New DHS Rule Ends Automatic EAD Extensions: Key Implications for Employers and Employees

Overview

On October 29, 2025, the Department of Homeland Security (DHS) announced an interim final rule that ends the automatic extension of Employment Authorization Documents (EADs) based on timely filed renewal applications with very limited exceptions. The change will impact EAD renewal applications filed on or after October 30, 2025, and marks a significant shift in the employment authorization process.

Scope and Impact

Under the new rule, in most cases, individuals who submit EAD renewal applications on or after the effective date will no longer benefit from an automatic extension of their employment authorization while the renewal application is pending. This includes individuals with H-4 EADs or EADs based on a pending I-485 application. Notably, exceptions remain for extensions provided by law or through Federal Register notice, such as those related to Temporary Protected Status or F-1 STEM OPT. 

Previously, individuals who filed an EAD renewal application and met certain requirements were eligible for an automatic extension of their employment authorization of up to 540 days while the renewal application was pending. The automatic extension mitigated the risk of a gap in employment authorization if the EAD renewal application was not approved before the existing EAD expired.  Under the new rule, the EAD renewal application must be approved and the new EAD in-hand before the existing EAD expires to avoid a gap in employment authorization, unless an exception applies.

The stated purpose of the rule is to enhance security by increasing the frequency of background checks and vetting for individuals seeking employment authorization, deter fraud, and identify individuals who may pose security concerns, thereby allowing for appropriate enforcement action.

The rule does not retroactively affect existing EADs that were automatically extended prior to October 30, 2025.  Individuals with pending EAD renewal applications filed before the effective date of the new rule will continue to receive an automatic extension as provided for under the previous policy.

Practical Considerations

Individuals should file EAD renewal applications as early as possible – up to 180 days before the current EAD expires – to minimize the risk of a potential gap in employment authorization. Delays in filing may increase the likelihood of a gap if the new EAD is not in-hand by the existing expiration date.

Employers should review their internal processes for I-9 re-verification to ensure close monitoring of expiration dates and timely notification to employees who presented an EAD as proof of their employment authorization.  The failure to timely re-verify, where required, may result in potential exposure to financial penalties in a DHS I-9 audit or enforcement action as well as loss of workforce risk.  However, employers must avoid discriminatory practices prohibited by federal, state, or local laws based on citizenship, immigration status, national origin, or work authorization status, including document abuse, and should not specify which documents must be presented for re-verification.

Employers should also evaluate workforce planning and communications.  This includes encouraging early renewal filings, assessing business continuity risks related to potential work interruptions and planning for contingency coverage, and updating internal policies and training. 

Next Steps

Employers should familiarize themselves with the new requirements and adjust their compliance practices accordingly. Immediate steps may include reviewing I-9 reverification timelines, updating internal policies and training, and engaging in contingency planning.  Employers should continue to monitor DHS announcements and the M-274 Handbook for Employers for I-9 process updates.

For further information, please contact a member of Honigman’s Immigration Practice Group.