USCIS Wants to END the 60-Day H-1B Grace Period: What Happens Next?

Imagine you’re working in the United States on a visa such as an H-1B, L-1, or TN and suddenly lose your job. Under current rules, you may have up to 60 days to find a new employer, change to another immigration status, or leave the United States.

Now, DHS is proposing to eliminate that 60-day grace period for certain employment-based visa holders. If the proposal is finalized, affected workers could have far less time to take action after their employment ends.

What the Rule Says Today

Under the current rule, H-1B workers generally have up to 60 days after losing or leaving a job to find a new employer, change to another immigration status, or make arrangements to leave the United States. This is known as the 60-day “grace period.” Under the proposed rule, that protection would disappear, meaning workers could begin falling out of status as soon as the day after their employment ends.

Who is Affected

The proposal would affect workers in these nonimmigrant visa categories:

E-1 treaty traders
E-2 treaty investors and qualifying employees
E-3 Australian specialty occupation workers
H-1B specialty occupation workers
H-1B1 workers from Chile and Singapore
L-1 intracompany transferees
O-1 individuals with extraordinary ability or achievement
TN professionals from Canada and Mexico

It would apply when employment or the qualifying activity underlying that status ends, whether the worker is terminated, laid off, or voluntarily leaves the job.

They generally would be considered to have failed to maintain status beginning the day after their employment ends unless they have some other lawful basis to remain in the United States.

How Dependents Are Affected

Their dependents would also be affected because dependent status is tied to the principal worker’s status. This includes, for example, H-4 and L-2 spouses and children. DHS specifically notes that work-authorized dependent spouses could also lose the ability to remain and work if the principal worker loses status.

What Most People Get Wrong about the Grace Period

There are several important limits to the 60-day grace period that are often misunderstood:

The 60-day period generally begins the day after your last paycheck, not when severance payments stop. Receiving severance does not usually extend the grace period.
The grace period can generally be used only once during each authorized validity period.
The grace period does not provide work authorization. It allows you to remain in the United States temporarily while you take steps such as finding a new employer, changing status, or preparing to leave.
You do not automatically receive a full 60 days. The grace period lasts for up to 60 days or until your current authorized stay expires, whichever comes first. For example, if your I-94 expires in 14 days, you generally have only those 14 days—not 60. If your I-94 remains valid for another six months, you may be able to use the full 60-day grace period.

Why DHS Wants to Remove the Grace Period

DHS gives several reasons for wanting to eliminate the 60-day grace period.

First, DHS argues that a worker’s lawful status should remain closely tied to the specific employment that supported the visa. In its view, there should not be an extended period where a worker remains in valid status after that employment has ended.

Second, DHS says the grace period temporarily separates lawful immigration status from the job that originally justified that status.

DHS also argues that determining when the grace period begins and ends creates an administrative burden. Employment termination dates are not always clear, and USCIS may have to review payroll records, termination notices, and other evidence to determine whether a worker remained within the grace period.

The government also favors a process in which a new employer files for the worker after the worker has departed the United States. In many cases, that would mean the worker must apply for a new visa abroad and attend another consular interview before returning to the United States.

They argue that fewer workers are relying on the 60-day grace period because many already leave the United States and pursue their next visa through a U.S. embassy or consulate abroad.

For workers, however, leaving the country after suddenly losing a job can create significant practical problems. Many have established lives in the United States, including children in school, housing, and family obligations. Requiring them to leave the country before transitioning to new employment could make an already difficult job loss significantly more disruptive.

What Happens If You Lose Your Job Today?

The change is not yet in effect. DHS published the proposed rule on September 11, 2026, and the public comment period remains open through November 10, 2026. Once the final rule goes into effect, workers will be out of status the moment they lose their job. This means workers will be forced to depart the country immediately.

What You Can Do Now

If you believe a layoff may be coming, start preparing before your employment ends.

First, confirm your exact last day of employment and check the expiration date on your I-94. Those dates can determine how much time you have to take action.

It is also a good idea to speak with an immigration attorney early rather than waiting until your final day of work. Planning ahead can give you more options and help avoid problems with your status.

Gather your important immigration and employment documents in one place, including recent pay stubs, offer letters, your I-94, Form I-797 approval notices, passport, and visa documentation. If you need to change employers or status quickly, having these records ready can save valuable time.

If you already have a new employer lined up, filing as early as possible is especially important. Once the available window closes, changing employers or maintaining lawful status can become much more difficult.

What Employers Should Do

Employers should start preparing now in case the rule is finalized.

Begin by identifying every employee in E, H, L, O, or TN status and reviewing their visa classification, I-94 expiration date, and current period of authorized stay. This will help you understand which employees could be most affected if the 60-day grace period is eliminated.

It is also important to build a rapid-response plan for employment changes. Know in advance who is being terminated, who may be transitioning to another role or employer, who may need a new petition filed immediately, and who could be required to leave the United States. The goal is to be ready to act quickly if a worker’s employment ends.

Employers should also speak with immigration counsel early to review their workforce, identify potential risks, and create a plan for handling terminations and visa transitions under the proposed rule.

Contact Us. If you would like to schedule a consultation, please text 619-483-4549 or call 619-819-9204.

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