Laid Off on H-1B? What to Do During the 60-Day Grace Period

If you are laid off while working in H-1B status, your immigration timeline can change immediately. Under the rules currently in effect, certain H-1B workers may receive a discretionary grace period of up to 60 consecutive days after employment ends, or until the end of their authorized validity period, whichever comes first. During that period, you may be able to have a new employer file an H-1B petition, request a change to another immigration status, or prepare to leave the United States.

The 60 days are not automatically guaranteed in every case. DHS may shorten or eliminate the grace period as a matter of discretion, and the period cannot extend beyond the end of your existing authorized validity period.

2026 H-1B Grace Period Update

As of September 30, 2026, the H-1B 60-day grace period remains in effect. However, DHS published a proposed rule on September 11, 2026 that would eliminate the discretionary 60-day grace period for H-1B and several other employment-based nonimmigrant classifications. The proposal is not yet a final rule, so the current grace-period regulation continues to apply. Public comments on the proposal are due by November 10, 2026.

proposed rule to eliminate the H-1B 60-day grace period

What to Do After an H-1B Layoff: Step-by-Step

Step 1: Check Your H-1B and I-94 Dates

Locate your latest H-1B approval notice and Form I-94.

Determine how much time remains in your authorized validity period because this may be shorter than 60 days.

Do not wait until day 50 or day 55 to start considering your options.

Step 2: Keep Your Employment and Immigration Records

Save copies of your H-1B petitions and approval notices, I-94, passport, visa documents, pay statements, termination letter and related employment records.

These documents may be important when a new employer prepares an H-1B petition or when you pursue another immigration option.

Step 3: Start Looking for a New H-1B Employer Immediately

For many H-1B professionals, finding a new sponsoring employer is the most direct way to continue working in the United States.

A new employer generally needs to file its own Form I-129 requesting H-1B classification for the new employment.

Although people commonly refer to this process as an “H-1B transfer,” H-1B status is not literally transferred from one company to another. The new employer files a new petition with USCIS.

Option 1: Find a New Employer and File an H-1B Petition

One important feature of the H-1B program is portability.

Under USCIS guidance, certain eligible H-1B workers can begin working for a new H-1B employer after that employer properly files a nonfrivolous Form I-129 petition rather than waiting for USCIS to approve the petition first.

USCIS lists eligibility requirements that include lawful admission, timely filing of the qualifying new petition and no unauthorized employment since the worker's last lawful admission before the new filing.

Because portability depends on the individual situation and filing history, workers should confirm eligibility before beginning employment with the new company.

Can You Work During the H-1B 60-Day Grace Period?

Not simply because you are in the grace period.

The regulation specifically states that a worker generally may not work during the grace period unless employment is otherwise authorized.

This distinction matters.

The grace period can help prevent a worker from being considered out of status solely because qualifying employment ended, but it is not itself an employment authorization.

H-1B portability can provide a separate basis for eligible workers to begin employment after a qualifying new H-1B petition is filed.

Option 2: Consider Changing to Another Immigration Status

If you cannot secure another H-1B employer before your applicable deadline, you may have other options depending on your circumstances.

Federal regulations allow a person in the authorized grace period to seek an extension of stay or change of status if otherwise eligible.

Possible classifications could include F-1 student status or an eligible dependent classification such as H-4.

However, changing status should not be treated simply as a way to “extend” the H-1B grace period. Every immigration classification has its own eligibility rules, restrictions and employment requirements.

Can You Change From H-1B to F-1 After a Layoff?

For some people, returning to school may be a genuine alternative after an H-1B layoff.

An H-1B worker may potentially request a change to F-1 student status if they have been admitted to an eligible academic program and otherwise meet the applicable F-1 and change-of-status requirements.

However, there is an important distinction:

F-1 status does not automatically give a student permission to work.

Admission to a university, receiving a Form I-20 or filing a change-of-status application does not by itself authorize employment.

Employment by an F-1 student must be separately permitted under the applicable F-1 employment rules.

What Documents Should You Keep After an H-1B Layoff?

Save documents that establish your immigration status and the circumstances of your employment ending, including:

• termination or separation letter
• most recent Form I-797 approval notice
• current Form I-94
• recent pay statements
• employment verification letter
• severance agreement, if applicable
• correspondence confirming your final working day
• copies of previous H-1B petitions and approval notices

Before leaving your employer, ask HR for written documentation confirming your employment dates and, when available, the effective date of termination. Keep this together with your pay records, Form I-94 and H-1B approval notice. Questions involving severance, garden leave, payroll continuation or disputed employment-end dates can be fact-specific, so do not rely on the date of a final paycheck alone to calculate your immigration deadline.

Plan Early After an H-1B Layoff

An H-1B layoff can create a stressful countdown, but the most important step is understanding exactly how much time you have and which options actually apply to you.

For some workers, the best path may be finding another H-1B sponsor. Others may decide to return to school and pursue F-1 status, while some may qualify for another nonimmigrant classification.

If returning to school is part of your plan, you can compare academic programs, enrollment dates and CPT-related curriculum requirements before making a decision.

Because immigration eligibility and deadlines depend on individual facts—and because DHS has proposed eliminating the 60-day grace period—workers facing an H-1B layoff should also consider obtaining individualized advice from a qualified immigration attorney.