DHS Proposes to Eliminate the 60-Day Grace Period for H-1B, L-1, O-1, E, and TN Workers

On September 11, 2026, the U.S. Department of Homeland Security (DHS) published a Notice of Proposed Rulemaking in the Federal Register that could reshape what happens when certain foreign workers lose their jobs. Titled “Eliminating the Discretionary 60-Day Grace Period” (RIN 1615-AD22, Docket No. USCIS-2026-0364), the proposal would remove a long-standing safeguard that gives many nonimmigrant workers a short window to regroup after their employment ends.

For now, this is only a proposal. But if it becomes final as written, it would mark a significant shift in employment-based nonimmigrant status in recent years.

What the 60-Day Grace Period Does Today

Under the current regulation at 8 CFR 214.1(l)(2), a nonimmigrant worker whose qualifying employment ends before the expiration of their authorized stay may generally remain in the United States for up to 60 consecutive days (or until the end of their authorized validity period, whichever comes first) without being treated as having fallen out of status.

That two-month buffer matters. It gives a worker time to find a new sponsoring employer, file to change status, or make orderly arrangements to depart the country. In practice, it has functioned as a critical bridge between one job and the next, and it has spared thousands of skilled workers and their families from an abrupt loss of status the moment a layoff or termination takes effect.

What DHS Is Proposing to Change

The proposed rule would strike the 60-day grace period from the regulations entirely. If finalized, an affected worker, along with their spouse and children, would be considered to have failed to maintain nonimmigrant status the day after the qualifying employment or activity ends. DHS’s preamble frames the expectation plainly: immediate departure, unless the worker is otherwise authorized to remain.

How the Rule Affects Dependent Family Members

Because derivative status is tied to the principal worker’s status, spouses and children in H-4, L-2, and E-dependent classifications would lose status at the same moment the principal does. DHS’s own estimates put the affected dependent population at roughly 208,000 per year on a five-year average.

The 10-Day Grace Period Would Not Fill the Gap

A separate 10-day grace period does exist under 8 CFR 214.1(l)(1), but it only applies after a worker’s validity period ends, not when someone is let go partway through an approved petition. DHS confirms this point in the proposal itself. As a result, the shorter grace period would provide no real safety net for a worker who loses their job mid-petition.

Who Would Be Affected

The proposed rule would affect a wide range of employment-based nonimmigrant workers, including the following classifications:

• H-1B and H-1B1: Specialty occupation professionals in fields such as technology, engineering, finance, and healthcare
• L-1: Intracompany transferees, including managers, executives, and specialized-knowledge employees
• O-1: Individuals of extraordinary ability or achievement
• E-1, E-2, and E-3: Treaty traders, treaty investors, and certain Australian professionals
• TN: Canadian and Mexican professionals under the USMCA

Together, these categories cover hundreds of thousands of workers and their families currently living and working in the United States, with H-1B representing the largest single share.

DHS’s Stated Rationale

The agency argues that eliminating the grace period would more directly tie a worker’s nonimmigrant status to the underlying employment or activity, promote program integrity, and reduce the administrative burden of determining whether the discretionary grace period applies during later adjudications. DHS also suggests the change would benefit U.S. workers, reasoning that employers would fill affected roles with qualified American workers or existing staff.

Notably, DHS considered narrower alternatives, such as shortening the grace period or eliminating it only for certain classifications, but ultimately chose to propose removing it across the board. The agency concluded that the government’s interest in enforcing the terms of nonimmigrant status outweighs the potential harm to workers and employers, even while acknowledging that affected individuals may face lost income, travel costs, and other burdens if they are forced to leave and later seek readmission.

Critics and immigration practitioners have pushed back, noting that the proposal presents little evidence that the current rule is unlawful or that a change is necessary, and that the practical effect would be to make it harder for high-skilled foreign nationals to remain in the country after an involuntary job loss.

What This Means in Practice

If finalized as drafted, the rule would remove the breathing room that workers currently rely on after a termination. A laid-off H-1B professional would no longer have up to 60 days to line up a new employer and port their petition; instead, status would lapse the day after employment ends. The same abrupt cutoff would apply to L-1, O-1, E, and TN workers and their dependents.

The Rule Is Not Final, and the Comment Period Is Open

It is important to emphasize that this is a proposed rule, not current law. The 60-day grace period remains in effect today.

Why Filing a Comment Matters

If you or your company could be affected, filing a public comment is one of the most direct ways to make your voice count. Comments are submitted online through regulations.gov under Docket No. USCIS-2026-0364, and DHS is required to consider them before finalizing any rule. The most effective comments are specific rather than general: they describe real-world impact and, where possible, back it up with concrete detail. An employer might explain how the loss of the grace period would disrupt hiring, projects, or staffing. A worker or family member might describe the plans they built around the current rule: a mortgage, a lease, a child’s school year, a pending green card case, or a spouse’s job. DHS has said that people should not have relied on the grace period, and it has specifically invited the public to respond on that point. First-person accounts of how families and businesses have relied on the rule are exactly what help build the record. If you would like help preparing a comment before the November 10 deadline, our team can assist.

Frequently Asked Questions

This blog post is for informational purposes only and does not constitute legal advice. Immigration law changes quickly, and the outcome of this proposed rule is not yet determined. For guidance on your particular circumstances, please consult a qualified immigration attorney.