What happens when a firm goes bust?

[gretzky]

Hypothetical scenario:

1. Employed under H1B with L/C filed
2. The company goes out of business BUT the legal entity remains
3. The company does not officially lay you off AND continues to pay you a nominal salary to show that you are on the payroll; the company does this until you find a new job
4. This nominal salary is significantly less than what was indicated in the H1B and L/C petition
5. You find a new job in six months after the company goes out of business

Questions:
1. Are you out of status during the six months when you are looking for a job?
2. If yes, and you can't find a job immediately after the company goes bust, what options exist besides going back to your home country?

Many thanks.

 

[armie]

For H1 transfer you need to produce recent paystubs - usually no older than 4-6 weeks. You might be considered out of status if only receive nominal salary. If you are out of status for more than 180 days you might be banned to enter US for three years.
My adivce- try to get a job ASAP. Do not stay beyond six minths without proper salary.

 

[Jharkhandi]

Originally posted by gretzky
Hypothetical scenario:

1. Employed under H1B with L/C filed
2. The company goes out of business BUT the legal entity remains
3. The company does not officially lay you off AND continues to pay you a nominal salary to show that you are on the payroll; the company does this until you find a new job
4. This nominal salary is significantly less than what was indicated in the H1B and L/C petition
5. You find a new job in six months after the company goes out of business

Questions:
1. Are you out of status during the six months when you are looking for a job?
2. If yes, and you can't find a job immediately after the company goes bust, what options exist besides going back to your home country?

Many thanks.

You are not out of status as long as you are on pay-roll and get salary stubs. But the company may face problems if DOL comes to know about it. Find another job ASAP.