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US Proposes Scrapping 60-Day H-1B Grace Period After Job Loss

by Economy India
September 11, 2026
Reading Time: 3 mins read
US Proposes Scrapping 60-Day H-1B Grace Period After Job Loss

US Proposes Scrapping 60-Day H-1B Grace Period After Job Loss

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WASHINGTON (Economy India): The United States has proposed a new rule that would remove the 60-day grace period currently available to certain foreign workers, including skilled professionals holding H-1B visas, to seek new employment after losing their jobs.

The proposed change could have a significant impact on Indian technology professionals working in the US, particularly those employed by technology companies and other businesses that rely heavily on the H-1B visa programme.

Under the existing framework, eligible H-1B workers who lose their jobs can generally remain in the United States for up to 60 days, or until the end of their authorised validity period, whichever comes first, to find another employer and pursue a new H-1B employment arrangement.

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Major Impact on Indian Technology Workers

The proposed move is expected to increase uncertainty for foreign professionals who lose employment while holding H-1B status.

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Indian nationals make up a substantial share of H-1B workers in the United States, particularly in the technology sector. Any reduction or removal of the post-employment transition period could therefore have a disproportionate impact on Indian IT professionals.

Workers who lose their jobs could face pressure to secure new employment much more quickly or risk having to leave the country.

Technology companies have traditionally used the H-1B programme to recruit highly skilled workers for specialised roles requiring technical or theoretical expertise. Indian and Chinese professionals account for a large portion of the foreign workforce employed through the programme.

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What Is the H-1B Visa?

The H-1B visa is a US non-immigrant visa that allows American employers to hire foreign workers in speciality occupations.

These positions typically require specialised knowledge and at least a relevant bachelor’s degree or equivalent qualification. The programme is widely used by technology companies to recruit software engineers, data professionals, analysts and other specialised workers.

US technology companies depend on the H-1B programme to employ tens of thousands of skilled professionals from countries including India and China.

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Proposed Change Could Increase Job-Search Pressure

The 60-day grace period has provided a limited window for eligible workers to find another employer after termination of employment.

Scrapping that provision would shorten the time available for affected workers to transition to another job and maintain lawful immigration status.

For Indian professionals, the proposed rule could make job losses particularly challenging, given the time often required to identify a sponsoring employer, complete the necessary immigration process and secure approval.

The proposal comes amid continuing debate in the United States over immigration policy, skilled-worker visas and the employment of foreign professionals.

If implemented, the change could have implications for both H-1B workers and US companies that depend on international talent to fill specialised positions.

(Economy India)

Tags: Blue Economy IndiaEconomy IndiaH-1B Grace PeriodH-1B VisaH-1B WorkersUnited StatesUS Jobs
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Economy India

Economy India

Economy India is one of the largest media on the Indian economy. It provides updates on economy, business and corporates and allied affairs of the Indian economy. It features news, views, interviews, articles on various subject matters related to the economy and business world.

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