DHS Proposes Ending H-1B 60-Day Grace Period
The Department of Homeland Security wants foreign workers to lose status the day after a job ends instead of getting 60 days to find new employment.
Updated on Nov. 9, 2026 in Immigration
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The Department of Homeland Security published a proposal on September 11, 2026, to eliminate the 60-day grace period that H-1B and other foreign workers currently receive after a layoff or resignation. Public comments on the proposal close November 10 under docket USCIS-2026-0364, and the current rule remains in effect.
Why it matters
Under the proposal, affected workers would lose employment-based status the day after their job ends, while DHS says ending case-by-case grace period reviews would reduce administrative burdens. The change would directly affect how quickly employers and workers must act after a separation.
DHS estimates about 3,795 workers a year filed new petitions during the current grace period, and the agency anticipates possible lost pay, temporary productivity losses and more employers paying return travel costs. Texas ranked second to California with 109,130 certified positions for H-1B, H-1B1 and E-3 workers in the first nine months of fiscal 2026, and the final impact remains unclear pending public comment.
The players
Department of Homeland Security
The federal department responsible for immigration enforcement and the agency that proposed eliminating the grace period.
Creative Team LLC
A Texas consulting firm that agreed to a civil penalty over a job ad restricted to H-1B visa holders.
The details
Under the proposed rule, eligible H-1B workers could begin a new job once the next employer files a qualifying petition or on the requested start date, whichever is later. The change follows a July 7 settlement in which Texas consulting firm Creative Team LLC agreed to pay a $4,730 civil penalty for restricting a job ad to H-1B visa holders.
Timeline
July 7: Creative Team LLC agreed to pay a $4,730 civil penalty.
September 11: DHS published the proposal to eliminate the 60-day grace period.
September 18: An executive order directed federal agencies to review H-1B filings for recent layoffs of U.S. workers.
November 10: Public comment period closes at 11 p.m. Central.
Big Picture
The proposal sits within a longer federal effort to tighten H-1B rules, following the wage requirement that sponsors pay the higher of the local prevailing wage or comparable employee pay. It shifts the focus from employer obligations to the status protections available to workers once they leave a sponsoring job.
If finalized, H-1B and other eligible workers would lose their employment-based status the day after a job ends rather than keeping it for up to 60 days. Workers who lose jobs would have far less time to secure a new sponsoring employer, and new employers would need to file qualifying petitions quickly to avoid a gap in status.
The takeaway
Foreign workers and employers relying on the current 60-day grace period should watch the comment deadline of November 10 and the final rule. Employers who may need to rehire quickly should review their petition timelines now.
What happens next
Public comments on the proposal close November 10 at 11 p.m. Central through Regulations.gov under docket USCIS-2026-0364.
Further reading
For related coverage, explore more Immigration news.
More information
Submit comments on the proposal through Regulations.gov under docket USCIS-2026-0364.
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