When Does the 60-Day Grace Period Begin After H-1B or L-1 Employment Ends?

By Ruijie Zhang

For many foreign national employees, the end of a job also starts an immigration timeline. Workers in H-1B, L-1, O-1, TN, E-1, E-2, E-3, and H-1B1 status may be eligible for a discretionary grace period of up to 60 consecutive calendar days after employment ends, or until the end of their authorized validity period, whichever is shorter.

The key question is simple but important: when does that 60-day clock actually start?

As a general rule, USCIS guidance treats the maximum 60-day grace period as starting the day after termination of employment. In many cases, that means the day after the employee's last day of work for which salary is paid. The analysis can become more complicated, however, when a separation package includes severance, paid notice, garden leave, or continued payroll after a layoff notice.

Severance After a Clean Break

If the employer terminates the employee as of a specific date, and after that date the employee is no longer expected or permitted to perform work, the employment relationship has generally ended. Payments made after that point are usually treated as severance, not ongoing salary for active employment.

In that situation, the grace period generally begins the day after the effective termination date, even if severance payments continue for weeks or months. For example, if employment ends on March 1 and the employee receives severance for 90 days, the 60-day grace period would generally begin on March 2.

Paid Notice Period or Active Payroll

The analysis may be different when the employee remains on active payroll after a notice date. If the employer continues to pay regular salary, retains the right to assign work within the approved position, and the employee remains obligated to perform that work if requested, the employment relationship may continue through the notice period.

For example, if the employer gives notice on March 1 but keeps the employee actively employed and paid through May 30, the grace period may begin on May 31. The supporting documents should clearly reflect that the employee remained employed during that period, rather than receiving severance after termination.

Why the Details Matter

A small wording difference in a separation letter can create a major immigration consequence. Employees and employers should pay close attention to how the end of employment is documented, especially where the employee's I-94 will expire soon or a new employer petition must be filed quickly.

• Effective termination date: The document should clearly state the date employment ends.
• Type of pay: Regular salary, paid notice, and severance should not be described interchangeably.
• Work obligation: If the employee remains employed, the document should explain whether the employee must remain available to work if asked.
• Immigration records: Pay statements, HR records, and any employer withdrawal notice should be consistent with the stated employment end date.

What Employees Should Do After a Layoff

Employees should act quickly after a layoff. The grace period is not a period of open-ended work authorization, and it may be shorter than 60 days if the I-94 expires earlier. Practical steps include:

• Confirm the exact employment end date in writing.
• Keep copies of the separation notice, pay statements, I-94, approval notice, and any severance or paid notice agreement.
• Speak with immigration counsel quickly, especially if the I-94 expires before the full 60 days.
• Do not work during the grace period unless separately authorized.
• File any new employer petition, change of status, or other immigration request before the applicable deadline.

Employer Considerations

Employers that want to offer a paid notice period should coordinate the employment, payroll, immigration, and HR documentation before issuing the separation paperwork. If the employee is still employed, the employer should be prepared to meet any continuing wage, job-duty, and compliance obligations connected to the worker's visa classification.

Because the 60-day grace period is discretionary and fact-specific, clear documentation is one of the best ways to reduce uncertainty for both the employee and the employer.

Bottom Line

The 60-day grace period usually begins the day after employment ends, not necessarily the day severance payments stop. If an employee is truly terminated and then receives severance, the clock generally starts after the termination date. If the employee remains on active payroll, continues to receive regular salary, and remains available to work during a notice period, the clock may start after that employment period ends.

Every case depends on the facts, the documents, the visa classification, and the remaining validity period on the worker's immigration documents. Employees facing a job loss should seek advice as early as possible so they can protect their status and understand their next steps.

Disclaimer: This article is for general information only and does not constitute legal advice. Each case depends on its specific facts and procedural posture.