DHS wants to remove the 60-day grace period.
On September 10, 2026, DHS released a proposed rule that would remove the 60-day grace period from the regulations at 8 CFR 214.1(l)(2). That paragraph lets an H-1B, L-1, O-1, E-1, E-2, E-3, H-1B1 or TN worker keep status for up to 60 days after a job ends. The Federal Register publishes it on September 11, 2026. It is a proposal. The grace period still applies today, and comments run until November 10, 2026.
Under the proposal a worker would be considered to have failed to maintain status from the day after employment ends. Every dependent would lose status the same day, unless another lawful basis to stay already exists.
Below: what the grace period does today, what DHS proposed and why, and which visas it reaches. Then the last day of a job under the proposal, DHS’s own numbers, what stays untouched, the clock to a final rule, and what to do before a job ends.
What the 60-day grace period does today.
The grace period is a regulation. It is short enough to quote in full:
The ruleAn alien admitted or otherwise provided status in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 or TN classification and his or her dependents shall not be considered to have failed to maintain nonimmigrant status solely on the basis of a cessation of the employment on which the alien’s classification was based, for up to 60 consecutive days or until the end of the authorized validity period, whichever is shorter, once during each authorized validity period. DHS may eliminate or shorten this 60-day period as a matter of discretion. Unless otherwise authorized under 8 CFR 274a.12, the alien may not work during such a period.
8 CFR 214.1(l)(2)
In plain terms: when the job behind one of those eight statuses ends early, the worker and the family keep their status for up to 60 more days. If the I-94 date comes first, status ends there instead. The period runs once per approved validity period. DHS can shorten it or refuse it, and typically decides that when the worker or a new employer files a later petition or application. The period allows staying, not working.
The paragraph dates from the AC21 final rule of November 18, 2016 (81 FR 82398), in force since January 17, 2017. Before that date a worker was out of status the day after the job ended, which DHS now describes as its "previous and long-standing policy."
What DHS proposed on September 10, 2026.
The document is a notice of proposed rulemaking titled Eliminating the Discretionary 60-day Grace Period, DHS Docket No. USCIS-2026-0364, RIN 1615-AD22, signed by Secretary Markwayne Mullin and filed for publication on September 11, 2026. It changes three things:
- 8 CFR 214.1(l)(2) is removed. The paragraph quoted above disappears, and the current (l)(3), which lets a worker in any of the (l) periods apply to extend or change status, moves up to become (l)(2).
- 8 CFR 204.5(p)(1)(i) is rewritten. A first request for a compelling-circumstances work permit would have to be filed while the worker still holds E-3, H-1B, H-1B1, O-1 or L-1 status. Filing inside the 10-day periods of 214.1(l)(1) would also count. The 60-day window for that filing goes with the grace period.
- No other text changes. The amendatory instructions contain only those three items. DHS describes the change as restoring "a direct relationship" between a worker’s status and the job behind it.
DHS gives two reasons. The first is the statute: the eight classifications exist for a specific job or activity, so status should end when the job does. The second is workload. DHS says it screened more than 1.9 million petitions and applications for a possible grace period between October 2017 and May 20, 2026. In some instances, it adds, the only evidence of a termination is a payroll document, and the officer has to infer the end date from it. The rule states that the 2016 rulemaking "did not sufficiently consider the negative impacts" of the period.
DHS considered and rejected two softer versions, removing the period for only some classifications and shortening it. Both, it says, would leave the workload in place and would still let people stay after the job that justified their status has ended.
Which visas the grace period proposal covers.
All eight classifications in the current paragraph, plus their dependents. Only the H-1B lets a new employer’s petition start work on filing. A worker on an L-1, an E-2 or any of the other classifications can switch employers only after a new petition is approved.
| Status | The 60 days today | Under the proposal |
|---|---|---|
| H-1B | A new employer files a petition inside the window, and work can start on filing under H-1B portability. | The new petition has to be on file before the last day of work, because status ends the day after. |
| L-1 | No portability. Only a company related to the foreign employer can file, so the window is time to change category or leave. | A change of status has to be filed while the worker is still employed, because status ends the day after. |
| O-1 | A new employer or agent files a new petition, and work starts once USCIS receipts it. | The next petition has to be filed while the current engagement still runs. |
| E-1, E-2, E-3 | Status is tied to the treaty enterprise or the E-3 employer, and the window covers the end of that role. | Status ends with the role or the enterprise activity, and the same file-first rule applies. |
| TN and H-1B1 | A new employer petitions or the worker reapplies, and work starts on approval. | A new petition or a change of status has to be filed before the last day of work. |
| Dependents (H-4, L-2, O-3, TD, E) | Keep status alongside the principal for the same window. | Lose status the same day the principal does. A work permit that depends on that status ends with it. |
DHS draws the portability line itself. An H-1B worker can begin new employment on the filing of a nonfrivolous petition. E, H-1B1, L, O and TN workers can switch employers only after the new petition is approved.
An O-1 worker who changes employer needs a new petition from the new employer or agent. The O-1 60-day grace period is the time in which that petition is filed. An L-1 worker cannot be petitioned by an unrelated company at all. So an L-1 worker who loses the job uses the 60 days to change to another status or to leave. An H-1B worker can move to any employer that files a petition, which is the main difference between an H-1B after a layoff and an L-1.
Out of status the day after the job ends, under the proposal.
The worker would be treated as failing to maintain status from the day after employment ends. DHS writes that the worker would then be "required to depart immediately unless otherwise authorized to lawfully remain in the United States." Dependents follow the principal.
The proposal restates the filing rule that applies. USCIS ordinarily grants an extension or change of status only to a worker who has maintained status up to the day the request is filed. Today the grace period keeps the worker in status for up to 60 days, so a petition or application filed inside the window meets that rule. Under the proposal a filing made after the last day of work would not, and would depend on USCIS excusing the lapse.
That leaves two paths in the text. A new employer’s petition, or a change of status to another category, filed while the worker is still employed. Or the exception in 8 CFR 214.1(c)(4) and 248.1(b), under which USCIS may excuse a late filing for extraordinary circumstances beyond the applicant’s control, decided case by case.
The proposal separates failure to maintain status from unlawful presence in a footnote. Under the USCIS guidance it cites, unlawful presence begins on the date USCIS or an immigration judge finds the status violation, if that date comes before the I-94 expires. Unlawful presence is what drives the three-year and ten-year bars. The same footnote adds that failing to maintain status "may be deemed a negative factor" in future discretionary decisions.
The proposal says little about enforcement. If USCIS learns that a worker stayed after the job ended, it would apply its existing rules on issuing a Notice to Appear. That notice is the document that starts a removal case in immigration court. One way USCIS could learn is the former employer withdrawing the petition, which the proposal mentions in a footnote. Staying after losing status is a ground for removal under INA 237(a)(1)(C)(i). DHS expects the number of people who receive a Notice to Appear because of this rule to be "very small."
Can an H-1B worker still move to a new employer after a layoff?
The proposal does not say. H-1B portability under INA 214(n) is a statute, and the text does not amend it. What the proposal removes is the regulation that keeps a worker in status after the job ends. It does not explain how a petition filed after that day would be treated for portability, extension of stay or change of status. Under the general rule, a change of employer or status after that day would depend on USCIS exercising its discretion.
DHS’s own numbers on who uses the 60-day grace period.
DHS could not count grace period users directly, because nothing is filed to claim the period. It used the closest record it has: workers whose employer withdrew their petition after the job ended. Between fiscal 2021 and fiscal 2025 that was 328,758 workers across the eight classifications, an average of 65,752 a year. The table shows what those workers did within the 60 days, according to USCIS records.
| What the worker did within the 60 days | Workers, FY2021 to FY2025 | Share of the 328,758 |
|---|---|---|
| A new employer filed a petition for the worker | 18,975 | 5.77 percent |
| The worker filed to extend or change status (Form I-539) | 5,596 | 1.70 percent |
| The worker filed a green card application (Form I-485) | 1,924 | 0.59 percent |
| The worker applied for a compelling-circumstances work permit | Not stated | Under 0.1 percent |
| No filing recorded within the 60 days | About 302,000 | About 92 percent |
DHS counts only workers whose old employer filed a withdrawal, and it does not say what the workers with no recorded filing did. The proposal states that some changed employer before the withdrawal reached USCIS, that many employers never file one, and that E, H-1B1, L and TN employers have no duty to.
Other figures in the proposal: 99 percent of those 328,758 workers held H-1B status. Their dependents averaged 208,187 a year. Between October 2017 and May 20, 2026, USCIS screened over 1.9 million petitions and applications for a possible grace period.
What the proposal leaves alone.
Several protections sit outside the paragraph being removed, and the proposal confirms each one:
- The 10-day periods. 8 CFR 214.1(l)(1) still allows up to 10 days before a petition’s start date and 10 days after its end date. Those days sit at the two ends of a petition, so they do not help a worker whose job ends in the middle of one. The proposal keeps them, and its work-permit change refers to them.
- Student and exchange periods. The F-1 post-completion period and the J-1 30-day period are separate rules and stay as they are. The F-1 duration-of-status rule cuts the F-1 period to 30 days from September 15, 2026, on its own track.
- Filings made in status. An extension or change of status filed while the worker is still maintaining status is unaffected, and the worker stays in a period of authorized stay while USCIS decides it.
- A pending green card application. A worker with a pending I-485 has an independent basis to remain, and the proposal does not change it.
- The compelling-circumstances work permit. The permit for workers with an approved I-140 whose green card number is not yet available survives. Only the timing changes: the first request has to be filed while still in status or inside a 10-day period.
When the grace period rule could take effect.
The proposal names no effective date, and a proposal binds no one. These are the stages between here and a change in the regulation:
| Stage | What happens | Date or typical time |
|---|---|---|
| 1. Proposed rule published | The Federal Register prints the notice. Nothing changes for anyone in status. | September 11, 2026 |
| 2. Public comments | Anyone can file under docket USCIS-2026-0364. DHS has to read and answer the substantive ones. | Closes November 10, 2026 |
| 3. Final rule drafted and reviewed | DHS responds to the comments and sends a final rule to the White House regulatory office. | Months, with no deadline |
| 4. Final rule published | The final text sets its own effective date, usually 30 to 60 days after publication. | Unknown |
| 5. Court challenges | A final rule can be challenged under the Administrative Procedure Act. The proposal addresses reliance interests in its own section and concludes they are outweighed. | Possible after step 4 |
Two benchmarks from DHS’s own record. The 2016 rule that created the period went from proposal on December 31, 2015 to effect on January 17, 2017. The F-1 duration-of-status rule went from proposal on August 28, 2025 to effect on September 15, 2026. Both took about 12.5 months. The proposal sets no date.
The text leaves two questions open. It does not say whether someone already inside a grace period when a final rule takes effect keeps the rest of it. It does not define the end of employment for a worker on severance pay or garden leave. Officers today infer the end date from payroll, and the proposal offers no new definition.
It is also the second H-1B rulemaking in three weeks. The $103,265 H-1B fee proposal published on August 25 with comments closing September 24. Separate dockets, separate deadlines. Check the docket for the live posture before relying on any of this for a real decision.
What to do before the last day of a job.
Nothing in the proposal changes a case today. The steps below follow from the text of the proposal and the regulations it cites:
- Check the I-94 date against the petition. The grace period, while it lasts, ends at the I-94 date if that comes first, and any later filing is measured against the same date.
- Keep dated proof of when a job starts and ends. Offer letters, termination notices and final pay stubs. DHS says its officers infer end dates from payroll records because nothing standard proves them.
- If a new employer is in play, file while you are still employed. A petition filed while you hold status meets the maintained-status requirement for an extension or change of status. The proposal does not say how a petition filed after the last day would be treated.
- Know your independent bases to stay. A pending I-485, an approved I-140 with a compelling-circumstances permit, or a spouse’s own status can each carry a family past a job loss. Check which ones you hold before you need them.
- On an L-1, know that no outside employer can file for you. Only a company in the same corporate group can petition, so the options inside the window today are a change to another status or departure.
- If the employer ends an H-1B or O-1 job early, it owes the return trip. Under 8 CFR 214.2(h)(4)(iii)(E) and (o)(16), an employer that dismisses an H-1B or O-1 worker early is liable for the reasonable cost of return transportation abroad. The proposal’s cost table repeats that duty.
- Comment by November 10, 2026. File at regulations.gov under docket USCIS-2026-0364, in English, citing the section you are answering and any data you have. DHS says those comments help it most. Every submission is posted publicly, so leave out anything private.
Common questions
No. The 10-day periods in 8 CFR 214.1(l)(1), up to 10 days before a validity period starts and 10 days after it ends, stay as they are. DHS points out in the proposal that those days apply only around the edges of a petition, never to a job that ends in the middle of one, so they do not replace the 60-day period.
Yes. A dependent’s status follows the principal worker’s, so under the proposal an H-4, L-2, O-3, TD or E spouse or child would fall out of status on the same day the worker does. A work permit that depends on that status would end with it. DHS counts 208,187 dependents a year.
Comments go to regulations.gov under DHS Docket No. USCIS-2026-0364 by midnight Eastern time on November 10, 2026. A comment must be in English or carry a translation, and DHS says the most useful ones name the section they respond to, explain the change they ask for, and bring data or authority. Every comment is posted publicly.
Yes, once it is final. A final rule can be challenged under the Administrative Procedure Act. The proposal argues that workers’ and employers’ reliance on the period is outweighed by its goals. It cites a 2025 Supreme Court decision holding that a belief about how an agency will use its discretion is not a serious reliance interest.
No. The F-1 60-day post-completion period sits in 8 CFR 214.2(f)(5)(iv) and the J-1 30-day period in 214.2(j)(1)(ii). The proposal names both and leaves them alone. The separate F-1 duration-of-status rule cuts the F-1 period to 30 days from September 15, 2026, on its own track. This rule covers only the eight employment classifications.
Sources
- Eliminating the Discretionary 60-day Grace Period, FR Doc. 2026-18631 (proposed rule)Department of Homeland Security · September 11, 2026
- DHS Docket No. USCIS-2026-0364 (public comments)Regulations.gov
- 8 CFR 214.1, Requirements for admission, extension, and maintenance of statusCornell Legal Information Institute
- 8 CFR 204.5, Petitions for employment-based immigrants (compelling circumstances)Cornell Legal Information Institute
- Retention of EB-1, EB-2, and EB-3 Immigrant Workers and Program Improvements Affecting High-Skilled Nonimmigrant Workers, 81 FR 82398 (final rule)Department of Homeland Security · November 18, 2016
- INA 214(n), 8 USC 1184 (H-1B portability)Cornell Legal Information Institute
- INA 237(a)(1)(C), 8 USC 1227 (deportability for failure to maintain status)Cornell Legal Information Institute
- Options for Nonimmigrant Workers Following Termination of Employment (archived)U.S. Citizenship and Immigration Services · January 24, 2025
- Unlawful Presence and InadmissibilityU.S. Citizenship and Immigration Services
