August 11, 2026
The United States could be moving towards a major change in the rules governing H-1B workers who lose their jobs. The Department of Homeland Security (DHS) is advancing a proposal that could eliminate the existing 60-day grace period available to certain employment-based nonimmigrant workers after their employment ends.
The proposed change is currently under federal review and has not yet become law. However, if implemented, it could significantly reduce the time available to H-1B workers to secure a new job, transfer their visa, change status or make arrangements to leave the United States.
What is the current 60-day H-1B grace period?
Under the existing rules, eligible H-1B workers whose employment is terminated can generally remain in the United States for up to 60 days, or until the end of their authorised validity period, whichever comes first.
This period provides workers with an opportunity to find another employer willing to sponsor an H-1B transfer, explore another eligible immigration option or prepare to leave the country.
The grace period has become particularly important for skilled foreign workers in sectors such as technology, engineering, healthcare and consulting, where layoffs can occur unexpectedly.
What is DHS proposing?
DHS is advancing a proposed regulation identified as RIN 1615-AD22, which would eliminate the 60-day grace period for certain nonimmigrant workers and their dependants following the end of the principal worker’s employment.
The proposal has been sent to the White House’s Office of Information and Regulatory Affairs (OIRA) for review. It is therefore important to understand that this is still a proposal and the current 60-day grace period has not been cancelled at this stage.
If the proposal clears the federal review process, it is expected to be published in the Federal Register, followed by a period for public comments. The regulation would then need to be finalised before it could take effect.
How could the proposed change affect H-1B workers?
If the proposal is eventually implemented, an H-1B worker who loses employment could face a much tighter timeline to maintain lawful immigration status.
Currently, the 60-day window gives workers valuable time to:
- Search for a new sponsoring employer
- File an H-1B transfer
- Explore a change to another immigration status
- Discuss options with an immigration attorney
- Prepare to depart the United States if no alternative is available
Removing this period could make employment termination significantly more disruptive, particularly for workers who are unable to secure a new position immediately.
Indian H-1B professionals could be significantly affected
The development is particularly important for Indian professionals because Indian nationals account for a substantial share of H-1B workers in the United States.
A shorter or eliminated grace period could create additional pressure for Indian IT professionals and other skilled workers who experience layoffs or unexpected employment termination.
Workers could potentially have to move much faster to secure another qualifying employment arrangement or pursue another lawful immigration option.
What about H-4 dependants?
The proposed rule could also have implications for dependants of affected principal workers.
Because H-4 status is generally linked to the principal H-1B worker’s immigration status, a change affecting the principal worker’s ability to remain in the United States could have consequences for accompanying family members as well.
Families therefore may need to consider their immigration options promptly if the proposed rule eventually becomes effective.
Has the 60-day grace period ended?
No.
This is an important distinction.
The DHS proposal is still going through the regulatory process. It has not yet eliminated the existing 60-day grace period. Reports indicate that the proposal is currently under review, and even after that review it would need to proceed through publication, public comments and finalisation before becoming effective.
Therefore, H-1B workers should not assume that the 60-day rule has already disappeared.
What should H-1B workers do now?
Although no immediate change has taken effect, H-1B professionals who are concerned about potential layoffs should remain prepared.
Workers can consider:
- Keep employment documents updated
Maintain copies of approval notices, employment records, pay statements and other immigration documents.
- Start exploring opportunities early
Those concerned about possible job loss should not wait until the final weeks of their grace period to begin looking for another employer.
- Understand H-1B transfer options
A potential new employer may be able to file an H-1B petition, depending on the individual’s circumstances.
- Seek professional immigration advice
Immigration options can vary significantly depending on the worker’s status, employment history, pending petitions and family situation.
- Monitor the proposed rule
The proposal is still undergoing review, and its final provisions and effective date could change before implementation.
A potentially significant change for skilled workers
The proposed elimination of the 60-day grace period could represent a major shift in how H-1B workers deal with employment termination in the United States.
For now, however, the existing grace-period rules remain in place. The proposal must go through additional regulatory steps before any change becomes effective.
H-1B workers, particularly those employed in industries experiencing layoffs, should therefore stay informed and understand their immigration options well before an employment issue arises.
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