Laid Off on an H-1B, L-1, or O-1? The 60-Day Grace Period and Your Options

The Rule

A worker in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, or TN status, and their dependents, is not considered out of status "solely on the basis of a cessation of the employment" for up to 60 consecutive days, or until the end of the authorized validity period, whichever is shorter (8 CFR 214.1(l)(2)).

Key details:

The period is measured from when the employment ends, so the last day of employment matters.
It is the shorter of 60 days or your I-94 end date. If your authorized stay ends in 30 days, you have 30 days, not 60.
Once per authorized validity period. You do not get a new grace period each time a job ends within the same validity period.
DHS may shorten or eliminate it as a matter of discretion.
No work during the grace period, unless you have separate work authorization (8 CFR 214.1(l)(2)).

Your Options During the Grace Period

During the grace period, you may apply for an extension of stay or a change of status if otherwise eligible (8 CFR 214.1(l)(3)). In practice, the options usually are:

1. A new employer files a petition

H-1B: a new employer can file an H-1B petition. Under H-1B portability, an eligible H-1B worker can begin working for the new employer once a nonfrivolous petition is filed, or on the requested start date if later, as long as the petition is filed before the worker's authorized period of stay expires and the worker has not worked without authorization (INA 214(n); 8 CFR 214.2(h)(2)(i)(H)). Because a worker who had already been counted against the cap generally is not counted again, a new employer typically does not need to go through the lottery. Confirm eligibility before starting work. See our guide to cap-exempt H-1Bs for the special rules when moving between cap-exempt and cap-subject employers.
O-1: a new employer or a U.S. agent can file an O-1 petition. See our guide to O-1A advisory opinions, itineraries, and extensions.
L-1: L-1 status depends on the multinational employer. A new L-1 generally requires a new qualifying organization and the one-year-abroad requirement, so many laid-off L-1 workers instead look at other classifications. See our guide to the L-1A.

2. Change to another status

You may apply to change to another nonimmigrant status, such as becoming a dependent of a spouse's H-1B or L-1 status, or a student, if you qualify. A dependent status may or may not allow work; see our guide to spouse work authorization.

3. A compelling circumstances EAD

A worker in E-3, H-1B, H-1B1, O-1, or L-1 status, including the grace period, who is the principal beneficiary of an approved I-140 in EB-1, EB-2, or EB-3, may apply for employment authorization if (8 CFR 204.5(p)(1)):

Their priority date is not current; and
USCIS determines, in its discretion, that they show compelling circumstances that justify the work permit.

Spouses and children in nonimmigrant status can also apply once the principal is granted (8 CFR 204.5(p)(2)). This EAD is discretionary, and it is a work permit, not a nonimmigrant status, so it should be planned with counsel.

4. Depart the United States

Leaving within the grace period avoids accruing time out of status. Depending on your plans, you may be able to return later on a new petition.

If You Have a Pending Green Card Application

The grace period is about nonimmigrant status. If you already have a pending Form I-485:

You may be able to keep working on an EAD issued based on that application.
If the I-485 has been pending 180 days or more, you may be able to move to a same or similar job and keep the green card case under AC21 portability.

See our guide to changing jobs during the green card process.

What the Grace Period Does Not Do

It does not authorize work.
It does not extend your I-94. If your authorized stay ends sooner, the grace period ends then.
It does not guarantee a new petition will be approved, or that a change of status will be granted.
It does not help F-1 students, who have separate rules after completing a program or OPT.

A Practical Checklist

None of these points guarantees an outcome, but each tracks a rule described above:

Write down your last day of employment and your I-94 end date; the earlier of the two caps your grace period.
Gather documents: your I-94, approval notices, recent pay statements, and the termination letter.
Contact prospective employers early. A petition, and for H-1B a portability start, depends on filing within the grace period.
Check family status. Dependents' status generally follows the principal's.
Avoid unauthorized work, which can affect future options, including H-1B portability.

Key Takeaways

E, H-1B, H-1B1, L-1, O-1, and TN workers have up to 60 days, or until the I-94 ends if sooner, once per validity period, after a job ends.
No work is allowed during the grace period without separate authorization.
Options include a new employer's petition (with H-1B portability for eligible workers), a change of status, a compelling circumstances EAD, or departure.
A pending I-485 may provide separate work authorization and job flexibility.
DHS may shorten the grace period, so act quickly.

Recently lost your job on a work visa? Schedule a consultation to map out your options within the grace period.

Sources and References

8 CFR 214.1: Grace periods for E, H-1B, H-1B1, L-1, O-1, and TN, paragraph (l)
8 CFR 214.2: H-1B portability, (h)(2)(i)(H)
8 CFR 204.5: Compelling circumstances employment authorization, (p)
INA § 214(n) (8 U.S.C. § 1184): H-1B portability

This document provides general information only and does not constitute legal advice. Immigration law is complex and individualized. Outcomes depend on specific facts and circumstances. No results are guaranteed. Always consult with a qualified immigration attorney before making decisions about your immigration case.