- The Department of Homeland Security proposes ending the grace period for H-1B, L-1, and O-1 workers.
- A formal filing on August 6, 2026 moved the measure to the White House for regulatory review.
- If finalized, workers would face immediate departure requirements following termination instead of the current sixty days.
The Department of Homeland Security has submitted a proposal that could end the 60-day grace period for H-1B, L-1 and O-1 workers after employment ends.
DHS sent the measure to the White House Office of Management and Budget for regulatory review on August 6, 2026. The filing is titled “Eliminating the Discretionary 60-day Grace Period” and carries RIN 1615-AD22.
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The measure is not in effect. Its full text remains confidential during the OMB review, but the filing confirms the administration’s intent to remove the current regulatory safeguard for certain nonimmigrant workers.
A job loss would not require departure today. The existing rule remains operative while the proposal advances.
DHS Secretary Markwayne Mullin described the broader policy direction on July 16, 2026, while discussing a separate final rule for students. That measure would reduce F-1 grace periods from 60 to 30 days.
“By implementing clear, finite limits on these visas, the United States is reclaiming its ability to properly screen, vet, and monitor individuals within our borders. This. ensures that [nonimmigrants] remain focused on their primary purpose.”
Mullin said the administration was pursuing “finite limits” and “regular vetting.” The employment-worker proposal remains at an earlier stage than the student rule.
A job loss could end status immediately if DHS finalizes the measure
Under the 2017 regulation, 8 CFR 214.1(l)(2), eligible workers may receive a discretionary period of up to 60 consecutive days after employment ends. The period ends sooner if the worker’s I-94 validity expires.
Workers can use that time to seek another employer, request a change of status or prepare to leave the United States. The current framework also supports “H-1B portability,” allowing an eligible H-1B worker to begin with a new employer while the new petition process moves forward.
The proposed change would remove that buffer. Affected individuals could lose legal status when employment ends and generally would need to depart immediately.
An in-country employer change or status application could become unavailable unless U.S. Citizenship and Immigration Services exercises rare individual discretion. The proposal could also expose individuals to Notices to Appear and removal proceedings more quickly after employment stops.
The measure would reach more visa categories than the three named in the headline. The listed classes are H-1B, H-1B1, L-1, O-1, TN, E-1, E-2 and E-3, along with their dependents.
Families could face an immediate departure requirement while managing mortgages, children in school and car leases. The timing would leave little room to arrange a new filing from inside the country.
OMB review comes before public comments and any final rule
The proposal is currently in the “Proposed Rule” stage. OMB review began on August 6, 2026, and must conclude before DHS can publish the proposal for public input.
After clearance, DHS would publish the measure in the Federal Register. The expected public comment period would run for 30 to 60 days.
DHS would review those comments before deciding whether to issue a final version. Any final rule would also need a published effective date.
That sequence leaves the current protection in place for now. The OMB filing itself does not change a worker’s immigration status or create an immediate departure requirement.
The proposal’s next public milestone is Federal Register publication. Workers and employers will need to track that notice, the comment deadline and any later effective date.
Records and early legal advice may shape available options
Workers who could face termination should assemble their immigration and employment records before a layoff becomes imminent. The preparation steps include:
- Keeping updated copies of pay stubs, I-94 records and approval notices.
- Reviewing the Federal Register for publication of the proposal and any final rule.
- Contacting immigration counsel before the final day of employment to discuss possible filings.
Counsel may discuss a B-2 “bridge” visa or another status change. The timing of any filing would need to be assessed before employment ends.
The potential loss of the current window would be especially consequential for H-1B workers. If a worker becomes out of status as soon as employment stops, a new employer may not be able to use portability from inside the United States in the same way.
USCIS provides information on options for nonimmigrant workers following termination. Its H-1B specialty occupations newsroom also contains agency information for H-1B cases.
The related student rule appeared in a July 17, 2026, Federal Register notice titled “Establishing a Fixed Time Period of Admission.” That notice concerns students and is separate from the employment-worker proposal.
The employment measure still awaits the outcome of OMB review. Until DHS publishes a final rule with an effective date, the existing 2017 grace-period framework remains in place.
