US Plans to Scrap 60-Day Grace Period for H-1B Visa Holders

H-1B Grace Period Could Be Removed

The proposed rule, published by the Department of Homeland Security, would require affected workers to leave the US as soon as their employment ends unless they have another legal basis to remain. The proposal will go through a 60-day public comment period before any final rule can take effect.

Since 2017, certain employment-based non-immigrant workers have been allowed to remain in the US for up to 60 consecutive days after their employment ends, or until their authorised stay expires, whichever is sooner.

This period gives eligible workers time to look for a new sponsoring employer, apply to change immigration status, or make arrangements to leave the country. It can also help families manage practical issues such as housing, schooling and relocation after a job loss.

Which Visa Holders Would Be Affected?

The proposed change would apply not only to H-1B workers, but also to E-1, E-2, E-3, H-1B1, L-1, O-1 and TN non-immigrants whose qualifying employment or activity ends. Dependants linked to those visa holders could also be affected.

If finalised, the rule would mean many workers could lose lawful status immediately after their employment ends, unless they have already secured another visa allowing them to remain in the US.

DHS Claims Change Would Restore Link Between Status and Employment

The Department of Homeland Security (DHS) believes the proposed change would restore the direct relationship between a person’s non-immigrant status and the job or activity that was the reason from them being allowed entry into the US. DHS also said removing the grace period would reduce administrative costs.

However, employers are concerned removing the grace period could significantly reduce the time workers and HR departments have to manage layoffs, transfers and departures.

Indian Technology Workers Could Be Among the Most Affected

The H-1B visa is used by many US companies to employ foreign workers in specialty occupations requiring technical or theoretical expertise. Technology companies rely heavily on the pathway to recruit workers from countries including India and China.

For Indian technology professionals and other skilled foreign workers, the loss of the grace period could make a sudden redundancy far more disruptive. Workers may have much less time to secure a new sponsor, prepare a transfer petition, move family members, end rental agreements or make plans to leave the US.

What Should H-1B Visa Holders Do Now?

The proposal is not yet final, and the current 60-day grace period remains  in place while the rulemaking process continues. Affected workers and employers should monitor the public comment period and any final rule closely.

Anyone concerned about their immigration position after job loss should seek professional immigration advice as early as possible, particularly before resigning, accepting redundancy, changing employer or making travel plans outside the United States.

How Can IAS Help?

If you are an H-1B visa holder, dependant or employer concerned about how the proposed rule could affect your immigration status, IAS can provide personalised legal guidance on your options.

Our immigration lawyers can advise on H-1B transfers, change of status applications, employment-based visa options and urgent next steps after redundancy or job termination. We can also help employers understand their sponsorship duties and prepare for possible changes to US work visa rules.

For expert advice on your US immigration options, contact IAS today on +1 844 312 4979 to speak with an experienced immigration lawyer.