H-1B Spouses Sue U.S. Over Termination of Automatic EAD Extensions

(CALIFORNIA, UNITED STATES) — H-1B spouses filed a federal lawsuit on Jan. 8, 2026, seeking to block a DHS rule that ended the automatic extension of work permits.

The complaint was filed in the U.S. District Court for the Central District of California. Plaintiffs challenge an October 2025 DHS interim final rule (IFR) that removed the “safety net” extension for many Employment Authorization Document (EAD) renewal applicants.

The lawsuit argues the rule violates the Administrative Procedure Act (APA). Plaintiffs allege DHS skipped required notice-and-comment rulemaking and claim the IFR is “arbitrary and capricious,” a key APA standard for overturning agency action.

The IFR and what changed

The IFR, titled “Removal of the Automatic Extension of Employment Authorization Documents,” took effect Oct. 30, 2025. It ended the 540-day automatic extension and removed the prior 180-day extension for several EAD categories, including H-4 spouses of H-1B workers who hold EADs in category (c)(26).

USCIS defended the change as a screening and vetting measure. In a Oct. 29, 2025 news release, USCIS Director Joseph Edlow said USCIS was prioritizing “robust alien screening and vetting.” He stated employment authorization is “a privilege, not a right.” The USCIS release is posted at uscis.gov.

Why this matters for H-1B families and employers

For many H-1B households, an H-4 spouse’s EAD is the difference between one income and two. Employers also rely on these workers across tech, healthcare, education, and professional services.

Before Oct. 30, 2025, many EAD renewals received an automatic extension while USCIS processed the case. The 540-day extension was a central tool for preventing forced work stoppages and was formalized in a December 2024 final rule, after years of processing backlogs.

Now:
– An H-4 spouse can still file an EAD renewal up to 180 days before expiration.
– There is no automatic extension if the renewal remains pending after the card expires.
– The employee must stop working on the EAD end date.

Processing times drive the problem. Routine EAD renewals often take 8 to 12+ months in early 2026, so a 180-day filing window often cannot cover the gap.

⚠️ Employer Alert: If an H-4 EAD expires, work must stop immediately. Put the employee on leave or terminate to avoid I-9 violations.

Which categories are affected

The IFR applies to renewal applications filed on or after Oct. 30, 2025. Affected categories include:
– H-4 spouses (c)(26)
– Adjustment applicants (c)(9)
– Certain refugee and asylee categories

Operational and personal impacts:
– For employers: HR must track EAD expiration dates more tightly and plan for sudden work stoppages.
– For employees: Immediate income loss and potential career interruption, plus possible loss of employer-sponsored benefits tied to active employment.

💼 Employee Tip: Keep copies of your I-797 receipt, your current EAD, and your filing delivery proof. Employers often request them for re-verification planning.

FY 2027 H-1B context: more pressure on dependent work authorization

The lawsuit arrives as companies prepare for the FY 2027 H-1B cap season. FY 2027 H-1B employment starts Oct. 1, 2026. Many new H-1B families will depend on H-4 processing timelines.

Annual cap numbers remain unchanged: USCIS makes 85,000 cap numbers available each year (including 65,000 regular cap and 20,000 for the U.S. advanced degree exemption).

The rule change intersects with compliance planning:
– Employers face higher scrutiny on specialty occupation evidence.
– Level I wage cases receive added attention.
– H-4 EAD gaps create additional staffing risk.

Prevailing wage rules still govern the H-1B principal’s pay. Employers must pay the higher of the prevailing wage or the actual wage. Wage levels range from Level I (entry) to Level IV (fully competent).

FY 2027 cap season planning (typical timeline)

📅 Key Date: FY 2027 cap registration is expected in March 2026. Employers should prepare job details and wage data by January or February.

H-1B fees employers should budget now

EAD litigation does not change H-1B filing fees, but employers should budget accurately for FY 2027 petitions.

A separate $100,000 fee may apply to certain petitions starting Sept. 2025, depending on the rule’s scope. Employers should confirm whether they are covered.

What happens next in court

Early litigation typically focuses on emergency relief. Plaintiffs may seek a temporary restraining order (TRO) or preliminary injunction and must show:
1. Likely success under the APA
2. Irreparable harm

DHS will likely argue the IFR was justified as an interim final rule, claiming “good cause” to bypass notice-and-comment. Courts often examine that claim closely.

A quick injunction would restore automatic extensions only if the court orders it; otherwise, employers and employees must plan under the current rules.

Practical steps for employers and employees now

Employers should:
– Conduct an EAD risk audit for all I-9 cases, focusing on H-4 EAD holders and other expiring EAD categories.
– Set reminders at 210, 180, 120, and 90 days before expiration.
– Prepare contingency plans for leave, layoffs, or re-assignment to avoid I-9 violations.

Employees should:
1. File EAD renewal as soon as the 180-day window opens.
2. Request updated employer letters describing duties and business need for escalation requests.
3. Keep filing proof and receipts handy for potential re-verification.

For FY 2027 cap cases, employers should finalize SOC codes and wage levels early. Employees should confirm the offered salary meets the prevailing wage for the worksite using flcdatacenter.com for wage checks.

⏰ Deadline: File EAD renewals as soon as the 180-day window opens. Plan for a work stop if the card expires before approval.

Official resources

📋 Official links:
– H-1B Program: H-1B Program: H-1B Specialty Occupations
– Cap Season: Cap Season: H-1B Cap Season
– Prevailing Wages: Prevailing Wages: flcdatacenter.com