DHS Proposes Eliminating 60-Day Grace Period for H-1B, L-1, TN, and Other Nonimmigrant Workers After Job Loss
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If you’re in the U.S. on an H-1B, L-1, O-1, TN, E-1, E-2, E-3, or H-1B1 visa, pay attention. On August 6, 2026, DHS quietly submitted a proposed rule that could change everything the moment your job ends. We’re talking about the elimination of the 60-day grace period — the window that currently gives nonimmigrant workers time to find a new employer, switch status, or make an orderly exit after a layoff or termination. This rule — RIN 1615-AD22 — isn’t final yet. But if it is, losing your job could mean losing your lawful status at the same time. No buffer. No runway. This is serious. Whether you’re a worker whose visa is tied to your employer, or a business sponsoring foreign national employees, you need to understand what’s at stake right now. Our team is here to help — see how we can protect your immigration status. Protect your rights — we handle the rest.
Background: What Is the 60-Day Grace Period and What Does This Proposed Rule Mean?
Back in 2017, DHS codified the 60-day grace period as part of a final rule designed to give high-skilled workers a fair shot when employment ends unexpectedly. Under current rules, if you’re on an H-1B, L-1, O-1A, O-1B, TN, E-1, E-2, E-3, or H-1B1 visa and you get laid off, terminated, or separated from your sponsoring employer, you have up to 60 days — or the remainder of your authorized validity period, whichever comes first — to find a new sponsor, file a change of status, or wrap things up before leaving the country. It’s not a luxury. For most people, it’s the only thing standing between them and an immediate status problem.
On August 6, 2026, DHS sent proposed rule RIN 1615-AD22 to the White House Office of Information and Regulatory Affairs (OIRA) for review. If OIRA signs off and the rule clears the notice-and-comment process, that grace period is gone. Completely. That means if your employment ends — layoff, company closure, a visa transfer that doesn’t go through — you’d have no automatic buffer before falling out of lawful status. And it’s not just you. Dependents on H-4, L-2, O-3, or TD visas would be caught in the same trap, since their status flows directly from yours.
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It is important to note that as of August 22, 2026, this remains a proposed rule. It has not yet been published in the Federal Register for public comment, and it has not been finalized. However, given the current regulatory environment, immigration practitioners and advocacy organizations including AILA and ILRC are urging workers and employers to prepare as if finalization could occur quickly.
How This Affects H-1B, L-1, TN, and Other Nonimmigrant Workers
The practical consequences of eliminating the grace period are severe and far-reaching. Here is what different groups of visa holders should understand:
- H-1B Workers: Specialty occupation workers in technology, healthcare, finance, engineering, and other fields who are laid off would lose their lawful status on the day of termination. With no grace period, there would be no time to negotiate a new sponsorship offer, file a transfer petition, or transition to another status like O-1 or EB-1.
- L-1 Intracompany Transferees: L-1A managers and executives and L-1B specialized knowledge workers could face immediate status loss if their employer closes the U.S. office or initiates layoffs. Corporate restructuring could have devastating immigration consequences overnight.
- TN Visa Holders (Canadian and Mexican Professionals): TN workers in USMCA-covered professions such as engineers, accountants, and scientists would face the same abrupt loss of status, with no window to convert to another category.
- O-1 Extraordinary Ability Workers: Artists, athletes, researchers, and business professionals on O-1 visas whose project-based employment ends unexpectedly would have no protected transition window.
- E-1, E-2, and E-3 Visa Holders: Treaty traders, investors, and Australian specialty workers could face immediate unlawful presence accrual, affecting future immigration applications.
- Dependents: Spouses and children on H-4, L-2, O-3, E derivative, or TD status would simultaneously fall out of status, including those with H-4 EAD work authorization.
Beyond individual workers, employers should also take note. Companies that sponsor foreign national employees could face increased liability exposure if workers fall out of status during a termination process and allege they were not properly notified of the immigration consequences.
What You Should Do Right Now to Protect Your Immigration Status
The time to act is before this rule is finalized — not after. Here are concrete steps every affected worker and employer should take immediately:
- Consult an Immigration Attorney Today: Do not wait for the rule to be finalized. An experienced immigration lawyer can assess your current status, identify vulnerabilities, and develop a contingency plan tailored to your situation. Schedule a free consultation with Tez Law P.C. now.
- Review Your Visa Validity and I-94: Understand exactly when your authorized stay expires and whether your status is tied exclusively to a single employer. Workers with H-1B portability rights under AC21 should review their green card timeline.
- Explore Alternative Visa Categories: Depending on your qualifications, you may be eligible for O-1, EB-1, or another category that is not employer-dependent in the same way. An attorney can evaluate your options now.
- Prepare a Change of Status Application: If you have a spouse with a different visa status, explore whether derivative status changes are available. F-1, B-2, or other filings may be worth preparing in advance.
- Employers: Update Termination Protocols: Work with immigration counsel to ensure that any employee separation process includes immediate immigration notification and referral to legal resources.
- Submit Public Comments: Once the rule is published in the Federal Register, members of the public — including affected workers and employers — have the right to submit formal comments opposing the rule. AILA and ILRC will be organizing opposition efforts. Sign up for updates.
- Document Everything: Keep detailed records of your employment, pay stubs, I-797 approval notices, and all immigration filings. If the rule is challenged in court, documentation of your status history will be critical.
Why Choose Tez Law P.C. for Your Immigration Case
At Tez Law P.C., managing attorney JJ Zhang (California Bar #326666) and our dedicated legal team understand that immigration status is not just a legal matter — it is your livelihood, your family’s security, and your future in the United States. Based in West Covina, California, we serve clients across the entire nation with comprehensive immigration services including H-1B transfers and extensions, status change applications, employer compliance counseling, and emergency immigration consultations.
We stay ahead of rapidly evolving immigration policy so you do not have to. When rules like RIN 1615-AD22 emerge, our clients are the first to know and the best prepared to respond. We also handle personal injury attorney cases, meaning we are a full-service firm committed to protecting your rights on every front.
We believe no one should face the immigration system alone, especially during a time of regulatory uncertainty. Contact us today for a free consultation and let us build your protection strategy before the rules change.
Frequently Asked Questions
Is the 60-day grace period already eliminated as of August 2026?
No. As of August 22, 2026, the elimination of the 60-day grace period is still only a proposed rule (RIN 1615-AD22) submitted by DHS to the White House Office of Information and Regulatory Affairs on August 6, 2026. It has not been published in the Federal Register for public comment and has not been finalized. The 60-day grace period remains in effect for H-1B, L-1, O-1, TN, E-1, E-2, E-3, and H-1B1 workers as of today. However, given how quickly regulations can move in the current environment, workers and employers should begin preparing contingency plans immediately.
Which visa categories would be affected if the grace period is eliminated?
The proposed rule would eliminate the grace period for workers holding H-1B, H-1B1, L-1, O-1A, O-1B, TN, E-1, E-2, and E-3 visas. Dependent family members on derivative statuses — including H-4, L-2, O-3, E derivative visas, and TD status — would also be affected, since their authorized stay is tied directly to the principal visa holder. This means an entire family’s lawful presence in the United States could be jeopardized the moment a single job ends.
What can I do right now to protect myself if I am on an H-1B or other affected visa?
The most important step you can take right now is to consult an experienced immigration attorney before any employment disruption occurs. At Tez Law P.C., we can review your current visa status, assess your eligibility for alternative visa categories, prepare change of status applications in advance, and develop a rapid-response immigration plan tailored to your circumstances. You should also review your I-94, confirm your employer’s sponsorship obligations, and stay informed about the rulemaking process so you can submit public comments when the rule is open for comment. Contact us for a free consultation today.
The immigration landscape in 2026 is moving faster than ever, and proposed rules like RIN 1615-AD22 can become law with little warning. Whether you are a technology professional on an H-1B, an intracompany transferee on an L-1, or a Canadian professional working under TN status, your ability to stay in the United States could hinge on decisions you make in the coming weeks. Do not wait until you receive a termination notice to think about your immigration options. Contact Tez Law P.C. today for a free consultation and let attorney JJ Zhang and our team build a strategy that protects your status, your family, and your future — no matter what Washington does next.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Contact Tez Law P.C. at 626-678-8677 or [email protected] for advice specific to your situation. Results may vary.