Quick take: If you're on H-1B, L-1, O-1, E, H-1B1, or TN and you stop working — through layoff, termination, or resignation — you generally have a 60-day grace period to find a new sponsor, change status, or depart the US in valid status. This is the complete 2026 NRI guide to the rule under 8 CFR § 214.1(l)(2), when the clock starts, the DHS-proposed elimination (RIN 1615-AD22), and every practical step.
Current 60-Day Grace Period — Still in Effect
Under 8 CFR § 214.1(l)(2), H-1B workers (and certain other nonimmigrants including L-1, O-1, E, H-1B1, and TN) who stop working for their sponsoring employer — whether due to layoff, termination, or resignation — are generally considered to maintain their nonimmigrant status for up to 60 consecutive calendar days or until the end of their authorized validity period (usually shown on the I-94), whichever is shorter.
Key points
- The period is discretionary. USCIS usually grants the full period, but can shorten or deny it in individual cases.
- It is available once per authorized validity period of the underlying petition. Using it once typically means you don't get another full 60 days if you change jobs and are later terminated again under the same validity period.
- It applies whether the separation is voluntary or involuntary.
- You cannot work during the pure grace period. Employment authorization resumes only if a new qualifying H-1B petition is filed (under portability rules) or another status that allows work is obtained.
When the Clock Starts
The 60-day clock generally begins the day after the last day of compensable/productive employment — the last day for which you were paid for actual work.
- Severance pay, PTO payouts, or continued benefits alone usually do not extend the clock.
- If you remain on active payroll and the petition/LCA remains in effect during a formal notice or "garden leave" period, the start date can sometimes be later — this is fact-specific and should be confirmed with counsel and documentation (paystubs, termination letter, etc.).
Always check your most recent I-94 (available on the CBP website). If it expires sooner than 60 days after your last day of work, that earlier date controls.
What You Can Do During the Grace Period
1. H-1B Transfer / Change of Employer (Portability)
A new employer files a non-frivolous Form I-129. Once USCIS receives it, you can generally start working for the new employer immediately (or on the requested start date, whichever is later), without waiting for approval. Premium processing is often used to accelerate the decision.
2. Change of Status (I-539)
File Form I-539 to change to another nonimmigrant status if eligible. Common options include:
- B-2 visitor — extends legal stay while you search or plan a departure
- F-1 student — if enrolling in a full-course-load program
- H-4 dependent — if your spouse is on H-1B (and you haven't already used H-4)
A timely, non-frivolous filing can extend your period of authorized stay while it is pending.
3. Depart the United States in Valid Status
To avoid accruing unlawful presence — the safest fallback if no US-based option works within the 60 days.
4. Other Options in Some Cases
- Adjustment of status (I-485) if eligible and priority date current
- Compelling circumstances EAD (available in specific situations after job loss for certain applicants with approved I-140)
- Self-petition routes: EB-1A (extraordinary ability) or EB-2 NIW (national interest waiver)
A timely filing of a qualifying petition or application before the end of the grace period can prevent the accrual of unlawful presence even after day 60 while the case is pending.
Related Grace Periods
10-Day Grace Period
Often associated with the end of the H-1B validity period itself (up to 10 days before the start and 10 days after the end of the petition validity for admission/departure purposes). This is separate from the 60-day employment-cessation grace period.
No Extended (180-Day) Grace Period
There is no standard 180-day (or similar extended) grace period for H-1B employment termination. 60 days is the maximum available currently.
Important Pending Change: DHS Proposed Elimination (Not Yet Effective)
As of early September 2026, the Department of Homeland Security has advanced a proposed rule titled "Eliminating the Discretionary 60-Day Grace Period" (RIN 1615-AD22). It cleared White House Office of Information and Regulatory Affairs (OIRA) review around late August 2026.
The current 60-day rule remains fully in effect until any final rule is:
- Published in the Federal Register
- Completes the required process (including public comment)
- Becomes effective on the specified date
No elimination has taken effect yet. But the direction of travel matters for planning — treat any layoff in 2026-27 as if the safety net could be shorter next time.
Practical Playbook After a Layoff — First 72 Hours
- Confirm your exact last day of employment and I-94 expiration date immediately. Check I-94 on i94.cbp.dhs.gov.
- Consult an immigration attorney promptly — do not rely solely on general information.
- Review severance agreements carefully — they can affect timing and rights (non-compete, cooperation clauses, tax implications).
- Act quickly on job search + transfer filings (premium processing is often used), or status-change options.
- Document everything — termination notice, final paystubs, communications with HR.
- Dependents (H-4, etc.) are generally tied to the principal's status and the same grace period framework.
Common Scenarios & What to Do
Scenario 1: Laid off mid-cycle from a tech company
60-day clock starts day after last paid work day. Priority: find another H-1B sponsor and file I-129 with premium processing. If new employer identified within 30 days, transfer typically completes in time.
Scenario 2: Layoff + no immediate job option
File I-539 to change to B-2 (visitor) status before day 60 to preserve legal stay. This buys additional time for job search without accruing unlawful presence.
Scenario 3: Spouse is on H-1B, you're laid off
File I-539 to change to H-4 dependent — restores dependent visa status linked to spouse's ongoing H-1B validity.
Scenario 4: Approved I-140 with priority date not yet current
Explore compelling circumstances EAD — available in specific situations for applicants with approved I-140 and long backlogs. Consult attorney.
Scenario 5: Approved I-140 with current priority date
File I-485 (adjustment of status) before the 60 days end. The pending I-485 provides work authorization (via EAD) and lawful presence.
Related NRI Globe Immigration Guides
- H-1B Complete Guide for Indians 2026 — Lottery, Timeline, Costs, Alternatives
- H-1B Job Loss 60-Day Playbook — Complete NRI Guide
- US Green Card for Indians — EB-1/EB-2/EB-3 Complete Guide
- New US Visa Rules 2026 for Indians — F-1, H-1B, Green Card
- Uber, PayPal & Trade Desk Layoffs Sep 2026 — NRI H-1B Impact
- Returning to India Complete Checklist 2026
FAQ
Does severance pay extend my 60-day grace period?
Usually no. The clock generally starts the day after your last compensable/productive work day, not the last day of severance. Severance is separate from the grace period timing under 8 CFR § 214.1(l)(2). Consult counsel about your specific situation.
What if my I-94 expires before 60 days?
The earlier date controls. If your I-94 expires on day 45 after your last work day, you have 45 days, not 60.
Can I use the 60-day grace period more than once?
Not typically within the same authorized validity period. If you changed jobs and are terminated again under the same underlying petition validity, you likely don't get another full 60 days.
Does the grace period apply to my H-4 spouse and children?
Yes — dependents' status is tied to the principal's, so they generally follow the same grace period framework.
What happens if the DHS elimination rule takes effect?
The current rule remains in effect until the final rule is published, completes public comment, and takes effect on its specified date. Even after that, transitional rules typically apply to those already in the middle of a grace period. Plan for a shorter safety net going forward.
Bottom Line
The 60-day H-1B grace period is your most important safety net after job loss — but it is discretionary, non-work-authorized, and once-per-validity-period. Confirm your last work day, check your I-94, consult an immigration attorney within 72 hours, and choose deliberately among portability (I-129), change of status (I-539), or departure. Watch RIN 1615-AD22 for the pending elimination rule. Assume the safety net could shrink; over-prepare.
Disclaimer: Immigration rules are complex and fact-specific. This is a general summary based on publicly available regulations and reporting as of September 2026. It is not legal advice. Always verify the latest information on the official USCIS website (uscis.gov) and consult a qualified immigration attorney for advice tailored to your situation.

