Will H-1B Workers Lose the 60-Day Grace Period After Job Loss?

The US Department of Homeland Security has proposed a major change that could affect foreign workers, including many Indians working in the United States on employment-based visas.

Under the proposed rule, the existing 60-day grace period for workers who lose their jobs could be removed. Currently, eligible H-1B workers who lose employment can generally use this period to look for a new job or make alternative arrangements to maintain their legal status.

The proposed change could affect not only H-1B visa holders but also workers on several other employment-based visas, including L-1, O-1, TN, E-1, E-2 and E-3 visas.

If the proposal is implemented, workers who lose their jobs could face much greater pressure to quickly find another legal immigration option or leave the US. This could be a major concern for Indian professionals, as a large number of Indians work in the US technology sector on H-1B visas.

The proposal is expected to be opened for public comments from September 11, 2026. According to the report, the new regulations could come into effect by late 2026 or early 2027.

It is important to note that this is currently a proposed change and not an immediate cancellation of the 60-day grace period. The final impact will depend on the rulemaking process and any changes made before the regulation takes effect.