US scraps 540-day work permit extension: What immigrant workers must know

New rule applies to covered renewal applications filed on or after October 30, 2025, and could leave workers unable to work if their permits expire before USCIS approves renewals

 

The US has ended automatic extensions of work permits for certain immigrants, raising the risk of employment interruptions for those whose renewal applications remain pending when their existing documents expire. For affected applicants, filing a renewal on time will no longer be enough to continue working legally while awaiting approval.

 

The Department of Homeland Security (DHS) finalised the rule on October 14, formalising a policy introduced through an interim final rule on October 30, 2025. The change applies to covered employment authorisation document (EAD) renewal applications filed on or after October 30, 2025.

 

The move has implications for foreign workers, including some family members of H-1B visa holders who depend on separate work permits. Applicants will need to account for US Citizenship and Immigration Services (USCIS) processing times when planning their renewals.

  

What has changed in the US work permit rules?

An EAD, commonly known as a work permit, allows eligible foreign nationals to work in the US for a specified period. Those who need to continue working beyond its validity generally have to apply for a renewal.

 

Previously, eligible applicants who filed their renewal applications on time could receive an automatic extension of employment authorisation for up to 540 days while USCIS processed their cases.

 

Under the new rule, this automatic extension no longer applies to covered renewal applications filed on or after October 30, 2025. Applicants must generally receive approval before their existing work authorisation expires to avoid a gap in their ability to work.

 

The change does not retrospectively cancel automatic extensions available to eligible applicants who filed before the cut-off date. Certain extensions provided under separate legal provisions or Federal Register notices also remain available.

 

Which immigrants will be affected?

The rule covers categories in which continued employment authorisation depends on the renewal of an EAD and does not qualify for a separate extension.

 

Those potentially affected include:

• Certain asylum applicants: Individuals who rely on an EAD to work while their immigration cases are pending.
• H-4 EAD holders: Eligible spouses of H-1B visa holders who have obtained employment authorisation and need to renew it.
• Other eligible foreign nationals: Workers in covered immigration categories whose right to work depends on a valid EAD.

The impact will depend on the applicant's immigration category and whether another provision independently authorises employment.

 

For instance, some spouses of L-1 visa holders in L-2 status may have employment authorisation linked to their immigration status. An expired EAD card does not necessarily end that underlying right to work, although the individual may need valid alternative documentation to establish their status and employment eligibility.

 

International students seeking STEM Optional Practical Training (OPT) extensions are generally not covered by this change. Their eligibility for an automatic extension of up to 180 days is governed by a separate regulatory provision, subject to the applicable requirements.

 

Why has the US tightened the rules?

DHS says the change will allow immigration authorities to complete eligibility assessments, background checks and security screening before granting a further period of employment authorisation.

 

Under the previous system, eligible applicants could continue working during the automatic extension even when USCIS had not completed its review of their renewal applications.

 

The department argues that ending this arrangement will strengthen the verification process and help ensure that continued work authorisation is granted only after the necessary checks have been completed.

 

However, the change also shifts the risk of administrative delays towards workers and their employers.

 

What does this mean for workers and employers?

A delay in processing a renewal could leave an affected worker temporarily unable to work after their existing authorisation expires. This could disrupt household income, employment arrangements and business operations.

 

DHS estimates that between 20,000 and 33,000 work permits could lapse during the 18-month period beginning May 2027, depending on application volumes, filing patterns and USCIS processing times.

 

The department has also estimated potential employer productivity losses of $238.1 million and labour turnover costs of $312.1 million. These are projections, not confirmed losses.

 

What should applicants do now?

Foreign nationals covered by the rule should check their EAD expiry dates, confirm which provisions apply to their immigration category and monitor USCIS processing times.

 

They should file renewal applications as early as the applicable rules permit rather than assume that a timely filing will automatically preserve their right to work. Applicants should also check whether a separate provision protects their employment authorisation.

 

Indian professionals and families living in the US, particularly those relying on H-4 EADs, the central issue is whether the renewal will be approved before the current authorisation expires. Where a delay appears likely, consulting an immigration lawyer and discussing the implications with the employer can help clarify the available options.