US May End 60-Day Grace Period For H-1B, Other Visa Holders: What Changes For Foreign Workers

The United States (US) is considering a major change to immigration rules that could affect foreign workers who lose their jobs while holding certain employment-based non-immigrant visas. A proposal to remove the existing 60-day grace period is currently being reviewed by the White House Office of Management and Budget (OMB).

US May Scrap 60-Day Grace Period For H-1B, Other Foreign Workers: What Could Change

The proposal has not been finalised and has not yet become a rule. Full details of the proposed changes have also not been made publicly available. However, if the regulation is eventually approved, eligible foreign workers could have significantly less time to find a new job or make alternative immigration arrangements after their employment ends.

What Could Change Under Proposed Rule?

Under the existing framework, certain foreign workers can remain in the US for up to 60 consecutive days after their employment is terminated, provided their authorised period of stay does not end earlier. The provision was introduced in 2017 to give skilled foreign workers additional flexibility when they unexpectedly lose employment.

The grace period can be particularly important for workers on employment-based visas because it gives them time to look for another employer, pursue a change of status or explore other lawful options to remain in the country.

If the proposed change takes effect, that 60-day window could be eliminated. Workers whose immigration status is tied to their employment could then face pressure to leave the US soon after their jobs end, unless they qualify for another immigration option or receive relief through an intervention by US Citizenship and Immigration Services (USCIS).

Which Visa Holders Could Be Affected?

The proposed change would not be limited to H-1B workers. The existing grace-period provision applies to several categories of non-immigrant workers and their eligible dependants. These include holders of E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN visas. Dependants associated with these visa categories are also covered by the current provision.

For workers in these categories, losing a job can already create uncertainty over their immigration status. Removing the grace period could make the transition considerably more difficult, particularly for professionals who need time to secure a new employer and complete the necessary immigration procedures.

How The Existing 60-Day Grace Period Works

The current provision allows eligible workers to stay in the US for up to 60 days after their employment ends, or until the end of their authorised period of stay, whichever comes first.

The rule was introduced in 2017 as part of measures designed to provide greater flexibility to non-immigrant workers facing an unexpected loss of employment. During the permitted period, workers can look for a new job and, where eligible, take steps towards changing employers or pursuing another immigration status.

For H-1B employees, the provision can be particularly valuable because changing employers generally requires immigration paperwork and compliance with specific requirements. The additional time can therefore help workers avoid an immediate disruption to their lawful stay.

What Happens If This Visa Rule Is Finalised?

If the proposed regulation is approved and ultimately takes effect, affected workers could lose the current 60-day buffer following the termination of employment.

This could mean that workers and their dependants have to make immigration arrangements much sooner than they currently do. Those unable to secure another lawful basis to remain in the US could face the possibility of leaving the country.

However, the proposal is still under review and the final outcome remains uncertain. The OMB review is part of the federal regulatory process, and the proposal would have to go through the required steps before any change could become binding.

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