The US is reviewing a proposal that could eliminate the 60-day grace period that allows certain foreign workers on non-immigrant visas to remain in the country and look for a new job after losing employment.
The proposal, submitted by the Department of Homeland Security (DHS), is currently under review by the Office of Management and Budget (OMB). If approved and implemented, the change could significantly tighten the rules for foreign workers whose employment ends before their authorised period of stay expires.
Here is what the proposed change could mean for foreign workers, H-1B visa holders and their dependents.
What is the 60-day grace period?
The 60-day grace period was introduced in 2017 to give certain non-immigrant workers a limited amount of time to deal with an unexpected job loss.
Under the existing framework, eligible workers can generally remain in the US for up to 60 days after their employment ends, or until the end of their authorised stay, whichever comes first.
The period gives workers time to:
-Find another employer
-Secure a new qualifying job
-Explore a change of immigration status
-Take other steps to remain lawfully in the US
The provision also gives US companies more flexibility when hiring foreign workers who are already in the country.
What is the US government proposing?
The DHS proposal under review at OMB would eliminate the 60-day grace period for certain principal non-immigrant workers and their dependents when the principal worker’s employment ends prematurely.
The full details of the proposal are not yet known.
Because the proposal is still under review, it does not currently mean that the 60-day grace period has been abolished.
If the regulation is eventually finalised, however, foreign workers affected by the change could face a much shorter window to make arrangements after losing their jobs.
Which visa holders could be affected?
The proposed change would apply to several categories of non-immigrant workers, including:
H-1B — specialty occupation workers
H-1B1 — certain workers from Chile and Singapore
L-1 — intracompany transferees
O-1 — individuals with extraordinary ability
E-1 and E-2 — treaty traders and investors
E-3 — certain Australian professionals
TN — eligible professionals from Canada and Mexico
Dependents of affected principal visa holders could also be impacted.
What happens if the grace period is removed?
Under the proposed system, a foreign national whose employment ends before their authorised stay expires could generally be required to leave the US immediately, rather than having 60 days to find another job.
That could make an unexpected layoff significantly more disruptive.
Workers could potentially lose the ability to:
-Remain in the US while searching for a new employer
-Transfer to another employer within the normal grace-period window
-File certain status-related applications while remaining in the country
There could still be limited avenues for relief. Immigration authorities have discretion in certain circumstances to forgive a lapse in status, but such relief would not necessarily be available automatically.
Why is the change significant for H-1B workers?
The proposal could have a particularly significant impact on H-1B workers, many of whom are employed in the technology, healthcare, engineering and other specialised sectors.
Under the existing 60-day provision, an H-1B worker who is laid off has time to search for another qualifying employer and potentially arrange a transfer.
Removing that window could put workers under immediate pressure to secure a new immigration pathway or leave the country.
For employers, it could also make hiring foreign workers who are already in the US more complicated, particularly when employment changes occur unexpectedly.
Why are Indian workers likely to be closely affected?
Indian nationals are among the biggest beneficiaries of the US H-1B programme.
According to the figures cited in the report, Indian nationals accounted for about 71% of successful H-1B applicants in fiscal 2024.
The Indian-American population in the US is estimated at around 5.2 million.
As a result, any major change to H-1B employment rules could have a substantial impact on Indian professionals working in the US, particularly those employed in industries where layoffs and job changes are common.
Does this mean H-1B workers will have to leave the US immediately if they lose their jobs?
Not yet.
The 60-day grace period remains part of the existing framework. The DHS proposal is currently only under review at OMB.
Several steps would generally need to occur before a proposed regulatory change becomes final and takes effect.
Therefore, foreign workers should not assume that the current 60-day provision has already been cancelled.
The immediate next step is the federal review of the DHS proposal.
The proposal could eventually move forward, be modified, delayed or withdrawn. Additional details will become clearer if DHS publishes the proposed regulation and explains how the new rules would operate.
Until then, workers on H-1B and other affected visas remain subject to the existing immigration rules.
The proposed elimination of the US 60-day visa grace period could represent a major change for foreign workers who lose their jobs.
For H-1B workers, the current grace period provides valuable time to find another employer and maintain their immigration status. Removing it could mean that workers and their families have far less time to respond to a sudden job loss.
For now, however, the proposal is still under review and the existing 60-day grace period has not been eliminated.
