H-1B 60-Day Grace Period Could Be Eliminated! H-4 Work Authorization May Be Next?

The Trump administration is signaling two more potential changes that could reshape the H-1B landscape: eliminating the 60-day grace period after employment ends and ending employment authorization for certain H-4 spouses.

Neither change is in effect today. But both matter to employers that rely on H-1B talent. For employers, these developments could have broader implications for H-1B hiring, workforce transitions, and talent retention. Companies that rely on foreign national talent should closely monitor both proposals and be prepared to adjust their immigration planning if the rules move forward.

For questions about H-1B hiring and transfers, immigration planning following a termination, H-4 employment authorization, or employer immigration compliance, please contact the ILS Immigration Team at immigrationlaw@consultils.com.

The 60-Day Grace Period Could Be Eliminated

Under current regulations, certain employment-based nonimmigrants whose employment ends before their authorized stay expires may receive a discretionary grace period of up to 60 consecutive days.

The rule covers H-1B workers as well as individuals in E-1, E-2, E-3, H-1B1, L-1, O-1, and TN status. The grace period lasts for up to 60 days or until the individual’s authorized stay expires, whichever comes first, and may generally be available once during each authorized petition validity period. It can apply whether the employment ends voluntarily or involuntarily. 

For H-1B workers, that window can be critical. It gives an employee time to find a new sponsoring employer, pursue a qualifying change of status, or prepare to leave the United States.

DHS is now moving toward eliminating that protection. A proposed rule titled “Eliminating the Discretionary 60-day Grace Period” completed review by the White House Office of Information and Regulatory Affairs (OIRA) on August 27. The next step is publication of the proposed rule, which would allow the public to see the actual regulatory language and submit comments.  

Importantly, nothing has changed yet. The current grace-period rule remains in place, and the proposal would still need to move through the federal rulemaking process before any new rule could take effect.

What Would This Mean for H-1B Workers and Employers?

If the 60-day grace period is ultimately eliminated, the immigration consequences of a termination or resignation could become much more immediate.

Today, an H-1B employee who loses a job may have some time to identify a new employer and arrange the next immigration filing. Without that window, the timing between the end of one job and the filing of a new petition could become significantly more important. 

For employers recruiting H-1B workers from another company, that could make several dates much more important:

• the candidate’s last day of employment;

• the expiration date on the candidate’s Form I-94;

• whether the candidate is continuing to maintain lawful status; and

• when the new employer can file the H-1B petition.

The practical takeaway is simple: employers should not assume that an H-1B candidate will always have 60 days after leaving a prior employer. If the proposal becomes final, immigration timing may need to become an earlier part of the recruiting process.

H-4 Spousal Work Authorization Could Also Be Rolled Back

A separate DHS initiative could affect the spouses of certain H-1B workers.

H-4 status does not automatically provide employment authorization. Under a rule adopted in 2015, however, certain H-4 dependent spouses of H-1B workers who have reached specified stages of the employment-based green card process may apply for an Employment Authorization Document (EAD). 

DHS has now added a proposal titled “Removing H-4 Dependent Spouses From the Classes of Noncitizens Eligible for Employment Authorization” to its long-term regulatory agenda. According to the regulatory entry, DHS intends to reverse the 2015 rule and remove certain H-4 spouses from eligibility to request employment authorization under the C26 category.  

This initiative is at a much earlier stage than the 60-day grace-period proposal.

As of August 31, DHS has not published a Notice of Proposed Rulemaking (NPRM) and has not announced when it will do so. The regulatory agenda currently lists the NPRM date as “To Be Determined.”  

That distinction matters. Existing H-4 EADs have not been canceled, and eligible H-4 spouses have not suddenly lost their ability to work. At this stage, there is not yet enough information to know how a future rule might treat existing EAD holders, pending applications, renewals, or future applicants.

Why Should Employers Care About an Employee’s H-4 Spouse?

At first glance, H-4 work authorization may seem like a personal immigration issue rather than an employer concern. In practice, the two can be closely connected.

For many H-1B professionals, a decision to accept a job, relocate to another state, or remain with an employer long term is a family decision. A spouse’s ability to maintain a career and earn an independent income can be an important part of that calculation.

If H-4 EAD eligibility is eventually eliminated or significantly narrowed, employers could see indirect effects on:

• retention of key H-1B employees;

• willingness to relocate for a new position;

• household and career planning for H-1B families; and

• demand for independent employment sponsorship for spouses who currently rely on H-4 EADs.

Business groups have previously argued that eliminating H-4 employment authorization could make it harder for U.S. companies to recruit and retain highly skilled foreign talent. 

Where Do the Two Proposals Stand?

The two initiatives are not at the same stage, and neither should be treated as a final rule.

Potential Change	Current Status	In Effect?	What to Watch
Elimination of the 60-day grace period	Proposed rule has completed OIRA review; publication is the next key step	No	Proposed text, covered visa categories, exceptions, transition rules, and effective date
Elimination of certain H-4 EAD eligibility	Listed as a DHS Long-Term Action; NPRM date remains TBD	No	NPRM publication, treatment of current EAD holders and pending applications, transition rules

The distinction is important because headlines about an administration “ending” a benefit can easily get ahead of the regulatory process.

For now, eligible workers may still rely on the existing 60-day grace-period framework, and qualifying H-4 spouses may still obtain or use employment authorization under current rules. 

What Should Employers Do Now?

There is no reason for employers to change an employee’s current work authorization simply because these proposals are moving through the regulatory process. There is, however, value in identifying where the company could be exposed if either proposal becomes final.

Employers may want to consider the following:

• Build immigration timing into H-1B recruiting. When hiring an H-1B worker from another employer, confirm the candidate’s last day of employment, current status, and anticipated filing timeline rather than automatically relying on a 60-day window.

• Coordinate immigration planning when employment ends. For foreign national employees, a termination date can have immediate immigration consequences. HR and immigration counsel may need to coordinate earlier in the offboarding process.

• Identify employees whose family planning depends on H-4 EADs. Employers do not need to collect unnecessary personal information, but employees who raise concerns about a spouse’s work authorization may need additional immigration planning if the rule moves forward.

• Avoid making decisions based on proposals as though they were final rules. Key questions—including effective dates, transition periods, exceptions, and treatment of existing H-4 EADs—remain unanswered.

The goal at this stage is not to react prematurely. It is to know which employees, candidates, and hiring plans could require faster action if the rules change.

Conclusion

For employers, the key is to plan ahead rather than react after a rule takes effect. Identifying potentially affected employees, reviewing upcoming hiring and workforce changes, and coordinating immigration strategy early can give companies more flexibility as the regulatory landscape evolves.

ILS will continue monitoring both developments. If DHS publishes the proposed rules or provides additional guidance on effective dates, transition periods, or affected populations, we will provide further updates.

For questions about H-1B hiring and transfers, immigration planning following a termination, H-4 employment authorization, or employer immigration compliance, please contact the ILS Immigration Team at immigrationlaw@consultils.com.

Disclaimer: Given the rapid changes in immigration policies, it is advisable for enterprises to pay close attention to official updates and consult professional immigration lawyers for the latest guidance. Our firm will continue to track policy developments and provide clients with timely and accurate professional services.

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As Partner and Head of Immigration at ILS, Anna advises global employers on all aspects of U.S. business immigration. She helps companies recruit and retain executives and highly skilled professionals essential to their U.S. operations, with experience spanning industries from autonomous driving and biotech, to entertainment, logistics, and manufacturing.

Previously, Anna practiced at leading global law firms and served as in-house counsel and compliance manager in the telecommunications, finance, and gaming industries. This diverse background equips her with practical, cross-industry insights that inform strategic, business-focused immigration solutions.

Email: contact@consultils.com | Phone: 626-344-8949