Laid-off H-1B workers may lose the 60-day grace period under US' new proposal

The United States is reviewing a proposal that could eliminate the 60-day grace period currently available to H-1B visa holders and certain other foreign workers after they lose their jobs, potentially requiring them to leave the country immediately if their employment ends. The proposed rule has been sent by the Department of Homeland Security (DHS) to the White House Office of Information and Regulatory Affairs (OIRA) for review, a key step in the federal rule-making process. The proposal is still under review and has not yet taken effect.

What is the 60-day grace period?

Under the existing system, certain non-immigrant workers who lose their jobs can remain in the US for up to 60 consecutive calendar days, or until the end of their authorised validity period, whichever is shorter. The window gives workers time to find another employer willing to sponsor them, seek a change in immigration status or make arrangements to leave the country. The provision is particularly important for H-1B professionals because their legal status in the US is generally tied to their employment.

Proposal could scrap the window

The DHS proposal under consideration seeks to eliminate the grace period, although the complete details of the planned regulation have not yet been made public. The rule, identified as RIN 1615-AD22, was submitted to OIRA for review on Thursday. If ultimately implemented in its reported form, losing a job could immediately place affected foreign workers in a far more precarious immigration position, sharply reducing the time available to secure another employer.

H-1B workers could be among hardest hit

The proposal could have major implications for H-1B workers, including a large number of Indian professionals employed in the US technology sector. Recent rounds of layoffs across technology and other industries have already highlighted the difficulties faced by foreign workers whose immigration status is linked to their jobs. At present, the 60-day period provides laid-off H-1B workers with a limited opportunity to secure another position and have a new employer file the required petition. Removing that window could substantially increase the pressure on workers to secure another job before their existing employment formally ends.

Other visa categories also covered

The existing grace-period provision is not restricted to H-1B visa holders. It applies to workers in several non-immigrant classifications, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN categories, as well as certain dependants. Consequently, any decision to eliminate the provision could affect a much broader pool of foreign professionals working legally in the United States.

Change has not taken effect yet

Importantly, the reported move remains a proposal and the existing 60-day framework has not been abolished at this stage. The White House review is part of the regulatory process, and further details are expected once the proposed rule advances. Until any new regulation is finalised and becomes effective, affected foreign workers continue to operate under the existing rules.

Indians closely watching proposed change

Any tightening of the grace-period rules is likely to be closely watched in India because Indian nationals constitute a significant part of the H-1B workforce, particularly in technology and other specialised professions. For workers facing layoffs, the 60-day window has served as an important buffer between the loss of one job and securing another employer-sponsored position. Eliminating it could make a sudden job loss carry immediate immigration consequences alongside the financial and professional impact.