DHS Proposes Eliminating the 60-Day Grace Period: What Employers Should Know

Sep 14, 2026 | Immigration Updates

For global mobility, HR, talent acquisition, and in-house immigration teams, the time between an employee’s departure and their next immigration step can be critical. A new DHS proposal could significantly narrow that window, with implications for recruiting, workforce transitions, and employee support.

The Department of Homeland Security has released a proposed rule that would eliminate the discretionary grace period of up to 60 days available to certain nonimmigrant workers after qualifying employment ends.

The proposal does not change the rules currently in effect. The existing grace period remains available under current regulations unless and until DHS issues a final rule that takes effect.

What Does the Current Grace Period Allow?

Under current regulations, workers in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN status, along with qualifying dependents, may receive a discretionary grace period following a voluntary or involuntary end to qualifying employment.

The period is limited to 60 consecutive days or the remaining validity of the individual’s authorized stay, whichever is shorter, and is available once during each authorized validity period.

During this time, eligible individuals are not considered to have failed to maintain status solely because their employment ended. This provides an opportunity to pursue new employer sponsorship, request a change of status, or arrange departure from the United States. The grace period itself does not authorize employment.

For employers, this framework can provide valuable time to assess a candidate’s immigration options and coordinate an eligible transition to new employment.

What Would Change?

DHS proposes removing the regulation that establishes the 60-day grace period. If finalized as proposed, affected workers and their dependents would lose this protection after qualifying employment ends.

DHS states that individuals would generally need to depart immediately unless otherwise authorized to remain. The proposal also acknowledges that some individuals who remain after employment ends could face a Notice to Appear, which initiates removal of proceedings. These are potential consequences of a future final rule if finalized as published.

What Should HR, Global Mobility, and Talent Acquisition Teams Consider?

Although no immediate policy change is required, the proposal gives employers an opportunity to review how they incorporate immigration considerations into workforce decisions.

Impact on current employees:

  • Bring immigration counsel into employment transitions earlier.
    When a resignation, layoff, or other separation is anticipated, involve counsel before the employment end date whenever possible. Earlier review can help identify available options for the employee and affected dependents.
  • Keep employee communications accurate.
    Employees may interpret headlines as an immediate loss of protection. Communications should clearly distinguish the proposal from current requirements and direct employees to individualized immigration guidance. Avoid promising that every employee will receive the full 60 days, since the existing grace period is discretionary.

Impact on hiring of new candidates who have already left a prior employer:

  • Review recruiting and onboarding timelines.
    Talent acquisition teams should flag candidates whose sponsored employment has ended or is expected to end. If the proposal becomes final, employers would have less time to complete sponsorship steps after a candidate leaves a prior role. Immigration review should inform proposed start dates and transition planning, factoring in whether international travel and/or visa interviews are required to activate the approved petition with the new employer.
  • Conduct contingency planning for employees in dependent status.
    Under the new regulations, dependents’ grace periods would be impacted. A spouse whose status is tied to the terminated principal worker would fall out of status at the same time. Take this time to develop alternative strategies that would secure independent work authorized status for H-4, L-2, or E-1/2/3S  employees.  
  • Strengthen coordination across teams.
    Review how HR, recruiting, global mobility, and legal teams communicate changes affecting sponsored employees. Clear escalation procedures can help ensure that time-sensitive immigration questions reach the right people promptly.
  • Assess the business impact.
    Consider how a shorter transition window could affect hiring, project continuity, relocation costs, and employee retention. Documenting these impacts may also help inform DHS by submitting comments.

What Happens Next?

The proposal was published on September 11, 2026, with a 60-day comment period through November 10, 2026. Comments may be submitted through the Federal eRulemaking Portal under DHS Docket No. USCIS-2026-0364. DHS specifically invites feedback on reliance interests, including business arrangements and decisions employees and families have made based on the existing grace-period framework. Following the comment period, DHS must consider the feedback before issuing a final rule. Any final rule would establish an effective date.

How WR Immigration Can Help

Preparing for a potential change starts with understanding where your organization relies on the current transition window. WR Immigration can help employers assess workforce implications, review hiring and separation procedures, and evaluate options for affected employees and their families.

Contact your WR Immigration team to discuss how this proposal could affect your mobility program and workforce planning.

Subscribe to the WR Immigration Newsletters

Start the RFP Process

Join the Corporate Benchmarking Roundtable

Request an Attorney Consultation

Related Posts:

Immigration Update

In this edition, find the latest news on filing adjustment of status applications for EB-5 investors, ICE’s announcement of the extension of I-9 flexibilities, OFLC’s announcement of a new submission process for H-2B applications, DHS’s details on the ‘Uniting for Ukraine’ process, and more.   Concurrent or Subsequent Filing of Adjustment...

Immigration Update

In this edition, find the latest news on USCIS Filing Tips, Affirmative Asylum Applications, Consular Fee Rule, updates and more! USCIS Releases Filing Tips for Supporters and Beneficiaries of Uniting for Ukraine and for Cubans, Haitians, Nicaraguans, and Venezuelans U.S. Citizenship and Immigration Services (USCIS) released filing tips for supporters...