DHS proposes to end the 60-day grace period for TN, L-1 and E-2 workers

What changed

The rule itself has not changed yet. What is new is a DHS proposal published on September 11, 2026 that would remove it. Below is the rule as it stands, what the proposal would do and what it leaves alone.

The rule today

Under the US federal regulation at 8 CFR 214.1(l)(2), a worker in TN, L-1, E-1 or E-2 status (among others), and the worker's dependents, is not treated as out of status only because the job ended. The protection lasts up to 60 consecutive days or until the authorized validity period ends, whichever comes first. It is available once in each authorized validity period. The worker may not work during this time unless separately authorized. TN, L-1 and E-2 workers all rely on this same rule; there is no separate grace period for each status.

The grace period is discretionary: DHS may shorten or eliminate it in an individual case. It took effect on January 17, 2017, under the 2016 AC21 final rule (81 FR 82398), as the DHS notice in the Federal Register explains.

What the proposal would change

The proposed rule, titled Eliminating the Discretionary 60-Day Grace Period (FR Doc. 2026-18631, 91 FR 57807), would delete paragraph (l)(2) from 8 CFR 214.1. Workers and their dependents would both lose the window. DHS says a worker would then have to leave the United States immediately once the job or activity behind the status stops, unless the worker has another lawful basis to stay.

The rule is proposed, not final, and has no effective date. DHS figures in the proposal give a sense of scale. From fiscal year 2021 through fiscal year 2025, 328,758 workers across all eight covered classes lost a job or changed employers, and 99 percent of them held H-1B status. For 5.77 percent of that group, a new employer filed a Form I-129 petition within 60 days after the old employer withdrew its approved petition.

What stays the same: the 10-day grace period

A separate period of up to 10 days after the validity period ends, in 8 CFR 214.1(l)(1), is not part of the proposal. It covers TN, L-1, E-1 and E-2 workers, among others. As DHS notes in the proposed rule, that 10-day period starts only when the validity period ends. It does not help someone whose job ends partway through a stay.

Who is affected

This is a US federal rule. It does not change any Canadian, Ontario or New York law. If DHS finalizes it as proposed, these groups would lose the 60-day window:

• TN professionals working under the USMCA, and their TD spouses and children (see our help for TN professionals and their employers).
• L-1A and L-1B intracompany transferees, and their L-2 spouses and children (see our work on L-1 intracompany transfers).
• E-1 treaty traders and E-2 treaty investors, employees of treaty businesses who hold E status, and their families in E status (see our help for E-2 investors and their treaty employees).
• Businesses with TN, L-1 or E workers in the US, including Canadian companies with a US subsidiary, if layoffs or a restructuring are possible.

The proposal also covers E-3, H-1B, H-1B1 and O-1 workers. This alert focuses on TN, L-1, E-1 and E-2.

What to do now

Today, a worker whose job ends can still rely on the grace period of up to 60 days, unless DHS shortens or eliminates it in that case. The risk is a plan that assumes the window will always be there.

If you are a worker

• Plan before a job ends. If layoffs, a sale of the business or a restructuring are possible, choose your next route now and gather the documents it needs. Under the proposal, there may be no time to arrange it after your last day of work.
• Know the current options. The proposal lists what a worker can do today besides leaving the United States: file Form I-539 to change to another nonimmigrant status, file Form I-485 to adjust status, apply on Form I-765 for a compelling-circumstances work permit, or be the beneficiary of a nonfrivolous change-of-employer petition on Form I-129. Each has its own eligibility rules. For example, under 8 CFR 204.5(p) the compelling-circumstances work permit requires an approved employment-based immigrant petition and is limited to certain statuses, including L-1. TN, E-1 and E-2 workers are not on that list.
• Do not keep working during the grace period unless you have separate permission to work.
• Plan as a family. Your spouse and children rely on the same grace period, so their next steps depend on yours.

If you are an employer

• Know who holds TN, L-1 or E status on your team and when each person's validity period ends.
• Build immigration timing into any layoff or restructuring plan, so affected workers can act while the current rule applies.
• If you plan to hire someone whose job elsewhere has ended, a change-of-employer petition on Form I-129 is one of the options DHS lists today.

For a wider view of the routes, see our guide to choosing a US work route as a Canadian. If a job loss or restructuring is coming, our lawyers can review your facts. Our page on cross-border work and investor status services lists the matters we handle for Canadians and US employers.

Key dates

• January 17, 2017: The current grace period of up to 60 days took effect.
• September 11, 2026: DHS published the proposed rule in the Federal Register.
• November 10, 2026: Last day to comment. The online docket accepts comments until just before midnight Eastern Time that day.
• Effective on: No date. DHS has not published a final rule. We will update this page if it publishes one or withdraws the proposal.

How to comment on the proposal

Anyone can comment. Under the proposed rule, comments go through the Federal eRulemaking Portal at regulations.gov. Each comment must name the agency, U.S. Citizenship and Immigration Services, and DHS Docket No. USCIS-2026-0364. Write in English or include an English translation. DHS says the most useful comments point to a specific part of the proposal, explain the reason for any change they recommend and include supporting data or authority.

Comments are posted publicly as submitted, including any personal information in them. Emails or letters to DHS or USCIS officials do not count as comments. DHS and USCIS do not accept hand-delivered or couriered comments, and USCIS is not accepting mailed comments.