The Department of Homeland Security (DHS) is moving forward with a proposed rule that could eliminate the discretionary 60-day grace period currently available to certain nonimmigrant workers following the termination of employment.

On Aug. 27, the White House Office of Information and Regulatory Affairs (OIRA) completed its review of the DHS proposed rule titled “Eliminating the Discretionary 60-day Grace Period.” The completion of OIRA review clears the way for DHS to publish the proposed rule in the Federal Register.

Under current regulations, certain nonimmigrant workers, including individuals in H-1B, L-1, O-1, TN, E-1, E-2, and E-3 status, may be granted a discretionary grace period of up to 60 consecutive days following the end of employment, or until the end of their authorized validity period, whichever is shorter. This period can provide foreign national workers with valuable time to find new employment, have a new employer file a petition on their behalf, change status, or make arrangements to depart the United States.

Importantly, there is no change to the 60-day grace period at this time. The proposed rule has not yet been published in the Federal Register, and the details of DHS’s proposal are therefore not yet available. Once published, the proposed rule is expected to provide additional information regarding the scope of the proposed changes and will generally be followed by a public comment period before DHS may proceed with a final rule.

If finalized, elimination of the grace period could have significant implications for both foreign national workers and employers, particularly in situations involving layoffs, terminations, or transitions between employers. Employers may need to move more quickly when onboarding foreign national workers following the end of employment with another company.