Laid Off on H-1B? 60-Day Grace Period Job Search Plan (2026)

Being laid off on H-1B puts you under two deadlines at once: finding a job and protecting your status.

The good news is that you usually have options. The key is to act in the first week, not the last.

Is the H-1B 60-day grace period still valid?

Yes, as of November 11, 2026.

On September 11, 2026, DHS published a proposed rule (RIN 1615-AD22) that would eliminate the grace period. Public comments closed on November 10, 2026.

A proposed rule is not law. The grace period applies until a final rule is published and takes effect. Our article on the DHS proposal to eliminate the 60-day grace period tracks the status.

How the grace period works

The grace period comes from 8 CFR 214.1(l)(2). It works like this:

• Length: Up to 60 consecutive days, or until your I-94 expires, whichever is shorter.
• Start date: The clock generally starts the day after your last day of employment.
• Frequency: It is available once per authorized validity period.
• Status only: It preserves your status. It does not authorize you to work.
• Discretionary: USCIS decides whether to honor it.

Your options during the grace period

If you are considering going back to school, read how an H-1B to F-1 change of status works and the 2026 CPT changes first. For the visitor option, see our article on B-2 change-of-status RFEs after a layoff.

Your 60-day job search plan

Days 1–7: Secure your paperwork and your dates

• Get written confirmation of your last day of employment.
• Collect your I-797 approval notices, I-94, recent pay stubs and degree documents.
• Mark Day 60 and your I-94 expiration date on your calendar. Plan around whichever comes first.
• Book a consultation with an immigration attorney.
• Update your resume. Use our job-duties and coursework worksheet to make sure your target roles match your degree for H-1B purposes.

Days 8–30: Target the right employers

• Prioritize employers with a sponsorship record. The Department of Labor publishes H-1B LCA disclosure data you can search.
• Mention your cap status. If you were already counted against the H-1B cap, a new employer generally does not need a new lottery selection. This is a strong selling point.
• Ask early in interviews: “Can your team file an H-1B transfer within the next few weeks?”
• Ask about recent layoffs in similar roles. Under Executive Order 14431, an employer’s layoffs may draw extra scrutiny on new H-1B filings. Our article on layoff scrutiny of H-1B employers explains more.
• Answer the sponsorship question confidently. Note that the $100,000 fee never applied to in-country transfers and is currently blocked. See our guide to answering “Will you now or in the future require sponsorship?”

Days 31–50: Convert interviews into a filed petition

• Have your documents ready so the new employer’s attorney can move quickly.
• Ask whether the employer will use premium processing. It is the employer’s decision and an extra cost.
• Confirm the filing date in writing once you accept an offer.

Days 51–60: File a backup or prepare to depart

• If no petition is on track, file a backup change of status before your grace period ends, or make a departure plan.
• Don’t let Day 60 pass without one of these in place.

Common mistakes to avoid

• Working before eligibility. Don’t start a new job before the new petition is filed and you are eligible for portability.
• Assuming you have the full 60 days. If your I-94 expires sooner, the earlier date controls.
• Treating a B-2 change of status as guaranteed.
• Ignoring the proposed rule. If DHS finalizes it, future layoffs could leave no grace period at all.

Frequently asked questions

What happens if you get laid off on H-1B?

Your employment ends. You may then have up to 60 days, or until your I-94 expires if sooner, to find a new H-1B employer, change status, or leave the U.S.

Is the H-1B 60-day grace period still valid in 2026?

Yes. DHS has proposed eliminating it, but the proposal is not final. Check for updates before you rely on it.

Can I work during the grace period?

No. The grace period preserves your status but does not authorize work. With portability, you can start a new H-1B job once the new employer files your petition.

Does the $100,000 H-1B fee apply to my transfer?

No. The fee targeted new petitions for workers outside the U.S., and courts have blocked its collection. A separate $103,265 fee has been proposed and is not in effect.

Can I switch to F-1 and use Day 1 CPT?

A change to F-1 is possible. But CPT now must be a required part of your program, and SEVP’s 2026 guidance is under legal challenge. Confirm your program’s CPT policy before you enroll.

Sources:

• eCFR, 8 CFR 214.1(l)(2): https://www.ecfr.gov/current/title-8/part-214/section-214.1 (60-day grace period)
• eCFR, 8 CFR 214.2(f)(10): https://www.ecfr.gov/current/title-8/part-214/section-214.2#p-214.2(f)(10) (CPT and OPT “directly related” standards)
• DOJ IER technical assistance letter on sponsorship questions: https://justice.gov/media/1248166/dl
• Grace-period proposed rule status (RIN 1615-AD22): https://www.layoffnext.com/visa-layoff/h1b-grace-period-rule-change-2026 (for the primary source, verify against the Federal Register, FR Doc. 2026-18631)
• $100,000 fee court status and the proposed $103,265 fee: https://usvisa.com/pages/h-1b-100000-fee and https://www.fragomen.com/insights/united-states-president-trump-extends-dollar100000-h-1b-fee-but-policy-currently-vacated-by-court-order.html
• Executive Order 14431 (layoff scrutiny): https://natlawreview.com/article/new-executive-order-and-perm-suspensions-tie-h-1b-and-green-card-sponsorship-layoff
• H-1B modernization rule (“directly related” definition): https://www.americanimmigrationcouncil.org/blog/h1b-modernization-rule-provides-some-comfort-but-also-raises-concerns/
• B-2 change-of-status scrutiny: https://natlawreview.com/article/h-1b-b-1b-2-change-status-after-termination-what-workers-employers-should-know