The United States has proposed doing away with the discretionary 60-day grace period that currently gives certain foreign workers time to look for a new job after their employment ends. The proposal could have major implications for skilled foreign professionals, including thousands of Indian workers employed in the US on H-1B visas. Under the proposed rule, foreign nationals whose employment comes to an end could lose the additional time currently available to find another employer or make arrangements to leave the country. If the proposal is eventually implemented, workers whose visas remain valid but whose qualifying employment has ended may have to leave the US immediately unless they have another independent legal basis to stay.
What has the US proposed?
The Department of Homeland Security (DHS) has proposed a rule titled “Eliminating the Discretionary 60-day Grace Period”. The proposal is scheduled to be published in the Federal Register on Friday, after which members of the public will have 60 days to submit their comments.
The proposed change would remove the discretionary maximum 60-day grace period currently available to certain nonimmigrant workers and their dependents after their employment ends. The categories covered include E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN visa holders.
The DHS said the proposed change is intended to re-establish a closer link between a foreign national’s immigration status and the employment or activity for which the person was admitted to the United States.ย “This proposal restores a direct relationship between an alien’s nonimmigrant status and the specific employment or activity that formed the basis of his or her admission or grant of status in the United States and reduces administrative burden,” the DHS said.
Why H-1B workers are particularly affected
The H-1B programme allows US employers to hire foreign professionals for speciality occupations requiring theoretical or technical expertise. The programme is widely used by technology companies to recruit skilled workers from countries including India and China.
For an H-1B worker who suddenly loses a job, the existing grace period can provide crucial time to secure another qualifying position, file the necessary paperwork or make arrangements to leave the country.
The proposed rule could significantly alter that situation. If the grace period is eliminated, losing a job could mean that the worker has to leave the US without the additional window that currently allows them to search for another employer from within the country.
What happens if an H-1B worker loses their job?
At present, the 60-day provision can give an affected worker time to seek employment with another company, change their immigration status where eligible or prepare to depart the United States.ย The grace period applies when employment ends voluntarily as well as when the worker is involuntarily terminated.
If the proposed rule becomes final, a worker who loses employment would generally need to leave the US unless they have another valid authorisation allowing them to remain. If they subsequently secure a job with another American employer, they could have to pursue the relevant visa process from outside the country, including applying through a US embassy or consulate where required.
Rule dates back to 2016
The grace-period provision was introduced during the Obama administration in 2016. Its stated purpose was to provide greater job portability, stability and flexibility for highly skilled foreign workers.ย The provision also sought to make it easier for American employers to recruit and transition foreign professionals by giving affected workers limited time between jobs without requiring them to immediately depart the country.ย The Trump administration’s latest proposal would reverse that policy for the categories covered by the rule.
Could workers face deportation proceedings?
Immigration law firm Fragomen has pointed out another potential consequence of removing the grace period. According to the firm, some foreign nationals affected by the change could receive Notices to Appear, commonly known as NTAs.ย An NTA is the government’s initial document for starting formal removal proceedings against a person.
The possibility could be more significant for certain nonimmigrant categories in which employers are required to promptly notify the government when a foreign worker’s employment ends. Fragomen specifically identified H-1B, O-1 and P categories in this context.ย This means the proposed change could have consequences beyond simply shortening the time available to find another job.
How many workers could be affected?
DHS estimates that the number of primary beneficiaries who either experienced employment cessation or voluntarily changed employers stood at 65,752 in 2025. The figure reached a high of 80,034 in fiscal year 2023 and fell to a low of 40,959 in fiscal year 2021.ย Between fiscal years 2021 and 2025, a new petition for nonimmigrant workers was submitted by a new employer for 5.77 per cent of the 328,758 primary beneficiaries who either lost employment or changed employers.
What is the H-1B visa limit?
The US immigration system currently provides for 65,000 H-1B visas each year under the regular cap. An additional 20,000 visas are reserved for foreign nationals who have obtained advanced degrees from US institutions of higher education. The programme remains particularly important for the technology sector, which relies heavily on foreign professionals for specialised roles. For Indian professionals, any change to the rules governing H-1B employment can therefore have a direct impact on job security and the ability to remain in the United States after an unexpected termination.
(With inputs from PTI)
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