US to End 60-day Grace Period Granted to Foreign Workers Who Lose Jobs

The proposed rule would affect several categories of temporary foreign workers, including those holding H-1B and H-1B1 visas,

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The current grace period, introduced in 2016 and effective the following year, was intended to give workers facing an unexpected job loss time to find another employer, pursue an eligible change of status or prepare to depart the United States.

Who Will be Affected by Changes

The proposed rule would affect several categories of temporary foreign workers, including those holding H-1B and H-1B1 visas, as well as L-1, O-1, E-1, E-2, E-3 and TN classifications. Dependents could also be affected.

For H-1B workers, the change could be particularly consequential. The visa is widely used by technology companies and other employers to hire highly skilled professionals from abroad, including large numbers of Indian workers.

Under the current system, an eligible H-1B worker whose employment is terminated can generally use the 60-day window to secure another position and have a new employer file the appropriate paperwork. The period can also provide time to explore other immigration options or arrange an orderly departure.

Without the grace period, losing a job could create an immediate immigration problem. Workers could have little time to secure another lawful status or leave the country before facing the consequences of remaining after their authorized stay ends.

The proposed end to the 60-day grace period comes as the Trump administration considers several changes that could make the U.S. temporary-worker system more restrictive and expensive.

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In March, the Department of Labor was reviewing a proposal that could raise the prevailing wages employers must pay foreign workers under programs including H-1B, H-1B1, E-3 and the PERM labor-certification process.

The prevailing-wage system sets minimum salary levels according to factors such as occupation, experience and location. Higher wage requirements could increase employers’ costs and make some lower-paid H-1B positions less attractive, particularly for smaller companies and early-career professionals.

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