DHS proposes ending the 60-day grace period after a job ends

Today a worker in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 or TN status whose job ends may get a discretionary grace period of up to 60 days, without working.

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Compliance Watch · Issue 04

Status: Comment deadline Nov 10

Jurisdiction: Federal · Topic: Immigration

Source: Federal Register, September 11, 2026

Back to the issue: all 7 updates in Issue 04

What changed

Today a worker in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 or TN status whose job ends may get a discretionary grace period of up to 60 days, without working. DHS proposes ending it, so the worker and dependents would generally fall out of status the day after employment ends unless otherwise authorized to stay.

Who this affects

Employers with workers in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 or TN status, and those workers’ dependents. An employer with no workers in these categories is not affected.

Exceptions that matter:

  • Nothing changes unless DHS publishes a final rule with an effective date; until then the 60-day grace period still applies.

What to do

If you employ workers in these categories, plan any job ending with immigration counsel. The comment deadline is November 10, 2026. Nothing changes unless DHS issues a final rule.

Primary source: Federal Register, September 11, 2026. Part of Compliance Watch, Issue 04 (November 2, 2026). Last reviewed November 2, 2026.

Questions employers ask

When does this take effect?
Not yet. This is a proposal, not a rule in effect, and nothing changes for employers unless a final rule is issued. November 10, 2026 is the deadline to submit comments on the proposal, not an effective date.
Where is the official source?
The primary source is Federal Register, September 11, 2026. VertiSource HR links the government page rather than a summary of it.

Questions about this update?

Every “What to do” line above is a task for someone at your company. Our clients hand the payroll and tax pieces to us and get an HR advisor for the rest.

General information from VertiSource HR, not legal or tax advice. How a rule applies depends on your company and your state. Check with us or your attorney before acting.

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