New US proposal may end 60-day grace period for H-1B workers: How Indian professionals could be hit by change

The US Department of Homeland Security is contemplating ending the 60-day grace period for foreign workers.

The US Department of Homeland Security is considering eliminating the 60-day grace period that allows certain foreign workers to remain in the country after their employment ends, a move that could leave thousands of visa holders with far less time to find another job or make arrangements to leave the country.

H-1B workers could be put on the clock as DHS weighs ending 60-day grace period. (Unsplash)

A proposed DHS regulation is currently under review by the White House Office of Management and Budget. The proposal has not yet taken effect, and its precise details will not be known until it is published in the Federal Register. If it clears the federal review process, the public would be given 30 to 60 days to submit comments before DHS considers a final rule. The regulation would not take effect until it is formally finalized.

The development is particularly significant for foreign professionals on employment-based nonimmigrant visas, including H-1B, L-1, O-1 and other categories covered by the existing grace-period framework.

What is the 60-day grace period?

Under current rules, certain nonimmigrant workers whose employment ends before their authorized period of stay expires can generally receive a grace period of up to 60 days, or until the end of their authorized stay, whichever comes first.

The provision was introduced to give workers who lose their jobs time to find new employment, change status where eligible or prepare to leave the US. USCIS has previously said the period can allow recently unemployed workers to pursue options to remain in the country beyond the 60-day window if they take appropriate immigration action.

The proposed DHS rule would eliminate that protection for certain principal nonimmigrants and their dependents when the principal's employment ends.

How could Indians be affected?

The impact could be felt by Indians working in the US on H-1B visas. According to US Citizenship and Immigration Services (USCIS), 399,402 H-1B petitions, covering both initial and continuing employment, were approved in fiscal year 2024. The agency's data shows that 71% of approved beneficiaries were born in India, far ahead of any other country.

An H-1B worker who is laid off currently has up to 60 days, subject to the existing rules, to find another employer willing to sponsor a new H-1B petition. Removing that window could make an already difficult job transition significantly more urgent.

USCIS has previously acknowledged that the 60-day period gives unemployed foreign workers time to seek new employment and explore other immigration options.

The impact could extend beyond H-1B workers. The existing framework also covers categories including E-1, E-2, E-3, H-1B1, L-1, O-1 and TN, as well as eligible dependents.

For Indians, the H-1B category is likely to be the most closely watched because Indian professionals make up a large share of H-1B beneficiaries. However, the proposal itself does not single out Indian nationals or any particular nationality.

What happens if an H-1B worker loses a job?

Under the current system, an eligible worker can use the grace period to secure another position and have a prospective employer file the necessary H-1B petition.

There are also other potential immigration routes in certain circumstances. USCIS has said recently unemployed workers may, depending on their circumstances, pursue options such as changing to another nonimmigrant status or seeking other forms of immigration relief.

If the grace period disappears, however, the practical room to use those options could shrink considerably.

Is the 60-day grace period ending now?

No. The proposal is still under review by OMB. It has not become a final regulation, and eligible workers continue to have the existing protections under current rules.

If DHS moves ahead, the proposed rule would first need to be published in the Federal Register, followed by a public-comment period. DHS would then have to consider the comments before issuing a final rule.

That means there is no immediate change requiring H-1B or other covered visa holders to leave the US simply because they lose their jobs.