Survival Guide for Laid-Off H-1B Workers (Updated)

 

In 2025, a year defined by AI and tariffs, the U.S. tech job market remains volatile for H-1B visa holders, with ongoing layoffs contributing to broader economic uncertainty. From 2021 to September 2025, tech companies announced over 600,000 job cuts, representing about 16.7% of all U.S. job losses during that period, despite the sector's overall growth. Opportunities still exist, but competition for jobs is fierce, especially in STEM fields clustered in major metros like San Francisco and New York.

The primary risk for H-1B workers is the immediate start of a strict 60-day grace period upon job termination, during which they must secure a new sponsor, change status, or depart the U.S. to avoid accruing unlawful presence, which could trigger bars on re-entry (3-10 years).

Immigration Options Within the Grace Period

Most options depend on the grace period. The first step is to confirm the final date of employment. The grace period is 60 days from this date, not to exceed the last date in the most recent I-94 form.

A. New Employer Files H-1B Transfer. 

• The best option is to have a new employer file a “transfer” H-1B petition for you.  If filed during the 60-day grace period, you may begin working as soon as receipt of the transfer petition. Hence, start looking for a new job at the first hint of a layoff. 

B. Change to other Non-Immigrant Status

• By changing to another legal status, you are also eligible to stay in the U.S.   However, you must qualify for the status and understand the ramifications after changing to that status.  Some options include: 

  • F-1 student status (if you get admission to an institution, full-time enrollment)

  • O-1 extraordinary ability status

  • B-1/B-2 temporary visitor status

  • E-2 or EB-5, if qualified

C. Dependent Status (if spouse on H-1B, L-1, F-1, etc.)

• If your spouse remains on H-1B or other legal status, you may convert to H-4 or other dependent status.

D. Depart the U.S. & Reenter Later

• If no viable path remains, prepare to depart before grace period expires. Otherwise, you may risk arrest and deportation.  If you leave, your remaining H-1B validity may be preserved for future use. One caveat:  You will likely be subject to the $100,000 additional H-1B fee, unless you are able to return to the U.S. in another legal status.

E. Apply for an Employment-Based Green Card (EB)

• If you already had a PERM or I-140 approved, explore whether you can convert status or maintain validity via prior employer or self-petition (NIW, EB-1A).  

F. Hire yourself: Self-employment for H-1B

You may be able to self-sponsor yourself of for H-1B. First, there must be a legally incorporated U.S. entity (LLC, C-Corp, etc.) to sponsor you, of which you could be one of the owners. In addition to the normal H-1B requirements, such as demonstration of a bona fide employer–employee relationship, there must be independent oversight, such as a board of directors, other owners/investors, senior officers other than yourself.  

Other Options:  Based on the person's specific profile and circumstances, there could be other viable options.  Seek help from an experienced immigration lawyer for a thorough evaluation. 

• Other Tips and Considerations for Laid-off Workers

• Negotiate the date of termination:  Discuss with your employer to see if the termination can be extended. This would extend your grace period and "buy" you more time.

Post-layoff benefits and issues:  Find out if you are eligible for unemployment benefits in your state.  Review your severance agreement carefully—for release of claims, non-compete, timing of payments (must align with immigration deadlines). Ensure continuation of health coverage (COBRA) or convert to private insurance. You may be entitled to return transportation if you decide to depart.

Financial planning & budgeting: Estimate your timeline and plan your budget accordingly. Always keep emergency funds equivalent to 3-6 months of expenses.

Plan for possible departure:  If departure is unavoidable, plan ahead for your apartment, car, pets, bank accounts, and other personal matters.

• Final Words

This is an unusually difficult moment to experience a job loss. Immigration enforcement by ICE is more aggressive than in prior years, and USCIS is applying heightened scrutiny to petitions across nearly all categories. At the same time, rapid advances in AI are reshaping the labor market and increasing competition for specialized roles. Even so, with careful planning and timely action, many individuals can navigate the disruption and position themselves for better opportunities as conditions stabilize.

(Immigration laws and policies change regularly.  If you have any questions regarding this article, please visit www.1visa1.com to schedule a legal consultation.)