Likewise, because the H-1B application is specific to a particular employer, if an H-1B employee is terminated from employment, the worker must find a new sponsoring employer, apply for a change of status to another non-immigrant status, or must leave the United States. Also, if the company has a reduction in force (RIF) policy but gives the H-1B employee several months of severance after the RIF, the H-1B employee ceases status from the day he stops employment, not the day his severance ends.

The sponsoring employer's duty, however, does not end with the termination of the employment. If an H-1B employee is dismissed before the end of his or her period for admission, the employer must pay “the reasonable costs of return transportation of the alien abroad” and must notify U.S. Citizenship and Immigration Services (USCIS) of the termination. The enforcement of this provision is regarded as a private contractual matter. However, failure to comply with this provision could subject the employer to continued accrual of front and back pay because there is no bona fide termination until these steps are taken.