WASHINGTON — The Trump administration is moving to eliminate the up-to-60-day grace period that allows many foreign professionals to remain in the United States after losing their jobs, a change that could significantly reshape hiring and layoffs across technology, healthcare, consulting and other industries dependent on skilled foreign workers.
The Department of Homeland Security filed a proposed rule Thursday that would remove the grace period for workers in several employment-based visa categories, including H-1B, L-1, O-1 and TN visas.
The change is not yet in effect.
But if finalized, it would mean that a worker whose legal status is tied to a particular job could generally be required to leave the United States immediately when that employment ends unless the worker already has another lawful basis to remain.
That is a major change from the current system.
Today, an H-1B worker who is laid off can generally receive up to 60 days to find another employer willing to sponsor the worker, change immigration status or make arrangements to leave the country.
That window can be critical because changing employers is not as simple for a visa worker as it is for an American employee.
A new employer generally must be willing to handle immigration paperwork and file the necessary petition.
Under the proposed rule, that cushion would disappear.
DHS argues that employment-based immigration status should remain directly connected to the employment that allowed the worker to enter or stay in the country in the first place.
The agency also says eliminating the grace period would reduce administrative burdens.
For employers, however, the consequences could be substantial.
Technology companies employ large numbers of H-1B workers in software engineering, artificial intelligence, semiconductors and other specialized fields.
Hospitals and healthcare systems use employment visas for physicians and other professionals.
Universities, financial institutions, consulting firms, manufacturers and engineering companies also rely on foreign talent.
If losing a job can immediately jeopardize a worker’s ability to remain in the country, changing employers becomes considerably more difficult.
That could also alter the balance between companies and sponsored employees.
A worker who knows that termination could quickly force a departure from the United States may be much less willing to leave an existing employer for a new opportunity.
Businesses attempting to recruit an H-1B employee away from another company could also face much tighter timing.
There is another consequence during layoffs.
When a company eliminates hundreds or thousands of positions, American employees may have weeks or months to search for another job while remaining where they live.
Foreign employees whose immigration status depends on those jobs could face an entirely different clock.
That makes workforce reductions more complicated for companies with large numbers of visa holders.
The proposal would apply not only to H-1B professionals but to workers in E-1, E-2, E-3, H-1B1, L-1, O-1 and TN classifications, along with affected dependents.
DHS itself acknowledged that the existing grace period was originally created partly so highly skilled workers could more readily find new employment and so American employers could more easily recruit workers already in the country.
The administration is now concluding that those benefits do not justify continuing the policy.
The proposal will go through a public-comment process before a final rule can take effect.
But for businesses competing for specialized workers, the significance is already clear.
A rule that appears to deal with what happens after someone loses a job could ultimately affect who companies can recruit, how easily workers can move between employers and whether highly skilled foreign professionals decide the United States remains an attractive place to build their careers.
JBizNews Desk | Washington
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