DHS Proposes to Eliminate the USA Immigration 60-Day Grace Period for H-1B, L-1, and Other Work Visa Holders

A Major Rule Change That Could Affect Thousands of Work Visa Holders

If you are currently living and working in the United States on an H-1B, L-1, E-1, E-2, E-3, O-1, H-1B1, or TN visa, a proposed federal rule could dramatically change what happens if you lose your job. The U.S. Department of Homeland Security (DHS) has issued a Notice of Proposed Rulemaking (NPRM) that would eliminate the discretionary 60-day grace period that currently protects many nonimmigrant workers when their employment ends.

This proposed rule, published in the Federal Register at 91 FR 57807 on September 11, 2026, would remove a critical safeguard that has given thousands of skilled workers breathing room to find new employment, adjust their status, or make arrangements to depart the United States in an orderly fashion. The public comment period is open through November 10, 2026, giving immigrants, employers, and advocates a narrow window to make their voices heard.

Understanding what this rule means — and what you should do right now — is essential if you are on any of the affected visa categories.

What Is the 60-Day Grace Period and Why Does It Matter?

Under current immigration regulations, certain nonimmigrant workers are afforded a 60-day grace period after their employment ends involuntarily or voluntarily. This means that if you are laid off, your company closes, or your job ends for any reason, you do not immediately fall out of legal immigration status. Instead, you have up to 60 days to take one of several actions:

• Find a new employer willing to sponsor a new or amended visa petition
• Change to a different nonimmigrant status (such as a dependent visa or student visa)
• Apply to adjust status to lawful permanent resident if eligible
• Make arrangements and depart the United States

This 60-day buffer exists because immigration bureaucracy takes time. Finding a new employer, gathering paperwork, and filing petitions cannot happen overnight. Without this grace period, a worker who loses their job on a Monday could technically be in violation of their immigration status by Tuesday — with no time to act legally.

This protection has been particularly important in the technology industry, where layoffs can be sudden and widespread. Workers on H-1B visas — who make up a large share of the tech workforce — have relied on this grace period to navigate job transitions without jeopardizing their long-term immigration plans, including pending green card applications.

Which Visa Categories Would Be Affected?

DHS’s proposed rule would eliminate the grace period for workers in the following nonimmigrant visa categories:

• H-1B and H-1B1 — Specialty occupation workers, including those in technology, finance, engineering, healthcare, and other professional fields
• L-1 — Intracompany transferees (managers, executives, and specialized knowledge workers)
• E-1 — Treaty traders
• E-2 — Treaty investors
• E-3 — Australian specialty occupation workers
• O-1 — Workers of extraordinary ability or achievement in sciences, arts, education, business, or athletics
• TN — Canadian and Mexican professionals under the United States-Mexico-Canada Agreement (USMCA)

Together, these categories encompass hundreds of thousands of workers and their families currently in the United States. H-1B alone accounts for the largest share of temporary skilled workers in the country. Many of these individuals also have dependent spouses and children on H-4, L-2, or E-dependent visas, who could also be impacted.

What Would Happen If This Rule Is Finalized?

If DHS finalizes this rule and eliminates the 60-day grace period, the consequences for workers would be swift and severe:

• Immediate loss of authorized stay: The day your employment ends could be the day your legal status expires. Even a single day of overstay can have serious consequences, including bars on future immigration benefits.
• No time to find new employment: Employer-sponsored visa processes involve Department of Labor prevailing wage determinations, USCIS petition filings, and other steps that can take weeks. Without the grace period, workers may be unable to stay legally while a new employer completes the process.
• Disruption to pending green card cases: Workers in the middle of employment-based green card processes — often years-long journeys — could see their entire immigration journey derailed if they cannot maintain legal status between jobs.
• Family impact: Dependent spouses and children tied to the primary worker’s visa could also lose their status simultaneously, complicating family stability and children’s schooling.
• Difficulty making an orderly departure: Even people who plan to leave the U.S. need time to wrap up leases, move belongings, and arrange travel. Eliminating the grace period removes the ability to do so in compliance with immigration law.

Immigration attorneys have widely noted that this proposal, if enacted, would represent one of the most significant rollbacks of worker protections in recent immigration history. Critics argue the rule treats workers as if their immigration status is solely defined by their paycheck — rather than by their lawful presence in the country.

What You Should Do Right Now

If you are currently on H-1B, L-1, E, O-1, or TN status, here is what immigration professionals recommend:

• Check your current I-94 and authorized period of stay: Know exactly when your current authorized stay expires. Your status is tied to your employer’s petition approval, not the full I-94 end date in many cases.
• Consult an immigration attorney immediately if your job is at risk: Do not wait until after a layoff to seek legal advice. An attorney can help you understand your options before your employment ends.
• Consider a backup plan: If your spouse is on an H-4 EAD and working, understand how their status connects to yours. Explore whether any family member qualifies for a different visa category.
• Stay informed about the rulemaking process: This is still a proposed rule — not a final one. The public comment period gives you and your employer an opportunity to weigh in.
• Submit a public comment by November 10, 2026: You can submit comments on regulations.gov by searching for DHS Docket No. USCIS-2026-0364. Your comment, as well as those from employers and organizations, can influence the final rule.

How to Submit Your Public Comment

Every comment submitted during a federal rulemaking process matters. DHS is legally required to review and respond to substantive public comments before finalizing any rule. Here is how to make your voice heard:

• Visit regulations.gov and search for Docket No. USCIS-2026-0364
• Click “Comment” and share your personal or professional experience with the grace period
• Explain how the elimination of the grace period would affect you, your family, or your employees
• Comments must be submitted by November 10, 2026

Immigration advocacy organizations like the American Immigration Lawyers Association (AILA) are closely tracking this proposed rule and are expected to file detailed comments on behalf of the immigration community. Employers who rely on foreign national workers may also want to submit comments explaining the operational impact this rule would have on their businesses.

Conclusion: Act Now, Stay Informed

The DHS proposal to eliminate the 60-day grace period is one of the most consequential immigration policy changes proposed in recent years for employment-based nonimmigrant workers. If finalized, it would remove a critical protection that hundreds of thousands of skilled workers and their families depend on every year.

If you are on H-1B, L-1, O-1, E, or TN status, do not wait to understand your options. Consult with a qualified immigration attorney, talk to your employer’s HR or legal team, and consider submitting a public comment before the November 10, 2026 deadline.

For full details on this proposed rule and legal guidance for practitioners, visit the American Immigration Lawyers Association at aila.org or consult a qualified immigration attorney in your area.