H-1B Workers Face New Rules After 60-Day Grace Period Ends I-94

FY 2027 H-1B cap season is approaching fast. Employers should expect electronic registration in March 2026, with selection notices by late March or early April. For workers facing job loss, timing matters even more because the 60-Day Grace Period can end before a new cap case is filed.

FY 2027 is also the first cap season fully shaped by the one-registration-per-beneficiary model and newer selection mechanics. That change reduces duplicate entries and raises the stakes of each registration.

📅 Key Date: Plan for March 2026 registration for FY 2027 H-1B cap cases, with an October 1, 2026 start date.

FY 2027 H-1B Lottery Timeline (Projected)

USCIS has not published FY 2027 cap dates yet. This table reflects the typical schedule for cap-subject cases.

How FY 2027 Compares to FY 2026

FY 2026 remained highly competitive. USCIS received about 442,000 registrations and selected about 120,000 to reach the 85,000 cap numbers, for an estimated ~27% selection rate.

That pressure continues for FY 2027, even with beneficiary-centric selection.

What changed structurally

USCIS now uses a beneficiary-centric model. Each person should have only one entry in the selection pool, even with multiple sponsors.

Employers can still submit registrations, but duplicate beneficiary entries no longer multiply selection odds.

⚠️ Employer Alert: The one-registration-per-beneficiary rule increases fraud scrutiny. Keep offer letters, role details, and wage evidence ready for an RFE.

What Happens Next After Selection (and After Non-Selection)

If selected

Selection is only the first gate. The employer must file a cap-subject Form I-129 during the filing window. The petition must show a specialty occupation, a qualifying beneficiary, and an approved Labor Condition Application (LCA).

USCIS has increased scrutiny for broad roles and low-wage cases. Level I wages face frequent questions, especially when duties look junior or generic.

Employers must pay the higher of the prevailing wage or actual wage for similarly employed workers.

H-1B portability. If the worker is already in H-1B status, a change of employer case may allow work after USCIS receives the filing, not after approval. Portability does not cure prior status violations.

If not selected

Non-selection means no cap case can be filed from that registration. Employers should track whether USCIS conducts a second selection round, which sometimes happens when filing volumes fall short.

For employees, non-selection often intersects with job loss. The 60-Day Grace Period and the I-94 end date control how long the person may remain in the United States without a new filing.

1) Understanding the 60-Day Grace Period

Certain nonimmigrants, including H-1B workers, may be eligible for a discretionary grace period of up to 60 consecutive days after employment ends. The grace period can be shorter if the I-94 expires first.

The grace period can protect time to job search, prepare a filing, or prepare to depart. It does not authorize work for a new employer unless a proper work-authorizing filing supports it.

Status and unlawful presence can diverge. Someone may be out of status before USCIS counts unlawful presence, depending on facts. Timing and filings often control that analysis.

2) What Happens After the 60 Days Pass

After the grace window ends, a person is typically out of status unless a timely, appropriate filing was made. Staying longer can raise enforcement exposure and complicate future benefits.

Unlawful presence may become a serious issue when no timely filing exists. Future visa issuance and admissions can become harder. Outcomes are fact-specific and discretionary.

Documentation matters. USCIS often focuses on the employment end date, the I-94 date, and when a filing was received, not when it was prepared.

3) Possible Options After the Grace Period

Options narrow after the grace period, but some paths may still exist.

• Late H-1B change of employer (discretionary). A new employer can sometimes file late and request forgiveness of the lapse. This is often framed as nunc pro tunc relief. USCIS typically expects a credible reason for delay, quick corrective action, and no unauthorized work.
• B-2 change of status as a bridge. A B-2 filing can support lawful stay for interviews and job search. It provides no work authorization. Late B-2 filings can face the same discretionary hurdles.
• Dependent status. If eligible through a spouse, a change to H-4 or another dependent status may be possible. Timing and proof of the principal’s status are central.
• Other work visas. O-1 can fit high-achievement profiles with strong evidence. L-1 can work where there is qualifying foreign employment and a related entity. Each option requires a sponsor and clean timing.
• Compelling circumstances EAD. This is narrow and requires a specific immigrant petition posture and a hardship showing. It does not restore nonimmigrant status.
• Departure and consular processing. When the lapse is long, departure can be the cleanest reset. It can also avoid compounding unlawful presence exposure.

4) Important Risk Factors

Several variables change the risk profile quickly.

• Overstay length can escalate downstream consequences over time.
• Whether a filing was made can preserve a period of authorized stay.
• I-94 limits can shorten the grace period.
• Prior history affects discretionary decisions and credibility.
• Fraud or misrepresentation can create severe, lasting inadmissibility problems.

5) What Does NOT Work

Unauthorized employment is a top risk. It can trigger denials and future ineligibilities.

An approved I-140 does not provide lawful nonimmigrant status by itself. Job searching without a pending, proper filing can also compound problems.

6) Immediate Steps If You Are in This Situation

Speed matters because options often turn on receipt dates and evidence.

Stop any work that is not clearly authorized. Assemble core documents, including I-94 records, prior I-797 approvals, pay statements, and proof of when employment ended. Confirm whether any filings were made and when USCIS received them.

Then triage decisions. The main paths are a new petition, a change of status, a dependent filing, or departure planning. Travel can raise additional issues, especially if a filing is pending.

💼 Employee Tip: Download your most recent I-94 and confirm the expiration date before relying on any grace-period calculation.

7) Key Takeaway

Missing the grace period usually means the worker is out of status. Some discretionary remedies may still exist, but timing and documentation drive outcomes.

The safest planning mindset is “act fast, document everything, and avoid unauthorized work.”

8) Policy Changes and New Risks (2025–2026)

Recent policy shifts change planning for workers who fall out of status.

Selection mechanics now prioritize beneficiary-based entries and can favor higher-wage or higher-skill profiles, depending on implementation. Enforcement posture has also shifted. Out-of-status periods can increase the chance of receiving a Notice to Appear.

Separately, employers should watch for new, high-cost fee exposure in certain consular-return scenarios. Confirm current requirements before filing or scheduling travel.

9) Key Statistics and Facts

The grace period is capped by the I-94 end date. Portability can allow work after USCIS receives a qualifying petition, but it does not erase prior violations.

A B-2 filing can support staying for interviewing, but it does not allow employment. Out-of-status periods can increase NTA exposure and complicate future benefits.

H-1B Fee Snapshot (Common Cap-Subject Filings)

Employer actions (now through March 2026): confirm the role is a specialty occupation, match duties to a specific degree field, and run a prevailing wage check using the SOC code and worksite location. Start LCA preparation before registration results.

Employee actions (now through March 2026): verify your I-94 end date, keep termination proof, and track your grace-period clock. Do not work for a new employer until work authorization is clear.

📋 Official Resources:

• H-1B Program: uscis.gov/h-1b-specialty-occupations
• Cap Season: uscis.gov/h-1b-cap-season
• Prevailing Wages: flcdatacenter.com