H-1B Transfer Pending After Termination During Government Shutdown

(UNITED STATES) As the United States 🇺🇸 braces for the possibility of a government shutdown, H-1B workers facing layoffs are asking a direct question with real consequences: What happens if a new employer’s H-1B transfer petition is pending and the current employer terminates you during a shutdown? The core safeguard remains intact. Under existing rules, workers generally receive a 60-day grace period from the day employment ends. During this time, they may stay in the country lawfully, but they’re not authorized to work unless the new H-1B transfer petition is at least receipted under portability or approved. A shutdown can slow processing, but it doesn’t change when the clock starts or what the grace period allows.

How the 60-day grace period works

• The 60-day grace period runs consecutively from the last day of employment, or until the worker’s I-94 expires, whichever is shorter.
• The window is meant to allow:
  • Filing a new H-1B transfer petition,
  • Pursuing a change of status, or
  • Planning a lawful departure.
• Important distinction: Lawful presence ≠ work authorization. Filing a transfer alone does not grant work permission.

“Work for the new employer can begin only after USCIS issues the receipt notice for the transfer petition under portability, or after approval if the filing happens after the grace period has already begun.”

• If a petition is filed but not yet receipted, the worker remains in a non-working hold, even if the petition was delivered.

Impact of a government shutdown

• A shutdown can delay USCIS processing and intake, including issuing the crucial receipt notice.
• However, the 60-day grace period still depends on the termination date — the window does not pause during a shutdown.
• If a receipt or approval doesn’t arrive before the grace period ends, the worker must:
  • Change status, or
  • Depart the U.S. to keep their record clean.

Critical warning:
– A delay of only a few days in the receipt notice can determine whether a worker may start the new job or must leave first. Families are often affected by rent, school schedules, and travel plans.

Role of the former employer

• Upon layoff, the former employer must notify USCIS and withdraw the original H-1B petition.
• That withdrawal ends employment authorization with the old employer immediately.
• The withdrawal does not reduce or change the 60-day grace period; the clock still runs from the end of employment.

Discretionary nature and exceptions

• The 60-day grace period is a discretionary DHS benefit and can be shortened or removed in specific cases, such as:
  • Violations of status
  • Security concerns
• These outcomes are not common, but they are possible. The safest strategy during the window:
  • Avoid any activity that could be seen as a status violation.
  • No work before receipt, no side gigs, and no overstaying without an approved change of status.

Policy basics during a shutdown

• Lawful presence during the 60-day grace period does not equal permission to work.
• The legal trigger for work under portability is the USCIS receipt notice for the transfer petition.
• If the petition is filed after the grace period begins, portability won’t apply until the receipt arrives; the worker must then wait for either:
  1. The receipt (so portability applies), or
  2. Final approval (if portability cannot apply).

Practical timing note:
– A delivery confirmation (e.g., FedEx shows delivered) does not guarantee the receipt is issued promptly. Intake delays at the lockbox or service center can mean the receipt arrives late.

Filing deadlines and risks

• The new employer must file the transfer petition within the 60-day grace period to preserve the worker’s ability to remain and transition.
• Filing on the last day is allowed but risky:
  • USCIS may approve the petition but deny the extension of status tied to it.
  • That outcome would require the worker to depart and re-enter the U.S. before starting employment, even though the petition itself is approved.
• In a shutdown, intake and processing delays increase this risk.

Tip from VisaVerge.com:
– The safest path is to have the new employer file well before the midpoint of the 60-day grace period, reducing the chance that shutdown-related delays will stall the start date or force a rushed exit.

Practical timing examples

1. Typical timeline:
   • Laid off on January 5 → 60-day window runs through March 5 (unless I-94 expires earlier).
   • New employer delivers the petition on January 20. During a shutdown, USCIS may delay issuing the receipt.
   • The worker cannot start on January 22; they must wait for a receipt or approval.
   • If no receipt/approval arrives by March 5, the worker must depart or secure a different nonworking status.
2. Last-day filing risk:
   • Petition filed on March 5 (last day). USCIS later approves the petition but denies the extension of stay.
   • Worker must leave and re-enter the U.S. before starting work — a known risk of last-day filings, exacerbated by shutdown delays.

Employer and worker takeaways:
– Employers: Act early. Every day lost reduces the cushion on the back end.
– Workers: Do not assume delivery equals permission to work. Wait for the receipt notice before starting any new role.

Common questions & clarifications

• Does employer withdrawal of the original petition change the grace period?
  • No. The 60-day grace period starts from the termination date; withdrawal just ends the old employer’s authorization.
• Can DHS always grant the full 60 days?
  • No. DHS may shorten or remove the grace period in limited cases (status violations, security issues). Compliance is the best protection.

Practical advice for families and employers

• Families feel the consequences: rent, school, car leases, travel arrangements.
• Many plan for both outcomes: start if the receipt arrives in time, or pause and leave if it doesn’t.
• Recommendations:
  • Employers should file as early in the grace period as possible.
  • Use reliable delivery methods.
  • Keep workers informed about receipt timelines.
  • Workers should set expectations: no start date until the receipt arrives.

Official guidance

• For official information, see U.S. Citizenship and Immigration Services: https://www.uscis.gov
• USCIS explains discretionary grace periods and portability requirements for workers moving between employers.

Key takeaways

• A pending H-1B transfer petition alone does not allow a worker to start a new job after a layoff.
• The 60-day grace period provides lawful presence, not a work permit.
• A government shutdown may slow receipt or approval but does not pause the grace period.
• Filing early within the grace period and waiting for the receipt notice are essential to ensure a lawful, stable transition.