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Is the 60-day grace period for H1B, L1, and O1 visa holders being removed?

By Shachi Mall· October 7, 2026Updated October 2026· 2 min readH1B Work Visa

If you are on an H1B, L1, or O1 visa and you lose your job, you currently have 60 days to find new employment before your legal status is affected — but that window may be under threat. Here is what the latest DHS proposal actually says, who it covers, and why you do not need to panic just yet.

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What is being proposed and who does it affect?

The Department of Homeland Security has put forward a proposal to remove the 60-day grace period that currently protects workers on H1B, L1, O1, and V visas. Right now, if you quit your job, lose your job, or change employers, that 60-day window gives you time to find new employment and remain in legal status while you do. This proposal, if it moves forward, would take that buffer away — meaning you could be required to leave the United States immediately upon losing your job.

Importantly, this proposal does not only apply to primary visa holders. Dependents are also covered — so if you are on an H4, L2, or O3 visa, this proposed rule affects you too.

Why was the 60-day grace period introduced in the first place?

The grace period was originally created to benefit both workers and employers. The idea was that if you lost your job, you would still have time to find new employment and maintain your non-immigrant status — which in turn gave employers access to a broader, more stable talent pool. It was designed to keep skilled workers in the system rather than forcing an abrupt departure every time there was a job change.

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Why does DHS want to remove it?

The proposal argues that when the grace period was introduced, the rule makers did not sufficiently consider its negative effects. The report concludes that those negative effects outweigh the benefits. Specifically, it points to increased administrative burden on USCIS — the agency has to track and verify that each person is still within their grace period and has not overstayed it, which adds significant processing work.

What I find striking about this analysis is that it does not appear to take into account that H, L, O, and V visas are dual intent visas. That means these visas are designed not just for temporary work in the US, but also to allow holders to live there and work toward a green card and permanent residency. Removing the grace period has implications that go well beyond a simple job transition — it affects long-term immigration pathways.

Should you be worried right now?

The short answer is no — not immediately. This is still only a proposed rule. The official Federal Register has set a public comment period running until November 10th, 2026. After those comments are received, further steps will be taken before anything becomes law. Nothing is changing right now, and if this proposal does come into effect, it will not be before next year at the earliest.

That said, this is something worth watching closely. I will be tracking every development on this and sharing updates as they come through. If you want access to the full Federal Register report with the complete cost-benefit analysis and the numbers of people potentially impacted, feel free to reach out and I can send it your way.

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Shachi Mall, U.S. visa interview preparation expert

Shachi Mall

U.S. visa interview preparation expert. Has helped 1000+ applicants prepare for F1, B1/B2, H1B, L1 and other non-immigrant visa interviews using the STAMP method.

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