19th May 2001 - H1B News
H1B Laid off - Out of status ( Helpless Law for H1B workers )

Out of Status

The INS latest news bulletin clearly specifies the following information for H1B holders: As per the latest bulletin released by INS - office of business liaison, if an H1B holder loses his/her employment, his/her H1B status will also be lost.

He/She can be considered in legal status ONLY if they have any application pending with INS for change of employment(H1B Transfers) or change of status from H1B to any other visa or adjustment status. The petitions which were filed AFTER the last date of employment, are NOT eligible for change of status or change of employment because the applicant is out of status when he/she loses the job.

The laidoff H1B worker will be considered out of status eventhough if he has valid H1B visa in his passport or valid I-94 card.

Out of Status - Deportation and 3-10 years bar.

This will be really a very critical situation for H1B holders since many employement contracts need only 15 days notice from either side. It is very difficult to find another H1B sponsor within 2 weeks time and file for another application. So now the laid off H1B holders are in a situation to force to go out of the country in order to enter again into US without any problem. Also the INS is having very strict regulations for overstay or out of status. The punishment can be either deportation or 3 to 10 years bar.

More impact for Indian software professionals

Based on the previous years statistics, around 50% H1B VISAs are utilized by Indians. Due to economy downturn, the contract programmers (H1B holders) are the first one to lose their projects and Jobs. We have received several Emails from our users saying that they left US by leaving behind their cars and things as it is in US. So, many H1B holders who went for vacation are still in abroad or lost their jobs before completing their vacations. Only from India, lots of people are filling the hitech jobs in US with challanging skills. During Y2K - Fixes, many indians flew to US for solving the Y2K problems and helped the US economy. Now due to US economy downturn and strict INS policies, many of them left US, sold their properties for very low prices and donated a lot of things to charities. Still many of them are leaving US by hoping to come back after the situation improves. The laws are helpless for H1B holders to stay for some more time till they find another H1B sponsor.

Tips

It is advisable to leave US if an H1B holder loses his/her job and come back with valid H1B for someother company after the situation of US economy improves. Those who already got the job from US consulting companies, are requested to make sure that they have projects for their skills before coming to US.

For INS bulletin in PDF format, please visit http://ilw.com/lawyers/immigdaily/ins_news/2001,0516-H-1B.pdf

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