The Department of Homeland Security plans to propose ending the 60-day grace period for H-1B visa holders who lose their jobs before their visa expires, according to a regulatory filing submitted last month.
The rule, sent to the Office of Management and Budget on August 6, has not been published in the Federal Register. No timeline has been given for when it might take effect, leaving employers and workers uncertain about the future.
Under current rules, H-1B visa holders have 60 days to find new employment, change their immigration status, or leave the country if laid off. That grace period has been in place since 2016, replacing an earlier 10-day window.
If the proposal becomes law, workers who lose their jobs may need to leave the U.S. immediately. Immigration lawyers warn that without the buffer, many would struggle to secure new employment or transfer their visa to another employer in time.
“They would likely be unable to change status or change employers unless U.S. Citizenship and Immigration Services authorizes the change through an exercise of favorable discretion,” a post from law firm Ogletree Deakins stated. Such discretion is not guaranteed.
Maxine Bayley, an immigration attorney at Duane Morris, told HR Dive the change would make it harder for employers to hire laid-off H-1B workers. The labor condition application process, required for every H-1B petition, already takes at least a week—sometimes longer. Without a grace period, that time could disappear entirely.
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The proposal arrives as employers adjust to another recent change: a blocked presidential proclamation that would have added a $100,000 fee to new H-1B applications. That fee, tied up in litigation, is set to expire September 20 unless courts intervene.
For now, Bayley said, businesses can continue operating as usual. The rule must still go through public comment periods and other regulatory steps, meaning any change could be months away. Bayley also suggested the rule might revert to the old 10-day grace period. That shorter window would still be better than none, but it would leave little room for error in a system already prone to delays.
The proposal comes as the H-1B program faces ongoing scrutiny. Critics argue it displaces American workers, while supporters say it fills critical gaps in industries like tech and healthcare. The grace period has been one of the few stable aspects of the program.
What happens next depends on the regulatory process. Once published, the rule will face public comment, potential legal challenges, and possible revisions. Until then, employers and workers remain in limbo.
The only certainty is that the current system won’t remain unchanged. The days of a 60-day safety net may soon end.
Colleges and universities, many of which rely on H-1B visas for faculty and researchers, are also monitoring the situation closely. Recent delays in data submissions have already created administrative hurdles, adding to the strain on these institutions.
