US Considers Ending 60-Day H-1B Visa Grace Period for Job Loss, TechGig

The United States is currently considering a proposal that would remove the 60-day grace period for certain foreign workers, including those on H-1B visas, to find new employment after losing their jobs. This significant policy change is under review by the White House Office of Management and Budget (OMB), with full details yet to be publicly released.If finalised, this regulation would eliminate the current provision that allows non-immigrant workers and their dependants to remain in the US for up to 60 days following the termination of their employment. This flexibility, introduced in 2017, provides a crucial window for workers to secure new sponsorship or explore other legal options to stay in the country.

The proposed change holds particular relevance for the Indian expat community in the US, as Indian nationals are the primary beneficiaries of the H-1B skilled-worker programme. In the 2024 fiscal year, 71 per cent of all approved H-1B petitions were for individuals born in India, according to US Citizenship and Immigration Services (USCIS).

Impact on Workers

Without the 60-day grace period, affected workers would likely be required to depart the US almost immediately if their employment ends. This would significantly hinder their ability to switch employers or adjust their immigration status from within the US, unless the USCIS intervenes on a case-by-case basis.Beyond H-1B visa holders, the proposed rule would also impact other non-immigrant visa categories, including E-1, E-2, E-3, H-1B1, L-1, O-1, and TN, along with their dependants. The potential removal of this grace period introduces considerable uncertainty and pressure for a large segment of the skilled foreign workforce in the US.