The US Department of Homeland Security (DHS) is reviewing a proposal that would eliminate the 60-day grace period available to certain non-immigrant workers after their employment ends. The proposal is currently under review at the Office of Management and Budget (OMB) and has not yet become law.
If implemented, the change could have significant consequences for Indian professionals, who make up a large share of the US H-1B workforce.
What is the 60-day grace period?
Under current rules, eligible foreign workers whose employment is terminated can generally remain in the US for up to 60 days — or until the end of their authorised stay, whichever comes first.
The window is particularly important for H-1B workers because their immigration status is closely tied to employment. During the grace period, a worker can look for a new job and have a prospective employer file the necessary paperwork, or explore another lawful immigration status.
The proposed rule would remove this flexibility.
However, the proposal would still have to clear federal review, be formally published and go through a public-comment process before it could take effect.
Which visa holders could be affected?
The proposed change is not limited to H-1B workers. The current grace-period provision covers several categories of non-immigrant workers, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN visa holders, as well as eligible dependants.
For Indian professionals, however, the H-1B category is likely to be the biggest concern.
The visa is widely used by Indian technology professionals working for major US companies and IT services firms. A sudden job loss can already create considerable uncertainty; removing the grace period would make the situation much more time-sensitive.
Why Indians could feel the impact more sharply
Indian nationals have historically accounted for a substantial proportion of H-1B workers. That makes any major change to the programme particularly relevant to Indian professionals in the US.
The 60-day period has effectively provided a buffer after layoffs. A worker who loses a job can use that time to interview, negotiate an offer and complete the immigration process with a new employer.
Without that window, a layoff could potentially trigger an immediate immigration crisis.
An affected worker could have to leave the US rather than remain in the country while searching for another employer. The proposal could also make it harder to switch employers from within the US unless immigration authorities approve an exception or otherwise forgive the lapse in status.
For Indian professionals who have spent years building careers in the US — and may have homes, families, children in schools and other financial commitments there — the consequences could extend well beyond employment.
Layoffs could become far more disruptive
The biggest change would be the loss of time. Under the existing system, an H-1B worker facing termination can immediately begin searching for another position while remaining in the US. The proposed system could turn that process into a much more abrupt decision: find a qualifying immigration solution almost immediately or prepare to leave.
That could put foreign workers at a disadvantage during periods of mass layoffs, particularly in sectors such as technology where hiring can take weeks or months.
It could also affect workers whose employment ends unexpectedly because of restructuring, business closures or other circumstances.
What happens to the proposal next?
The proposal is still at an early stage. It is currently under review by the OMB. If it clears that stage, it would have to be formally published, followed by a public-comment period of roughly 30 to 60 days. The government would then have to consider comments before issuing a final regulation.
In other words, the 60-day grace period has not been abolished yet.
For Indian H-1B holders, that distinction is important. Existing rules continue to apply unless and until a final rule takes effect.
The proposal comes at a time when US immigration rules are already under intense scrutiny, particularly for skilled foreign workers. For Indian professionals, the potential elimination of the grace period would not necessarily make it impossible to change jobs — but it could dramatically reduce the time available to do so. What was once a two-month job-search window could become an immediate immigration deadline.