DHS Considers Elimination of 60-Day Grace Period Following Termination of Sponsored Employment

Aug 17, 2026 | Immigration Articles

The Department of Homeland Security (DHS) plans to propose a new rule that would eliminate the 60-day grace period currently available to noncitizen workers following termination of sponsored employment.

The 60-day grace period was added in 2017 and applies to H-1B, H-1B1, L-1, O-1, TN, E-1, E-2, and E-3 workers as well as their dependents. Currently, when an employer terminates a temporary worker in one of these categories before the end of the authorized period of stay, the worker may generally remain in valid status for up to 60 days. During this grace period, the individual may seek sponsorship with another employer, change to a new status, or arrange to leave the United States without concerns about being out of status. A grace period enables individuals to make other arrangements following an unexpected termination as well, including addressing a spouse’s employment or a child’s schooling.

If the rule is finalized as anticipated, employees who are terminated early from their positions and their family members may need to leave the United States immediately and (if they wish) apply for new status from abroad at a U.S. embassy or consular post. Where practical, employers may wish to consider providing advance notice of termination to give affected employees time to make arrangements or seek sponsorship from another employer. For H-1B employees, in certain circumstances involving employer-initiated termination, the employer must offer to pay the reasonable cost of the employee’s return transportation abroad.

The text of the proposed rule is not yet publicly available. The Office of Management and Budget is reviewing the rule before its expected publication in the Federal Register. The proposed rule is expected to be subject to a public notice-and-comment period before it becomes final.

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