DHS Proposes Eliminating 60-Day Post-Job Grace Period for Visa Holders
A US Department of Homeland Security proposal would end the 60-day grace period for certain nonimmigrant workers after job loss, reducing flexibility for both employees and employers.
The US Department of Homeland Security (DHS) has proposed a rule to eliminate the 60-day grace period currently available to certain nonimmigrant workers following the end of their employment. The proposal, which has cleared Office of Management and Budget review, would affect individuals in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN status.
Since 2017, this discretionary grace period has provided a critical window for sponsored employees to find new work, apply for a change of status, or make arrangements to depart the US without immediately falling out of lawful status. Sophisticated counsel and clients care because its elimination would introduce significant uncertainty and risk into workforce management. It would compress hiring timelines for new employers and complicate severance and transition planning for companies conducting layoffs. Foreign national employees facing job loss would have substantially less time to secure a new sponsored position, potentially jeopardizing their ability to remain in the US and disrupting long-term residency plans.
The proposal has not yet been published in the Federal Register. Once published, it will be open for a public comment period before a final rule can be issued.