If an employment relationship is terminated with an H-1B employee, the employer must send a letter informing the U.S. Citizenship and Immigration Service (USCIS). In addition, if the employee is “dismissed” by the employer (as opposed to the employee voluntarily resigning), the employer is liable for the former employee’s transportation costs to return home. Failure to comply with these requirements could have serious consequences for the employer. USCIS views the employment relationship as on-going, and the employer will be liable for back and front pay. It should also be noted that termination of an H-1B employee results in immediate loss of that person’s nonimmigrant status. Our tip: Employers should have a plan if they decide to terminate an H-1B employee. This plan should include notice to USCIS as well as a mechanism to pay the employee’s travel expenses to return home.