DHS Proposes Ending 60-Day Grace Period for H-1B and L-1 Visa Holders
DHS proposes ending the 60-day grace period specifically for H-1B and L-1 visa holders after job loss.
Why it matters: This change impacts legal professionals advising corporations on immigration compliance and workforce risk management. It shortens the window for visa holders to find new employment or change status, increasing enforcement risks and requiring updated counsel.
- On August 11, 2026, DHS published a proposed rule to eliminate the 60-day grace period for H-1B and L-1 visa holders.
- Currently, this grace period allows these workers to remain in the U.S. up to 60 days after job termination to seek new employment or adjust status.
- DHS contends eliminating the grace period will prevent unauthorized employment and maintain lawful status limited to active employment.
- The rule is open for public comment before finalization; implementation details and impacts on other visa categories remain pending.
On August 11, 2026, the Department of Homeland Security (DHS) proposed a rule to end the 60-day grace period for certain employment-based nonimmigrant visa holders, specifically H-1B and L-1 categories. The grace period currently allows visa holders to stay in the U.S. for up to 60 days following job loss to find new employment or seek a change of status.
DHS argues that eliminating this period will "ensure nonimmigrant workers maintain lawful status only while they are actively employed," thereby tightening immigration compliance and reducing periods when visa holders might remain without proper authorization. A DHS statement cited the reform as critical to strengthening immigration system integrity.
For legal practitioners and corporate counsel, the proposal necessitates reassessing risk management strategies and advising clients on narrower timelines for maintaining lawful presence and work authorization. The acceleration of status transitions or departures after job loss could increase legal exposure if planning is inadequate.
While the proposal explicitly targets H-1B and L-1 visa holders, DHS has left open the potential effect on other visa categories pending further analysis. The public comment period, lasting until October 10, 2026, invites stakeholders to weigh in on the proposed changes before DHS finalizes the rule.
For primary source details, review the Federal Register notice from DHS. Secondary coverage is available, but primary regulatory filings provide the most authoritative insight.
By the numbers:
- August 11, 2026 — DHS published the proposed rule
- 60 days — Current grace period after job termination for H-1B and L-1 visa holders
- October 10, 2026 — Deadline for public comments on the proposal
Yes, but: The proposal’s impact could vary depending on final rule language and whether DHS extends changes to other visa categories beyond H-1B and L-1 holders.
What's next: The public comment period closes October 10, 2026; DHS will review feedback before issuing a final rule, expected in late 2026 or early 2027.