Your Company Is Being Acquired or Restructured: What Happens to Your H-1B and Green Card?

A merger or reorg can put your H-1B and green card at risk if you miss one critical USCIS requirement — here is exactly what to do and when.

The announcement drops on a Tuesday: your company is being acquired, or a major restructuring is underway. For most employees, that means weeks of uncertainty about roles and reporting lines. For you, it means all of that — plus a ticking clock on your H-1B status that your HR team may not even know exists.

Deals close. Legal entities dissolve. Employer records at USCIS become outdated overnight. If you do not understand how your visa is tied to the specific corporate entity that sponsored you, you can unknowingly fall out of status even if no one fires you. This guide covers exactly what happens to your H-1B and green card in an acquisition, merger, or reorg — and the specific steps you need to take at each stage.

The core question: what kind of deal is it?

Not all acquisitions are equal from an immigration standpoint. The deal structure determines whether your H-1B survives automatically, requires an amended petition, or requires an entirely new transfer petition filed as if you were starting over.

The single most important thing you can find out in the first 48 hours of any deal announcement: is the legal entity that holds your H-1B petition surviving, being renamed, or being dissolved? Ask HR directly. If they do not know, push for the immigration contact at the acquiring company.

When your H-1B survives without a new petition

In a true universal successor scenario — the acquiring company takes on all rights and liabilities of your employer, including your H-1B sponsorship obligation — USCIS has generally recognized that no new petition is required, provided:

1. Your job duties remain the same or substantially similar
2. Your salary and prevailing wage compliance remain intact (no reduction below the LCA wage)
3. The new entity qualifies as a petitioner under H-1B rules (has an employer-employee relationship with you, has a valid Employer Identification Number, etc.)
4. The worksite locations covered by your LCA still apply

The legal authority here is the legacy INS memo from 1998 known as the "Simeio" line and subsequent USCIS policy memos on successor-in-interest employment. The key principle is continuity: if everything that made the original petition valid is still true, the petition can survive under the new entity.

Practical caution: even if the deal structure technically allows your H-1B to survive, document the successor-in-interest relationship with your attorney. If a USCIS site visit officer finds a different employer name than what is on your I-797, you need a paper trail showing the connection.

When an H-1B amendment or new transfer is required

An amendment or new transfer is required in the following situations. Under the Matter of Simeio Solutions standard, a material change in your employment triggers the obligation to file a new petition before the change takes effect.

You definitely need a new filing if:

• Your legal employer of record is changing to a new entity that was not party to your original H-1B petition
• The acquisition is an asset purchase and your original employer entity is dissolving
• Your job title, duties, or required qualifications are materially changing as part of the deal integration
• Your primary worksite is moving outside the Metropolitan Statistical Area covered by your current LCA

You likely do not need a new filing if:

• The same legal entity is continuing with only a name change (file an amendment to update the record, but status is not interrupted)
• Your role, salary, and worksite are unchanged and the acquirer is a clear successor-in-interest
• The reorg only changes your internal reporting structure but not your actual job, employer of record, or location

If you fall in the "definitely need a new filing" category, work with your attorney to file an H-1B transfer to the acquiring entity before the deal closes if possible, or at minimum the day after. You cannot work for the new entity without authorization, and the acquiring company accepting you onto their payroll does not create that authorization — only USCIS does.

For a detailed walkthrough of the H-1B transfer process itself, see the H-1B transfer playbook.

What happens to your green card process

This is where things get complicated and the stakes get high. The impact depends entirely on what stage you are in.

PERM not yet filed

If your employer was preparing your PERM labor certification but it had not yet been filed with the Department of Labor, the process generally does not survive a deal where the original employer dissolves. A new employer will need to start PERM from scratch on your behalf. This is painful but does not affect your current H-1B status.

PERM filed but not yet certified

A pending PERM is tied to the petitioning employer. If that employer is acquired via successor-in-interest, the DOL may recognize the successor, but this is not automatic and requires documentation. If the original employer is dissolved outright, the PERM typically must be withdrawn and refiled. Consult your attorney immediately — the timing and structure of the acquisition matters here.

I-140 pending, not yet approved

A pending I-140 is similarly at risk. If the original employer withdraws or if the entity dissolves, the I-140 can be denied or withdrawn before it is adjudicated. A successor employer can file a new I-140 and — critically — request to maintain your original priority date from the prior filing. The priority date is yours to keep even if the original I-140 is withdrawn, provided you have documentation.

I-140 approved, less than 180 days ago

An approved I-140 gives you substantially more protection than a pending one. However, if the approval is less than 180 days old, you have not yet qualified for AC21 portability, which means you cannot freely move to a new employer and keep the priority date without that employer sponsoring you. In an acquisition, this means the acquiring company needs to recognize your I-140 as part of the successor-in-interest process, or you need to stay and hit the 180-day mark before making any moves.

I-140 approved, 180 days or more

This is the most protected position. Once your I-140 has been approved for 180 days, AC21 portability lets you change employers — including as a result of an acquisition — and carry your priority date, provided the new role is in the same or similar occupational classification. If you are laid off post-merger, you can move to a new sponsoring employer without restarting your priority date. Full details are in the AC21 portability guide.

EB-2 vs EB-3 strategic note

The priority date is portable across categories, but the category itself is attached to each new petition. If the acquiring company sponsors only EB-3 and your filing was EB-2, you keep the priority date but must refile in EB-3. For Indian-born workers, where the EB-2 vs EB-3 backlog gap can span years, this distinction is significant.

The layoff scenario: what to do in your first 60 days

Post-merger layoffs are common. If your role is eliminated as part of a RIF after an acquisition or restructuring, the immigration clock starts immediately.

Under 8 CFR 214.1(l)(2), you have a 60-day grace period from the end of your H-1B employment — or the remainder of your authorized stay, whichever is shorter — to take one of the following actions:

1. Find a new employer and have them file an H-1B transfer petition. This is the primary path. The 60-day grace period guide covers the mechanics in full.
2. Change to another valid status (F-1, H-4 if your spouse has H-1B, O-1 if your credentials support it, or others applicable to your situation).
3. Leave the United States. This preserves your future options and avoids unlawful presence accumulation.

A step-by-step timeline if you are laid off on Day 0:

1. Day 0: Employment ends. Grace period begins. Request a formal layoff letter from HR specifying the last day of employment.
2. Day 1-3: Contact your immigration attorney. Confirm the exact end date on your I-94 and your current H-1B validity period.
3. Day 1-7: Begin active job search. Communicate your timeline urgently to recruiters — "I have a 60-day grace period expiring [date]" focuses conversations quickly.
4. Day 7-30: Accept an offer from a new employer. Have their attorney file an H-1B transfer with premium processing ($2,965 fee, 15 business day guarantee).
5. Day 8-15 after filing: Receive USCIS receipt notice. Under AC21 §105, you can start working for the new employer on the date of receipt — do not wait for approval if your timeline is tight.
6. Day 45-60: Approval ideally arrives. If an RFE is issued, respond immediately. The 60-day clock does not pause for pending petitions.

If Day 60 arrives with no new petition filed and no change of status completed, you begin accruing unlawful presence. Act before that date.

Common mistakes

Assuming HR handles it. HR manages payroll transition. They do not manage your H-1B. In acquisitions, the acquiring company's HR often does not know your prior petition's LCA details, prevailing wage level, or worksite authorizations. You need to track this yourself or through your own attorney.

Waiting for the deal to close before acting. Deals close fast in the final stages. If you know an asset purchase is coming and your entity is dissolving, start the transfer paperwork before closing. USCIS can receive a petition before the deal closes; the petition effective date can be the start date you specify.

Continuing to work after a status gap. If the original entity dissolves and no successor has been formally established for USCIS purposes, your H-1B authorization is tied to an entity that no longer exists. Continuing to work on that authorization is unauthorized employment with long-term consequences including bars to future visa issuance.

Ignoring I-140 status during the transition. Confirm whether the approving entity still exists and whether the acquiring company has assumed the sponsorship obligation — do not assume your I-140 is unaffected just because it was approved months ago.

Not documenting the successor-in-interest relationship. Get documentation of the deal structure, the acquiring company's EIN, and a written confirmation from the new entity assuming H-1B sponsorship. This protects you in a USCIS site visit or at renewal.

Forgetting the LCA when your worksite changes. If integration moves your team to an office outside your current LCA's Metropolitan Statistical Area, that requires a new LCA and amended petition even if everything else stays the same.

Frequently asked questions

Does a company acquisition automatically void my H-1B?

Not automatically — it depends on the deal structure. In a universal successor acquisition where duties and salary are unchanged, your H-1B typically survives. In an asset purchase where the original entity dissolves, you almost certainly need a new H-1B transfer filed before continuing to work.

Do I need an H-1B amendment after a reorg or restructuring?

In many cases, yes. Under the Matter of Simeio Solutions standard, a material change — new legal employer entity, significantly changed duties, or a worksite move outside your current LCA's Metropolitan Statistical Area — triggers a new petition or amendment requirement. A reorg that only changes your reporting line without touching title, duties, salary, or location generally does not.

What happens to a pending I-140 if my company is acquired?

A qualifying successor-in-interest acquisition can preserve a pending I-140 and your priority date. If the original company dissolves with no successor, a pending I-140 is typically withdrawn. An approved I-140 is more durable — it can survive employer dissolution in many circumstances, protecting your priority date for AC21 portability.

My company is being acquired and I might get laid off. What is my grace period?

Under 8 CFR 214.1(l)(2), you have 60 days from the end of H-1B employment (or the remainder of your authorized stay, whichever is shorter) to transfer, change status, or depart. The clock does not reset between jobs — treat day one of unemployment as day one of the grace period.

Can I use AC21 portability if my employer is acquired mid-green-card process?

Yes, provided your I-140 has been approved for 180 days or more and your new role is in the same or similar occupational classification. That 180-day threshold is the gating requirement — if a post-acquisition layoff comes before you reach it, your options narrow considerably. See the AC21 portability guide for the full analysis.

Acquisitions and reorgs are stressful enough without a visa clock running in the background. The candidates who get through them cleanly are the ones who ask the right questions immediately, document the corporate transition thoroughly, and do not assume that HR or the acquiring company's legal team is watching out for their status.

If you are working through a merger or restructuring right now and want a second set of eyes on your situation, F1Jobs works with H-1B and green card holders navigating exactly these transitions every week.