US Ends 540-Day Automatic Work Permit Extension, Raising Job Risks for Immigrants

The United States has ended the 540-day automatic extension of work permits for certain immigrants, raising the risk of employment disruptions for Indian professionals, spouses of visa holders and other eligible foreign workers awaiting renewal approvals.

The policy change, introduced by the US Department of Homeland Security (DHS), means that eligible applicants who file to renew their Employment Authorisation Documents (EADs) on or after October 30, 2025, generally cannot continue relying on the previous automatic extension while their applications remain pending.

The move could create difficulties for Indian families living in the US, particularly those whose ability to work depends on a valid EAD and who face delays in the renewal process.

What Has Changed Under the New Rule?

The DHS announced the policy change in October 2025, ending automatic extensions for eligible EAD renewal applications filed on or after October 30, 2025. The administration said the measure would allow immigration authorities to carry out more frequent background checks and screening before extending work authorisation.

An EAD is a document that establishes a non-US citizen's authorisation to work in the country. Under the earlier arrangement, eligible applicants could continue working for up to 540 days beyond their card's expiry date while waiting for a renewal decision.

Under the revised policy, filing a renewal application alone generally does not extend work authorisation. Applicants whose existing authorisation expires before their renewal is approved may have to stop working until they receive the necessary approval, unless an exception applies.

Why Indian Professionals and Families Could Be Affected

The change has particular implications for Indian nationals, including certain H-4 visa holders who are spouses of H-1B visa workers. Those eligible for employment authorisation may face a gap in their ability to work if their EAD expires before the renewal is approved.

Such interruptions could affect household incomes, career continuity and employers' staffing arrangements. Companies may also have to manage temporary employee absences when renewal applications remain pending beyond the validity of existing work permits.

The policy is not restricted to H-4 visa holders. It covers several categories of non-US citizens who depend on EADs, subject to the applicable eligibility rules and exceptions.

Are Existing 540-Day Extensions Also Cancelled?

No. The October 2025 rule does not invalidate EADs that had already received automatic extensions before October 30, 2025. Certain applicants may also qualify for extensions under separate statutory provisions or specific federal notices, including some arrangements relating to Temporary Protected Status.

The effect on an individual therefore depends on the date the renewal application was filed, the relevant eligibility category and whether a separate exception applies.

What Applicants Should Do Now

The US Citizenship and Immigration Services (USCIS) advises applicants to submit their EAD renewal applications as early as permitted, generally up to 180 days before the existing document expires.

Applicants should check their eligibility category and the latest USCIS guidance rather than assume that a pending renewal allows them to continue working. They should also consult their employers or an immigration lawyer if their authorisation is nearing expiry.

For Indian workers and their families, timely filing and careful monitoring of renewal applications will be essential to reduce the risk of employment interruptions under the revised US immigration rules.