Regulatory Update: DHS Moves Forward with Proposed Rule to Eliminate the 60-Day Grace Period for Nonimmigrant Workers

The White House Office of Information and Regulatory Affairs (OIRA) has completed its review of a proposed rule from the Department of Homeland Security (DHS/USCIS) titled “Eliminating the Discretionary 60-day Grace Period” (RIN: 1615-AD22). Clearing OIRA review is the final step before DHS publishes the Notice of Proposed Rulemaking (NPRM) in the Federal Register. While the full text has not yet been released and no immediate changes take effect today, this action signals a potential shift in post-employment grace periods for nonimmigrant workers.

Current Impact: None today; the existing 60-day grace period remains fully operative.

What this means for employers & foreign national employees

Current Law: Under existing regulations, eligible high-skilled nonimmigrant workers (such as those in H-1B, L-1, O-1, and TN status) who experience an employment cessation generally have up to a 60-day discretionary grace period to secure a new sponsor, apply for a change of status, or prepare to depart the United States.

Potential Risk: If finalized as titled, the rule could eliminate or substantially curtail this 60-day buffer. Employees facing sudden separations would have significantly less time to maintain lawful nonimmigrant status, and prospective employers seeking to hire laid-off talent would face drastically compressed filing windows.

Road Ahead

• As a proposed rule, publication will open a public comment period (typically 30 to 60 days). DHS must review and respond to substantive feedback before drafting a Final Rule.
• A final rule altering this long-standing regulatory provision is widely expected to face legal scrutiny and potential court challenges.
• Any formal implementation remains months away, pending the conclusion of the standard administrative rulemaking process.

Recommended employer actions

• Do not alter current sponsorship plans or active filings solely based on this announcement.
• Loop immigration counsel into separation planning well before effective termination dates to evaluate timing, status risks, and alternative options for affected nonimmigrant employees.
• HR and talent acquisition teams should prepare for faster turnaround times when onboarding prospective hires who are transitioning between employers.

We will continue to track the Federal Register for the official publication and will provide an updated analysis once the full text and any proposed transition provisions are released.

Legislative Updates

Our Legislative Updates team is powered by Product Intelligence Managers who stay deeply connected not only with state unemployment agencies and departments of labor, but also with federal and state partners involved in employment verification, immigration compliance, and regulatory enforcement—including E‑Verify and related oversight entities. With extensive experience navigating the complex, fast‑moving landscape of HR, payroll, I‑9, and employment law, our authors monitor statutory and regulatory developments as they emerge or are being shaped behind the scenes.

 

Their expertise spans I‑9 and E‑Verify compliance, new‑hire processes, W‑2 and W‑4 requirements, payroll tax optimization, FLSA guidance, and multi‑jurisdictional employment law. Professional backgrounds include Certified Payroll Professionals and active members of organizations such as the APA, SHRM, ACC, and CPA. They bring a practitioner’s perspective to every update. Through strategic insights, best‑practice guidance, and compliance‑focused thought leadership, our team transforms complex regulatory shifts into actionable intelligence that helps employers reduce risk, streamline processes, and stay confidently compliant in an ever‑changing environment.