The Trump administration has proposed eliminating the 60-day grace period currently available to certain temporary visa holders, including H-1B workers, after they lose their jobs in the US.
Under the proposed rule from the US Department of Homeland Security (DHS), H-1B and certain other nonimmigrant workers could no longer automatically remain in the country for up to 60 days after their employment ends. The proposal seeks to restore the earlier policy under which an individual's nonimmigrant status was directly tied to the employment or activity that formed the basis for their admission.
H-1B Workers Could Face Faster Exit After Job Loss
The existing rules provide H-1B workers and certain other visa holders with a discretionary grace period of up to 60 days after their employment or qualifying activity ends. During this period, workers can look for another employer willing to sponsor them or pursue another immigration option.
DHS is now proposing to remove this provision from the regulations.
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The proposed change would affect not only H-1B workers but also certain holders of E-1, E-2, E-3, H-1B1, L-1, O-1 and TN classifications, as well as their eligible dependants. Under the proposed framework, the end of the employment or activity that supports the visa status would once again have a more direct impact on the worker's lawful status.
Potential Impact On US Tech Industry
The proposal could have significant implications for US technology companies and other businesses that rely heavily on skilled foreign workers.
H-1B workers who lose their jobs would have less time to secure another sponsoring employer or arrange an alternative immigration status. Companies making layoffs could also face greater pressure to quickly address the immigration status of affected employees.
DHS acknowledged that the proposed change could cause some disruption for businesses employing these workers, but argued that some of the affected positions could instead be filled by American workers. In certain circumstances, workers who leave the US could potentially return later if a new employer files a successful petition on their behalf.
DHS Says Proposal Would Reduce Administrative Burden
The DHS proposal says eliminating the grace period would restore a direct relationship between an individual's nonimmigrant status and the specific employment or activity that qualified them for admission or status.
The department also said the move would reduce administrative burden.
The proposed rule comes as the Trump administration continues to pursue tighter immigration policies, with employment-based immigration and the use of foreign skilled labour remaining politically sensitive issues.
What Happens Next?
The measure is currently a proposed rule rather than a final change to immigration law. The proposal has been published for public inspection and comments, meaning it will go through the regulatory process before DHS can issue a final rule.
For H-1B workers, the immediate implication is that the existing 60-day grace period remains available unless and until the proposed rule is finalised and takes effect.
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