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Understanding L1 Visa Layoff and 60-Day Grace Period

You’re sipping your morning coffee when the email hits: “Your position has been eliminated.” Panic sets in. You’re on an L-1 visa; this isn’t just a job loss, it’s a legal curveball. What now? Do you pack up? Can you stay? And what happens to your family on L-2s?

Breathe. You’ve got options and time. The 60-day L-1 visa grace period might just be your buffer zone. But to make it work, you need to act smart and fast. In this guide, we break down everything you need to know about navigating an L-1 visa layoff, from protecting your status to mapping out your next legal move. Let’s get you through this, step by step.

 

Navigate Your Immigration Journey with Confidence

 

What is an L-1 Visa?

What is an L-1 Visa

The L-1 visa is a non-immigrant work visa that enables multinational companies to transfer qualified employees from an overseas office to a U.S. branch or affiliate. It is divided into two categories i.e. L-1A for managers and executives, and L-1B for professionals with specialized knowledge. This visa is employer-sponsored, meaning your lawful presence in the U.S. depends on maintaining employment with the sponsoring organization.

What is the Impact of Layoffs on L-1 Visa Holders?

If an L1 visa holder loses their job, their legal status in the United States is immediately affected. Since the L1 visa is strictly linked to ongoing employment with the sponsoring company, termination ends the foundational reason for staying in the country.

Losing your L-1 job is tough, but what comes next can be even more overwhelming. From legal hurdles to immigration uncertainty, the challenges are real. Contact the Law Offices of Sweta Khandelwal to discuss your case and get the proper legal guidance.

What are the Key Challenges After an L-1 Visa Layoff?

What are the Key Challenges After an L-1 Visa Layoff

Losing your job on an L-1 visa can lead to several immediate complications:

  • Loss of Legal Status: Upon termination of employment, the L-1 visa holder loses lawful status in the U.S.
  • End of Work Authorization: Legal permission to work ends immediately with job termination.
  • Emotional and Legal Uncertainty: Navigating the following steps can be overwhelming and stressful due to a lack of clarity.
  • Impact on Dependents: The legal status of L-2 dependents (spouse and children) is tied to the primary L-1 holder, putting the entire family’s stay at risk.

Now that you’re aware of the challenges an L-1 visa layoff can bring, let’s explore how the 60-day grace period can offer a crucial window to manage your next steps.

What is the 60-Day Grace Period for L-1 Visa Holders?

Getting laid off on an L-1 visa can be stressful, but thankfully, you’re not expected to pack your bags immediately. USCIS provides a 60-day grace period, giving you time to plan your next move legally.

How Does It Work?

Under USCIS regulation 8 CFR 214.1(l)(2), if you’re on an L-1 visa (or H-1B, E, O, TN, etc.), you may get up to 60 consecutive days after your employment ends or until your I-94 expires, whichever is earlier.

  • Starts when? The countdown begins the day after your last paid working day.
  • Is it automatic? Mostly, yes. But USCIS has the discretion to shorten or deny it, usually only if you’ve broken any visa rules.
  • Can you work? No. During this time, you cannot legally work unless you already have a separate work authorization (EAD) or get approved for a new visa.

What Can You Do During the Grace Period?

This grace period is your buffer zone to:

  • Find another job and transfer to a new employer (L-1 or other visa category)
  • Apply for a change of status like to H-1B, B-2, F-1, or even L-2 (if your spouse holds L-1)
  • File for a Green Card (Adjustment of Status) if you’re eligible
  • Make arrangements to leave the U.S. without overstaying and risking future visa denials

Why It Matters?

If you don’t act within the 60 days, you risk going “out of status,” which can lead to:

  • Trouble reentering the U.S. in the future
  • Denied visa applications
  • Accumulated unlawful presence

Tip: Keep documents like your final paycheck or termination letter handy; they’re essential for proving your last working day.

Are you still unsure what to do next? Talk to an expert. The team at The Law Offices of Sweta Khandelwal has helped numerous L-1 visa holders manage layoffs and find practical legal solutions.

The 60-day grace period offers more than just time; it opens a window of critical opportunities. Let’s look at the strategic options available to L-1 visa holders during this period to maintain lawful status and plan their next steps.

 

Navigate Your Immigration Journey with Confidence

 

Options During the 60‑Day Grace Period

The 60‑day grace period grants a vital window to preserve your legal status or arrange an orderly exit. Here are your main pathways:

1. Transfer to a Related Entity (Affiliate/Subsidiary)

You may pursue a role with another U.S. branch or affiliate of your current company. However, the new entity must submit a new L-1 petition, which can be challenging to coordinate within 60 days.

2. Change to a Different Visa Type

  • H‑1B: If a U.S. employer files a new petition, you may switch status. Keep in mind that H‑1B is subject to a cap unless you qualify for an exemption.
  • B‑2 Visitor Visa: File Form I‑539 to request tourist status, but you cannot work or job-hunt under this visa.
  • F‑1 Student Visa: Requires admission to a SEVP-certified program and Form I‑539 submission, along with proof of financial support.

3. File for Adjustment to Permanent Residence (Green Card)

If you are eligible and your immigrant visa is current, submit Form I-485. It grants you an EAD and Advance Parole, which allow work and travel during the processing period. Executives and managers on L-1A visas may qualify for the EB-1C category without a PERM.

Also Read: Transitioning from L-1 Visa to EB-1C Green Card: A Comparative Analysis

4. Maintain Family Status

L‑2 dependents have the same 60-day grace period. Any L‑2 spouse who had an EAD loses work authorization once the L‑1’s employment ends, unless switched to a new status.

Pro Tips:

  • Ensure that you keep all essential documents, such as pay stubs, termination letters, and your I-94 record, organized and up to date.
  • Coordinate with your employer, as they’re responsible for notifying USCIS about your termination.
  • It’s also wise to consult an immigration attorney for personalized guidance and timely action.

 

Navigate Your Immigration Journey with Confidence

 

Conclusion

Facing a layoff while on an L1 visa can feel overwhelming, but the 60-day grace period offers a vital opportunity to take action. Whether you’re seeking a new job within the same corporate family, switching to another visa type, or exploring green card options, time is of the essence. Each path has its own eligibility rules and procedures, so making informed decisions is crucial.

Speaking with a knowledgeable immigration attorney can provide clarity on the options available to you. Avoid missteps and file the right applications within the grace period. With timely action and the proper support, you can navigate this transition smoothly and preserve your legal status in the U.S.

Need expert guidance? Contact the Law Offices of Sweta Khandelwal, a trusted immigration law firm located in the Bay Area, California, with offices in San Jose and Palo Alto. Sweta Khandelwal can provide you with clarity on L-1 Visa Layoffs. Book a consultation with The Law Offices of Sweta Khandelwal and get started today!

Disclaimer

Please note that the prices listed for visa services are estimates and may vary in real-time. We recommend consulting the official government websites or other authoritative resources for the most up-to-date pricing information. These estimates do not constitute a guarantee of costs, and fees may change without notice.

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Sweta Khandelwal

Sweta completed her Masters in Law from the University of California, Los Angeles and her JD from the Faculty of Law, Delhi University in India and has been practicing law for 15+ years getting visas, green cards, and citizenship for 1000+ clients, 100+ companies across 50+ nationalities.

Sweta has been recognized as a ” Super Lawyer, Rising Star,” and as amongst the ” Top 40 under 40″ immigration attorneys in California (American Society of Legal Advocates). She is also the recipient of the Advocacy Award by the American Immigration Lawyers Association.

Sweta is also a chartered accountant — the equivalent of a CPA. This makes her uniquely positioned to understand the immigration needs of her business clients in the broader context of their corporate objectives.

Sweta is actively involved with immigration issues and immigrant communities in various capacities. She has assumed key roles at the American Immigration Lawyers Association (AILA), both at the local and national level. She has been a past chair at the Santa Clara Valley Chapter at AILA and has also been involved in various practice area committees at AILA National. Sweta has addressed multiple conferences/forums in the United States and worldwide on immigration and business issues.

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