H1B Layoff Grace Period: The 60-Day Rule Explained

The 60-Day Grace Period

Under the 2017 rule change (part of the Obama-era H1B modernization), H1B workers who lose their employment are granted up to 60 consecutive calendar days to remain in the United States in authorized status. Key details:

• 60 calendar days from the date of employment termination, OR until the end of your authorized H1B validity period — whichever comes first
• You cannot work during the grace period unless you have filed an H1B transfer petition with a new employer (which grants work authorization while pending)
• One grace period per authorization — if you use the grace period and find a new sponsor, a subsequent layoff during the same validity period does not guarantee another 60 days
• Not a guarantee — while the regulation provides for the grace period, USCIS has discretion in how it applies

Your Options Within the 60 Days

These are the primary paths available during the grace period:

1. H1B Transfer to a New Employer

This is the most common option. A new employer files an H1B petition on your behalf (called a "transfer" or "portability" petition). Under AC21 portability rules, you can begin working for the new employer as soon as the transfer petition is filed — you do not need to wait for approval. The key is finding a new sponsor and getting the petition filed within 60 days.

2. Change of Status

You can apply to change to another visa category. Common options include:

• B-1/B-2 (visitor) — buys time but does not permit work
• F-1 (student) — if enrolling in a program
• O-1 — if you qualify for extraordinary ability
• H-4 — if your spouse holds H1B status

3. Depart the United States

If you cannot secure a new sponsor or change status, you must depart before the grace period ends to avoid accumulating unlawful presence, which can affect future visa applications.

Practical Steps After a Layoff

1. Document the termination date — this starts your 60-day clock
2. Consult an immigration attorney immediately — do not rely solely on general guidance; your specific situation may have nuances
3. Begin job searching actively — focus on employers known to sponsor H1B visas. Our database covers 787 employers with their sponsorship track records
4. Use our search tools — the company search and top sponsors ranking can help identify employers with established H1B programs
5. Consider premium processing — a new employer can file with premium processing ($2,805 fee) for a 15 business day decision, providing faster certainty

What the Employer Must Do

When an employer terminates an H1B worker, they are technically required to offer to pay for the return transportation to the worker's home country (INA 214(c)(5)). They should also notify USCIS of the termination. In practice, not all employers fulfill these obligations, but workers should be aware of them.