DHS Proposes to Eliminate the 60-Day Grace Period for Nonimmigrant Workers
On August 6, 2026, the Department of Homeland Security (DHS) submitted a proposed rule titled "Eliminating the Discretionary 60-day Grace Period" to the White House Office of Information and Regulatory Affairs for regulatory review. If finalized, the rule would remove the 60-day period that currently allows E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN workers (and their dependents) to remain in a period of authorized stay after employment ends. We emphasize that the proposed rule is only a proposal at this point and does not impact any employees currently facing termination, or working within their grace period.
Background
The 60-day grace period is a 2016 regulation that took effect in 2017 under the Obama administration. It currently allows a worker whose employment ends before their petition's expiration date to remain in a period of authorized stay for up to 60 consecutive days, or until the I-94 expires, whichever is shorter, during which the worker must depart the US, file a change of status petition or change of employer petition with a new employer.
The full text of the proposed rule has not been published, and its precise provisions remain unknown. It must still clear review by the Office of Management and Budget (OMB), after which it would be published in the Federal Register for a public comment period of 30 to 60 days; a final rule and effective date would follow only after that process concludes, typically several months later. It is important to note that not all proposed rules ultimately take effect as final rules.
If the rule is adopted as described, a worker whose employment ends would no longer be treated as maintaining valid nonimmigrant status as of the date employment ceases — even though the I-94 itself would, in most cases, still be unexpired. This means that the affected worker would need to immediately depart the country, or file a change of status or change of employer petition with a new employer.
What this Means for Employers and Nonimmigrant Workers
The proposed rule does not change current regulations, and the 60-day grace period remains fully available while the rule proceeds through review.
Irrespective of whether the rule becomes final, we encourage employers anticipating reductions in force (RIF) to contact our attorneys in advance in order to ensure the employer’s compliance with specific immigration requirements, and help affected employees maintain valid status. This recommendation applies even if there are no foreign workers who are directly impacted by the RIF.
If the proposed rule becomes final, providing foreign workers advance notice of a termination may help them avoid a lapse in valid status.
We will monitor OMB review, Federal Register publication, and the comment period, and will update you promptly once the proposed rule's actual text and scope are public. Please reach out with questions about any pending or anticipated termination involving a sponsored nonimmigrant worker.