Ibrahim Gardner
International students in the United States are usually enrolled in academic programs under one of two non-immigrant student statuses: F-1 or J-1. The majority of international students hold F-1 status, which allows them to enter the US as full-time students at accredited academic institutions. While studying in the US, international students on F-1 visas may seek employment to gain work experience and earn money. However, regulations on F-1 visas place limitations on where and when they can work. During their first academic year, F-1 students can only work on-campus, and off-campus employment is restricted to specific circumstances, such as Curricular Practical Training (CPT) or Optional Practical Training (OPT). To avoid legal issues, international students must carefully follow the rules and requirements of their visa status when seeking employment opportunities.
| Characteristics | Values |
|---|---|
| Student visa type | F-1, J-1, M-1, E-1, E-2, H-1B, L-1 |
| F-1 visa requirements | Enrolled in an academic program, language-training program, or vocational program; enrolled full-time; proficient in English or enrolled in courses leading to English proficiency; sufficient funds for self-support; maintenance of residence abroad |
| F-1 visa employment restrictions | Students cannot work off-campus during the first academic year; students can accept on-campus employment subject to certain conditions and restrictions |
| F-1 visa employment options | Curricular Practical Training (CPT), Optional Practical Training (OPT), employer sponsorship, F-1 to green card lottery |
| CPT requirements | Secure training opportunity, gain approval from Designated School Official (DSO) |
| OPT requirements | Must be related to the student's area of study, receive work authorization prior to starting work |
| E-2 visa requirements | Own at least 50% of the business entity, invest a substantial amount of money into the business, generate sufficient revenue to employ several U.S. workers within five years, be close to operational |
| E-2 visa advantages | Focus time on developing and directing the business, earn an income from it |
| H-1B visa requirements | Sponsoring company submits application, subject to annual quota of 85,000, valid for up to three years and renewable up to six years, application fees between $2,010 and $3,380 |
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What You'll Learn
F-1 visa limitations
The F-1 student visa is a nonimmigrant visa for foreign national students who want to pursue degrees, diplomas, or certificates at accredited US institutions. It is the most popular student visa in the US, currently held by over 1.2 million students. While the F-1 visa allows individuals to study in the US, it places limitations on what they are lawfully allowed to do while residing in the country.
F-1 visa holders are generally not allowed to engage in "gainful employment," which means conducting any work in exchange for a salary without proper authorization. However, they may accept on-campus employment under certain conditions. F-1 students may work at any qualifying on-campus job that does not displace a US citizen or lawful permanent resident (LPR). They may work up to 20 hours per week while school is in session and full-time during school breaks or annual vacations. To receive a Social Security number, they must report their work and obtain a certification letter.
F-1 visa holders may also engage in specific types of off-campus employment after their first academic year. This includes Science, Technology, Engineering, and Mathematics (STEM) Optional Practical Training (OPT) and other off-campus employment authorized by the Designated School Official (DSO) and USCIS. Any off-campus training employment must be related to the student's area of study.
While F-1 visa holders cannot directly work for a non-legal entity, they can start a business if it complies with all relevant laws and regulations. Starting a business is considered "preliminary business planning" and not "engagement." They can incorporate a corporation or form a limited liability company (LLC), open a business bank account, meet with partners and investors, purchase equipment and inventory, and enter into contracts as long as they do not receive compensation. F-1 students can also hire employees for their businesses, but they must comply with employment laws, and the employees must be legally authorized to work in the US.
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E-1 and E-2 status
In the United States, international students typically enrol in academic programs under one of two non-immigrant student immigration statuses: F-1 or J-1. The F-1 visa is the most common, and students with this status may not work off-campus during their first academic year but may accept on-campus employment. After the first year, F-1 students may engage in three types of off-campus employment, including Curricular Practical Training (CPT), which allows them to accept practical training in their academic field. They may also be eligible to work off-campus due to severe economic hardship or special student relief.
Now, regarding E-1 and E-2 status:
E-1 status is for Treaty Traders, and E-2 status is for Treaty Investors. To qualify for E-2 classification, an employee of a treaty investor must be of the same nationality as the principal alien employer and meet the definition of "employee" under relevant law. They must also either engage in duties of an executive or supervisory nature or possess special qualifications if employed in a lesser capacity.
The E-2 nonimmigrant classification is for nationals of a treaty country, which is a country with which the US maintains a treaty of commerce and navigation or a qualifying international agreement. It allows these individuals to invest a substantial amount of capital in a US business. Certain employees of such individuals or organisations may also qualify for this classification.
The duration of E-1 and E-2 statuses varies depending on the country. For most countries, the status is valid for five years and may be extended indefinitely. However, qualified treaty investors and employees under the E-2 classification are allowed a maximum initial stay of two years, with extensions granted in increments of up to two years each. There is no limit to the number of extensions for E-2 nonimmigrants, but they must maintain an intention to depart the US when their status expires or is terminated.
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H-1B status
To obtain H-1B status, an individual must be sponsored by a US employer and meet the minimum educational requirements. The employer is responsible for filing the H-1B petition on behalf of the international employee and must certify to the US Department of Labor (DOL) that they will pay the H-1B employee the prevailing or actual wage, whichever is higher. The total processing time for H-1B applications can take up to six to seven months or longer, and the cost of the application ranges from $2,010 to $3,380, with an additional premium processing cost of $2,805.
H-1B workers can change employers if the new employer files a nonfrivolous H-1B petition with USCIS. In most cases, H-1B workers can retain their priority date when changing employers. If an H-1B worker's employment is terminated, they may have up to 60 days to find new employment, change status, or depart the country.
H-1B extensions beyond six years are possible in certain scenarios, such as if the worker is the beneficiary of an approved immigrant visa petition or if a labor certification has been filed with the Department of Labor. Extensions may be granted in one-year or three-year increments.
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Curricular Practical Training (CPT)
CPT is defined as employment that is an integral part of an established curriculum, including internships, cooperative education, and other types of required practicums. This training can be full-time (more than 20 hours per week) or part-time, and it may take place inside or outside the United States. CPT authorization is required only when the training occurs inside the US.
To apply for CPT, students must first obtain an internship offer with an international organization and then work with their Designated School Official (DSO) to complete the necessary forms and submit them to the United States Citizenship and Immigration Services (USCIS). The DSO will determine the student's eligibility and enter their recommendation into the Student and Exchange Visitor Information System (SEVIS). Students must also complete the CPT Certification Course and obtain a Detailed Training Description from their employer.
It is important to note that CPT authorization is strongly recommended for all unpaid internships, even if employment authorization documents are not required by the company. Additionally, 12 months or more of full-time CPT will eliminate eligibility for Optional Practical Training (OPT).
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Optional Practical Training (OPT)
To be eligible for pre-completion OPT, students must have been lawfully enrolled on a full-time basis for one full academic year at a college, university, conservatory, or seminary that has been certified by the U.S. Immigration and Customs Enforcement (ICE) Student and Exchange Visitor Program (SEVP) to enroll F-1 students. Students who are authorized for pre-completion OPT may work up to 20 hours per week while school is in session and full-time when school is not in session.
Post-completion OPT can be applied for after completing studies. Students authorized for post-completion OPT must work at least 20 hours per week, either part-time or full-time. If a student has already received one year of full-time pre-completion OPT, they will not be entitled to any period of post-completion OPT employment authorization.
There are two instances in which the period of OPT can be extended. The first instance is for students who hold a STEM degree (Science, Technology, Engineering, or Math) and are hired by an employer enrolled in the E-Verify government program. In this case, the student may apply for a 24-month extension of their post-completion OPT employment authorization. The second instance is for students who have filed and have a pending H-1B petition; in this case, the extension of status and work authorization is automatic.
The OPT application process involves several steps and players, and students can file for OPT up to 90 days before the program end date on the Form I-20 and no later than 60 days after the program end date. Students do not need a job offer before applying for OPT, and their job may be anywhere in the United States. However, students cannot begin work on OPT until they have received the EAD work card and the validity period has begun.
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Frequently asked questions
International students in the US on an F-1 visa can work, but there are restrictions on when and where. During the first academic year, students can only work on-campus for up to 20 hours per week when classes are in session and up to 40 hours per week when they are not. After the first year, students can undertake Curricular Practical Training (CPT) and off-campus employment.
Curricular Practical Training (CPT) is work authorization that allows F-1 students to accept practical training related to their academic field of study. CPT may be a paid or unpaid internship, cooperative education job, practicum, or other experience in their field of study.
F-1 students can hire employees to work for their LLC or corporation and can even hire a managing employee to operate the company and earn an income. However, F-1 students cannot work for their business without work authorization. To start their own business, international students can pursue an E-2 investor visa. This requires them to own at least 50% of the business entity and invest a substantial amount of money into it.
