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 contemplating eliminating the 60-day grace period for H-1B workers and some other foreign employees after they lose their jobs. The proposal has been forwarded to the White House Office of Management and Budget (OMB) for examination, according to Bloomberg. However, the details have not been finalized and DHS has not publicly disclosed them.

If enacted, the change could leave foreign workers with significantly less time to seek new employment, modify their immigration status, or plan their departure from the United States upon losing their jobs. The 60-day grace period, introduced in 2017, allows non-immigrant workers to remain in the country for up to 60 days following job termination or until their authorized stay ends, whichever occurs first.

During this period, workers can seek new employers, explore alternative positions, explore switching to another immigration status, or make arrangements to leave the country if no alternatives are available.

The DHS proposal aims to remove the 60-day grace-period protection for certain principal non-immigrant workers and their dependents when their employment supporting their immigration status ends before their authorized stay concludes. If finalized, affected workers would face a much tighter timeframe to make necessary immigration arrangements after losing their jobs, potentially requiring immediate departure from the country instead of utilizing the current 60-day window to find another employer.

The specific categories of non-immigrant workers affected by this proposal include E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN visa holders, among others. The change could pose significant challenges for foreign workers who rely on employment-based immigration status and may face greater vulnerability to unexpected job losses, restructuring, or other unforeseen circumstances.

The proposal is currently under OMB review and, if approved, would be published in the Federal Register, allowing for public input. DHS would subsequently decide whether to finalize, amend, or withdraw the proposal. Until a final rule is in effect, the current 60-day grace period remains in force. Until then, eligible H-1B workers who lose their jobs can continue to rely on the existing rules.