The US Department of Homeland Security (DHS) has proposed scrapping the 60-day grace period available to certain non-immigrant workers, including H-1B and L-1 visa holders, after termination of employment, a move that could have significant implications for thousands of Indian professionals in the country.
While the proposal covers several employment-based non-immigrant categories, H-1B workers, employees on L-1 intra-company transfer visas and O-1 visa holders, granted to individuals with extraordinary ability, are among those likely to be most affected.
Under the current rules, workers whose employment ends can generally receive a discretionary grace period of up to 60 days, or until the expiry of their authorised stay, whichever comes first. The window allows them to look for another job, apply for a change of status or make arrangements to leave the US.
The proposed change would reverse a policy introduced by DHS in 2016, when the agency had recognised that sudden job loss may not be the fault of a foreign worker and that allowing skilled professionals time to secure new employment could benefit both workers and US employers.
DHS now argues that the grace period weakens the employment-based nature of these visa categories by allowing workers to remain in lawful status after the employment that formed the basis of their immigration status has ended. The department also said the earlier policy did not adequately account for its potential negative consequences.
At the same time, DHS has acknowledged that ending the provision could have substantial personal and economic consequences. Some workers may have to leave the US and seek readmission before finding new employment, while others could receive Notices to Appear and potentially face removal proceedings.
The proposal also recognises that many foreign workers and their families have established significant ties in the US, including purchasing homes, paying taxes and investing in local communities. DHS noted that families may have made professional and personal plans based on the availability of the 60-day window.
Despite these concerns, the department said the costs of retaining the grace period are outweighed by the need to restore the employment-based character of the immigration classifications and reduce the administrative burden on US Citizenship and Immigration Services.
The proposal has been opened for public comments, and the process of reviewing feedback and issuing a final rule could take several months. The proposed changes are therefore not yet in effect.
The move could have a particularly significant impact on the Indian diaspora, which accounts for a large share of H-1B beneficiaries. According to USCIS data for the fiscal year ending September 30, 2025, India-born beneficiaries accounted for 57,747, or 50.3 per cent, of the 1,14,806 H-1B petitions approved for initial employment.
