Getting laid off is stressful for anyone. On a U.S. work visa, it also starts a series of immigration, health insurance and employment deadlines.
For H-1B, L-1, O-1, E and TN workers, current regulations generally allow a discretionary grace period of up to 60 consecutive days after employment ends, or until the end of the authorized validity period, whichever comes first. DHS has now proposed removing that grace period, but the proposal is not final. The 60-day rule remains in effect as of September 28, 2026.
F-1 students on OPT operate under a different system. They do not get the same 60-day grace period. Instead, they have a limit on the number of days they can be unemployed while maintaining OPT.
That makes the first week after a layoff important. Here is what needs attention first.
Day 1: Identify the status and start date of the clock
The first question is not “How long do I have to find a job?”
It is: What immigration status am I actually in, and when did employment end?
For H-1B, L-1, O-1, E and TN workers, the current regulation provides up to 60 days of grace following the cessation of employment or activity that supported the status, unless DHS shortens the period. The grace period also cannot extend beyond the person’s existing authorized validity period.
That is the window available under the current rule.
But it is not a 60-day work authorization period. The grace period generally gives the person time to take steps such as finding a new employer and filing the appropriate immigration paperwork. It does not simply allow continued employment after the old job ends.
DHS published a proposed rule on September 11, 2026, that would remove this grace period for several employment-based nonimmigrant categories. The proposal is still going through the rulemaking process, with comments due November 10. It is not the current rule.
Day 1: If you are on OPT, calculate unemployment days instead
F-1 students on post-completion OPT face a different clock.
Regular post-completion OPT allows up to 90 days of unemployment during the OPT period. A student with a 24-month STEM OPT extension receives an additional 60 days, for a total of up to 150 days across the combined OPT and STEM OPT periods.
The important difference is that this is an unemployment limit, not a new 60-day grace period after a layoff.
OPT students also have reporting obligations. Changes involving employment, address and other required information generally must be reported within 10 days through the applicable SEVP process.
Do not wait until the unemployment counter is nearly exhausted to start looking for another qualifying job.
Days 1 to 3: Get the layoff paperwork
Ask the former employer for written confirmation of:
- The last day of employment
- The effective date of termination
- The immigration petition or status involved
- Any severance period
- The date health insurance ends
- COBRA information
- The final pay date
- Copies of recent pay stubs and the relevant immigration documents
This paperwork can become important if a new employer files an H-1B petition or if an immigration attorney needs to establish exactly when employment ended.
For H-1B workers, the employer also has immigration obligations when employment ends. The Department of Labor notes that employers must notify USCIS of changes in an H-1B worker’s employment status, including termination.
Keep copies of everything. Once the company account is closed, retrieving documents can become much harder.
Days 2 to 4: Deal with health insurance before it becomes an emergency
Losing a job can also mean losing employer-sponsored health insurance.
COBRA may allow eligible employees and dependents to continue the existing employer plan. Under federal COBRA rules, the employer generally has 30 days to notify the plan administrator of a qualifying termination. The plan administrator generally then has 14 days to provide the COBRA election notice after receiving the qualifying-event notice. If the employer is also the plan administrator, the applicable notice period can run up to 44 days.
Once the COBRA election notice is provided, the qualified beneficiary generally has at least 60 days to elect COBRA, measured from the later of the notice date or the date coverage would otherwise end.
So do not assume that a COBRA notice arriving weeks after the layoff means the right to elect COBRA has disappeared.
There is another option: the ACA Marketplace.
Losing job-based health coverage generally creates a Special Enrollment Period. HealthCare.gov says people can generally enroll within 60 days after losing qualifying job-based coverage.
Compare the actual premiums and out-of-pocket costs before choosing between COBRA and Marketplace coverage. COBRA can preserve the existing network and plan, while a Marketplace plan may have different providers, deductibles and subsidies.
Days 3 to 5: Check unemployment benefits, but do not assume eligibility
Unemployment insurance is largely administered at the state level, so immigration status and eligibility need to be analyzed together.
A person generally needs to be legally authorized to work during the period for which unemployment benefits are claimed. For a worker whose employment authorization is tied to a specific employer, a layoff can therefore create a problem that does not exist for someone with unrestricted employment authorization.
That makes H-1B unemployment claims more complicated than simply asking whether the person was laid off through no fault of their own.
H-4 EAD holders can be in a different position because an EAD is not tied to a single employer. Permanent residents also generally have unrestricted employment authorization, although state-specific unemployment eligibility requirements still apply.
The key point is simple: do not assume that a visa holder is either automatically eligible or automatically ineligible. Check the rules of the state where the claim will be filed and the employment authorization available during the claimed period.
Days 4 to 6: If an I-485 is pending, check AC21 portability
A layoff becomes more complicated when a worker is already in the green card process.
For certain employment-based applicants with an approved I-140 and a Form I-485 that has been pending for at least 180 days, AC21 portability can allow the applicant to move to a new employer if the new job is in the same or a similar occupational classification. USCIS confirms that the portability rules apply to qualifying EB-1, EB-2 and EB-3 adjustment applicants.
That 180-day threshold matters.
It does not mean that someone with a pending I-485 automatically has 180 days to remain unemployed.
The immigration rules governing the pending adjustment application and the worker’s underlying nonimmigrant status are separate questions.
Someone who has an I-485 pending should therefore look at both:
- Whether the I-485 qualifies for AC21 portability.
- Whether the person still has lawful nonimmigrant status or another basis to remain in the United States while the new employment situation is resolved.
This is one area where a quick immigration-law review can be more valuable than trying to interpret the 180-day rule alone.
Days 5 to 7: Get the new employer moving
If another company is ready to hire an H-1B worker, do not wait until the final days of the grace period to start the petition.
The new employer may need to prepare and file an H-1B petition, including the required Labor Condition Application and supporting documentation.
Premium processing can speed up USCIS action on eligible Form I-129 petitions. Since March 1, 2026, the USCIS fee for H-1B premium processing is $2,965. USCIS’s premium-processing rules provide a 15-business-day timeframe for eligible H-1B Form I-129 cases, although an RFE or NOID can stop and restart the applicable clock.
Premium processing is not a substitute for filing correctly or filing on time. It simply gives an eligible case a much faster USCIS action timeframe.
The earlier the new employer’s immigration team starts, the more options remain if something goes wrong.
What about the $100,000 H-1B fee?
A laid-off H-1B worker may also be seeing headlines about the $100,000 H-1B payment requirement.
That issue is separate from the normal H-1B transfer process.
The administration has extended the underlying proclamation through September 21, 2027, but the payment requirement remains subject to the court litigation and current court orders. It should not be treated as an automatic $100,000 charge on every H-1B transfer filed by someone already working in the United States. See also: $100,000 or $103,265? What the viral H-1B fee videos keep getting wrong.
The practical question for a laid-off worker is therefore not simply “Is there a $100,000 fee?”
It is: What type of petition is the new employer filing, where is the worker located, and what is the worker’s current immigration status?
Those details determine which rules apply.
The first week in one table
| Status or issue | What matters first |
|---|---|
| H-1B | Current rule allows up to 60 days of discretionary grace, or until authorized validity expires, whichever is earlier |
| L-1 / O-1 / E / TN | Same current up-to-60-day discretionary grace framework |
| Proposed grace-period change | Not final as of Sept. 28, 2026 |
| F-1 OPT | 90-day unemployment limit |
| F-1 STEM OPT | Up to 150 days total unemployment across OPT and STEM OPT |
| OPT reporting | Employment and other required changes generally must be reported within 10 days |
| Health insurance | Check coverage-end date, COBRA notice and Marketplace SEP immediately |
| COBRA | At least 60 days to elect after the applicable notice/coverage-loss trigger |
| Marketplace | Generally 60 days after loss of job-based coverage to enroll |
| Pending I-485 | Check whether AC21 portability applies after 180+ days |
| New H-1B employer | Start petition preparation immediately rather than waiting for the grace period to expire |
| Premium processing | Current H-1B Form I-129 premium-processing fee is $2,965 |
The first seven days are about preserving options
A layoff does not automatically mean that a visa holder has to leave the United States immediately.
But it does mean several different clocks can start running at once.
For H-1B, L-1, O-1, E and TN workers, the current regulation provides up to 60 days of discretionary grace, subject to the person’s authorized validity period. For OPT students, the relevant clock is the unemployment limit. For someone with a pending green card application, AC21 portability may provide another important path.
Health insurance has its own deadlines, and those do not wait for the immigration process.
The biggest mistake is treating the first week like a normal job search.
Day one should be about calculating the immigration deadline, securing the employment records, checking health coverage and getting the next employer’s immigration team involved.
The proposed elimination of the 60-day grace period makes that planning even more important. But as of September 28, 2026, the proposal is still only a proposal. The current grace-period rule remains in place.
For F-1 workers facing other status changes, see [A Court Blocked the F-1 “End Date” Rule One Day Before It Took Effect. What Applies Now?] for the latest status-rule developments.
Sources
- USCIS: Employment Options Following Termination of Employment
- Federal Register: September 11, 2026 proposed rule on the employment-based nonimmigrant grace period
- Study in the States: OPT employment and reporting requirements
- U.S. Department of Labor: H-1B program requirements
- U.S. Department of Labor: COBRA continuation coverage
- HealthCare.gov: Losing job-based health insurance
- USCIS Policy Manual: AC21 adjustment portability
- USCIS: Form I-907 Premium Processing Service
