US Foreign Worker Grace Period: DHS Proposal Threatens 60-Day Job Search Window
Foreign professionals working in the US could soon have significantly less time to find a new employer if a government proposal to eliminate the current discretionary 60-day grace period after employment ends moves forward.
The Department of Homeland Security (DHS) proposal has completed its review by the US Office of Management and Budget (OMB). It is now set to be published in the Federal Register, which will invite public comments on the potential changes to foreign worker status.
What Could Change in the 60-Day Grace Period
The existing rule offers crucial protection, allowing eligible foreign workers to remain in the US for up to 60 days after employment ends, or until their Form I-94 expires, whichever occurs first. This grace period provides vital time to secure new employment or finalize departure arrangements.
The proposed change aims to remove this protection for workers on various non-immigrant visas, including:
- H-1B and H-1B1
- L-1
- O-1
- E-1, E-2 and E-3
- TN
Dependents of these affected foreign workers could also be directly impacted by the removal of the grace period.
If this grace period is eliminated, a foreign worker whose employment ends could immediately be considered out of status. This would make staying in the US to search for another job or successfully arrange a change of status far more challenging and riskier.
Impact on Indian H-1B Workers
For Indian passport holders, particularly those in technology and professional sectors, the H-1B visa route is a major concern. The H-1B grace period has been a critical safety net.
Currently, an eligible H-1B worker who loses their job can utilize the 60-day grace period to find another employer, file for a change of status or employer transfer (where permitted), or make arrangements to leave the country. Under the proposed system, this essential cushion could disappear entirely.
It’s important to note that USCIS retains separate discretionary authority to excuse a lapse in status and approve a change of status or employer in certain circumstances. However, this discretionary power would not offer the same certainty or broad protection as a defined grace period.
When Could the Grace Period Changes Take Effect?
The proposed changes are not immediate. The DHS proposal must first be officially published in the Federal Register. Following publication, there will be a public comment period, typically lasting 30 or 60 days. After this, DHS will need to review all submitted comments and issue a final rule before any change can officially take effect.
This means foreign workers are not losing the 60-day grace period today. The full details of the proposed regulation will only become clear once DHS publishes the complete document.
Why This Grace Period Matters
The 60-day grace period provision was originally introduced in 2016 and became effective in 2017. Its primary purpose was to provide foreign workers with adequate time to recover from unexpected job loss without immediately falling out of status.
The current move to potentially remove this provision aligns with a broader trend towards stricter scrutiny of temporary foreign worker statuses. For Indian professionals, this could significantly increase the time sensitivity of employment changes within the US and emphasize the need for a robust backup immigration plan.
Travelobiz Take: Prepare, Don’t Panic
We view this development as a significant warning rather than an immediate change. Indian workers, especially those on affected visas, should not panic. Instead, it’s crucial to prepare for potential changes by exploring faster exit strategies or employer-transfer options if the DHS proposal is finalized.
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