H-1B layoff in 2026: your 60-day grace period playbook

• The clock starts the day after termination
• What you can do in the 60 days
• The mistakes to avoid
  • Working past your last day "to wrap up"
  • Letting your H-4 spouse panic
  • Filing B-2 as a fallback "just in case"
  • Assuming the EAD on a pending I-140 saves you
• What we recommend doing this week

The clock starts the day after termination

The most important thing to know after an H-1B layoff: your 60-day grace period begins the day after your last day of employment, not the day notice was given. Get the termination date on company letterhead before you leave the building. It is the single most important document for everything that follows.

What you can do in the 60 days

You have four lawful options inside the grace period:

1. Transfer to a new H-1B sponsor. The new employer files an I-129 transfer petition. The petition only needs to be received by USCIS within the 60 days — approval can come later. Once it's filed, you may begin work for the new employer under H-1B portability.

2. Change to a different non-immigrant status. For example, B-2 (visitor), F-1 (student), O-1, L-1, or H-4 if your spouse holds H-1B. Filing the change-of-status request inside the 60 days stops the clock.

3. Depart the United States. If neither of the above is viable, you must leave by the end of the grace period. You can still re-enter on a valid H-1B visa with a new petition approved abroad.

4. Self-sponsor an O-1 or EB-1A petition. If you have an extraordinary-ability profile (publications, awards, press, salary), some entrepreneurs use the layoff as an opportunity to flip status. This path is high-effort but viable.

The mistakes to avoid

Working past your last day "to wrap up"

Don't. Once your last day passes, any paid work is a status violation — even if your former employer is friendly about it. If you need a few transition weeks, negotiate a paid post-employment consulting period before your last day.

Letting your H-4 spouse panic

Your H-4 family is fine as long as you are. They follow your status. While you are in the H-1B grace period, they remain in valid H-4 status. H-4 EAD work permits remain valid through their printed expiration unless they're tied to a no-longer-valid I-140 — which is uncommon.

Filing B-2 as a fallback "just in case"

Filing a change-of-status to B-2 commits you to a non-work status. If you later get a transfer offer at month 5, you can switch back, but USCIS sometimes scrutinises rapid back-and-forth. If you have a transfer offer in hand, don't file B-2 as insurance — file the transfer.

Assuming the EAD on a pending I-140 saves you

A pending I-140 alone does not give you work authorisation. You need an actual EAD (work permit) in hand. If your I-140 has been pending for years with no EAD, the grace period clock still applies.

What we recommend doing this week

1. Day 1: Get the termination date in writing from HR. Save the letter as a PDF.
2. Day 2-3: Tell every recruiter in your network that you are open. Mention that you need an H-1B transfer specifically.
3. Day 7-14: If no offer is solidifying, file a B-2 change-of-status with an attorney's review as a backup. Withdraw it later if a transfer comes through.
4. Day 30: If you're at day 30 with no offer in pipeline, book a 30-minute consult with an immigration attorney to discuss self-petition options (O-1, EB-1A).
5. Day 45-55: If still no offer and no Plan B, plan an orderly departure with travel booked before the 60-day deadline.

Talk to a verified U.S. immigration attorney about your H-1B options →