The US has brought a major change in the extension rules of work permits that leave the foreign workers and companies that rely on employment authorisation without the certainty they have become accustomed to. Ending the automatic 540-day extension of work permits for some Employment Authorisation Documents (EADs) could introduce more ‘uncertainty’ for the applicants who are eligible to receive them until their renewal comes through. For Indian professionals working in the US on H-1B or as dependents, it is important to familiarise themselves with the new rules.
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What Has Changed in the US Work Permit Rules?
The US Department of Homeland Security (DHS) has made the determination to cancel the automatic extension of employment authorisation documents (EADs). Previously, applicants who were qualified to apply for an EAD received an automatic extension of up to 540 days while awaiting renewal processing.But the recent changes meant the extension wouldn’t apply to renewal applications that are eligible for filing on or after October 30, 2025, with certain exceptions. The October 14, 2026, final rule leaves the policy change as-is.
Why Was the 540-Day Work Permit Extension Important?
The 540-day extension was added as a temporary safeguard to permit qualified foreign workers to continue employment while US Citizenship and Immigration Services (USCIS) handled the work authorization renewal applications.Absent this automatic extension, employees with current authorisation that expire prior to the approval of their renewal will not be allowed to work until they are granted renewal authorisation, in addition to any other grounds that they might have to continue working.
How Will the New US Rules Affect H-1B Visa Holders?
This policy update is more likely to impact families of H-1B visa holders who use their Employment Authorisation Documents to work in the US.Separate from an H-1B is an EAD. The H-1B will typically have employment authorisation based on its change of status and approved employment arrangements. The new rule primarily impacts some EAD renewal applicants, not necessarily cancelling H-1B employment authorisation automatically.
