Source TOI
WASHINGTON — The U.S. Department of Homeland Security (DHS) has introduced a draft proposal to eliminate the 60-day grace period currently granted to highly skilled foreign workers following the loss of employment. If finalized, the rule would require affected non-immigrant visa holders to leave the United States immediately upon termination, unless they can establish another legal basis to remain in the country.
The proposed regulatory overhaul—which seeks to remove regulation 8 CFR 214.1(l)(2)—targets several employment-based visa categories, most notably H-1B, L-1 (intra-company transferees), and O-1 (individuals with extraordinary ability) visa holders.
Introduced in 2016, the current grace period policy acts as a vital safety net. It allows eligible foreign workers up to 60 days after being laid off to find a new employer, apply for a change in visa status (such as transitioning to a B-1/B-2 visitor visa), or get their affairs in order before departing the U.S.
In its proposal, the DHS argues that maintaining this 60-day buffer contradicts the core, employment-linked nature of these visa classifications. According to the agency, the grace period “disconnects the alien’s lawful status from the very basis of eligibility” and creates an unnecessary administrative burden for U.S. Citizenship and Immigration Services (USCIS) officers, who must continuously evaluate whether the grace period applies when processing new petitions.
The move marks a significant policy reversal and is expected to send shockwaves through the tech industry and the Indian diaspora, who make up the vast majority of H-1B visa holders.
DHS data reveals that in a recently analyzed three-year window, nearly 19,000 beneficiaries successfully leveraged the 60-day window to secure new employment and have a new petition filed on their behalf—roughly 99% of whom were H-1B workers.
The department acknowledged the severe human and economic toll the repeal would exact. Workers and their dependent families who have put down deep roots in the U.S.—including purchasing homes, paying taxes, and integrating into local communities—would be forced to uproot their lives abruptly. Without the grace period, dependents would immediately lose their legal status alongside the principal visa holder.
Immigration attorneys warn that the elimination of the rule will leave foreign professionals incredibly vulnerable to sudden layoffs, effectively ending their ability to transition to new roles without first exiting the country and seeking readmission.
The draft proposal is scheduled to be published in the Federal Register, which will trigger a 60-day public comment period. The DHS will review public feedback before issuing a final decision, meaning the 60-day grace period remains in effect for now.
