USCIS Proposes Ending 60-Day Grace Period for Visa Holders After Job Loss
The U.S. Citizenship and Immigration Services is considering removing the 60-day grace period that currently allows nonimmigrant visa holders to remain in the country after losing their jobs. Meanwhile, the Department of Labor has issued additional opinion letters under the Fair Labor Standards Act. In New York City, Mayor Zohran Mamdani has established a new office dedicated to addressing worker exploitation and labor law violations.
The proposed rule, published in the Federal Register on September 11, 2026, targets the current regulatory framework that permits certain employment-based nonimmigrant visa holders to stay in the country for up to sixty days following job separation. USCIS contends this discretionary period improperly severs an alien's lawful status from the employment-based eligibility that underpins these visa classifications, while also claiming the change would reduce its administrative workload. The public comment window remains open until November 10, 2026.
Separately, the Department of Labor's Wage and Hour Division released three new opinion letters this week addressing FLSA compliance. These letters clarify that sixty-minute meal breaks remain non-compensable even with walking time, that employees volunteering for nonprofit employers may or may not require compensation depending on how distinct their volunteer duties are from their paid roles, and that FLSA supervisors cannot participate in tip pools even when performing tipped work themselves.
Eliminating the sixty-day grace period could significantly disrupt the lives of skilled foreign workers who lose their jobs, potentially forcing immediate departure or rapid visa reclassification during an already stressful period. Employers relying on such talent may face sudden workforce gaps and increased recruitment costs. The change could also affect U.S. competitiveness in attracting global talent, as other nations offer more flexible transition periods. The DOL opinion letters, meanwhile, may clarify compliance obligations for businesses, though the tip pool restriction could create operational challenges for restaurants and hospitality employers.