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Regulatory Update: DHS Final Rule Extends H-1B Cap Gap Period

Published: April 24, 2025 by Legislative Update

89 FR 10354 from DHS Extends H-1B Cap Gap Period

The Department of Homeland Security (DHS) has introduced a significant update with its final rule (89 FR 10354), extending the H-1B Cap Gap period. This rule automatically prolongs the duration of status and employment authorization for F-1 students who are beneficiaries of H-1B Change of Status petitions under 8 CFR 274a.12(c)(3)(i)(B) or (C). If the H-1B petition is properly filed and remains pending or approved, the student will remain authorized to work as an F-1 student with OPT until April 1 or until the validity start date of the approved petition, whichever is earlier.

Effective Date:

Immediate


Recommended Action

  • Extended Cap Gap Period:The new rule changes the automatic extension end date from October 1 to April 1 of the fiscal year for which the H-1B status is being requested, or until the validity start date of the approved petition, whichever is earlier.
  • Impact for F-1 Students: F-1 students with pending or approved H-1B petitions will have an extended period to maintain their status and work authorization without interruption.
  • Employer Compliance:Employers must update their documentation and employment verification systems to reflect the new Cap Gap period. Both students and employers must stay informed about these changes and ensure all relevant processes and documentation are updated accordingly.

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The Experian Services Insights blog focuses on providing updates and solutions for HR teams, business owners, tax pros and compliance officers looking to navigate complex regulatory landscapes while optimizing their workforce management processes. Some important topics include payroll tax, unemployment, income & employment verification, compliance, and improving the overall employee experience.