Critical HR Alert: DHS Terminates 540-Day Automatic EAD Extensions

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25 November 2025

The Department of Homeland Security (DHS) has delivered a significant blow to employment continuity for many foreign national workers. Effective immediately, the 540-day automatic extension for most Employment Authorization Document (EAD) renewal applicants has officially ended under the Interim Final Rule published on October 30, 2025.

This is not a minor adjustment; it is a fundamental shift in I-9 compliance and workforce management that demands immediate action from every HR professional and employer utilizing foreign talent.

The Immediate Threat to Workforce Stability

Previously, the extended 540-day window allowed employees to maintain work authorization while USCIS processed often lengthy EAD renewals. That safety net is gone. This change dramatically increases the risk of:

  1. Work Stoppages: Employees must cease work the day their current EAD expires if their renewal application is still pending.
  2. I-9 Compliance Violations: Failure to properly track and reverify these employees on time can result in substantial penalties.
  3. Operational Disruption: Unexpected staffing gaps due to expired work permits.

 

Categories Impacted – The 540-Day Extension is NO LONGER VALID

The following common EAD categories are among those that have lost the significant 540-day extension privilege. For these employees, their work authorization now expires on the date listed on their current EAD card, unless a new EAD has been physically approved and issued:

EAD Category Applicable Foreign National Workers
A03 / A05 Refugees and Asylees
A07 Certain Special Immigrants (Religious Workers, SIJs, etc.)
A08 Citizens of Micronesia, the Marshall Islands, and Palau
A10 Individuals Granted Withholding of Removal
A17 / A18 / C26 Spouses of E, L, and H-1B Visa Holders
C08 Applicants with Pending Asylum Cases
C09 Applicants Adjusting Status to Lawful Permanent Residence (AOS)
C10 Applicants Seeking Cancellation of Removal

Crucial Exception: Only individuals under Temporary Protected Status (TPS) remain eligible for limited automatic extensions, which are tied specifically to the official extension of the TPS designation itself. All other employees in the listed categories must have a physical, valid EAD to continue employment.

 

VKM Law Group’s Call to Action for Employers

This rule change requires a robust and proactive response from your organization to mitigate legal risk and maintain business continuity.

  1. Review and Overhaul Your Tracking System:
    • Identify all employees with EADs in the impacted categories.
    • Set reminders to initiate the EAD renewal process at least 6-7 months before the expiration date to account for current USCIS processing times.
  2. Communicate Immediately:
    • Inform affected employees of the change and the critical need for timely filing. This communication should be documented.
  3. Develop Contingency Staffing Plans:
    • Anticipate potential employment gaps. HR and management must plan for coverage to avoid workflow disruption if a renewal is delayed.
  4. Strengthen I-9 Compliance:
    • Train your HR staff on the specific documentation rules for EAD reverification. Remember, the receipt notice for a renewal is no longer valid as evidence of continued work authorization for these categories. The employee must present the new EAD.

VKM Law Group is prepared to assist your organization in auditing your workforce, implementing a compliant EAD tracking system, and advising on specific I-9 reverification scenarios. The time to act is now.