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US to scrap 60-day grace period for H-1B workers after job loss

The proposed change seeks to remove that discretionary maximum 60-day grace period for workers in several employment-based non-immigrant categories.
12 September 2026 by
US to scrap 60-day grace period for H-1B workers after job loss
TCO News Admin
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Washington, Sept 12:The United States has proposed a new rule that could end the 60-day grace period currently available to certain foreign workers, including skilled professionals on H-1B visas, after they lose their jobs.The proposal by the US Department of Homeland Security could have a significant impact on foreign workers, including thousands of Indian technology professionals employed by American companies.

Under the existing system, eligible foreign workers who lose their jobs can generally remain in the US for up to 60 days, subject to the applicable immigration rules, giving them time to find another employer and take steps to maintain their legal status.

The proposed change seeks to remove that discretionary maximum 60-day grace period for workers in several employment-based non-immigrant categories.

The categories covered by the proposal include H-1B workers as well as certain E-1, E-2, E-3, H-1B1 and L-1 visa holders.The move comes amid continuing changes to the US immigration system and tighter scrutiny of foreign workers and employment-based visas.For H-1B employees, the grace period has been particularly important because losing a job can otherwise leave workers with very limited time to secure new employment or make arrangements to leave the country.Indian professionals form one of the largest groups of H-1B visa holders, particularly in the technology sector. 

Any reduction in the time available after job loss could therefore have a direct impact on Indian workers employed by US technology companies and other businesses.The proposed rule is expected to attract attention from technology companies, immigration lawyers and foreign workers, who are likely to assess its implications for recruitment, layoffs and visa transfers.The proposal is part of the administration’s broader effort to revise immigration rules governing foreign workers and employment-based visa programmes.

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US to scrap 60-day grace period for H-1B workers after job loss
TCO News Admin 12 September 2026
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