August 10, 2026
What You Need to Know
- DHS has sent a proposed rule, titled “Eliminating the Discretionary 60-Day Grace Period” (RIN 1615-AD22), to the White House Office of Information and Regulatory Affairs (OIRA) for review as of August 6, 2026.
- The proposal would eliminate the 60-day grace period currently available to E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN nonimmigrants (and their dependents) when the principal’s employment ends before their authorized stay expires.
- The rule is not yet public and has not taken effect. Once OIRA review concludes, DHS will publish the proposal in the Federal Register for a 30- to 60-day public comment period, and the rule will not take effect until it is finalized, a process that typically takes several months.
- The current 60-day grace period remains fully in effect. There is no immediate change for employers or affected nonimmigrants.
- Employers with large H-1B, L-1, or TN populations should begin tracking this proposal now, since its eventual finalization would materially compress the window available to respond to layoffs, reorganizations, and terminations.
The Department of Homeland Security has moved a proposed rule affecting the 60-day nonimmigrant grace period into the last stage of internal federal review before it can be published for public comment. If finalized as reported, the rule would end the discretionary grace period that currently gives certain nonimmigrant workers, and their dependents, up to 60 days to find new employment, change status, or depart the country after an employment termination. While the proposal is still months away from taking effect, employers with significant nonimmigrant workforces should understand what is at stake and begin preparing now.
What Is Changing
The proposal, as reported, would eliminate the regulatory grace period first created in 2016 and effective since January 2017. Under the existing rule, E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN nonimmigrants, along with their qualifying dependents, are not treated as having violated their nonimmigrant status solely because the principal’s employment ceased. The grace period runs for the shorter of 60 days or the remainder of the principal’s authorized stay as reflected on Form I-94, and is available once per petition validity period. DHS has always retained discretion to shorten or deny the grace period, though it has rarely exercised that discretion.
The text of the proposed rule is not yet public, so the precise scope and mechanics of the change are not known with certainty. Based on the rule’s title and the categories historically covered by the grace period regulation, the proposal appears aimed at removing the grace period altogether rather than merely narrowing it, though this will not be confirmed until DHS publishes the notice of proposed rulemaking.
Who Is Affected
The current grace period regulation, and therefore this proposal, covers principal nonimmigrants in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN status, along with their E, H-4, L-2, O-3, and TD dependents. It applies regardless of whether the underlying employment ends voluntarily or involuntarily, meaning resignations, terminations, layoffs, and expirations of a role all trigger the same grace period today.
Employers across every industry that sponsors these visa categories, and in particular organizations with large H-1B and L-1 populations subject to periodic layoffs or restructurings, would need to account for this change in how they manage offboarding and immigration compliance if the rule is finalized.
What’s Next
DHS submitted the proposal to OIRA for interagency review on August 6, 2026. OIRA review of significant rules is generally expected to run up to 90 days, though it can extend well beyond that. Once OIRA clears the proposal, DHS will publish it in the Federal Register as a notice of proposed rulemaking, opening a 30- to 60-day public comment period. DHS must then review comments and issue a final rule before any change takes effect, a process that has historically taken several months or longer for comparable immigration regulations. The current 60-day grace period remains in place throughout this process and will continue to apply unless and until a final rule says otherwise.
This proposal follows a broader pattern of DHS regulatory activity this year aimed at nonimmigrant status categories, including a separate pending proposal that would end “duration of status” admission for F-1 and J-1 nonimmigrants and shorten the F-1 grace period from 60 to 30 days. Employers should treat these as related but distinct rulemakings and monitor each on its own timeline.
Employers do not need to change any current HR or immigration practices in response to this proposal. Nothing has changed yet, and DHS has not released the draft rule text itself, only the fact that a proposal titled “Eliminating the Discretionary 60-Day Grace Period” is under OIRA review. The existing 60-day grace period remains fully in effect. We will issue a follow-up alert once the actual proposed rule is published with specifics on scope, the comment process, and the anticipated effective date.
What Employers Should Do Now
- Confirm your organization is correctly administering the current 60-day grace period today. This is a good moment to check that HR and immigration counsel are aligned on when a grace period starts, how it is calculated against I-94 validity, and how it is documented, since that practice will matter regardless of how this rule turns out.
- Flag the proposal to internal stakeholders (HR, legal, mobility) as something outside counsel is monitoring, so it does not surprise anyone when it moves.
- Hold off on any policy or process changes until the actual rule text is published. Nothing in the draft rule itself is public yet, only its existence and title, so acting on assumptions about its scope risks overcorrecting for a proposal that has not been written for public review.
- Rely on your immigration counsel to track the docket and flag the comment period when it opens; that is where employer input can actually shape the outcome.
What Foreign Nationals Should Know
Nothing has changed yet. The 60-day grace period (or the remainder of authorized stay, if shorter) continues to apply today to E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN nonimmigrants whose employment ends, and to their dependents. Individuals currently within a grace period, or who may enter one before the rule is finalized, are not affected by this proposal. Foreign nationals should continue to use the existing grace period as before, while staying alert for the eventual notice of proposed rulemaking, which will clarify whether and how the change would apply going forward.
How Goel & Anderson Can Help
Goel & Anderson regularly advises employers and employees on managing the immigration consequences of workforce reductions, terminations, and reorganizations across large, multinational nonimmigrant populations. We are monitoring this proposal closely as it moves through the rulemaking process and are available to help clients evaluate potential comment submissions and prepare offboarding protocols for whatever grace period framework ultimately emerges.
Frequently Asked Questions
Is the 60-day grace period for H-1B workers being eliminated right now?
No. DHS has only sent a proposed rule to OIRA for review as of August 6, 2026. The current 60-day grace period remains fully in effect, and no change will take effect until DHS publishes a final rule after notice and public comment.
What is RIN 1615-AD22?
RIN 1615-AD22 is the regulatory identification number DHS assigned to the proposed rule titled “Eliminating the Discretionary 60-Day Grace Period,” which is intended to eliminate the current 60-day grace period for certain nonimmigrants whose employment ends.
Which visa categories would be affected by eliminating the 60-day grace period?
As proposed, the change would affect E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN nonimmigrants and their qualifying dependents, the same categories currently covered by the existing grace period regulation.
When will the 60-day grace period rule take effect?
There is no effective date yet. The proposal must first clear OIRA review, then be published for a 30- to 60-day public comment period, and then be finalized by DHS, a process that typically takes several months or longer from publication.
Is this the same as the proposal ending F-1 “duration of status”?
No. The F-1/J-1 duration of status proposal is a separate DHS rulemaking that would end duration of status admission for students and exchange visitors and shorten the F-1 grace period from 60 to 30 days. This alert addresses the distinct proposal to eliminate the 60-day grace period applicable to E, H-1B, H-1B1, L-1, O-1, and TN nonimmigrants.
What should I do if I am laid off while this proposal is pending?
The existing 60-day grace period (or remaining authorized stay, if shorter) still applies today. Affected individuals should consult with immigration counsel promptly to evaluate options for a new sponsor, a change of status, or departure within the current grace period.
This alert is for informational purposes only and does not constitute legal advice. It reflects developments as of August 10, 2026, and may not reflect subsequent developments. If you have questions about how this proposal may affect your organization or your individual immigration status, please contact Goel & Anderson, LLC.
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