Hiring International Students
Introduction
Work Authorization
Practical Training for F-1 Students
Academic Training for J-1 Students
Employer Legal Obligations
Minimal Paperwork for Employers
What About Taxes?
Changing Visa Status to Enable Longer-Term Employment
FAQs
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 information addresses concerns employers might have about international students and work.
Employers, on occasion, have the perception that hiring international students can be very difficult and time consuming due to paperwork. However, many employers are willing to hire foreign students once they find out how easy it can be and how exactly they can go about hiring them.
International students who are in the U.S. in legal F1 or J1 student (non-immigrant) status are generally eligible for some type of student work authorization upon completion of their studies. These types of work authorization allow the student to work in their field of study upon completion of the degree program for a limited time frame, provided they receive the necessary authorization before beginning the employment. The amount of time for each type of work authorization and authorization procedures vary according to the student's immigration status and whether or not they used any of this work authorization while still a student.
For the most part, employers count on international students to apply for student work authorization to begin their employment with the company. At some point (usually within the first six months of the employment) the employer begins to process the necessary immigration paperwork to be able to continue to employ the international worker on an employment visa in anticipation of the expiration of the student's limited amount of work authorization. Employers are responsible and are in control of the application for an employment visa and students need to consult with them to find out how and when the employer will go about applying for the work visa.
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 (OPT)
Most F1 students are eligible to be employed for 12 months in their field of study for "Optional Practical Training". These 12 months do not need to be continuous - for example, a student may work for three months at an internship after their junior year and for nine months after graduation. To apply for this type of training, a student does not need to have a specific position. Requirements for employment include:
- The job must be directly related to the student's field of study.
- The job may take place anywhere in the U.S.
- The job must be appropriate for the student's level of education.
- The student must have had student status for at least nine months prior to employment.
It is the student's responsibility to apply for employment authorization before starting to work. There are two main steps students need to go through to receive work authorization:
- Recommendation from Foreign Student Advisor
- Authorization from Immigration Services
A student's permission to begin Optional Practical Training is not finalized until they have received an "Employment Authorization Document" (EAD) from the INS. It can take from 30 to 90 days for the application to be processed through the INS, so students are encouraged to apply early. For Practical Training after completion of the degree, students must submit their application for authorization during the period between 120 days before and 60 days after the completion of the program of study.
Curricular Practical Training (CPT) 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 (DSO). Since each institution has different policies related to curricular-related employment, students should speak to the DSO 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.
International students who have applied for and were granted authorization to accept employment under practical or academic training will have documentation of current eligibility to present to a prospective employer as described above. To obtain assistance in verifying the employment eligibility of a Loyola University Chicago international student, please contact the Office of International Programs at (773) 508.3899.
The Immigration Reform and Control Act (IRCA) of 1986 did not change the rights and privileges of non-immigrant students wishing to accept jobs in this country. For employers, the new law prescribed specific procedures to be followed in verifying the employment eligibility of any individual they wish to hire.
All employees, including international students, must complete the I-9 "Employment Eligibility Verification" form. This is simply a record that the employer has verified the identity and legal employment eligibility of every person hired.
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 CIS. 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 CIS 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.
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.
Changing Visa Status to Enable Longer-Term Employment
If an employer should want to retain an F1 or J1 student beyond the practical or academic training period, it may be possible to secure an H-1B (Temporary Worker) visa. Application for the H-1B visa is made by the employer through the Department of Labor and Immigration and Naturalization Service (INS). Although services of an attorney are not required, these applications should be prepared with careful attention to the instructions provided concerning documents to be submitted with the completed forms. The entire process can from a few months to more than six months. An H-1B visa may be continued for up to six years. It is intended for "professional" employment. There is no requirement that American citizens be recruited or preferred for H-1B positions.
Another option for longer-term employment is the L visa. This is for foreign nationals who have been employed abroad for a minimum of one year by a U.S. firm or corporation, or the affiliate or subsidiary of a U.S. company. These employees may transfer to the U.S. to continue their employment on L visas. The employer applies with the U.S. INS for the L visa, which permits foreign nationals to continue employment for up to three years.
All of these options focus on non-immigrant visas. Employers often favor these types of visas because they represent a much smaller time and resource commitment to obtain than immigrant visas. Employees who intend to return to their home countries after having established themselves professionally over a few years do not need to pursue immigrant visa status. For information about obtaining "green cards" or immigrant visa/permanent resident status for employees, please contact the United States Immigration and Naturalization Services.
For more information, visit Loyola University Chicago's Office of International Programs - Hiring an International Worker
This document was originally published in 2000 with a grant from NAFSA: Association of International Educators Region XII. 2004 revision by Laurie Cox, University of Southern California, and Co-Chair of SCICC (Southern California International Careers Consortium); co-editors: Lay Tuan Tan, California State University Fullerton, and SCICC Board member and Phil Hofer, University of La Verne.