Proposed End to 60-Day H-1B Visa Grace Period Raises Concerns

A proposed change to U.S. immigration rules could significantly reduce the time foreign workers have to respond when their employment ends, creating new risks for employers that rely on H-1B, L-1 and other skilled international talent.

The federal Office of Management and Budget (OMB) is reviewing a proposal from U.S. Citizenship and Immigration Services (USCIS) that would eliminate the 60-day grace period currently available to certain employment-based foreign workers and their dependents after the principal worker’s employment ends.

The proposal has not yet been published, and its precise provisions will not be known until it appears in the Federal Register. Until then, the existing 60-day grace period remains in effect.

Under current rules, E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN workers generally have up to 60 days — or until the expiration of their I-94 record, if earlier — to find a new employer, change immigration status, or prepare to leave the U.S. The same protection extends to their dependents.

The grace period, established by regulation in 2016 and effective in 2017, was intended to provide flexibility when employment ends, whether through a voluntary departure, termination, layoff, or restructuring. It can be used once during each authorized petition validity period.

For employers, eliminating that window could complicate workforce transitions and increase the urgency surrounding layoffs involving foreign national employees. An H-1B worker who loses a job, for example, generally needs both a willing new employer and the appropriate immigration filing to remain in the country under a new employment arrangement.

Specialty Credential: U.S. Employment Immigration

“The 60-day grace period has been one of the more sensible, humane features [of the immigration system],” said Vic Goel, managing partner at Goel & Anderson in Reston, Va.

“It exists for a simple reason: people whose employment ends through no particular fault of their own, need a realistic window to find a new sponsor, change status, or wind down their affairs in the U.S.”

Goel said eliminating the grace period could also undermine employers’ ability to compete for talent. “It cuts against the stated goal of attracting skilled talent to the U.S. economy,” he said.

The proposal also comes amid broader changes in the Trump administration’s approach to immigration processing. Goel pointed to increased scrutiny of certain filings and challenges facing foreign nationals seeking to use change-of-status options while determining their next steps.

“Pair all of this with the parallel proposal shortening the F-1/J-1 grace period from 60 to 30 days, and the pattern across this year’s activity is unmistakable: compress the windows, raise the stakes, and shift more risk onto the people and companies who have the least power to absorb it,” he said.

For now, HR and global mobility professionals should avoid changing policies based on the proposal at OMB. Instead, employers should confirm that current procedures correctly administer the existing grace period, including how its 60-day limit is calculated against the worker’s I-94 expiration date.

Companies with significant foreign-national populations should also ensure that HR, legal, and immigration teams are aligned and monitoring the rulemaking process. Once the proposal is published, employers will have an opportunity to submit comments before USCIS considers a final rule.

“This is still a proposal under review, not published text, so nothing changes today,” Goel said.