USCIS Proposes to Eliminate the 60-Day Grace Period for H-1B, L-1, TN, O-1, and E Visa Holders

On September 11, 2026, the U.S. Department of Homeland Security (DHS) published a proposed rule that could significantly impact foreign nationals working in the United States under several employment-based nonimmigrant visa categories.

If finalized, the change would affect individuals in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN status, as well as their dependent family members.

What Is the Current 60-Day Grace Period?

Under current regulations, certain foreign workers who lose their employment before the expiration of their authorized stay may remain in the United States for up to 60 consecutive days, or until the end of their authorized validity period, whichever is shorter. During this period, many workers use the time to:

• Secure a new employer and file a change-of-employer petition;
• Change to another nonimmigrant status;
• Pursue permanent residence options; or
• Prepare for departure from the United States.

The grace period was introduced in 2017 as part of broader efforts to improve workforce mobility for highly skilled foreign nationals and provide flexibility for U.S. employers.

What Is DHS Proposing?

DHS now proposes to remove the regulation found at 8 C.F.R. § 214.1(l)(2), which created the discretionary grace period. According to the agency, the current rule improperly disconnects a worker’s lawful immigration status from the employment relationship that serves as the basis for that status.

DHS argues that most employment-based nonimmigrant classifications are fundamentally tied to a specific employer, petition, or qualifying activity. Therefore, once that employment ends, the agency believes the worker should generally no longer be considered to be maintaining lawful status.

If the proposed rule is implemented, affected individuals would generally be required to depart the United States immediately upon cessation of the qualifying employment or activity, unless they have another independent basis to remain lawfully in the country.

DHS’s Rationale

The agency provides two primary justifications for the change.

1. Aligning Regulations with Statutory Requirements

DHS contends that employment-based nonimmigrant status exists only because the individual is performing the employment or activity that qualified them for visa classification. The agency believes that permitting individuals to remain in status after employment ends is inconsistent with the statutory framework governing these categories.

2. Reducing Administrative Burden

DHS also states that the grace period creates additional adjudicative complexity for USCIS. Officers must often evaluate whether the grace period remains available when reviewing extension, change-of-status, adjustment-of-status, or employer-sponsored petitions filed after a worker’s employment has ended. Eliminating the grace period would reduce these administrative burdens.

Potential Impact on Foreign Workers

The practical consequences of this proposal could be substantial.

For H-1B, TN, L-1, O-1, and E visa holders, the loss of the 60-day grace period would significantly reduce flexibility following layoffs, workforce reductions, resignations, or unexpected terminations. Instead of having up to two months to identify alternative immigration options, individuals could face immediate pressure to depart the United States upon termination.

This may be particularly challenging in industries where recruiting processes routinely take several weeks or longer. Workers seeking a transfer to another employer, pursuing a change of status, or evaluating permanent residence strategies would have far less time to act.

Dependent spouses and children could also be affected because the proposal would remove the grace period protections currently available to dependent family members.

Potential Impact on Employers

U.S. employers could also encounter difficulties if the rule becomes final.

The current grace period often facilitates the recruitment of foreign workers who have recently lost employment but remain lawfully present in the United States. Without the grace period, employers may face tighter timelines for identifying candidates, preparing petitions, and securing work authorization.

The proposal could also increase disruption for employers engaged in mergers, acquisitions, restructurings, or reductions in force involving foreign national employees.

Comment Period

DHS is accepting public comments on the proposed rule through November 10, 2026. Stakeholders, including employers, industry groups, immigration practitioners, and affected foreign nationals, have an opportunity to submit comments addressing the legal, economic, and practical implications of eliminating the grace period.

Key Takeaway

The proposed elimination of the 60-day grace period represents one of the most consequential employment-based immigration policy changes proposed in recent years. If finalized, foreign nationals in H-1B, TN, L-1, O-1, and E classifications could lose a critical safeguard that currently allows time to pursue new employment or alternative immigration strategies following a job loss. Employers that rely on foreign talent may also face increased recruitment and workforce-planning challenges.

At this stage, the rule remains a proposal and has not yet taken effect. Employers and foreign nationals should closely monitor developments and consider submitting comments before the November 10, 2026 deadline.