Proposed H-1B changes could limit layoff protections for visa holders

Proposed rules could shorten the post-layoff grace period

A proposed change to H-1B rules is drawing attention among foreign workers and U.S. employers. The discussion centers on what could happen after an H-1B worker loses a job, potentially changing the time available to make the next move.

The proposal is still moving through the regulatory process, and important details have yet to be settled. Here’s what the proposed changes could mean and what H-1B workers need to know.

How the current 60-day protection works

Current DHS regulations allow qualifying H-1B workers up to 60 days after employment ends, subject to the authorized-stay limit. The grace period is a maximum, not an automatic guarantee in every case.

USCIS can shorten or eliminate the grace period in individual circumstances. The existing rule therefore provides a transition period while preserving agency discretion over particular cases.

What the proposed approach could change

The reported DHS proposal would remove the regulatory 60-day grace period for certain non-immigrant workers whose employment ends. H-1B workers are among the affected categories discussed in current reporting.

The proposal is not yet a final rule, so its final language could differ. Until a new rule becomes effective, the existing 60-day framework remains in place for qualifying workers.

Why job loss matters differently for H-1B workers

H-1B status is employment-based, so a worker’s immigration status is connected to qualifying employment. A layoff therefore creates an immigration issue in addition to the loss of a paycheck.

The existing grace period gives eligible workers time to pursue another H-1B position or another lawful immigration option. Removing it would reduce that transition period.

Finding a new employer could become harder

H-1B workers who change employers can use portability rules when they meet the applicable requirements. In many cases, the new employer may file Form I-129, allowing qualifying workers to begin employment after a proper filing.

A shorter post-termination period could reduce the time available to arrange a qualifying filing. The effect would depend on each worker’s immigration status and circumstances.

Other immigration options may still exist

Some H-1B workers may have other immigration options after employment ends, but eligibility is not automatic. USCIS recognizes several pathways, including certain changes of status and employment authorization based on compelling circumstances.

The compelling-circumstances option has specific requirements, including an approved immigrant petition in qualifying situations. It is therefore not a general replacement for the 60-day grace period.

The change would not apply yet

The reported H-1B grace-period change has not been described as a final regulation in the current reporting. Federal immigration rules generally require agencies to follow a formal rulemaking process before regulatory changes take effect.

A proposal can be revised, delayed, withdrawn, or finalized after review. Workers therefore remain governed by the existing rules unless and until a change takes effect.

Interesting fact: The H-1B program was created in 1990.

The issue comes amid wider H-1B changes

The grace-period proposal comes during a broader series of H-1B policy changes. DHS has implemented a wage-level-weighted selection process for certain H-1B cap selections, while the Department of Labor has separately proposed changes to prevailing-wage methodology.

Those actions involve different rules and procedures. They should not be treated as parts of the same proposal concerning the post-employment grace period.

Interesting fact: The H-1B cap is effectively 85,000 for most cap-subject applicants.

Indian professionals could be closely affected

India-born beneficiaries represent the largest share of H-1B petitions approved by USCIS. In fiscal year 2025, beneficiaries born in India accounted for about 70 percent of approved H-1B petitions, compared with approximately 12 percent for those born in China.

Because India-born beneficiaries make up such a large share of H-1B approvals, changes affecting H-1B workers could have substantial effects on that group.

Dependents could face related consequences

H-4 status is tied to the qualifying H-1B principal’s status, so changes affecting the principal worker can also affect dependent family members. USCIS generally grants H-4 extensions for periods connected to the principal’s authorized stay.

However, an H-1B worker’s job loss does not automatically mean every H-4 dependent immediately loses status. Individual circumstances and available immigration options determine the consequences.

The proposal follows earlier layoff concerns

USCIS has previously acknowledged the effects of technology-sector layoffs on employment-based non-immigrant workers. In 2023, the agency explained that the existing 60-day grace period gives terminated workers time to find new employment or pursue other options.

That earlier guidance also noted that extending the period would require regulatory action. The current discussion concerns potentially reducing that protection instead.

Workers and employers would need to watch the process

If DHS formally proposes a rule, the text would show exactly which workers and situations are covered. A formal proposal would normally provide an opportunity for public comments before the agency decides whether to finalize the rule.

Until then, reports about a possible change do not replace the governing regulations. Employers and workers would need to rely on official notices for effective dates.

The internet is also talking about the US immigration debate intensifying over the role of deportation in reform plans.

The key question is whether DHS finalizes it

As of August 12, 2026, reporting describes the H-1B grace-period change as a proposed or considered policy, rather than an effective rule. The existing maximum 60-day grace period remains the governing protection for qualifying workers.

Any final change would need to be published through the federal regulatory process before taking effect. The final text will determine its scope and timing.

In other news, immigration detention rules face new scrutiny as Republicans target release loophole.

Could removing the 60-day grace period affect how workers handle layoffs and find new jobs? Like this slideshow and comment with your thoughts.

This slideshow was made with AI assistance and human editing.

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