What Happens When Your H-1B Visa Employer Withdraws Your Petition?

An H-1B petition withdrawal can create immediate immigration consequences for both foreign workers and employers, particularly where employment ends unexpectedly because of layoffs, restructuring, or resignation. For foreign nationals in H-1B status, the key issue is timing. Your options after a withdrawal may include a transfer to a new employer, a change of status, or departure from the United States. At Sverdloff Law Group, we help clients understand their rights, deadlines, and practical next steps under the current 2026 USCIS rules. In this blog, we will cover:

• Common reasons employers often withdraw H-1B petitions.
• How a petition withdrawal can affect your work authorization and your lawful stay in the United States.
• How to determine if you qualify for a discretionary 60-day grace period after employment ends.
• How portability may allow you to begin work for a new employer once that employer files a nonfrivolous H-1B petition.
• Other options that may be available to you, including changing to O-1, L-1, or B-2 status.

Employer Withdrawal Scenarios

When Employers Must Withdraw an H-1B Petition

Employers commonly withdraw an H-1B petition when employment ends, a worker is laid off, or the sponsored role no longer exists because of internal business changes. In many cases, the employer should notify USCIS that the employment relationship has ended. If the employer filed a Labor Condition Application for the position, it should also follow Department of Labor rules tied to the end of the job.

A proper withdrawal matters for compliance. It may also affect wage obligations. In some cases, an employer remains responsible for certain wage-related duties until there has been a bona fide termination, which usually includes notice to the worker, notice to USCIS, and an offer of return transportation to the worker’s last foreign residence if required.

Status and Grace Period

How Withdrawal Affects Legal Status

An H-1B petition withdrawal does not automatically mean you are unlawfully present on the same day. Still, your ability to remain and work in the United States changes quickly once your employment ends. Your H-1B classification is tied to the sponsoring employer and the approved job.

Understanding the 60-Day Grace Period

USCIS may grant a discretionary grace period of up to 60 consecutive days or until the end of the current I-94 validity period, whichever is shorter. During that time, you generally cannot keep working unless a new employer files a qualifying petition that allows employment authorization under portability rules.

The grace period is not automatic in every case. Timing, prior status history, and the expiration date on your I-94 all matter.

Transferring to a New Employer

How H-1B Portability Works

If you want to transfer to a new employer or a new industry, H-1B portability may help.

Step One: Secure a Job Offer

A new employer must offer you a position that qualifies as a specialty occupation.

Step Two: File a New H-1B Petition

The new employer files Form I-129 with supporting evidence before your grace period or I-94 validity ends.

Step Three: Begin Work if Eligible

In many cases, you may begin working for the new employer once USCIS receives a timely filed, nonfrivolous petition.

Alternative Options

Other Visa Paths to Consider

Some workers may qualify for O-1 status based on extraordinary ability, L-1 status through a qualifying multinational company, or B-2 status for a short period to maintain lawful presence while preparing the next filing. Each option has limits, and B-2 status does not permit employment.

If your employer has withdrawn your H-1B petition, prompt legal advice can make a real difference. Contact Sverdloff Law Group to review your status, assess your options, and build a strategy that fits your goals.