The Department of Homeland Security (DHS) has proposed eliminating the discretionary 60-day grace period currently available to certain employment-based nonimmigrant workers after their employment ends. The proposal would affect workers in several classifications, including H-1B, H-1B1, L-1, O-1, E-1, E-2, E-3, and TN classifications. If this gets adopted, it will have a major impact on the time the affected worker will have to act after being laid off or the worker’s departure. Yet, it is not going to be the case because the H-1B grace period or grace period for other classified workers are active at the moment. This change will only be possible once the rule is passed through the federal rulemaking mechanism.  

The proposal, titled “Eliminating the Discretionary 60-day Grace Period,” was submitted by DHS and U.S. Citizenship and Immigration Services (USCIS) for White House regulatory review on August 6, 2026. The Office of Information and Regulatory Affairs (OIRA) completed its review on August 27, 2026. The regulatory record lists the measure as a proposed rule under RIN 1615-AD22. Although initial reports focused primarily on H-1B workers, subsequent updates indicate that the proposed rule would also apply to certain H-1B1, L-1, O-1, E-1, E-2, E-3, and TN workers. 

What Is the 60-Day Grace Period? Is It Just the H-1B Grace Period, or Are Other Workers Affected? 

The 60-day grace period provides certain employment-based nonimmigrant workers with additional time to address their immigration status when their employment ends. This grace period lasts until the end of their authorized validity period, whichever is shorter.

DHS implemented the 60-day grace period through regulations that took effect in 2017. This provided certain nonimmigrant workers additional time following the end of employment to seek new employment, pursue another immigration option, or prepare for departure. An employee may search for a different job or other immigration alternatives during this time.

The 60-day grace period is not limited to H-1B workers. The grace period can apply to several employment-based nonimmigrant categories, like H1B, H-1B1, L-1, O-1, E-1, E-2, E-3, and TN workers. For an H-1B worker, for example, the additional time may allow the individual to identify a new employer and coordinate the filing of a qualifying H-1B petition. Other eligible workers may similarly use the period to seek new employment or evaluate other lawful immigration options.

Therefore, the proposed elimination of the grace period could have implications beyond the H-1B program. The impact on each worker will depend on the applicable visa category, individual circumstances, and the final rule adopted by DHS.

What Is DHS Proposing?

The Department of Homeland Security is proposing to eliminate the discretionary regulatory 60-day grace period currently available to certain employment-based nonimmigrant workers, including H-1B, H-1B1, L-1, O-1, E-1, E-2, E-3, and TN workers. 

The proposal is significant because the grace period currently provides a defined period of flexibility after employment termination. Without it, workers could face much greater pressure to take immediate action when their employment ends.

The precise impact will depend on the final regulatory language and any implementation provisions adopted by DHS. At this stage, the government has not finalized the rule. Therefore, H-1B workers should not assume that the current 60-day period has already been eliminated.

The regulatory record confirms that the proposal remains at the proposed-rule stage. The official OIRA record confirms RIN 1615-AD22, receipt on August 6, 2026, proposed-rule stage, and the August 27, 2026 “Consistent with Change” conclusion. Completion of OIRA review does not mean that the proposed rule has been finalized or taken effect.

Why Does the Proposed Change Matter?

For many employment-based nonimmigrant workers, losing a job creates an immediate immigration concern.

Because H-1B employment and status are subject to the terms of the applicable H-1B petition and immigration regulations. Termination of employment can create an immediate immigration-status concern. 

The current grace period gives workers some breathing room. They can use that time to contact prospective employers, work with immigration counsel, and evaluate their options.

Removing that period could make the transition much more difficult.

A worker in one of the affected classifications who loses a job may need to act quickly. Finding a new employer can take time. The new employer may also need to complete the required petition process. Other workers may consider changing to another nonimmigrant status or pursuing a different immigration pathway.

The loss of a defined grace period could make these decisions more urgent.

How Could Affected Workers Be Affected?

If the proposal becomes final, workers in the affected classifications could have less flexibility following an unexpected termination of employment.

Workers who are laid off should promptly determine whether they have another basis to remain lawfully in the United States. They should also explore what immigration options may be available to them. They may also need to coordinate quickly with a prospective employer and immigration counsel.

The impact could be particularly significant for workers who have been in the United States for several years. Some may have families, ongoing green card cases, leases, school commitments, or other ties that make an immediate departure difficult.

The proposal could also affect workers who are preparing to transition to another immigration category. However, the practical impact would depend on the individual’s circumstances and the requirements of the alternative category. Eliminating the current grace period could reduce the time available to prepare and file an appropriate immigration application or petition

At the same time, the proposal would not necessarily mean that every H-1B worker must depart the United States immediately upon termination of employment. The consequences would depend on the individual’s immigration circumstances and whether another lawful basis for remaining in the United States is available. Other immigration options may be available depending on the individual’s circumstances.

What Could This Mean for Employers?

Employers could also face greater pressure if the proposal becomes final.

When an employee in an affected nonimmigrant classification is terminated, the worker may have very limited time to identify another employer or immigration solution. Employers seeking to hire any such workers could therefore need to move quickly when recruiting individuals affected by a termination.

For employers, the proposed change could make timing and coordination more important when hiring  workers whose prior employment has ended. Companies may need to coordinate more closely with immigration counsel when hiring or terminating employees.

For employers, understanding the timing of employment-based petition transfers and other immigration filings could become even more important.

Has the 60-Day Grace period Been Eliminated?

No. The 60-day grace period has not been eliminated. The DHS proposal remains at the proposed-rule stage and is not currently effective.

The Department of Homeland Security has proposed eliminating the 60-day grace period, but the proposal has not yet become a final rule. The proposed rule was subsequently published in the Federal Register on September 11, 2026, and is now subject to a public-comment period. The rule has not yet been finalized and is not currently effective. 

The existing regulatory framework therefore remains important for H-1B workers at this time.

The proposal is currently in the public-comment and rulemaking stage. Following publication in the Federal Register, DHS is accepting public comments on the proposed changes. The agency will review and consider those comments before deciding whether to move forward with a final rule. If DHS issues a final rule, it would also establish the effective date and any applicable implementation details.

The timing and substance of any final rule remain uncertain.

What Should Affected Workers Do Now?

Workers in the affected classification should not panic based solely on the proposal.

The current 60-day grace period has not been eliminated. However, workers should understand their immigration options before an unexpected employment termination occurs.

Those facing a layoff should speak with an experienced immigration attorney as soon as possible. Depending on the circumstances, options may include an H-1B change of employer, a change to another nonimmigrant status, adjustment of status, or departure from the United States.

Workers with pending or potential employment-based green card cases should also review how a job change could affect their immigration strategy.

What Happens Next?

The proposed removal of the 60-day grace period for certain employment-based nonimmigrant workers represents an important potential change in U.S. employment immigration policy. 

The 60-day grace period remains available under the existing regulations, subject to applicable requirements and agency discretion. The Department of Homeland Security has published the proposal, and it is now in the public-comment and rulemaking stage. The proposal is not yet a final rule and is not currently in effect.

As the rulemaking process continues, DHS will review public comments before deciding whether to issue a final rule. If DHS moves forward, the final rule would address the effective date and any applicable implementation provisions.

For now, H-1B employers and affected workers should continue to monitor developments and understand how the proposal could affect their immigration options. If finalized, the elimination of the grace period could make employment transitions more time-sensitive for workers in the affected classifications.

The key takeaway is that the 60-day grace period remains in place at present, but its future could change if DHS finalizes the proposed rule.