What
Employes Should Know About Hiring 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
brochure addresses concerns employers might have about international
students and work.
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 Immigration and Naturalization Service
(INS) based on a recommendation from the designated school official
(DSO) 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 INS: (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 INS. Their name, photo and valid
dates of employment are printed on the EAD. Employers should note
that the average processing time for INS 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 INS) 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.
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 INS (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:
F-1 students: 8CFR 214.2 (f) (9) &(10)
J-1 students: 22CFR 62.23 (f)
CFR Title 8 citations governing IRCA requirements are:
F-1 students: 8CFR 274a.12(b)(6)(iii) and 8CFR 274a.12(c)(3)(i)
J-1 students: 8CFR 274a.12(b)(11)
Copies of Code of Federal Regulations are available from the Superintendent
of Documents in Washington D.C.
Frequently Asked Questions
Isn't it illegal to hire international students because
they do not have a green card?
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."
Even if it's legal to hire international students, won't
it cost a lot of money and involve a lot of paperwork?
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.
How long can international students work in the United
States with their student visa?
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.
Don't international students need work authorization
before I can hire them?
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.
What does the work authorization look like?
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.
What if I want to continue to employ international students
after their work authorization expires?
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
INS is straightforward. The job must meet two basic requirements:
- The salary must meet
the prevailing wage as defined by the Department of Labor
- A bachelor's degree
is a minimum normal requirement for the position.
Doesn't an
employer have to prove that international students are not taking
jobs from a qualified American?
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").
Can I hire international students as volunteer interns?
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 INS. 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.
"What Employers Should Know" is available in
a single shipment of 100
copies per Region XII member institution. The copies are free; postage
and
handling is $5.00. Send a check or money order for $5.00 to
Work Brochure
International Student Center
University of La Verne
1950 Third Stree
La Verne, CA 91750
Checks should be made out to: University of La Verne
Questions about this document can be e-mailed directly to Philip
Hofer at hoferp@ULV.EDU
**Printed by permission of SCIC
Office
of Career Services
351 Carrie Chapman Catt Hall
Phone: (515) 294-4841
lascs@iastate.edu |
