TN and E-3 Workers Would Also Lose Their Grace Period Under DHS's New Proposal

DHS proposed cutting the 60-day grace period for TN and E-3 workers too, not just H-1B, L-1 and O-1 -- here is what is proposed versus what is true today.

Part of our guide to the H-1B 60-day grace period.

If you're on TN or E-3 status and you've just seen the headlines about DHS wanting to cut the grace period for laid-off workers, here's the direct answer: as of September 12, 2026, nothing has changed yet. You still have up to 60 days, or until your authorized stay runs out, whichever is shorter, to find a new job, change status, or leave the country after losing the position that supports your TN or E-3. What DHS published on September 10-11, 2026 is a proposal to eliminate that grace period going forward, not a rule that is in effect. Comments on the proposal close November 10, 2026, and there's no confirmed date when — or whether — it becomes final.

That said, if you're TN or E-3 and you lose your job, you have a second problem that has nothing to do with this proposal: your status ends anyway, because TN and E-3 classifications are tied to one specific employer and one specific listed occupation. This post walks through exactly what's proposed, what's still true today, and how TN and E-3 job loss compares to what H-1B workers go through.

What DHS actually proposed, and when

On September 10-11, 2026, the Department of Homeland Security published a proposed rule that would eliminate the discretionary 60-day grace period currently available to nonimmigrant workers who lose the job underlying their status. Earlier reporting on this proposal focused on H-1B, L-1 and O-1 workers. The proposal as published also reaches TN and E-1/E-2/E-3 workers — a broader scope than many first assumed, as detailed in Reddy Neumann Brown's summary of the proposed rule.

Here's the status, stated plainly:

A proposed rule published in the Federal Register is DHS asking for public input before it decides whether, and how, to finalize a change. It is not law. It is not guidance USCIS officers are applying today. Until a final rule is published with its own effective date, the current 60-day framework governs.

The rule that's actually in effect right now

As of today, a TN or E-3 worker who loses the job that supports their status is treated the same way as H-1B, L-1 and O-1 workers under existing regulation: USCIS may extend a discretionary grace period of up to 60 days, or until the end of the worker's authorized validity period, whichever is shorter, under 8 CFR 214.1(l)(2), described on USCIS's page on options for nonimmigrant workers following termination of employment. That period gives you time to:

1. Find a new qualifying job and have a new employer file the appropriate petition or, for TN, prepare a new application
2. Change to a different nonimmigrant status if one fits your situation
3. Depart the United States in an orderly way rather than accruing unlawful presence

Two words matter in that description: "discretionary" and "up to." The grace period is not an automatic guaranteed 60 days in every case — it's capped at 60 days but can be shorter if your authorized stay (as shown on your I-94) expires sooner. If your I-94 says your authorized period ends in 20 days, you get 20 days, not 60.

Why TN and E-3 are different from H-1B even without this proposal

This is the part that gets lost when TN and E-3 workers read grace-period headlines written primarily about H-1B. TN and E-3 status is fundamentally more fragile than H-1B in one specific way: it is tied to a specific employer and a specific listed professional occupation, not just to "having a job." The moment that job ends — whether the layoff happens today under the current rule or, hypothetically, under a future rule with no grace period — your TN or E-3 eligibility for that position ends immediately and independently of whatever the grace-period rule says.

Compare that to how H-1B and TN diverge in practice:

In other words: even in a world where the grace period is never touched, a TN or E-3 worker who's laid off has already lost their underlying status eligibility for that job. The grace period is what gives you room to do something about it — find a new TN-qualifying position, change status, or leave in an orderly way. A proposal to remove that room doesn't change the day-one loss of eligibility; it changes how much runway you have afterward.

If you're comparing your own situation to how H-1B layoffs are typically discussed, it's worth reading how TN visa job loss compares to an H-1B layoff in more detail, since the mechanics diverge in ways that matter for your next move.

What happens step by step if you lose your TN or E-3 job today

1. Your qualifying employment ends. TN or E-3 eligibility for that specific position ends the same day, regardless of grace-period rules.
2. The current 60-day (or shorter) discretionary grace period begins. The clock runs from the day the qualifying employment stopped, not from a later date you choose.
3. You assess your options inside that window: a new TN-qualifying job offer and application, a different visa category if you qualify, or a return to your home country.
4. You confirm your remaining I-94 validity. If your authorized stay ends before the 60-day mark, that earlier date controls — not the full 60 days.
5. You file or depart before the shorter of the two deadlines. Waiting until day 55 to start is not a safety margin; time-sensitive steps like a new TN application or petition need lead time.

Because TN status can, in some cases, be re-established relatively quickly with a new qualifying employer and NAFTA/USMCA professional-category paperwork, some TN workers move faster through this process than H-1B workers waiting on a full I-129 transfer petition. That's a structural feature of TN, not something this proposal changes — and it's also not something you should assume applies to your specific occupation category without checking. For background on how TN eligibility works across occupations and employer situations, see this complete guide to the TN visa.

How this differs from the separate F-1 grace-period change

It's easy to conflate this proposal with a different, already-scheduled change affecting F-1 students: the Duration-of-Status rule cutting the F-1 post-completion grace period, which has its own separate timeline and is under active litigation. That F-1 rule and this TN/E-3/H-1B/L-1/O-1 worker grace-period proposal are not the same thing, apply to different populations, and are at different stages — one is a scheduled rule under court challenge, the other is a proposal still in the comment period. If you're an E-3 holder who came through an F-1 pathway, or you're advising someone who did, keep these two tracks distinct rather than assuming a headline about one applies to the other.

Common mistakes

• Assuming the grace period is already gone. It is not. As of 2026-09-12 it is a proposal with an open comment period closing 2026-11-10, not a final rule.
• Confusing this with the F-1 student grace-period rule. They are separate rules, separate populations, and separate timelines. Don't apply facts from one to the other.
• Assuming TN status survives if you "still have grace period days left." The grace period buys you time to act; it does not extend your TN eligibility for the job that ended.
• Waiting until the end of the 60-day window to start next steps. New petitions, applications, and status changes take processing time you don't get back by waiting.
• Ignoring your I-94 date. The grace period is 60 days or your remaining authorized stay, whichever is shorter — check the I-94, not just the calendar.
• Treating a proposed rule as something to plan your whole timeline around. Comments haven't even closed. Plan around what's actually in effect today, and revisit if a final rule is published.

If you came from a Canadian or Mexican background into TN and are weighing whether an eventual H-1B path makes more sense long-term, it's worth understanding the tradeoffs between TN and H-1B before a layoff forces the decision on a deadline. And if you're on E-3 specifically, the mechanics of maintaining and renewing that status are covered in this E-3 visa guide for Australians.

Frequently asked questions

Has the 60-day grace period for TN and E-3 workers already been eliminated?

No. As of September 12, 2026 it has not. DHS published a proposed rule on September 10-11, 2026 that would eliminate the discretionary grace period for TN, E-1, E-2 and E-3 workers along with H-1B, L-1 and O-1 workers, but a proposed rule is not a final rule. Public comments are due November 10, 2026 and there is no confirmed effective date.

How long is the TN grace period after a layoff right now?

As of September 12, 2026, a TN worker who loses the qualifying job still gets up to 60 days, or until the remaining validity on their I-94 runs out, whichever is shorter. This is the same discretionary grace period USCIS extends to H-1B, L-1, O-1 and E-visa workers, and it has not changed yet under the new proposal.

Does losing my TN job end my status even if the grace period survives?

Yes, separately from any grace-period outcome. TN status is tied to a specific employer and a specific listed occupation, so the underlying qualifying activity ends the moment the job ends, regardless of what happens with the grace-period rule.

Is the TN and E-3 situation the same as the F-1 grace-period change?

No, these are two different rules and mixing them up is a common mistake. The F-1 post-completion grace period is a separate rule tied to Duration of Status, and the number involved there is different from the 60-day worker grace period this proposal targets. Do not assume a change to one automatically applies to the other.

What should I do if I am on TN or E-3 and worried about a layoff right now?

Talk to a licensed immigration attorney about your specific facts as soon as a layoff looks likely, since the 60-day clock and the employer-tied nature of TN status both start running immediately. An attorney can also help you track the comment period and any court challenges that might affect the timeline before you have to make a decision.

Where to go for the real-time answer

Rules like this move fast, and the version you read today may not be the version in effect by the time you need it. Check the Federal Register notice itself, "Eliminating the Discretionary 60-Day Grace Period", for the exact proposed text and comment instructions, check USCIS.gov for any policy updates once the comment period closes, and talk to a licensed immigration attorney before making a decision based on your specific TN or E-3 facts — your own I-94 and employer paperwork govern your case more than any general explainer, including this one.

If you're navigating a layoff on TN or E-3 status and want help thinking through your job search timeline, reach out to F1Jobs — we work with international professionals across visa categories, though we're not a substitute for your attorney or DSO on the legal questions.