Looming US Visa Shake-Up: H-1B Workers Risk Losing Crucial 60-Day Grace Period After Job Loss

In a development sending shockwaves through the global tech industry and international workforce, the United States administration is evaluating a proposal to scrap the crucial 60-day grace period granted to foreign workers following job termination.

The regulatory proposal is undergoing formal review at the White House Office of Management and Budget (OMB). If approved and implemented, the policy shift reported by NDTV World would hit skilled non-immigrant visa holders—predominantly Indian professionals—who rely on the two-month cushion to secure new employment or adjust their status.

Immediate Departure Risk For Terminated Employees

Under the regulatory framework established in 2017, non-immigrant visa holders on H-1B, L-1, O-1, E-1, E-2, E-3, H-1B1, and TN status are granted up to 60 consecutive calendar days (or until their authorized validity period expires) following employment termination. This grace period provides vital time to secure a new sponsoring employer, transfer visa petitions, switch to alternative visa classifications, or arrange departure.

Eliminating this safety net would force laid-off foreign workers and their dependent family members to leave the US immediately after their employment ends. Unless US Citizenship and Immigration Services (USCIS) exercises specific, individual discretion, affected individuals would be unable to file for a change of status or transfer to a new employer from within the country once their last day of work passes.

Indian Tech Professionals Face Massive Exposure

The proposed regulatory overhaul carries severe implications for the Indian diaspora in the United States. Official USCIS statistics reveal that beneficiaries born in India accounted for 71 per cent of all approved H-1B petitions in fiscal year 2024, underlining the community's heavy reliance on employment-linked non-immigrant visas.

Given that tech hiring processes often involve multi-stage technical assessments lasting several weeks, finding a new employer willing to sponsor an H-1B transfer without a grace period becomes virtually impossible.

While the proposal remains under active review by the OMB and has not yet been enacted into law, immigration attorneys are already advising foreign workers to prepare contingency plans, maintain updated documentation, and track employer petition filings closely amidst shifting US immigration policies.