What Companies Should Know Before An H-1B Layoff

With mass layoffs happening at many large tech companies with offices in the U.S., there are special considerations and obligations employers have when laying off their workforce that can include the termination of H-1B sponsored employees. Consequences for not following regulations can include costly litigation and potentially owing back wages to an H-1B employee.

The three key obligations of a company are to (1) execute a clear and "bona fide" notification of termination to the H-1B employee; (2) notify USCIS of the change in employment status; and (3) provide the reasonable cost of transportation back to the last place of foreign residence to the H-1B employee. In addition to the three key requirements, there are additional considerations to avoid the ire of the Department of Labor (DOL). The DOL expressly prohibits the "benching" of H-1B employees, hence the need for a "bona fide" termination. And if down the line, the employer would like to hire back the