US Proposes Eliminating 60-Day Grace Period for H-1B Workers

The Trump administration is proposing to eliminate the 60-day grace period for H-1B workers, which would make it harder for foreign professionals to transition between employers in the US. The proposal, titled 'Eliminating the Discretionary 60-day Grace Period', has cleared review by the White House Office of Information and Regulatory Affairs (OIRA) on August 27. However, nothing has changed yet for H-1B workers.

The current system allows certain highly skilled foreign workers to receive up to 60 consecutive days - or until their authorised validity period expires, whichever comes first - to find another sponsoring employer, seek a change of status, or prepare to leave the US. The provision covers several categories, including H-1B, L-1, O-1, E-1, and E-3 visas.

Immigration lawyers warn that eliminating the grace period would significantly tighten the rules for H-1B workers and could disproportionately affect Indian professionals, who account for 71% of approved H-1B petitions in FY2024. The Trump administration has also proposed a $103,265 fee for new cap-subject H-1B petitions.

Employers should be aware that, if finalized, the proposal could materially affect immigration planning surrounding terminations, reductions in force, voluntary departures, and employee transitions between employers, according to Sarah Schroeder of DiRaimondo & Schroeder. Foreign nationals contemplating a change in employment should seek immigration advice promptly rather than relying on the availability of the full 60-day period.