H-1B Workers Face Major Change as DHS Moves to End 60-Day Grace Period

H-1B workers who lose their jobs could face a major change to the time they have to protect their immigration status, as the U.S. Department of Homeland Security advances a proposal aimed at eliminating the current 60-day grace period for certain employment-based nonimmigrant workers.

The proposal has triggered concern among foreign professionals, particularly workers whose legal status is tied to their employment. But one point is crucial: the 60-day grace period has not ended. The proposal is still going through the federal regulatory process and is not currently in effect.

The measure is identified as RIN 1615-AD22 and targets the discretionary grace period available after qualifying employment ends. Until the proposed regulatory text is published, important details about how DHS intends to apply the change remain unknown.

How the current 60-day grace period works

The existing framework comes from a DHS regulation issued in 2016 that took effect in January 2017. It generally allows eligible workers whose employment ends to receive a discretionary grace period of up to 60 consecutive days, or until the end of their authorized validity period, whichever is shorter.

That means a worker is not automatically guaranteed two full months. If the person’s authorized stay expires sooner, the available period can be shorter.

The protection is not limited to layoffs. It can apply when qualifying employment ends voluntarily or involuntarily and covers several classifications, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN, along with qualifying dependents.

For an H-1B professional, this window can provide valuable time to secure another sponsoring employer, pursue an eligible change of nonimmigrant status or make arrangements to leave the United States.

The grace-period debate comes as employers are already navigating other potential changes to skilled-worker immigration. A separate H-1B wage proposal could substantially increase salary requirements for some sponsored positions, potentially adding another consideration for companies hiring foreign professionals.

What eliminating the grace period could change

If DHS ultimately removes the protection, an unexpected job loss could create immigration-status consequences much sooner. Workers may have considerably less time inside the United States to find another employer and arrange the necessary immigration filing.

The impact could be especially important during large corporate layoffs. Finding a new position is only part of the process for an H-1B worker; a prospective employer may also need time to prepare and file the appropriate petition.

However, the proposal should not be interpreted as meaning every worker would automatically face the same outcome. USCIS can exercise discretion in certain circumstances involving a failure to maintain status, while factors such as an individual’s I-94 expiration date, pending filings and immigration history can affect available options.

The exact consequences will become clearer only after DHS publishes the proposed regulatory language. Until then, claims about specific exceptions or final requirements should be treated cautiously.

Why Indian H-1B professionals are watching closely

The proposed change is based on immigration classification rather than nationality, but Indian professionals could feel a disproportionate practical impact because they account for the largest share of H-1B beneficiaries.

USCIS data cited in reporting on the proposal show that 399,402 H-1B petitions covering initial and continuing employment were approved in fiscal year 2024, with about 71% of approved beneficiaries born in India.

For a sponsored worker affected by a sudden layoff, the existing window can provide time to interview, receive an offer and allow a new employer to prepare a petition. Removing that buffer could make an already time-sensitive transition more difficult.

Cost can matter during these transitions as well. Employers seeking faster adjudication now face higher USCIS premium processing fees for H-1B and other eligible petitions, which took effect on March 1, 2026.

H-1B workers do not need to leave immediately under this proposal

The current rule remains the key point for workers worried by headlines suggesting the grace period has already disappeared. An eligible H-1B worker does not lose the existing protection simply because DHS is considering a new regulation.

If DHS moves forward, the proposed rule would first need to go through the federal rulemaking process. Publication of a proposal would allow the public to examine the actual language and submit comments before DHS decides whether to issue a final regulation.

Even publication would not itself eliminate the 60-day protection. A final rule would still be required before a new policy could take effect, and its text would establish the effective date and definitive requirements.

USCIS has previously explained that workers should not automatically assume they must leave the country within 60 days after employment ends. Depending on eligibility and individual circumstances, options can include changing nonimmigrant status or pursuing another qualifying immigration path. The agency’s official guidance for nonimmigrant workers following termination of employment provides details on the existing framework.

What the DHS proposal means right now

For now, this is a regulatory proposal rather than a change already imposed on H-1B workers. The distinction matters because employment termination, I-94 validity, pending applications and the timing of a new filing can produce different outcomes for different people.

Workers facing an actual job loss should therefore rely on current USCIS requirements and their individual immigration circumstances rather than treating reports about the proposal as a final rule. The most consequential details will come from the formal regulatory text if DHS proceeds with publication.

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