I am currently working as a researcher in a University in the US under
an H1-B visa. I know that I am not allowed to work for any other
employer in the US.
Still, I would like to know is whether I am allowed to work (as a
consultant) for a foreign company located in my home country - Israel.
In practice, this work could either be done at my spare time in the US
or during vacations in Israel.
Tax wise - my intensions are to declare in the US the foreign income
in addition to my income from the US University.

Is such a work for a foreign employer allowed according to immigration
regulations?

Hi rk

   H1-B visa grants you the priviledge to work in the US,
it in no way limits your options working elsewhere.

Regulations explicitly allows multiple employers:

"More than one H-1B visa petition may be in effect simultaneously,
 allowing the H-1B temporary professional to work for two
 employers during the same time period"
 http://www.grameenjobs.com/h1b.html

In you case you do not need a second petition, still multiple
employers clearly are not a problem. A second petition - with change
of LCA may require a review - but again, you do need a second petition.
http://ows.doleta.gov/foreign/h-1b.asp

The only problem which can arise would be the problem with your current
employer. If University would be unhappy about your second job,
and would terminate your employement, you will loose your H1-B
status. Custom and professional ethics requires that you discuss
your consulting work with the university before you accept any such offer.

As you are aware, you will need to declare additional income on your
tax return. That is a different issue and most likely covered by treaty
avoiding double taxation.
http://www.infoprod.co.il/country/israel2e.htm

Please be aware that I am not an attorney, and that Google Answers is not
a substitute for a professional advice as stated in the disclaimer below.




hedgie

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Request for Answer Clarification by rk08540-ga on 23 Aug 2003 20:24 PDT

Hi hedgie,

Thanks for the answer.
Two clarifications:
 
1. You say "H1-B visa grants you the priviledge to work IN THE US, it
in no way limits your options working elsewhere."

The question then is whether working IN THE US for a foreign employer
is considered "working elsewhere" ?


2. Probaly a typo - when you say "you do need a second petition." You
probably mean "you do NOT need a second petition." Am I right?

thanks, rk08540

---

Clarification of Answer by hedgie-ga on 23 Aug 2003 22:26 PDT

Yes. You are right. 
"you do NOT need a second petition."  Sorry about the typo.


The complex question :

"is working IN THE US for a foreign employer
is considered "working elsewhere" ?

in our context, has simple answer:

"Foreign labor certification programs permit U.S. employers to hire
foreign workers on a temporary or permanent basis.."
http://workforcesecurity.doleta.gov/foreign/hiring.asp

  US employer (US or foreign owned) is a company 
  incorporated in US, hiring in US, and so subject to the US law.
 That employer, not you, is required to verify your right to work in
US.
 Having H1-B  is just one way to gain that right.

 A employer outside of US is not subject to US labor laws.
 
 US citizens and residents in general can work abroad or for
 foreign cmpanies.
 H1-B or any other US work permit  has no bearing on such employment.

So - the answer is: H1-B visa granted to you in connection
with a particular job does not limit your option to have a second
job, anywhere else - In US or abroad.

 In general means 'unless there is a specific law or regulation 
 prohibiting specific activity'  such as, e.g. export restrictions 
 which may apply to to data as well as physical products.
http://www.ieee.org/organizations/tab/export_compliance.html

 Best way to ensure that you comply with all such restrictions,
 imposed by US law, by you employer by eventual sponsor of the
 research, is to discuss relevant aspects of the consulting job
 with your US employer. Universities which work with data which
 are restricted in any way, do have a person who can advise you on any
 specific restriction or data transfer.

 The  question 'where the activity is done' can be more complex:
 Consider the following situation:
 I am resident of country A and do a stock transaction over the 
 Internet with on-line broker in country B let's say in the US.

 Who regulates the transaction? Rule in this case currently is 
 that 'server is located in US' and so transaction
 happens on US teritory and is subject to US SEC rules only.

 A tax situation may depend on 'where the work was done'
 and is much more complex. Your tax liability 
 will depend on 'of which country you are a 'tax resident' 
 which has to do with how many days you spend where and specifics
 of the US-il double taxation treaty.
 You will need to get a tax accountant who is familiar with
that specific treaty to resolve that issue.



 hedgie