US may end 60-day grace period for H-1B workers: What it means for foreign workers

The US Department of Homeland Security (DHS) is considering scrapping the 60-day grace period currently available to H-1B holders and certain other foreign workers after they lose their jobs.

The proposal has been sent to the White House Office of Management and Budget (OMB) for review, Bloomberg reported. It has not been finalised, and DHS has not yet made the full details of the proposal public.

If implemented, the change could leave foreign workers with significantly less time to find another job, change their immigration status or make arrangements to leave the US after losing their employment.

What is the 60-day grace period?

Under current rules, eligible non-immigrant 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 provision was introduced in 2017 to give workers time to deal with an unexpected job loss.

During the grace period, workers can:

• Look for a new employer willing to sponsor them

• Find another qualifying position

• Explore changing to another immigration status

• Make arrangements to leave the US if they cannot find another option

The rule also gives employers more flexibility to hire foreign workers who are already in the country.

What is DHS proposing?

The DHS proposal would remove the 60-day grace-period protection for certain principal non-immigrant workers and their dependants when the employment supporting their immigration status ends before their authorised stay expires.

The full scope and implementation details have not yet been made public.

If finalised, affected workers could have far less time to make immigration arrangements after losing their jobs. In some cases, they could have to leave the US rather than use the current 60-day window to find another employer.

But the rules have not changed yet.

Which visa holders could be affected?

The existing grace-period provision applies to several categories of non-immigrant workers, including:

• E-1 — treaty traders

• E-2 — treaty investors

• E-3 — certain Australian professionals

• H-1B — specialty occupation workers

• H-1B1 — certain workers from Chile and Singapore

• L-1 — intracompany transferees

• O-1 — individuals with extraordinary ability

• TN — eligible professionals from Canada and Mexico

Dependants of eligible workers are also covered under the existing provision.

Has the rule changed?

No. The proposal is currently under review by OMB.

If it clears that stage, it would be published in the Federal Register, giving the public an opportunity to submit comments. DHS would then decide whether to issue a final rule.

The proposal could still be changed, delayed or withdrawn during the regulatory process.

Until then, the existing 60-day grace period remains in effect.

What would it mean for foreign workers?

The biggest impact would be the loss of time.

For workers whose immigration status is tied directly to their employment, a sudden layoff could become an immigration problem much faster than it does under the current system.

If the grace period is removed, affected workers could have to:

• Find a new sponsoring employer much more quickly

• Explore another eligible visa or immigration status

• Make arrangements to leave the US if they cannot secure another option

• Seek immigration advice quickly to determine whether other routes are available

The change could be particularly disruptive for workers who are laid off unexpectedly and need time to secure a new employer.

Why does the grace period matter?

The 60-day window currently provides a buffer between losing a job and having to make a decision about immigration status.

Without it, a worker could have much less time to secure another qualifying job or pursue an alternative immigration route.

That could make employment-based immigration status more vulnerable to sudden layoffs, restructuring and other unexpected job losses.

It could also make it harder for workers to remain in the US while searching for another employer.

What about foreign workers’ families?

The impact could extend beyond the principal worker.

Dependants whose immigration status is tied to the principal worker could also be affected if that worker loses employment and can no longer maintain the underlying status.

For example, H-4 dependants of H-1B holders could face consequences if the principal worker loses status.

The exact impact would depend on the final rule and each family’s individual circumstances.

Could workers still change jobs?

Under the current system, eligible H-1B workers who lose their jobs can generally use the grace period to find another qualifying employer and pursue an H-1B transfer.

Removing the grace period could significantly shorten the time available for that process.

Workers may therefore need to act much faster after a termination, while employers could face greater pressure when hiring foreign professionals already in the US.

What happens if an H-1B worker loses their job now?

Nothing has changed for now.

An eligible H-1B worker who loses their job remains covered by the existing 60-day grace period, subject to the current immigration rules.

The proposal does not immediately change the status of H-1B workers or other covered foreign workers.

What happens next?

The proposal remains under OMB review.

If it moves forward, it would go through the federal rule-making process, including publication in the Federal Register and a public comment period.

DHS could then decide whether to finalise, modify or withdraw the proposal.

Until a final rule takes effect, the existing 60-day grace period remains in place.

What should H-1B workers do now?

The 60-day H-1B grace period has not been eliminated.

For now, eligible foreign workers who lose their jobs can continue to rely on the existing rules.

But if DHS eventually removes the grace period, a job loss could become a much more urgent immigration issue, leaving foreign workers with significantly less time to find another employer, change status or prepare to leave the US.

Anyone facing a layoff or change in employment should monitor official DHS and USCIS updates and consider seeking advice from a qualified US immigration lawyer about their individual circumstances.

With inputs Agencies