DHS Proposes Ending 60-Day Grace Period for Key Work Visas
The Department of Homeland Security has proposed a rule to eliminate the discretionary 60-day grace period for workers on E, H, L, O, and TN visas, which
The U.S. Department of Homeland Security (DHS) has proposed eliminating a 60-day grace period for certain foreign workers whose employment ends. The proposed rule, scheduled for publication on September 11, 2026, would affect holders of several major employment-based visa categories.
Under the current system, eligible workers can receive up to 60 days of discretionary leeway after their job ends before they are considered out of status. This time is intended to allow individuals to secure new qualifying employment, have a new employer file a petition, or pursue another lawful immigration option. DHS now seeks to remove this provision from the Code of Federal Regulations.
Proposed Change to Status Maintenance
If the rule is finalized, an affected worker would generally begin failing to maintain their immigration status immediately after their qualifying employment ends. The only exceptions would be if the individual has another timely and legally available basis to remain in the United States. According to the source report from the Murthy Law Firm, this change would mean workers and their dependent family members may need to depart the country promptly or immediately rely on another authorized status.
The visa categories impacted by this proposal are listed below.
| Visa Categories Affected |
|---|
| E-1 |
| E-2 |
| E-3 |
| H1B |
| H1B1 |
| L-1 |
| O-1 |
| TN |
DHS Rationale for the Rule
DHS states that the change would more directly tie a worker's nonimmigrant status to the specific employment or activity that is its basis. The agency also asserts the move would promote program integrity and reduce administrative burdens for U.S. Citizenship and Immigration Services (USCIS) when adjudicating later petitions.
The proposal acknowledges potential hardships. DHS estimates that approximately 3,795 workers annually have a new Form I-129 petition filed for them by a new employer during the current grace period. H1B workers account for the vast majority of that estimate. The agency recognizes that affected individuals may face lost income and travel costs if forced to leave the U.S. To search for a new job. Consequences for work-authorized dependent spouses and their employers are also noted.
Rulemaking Process and Next Steps
This is only a proposed rule. The existing 60-day grace period remains fully in effect. DHS must review public comments and publish a final rule before any change could be implemented. A final rule would specify its own effective date and could differ from the current proposal.
Written comments on the proposal are due on or before November 10, 2026. They can be submitted via Regulations.gov under Docket No. USCIS-2026-0364. The Murthy Law Firm advises employers and affected foreign nationals to monitor the rulemaking closely. If finalized, advance planning following a resignation, layoff, or termination would become critically important. The firm recommends seeking individualized legal advice promptly regarding options like new employer-sponsored filings, change-of-status applications, or departure plans.
