Important Reminder for Employers: Certain TPS Employees May Require Reverification by July 22, 2026 Despite a Previously Calculated 540-Day Automatic EAD Extension

Employers with employees working pursuant to Temporary Protected Status (TPS) should review their workforce to determine whether any employees’ employment authorization will expire on July 22, 2026, even if the employee previously appeared eligible for a longer automatic extension of their Employment Authorization Document (EAD) under the former 540-day automatic extension rule.

Background

Historically, many TPS beneficiaries have relied on two separate provisions extending employment authorization:

1. A country-specific automatic extension of employment authorization announced by DHS in the applicable Federal Register notice extending a country’s TPS designation; and
2. The former 540-day automatic extension of certain EAD renewals, which applied to eligible individuals who timely filed Form I-765 to renew their EAD before October 30, 2025. Under this rule, the automatic extension was calculated by adding 540 days to the expiration date printed on the employee’s current EAD card.

As a result, many employers previously reverified employees’ work authorization based on expiration dates extending well into August 2026.

What Changed?

The One Big Beautiful Bill Act (H.R. 1), signed into law on July 4, 2025, changed the maximum period for automatic employment authorization extensions for TPS.

Under the new law, automatic extensions of employment authorization are limited to the earlier of:

• one year from the date the renewal application was filed, or
• the end of the individual’s underlying TPS designation, whichever occurs first.

For TPS beneficiaries who filed Form I-765 renewal applications in 2025, the one-year limitation generally results in the automatic extension ending on July 22, 2026, even if the previously applicable 540-day calculation would have extended employment authorization beyond that date.

Accordingly, unless USCIS issues a new EAD before July 22, 2026, employment authorization will terminate on that date notwithstanding a later expiration date calculated under the former 540-day rule.

Employees Most Likely to be Impacted The following examples illustrate the issue for certain TPS beneficiaries whose EAD renewal applications were timely filed before October 30, 2025.

*The 540-day automatic extension applies only if Form I-765 was timely filed before October 30, 2025, and all other eligibility requirements were met.

Employer Action Items

Employers should not assume that a previously calculated 540-day automatic extension remains valid through its original expiration date.

Instead, employers should:

• Identify employees working pursuant to TPS.
• Determine whether the employee’s employment authorization has been extended through both a Federal Register notice and the former 540-day automatic extension.
• Confirm whether the employee filed the Form I-765 renewal before October 30, 2025.
• Determine whether the employee has received a new EAD before July 22, 2026 or an alternative work authorization document.
• Reverify affected employees no later than July 22, 2026, unless acceptable evidence of continued employment authorization is presented.

E-Verify Employers

Employers enrolled in E-Verify may receive notifications identifying employees whose employment authorization records require attention and reflecting the updated EAD expiration date of July 22, 2026.

These notifications may assist employers in identifying employees whose work authorization will end on July 22, 2026, despite a previously calculated 540-day extension.

Employers Not Enrolled in E-Verify

Employers who are not enrolled in E-Verify will not receive these notifications.

Accordingly, these employers should proactively review their Form I-9 records to identify TPS employees whose reverification was previously based on the 540-day automatic extension. Employers should independently determine whether those employees’ employment authorization will instead terminate on July 22, 2026 if a new EAD has not been issued and/or alternative work authorization is not available.

We Can Help

This change creates an unusual situation in which employment authorization may expire before the end date calculated under the former 540-day automatic extension.

WR Immigration is assisting employers in identifying affected employees, reviewing Form I-9 records, evaluating TPS-related employment authorization, and ensuring timely reverification to maintain compliance with federal employment eligibility verification requirements. If you have questions regarding your organization’s TPS workforce or need assistance reviewing your Form I-9 records, please contact your WR Immigration attorney.