Several recent immigration developments have immediate implications for employers managing foreign national workforces. Here are four issues to have on your radar.
1. DHS Proposes Eliminating the 60-Day Grace Period for Nonimmigrant Workers
The Department of Homeland Security has issued a proposed rule that would eliminate the discretionary grace period of up to 60 days following the end of employment for individuals in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN status, as well as their dependents. Under the current rule, eligible workers may receive a grace period of up to 60 days, or until the end of their authorized validity period, whichever is shorter, following a termination, layoff, or resignation.
The proposal has not taken effect, and the grace period rule remains available. Public comments on the proposed rule are due by Nov. 10, 2026. If finalized, affected workers may have little or no time after employment ends to secure new sponsorship, request a change of status or prepare to depart the United States.
What employers should know: No immediate change is required. However, employers considering layoffs or terminations involving sponsored workers should involve immigration counsel early. Employers seeking to hire affected workers may also need to file transfer petitions before the worker’s prior employment ends.
2. Federal Court Temporarily Blocks the New Fixed-Admission Rule
On Sept. 14, 2026, a federal court postponed implementation of the DHS rule that would have replaced “duration of status” admissions with fixed admission periods for F-1 students, J-1 exchange visitors, I foreign media representatives, and their dependents. The rule had been scheduled to take effect on Sept. 15.
As a result, the existing duration-of-status framework remains in place. F-1, J-1, and I nonimmigrants should continue to receive “D/S” on their Form I-94 rather than a fixed expiration date. The court’s order is preliminary and does not permanently invalidate the rule, so further litigation or an appeal could change the result.
What employers should know: Employers may continue to follow the existing rules for F-1, J-1, and I employees, including the current OPT and STEM OPT framework. Employees traveling internationally should review their Form I-94 after returning to confirm that they were admitted for D/S. Employers should continue monitoring the litigation but do not need to implement the fixed-date tracking procedures described in the blocked rule.
3. Salvadoran TPS and Work Authorization Continue, but Important Details Remain Unclear
USCIS has announced that Salvadoran individuals present in the United States under Temporary Protected Status continue to have TPS protection and work authorization while the government considers its next announcement. This avoids the immediate loss of employment authorization that otherwise would have occurred when the prior TPS period ended on Sept. 9, 2026. USCIS: Temporary Protected Status: El Salvador.
However, USCIS has not announced a new expiration date or issued updated Form I-9 instructions. The USCIS El Salvador TPS page still identifies Sept. 9 as the prior continuation date, even though the agency’s current alert confirms that protection and work authorization remain in effect.
What employers should know: Employers should not treat Sept. 9 as an automatic loss of employment authorization or take adverse action against an otherwise eligible Salvadoran TPS employee solely because that date has passed. Employers should retain a dated copy of the current USCIS alert, avoid entering a speculative expiration date on Form I-9 and monitor USCIS and I-9 Central for updated documentation instructions.
4. Administration Extends H-1B Proclamation, but $100,000 Fee Remains Blocked
On Sept. 18, 2026, the Administration issued a proclamation extending through Sept. 21, 2027 the underlying $100,000 payment requirement for certain H-1B petitions involving foreign nationals who must seek admission to the United States in H-1B status. However, implementation and enforcement of the payment requirement remain blocked by a federal court order, and USCIS is not currently requiring the payment. The proclamation retains the possibility of discretionary national-interest exceptions but does not alter the existing court order.
On June 8, 2026, a federal district court vacated the agency actions implementing the original payment requirement. On July 24, 2026, the U.S. Court of Appeals for the First Circuit declined to stay that ruling while the government’s appeal proceeds. USCIS has stated that DHS will comply with the court order while it remains in effect. If the order is later lifted, DHS has indicated that it intends to resume collecting the payment.
What employers should know: For now, employers are not required to submit the $100,000 payment. If the government succeeds on appeal or the court order is otherwise lifted, the payment requirement may again apply to covered filings at that time. H-1B petitions involving consular processing, port-of-entry notification or employees outside the United States therefore require careful review. Employers should also consult immigration counsel before an employee with a pending change-of-status petition travels internationally, because departure may change how the petition is processed.
Looking Ahead
These developments remain fluid. The 60-day grace-period change is only a proposal, the fixed-admission rule is blocked while litigation continues, Salvadoran TPS remains in effect without complete Form I-9 instructions, and the renewed H-1B restriction remains tied up in court.
Employers should avoid making workforce or compliance decisions based on expiration dates or headlines alone. Early coordination with immigration counsel remains especially important when planning terminations, completing Form I-9 reverification, preparing H-1B filings or advising employees regarding international travel.
If you have questions about how these developments may affect your workforce or need assistance with immigration sponsorship, Form I-9 compliance or employee travel planning, please contact a member of our Immigration Practice Group.
