H-1B (employer pays, usually): ~$2,780 baseline ($780 base + $500 fraud + $1,500 ACWIA for 25+ FTE employers).

I-907 premium processing: $2,965 for I-129 H-1B (March 2026 rate, was $2,805).

I-539 (worker pays): $470 paper / $420 online + $85 biometrics per applicant. Premium processing for H-4: $2,075.

I-765 EAD: $470 online / $520 paper.

Live fee schedule with citations: see lib/fees.ts in the repo, or uscis.gov/forms/filing-fees for the canonical USCIS list.

Departing the US

Can I really make my employer pay for my return ticket?

Yes — INA §214(c)(5)(A) requires the H-1B employer to pay 'reasonable cost of return transportation' if termination is before the end of your authorized H-1B period. Most workers don't ask. HR is obligated to comply if you cite the statute. Email the request in writing and reference INA §214(c)(5)(A).

SourcesINA §214(c)(5)(A)

What's the worst financial mistake I can make if I depart?

Cashing out your 401(k) as a non-resident alien. Default 30% FDAP withholding + 10% early-withdrawal penalty (under 59½) destroys 30-40% of the balance — on $200K, that's $80K destroyed for nothing.

The correct move: roll your 401(k) to an IRA you control. Tax-deferred, you can manage it from abroad, and you keep the full balance. Submit Form W-8BEN to the receiving brokerage BEFORE you change your address (otherwise they may freeze the account).

The /severance-calculator does this math personalized to your numbers and country of birth.

Can I come back to the US later if I leave now?

Yes, with planning. Three common pathways back:

(1) L-1 transfer from a multinational employer — work for the foreign affiliate of a multinational for 1+ year, then re-enter on L-1.

(2) Future H-1B transfer — your priority date (from your prior I-140) is portable under AC21 §106(b). A future US employer files a new I-129 + I-140 reaffirmation; you keep your priority date.

(3) Self-petition (EB-1A or EB-2 NIW) if your record qualifies.

Before departing, gather sealed transcripts, employment verification letters, and copies of every I-797 — these are the documents you'll need to assemble any future re-entry petition.

SourcesAC21 §104(c)

General

Is USCIS really issuing NTAs inside the grace period?

Yes — since February 2025, USCIS has been issuing Notices to Appear (NTAs, the immigration-court trigger) on denied filings inside the grace period. This is a change from prior policy. The most common trigger: an I-539 to B-2 filed with stated job-search intent, denied. The denial generates an NTA.

This doesn't mean every denied filing triggers an NTA, and the policy is being challenged in court. But it changes the calculus: file ONLY when you have a strong case, and consult an attorney before filing anything borderline.

Do I need an attorney?

For straightforward cases (transfer to a competent employer with experienced immigration counsel; I-539 H-4 with spouse who clearly qualifies), self-filing with a reviewed application package is doable. For high-stakes / fact-specific cases (Compelling Circumstances EAD, EB-1A/NIW self-petition, anything inside the final 14 days of grace, NTA risk), an attorney pays for itself many times over.

AILA Lawyer Search (free) is the trusted directory: ailalawyer.com. Filter by state + specialty. Most attorneys offer a free 30-minute consult — schedule one even if you self-file.

SourcesAILA Lawyer Search

What's the single most important thing to do in the first 24 hours?

Confirm your last-day-worked date in writing with HR. Everything downstream — when your grace period ends, when filings are 'received in time,' whether unpaid-leave conversion is on the table — flows from this date.

After that: gather your immigration-document folder (I-797s, I-94, last 3 paystubs, prior LCAs, passport, degrees), and DON'T sign severance until you've run /severance-calculator. The financial decisions inside week 1 are worth $20K-$200K.

Got the personalized version?

All of these answers apply to a generic situation. Your situation is specific to your dates, country of birth, I-140 status, family, and remaining grace days. The grace calculator personalizes them.

This is an information-only tool, not legal advice. You are responsible for your decisions. When in doubt, consult an immigration attorney.