The Impact of H4 EAD on USA Job Market: Employment Trends & Opportunities for Skilled Visa Holders

The Impact of H4 EAD on the Workforce: Key Trends and Opportunities

INTRODUCTION

The competence to work is a cornerstone for personal and career professional growth for H4 visa holders. An Employment Authorization Document (EAD) is an essential access to job opportunities for the spouse of H1B visa holders who contribute positively to the workforce and economy. We will explore more about the eligibility criteria, key employment trends before the H4 EAD program, positive impact and challenges after the H4 EAD program was introduced.

ELIGIBILITY CRITERIA OF H4 EAD

Being an H4 visa holder does not automatically make an individual eligible to work in the United States. To be able to work legally without any interruption, one is required to have an Employment Authorization Document (EAD).

The following eligibility criteria is required to qualify for an H4 EAD:

A Valid H4 Visa

The individual must hold a valid H4 visa and be physically present in the U.S.

H1B visa holder’s green card process

The H4 visa holder must be married to the H1B visa holder who either has:

  • An approved Form I-140 and is in the process of getting permanent residency.
  • Has received an H1B visa extension beyond the standard six-year limit due to the delays in the green card process.

EAD Application Submission

The applicant should submit the following documents:

  • Form I-765 (Application for Employment Authorization)
  • Certain supporting documents(eg) H4 status, spouse’s approved I-140 or extended H1B status, marriage certificate
  • 1. Financial Dependency on H1B visa holders
    • H1B visa holders are the primary bread winners who are both earning and providing for the family. This will make the dependents, mostly the spouse to be contingent upon the finances earned which cause financial strains when planning for the household.
  • 2. Underemployed professional
    • The H4 visa holders had few employment opportunities which only allowed them to work for their H1B spouse’s employer or to participate in any volunteer work. Most of H4 visa holders are highly qualified and experienced with advanced degrees hence they were not able to get jobs which they are specifically qualified for but rather end up being underemployed.
  • 3. Restricted Employment Opportunities
    • Many H4 visa holders were not allowed to work without the EAD card which limited skilled professionals to contribute both in the workforce and household. Even with an EAD in hand, getting employed was difficult as some employers would not hire H4 visa holders and it would limit their financial contribution in the household.
  • 4. Increase in Educational Pursuit
    • Some individuals who are H4 visa holders tend to enrol for higher education in universities and colleges. This helps in career development for any future job opportunities and as a way to change from H4 to a different (F1) visa status. It also opens a pathway to networking which might help get employment.
  • 5. Psychological Impact
    • Failure to contribute in the household can be really overwhelming for the H4 visa holder as they may feel anxious, stressed and at times lead to depression hence leading to family instability.

POSITIVE IMPACT OF H4 EAD ON THE U.S WORKFORCE AND ECONOMY

Being able to work as an H4 visa holder after acquiring an EAD (Employment Authorization Document) has a major positive effect on the U.S workforce and economy which introduced new dynamics and opportunities. This immigration policy gave H1B spouse’s a chance to pursue employment which they are specifically qualified for. Check out our informative article Related H-4 visa holders for further insight into the policy reform changes.

Let’s look more in the employment trends which led to the positive impact:

  • 1. Increased Economic Growth
    • With more skilled professionals working, this has led the economy to significantly grow with more consumer spending which comes from dual households (both H4 and H1B visa holders). They contribute to the tax revenue pool of the US by working and earning income therefore reducing the public service strain.
  • 2. Innovation and Entrepreneurial Growth
    • They bring new ideas and skill expertise which leads to fostering innovation and research in various sectors. H4 visa holders contribute to job creation by starting their own business which brings positive economic dynamics.
  • 3. Employment Authorization Document (EAD) auto-extension
    • The automatic extension is a process whereby the EAD of an H4 visa holder is renewed automatically for a given timeframe without them reapplying. H4 visa holders carry on with work without any disturbances and this helps mitigate delays in USCIS processing times. Productivity of work carries on smoothly which contributes to the economy.
      • To be eligible for automatic extension, the H4 visa holder should have the following:

      • Eligible employment- The employment should be the same as the one on the original EAD.
      • A valid H4 visa status during the extension.
      • File for EAD renewal early and submit the application before the current EAD expires.
  • 4. Family Stability and Well-being
    • Family stability is important for a very happy unified family without any strains. Financial stability contributes to the family’s financial planning by covering any health expenses, insurances and daily expenses thus brings forth a better quality of life. Dual income contribution from both the H1B and H4 visa holder boosts the household income.
  • 5. Improved Diversity and Cultural Enrichment
    • If you are from another country, you tend to have a different culture that you are used to. When an H4 visa holder is employed in the U.S, they bring about cultural exchange, diverse insights and skills which contribute to the company. Therefore, it eventually leads to a more inclusive and diverse work place.
  • 6. Improving Gender Diversity and Women empowerment
    • Most of H1B spouses are women who have accompanied their partners who have secured employment. Being allowed to work whilst on an H4 visa promotes gender diversity in work places and sectors like STEM where gender disparity is most commonly found. This also empowers women to be independent and reduces economic dependency by contributing to household income which helps in family support.
  • 7. Talent Utilization / Filling talent Gaps
    • In other sectors and industries like STEM where there are critical skill shortages, H4 visa holders step in by meeting labour market demands. This is a win for employers with the benefit of sourcing out additional talent pool which maintains innovation and competitiveness of US in the global market. The skilled professionals with advanced degrees get to fill their appropriate job positions and fully utilize their talent.
  • 8. Retention of Highly Skilled H-1B Workers
    • Allowing the spouse of H1B skilled workers to secure employment will lead to family stability and employment satisfaction as H4 visa holders are successfully pursuing their careers. There is a reduction in talent drain with the skilled H1B workers remaining in U.S without going back home or seeking better opportunities in other countries. This stability leads to retention of talent from both H1B and H4 visa holder which immensely contributes to the economy.

CHALLENGES & CONSIDERATIONS / UNCERTAINTIES FOR H4 EAD HOLDERS

While this program provides significant benefits to H4 visa holders and the U.S economy. This program has brought positive impact, therefore it is also important to acknowledge the challenges and uncertainties it holds.

Below are some of the major key challenges and limitations that H-4 EAD holders face in the U.S:

  • 1. Dependency on H1B status
    • The validity of the H4 EAD visa status is subject to the H1B visa holder’s status. If the H1B visa is either terminated or expired it will automatically mean that the H4 visa status is invalid hence it affects the ability to work. If the H1B visa holder loses their job, they are given a grace period of 60 days to look for a new employer willing to sponsor and change their visa status. Once they get an employer, the H4 visa status is maintained but if they fail to get an employer then it automatically means the H4 visa holder is “out of status” and both H1B and H4 visa holders are required to leave the country. This will eventually lead to shortages in labour market depends thus affecting the economy.
  • 2. Uncertainty of Immigration policy reforms
    • Changes in immigration policy occur as different administrations come in and out. The uncertainty of the H4 EAD program is a major threat, as it could lead to the program’s revocation which will result to unemployment of H4 visa holders. This cause employment gaps and shortage of skilled professionals to contribute in the workforce.
  • 3. Employment discrimination and Employer reluctance
    • This is due to the employer’s unfamiliarity with the H4 EAD program which lead to hesitations in hiring H4 visa holders. Most employers prefer hiring local residents or permanent residency candidates as they assume H4 visa holders are usually looking for temporary employment. The risk of changing immigration policies make H4 visa holder’s unfavourable to hire and eventually leads to discrimination.
  • 4. Limited access to certain benefits
    • Unfortunately, the H4 visa holders do not get to fully experience all the benefits like the U.S citizens and green card holders. If they are employed, they may not be eligible for certain retirement benefits provided like any other normal citizen and have restricted access to certain benefits.
  • 5. Processing days
    • Processing days are significantly long varying from 6 to 12 months or more and hence the renewal application should be applied in time. Despite applying on time, the process might take longer and this will lead to unemployment as the H4 visa holder will not be having an EAD. Even with the introduction of the automatic extension, you are allowed up to 540 days of work authorization and if the processing period exceeds these days, then eventually the H4 visa holder will be unemployed.

CONCLUSION

With the H4 EAD program in place, it has certainly contributed positively to the workforce and U.S economy which gave H4 visa holders an opportunity to expand their careers whilst accompanying their spouse on H1B visa. There are some limitations and ongoing challenges faced by H4 visa holders which include processing days, changes in immigration policies and limited access to benefits.

Visit our UNITED OPT. website for job assistance services for H4 visa holders and international students in the USA.

FAQ’s

1. Is it possible to work in the U.S. with an H4 visa?

Yes, you can work on an H4 visa only if you have an EAD. To qualify for an H4 EAD, a certain criterion should be followed. This includes a valid H4 visa status, H1B principal holder’s green card process (should have an approved form I-140 and received visa extension beyond the standard six-year limit) and submitted EAD application.

2. Can you study in the U.S on an H4 VISA?

Yes, you can study in the U.S on an H4 visa at any school level from elementary school to graduate school. You can get to enrol in any program of your choice and may be eligible for in-state tuition depending in the state you are in.

3. Are you immediately considered “out of status” if the spouse of an H4 visa holder becomes unemployed?

If your spouse loses their job while on an H1B visa it does not mean your H4 visa is considered “out of state” immediately. However, they are given a grace period of 60 days to look for a new employer willing to sponsor them, change their visa status or leave the U.S. If the 60-day grace period is over and they have not done anything then it will automatically be “out of status” for the H4 visa holder.

4. Does changing employers affect my H4 EAD?

Changing employers will not affect your Employment Authorization Document (EAD) as it is directly linked to your H4 visa status which depends on the status of your H1B spouse. Thus, you can work for any employer, change jobs and also be able to start businesses.

5. Is it possible to apply for an H4 EAD whilst being in a different country?

No, you can only apply for an H4 EAD whilst you are physically present in the US. To be eligible for the EAD, you should ensure that both the H4 and H1B visa status is valid and maintained during the application process.

6. Are H4 EAD subject to a yearly limit according to the number issued?

The number of H4 EADs issued each year are not subject to any limitation or annual cap. They are only issued to eligible H4 visa holders who have met specific the requirements.

7. What is the average time for an H4 EAD to be processed and approved?

About 3 to 12 months is the average processing time for an H4 EAD to be approved. The processing time varies with certain factors which include the USCIS service centre, application volume, backlogs and complex application requirements.

  1. Clara Michael

    Clara Michael is a Career Counsellor and Legal advisor at United OPT. she has very good working experience with OPT, CPT and H1B candidates. She has a vast knowledge of recruitment and immigration laws. Through her experience and knowledge, she is giving her best to support the international student community in the USA. Do share the article if you like it.