The Department of Homeland Security (DHS) has submitted a proposed regulation that could eliminate the 60-day grace period for laid-off H-1B visa holders and other legal nonimmigrants. The proposed rule, filed under regulatory identifier RIN 1615-AD22, reached the White House Office of Information and Regulatory Affairs (OIRA) for federal review on Thursday.
If finalized, the measure would strip foreign professionals of their critical post-layoff transition window. As a result, they would be forced to find a new sponsor immediately or face immediate departure from the United States.
Under current immigration rules established in early 2017, nonimmigrant workers in H-1B, L-1, O-1, E-1, E-2, E-3, and TN categories receive up to 60 consecutive days after an employment termination to maintain lawful status.
This grace period allows workers to search for a new employer, submit visa transfer petitions, or apply for a change of status without accruing unlawful presence.
What the Proposed Regulation Would Change
If the proposal clears federal review and moves through the public comment process, foreign workers whose employment ends prematurely would no longer retain their nonimmigrant status.
Without the 60-day cushion, a Friday termination could immediately trigger immigration violations before a new employer has time to file paperwork.
Under the proposed framework, workers would lose the legal flexibility to transition between employers from within the country.
A new employer could still file an H-1B petition. However, the worker would likely have to leave the United States, wait for approval abroad, and obtain a fresh visa stamp before returning to work.
Heavy Disruption for Indian Tech Professionals
The proposed rollback poses an immediate challenge for the technology sector, where foreign talent frequently navigates corporate restructurings and unexpected job cuts.
Indian nationals, who secure the vast majority of specialty occupation H-1B visas each year, stand to be the most impacted group.
Immigration attorneys emphasize that eight weeks is already a tight window for interviewing, background checks, and petition processing.
Removing the grace period entirely would drastically increase employer leverage, create immense stress for families, and compel laid-off workers to disrupt established households on short notice.
Next Steps for the Proposal
The regulation is currently undergoing interagency review at OIRA. Once approved, DHS will publish the draft rule in the Federal Register. This will open a mandatory 30 to 60-day public comment window for feedback from businesses, legal experts, and public stakeholders.
The proposed rule is not yet law and will take several months to go through formal rulemaking procedures. However, immigration analysts advise current H-1B holders to stay informed, maintain detailed employment records, and consult immigration counsel to prepare contingency plans.
Curated news reports, in-depth analysis, and special features by India’s Opinion editorial team.
