H-1B grace period may end: Can workers in US switch visas after losing their job?

The proposed Department of Homeland Security rule could potentially end the 60-day grace period for H-1B workers in the US following a job loss. This grace period currently allows H-1B workers and other visa holders two months to find a new sponsor, change their visa status, or make necessary arrangements to leave the country after their employment concludes.

Indian nationals constitute the largest group of H-1B visa holders, with 71% of successful applications in the 2024 financial year. Experts argue that eliminating this grace period would be detrimental to legal immigrants who have significantly contributed to America's economy and technology sector. Ajay Jain Bhutoria, a former White House advisor, described the removal of the grace period as inhumane and unworkable.

He emphasized that 60 days were already insufficient for individuals facing sudden job loss to organize their affairs. Bhutoria has urged South Asian community groups, business leaders, and advocacy organizations to submit public comments once the rule is published in the Federal Register. The proposal could have significant implications for start-up founders and employers, as the grace period is often utilized by workers transitioning to starting their own companies, granting them time to change their visa status.

Removing this protection might compel workers to conceal their departure intentions from their current employers until a new visa petition is submitted or approved. Employers stand to lose valuable time to address these departures, potentially affecting their operations. Bhutoria, who previously served as an advisor to former US President Joe Biden, has reiterated his plea for the Department of Homeland Security to withdraw the current proposal and instead implement a 180-day grace period.