2026 Policy Alert: DHS Proposes Eliminating 60-Day Grace Period for H-1B, L-1, O-1, E, TN Workers

The Department of Homeland Security (DHS) has put forward a proposed rule that would eliminate the 60-day grace period currently afforded to workers in H-1B, L-1, O-1, E, and TN nonimmigrant visa categories. This grace period has long served as a critical buffer, allowing foreign national employees who lose their jobs — whether through layoffs, termination, or company restructuring — to remain lawfully in the United States while they seek new sponsoring employers or make departure arrangements. Under the current framework, affected workers have up to 60 days from the end of their employment to either secure a new employer willing to file a petition or transfer their status, or to depart the U.S. without accruing unlawful presence. The proposed elimination of this provision would mean that status termination could occur immediately upon cessation of employment, dramatically compressing the timeline available to workers and their families. For EB-3 applicants and other employment-based green card seekers, this proposal carries significant implications. Many individuals awaiting immigrant visa availability are simultaneously maintaining H-1B or other nonimmigrant status as a bridge. Losing the grace period makes maintaining continuous lawful status considerably more difficult during job transitions — a common occurrence in today's volatile labor market. Immigration attorneys and advocacy organizations are urging affected workers and employers to submit comments during the public notice-and-comment period. A formal response from the legal and employer communities is expected, as the rule could face legal challenges on procedural and substantive grounds. EB-3 petitioners and those in employment-based immigration pipelines should consult with qualified immigration counsel immediately to assess their specific situation and ensure backup plans are in place should the rule take effect. Monitoring USCIS rulemaking timelines and the Federal Register for the final rule publication date is strongly advised.