New Delhi: The US government is considering ending the 60 day grace period that allows certain foreign workers to remain in the country after losing their jobs. The move could have a significant impact on H-1B workers, including the large number of Indian professionals employed in the US.
An H-1B worker is a foreign professional who works for a US employer in a specialised occupation. The visa is commonly used in fields such as technology, engineering, healthcare, finance and other specialized sectors, with the worker’s legal status generally linked to their employment.
The US homeland security department (DHS) has submitted the proposal for review by the White House Office of Management and Budget. It has not yet become a final rule, so the existing 60 day grace period remains in place.
Under the current system, eligible workers can stay in the US for up to 60 days after their employment ends. They can use this period to look for another qualifying employer, apply for a change in immigration status or make other arrangements to remain in the country legally.
If the proposal takes effect, workers could lose this additional window after a job loss. That would make it harder for those whose immigration status depends on their employment to find another job and complete the necessary paperwork in time.
For H-1B workers, the change could make layoffs particularly difficult. Workers who lose their jobs currently have the grace period to find another qualifying employer and begin the process of transferring their H-1B status.
The proposal could also affect other categories of foreign workers, including L-1, O-1, E-1, E-2, H-1B1, E-3 and eligible TN visa holders. However, the H-1B programme is likely to draw particular attention because of the large number of Indian professionals who use the visa to work in the US.
According to US Citizenship and Immigration Services data, beneficiaries born in India accounted for 71% of H-1B petitions approved in fiscal year 2024. A shorter period to find new employment could therefore affect a substantial number of Indian workers if they lose their jobs.
For workers facing layoffs, the proposed change could mean having to secure a new qualifying job or find another legal immigration option much faster. Employers and workers would also have less time to complete the immigration process following the end of employment.
There is, however, no immediate change to the current rule. The 60 day grace period continues to apply while the DHS proposal remains under review.
The proposal could still be changed or withdrawn before the US government takes a final decision. If DHS moves ahead with the measure, it would need to formally publish the rule and provide details on how and when the new system would take effect.