What to do When an H-1B Employee’s Work Authorization Ends?

The H-1B visa allows foreign skilled workers to live and work in the United States for up to six years. After that, the H-1B employee’s work authorization comes to an end, making them ineligible to work lawfully in the U.S. Once this happens, employers must follow a structured process to ensure compliance with USCIS guidelines to avoid serious legal consequences.  

This blog will outline all essential actions and legal obligations H-1B employers must know to handle the end of an employee’s work authorization period efficiently.

Why Does H-1B Work Authorization End?

The H-1B employee’s work authorization might end due to many reasons, but the most common reasons include:  

1. Expiration of the H-1B visa: The H-1B visa allows employees to stay in the U.S for a total of 6 years. After this, the work authorization status will expire, leading to serious consequences. To prevent this, the employer must request an extension before the expiration of the work authorization.

2. Termination of employment: If the H-1B employee is terminated or exits voluntarily, the work authorization will no longer be considered valid.

3. Non-compliance with regulations: To maintain compliance and lawful presence in the U.S., employees must adhere to regulations such as holding valid work authorization, avoiding work beyond the authorized stay, and refraining from any unauthorized employment. Any violation of these rules, including unethical practices, may result in the cancellation of H-1B work authorization.

4. Changes in employment: Any material alterations to the terms of the H-1B petition, such as job role /title changes, worksite location changes, salary reductions, change from full-time to part-time, and change in employer structure, can end the work authorization.  

5. Form I-94 record expiration: According to the U.S. immigration policy, the H-1B employee is authorized to work in the United States until the expiration of their I-94 record. Employers must reverify I-9 documents and file extensions early to avoid I-94 expiration.  
   
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H-1B Work Authorization Ends: What Should Employers Do?

When an H-1B employee’s work authorization ends, it might get a bit stressful as the situation can get tricky. However, with the help of a structured approach, employers can easily manage this scenario and ensure compliance with the USCIS guidelines:  

Some actionable steps employers must take include:  

1. Cease employment: Once an H-1B employee’s work authorization ends, allowing them to continue working is a violation of federal law. Employing someone without valid work authorization can lead to serious legal consequences, including penalties and potential audits.

2. Reverify work authorization (if applicable): If the expiration was due to a pending extension, change of status, or renewal, the employer may update Supplement B (formerly known as Section III) of Form I-9.  

3. Formally terminate the employee: The employer must follow the proper termination process and inform the employee in writing about their termination and the next steps they must take.  

4. Arrange return transportation: The employer must arrange the return transportation to the H-1B employee’s last foreign address. This is a mandatory requirement, irrespective of the nature of the termination.  

5. Notify USCIS and DOL: Employers must notify USCIS and DOL in writing to withdraw their H-1B petition. Employers must comply without delay, as noncompliance will result in serious legal consequences.
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Consequences of Ignoring H-1B Work Authorization Expiry

If employers don’t adhere to the USCIS guidelines, they may face serious consequences such as:  

• Civil penalties for unauthorized employment: Employers may face hefty fines if they continue to employ unauthorized workers or don’t follow the mandatory requirements outlined by USCIS.  According to this DHS final rule, for every violation, the employer may have to pay hefty penalties, such as:  

• First offense: $698-$5,579

• Second offense: $5,579-$13,946

• Subsequent offenses: $8,369-$27,894
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• Liability for back wages: According to the Department of Labor (DOL), if the employer fails to terminate the H-1B employee lawfully, then they may be held liable for back pay for the entire period the employee was employed.  

• Disqualification from H-1B and other visa programs: If an H-1B employer is repeatedly found guilty in these cases, it can lead to temporary or permanent disqualification from sponsoring foreign workers. This disbarment is not just for H-1B, but also for L-1, PERM, and other employment-based visas.  

• Increase in audits and unexpected site visits: USCIS may increase the number of unexpected site visits to ensure the employer is maintaining compliance with the immigration guidelines, which can disrupt the regular operations of an organization and create unnecessary stress.  

• Reputational damage: If an H-1B employer is found to be involved with unethical practices, then it can significantly affect the image of the employer and the organization.  

• Exposure to employee lawsuits: A former employee who suffered legal consequences due to the employer’s negligence may take legal action against the company. They could sue the employer for unlawful termination, wage and hour violations, or other issues they experienced.  

What is a 60-Day Grace Period for H-1B Visa Holders?

On January 17, 2017, the DHS issued a final rule designed to provide flexibility to workers on H-1B and other work visas. According to this rule, once the H-1B employee loses their job (voluntary resignation or employment termination), they will be allowed a grace period of up to 60 days, or until the end of their authorized stay as per their I-94 record (whichever comes first).  

During the grace period, the H-1B employee can:  

• Find a new job and transfer their H-1B status.

• File a change of status to another visa category (F-1, B-2, H-4).

• Leave the United States voluntarily.

• Make personal or professional arrangements without any hassle.

What is the 240-Day Rule for H-1B Workers?

The 240-day rule allows an H-1B employee to continue working for their current employer for a period of up to 240 days after their H-1B work authorization ends. However, there is one condition: the H-1B employee must have applied for an extension before the expiration of their work authorization. The entire purpose of this rule is to prevent work disruption while USCIS processes the extension.  

Note: For example, if an H-1B employee’s I-94 record expires on August 1, 2025, but they already filed an H-1B extension in July 2025, then the employee will be allowed to continue with their work until March 29, 2026 (240 days from August 1).

Employers Responsibilities After H-1B Work Authorization Ends  

Some additional steps, that are not mandatory, but can help employers stay ahead of compliance, include:  

1. Conduct an internal audit: Once the H-1B employee leaves, make sure to conduct a post-termination audit that will allow you to get all relevant documents, such as I-129 filings, LCA postings, Public Access Files, and payroll records in order.  

2. Consult with legal counsel: It is important to update your legal counsel so they can ensure you meet all compliance requirements, including revocation process, document retention timelines, and other mandatory employer obligations.  

3. Deactivate access to internal tools: Make sure the H-1B employee no longer has access to internal immigration case management tools or the HRMS platform.  

4. Monitor PERM or I-40 filings: If the H-1B employee was in the process of obtaining a green card, document whether any active PERM or I-140 petitions were withdrawn or abandoned.  

5. Maintain a clear separation between the last day of work and payroll exit: Make sure you record the employee’s last day of work separately from their final payroll date or any severance leave period. This is done to ensure compliance with USCIS and DOL guidelines.
   
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Summary

The H-1B visa allows foreign skilled workers to stay and work in the U.S. for a total of 6 years. However, if the H-1B employee does not apply for an extension or change of status, their work authorization ends, making them ineligible to work in the United States.  

Once the H-1B employee’s work authorization ends, the employer is required to take some immediate steps without any delay to ensure compliance with USCIS and DOL guidelines. The employer must cease employment, inform the employee in private, and arrange return transportation for them. In case the employee is eligible for an extension, the employer must update the Supplement B section of Form I-9 and consult with their legal counsel.

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