DHS Proposal to End 60-Day Grace Period: 2026 Deadline

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Here’s something every foreign worker in the U.S. needs to know about right now. DHS just proposed a rule that would kill the 60-day grace period for E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN workers. Lose your job today, and under this rule? You might have to leave almost immediately. No cushion. No time to job hunt or switch status. We’re talking about hundreds of thousands of workers and their employers getting hit by this. Public comments close November 10, 2026, and as of October 29, 2026, over 26,000 people have already weighed in on the Federal Register. If you or your employees fall into one of these visa categories, keep reading. We’ll break down what’s happening and what you can actually do about it.

Background: What This Means

Since 2017, workers in these visa categories have had breathing room. Up to 60 days (or until your authorized stay ends, whichever comes first) to find a new sponsor, switch visa categories, or pack up and leave the right way. This isn’t some obscure rule — it covers H-1B specialty workers, L-1 transferees, E-1 and E-2 treaty holders, E-3 workers from Australia, O-1 extraordinary ability folks, TN professionals under USMCA, and H-1B1 workers from Chile and Singapore. That’s a lot of people.

Now DHS wants to wipe that grace period out completely. Their argument? The grace period was never required by law in the first place, and getting rid of it creates “clearer departure expectations.” Sounds reasonable on paper. But here’s the real impact: lose your job unexpectedly, and you could be out of status almost overnight. No two-month buffer. No time to regroup. Want to read the proposed rule yourself or submit a comment? Head to USCIS.gov and the Federal Register’s public comment portal. We’d encourage you to — your voice matters here.

How This Affects Nonimmigrant Workers and Employers

If this rule is finalized as proposed, the practical effects could be significant:

• Workers laid off or terminated may have very little time to find a new employer willing to file a transfer petition, or to change status before they fall out of lawful status.
• Families on dependent visas (such as H-4 or L-2) could face the same compressed timeline, since their status often depends on the principal worker’s status.
• Employers who sponsor H-1B, L-1, E-1, E-2, or other nonimmigrant workers may need to move faster on internal transfers, amended petitions, or offboarding procedures to help avoid unauthorized presence issues for valued employees.
• Workers in specialty and investment categories, including those in H-1B specialty occupation roles, L-1A manager and executive transfers, and E-2 treaty investor status, should pay close attention, because these are among the categories named directly in the proposed rule.

It is important to understand that this is still a proposed rule. It has not been finalized, and no effective date has been set. However, DHS could move to finalize it after the comment period closes, so planning ahead is reasonable even before any final decision.

What You Should Do Now

Whether you are a worker or an employer, there are concrete steps you can take while this rule is pending:

1. Submit a public comment. Anyone can submit a comment on the proposed rule through the Federal Register before the November 10, 2026 deadline. Comments can describe real-world effects on workers, families, and businesses.
2. Review your current visa status and timeline. Know your visa expiration date, your employer sponsorship status, and any pending petitions.
3. Talk to your employer early. If a layoff or role change is possible, ask your employer about timing for a transfer petition or amendment before any job separation happens.
4. Explore backup options. This may include a change of status, a different employment-based category such as employment-based visa options, or, where eligible, a family-based path.
5. Keep records organized. Keep copies of approval notices, pay stubs, termination letters, and visa documents in one place so you can act quickly if needed.
6. Monitor the final rule. Check USCIS.gov and the Federal Register regularly for updates, since the effective date and any transition provisions will be published there.

How TEZ Law Firm Can Help

TEZ Law Firm assists nonimmigrant workers and employers with status questions, visa transfers, and change-of-status filings connected to H-1B, L-1, E-1, E-2, and other employment-based categories. The firm, led by managing attorney JJ Zhang (California Bar #326666), can review your current visa timeline and help you understand the options that may be available if your employment ends. TEZ Law Firm can also assist employers with timing questions around petitions and transfers for affected employees.

Frequently Asked Questions

If you hold an H-1B, L-1, E-1, E-2, or other nonimmigrant work visa and want to understand how this proposed rule could affect your situation, you can reach out to TEZ Law Firm to schedule a consultation. The firm serves clients nationwide and can discuss your visa timeline, employer sponsorship questions, and possible next steps.

This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Laws and agency practices change; contact TEZ Law Firm (West Covina, California) at 626-888-6856 or [email protected] about your situation. Prior results do not guarantee a similar outcome.