As far as I knew it only applied to Z-visas. A couple of my friends have faced the same problem. Leave for a year or go on to a student visa were their choices.
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I’ve been working here for 5 years though and have never heard of this particular rule. I know a lot of people who’ve been here for 5+ years (and even some for 10+ years) but I haven’t heard of this mentioned until now for some reason.
I was told that it was 5 years working for the same company. The rules are different if you own a company. It’s happened to several of my friends, all teachers. One will leave this summer because of it.