DHS has proposed a rule that would eliminate the 60-day grace period for H, L, E, O, and TN status holders, but as of today, 2026-09-19, the grace period is still in effect and will only change once the rulemaking process is complete.
In short
- The rule eliminating the 60-day grace period hasn’t been adopted in final form yet — the comment period is closed, but the grace period still applies.
- H, L, E, O, and TN status holders should prepare a petition in advance rather than wait for termination: without the grace period, the time to file could disappear.
- H-1B allows working for a second company in parallel under the same status — a backup that L, E, and TN status holders don’t have.
- For TN and some E visas, leaving and filing through a consulate is sometimes more advantageous than a USCIS petition: an E visa through a consulate is issued for 5 years versus 2 years through USCIS.
- An H-1B visa issued under a former employer remains usable as long as there’s a new approved petition — a new visa isn’t always required.
What the 60-Day Grace Period Covers Right Now
The 60-day grace period has been in place since 2017 and applies to holders of H, L, E, O, and TN status, as well as to their dependent family members. Formally, a foreign national’s status ends on the day of termination or the last day of work with an employer — from that point, they are required to leave the US. The grace period pushes that obligation back by 60 days.
During those 60 days, a status holder can either wind down their affairs and leave, or file a petition with USCIS for a change of employer or change of status in order to stay in the country — for example, to take a job with a new employer or switch to studying. The rule also covers accompanying family members: the primary applicant’s termination doesn’t mean the children have to stop school and the family has to pack up and leave the same day.
The grace period gives 60 days after termination to leave the US or file a petition for a change of employer or status — it covers H, L, E, O, and TN status holders and their families.
What DHS Is Proposing to Eliminate
The proposed rule removes the 60-day grace period entirely (c9, c23, c36). Instead of having two months to find a new employer or change status after employment ends, a person would have to leave the US immediately (c10, c18).
The only way to remain lawfully would be to file a petition for a change of employer or status before the last day of work with the current employer (c11, c12). For a voluntary resignation, this is workable: the date is known in advance, and the petition can be prepared in time. For a sudden termination initiated by the employer, there’s no way to plan the filing ahead of time — the petition simply cannot physically reach USCIS before status ends.
the petition simply cannot physically reach USCIS before status ends
The practical difference is enormous: right now, the law grants a right to remain in the country for 60 more days after termination, regardless of whether the person managed to file anything. Under the new rule, that right disappears — lawful status and lawful presence end at the same moment as employment, not two months later.
What Changes for a Foreign Worker After Termination
Right now status lasts 60 days after termination; under the proposed rule it would end immediately
- Period of lawful presence after termination
- Deadline to file a petition
Under the proposed rule, the petition would need to be filed before the last day of work — which is often physically impossible in the case of a sudden termination by the employer.
Is the 60-Day Grace Period Still in Effect Right Now
As of the publication date, the 60-day grace period is still in effect: the rule to eliminate it currently has the status of a proposed rule, not a finalized one. The comment period for the proposed rule has already closed, but the rule itself has not yet been adopted in final form — until a final text takes effect, the current arrangement doesn’t change.
The rule may never take effect at all if it isn’t adopted in final form after the comment period — in that case, the 60 days would remain in place with no set expiration. That said, based on similar past changes, elimination looks likely, so holders of H, L, E, O, and TN status — both primary applicants and their family members — should assume the grace period could disappear and prepare for that scenario in advance.
How to Reduce the Risk If the Grace Period Is Eliminated
When an employee receives notice of termination — two weeks out, a month out, or on any other timeline — there’s still time to prepare documents and file a petition before the last day of work. This is workable for a voluntary resignation with notice, but nearly impossible for an immediate termination by the employer: there’s no way to plan the steps in advance in that case.
If there’s no 60-day window left, it becomes more advantageous for an employee to file a petition for a change of employer while still on the payroll, rather than resigning first and handling the paperwork afterward with no job.
Working for one’s own company is considered significantly less risky than working for an employer: an employer can end the relationship at any moment, leaving the person without a plan. Right now, while the rule hasn’t been eliminated, even a terminated employee has 60 days to file a petition to work for their own company. Without that window, carrying out such a plan inside the US won’t be possible — an immediate departure would be required if the plan isn’t already prepared.
Practical advice for anyone considering starting their own business: prepare the plan in advance, even without fully launching the company — that way it can be put into motion quickly if employment and status end suddenly.
If a termination date is known in advance, it’s better to file a petition for a change of employer while still on the payroll, rather than after leaving the job.
Working for Multiple Employers Under Different Statuses
H-1B allows working for two employers in parallel: a status holder can keep full-time employment with one employer while simultaneously working part-time through their own company, filed under the same H-1B (c19). If the primary job ends, the second job remains valid — status doesn’t reset the moment employment ends, unlike without this kind of backup.
L, E, and TN statuses don’t offer this option: working for multiple employers in parallel isn’t allowed under practically any of them (c20, c21). For holders of these statuses, a plan prepared in advance — for example, a business ready to launch or an already-arranged new job — remains the only way to respond quickly to a termination notice, since they don’t have a second parallel fallback the way H-1B holders do.
they don’t have a second parallel fallback the way H-1B holders do
Ability to Work for a Second Employer Under Each Status
Table scrolls sideways
| Status | H-1B | L | E | TN |
|---|---|---|---|---|
| Parallel work for a second company | Allowed (including through one’s own company) | Not allowed | Not allowed | Not allowed |
| What remains after termination from the primary job | Second job continues, status doesn’t reset | Status ends along with employment | Status ends along with employment | Status ends along with employment |
| Only fallback option | Second job is already in place | Plan prepared in advance | Plan prepared in advance | Plan prepared in advance |
Based on the parallel-employment rules described in the article for each status.
Filing With USCIS or Through a Consulate: What to Choose for TN and E
For Canadian citizens on TN status, who are processed right at the border, it’s often more advantageous to leave the US and re-enter with a new employer than to file a petition with USCIS. A similar logic applies to E visas: filing through a consulate results in a multi-year visa, typically for 5 years, while filing with USCIS grants status for only 2 years. So the decision is always made case by case — in some situations, filing during the 60-day grace period didn’t make sense in the first place.
in some situations, filing during the 60-day grace period didn’t make sense in the first place
For H-1B, L, and other status holders, where filing within the 60-day grace period used to be the main strategy, the situation is different, but not hopeless either. If a person does end up having to leave the US, a new employer can file a consular petition — and the applicant will get a visa and return to the country. Often a new visa isn’t even needed: for H-1B, there’s a rule that a visa issued under a previous employer remains usable as long as there’s a new approved petition. That means a person can return to the US on the old but still valid visa — the tie to the former employer doesn’t matter.
The one requirement that already applied before, for using the 60-day grace period, was having a new job or an offer from an employer.
For H-1B, a visa issued under a former employer remains usable as long as there’s a new approved petition — no new visa is required to re-enter the US.
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