H-1B petition filing began on April 1, 2025, and employers with selected beneficiaries have started submitting their petitions. If your petition includes all the required documentation and successfully helps USCIS establish the legitimacy of your application, it will be successfully approved.  

Sometimes, H-1B employees may quit their jobs or face termination. In such cases, employers must handle the exit formalities properly, as any noncompliance on their part can lead to serious legal and financial consequences.  

This blog will outline the key steps employers must follow to comply with USCIS guidelines if their H-1B employee decides to quit or is terminated for any reason.  

What Happens When an H-1B Employee Quits?

The H-1B visa allows employers to hire highly skilled foreign workers in specialty occupations such as technology and healthcare. When a regular U.S. employee resigns or is terminated, the process involves HR intervention and is concluded in no time.
‍

Common Reasons Why H-1B Employees Quit

1. Better job offers: H-1B employees may quit their jobs if they receive a better job offer elsewhere with higher pay and benefits.  

2. Limited career growth: Many H-1B employees quit their jobs if they feel stagnant in their careers, as it affects their growth and impacts their career goals.  

3. Issues in green card sponsorship: The long-term plan of every H-1B employee is to get a green card, but if their employer refuses to sponsor or delay the green card process, employees may have no option but to switch companies.  

4. Concerns about job security: Employees may switch jobs to look for a more stable work environment if there is any uncertainty around project continuation, layoffs, or visa compliance.  

5. Workplace dissatisfaction: A lack of support from the employer can often discourage employees, negatively affecting their productivity, leading to job changes.  

Why the H-1B Exit Process Matters

Once an H-1B employee quits, the employer must complete the remaining end procedures and document them, as noncompliance will lead to:  

• Back wage liability (if terminated): If the termination of an H-1B employee is not considered a bona fide termination, the employee may still be considered legally employed even when they are not working.  
  In such cases, the employer will have to pay the employee from the date of the unofficial termination until the time USCIS receives formal notice of petition withdrawal, resulting in significant financial loss.    

• Civil penalties & fines: If the exit or termination of an H-1B employee is not handled properly, the Department of Labor (DOL) may impose fines on the employer that can range from hundreds to thousands of dollars per violation.

• Debarment from the H-1B program: In extreme cases, employers may be temporarily or permanently barred from the H-1B program.

• USCIS site visits and audits: USCIS may increase unannounced site visits and audits to ensure the same incident is not repeated, which can create unnecessary panic and delay in regular operations.  

• Reputational damage: Legal penalties and compliance failure can damage your organization’s reputation, negatively affecting the business's growth and relationships with clients and stakeholders.

Now that we have discussed the consequences of noncompliance, let’s see what actionable steps employers must take if the H-1B employee decides to quit or is terminated.

How to Respond When an H-1B Worker Resigns

STEP 1

Understand the Type of Exit: It is essential to understand the difference between a voluntary exit and a termination, as the exit formalities may differ for both. The key difference is:  

• Voluntary exit: This means the H-1B employee has resigned on their own, and the employer is not responsible for their exit.  

• Termination: This means the end of employment is because of termination of the employment.

STEP 2

Consult an Immigration Attorney: As soon as the H-1B employee quits or is terminated, employers must inform their immigration attorney, who will assess the situation thoroughly and guide the employer on their next steps.  

STEP 3

Notify USCIS in writing: Once the employment officially ends, the employer must notify USCIS in writing and request the withdrawal of the H-1B petition.

Employers must draft a proper letter mentioning all relevant details, including

• Employee’s full name and Alien Registration Number (if needed)  

• Petition receipt number (Form I-797)  

• Date of resignation or termination  

• A statement mentioning the end of employment  

• A copy of the Form I-797 approval notice  

STEP 4

Offer Return Transportation (if terminated): If the employer has fired the H-1B employee, they must assist them with return transportation to facilitate their return to their last foreign residence.  

Note: The employer is not required to offer transportation if the H-1B employee voluntarily resigns from their position.   

STEP 5

Process Final Pay and Benefits: Employers must ensure that the employee receives their final pay with any applicable benefits in accordance with state labor laws and company policies.  

STEP 6

Update the Public Access File (PAF): While updating PAFs is not mandatory, employers must still update the PAFs to record the employment’s end, maintaining compliance with USCIS and DOL guidelines.

The information employers must include in their records include:

• A memo mentioning the employee’s end date.  

• A copy of the resignation/termination letter.  

• Proof of USCIS petition withdrawal or mailing receipt.

STEP 7

Maintain Thorough Documentation: To maintain compliance during site visits, the employer must document all events and create a detailed file that includes all crucial documents such as resignation/termination notices, USCIS withdrawal letters, and attorney guidance.  

Additional Steps to Ensure Compliance

• Conduct an exit interview: Arrange a formal exit interview with the departing employee to document their experience and the nature of the exit.  

• Provide a written notice of resignation/termination: If the employee has resigned, ask them to provide a written resignation notice, and the employer must do the same if the employee is terminated.  

• Save all email or communication trails: To ensure compliance with the USCIS and DOL’s guidelines, employers must save all forms of communication trails, such as emails, texts, and written notices containing all important details.  

• Audit the PAFs: Before closing the file, make sure all required documents are present, including wage records, LCA, notice postings, and resignation/termination documents.  

• Ensure the Form I-9 is updated: Update the employee’s Form I-9 status as “voluntary resignation” or “terminated” according to federal retention rules.  

‍

‍Summing up

The H-1B registration process for FY 2026 was concluded on March 31, 2025, and the petition filing began on April 1, 2025. Once USCIS approves the H-1B petition, employers will be required to follow other important steps to ensure a successful onboarding of the H-1B beneficiaries.  

If the H-1B employee decides to quit or is terminated, employers must carefully manage the exit process, as failure to do so will lead to serious legal and financial risks. In severe cases, employers may even get debarred from the H-1B program. Employers must follow a structured process if an employee quits; this includes consulting their immigration attorney, understanding the type of exit, notifying USCIS to revoke the H-1B petition, and updating PAF records.    Compliance isn’t easy, but choosing the right compliance partner is. OnBlick simplifies your H-1B filings, ensuring you never miss any crucial deadlines and stay aligned with USCIS guidelines.    Book your complimentary consultation today!