According to reports from multiple media outlets, the Office of Management and Budget (OMB) in the United States is currently reviewing a proposed regulation. This regulation would eliminate the 60-day grace period for certain principal nonimmigrants and their dependents, provided that the employment of the principal nonimmigrant is terminated before the end of their period of stay.
Once the proposal passes OMB review, it will be published in the Federal Register to solicit public comments.
If the 60-day grace period is canceled, foreign nationals (and their dependents) whose employment relationships are terminated early will no longer have legal status and are typically required to leave the United States immediately. They would also be unable to change status or employers within the U.S. unless the U.S. Citizenship and Immigration Services (USCIS) chooses to waive the status termination.
The 60-day grace period was established by regulation in 2016 and went into effect in early 2017. Under this provision, nonimmigrants of the E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN categories and their dependents are not automatically considered out of status solely due to the termination of the visa holder’s employment.
The grace period is for 60 days or until the expiration date on the visa holder’s I-94 form, whichever is shorter. Each valid application is entitled to one grace period within the valid period, with the Department of Homeland Security (DHS) having the authority to refuse or shorten the grace period, though such cases are rare.
The establishment of the grace period was intended to mitigate the negative impact of unemployment on immigration status. It allows individuals affected by job loss to seek alternative employment within the same nonimmigrant category or change status without needing to leave the U.S. or make preparations for departure, irrespective of whether the unemployment is voluntary or involuntary.
Once the proposal to eliminate the grace period passes federal review (which may take several months or longer), it will be published and a 30- to 60-day period will be provided for public comment. Employer feedback is crucial for the government to understand the potential impact of the proposal on the business sector.
The final rulemaking process typically takes several months. The regulation will not take effect until the final rule is published.
(Note: This article draws information from a report by Fragomen)