US moves to scrap 60-day grace period for H-1B workers who lose jobs

The US government has begun the process of ending the 60-day grace period that allows H-1B visa holders and certain other foreign workers to remain legally in the country after losing their jobs while seeking new employment.

If the proposed change is finalized, workers could face far greater immigration uncertainty after termination, potentially forcing them and their dependents to leave the United States much sooner than under current rules, according to an NDTV report published Sunday (August 9).

The Department of Homeland Security (DHS) sent a proposed regulation to the White House Office of Management and Budget (OMB) on Thursday for review, said in the report.

However, the proposal has not yet been made public and remains under review. If cleared by the OMB, it would be published in the Federal Register, triggering the formal public-comment process.

Under rules introduced in 2017, H-1B and certain other employment-based visa holders can remain in the United States for up to 60 consecutive days after losing their jobs, or until their authorized period of stay expires, whichever comes first. During that period, they can seek a new employer, pursue a change of immigration status or make arrangements to leave the country.

The proposed rule would eliminate that grace period.

Immigration attorneys and policy experts warn that removing the protection could have significant consequences for highly skilled foreign workers, particularly those who lose their jobs unexpectedly. Without the grace period, affected workers could face the loss of lawful status and may generally have to leave the United States rather than remain in the country while seeking a new employer or changing their status.

The proposed change could have a particularly significant impact on Indian-born H-1B workers. US immigration data show that people born in India accounted for about 71% of approved H-1B beneficiaries in fiscal year 2024. More than 5.2 million people of Indian origin live in the United States, while many Indian employment-based immigrants have also spent years waiting for permanent residency.

Still, the proposed change is not yet in effect. The existing 60-day grace period remains valid while the proposal goes through the federal rulemaking process. It would need to clear multiple regulatory steps, including OMB review and publication for public comment, before any final rule could take effect.

The current grace-period provision applies not only to H-1B workers but also to employees in several other visa categories, including E-1, E-2, E-3, H-1B1, L-1, O-1 and TN, as well as their eligible dependents.

If finalized, the change could have wider implications for US industries that rely heavily on foreign skilled workers, particularly technology and other specialized sectors.