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Published: Tue, Sep 29, 2026·1 min read

DHS Proposes Ending H-1B Layoff Grace Period

⚡Executive Briefing & Staffing Impact
via news.bloomberglaw.com

The big picture: The Department of Homeland Security (DHS) is proposing to eliminate the 60-day grace period for H-1B visa holders to find new employment after a layoff. This move could significantly impact foreign workers' ability to remain in the U.S. and their employers.

Why it matters: This change creates immediate urgency for employers sponsoring H-1B workers and intensifies talent retention challenges, especially during economic downturns. It directly affects the stability of a critical segment of the skilled workforce.

Between the lines:

  • Currently, H-1B workers have 60 days post-layoff to secure a new sponsor or leave the country.
  • The DHS proposal aims to remove this established window, forcing immediate departure upon job loss.
  • This is part of a broader regulatory review impacting immigration policies.

Staffing & HR impact: Staffing firms and HR departments face increased compliance risks and pressure to expedite new placements or sponsorship transfers. This could reduce recruiter mobility for H-1B talent and impact gross margins due to rapid turnover.

The bottom line: Companies must prepare for a much shorter window to retain or transition H-1B talent, demanding proactive workforce planning and robust immigration support.

🏢Entities Mentioned
DHS
🔗Verified Source
news.bloomberglaw.com
Original Dispatch
Published: Tue, Sep 29, 2026
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DHS Proposes Ending H-1B Layoff Grace Period — The Wire