I am currently working under H1B. My wife is on H4 Visa (my dependent). I am thinking of applying for asylum. How is this going to affect my current status and Job if this is approved or rejected. If approved, how can i continue to work with the current employer? If rejected what would be my status and is this going to affect my future PERM processing?
An application for asylum is treated independently of your current immigration status. Thus, if your application is denied and you are maintaining lawful status then that is the end of it and no removal proceedings are initiated (assuming you are not otherwise amenable to removal proceedings).
If your application is approved you will be granted unrestricted employment authorization and can work for anyone you want. The H-1B essentially becomes irrelevant as does the requiremnt to obtain a labor certification as an asylee can apply for permanent residence after being an asylee for 1 year.
Applying for asylum should not be taken lightly. There are numerous restrictions and filing a frivolous claim can lead to permanent ineligibility to for any future immigration benefits. Consult with an experienced immigration attorney who can review the facts of your case and advise you how best to proceed.
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