I was laid off while my H-1B transfer was still pending — is my status broken?
Not automatically. It depends on who laid you off and whether the pending petition still has a live job offer behind it. H-1B portability (AC21 §105 / INA 214(n)) and the 60-day grace period (8 CFR 214.1(l)(2)) are your two safety nets — but each has sharp edges, and working on a mere receipt carries real risk if the petition dies.
Portability: what a pending transfer actually gives you
An H-1B worker already in valid status may begin working for a new employer as soon as USCIS receives the new H-1B petition — no need to wait for approval. That's portability. But the fine print matters: the petition must be nonfrivolous, you must have been maintaining status when it was filed, and only approval locks the status in. A receipt is permission to work, not a guarantee of status.
The two layoff scenarios
| Scenario | What happens |
|---|---|
| Old employer laid you off after the new employer's transfer was filed | The transfer keeps you afloat: keep working for the new employer on portability while USCIS adjudicates. The old employer's revocation of its own petition doesn't kill the pending transfer. |
| New employer laid you off while its transfer is still pending | The job offer behind the petition is gone. The employer will likely withdraw the petition; USCIS may deny it. Your portability work authorization ends with the job. Fall back to the 60-day grace period, counted from your last day of employment. |
The 60-day grace period
Under 8 CFR 214.1(l)(2), workers in H-1B (and E-1/E-2/E-3, H-1B1, L-1, O-1, TN) whose employment ends may be considered as maintaining status for up to 60 consecutive calendar days, or until the end of the authorized validity period — whichever is shorter. During it you may: have a new employer file a change-of-employer petition (and start work on receipt if you're H-1B), change to another status (e.g., B-2), or file for adjustment if eligible. What you may not do: work. The grace period does not authorize employment, and it is discretionary — DHS can shorten or eliminate it.
Watch this space: in September 2026 DHS published a proposed rule (Docket USCIS-2026-0364) to eliminate the 60-day grace period entirely. It is only a proposal — the current regulation remains in force — but it signals where the wind is blowing. Do not plan as if the grace period is permanent.
The receipt-work trap
The biggest hidden risk: if you worked for the new employer on portability and the petition is then denied or withdrawn, that work can retroactively count as unauthorized. Practitioners treat a denied transfer as breaking status back to when the receipt-based work began — which can trigger unlawful-presence consequences. This is why a pending transfer from a shaky employer, or one already conducting layoffs, deserves extreme caution and fast legal advice.
What to do right now
| Step | Why |
|---|---|
| Confirm the petition's status | Ask (in writing) whether the employer will keep the pending petition alive or withdraw it |
| Count your 60 days | From your last day of employment, consecutive calendar days — don't guess |
| Line up a new sponsor fast | A new nonfrivolous H-1B petition filed in time preserves your authorized stay and lets you work on receipt |
| Consider premium processing | I-907 is $2,965 for H-1B petitions (since March 1, 2026) — speed matters when the clock is ticking |
| Don't travel abroad | Departing while a transfer is pending can strand you outside with no valid visa to return on |
Frequently asked questions
Can I keep working during the 60-day grace period?
No. The grace period maintains your status but does not authorize employment. Working during it is unauthorized work.
My old employer revoked its H-1B petition after I left. Does that kill my transfer?
No — revocation of the old petition doesn't invalidate a transfer petition that was properly filed while you were in status. The pending petition stands or falls on its own merits and its own job offer.
What if the new employer withdraws the pending transfer?
Portability authorization ends with the withdrawal. You're left with whatever remains of the 60-day grace period from your last day of employment — find a new petitioner or change status before it runs out.
Sources
- Entry source: https://www.usaym.com.cn/hydt20260530.html
- USCIS, "Options for Nonimmigrant Workers Following Termination of Employment" — 60-day grace period and portability: https://www.uscis.gov/archive/options-for-nonimmigrant-workers-following-termination-of-employment
- JDSupra/Robinson Immigration Law on the September 2026 DHS proposal to end the grace period (Docket USCIS-2026-0364): https://www.jdsupra.com/legalnews/are-the-60-days-up-dhs-proposes-ending-4372837/