Washington: The United States is considering a major change to the rules governing foreign workers on H-1B visas, with the Trump administration looking at ending the 60-day grace period currently available to certain workers after they lose their jobs. If implemented, the proposed change could significantly reduce the time H-1B workers have to find another employer, change their immigration status or make arrangements to leave the country.
The proposal is being advanced by the US Department of Homeland Security (DHS) and could particularly affect skilled foreign professionals working in sectors such as technology, consulting and other specialised industries. Indian professionals are likely to be among those closely watching the development because Indians make up a substantial share of H-1B workers in the US.
Importantly, the measure is a proposed immigration change and is not yet an effective rule. The existing 60-day grace period therefore remains relevant for eligible H-1B workers unless and until a final rule changes the current framework.
What is the current H-1B grace period?
Under the existing system, eligible H-1B workers who experience a qualifying loss of employment can generally remain in the US for up to 60 days, or until the end of their authorised validity period, whichever comes first.
The window gives workers time to look for a new employer and potentially have another employer file the required H-1B paperwork. It can also provide an opportunity to explore an eligible change of immigration status or make arrangements to leave the US.
For a worker who has suddenly lost a job, 60 days can be crucial. Finding a new employer, completing interviews, receiving an offer and getting the necessary immigration paperwork organised can take weeks.
The proposed change could remove that cushion, potentially leaving affected workers with substantially less flexibility following termination.
Why the US is considering the change
The proposed policy is part of the Trump administration’s broader effort to tighten immigration rules and increase scrutiny of temporary foreign-worker programmes.
Reports indicate that the DHS is considering eliminating the existing grace period for H-1B workers who lose their jobs. The administration’s position is that the existing provision can be misused and that workers who no longer have qualifying employment should not be allowed to remain in the country for an extended period.
The proposal would therefore represent a significant change in how employment termination affects the immigration status of H-1B holders.
However, because the process is still at the proposal stage, the final form of any regulation could differ from the version currently being considered.
What could happen after an H-1B job loss?
If the 60-day window is removed, an H-1B worker who loses their job could face a much tighter timeline.
Under the reported proposal, workers could potentially be required to leave the US after their employment ends rather than automatically receiving the existing 60-day period to search for another job.
The change could also affect workers who are attempting to transfer their H-1B employment to a new company. At present, the grace period can provide valuable time for a new employer to begin the necessary process.
If the proposed rule is finalised in a restrictive form, workers may have to complete immigration-related steps much more quickly or risk falling out of status.
Reports also indicate that the proposed framework could make it more difficult for affected workers to change employers or immigration status from within the US after losing qualifying employment, unless the US Citizenship and Immigration Services (USCIS) takes steps to excuse a lapse in status.
Why Indians could be particularly affected
The proposed change is significant for Indian professionals because the H-1B programme has historically been an important route for highly skilled Indian workers to take up employment in the US.
Indian technology professionals are particularly prominent in the H-1B ecosystem, with major IT services companies and technology businesses relying on the programme to employ specialised workers.
For such professionals, losing a job can already create considerable uncertainty. Finding another employer willing and able to sponsor or transfer an H-1B petition is not always immediate.
The removal of the 60-day cushion could make that process even more difficult.
An employee who is laid off would potentially have to begin searching for a new job immediately while simultaneously dealing with immigration requirements. Families could also face additional uncertainty if the primary H-1B worker’s status affects accompanying dependants.
Indian professionals who have spent years building careers in the US could therefore be forced to consider returning to India or another country if they are unable to secure a qualifying employment arrangement within the available timeframe.
Impact on technology and skilled workers
The technology industry is expected to be one of the sectors most closely affected by any major change to the H-1B employment transition rules.
US technology companies have long used the H-1B programme to recruit specialised workers, particularly in areas where companies need specific technical expertise.
The existing grace period provides a degree of flexibility when companies restructure their workforce or employees change jobs. Removing it could make employment transitions more complicated for both workers and employers.
For employees, the immediate concern would be the reduced time available to secure another position. For companies, the change could make recruitment and retention of international workers more challenging.
Immigration lawyers and industry observers have warned that stricter rules could increase uncertainty for foreign professionals and make the US labour market less attractive to some international talent.
Proposed rule is not yet final
One of the most important points for H-1B workers to understand is that the reported change is not currently an implemented policy.
The DHS is advancing a proposal, and the regulatory process still has to progress before a final rule can take effect. The final version could potentially contain changes, exceptions or different implementation provisions.
Until a final rule is issued and becomes effective, eligible H-1B workers should not assume that the existing 60-day grace period has already been eliminated.
This distinction is particularly important because immigration decisions can have serious consequences. Workers facing termination or a change in employment should rely on current official guidance and qualified immigration advice rather than acting solely on reports about a proposed rule.
What H-1B workers should watch
If the proposal moves forward, H-1B workers will need to pay close attention to several aspects of the final regulation.
These could include the exact date on which any new rule takes effect, whether existing workers receive transitional protections, how employment termination is defined, and whether exceptions are available for specific circumstances.
Workers may also need to understand how the changes interact with H-1B portability, pending petitions and applications to change immigration status.
For Indian professionals working in the US, the development is particularly important because an abrupt job loss could have consequences extending beyond employment. Immigration status, family arrangements and long-term plans to remain in the US could all be affected.
A potentially major shift in H-1B policy
The proposal to eliminate the 60-day grace period could represent a significant tightening of the US immigration system for skilled foreign workers.
For H-1B employees, the current 60-day window can provide critical time to find another job after an unexpected layoff. Removing that period could force affected workers to make much faster decisions about employment, immigration status and departure from the US.
For Indian professionals, particularly those working in technology and other specialised sectors, the proposed change could create additional uncertainty in an already closely watched H-1B environment.
However, the measure remains under consideration and should not be treated as an immediate change to existing rules. The final outcome will depend on the US regulatory process and the provisions ultimately adopted by the government.