Laid Off? H-1B Workers Could Lose 60-Day US Job Search Window

The US Department of Homeland Security (DHS) is considering removing the 60-day grace period that currently allows certain foreign workers to remain in the country after losing their jobs.

The proposal is currently being reviewed by the White House Office of Management and Budget (OMB). It has not been finalised, and the full details have not yet been made public.

If implemented, the change could significantly reduce the time available to foreign professionals to find a new employer, change their immigration status or make arrangements to leave the US.

The proposal could be particularly significant for H-1B workers, including the large number of Indian professionals employed in the US.

What Is The 60-Day Grace Period?

The 60-day grace period was introduced in 2017 to provide certain non-immigrant workers with additional time following an unexpected loss of employment.

Under the current rules, eligible workers can generally remain in the US for up to 60 consecutive days after their employment ends, or until the end of their authorised period of stay, whichever comes first.

The window gives workers time to find another qualifying employer, complete an employment transfer, explore another immigration status, make arrangements to leave the US legally

The provision also gives companies greater flexibility to hire foreign workers who are already in the country.

What Is The Trump Administration Proposing?

The DHS proposal under review at OMB would eliminate the 60-day grace period for certain principal non-immigrant workers and their dependants when the employment linked to their immigration status ends before their authorised stay expires.

The exact scope of the proposal remains unclear because the regulation has not yet been made public.

If eventually approved, affected workers could have significantly less time to secure another job or find an alternative immigration route. In some cases, they could be required to leave the US once their employment ends.

However, the proposal has not yet become law. The existing 60-day grace period remains in effect and the proposal could still be changed, delayed or withdrawn during the regulatory process.

Which Visa Holders Could Be Affected?

The existing grace-period provision applies to several categories of non-immigrant workers, including; H-1B: Specialty occupation workers, H-1B1: Certain professionals from Chile and Singapore, L-1: Intracompany transferees, O-1: Individuals with extraordinary ability, E-1: Treaty traders, E-2: Treaty investors, E-3: Certain Australian professionals, TN: Eligible professionals from Canada and Mexico.

Eligible dependants are also covered under the current framework.

What Happens If The Grace Period Is Removed?

The biggest change would be the loss of the 60-day buffer after a job ends.

Currently, an eligible worker who is laid off can remain in the US during the grace period while searching for another qualifying position. If the proposed change takes effect, that option could disappear for affected workers.

A foreign professional could therefore face a much tighter deadline to secure another immigration pathway or prepare to leave the country.

US immigration authorities retain discretion in certain circumstances to excuse some immigration-status violations. However, such relief is not automatic and should not be treated as a replacement for the existing grace period.

Why Does This Matter For H-1B Workers?

The potential change is particularly important for H-1B employees because their immigration status is directly linked to employment.

H-1B workers are employed across technology, healthcare, engineering, finance and other specialised sectors. Under the current system, someone who suddenly loses an H-1B job can use the 60-day window to find another qualifying employer and potentially transfer their H-1B status.

Removing that period could make layoffs significantly more disruptive.

Workers would have less time to find another employer willing to sponsor them, complete the necessary immigration process or explore a different legal route to remain in the country.

The change could also affect employers. Companies often recruit foreign professionals who are already working in the US because changing employers can be easier than bringing someone into the country from abroad.

A shorter or non-existent grace period could make those workers less flexible to hire.

Why Are Indian Workers Particularly Exposed?

Indian professionals could be among the groups most affected by any changes to the H-1B system.

According to US Citizenship and Immigration Services (USCIS), people born in India accounted for around 71% of approved H-1B beneficiaries in fiscal year 2024.

That means Indian nationals make up a substantial portion of the foreign professional workforce that relies on H-1B status.

The potential impact is particularly relevant for Indian workers in sectors such as information technology, engineering, healthcare and professional services, where H-1B employment is widespread.

More than 5.2 million people of Indian origin live in the US, according to recent estimates based on US Census data. Consequently, changes to employment-linked immigration rules could have implications extending beyond H-1B workers themselves.

Will H-1B Workers Have To Leave Immediately After Losing Their Jobs?

No — not under the current rules. The existing 60-day grace period remains in place. The DHS proposal is still being reviewed by OMB and has not been converted into a final regulation.

Even if DHS formally publishes the proposal, it would still have to go through the US regulatory process before any changes take effect.

The proposal could also be modified or abandoned during that process.

For now, eligible H-1B workers and other covered foreign professionals continue to have access to the existing grace period.

If the proposal is eventually implemented, however, the removal of the 60-day window would represent a significant shift in the US employment-based immigration system — particularly for workers who suddenly lose their jobs and need time to find another sponsor.

For Indian professionals, who account for the overwhelming majority of H-1B beneficiaries, the change could make employment disruptions considerably more consequential.