A proposed change to the H-1B visa system could make job loss far more stressful for thousands of foreign workers in the United States, particularly Indians working in the technology sector.
The Department of Homeland Security is moving ahead with a proposal titled “Eliminating the Discretionary 60-day Grace Period.” The proposal, listed under RIN 1615-AD22, is currently under White House regulatory review. Importantly, it is only a proposed rule at this stage and has not yet become law.
Under the present system, an H-1B worker who loses a job can generally remain in the US for up to 60 days, or until the end of the authorised stay, whichever comes first. During this period, the worker can search for another employer willing to sponsor an H-1B transfer, seek a change of status or prepare to leave the country.
The 60-day period was introduced through a DHS rule that took effect in 2017 and has become an important safety cushion for foreign professionals facing sudden layoffs.
If this grace period is removed, the impact could go beyond immigration status.
One major concern is that H-1B workers may lose bargaining power while searching for their next job. A professional who currently has several weeks to interview with multiple companies and compare offers could instead feel pressure to accept the first employer willing to sponsor a transfer.
That could potentially push some workers towards lower salaries, less desirable positions or jobs that may not match their experience.
The problem could become more serious during large-scale layoffs. Technology companies can cut hundreds or even thousands of employees at the same time, creating intense competition for available positions.
For an American worker, losing a job mainly creates financial pressure. For an H-1B employee, however, employment is also directly connected to immigration status. Losing a job can therefore affect both income and the legal ability to remain in the country.
This dependence on employer sponsorship is what makes the proposed change particularly important.
A shorter or nonexistent job-search cushion could also strengthen the position of employers during salary negotiations. Companies may know that an H-1B candidate has limited time to find sponsorship and could be more willing to compromise on compensation simply to maintain legal status.
However, that does not automatically mean employers can ignore existing H-1B wage rules. H-1B employers remain subject to wage and petition requirements. The bigger concern is that workers may have less freedom to reject weaker offers and continue searching for better opportunities.
Another complication involves families.
Many H-1B professionals have spouses and children living with them in the United States. A sudden employment loss can therefore create uncertainty over housing, schooling, finances and immigration planning for the entire family.
The proposal could also make workers more cautious about leaving difficult employers. Someone who is unhappy with working conditions may think twice about resigning without another job already secured.
At present, USCIS regulations also allow eligible H-1B workers to begin employment with a new employer once a qualifying H-1B petition has been properly filed, rather than waiting for final approval.
Still, finding an employer, completing interviews, negotiating compensation and preparing an H-1B transfer petition can take time. Removing the 60-day cushion could make that process considerably more difficult.
For Indian professionals, who form a major share of the H-1B workforce, the proposal will be closely watched.
For now, there is no immediate change. The existing grace-period framework remains in place while the proposal goes through the regulatory process.
But if the rule is eventually finalised, losing a job on H-1B may no longer mean simply searching for the next opportunity.
It could become a race against immigration status itself.
