New US Rule Could End Job Grace Period for H-1B Visa Holders: What It Means for Foreign Workers

Impact of Proposed Changes on Foreign Workers

Washington: A new proposal from the US government aims to eliminate the 60-day grace period that currently allows certain foreign workers, including those on H-1B visas, to secure new employment after losing their jobs.

This change is expected to have a significant effect on Indian tech professionals and others working under H-1B visas.

The H-1B visa is a non-immigrant visa that permits US companies to hire foreign workers in specialized fields requiring technical expertise.

Many technology firms rely on this visa to recruit thousands of employees annually from countries such as India and China.

The proposed regulation, titled "Eliminating the Discretionary 60-day Grace Period," is set to be published in the Federal Register, with the Department of Homeland Security (DHS) seeking public feedback over the next two months.

If enacted, foreign workers who lose their jobs before their visas expire would be required to leave the US immediately unless they have other authorization to stay.

"This proposal reinstates a direct link between a foreign national's nonimmigrant status and the specific employment that justified their entry into the US, while also reducing administrative burdens," stated the DHS.

The proposal seeks to remove the discretionary 60-day grace period currently available to various nonimmigrant categories, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN visa holders and their dependents.

This grace period was introduced during the Obama administration to facilitate easier job transitions for workers by allowing them to remain in the US while seeking new opportunities.

The DHS has acknowledged that eliminating this grace period could lead to some foreign nationals receiving Notices to Appear (NTA), which is the first step in deportation proceedings, according to immigration law firm Fragomen.

The likelihood of receiving an NTA may increase for those in nonimmigrant categories that require immediate notification to the government when employment ends, such as H-1B, O-1, and P visa holders.

The 60-day grace period was established in 2016 to promote job flexibility and stability for high-skilled workers, making it easier for US employers to hire and transition nonimmigrant talent.

It allowed individuals to seek new employment within the same visa category or change their status without needing to leave the US, regardless of whether their job loss was voluntary or involuntary.

DHS estimates indicate that around 65,752 primary beneficiaries will experience job loss or voluntary employment changes by 2025, with a peak of 80,034 in FY 2023 and a low of 40,959 in FY 2021.

From FY 2021 to FY 2025, 5.77% of 328,758 primary beneficiaries who lost their jobs or changed employers had new petitions submitted on their behalf by new employers.

Should this proposal be finalized, workers facing job loss would need to exit the country and reapply at a US embassy or consulate after securing a new job offer.

The US government allocates 65,000 H-1B visas each year, with an additional 20,000 reserved for individuals holding advanced degrees from US educational institutions.

This initiative marks another effort by President Donald Trump to restrict legal immigration since his return to office in January 2025.