DHS is considering ending the 60-day job-loss grace period available to H-1B workers and several other employment-based visa holders. The proposal has not taken effect, meaning laid-off workers can still use the existing period to pursue a new employer, request another immigration status or prepare to leave the United States.
The Department of Homeland Security submitted a proposed regulation for White House review on August 6, 2026. The proposal concerns the elimination of the grace period available when a temporary worker’s employment ends before the expiration of their authorized stay.
The regulation has not yet been published in the Federal Register, so its detailed language, possible exceptions and proposed effective date are not publicly available. White House review is an early step: DHS would generally need to publish a proposed rule, accept public comments and issue a final rule before changing the regulation.
As of August 11, 2026, the existing rule remains in effect. It covers workers in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN classifications, along with their dependents.
Under current regulations, an eligible worker may receive up to 60 consecutive calendar days after employment ends, or until the expiration of their authorized validity period, whichever comes first. The period is discretionary, and DHS may shorten or deny it in an individual case.
An H-1B worker can seek a new sponsoring employer during that window. If the new employer files a qualifying H-1B petition on time, the worker may generally begin employment after USCIS receives the petition under H-1B portability rules, provided all eligibility requirements are met.
Workers may also seek another immigration status. Depending on their circumstances, possibilities can include H-4 or another dependent classification, B-1 or B-2 visitor status, or F-1 student status. Each category has separate requirements. For example, visitor status does not permit employment, while F-1 status ordinarily requires admission to an authorized school and the appropriate student documentation.
Changing status does not automatically authorize employment. A timely application may allow a person to remain while USCIS considers the request, but the individual must have separate authorization before working.
Removing the grace period could significantly reduce the time available to coordinate with a new employer, prepare an H-1B petition or file a change-of-status application. It could be especially consequential for international graduates who moved from F-1 Optional Practical Training to H-1B status and for professionals waiting in employment-based green card backlogs.
Until DHS publishes the proposal, workers should avoid assuming that the grace period has ended. Those facing a layoff should confirm their final employment date, I-94 expiration date and filing options promptly because individual timelines can differ.
This article provides general information and is not legal advice. Immigration options depend on each person’s status, employment record and filing history.