U.S. Immigration Law Update
Could DHS Eliminate the 60-Day Grace Period for Nonimmigrant Workers?
What H-1B, L-1, O-1, E and TN professionals—and their employers—should know about the newly reported proposal.
Recent reports indicate that the U.S. government is considering a regulation that could eliminate the discretionary grace period of up to 60 days currently available to certain employment-based nonimmigrants after their employment ends. If adopted, the change could dramatically reduce the time a terminated worker has to secure a new sponsor, request another status, or arrange departure from the United States.
What does the current 60-day rule provide?
Under the current regulation, the Department of Homeland Security may consider a worker—and qualifying dependents—to have maintained valid nonimmigrant status after employment ceases for up to 60 consecutive calendar days, or until the end of the worker’s authorized validity period, whichever is shorter.
The provision generally covers the following classifications:
| Classification | Typical beneficiary | Current maximum grace period after employment ends |
|---|---|---|
| E-1 / E-2 / E-3 | Treaty traders, treaty investors and eligible Australian specialty-occupation workers | Up to 60 days, or until the authorized stay expires |
| H-1B / H-1B1 | Specialty-occupation professionals | Up to 60 days, or until the authorized stay expires |
| L-1 | Intracompany managers, executives and specialized-knowledge employees | Up to 60 days, or until the authorized stay expires |
| O-1 | Individuals of extraordinary ability or achievement | Up to 60 days, or until the authorized stay expires |
| TN | Eligible Canadian and Mexican professionals | Up to 60 days, or until the authorized stay expires |
The grace period is not an automatic 60-day extension of every I-94. It is discretionary, it cannot extend beyond the existing authorized stay, and it is generally available only once during each authorized validity period. DHS may shorten or deny it based on the facts of a particular case.
Nor does the grace period itself authorize employment. A person may remain in the United States while pursuing an available immigration strategy, but may work only if separately authorized. Certain H-1B workers may benefit from H-1B portability after a qualifying new-employer petition is properly filed; other classifications generally require approval before work begins.
What is the government reportedly considering?
News reports published in early August 2026 state that the administration is reviewing a proposal that could remove the regulatory 60-day grace period for certain nonimmigrant workers whose employment ends. If a future rule deletes this protection without replacing it, a worker’s ability to remain in status after termination could become tied much more closely to the last day of qualifying employment.
That could mean a worker would need to have another filing strategy ready immediately, depart promptly, or ask USCIS to excuse a late filing or lapse in status under the agency’s limited extraordinary-circumstances authority. Such relief is discretionary and should never be assumed.
What is not yet known?
Until the government publishes the actual text, several critical questions have no reliable answer:
- Whether DHS intends to eliminate the period entirely or reduce its length;
- Which classifications and dependent family members would be covered;
- Whether workers already in the United States would be protected by a transition or grandfathering provision;
- How DHS would define the end of employment, including paid notice, garden leave, severance and bona fide leave;
- Whether exceptions would exist for layoffs, employer closure, medical emergencies or other circumstances beyond the worker’s control;
- When any final rule would take effect; and
- Whether the rule would face litigation or an implementation delay.
For these reasons, statements that affected workers must “leave immediately” are premature while the current regulation remains unchanged.
Why would elimination of the grace period matter?
1. Employer changes could become harder
The current period gives a terminated professional a limited opportunity to locate a new sponsor and prepare a petition. Without that buffer, even a strong new employment offer might arrive after the worker has fallen out of status, potentially preventing a clean in-country extension or change of employer.
2. Change-of-status planning could be compressed
A worker may presently consider a timely request to change to a dependent classification, F-1 student status, B-1/B-2 visitor status, or another classification for which the person qualifies. Removing the grace period could require the filing to be submitted before employment ends—a difficult task when a layoff is sudden.
3. Families could be affected together
The principal worker’s spouse and children generally derive their status from the principal classification. A loss of the principal’s protection can therefore affect the entire family, including school attendance, employment authorization held by a spouse, housing and travel plans.
4. International travel and consular processing may become necessary
If USCIS cannot approve an extension or change of status because the worker is no longer maintaining status, the individual may need to depart and seek a visa or admission abroad. That can add appointment delays, travel costs, security screening and uncertainty.
5. Termination dates would require even greater precision
The immigration consequences usually turn on the cessation of qualifying employment, not simply the date through which severance is paid. A severance payment does not necessarily preserve nonimmigrant status. Employers and workers should document the last day of active employment, payroll treatment and any bona fide notice or leave period accurately.
The practical lesson is not to panic—it is to shorten the planning timeline and treat the final day of employment as a potentially critical immigration deadline.
What options may exist after a job ends under the current rule?
The correct strategy is highly fact-specific, but possible options can include:
- A petition by a new employer. For eligible H-1B workers, portability may permit employment to begin once USCIS receives a qualifying petition. Other categories have different rules.
- A change to another nonimmigrant status. Depending on eligibility and timing, this may include dependent, student or visitor status. Filing a request does not necessarily authorize work.
- An adjustment-of-status strategy. A person with an available immigrant visa and a proper basis may be able to file or rely on a pending Form I-485, subject to the applicable rules.
- Employment authorization based on compelling circumstances. A narrow option may exist for certain approved employment-based immigrant petition beneficiaries who satisfy the regulatory requirements.
- Departure and consular processing. In some cases, leaving the United States and pursuing a visa or readmission abroad is the safest compliant path.
A pending application may create a period of authorized stay without granting the requested status or employment authorization. The consequences of approval, denial, travel and overlapping filings should be reviewed before selecting a strategy.
How can nonimmigrant workers prepare now?
- Check the Form I-94. The I-94 expiration date—not the visa stamp—is generally the key date governing the authorized stay inside the United States.
- Keep a complete immigration file. Preserve approval notices, petitions, LCAs, pay records, job descriptions, diplomas, evaluations, passports and prior I-94 records.
- Create a termination contingency plan. Identify potential sponsors and alternative classifications before a layoff occurs.
- Seek advice immediately after notice. Do not wait until day 59. Petition preparation, credential review and employer signatures require time.
- Do not work without authorization. A grace period protects status only to the extent recognized by DHS; it does not independently extend work permission.
- Monitor official sources. Rely on the Federal Register, DHS and USCIS—not social-media summaries—for the final text and effective date.
What should employers consider?
Employers that recruit or retain foreign professionals should review offboarding and sponsorship procedures now. Practical measures include giving immigration counsel early notice of an anticipated termination when legally appropriate, identifying the precise last day of qualifying employment, preserving petition records, preparing new-hire filings promptly and avoiding statements that severance automatically preserves immigration status.
Prospective employers may also need faster internal approvals. If the grace period disappears, delays in obtaining a job description, prevailing-wage information, corporate signatures or filing fees could determine whether a worker can pursue the case from inside the United States.
Frequently asked questions
Has the 60-day grace period already been abolished?
No. As of the date of this article, 8 C.F.R. § 214.1(l)(2) remains the governing rule. Reports of a proposal do not themselves amend the Code of Federal Regulations.
Does every terminated H-1B worker receive exactly 60 days?
No. The period is discretionary and lasts no longer than the remaining authorized validity period. Someone whose I-94 expires ten days after termination cannot rely on a 60-day period.
Can I work during the grace period?
Not merely because the grace period exists. Employment requires a separate legal basis. H-1B portability may help some workers after a qualifying petition is filed, but the requirements must be assessed individually.
Does severance extend my status?
Not necessarily. Continued payments after the employment relationship ends do not automatically extend qualifying employment. The underlying facts and employment documents matter.
Should I file a B-2 change of status as a precaution?
Not without evaluating the consequences. Visitor status does not authorize employment, and the timing of later employer petitions, travel and consular processing should be considered as part of a coordinated plan.
What should I do if I have just been laid off?
Confirm your last day of employment and I-94 expiration, stop any unauthorized work, gather your immigration records and obtain individualized advice promptly. Do not assume that online reports have already cancelled the current grace period.
Facing a layoff or planning a change of employer?
Arif Law Offices, P.C. advises professionals, entrepreneurs and U.S. employers on H-1B, L-1, O-1, E and other immigration strategies. Early review can preserve options that may disappear with delay.
Request a consultationcontact@ariflawofficespc.com · +1 949-994-6100