On Sept. 11, 2026, the U.S. Department of Homeland Security (DHS) published a proposed rule in the Federal Register that would eliminate the discretionary grace period available to certain nonimmigrant workers and their dependents when the worker’s employment ends before their authorized period of stay expires.

Background

The current grace period allows workers in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN classifications, along with their dependents, up to 60 days, or the remainder of the authorized validity period if shorter, to pursue other immigration options to maintain a lawful immigration status and, depending on the classification sought, continue or regain employment authorization. The grace period also helps U.S. employers to more easily facilitate changes in employment for existing and newly recruited nonimmigrant workers.

Key Highlights

The proposed rule would eliminate the 60-day grace period from federal regulations. According to the DHS, the proposed rule would restore a direct relationship between the expiration of a nonimmigrant worker’s status and the specific employment or activity that formed the basis of their admission or grant of status in the United States, and reduce the administrative burden associated with the grace period. Under the proposed rule, a covered worker and their dependents would be considered to have failed to maintain status the day after the worker’s employment ends and would be expected to leave the United States immediately unless separately authorized to remain. Eliminating the grace period could increase the likelihood that a worker receives a Notice to Appear, the first step in removal proceedings, particularly in categories such as H-1B, H-1B1 and E-3 status, where an employer must promptly notify the government when employment ends.

Employer Takeaway

The 60-day public comment period for the DHS’s proposed rule ends on Nov. 10, 2026. The department encourages all interested parties to submit comments on the proposed rule.

Employers should monitor updates on the proposed rule, including the publication of a final rule and any related legal challenges. If the final rule takes effect, employers relying on nonimmigrant workers may consider reviewing their hiring and immigration-related practices to avoid potential employment disruptions.

This Know Your Benefits article is to be used for informational purposes only and is not intended to replace the advice of an insurance professional. © 2026 Zywave, Inc. All rights reserved.