USCIS Moves to End 60-Day Grace Period for Nonimmigrant Workers

Under current immigration regulations, workers in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN status may benefit from a discretionary period of up to 60 days following the cessation of the employment on which their nonimmigrant status is based. Qualifying dependents are also covered by the provision.

The grace period can last for up to 60 consecutive days or until the end of the worker’s existing authorized validity period, whichever is shorter. It is available once during each authorized validity period and DHS retains discretion to shorten or eliminate the period in individual cases.

During that period, an affected worker may potentially secure new qualifying employment, have a new employer file an immigration petition, apply for a change or extension of status or make arrangements to leave the US. The grace period does not, in itself, provide employment authorization.

What has USCIS proposed?

DHS and USCIS have submitted a proposed regulation expressly titled “Eliminating the Discretionary 60-day Grace Period.”

The proposal was submitted to the Office of Information and Regulatory Affairs for regulatory review under Executive Order 12866 on August 6, 2026. The OIRA record identifies the action as a proposed rule and states that there is no legal deadline for completion of the review.

No proposed regulatory text has yet been published.

The title indicates an intention to remove or materially alter the existing grace-period protection, but it does not establish what would replace it. It is not yet known whether USCIS intends to remove the period entirely, introduce a shorter period, retain narrower discretionary protection or apply different provisions to particular classifications or circumstances.

There is also no published information on transitional arrangements for workers whose employment ends around the time any eventual new rule takes effect.

When could the 60-day grace period change?

There is currently no implementation date.

The existing provision at 8 CFR 214.1(l)(2) remains in effect and eligible workers can continue to benefit from it subject to its requirements and DHS discretion.

A change would require further regulatory action before new requirements could take effect.

Impact of removing the grace period

Removing the current protection would reduce the time available after qualifying employment ends to take action to preserve or change immigration status.

The implications may be particularly significant for H-1B workers changing employers. Under the H-1B portability framework, an eligible worker can generally begin employment with a new H-1B employer after that employer properly files a qualifying petition rather than waiting for USCIS approval.

The practical issue is therefore the time available to secure a new employer and prepare the required filing. Without the current grace period, delays in recruitment, immigration assessment and petition preparation could have more immediate consequences for the worker’s status.

Workers in other affected classifications may similarly need to pursue a change or extension of status or depart the US on a much tighter timetable.

The extent of those consequences will depend on the regulatory language ultimately proposed and whether DHS creates any replacement protection.

What could the proposal mean for employers?

Employers sponsoring nonimmigrant workers may need to address immigration consequences before terminating employment rather than treating them as a post-termination issue.

The distinction between an employee’s last working day, termination date, payroll end date, severance arrangements and the actual cessation of qualifying employment may become increasingly important. Employers should not assume that continued salary or severance payments would preserve the worker’s immigration position.

Recruiting employers could also face greater time pressure. Where a candidate’s sponsored employment has already ended, immigration assessment and petition preparation may need to begin much earlier in the recruitment process.

HR, legal and immigration teams may therefore need closer coordination around both departures and hires involving affected nonimmigrant workers if the proposal is finalized.

What could the proposal mean for visa holders?

Affected workers may need to make immigration decisions before employment ends or very shortly afterwards if the current protection is removed.

Workers considering a voluntary move may need to coordinate resignation more closely with the new employer’s immigration filing. Those facing redundancy or termination may need to assess options such as a new employer petition, change of status or departure before their last day of qualifying employment.

For now, eligible workers can continue to rely on the current regulatory framework. The proposal nevertheless gives affected workers reason to assess their options before a resignation, redundancy or termination takes effect.

What happens next?

The proposal is currently undergoing Executive Order 12866 regulatory review.

If DHS proceeds, the next major step would be publication of a Notice of Proposed Rulemaking in the Federal Register. That document should provide the first substantive details of the intended changes, including the regulatory language DHS proposes to amend and its reasons for doing so.

A proposed rule would ordinarily be followed by a public comment period. DHS would then consider those comments before determining whether to issue a final rule.

Any final rule could differ from the proposal and would specify when the new requirements take effect.

Need Assistance?

For advice on the potential impact of the proposed changes and what they could mean for your organization’s workforce planning or for you as an individual visa holder, book a fixed-fee telephone consultation with one of our US immigration attorneys.