The U.S. Department of Homeland Security (DHS) has officially published a Notice of Proposed Rulemaking (NPRM) in the Federal Register titled “Eliminating the Discretionary 60-day Grace Period.” This administration policy addresses the H1B 60 day grace period elimination proposal, aiming to abolish the post-employment safety net that has protected employment-based nonimmigrant visa holders since 2017.
Under current immigration regulations, foreign professionals who face job terminations or layoffs have up to 60 consecutive days (or until their authorized stay expires) to find a new sponsoring employer, request a change of status, or make arrangements to leave the country.
The proposed rule would end this grace period entirely. Consequently, an affected worker’s lawful nonimmigrant status would cease the day after qualifying employment ends. For individualized assistance on how these changes affect your status, contact our team at Najla Law Firm.
Which Visa Categories Are Impacted by the H1B 60 Day Grace Period Elimination?
While much of the media coverage surrounding the H1B 60 day grace period elimination focuses on H-1B visa holders—particularly across Silicon Valley, engineering, and consulting sectors—the proposed policy spans several major employment-based classifications and impacts dependent family members (including H-4 and L-2 status holders):
H-1B & H-1B1: Specialty occupation workers (including those from Chile and Singapore).
L-1A & L-1B: Executive, managerial, and specialized knowledge intracompany transferees.
O-1: Individuals with extraordinary ability in sciences, arts, education, business, or athletics.
TN: Canadian and Mexican professionals operating under the USMCA.
E-1, E-2, & E-3: Treaty traders, investors, and Australian specialty occupation professionals.
Learn more about key compliance requirements on our USCIS Immigration Services page.
Why DHS Is Moving Toward H1B 60 Day Grace Period Elimination
According to the published DHS proposal, the administration argues that the existing 60-day window “disconnects” a foreign worker’s legal nonimmigrant status from the specific job that originally justified their entry into the U.S.
DHS officials assert that removing the discretionary buffer will:
Restore Statutory Alignment: Directly tie immigration authorization strictly to active employment.
Reduce Administrative Burdens: Streamline processing procedures for U.S. Citizenship and Immigration Services (USCIS).
Prioritize Domestic Talent: Encourage U.S. businesses to recruit American workers to fill sudden job openings.
Impact of H1B 60 Day Grace Period Elimination on Employers and Workers
| Stakeholder | Key Strategic Implication |
| H-1B & Nonimmigrant Workers | Loss of the job-search runway following layoffs; risk of unlawful presence starting immediately post-termination. |
| Corporate HR Teams | Accelerated offboarding timelines and strict compliance deadlines to mitigate visa compliance risk. |
| Recruitment & Talent Teams | Greater difficulty retaining global talent due to increased perceived risk around U.S. work authorization. |
Current Status and What Comes Next
Public Comment Period: The publication initiates an official 60-day public comment window. Stakeholders can submit feedback on the Federal Register regarding economic impact and talent retention.
Existing Buffer Remains Active: The 60-day grace period stays in effect while the administrative rulemaking process moves forward.
Anticipated Legal Challenges: Business groups—including the U.S. Chamber of Commerce—have raised concerns about U.S. competitiveness, signaling potential Administrative Procedure Act (APA) lawsuits in federal court if a final rule is promulgated.
Employers should review offboarding protocols, while nonimmigrant visa holders should maintain active contingency plans and consult qualified immigration counsel at Najla Law Firm.
