US ends 540-day grace period for immigrants after work authorisation expires

The US Department of Homeland Security (DHS) has moved to permanently end a policy that allowed many immigrants to continue working for up to 540 days after their employment authorisation expired while renewal applications were pending, according to a Bloomberg Law report.

The final rule, released this week, makes permanent an interim measure introduced last year that scrapped the Biden-era 540-day automatic extension period for certain categories of foreign workers. The change is set to take effect when it is published in the Federal Register on October 14.

What the rule says

* The automatic extension of work permits during renewal is eliminated, so workers lose authorization when their permit expires, even if a renewal is pending.* The final rule takes effect when it is published in the Federal Register on Oct. 14.* Foreign workers cannot apply to renew their documents until 180 days before expiration.

Why the 540-day extension existed

The extension window was designed to ensure immigrant workers were not pushed out of jobs because of processing delays at US Citizenship and Immigration Services. The agency has since added a number of hurdles under the Trump administration for immigrants to keep or renew their employment authorization.

Who will be affected

The policy affects several groups of immigrants who rely on Employment Authorisation Documents (EADs), including asylum seekers and spouses of H-1B visa holders on H-4 visas. DHS said the move would enable more frequent vetting of applicants seeking employment authorisation. The agency argues that shorter extension periods allow authorities to conduct updated eligibility and security reviews more regularly.

USCIS faces large backlog

Despite the change, USCIS continues to deal with significant renewal delays.According to agency data cited by Bloomberg Law, more than 432,000 work permit renewal applications had been pending for six months or longer as of June 30. Of those, more than 91,000 applications had been awaiting a decision for over 18 months.At the same time, foreign workers are generally not permitted to file renewal applications more than 180 days before their current work permits expire, limiting their ability to offset lengthy processing times.

Legal challenge ahead

The policy has already faced legal scrutiny. A group of H-4 visa holders filed a lawsuit against DHS in January, arguing that the agency's decision to end the longer automatic extension period violated the Administrative Procedure Act. Last month, a federal judge in California issued a limited injunction blocking enforcement of the interim rule against the plaintiffs involved in the case. The court found that DHS had not adequately followed procedural requirements and failed to address the reliance interests of affected individuals.