(UNITED STATES) With the threat of a federal funding lapse looming, one corner of the immigration system remains largely steady: H-1B extension cases. Because U.S. Citizenship and Immigration Services (USCIS) is funded by filing fees, USCIS processing of H-1B extension petitions continues during a government shutdown. That means the long-standing 240-day rule — which lets certain H-1B workers keep working for the same employer after their I-94 expires if the extension was filed on time — still applies.
By contrast, the Department of Labor (DOL) halts case work during a shutdown, stopping certification of Labor Condition Applications (LCAs) that are required for many H-1B filings. This split leads to a simple but important outcome: pending H-1B extension petitions under the 240-day rule remain valid for continued employment, but new H-1B filings or transfers that need a fresh LCA get delayed until DOL operations resume.

How the split functions in practice
The difference between what keeps running and what pauses can feel technical, but the practical effect is clear:
- If your employer filed your H-1B extension with USCIS before your current I-94 expired, you can keep working for that same employer for up to 240 days beyond the I-94 end date, or until USCIS makes a decision — whichever comes first.
- This protection remains in effect during a shutdown because USCIS continues to adjudicate pending H-1B extension petitions.
- If USCIS denies the extension before those 240 days are up, your work authorization ends immediately on the denial date.
- If USCIS approves the extension sooner, the continued work authorization then derives from the approval and the 240-day cushion is no longer needed.
Why DOL matters (and what stops)
- DOL stops certifying LCAs during a shutdown. The LCA confirms wage and working-condition commitments and is required for many new H-1B petitions and transfers.
- Without a certified LCA, many new H-1B petitions and many job-change filings cannot be filed with USCIS.
- That creates a clear divide: pending H-1B extension petitions covered by the 240-day rule can proceed at USCIS, while new filings or transfers that depend on a new LCA will wait until DOL restarts case work.
Timely filing — the critical trigger
- “Timely-filed” means the employer filed the extension with USCIS before the worker’s current authorized stay expired, as shown on the I-94 admission record.
- Timely filing is the key trigger for the 240-day rule.
- If the filing was late (after the I-94 expired), the 240-day protection does not apply, and the worker may not be authorized to continue working during the shutdown.
Practical scenarios
- Example — extension already filed and pending:
- Engineer’s I-94 ends October 15. Employer files extension October 1; USCIS issues a receipt.
- Government shuts down. The engineer may continue working after October 15 under the 240-day rule while USCIS adjudicates.
- If USCIS approves on November 10 → employment continues uninterrupted.
- If USCIS denies on November 10 → work authorization ends immediately.
- Example — transfer to new employer:
- Transfer normally requires a certified LCA.
- During a shutdown, DOL is not processing LCAs, so the transfer filing typically must wait.
- The candidate’s current job remains unaffected if covered by a timely-filed extension; the new employer cannot complete the transfer until DOL reopens.
Key rules and limits (quick reference)
- USCIS continues processing pending H-1B extension petitions because it is fee-funded.
- The 240-day rule remains fully in effect for timely-filed extensions: work is allowed up to 240 days after the I-94 end date, or until USCIS decides.
- DOL stops processing LCAs; expect delays for filings that require a new certified LCA.
- A denial ends work authorization at once on the denial date, even if within the 240-day period.
- The 240-day rule applies only for continued employment with the same employer who filed the timely extension; it does not permit switching employers when a new LCA is required.
Recommended actions for employers and HR teams
- Review H-1B workers’ I-94 end dates and confirm extension petitions were filed before those dates.
- Flag any H-1B actions that need a new LCA and adjust timelines, because DOL stops LCA processing during a shutdown.
- Communicate with workers whose I-94 will expire during the shutdown to confirm whether the 240-day rule applies based on a timely-filed pending extension.
Employers generally maintain a “shutdown playbook” that maps which immigration actions depend on USCIS alone versus those that also rely on DOL. Many companies prioritize early extension filings to keep employees working under the 240-day umbrella, while treating new LCAs as tasks that may need to wait.
Documentation and monitoring
- Keep copies of USCIS receipt notices showing the extension was filed and accepted; these are the primary evidence of timely filing.
- Track I-94 expiration dates closely and set reminders to file extensions well before those dates.
- Monitor USCIS case status regularly — a denial terminates work authorization immediately.
Human impact and common concerns
- The 240-day rule is designed to preserve work continuity and status in waiting periods; it provides breathing room for workers whose I-94 expires during a shutdown.
- New hires or employees planning job changes may face delays because LCAs are not being certified during the shutdown.
- These realities can cause stress for workers and employers, but they also clarify what is possible: continued work for timely-filed, pending extensions; paused hiring and transfers pending DOL reopening.
Official references
- USCIS H-1B program overview: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations-dod-cooperative-research-and-development-project-workers-and-fashion-models
- DOL H-1B LCA information (FLAG): https://flag.dol.gov/programs/h1b
Important takeaway: USCIS continues processing pending H-1B extension petitions; the 240-day rule stays in effect; DOL stops LCA processing; employees with timely-filed, pending extensions can keep working for the same employer up to 240 days or until USCIS decides; and a denial ends work authorization at once.
These points have guided outcomes in past shutdowns and remain the primary rules to follow if the government temporarily closes.
Frequently Asked Questions
This Article in a Nutshell
During a federal funding lapse, USCIS — which is funded by filing fees — continues to process pending H-1B extension petitions, so the 240-day rule stays active. Employees whose employers timely-filed extensions before the I-94 expiry may work up to 240 days beyond the I-94 end date or until USCIS issues a decision. However, the Department of Labor typically stops certifying Labor Condition Applications during a shutdown, preventing new H-1B filings and transfers that require a fresh LCA. Employers should verify timely filings, retain USCIS receipts, monitor case status, and adjust plans for any actions dependent on DOL-certified LCAs until processing resumes.