US proposes to end the 60-day H-1B grace period; experts warn of 'severe regression'

Washington, The US proposal to eliminate the 60-day grace period for H-1B workers seeking employment after job loss will cause severe human displacement and loss of highly skilled talent, mostly from India, experts said.

Indian nationals are among the largest beneficiaries of H-1B employment visas, comprising 71 per cent of all successful applicants in the 2024 fiscal year.

Also read: US may end H-1B job-loss grace period for foreign workers; Indians could face impact




The Department of Homeland Security has proposed eliminating the 60-day grace period that allows H-1B workers and certain other legal nonimmigrants to remain in the US after their employment ends while they find another sponsor, change status, or prepare to leave.

"Scrapping the existing 60-day grace period entirely represents a severe regression that directly harms legal immigrants who have contributed significantly to the United States' technological and economic leadership," Ajay Jain Bhutoria, a former White House advisor, said in a statement.

American attorney Adrian Pandev said all start-up founders quit their corporate jobs and utilise the 60-day grace period to file change of status petitions for their new ventures.

"Without it, the employee is incentivised to not mention anything to their current employer until the new petition is filed or even approved. That means the current employer could be finding out they are losing a team member on extremely short notice," Pandev said in a post on X.

"This would impact US employers as much as employees," he added.

Bhutoria condemned the proposed policy of the Department of Homeland Security.

"Eliminating the 60-day grace period is inhumane and unworkable. When a worker faces a sudden termination, 60 days is already dangerously short. Stripping away this protection entirely leaves thousands of law-abiding individuals with zero time to wrap up their lives," he said.

Also read: American dream turns more distant for Indians as US tightens immigration rules



He urged South Asian community organisations, business leaders, and advocacy groups to prepare for public comments once the rule is officially published in the Federal Register to ensure the administration hears the full impact of this proposal.

Bhutoria, during his tenure as advisor to then-President Joe Biden, had proposed extending the grace period from 60 days to 180 days, citing the reality of corporate hiring practices, where technical interview rounds and visa transfer paperwork often take months to complete.

"This proposal strikes at the heart of the South Asian immigrant community and skilled workforce. I urge DHS and the administration to withdraw this proposal immediately and instead adopt a compassionate, pragmatic 180-day grace period that respects human dignity and protects America's competitive edge," Bhutoria said.

According to him, hundreds of thousands of South Asian tech, healthcare, and engineering professionals hold H-1B status and eliminating the grace period would create extreme psychological distress, financial ruin, and school disruptions for children raised in the US.