Can Employers Withdraw H-1B Petitions During a Government Shutdown?

Employers can withdraw H-1B petitions during a government shutdown. The shutdown itself does not cancel a worker’s legal status — the real constraint is government processing. The Department of Labor’s Labor Condition Application (LCA) system pauses when funding lapses, stopping new certifications that are required before filing most new or extended H-1B petitions. By contrast, U.S. Citizenship and Immigration Services (USCIS) is largely fee-funded and generally continues processing already-filed H-1B cases. Practically, that means USCIS can move forward on petitions it already has, while newly planned filings or extensions that need an LCA may be delayed until the LCA system restarts.

Key timing rules and why they matter

• If an H-1B petition has already been approved with a change of status that takes effect on October 1 or later, and an employer withdraws the petition after that effective date:
  • The worker remains in H-1B status.
  • The worker enters a 60-day grace period to seek another employer to file a new H-1B petition or to pursue a change of status.
  • If no new filing occurs within 60 days, the worker must plan to depart the United States.
• If an employer withdraws an H-1B petition before USCIS approval or before the worker’s status changes:
  • The worker is usually not counted against the H-1B cap and does not switch into H-1B status.
  • The individual may need to refile once the LCA system is back online and an approved LCA can be secured.

The critical distinction is the point at which the petition legally takes effect — not the date of the shutdown — because that determines whether the 60-day grace period is available.

Processing bottlenecks during a shutdown

• The LCA is the chokepoint: most H-1B filings (new, amended, or extensions) need a certified LCA before USCIS can accept a petition.
• When the Department of Labor suspends LCA processing, employers cannot obtain certification, so:
  • New hires and extensions that require a new LCA cannot be filed until the LCA system reopens.
  • Amendments requiring a new LCA sit in limbo.
• USCIS can continue to process petitions already filed, but it cannot approve petitions that were never filed because the LCA was unavailable.
• This is especially disruptive for fall start dates tied to the October 1 H-1B cap season, creating a backlog when the LCA intake resumes.

Withdrawal mechanics and practical steps

• Employers can submit a withdrawal/revocation request to USCIS at any time — including during a shutdown.
• The withdrawal process at USCIS is not instantaneous; it can take months for USCIS to complete the revocation in its systems.
  • That processing lag does not extend a worker’s status.
  • Workers must act quickly and not rely on waiting for the USCIS withdrawal notice to resolve status questions.
• HR and employers should:
  • Communicate clearly and document dates of employment end and withdrawal requests.
  • Consider offering extra time or support (where possible) to help employees make use of the 60-day grace period.
  • Keep records of any return travel offers and proof of delivery of notices.

What workers should do immediately

1. Verify the effective date of your H-1B status and the approval status of your petition.
2. Confirm whether your H-1B took effect (e.g., October 1 start) — that determines whether you have the 60-day grace period.
3. Keep copies of:
   • Approval notices
   • Prior I-94 records
   • Correspondence from your employer
   • Exact dates tied to each event
4. Talk with a potential new employer quickly so draft materials are ready to file as soon as the LCA system reopens.
5. If a new job is unlikely within 60 days, consider alternative options such as a change of status (when permissible) and confirm whether LCA is required for that filing.

“A government shutdown does not cancel a worker’s legal status by itself. Status flows from approvals, effective dates, and the rules that apply after an employer ends a job.”

Special notes on premium processing and cap-exempt employers

• Premium processing does not solve the LCA roadblock. The bottleneck is the inability to submit a petition without a certified LCA, not the speed of USCIS processing after filing.
• The rule applies to both cap-exempt and cap-subject employers: if a new or amended petition requires a certified LCA, it cannot be filed until the Department of Labor restarts LCA processing.
• The only exception is if an employer already has a certified LCA for that specific job and can proceed immediately — but that depends on facts and dates.

Practical timeline to keep in mind

• Employment end date → triggers the 60-day grace period if in H-1B status.
• LCA system restart → allows new or amended filings that were waiting for certification.
• USCIS filing and processing → proceeds on submitted petitions; backlogs may build after a shutdown.

Employers and workers should prepare in advance: employers can draft filings and internal approvals; workers should have documents ready and lined-up employers prepared to submit when the LCA portal reopens. Being first in line can mitigate delays from pent-up demand.

Family and dependent considerations

• The 60-day window also affects dependents (e.g., H-4 spouses and children). Their ability to remain depends on the primary H-1B worker’s status and next steps.
• Families should be ready to adjust school, housing, or travel plans quickly and keep passports and school records organized for possible rapid travel.

What employers should do when conducting reductions in force

• Handle the immigration and employment aspects with care:
  • Decide whether to withdraw the H-1B petition.
  • Document communications and withdrawal requests.
  • Consider assistance to let employees use the 60-day grace period effectively.
  • Maintain clear records to reduce confusion and support any future filings.

Common misconceptions to dispel

• A shutdown does not expand or restrict an employer’s right to withdraw a petition.
• A shutdown does not automatically erase a worker’s legal status.
• USCIS does not cease all processing during a shutdown; many fee-funded operations continue.
• The Department of Labor does pause LCA certifications while the shutdown continues — that’s the main operational change.

Quick summary of the main rules during a shutdown

• Employers can withdraw H-1B petitions at any time, including during a shutdown.
• USCIS generally continues operations because it is fee-funded.
• The Department of Labor pauses LCA certifications, delaying new filings, extensions, and amendments that require a certified LCA.
• If an H-1B petition is withdrawn after H-1B status begins, the worker gets a 60-day grace period to find new employment or change status.
• If a petition is withdrawn before approval or before a status change takes effect, the worker will likely need to reapply once processing resumes.

Where to get official information

For official background on H-1B program requirements and petition processing, see USCIS’s H-1B information page: USCIS H-1B: Specialty Occupations. That page is a stable reference for program fundamentals and agency contacts even during a shutdown.

Final practical advice

• Focus on what you can control: gather records, confirm dates, and line up a new employer to file immediately after the LCA system reopens.
• Employers should communicate early, keep records tidy, and support transitions where possible.
• Workers should track dates carefully, keep copies of key documents, and prepare draft filings with potential employers so filings can occur the day the LCA process restarts.

According to analysis by VisaVerge.com, the shutdown’s practical effect is a pause on the pipeline of new H-1B filings that depend on the LCA, while USCIS continues working through existing filings. That split-screen reality emphasizes preparation: when the window reopens, being ready matters as backlog and demand can create additional delays.