DHS Proposes Eliminating 60-Day Grace Period for Nonimmigrant Workers
A proposed rule would remove a critical safe harbor for sponsored workers in E, H-1B, L-1, O-1, and TN status, potentially requiring them to leave the US immediately after a layoff.
The US Department of Homeland Security (DHS) has advanced a proposal to eliminate the 60-day grace period for certain nonimmigrant workers following the end of their employment. The rule, which has cleared review by the Office of Management and Budget, 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 buffer for sponsored employees to seek new employment, change their immigration status, or arrange for departure without immediately falling out of status. Its removal would mark a return to the pre-2017 framework, where job loss could result in the immediate loss of one's legal basis to remain in the country. The change would create significant challenges for employers managing reductions in force and add pressure to accelerate hiring and sponsorship for skilled workers seeking new roles.
The proposal is not yet published in the Federal Register. Once published, it will be open to a public comment period, typically for 30 to 60 days, before a final rule can be issued. Employers and affected workers should monitor its publication and consider submitting comments on its potential impact.