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Information for Employers Who
Hire International Students
Many employers are concerned
about liability related to the employment of international students in the
United States due to changes in federal laws governing non-citizens,
particularly the Immigration Reform and Control Act of 1986 (IRCA) and the
Immigration Act of 1990 (IMMACT90). This site addresses concerns employers might
have about employing international students.
Getting permission for international
students to work in the U.S. is not as difficult as many employers think. Most
international students are in the U.S. on non-immigrant student visas (F-1 and
J-1), and these international students are eligible to accept employment
under certain conditions.
Practical Training for F-1 Students
Practical training is a legal means by
which F-1 students can obtain employment in areas related to their academic
field of study. Students, in general, must have completed one academic year
(approximately nine months) in F-1 status and must maintain their F-1 status to
be eligible for practical training.
There are two types of practical training:
Optional Practical Training
Curricular Practical Training
Optional Practical Training (OPT) must be authorized by the Citizenship and
Immigration Service (CIS) based on a recommendation from the Designated School
Official (PDSO) at the school which issued the form I-20, a government document
which verifies the student's admission to that institution. The term "optional"
means that students can opt to use all or part of their total practical training
allotment of a maximum of 12 months. OPT can be authorized by the CIS: (1)
during vacation when school is not in session -full time employment is allowed;
(2) for part-time work, a maximum of 20 hours per week, while school is in
session; (3) after completing all course requirements for the degree; or (4)
full-time after completion of the course of study.
Students who have received OPT permission
will be issued an Employment Authorization Document (EAD) by the CIS. Their
name, photo and valid dates of employment are printed on the EAD. Employers
should note that the average processing time for CIS to issue the EAD is two or
three months, and students may begin employment only after they receive the EAD
which will indicate the starting and ending dates of employment.
Curricular Practical Training may be
authorized by the institution (NOT by CIS) for F-1 students participating in
curricular-related employment such as cooperative education, work study,
practicum and internship programs. Authorization is written on the back of the
I-20 student copy and will include the name of the company, beginning and ending
date, and signature of the designated school official (PDSO). Since each
institution has different policies related to curricular-related employment,
students should speak to the PDSO at their institution. Processing time for the
authorization of CPT varies at each institution. Employers should check with the
student's institution for an approximate turn-around time.
International students on F-1 visas are
eligible for both curricular practical training before finishing their studies,
as well as 12 months of OPT. However, students who work full-time on curricular
practical training for one year or more are not eligible for OPT. Those engaging
in OPT prior to graduation may work for a maximum of 20 hours per week during
their school term and 40 hours during their break period.
Academic Training for J-1 Students
Exchange students enter the U.S. on a J-1
visa. Practical training is called "academic training" for J-1 visa students.
International students on J-1 visas are eligible for up to 18 months of academic
training. Post-doctoral students are permitted three years. Some J-1 program
participants are also allowed to work part-time during the academic program.
Academic Training is granted in the form of a letter by the Responsible Officer
(RO) or Alternate Responsible Officer (ARO). Students should consult with the RO
or ARO at their institution.
Minimal Paper Work for the Employer
Fortunately, there is little paperwork for
an employer who hires F-1 or J-1 students. All paperwork is handled by the
students, the school, and INS. For curricular practical training, the school
will make a notation on the students' copy of the I-20 form indicating that
curricular practical training has been authorized, and specifying the duration
and place of employment. Students authorized for optional practical training are
required to apply to CIS (through the school) for an Employment Authorization
Document (EAD).
Continuing Employment After the Practical/Academic Training Period
Federal regulations require that
employment terminate at the conclusion of the authorized practical or academic
training. However, students on an F-1 visa, or students on a J-1 visa who are
not subject to a two-year home residency requirement, may continue to be
employed, if they receive approval for a change in visa category-usually to
H-1B. Students must have a minimum of a bachelor's degree in order to qualify
for H-1B status.
Individuals may work in the United States
for a maximum of six years under an H-1B visa. This visa is valid only for
employment with the company that petitioned for them. They must re-apply to the
INS if they wish to change employers. As soon as the initial job offer is made,
they should petition for an H-1B visa if employment is likely to extend beyond
the practical training period.
What About Taxes?
Unless exempted by a tax treaty, F-1 and
J-1 students earning income under practical training are subject to applicable,
federal, state, and local income taxes. Information on tax treaties may be found
in Internal
Revenue Services Publication 519, U.S. Tax Guide for Aliens, and 901, U.S.
Tax Treaties.
Generally, F-1 and J-1 students are
exempted from social security and Medicare tax requirements. However, if F-1 and
J-1 students are considered "resident aliens" for income tax purpose, social
security and Medicare taxes should be withheld. Chapter 1 of Internal Revenue
Services Publication 519, U.S. Tax Guide for Aliens explains how to determine
the residency status of international students.
More information on social security and
Medicare taxes can be found in Chapter 8 of Internal Revenue Services
Publication 519, U.S. Tax Guide for Aliens and in Section 940 of
Social Security
Administration Publication No. 65-008, Social Security Handbook.
For
Your Reference:
The Code of
Federal Regulations (CFR) Title 8 and Title 22 citation numbers for regulations
governing practical training are as follows:
CFR
Title 8 citations governing IRCA requirements are:
Copies of Code of Federal Regulations are
available from the Superintendent of Documents in Washington D.C. or from the
web site:
http://www.gpoaccess.gov/cfr/index.html
Frequently Asked Questions
No. Federal regulations permit the
employment of international students on F-1 and J-1 visas within certain
limits. These visas allow students to work in jobs related to their major
field of study. F-1 students can work on "practical training." J-I students
may work on "academic training."
No. The only cost to the employer
hiring international students is the time and effort to interview and select
the best candidate for the job. The international student office handles the
paperwork involved in securing the work authorization for F-1 and J-1
students. In fact, a company may save money by hiring international students
because the majority of them are exempt from Social Security (FICA) and
Medicare tax requirements.
F-1 students are eligible for
curricular practical training before completing their studies, as well as an
additional 12 months of optional practical training, either before or
following graduation, or a combination of the two. However, if they work
full-time for one year or more of curricular practical training, they are
not eligible for Optional Practical Training.
Students with a J-1 visa are usually
eligible to work up to 18 months following graduation. They may also be
eligible to work part-time during their program of study.
The Responsible Officer (RO) or
Alternate Responsible Officer (ARO) will evaluate each student's situation
to determine the length of time for which they are eligible to work.
No. International students must have
the work authorization before they begin actual employment, but not before
they are offered employment. In fact, J-1 students must have a written job
offer in order to apply for the work authorization. Many F-1 students will
be in the process of obtaining work authorization while they are
interviewing for employment. Students can give employers a reasonable
estimate of when they expect to receive work authorization.
For Optional Practical Training, F-1
students receive from INS an Employment Authorization Document (EAD), a
small photo identity card that indicates the dates for which they are
permitted to work. For Curricular Practical Training, F-1 students receive
authorization from the school (NOT from INS) on the back of the student's
I-20. "No Service endorsement is necessary" - per 8CFR 274a.12(b)(6)(iii).
J-1 students receive work authorization in the form of a letter issued by
the RO or ARO at their institution.
With a bit of planning ahead, an
employer can hire international students to continue to work for them in the
H-1B visa category for a total of six years (authorization is granted in two
three-year periods). The H-1B is a temporary working visa for workers in a
"specialty occupation." The application procedure to the CIS is
straightforward. The job must meet two basic requirements:
1) The salary must meet the prevailing
wage as defined by the Department of Labor
2) A bachelor's degree is a minimum normal requirement for the position.
No. American employers are not
required to document that a citizen of another country did not take a job
from a qualified American if that person is working under a F-1, J-1 or H-1B
visa. Employers must document that they did not turn down a qualified
American applicant for the position only when they wish to hire foreign
citizens on a permanent basis and sponsor them for a permanent resident
status ("green card").
Yes. If the internship involves no
form of compensation and is truly voluntary, the students may volunteer
without having to do any paperwork with the CIS. If, however, the internship
provides a stipend or any compensation, students must obtain permission for
practical training or academic training prior to starting their internship.
This document was published
with a grant from NAFSA: Association of International Educators Region XII.
Editors are Philip Hofer of the University of La Verne and Lay Tuan Tan of
California State University, Fullerton. The editors acknowledge contributions by
SCICC (Southern California International Careers Consortium) and the following
institutions: University of California, Santa Barbara; Worcester (MA)
Polytechnic Institute; and by the following individuals: Vince Aihara, UC Santa
Barbara; Robert Ericksen, California State University Fullerton; Adam Green,
immigration attorney; Joy Hofer, International Institute of Los Angeles; Sook
Hollingshead, University of Nevada at Las Vegas; and Carol Robertson, UC San
Diego. Printed by permission of
SCICC
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