Visas and Work Permits in the USA: A Quick Guide for Employers
If your organization is planning to hire or relocate employees to the United States, you’ll need to navigate a complex web of immigration and labor laws to ensure compliance and avoid potential penalties.
This quick guide will give you a crash course in the process for securing work permits and visas in the USA, helping you understand the basics and pointing you in the right direction. I’ll also explain the different types of US work visas available and address common questions about the application process.
Helping employees secure US work permits can be a challenging process—especially if you’re unfamiliar with the country’s legal requirements—but it doesn’t have to be. Partnering with an Employer of Record (EOR) can simplify the process, reduce risks, and ensure your company remains compliant across the board.
Let’s dive in and get you closer to hiring and onboarding your future US-based staff while staying compliant with all regulations.
Why is Compliance with US Immigration Rules Important?
Compliance with US immigration rules is essential for any company hiring or relocating non-US citizens. Failure to adhere to these laws can result in significant risks that go beyond financial penalties, affecting both your organization and the individuals involved. Non-compliance can lead to fines, legal battles, and even imprisonment in severe cases.
For employees, those without proper authorization may face deportation, disrupting your workforce and leaving critical projects in limbo.
For employers, these violations could result in restricted access to future visas, increased scrutiny during audits, or bans on hiring foreign talent altogether.
Beyond the legal and financial consequences, non-compliance can severely damage your company’s reputation. If the story of a violation makes its way into the public eye, it can erode trust with stakeholders, customers, and prospective employees. In a competitive market, maintaining a strong reputation as a responsible employer is key to attracting top talent and staying ahead.
Who Can Legally Work in the USA?
In the United States, eligibility to work depends on a person’s citizenship or immigration status. US citizens are automatically authorized to work, regardless of whether they reside within the country or abroad. Permanent residents, commonly referred to as Green Card holders, are also granted the legal right to work in the US without requiring additional permits or authorizations.
Anyone who is not a US citizen or permanent resident needs a valid visa and work authorization to work in the US.
These documents are specific to the individual’s situation, such as their job role, employer, or reason for entering the country.
Without proper documentation, any employment is considered illegal and can lead to penalties for both the employee and the employer.
Understanding US Work Permits and Visas for Non-Citizens
When hiring or relocating non-citizens to the United States, it’s crucial to understand the distinction between work permits and visas, as they serve different purposes in the immigration process.
What’s the difference between a work permit and a visa in the US? In short, visas allow entry, while work permits allow employment. Understanding the difference — and the need for both — is essential when hiring or relocating workers.
A visa is a travel document that allows a person to enter the United States. There are many types of visas, but not all permit work. For example, a tourist visa allows visits but prohibits employment. Work-related visas, like the H-1B or L-1, allow entry for specific jobs or employers.
In contrast, a work permit, known in the US as an Employment Authorization Document (EAD), allows someone to work legally in the US. It is not a travel document. Unlike visas, a work permit lets the holder work for any employer. EADs are often issued to people already in the US under specific visas or legal statuses, like asylum seekers and spouses or family members of visa holders.
Types of Work Permits and Worker Classifications in the USA
The US offers various work permits and employee classifications, each designed for specific scenarios. Understanding these options is key to navigating the hiring process for non-citizens.
Employment Authorization Document (EAD)
The Employment Authorization Document (EAD) is a work permit that allows individuals in the US to work for any employer.
It’s typically issued to specific groups, such as asylum seekers, Deferred Action for Childhood Arrivals (DACA) recipients, or spouses of certain visa holders. The EAD provides broad work authorization but doesn’t grant the right to enter or remain in the US.
Optional Practical Training (OPT) Work Permit (F-1 Visa)
Students in the US on an F-1 visa may apply for an Optional Practical Training (OPT) work permit. This allows them to work in their field of study for up to 12 months after graduation. STEM graduates may qualify for a 24-month extension.
OPT permits are employer-independent, offering flexibility for students entering the workforce.
Green Card (Permanent Resident Card)
A Green Card grants permanent residency in the US and provides unrestricted work authorization. Green Card holders can work for any employer in any capacity.
The application process is lengthy, often requiring employer sponsorship or eligibility through family or special programs.
Temporary (Non-Immigrant) Worker Visa
Temporary worker visas are for individuals entering the US for specific jobs or industries. These visas are employer and role-specific, and the worker must leave the US once the visa expires.
Below I’ve explained the most common types:
H1-B
For professionals in specialty occupations requiring advanced skills and education. Examples include IT, engineering, and healthcare roles.
L1
For intra-company transfers, allowing employees of international companies to work in a U.S. office. The L-1A is for managers and executives, while the L-1B is for workers with specialized knowledge.
O1
For individuals with extraordinary ability in fields like science, arts, or business. Applicants must provide evidence of exceptional achievements.
TN
Available to citizens of Canada and Mexico under NAFTA/USMCA agreements. It permits work in certain professional roles, such as teaching or engineering.
H-2A & H-2B
H-2A visas are for temporary agricultural workers, while H-2B visas cover non-agricultural seasonal jobs like hospitality or landscaping.
J1
For individuals participating in exchange programs, such as internships, training, or research. J-1 visa holders may face restrictions on changing employers.
F1
For international students. In addition to OPT, F-1 students may work on-campus or under specific training programs.
E3
Exclusive to Australian citizens, the E-3 visa is similar to the H-1B but tailored to Australian professionals in specialty occupations.
How to Sponsor a Temporary Employee Work Visa in the US
Sponsoring a temporary work visa in the US involves several critical steps. Each visa classification has its own rules and documentation requirements, so it’s important to follow the process carefully to ensure compliance.
1. Identify the Correct Visa
The first step is determining the appropriate visa type based on the employee’s role, qualifications, and your organization’s needs. Each visa classification has specific eligibility requirements—for example, the H-1B visa requires a job in a specialty occupation, while the L-1 visa is for intra-company transfers.
2. Gather Documents
Prepare all required documentation for the petition. This typically includes:
- Proof of the employee’s identity, such as a passport.
- Evidence of qualifications and experience, such as diplomas or certifications.
- Any additional documentation required for the specific visa, such as an employment offer letter or proof of company operations.
3. File a Petition with USCIS
Submit a petition to US Citizenship and Immigration Services (USCIS) using Form I-129 (Petition for a Nonimmigrant Worker). Include all supporting documents and the applicable filing fee. USCIS will review the petition, and if approved, you’ll receive a Notice of Approval (Form I-797).
4. Apply for the Visa
Once the USCIS petition is approved, the employee must apply for the visa at a US embassy or consulate in their home country. This involves completing Form DS-160, attending an interview, and providing biometric data. After the visa is issued, the employee can travel to the US and begin work under the authorized conditions.
By following these steps, you can ensure a smooth process for sponsoring temporary work visas while staying compliant with US immigration laws.
Use an EOR to Avoid Immigration Compliance Stress
Navigating US immigration laws can be daunting, especially when managing work permits, visas, and compliance requirements. However, partnering with an Employer of Record (EOR) can simplify this process and help your organization avoid compliance risks.
What is an Employer of Record (EOR)?
An EOR is a third-party organization that acts as the legal employer for your international hires. While you maintain control over the employee's day-to-day responsibilities and role within your company, the EOR handles administrative and legal tasks related to employment.
Services Provided by an EOR
EORs offer a range of services designed to take the burden off your HR team, including:
- Compliance Management: The EOR will continuously monitor for adherence to US immigration and labor laws, reducing the risk of fines or legal penalties.
- Work Permit and Visa Assistance: They can guide employees and employers through the complex application process for work permits and visas, ensuring all required documents are properly submitted.
- Global Payroll Processing: EORs can handle multi-currency payroll, including withholding and remittance of applicable taxes, in compliance with US tax and employment regulations (or similar requirements in other countries as needed).
- Benefits Administration: EOR service providers can help you offer competitive benefits packages that align with US labor laws and industry standards, helping you stand out to new talent.
Benefits of Using an EOR
There are numerous benefits of using an EOR service, including:
- Compliance Monitoring: Continuous oversight of immigration and labor law compliance reduces the risk of errors or penalties.
- Misclassification Insurance: Protects against potential issues related to worker misclassification errors, a common challenge in global hiring.
- Global Hiring Expertise: Access to a team of professionals with deep knowledge of international employment laws and processes, giving you peace of mind as you expand your workforce.
By working with an EOR, your company can focus on its core operations while confidently hiring and managing talent in the US without worrying about legal and administrative complexities. This streamlined approach makes global hiring easier and more efficient for HR teams of all sizes.
Frequently Asked Questions
Below are answers to common FAQs about US work permits and visas.
Who is eligible for a US work permit?
Each work permit or visa classification has specific eligibility requirements. For example, an Employment Authorization Document (EAD) may require proof of temporary protected status or pending asylum, while an H-1B visa requires a specialized job offer and relevant qualifications.
Eligibility for a US work permit also depends on the individual’s immigration status. Those who may qualify include asylum seekers, DACA recipients, certain visa holders’ dependents, and others authorized to be in the US and legally eligible to work.
Understanding these unique requirements is essential to determine the best option for each candidate.
Does the US offer a digital nomad visa?
No. As of November 2024, the United States does not offer a specific digital nomad visa.
It’s important to note that using a tourist (B-2) or business (B-1) visa for remote work is considered non-compliant with US immigration laws in the eyes of the US government.
Individuals should consult with immigration experts to ensure compliance and explore the most appropriate visa options for their circumstances.
Are all companies eligible to hire in the US?
No, not all companies are automatically eligible to hire in the US. To employ workers, a company must be:
- legally registered in the US,
- compliant with federal and state labor laws, and
- meet requirements for tax withholding and reporting.
Employers hiring non-US citizens must also obtain proper certifications, such as filing Labor Condition Applications (LCAs) for certain visas like the H-1B.
In addition, compliance with employment eligibility verification (via Form I-9) is mandatory to avoid penalties.
How can my company sponsor someone for a US work visa?
To sponsor someone for a US work visa, your company must follow these steps:
- Determine the appropriate visa type based on the role and the candidate’s qualifications (e.g., H-1B, L-1, or O-1).
- File a Labor Condition Application (LCA) with the Department of Labor, if required for the visa type, to confirm compliance with wage and workplace conditions.
- Submit Form I-129 (Petition for a Nonimmigrant Worker) to US Citizenship and Immigration Services (USCIS), along with supporting documents.
- Once the petition is approved, the candidate must apply for the visa at a US embassy or consulate in their home country and complete an interview.
This process ensures that your sponsorship complies with US immigration and labor laws.
How can my company sponsor a permanent residence application in the US?
To sponsor a permanent residence (Green Card) application, your company must follow these steps:
- Determine Eligibility and Green Card Category: Identify the appropriate employment-based Green Card category, such as EB-1 (priority workers), EB-2 (advanced degree professionals), or EB-3 (skilled workers).
- File a PERM Labor Certification: For most employment-based Green Cards, your company must file a Program Electronic Review Management (PERM) application with the Department of Labor (DOL). This process involves demonstrating that there are no qualified US workers available for the position and that the wages meet prevailing wage standards.
- Submit Form I-140 (Immigrant Petition for Alien Worker): Once the PERM certification is approved, your company submits Form I-140 to US Citizenship and Immigration Services (USCIS) to petition for the employee’s Green Card.
- Employee Applies for Adjustment of Status or Consular Processing: After USCIS approves the I-140 petition, the employee either files Form I-485 to adjust status if already in the US, or processes their application through a US consulate in their home country.
Sponsoring permanent residence is a lengthy process, but it provides employees with long-term stability and the ability to work for any US employer once the Green Card is issued.
How much does a US work visa cost?
The cost of obtaining a US work visa varies based on the visa type and associated fees. Here’s a breakdown of common expenses:
- Form I-129 (Petition for a Nonimmigrant Worker): $460
- Nonimmigrant Visa Application (Form DS-160): $190 for most work-related visas
- American Competitiveness and Workforce Improvement Act (ACWIA) Fee: $750 for employers with 25 or fewer full-time employees; $1,500 for those with more than 25 employees
- Fraud Prevention and Detection Fee: $500, applicable to certain visa categories like H-1B and L-1
- Premium Processing Fee: $2,500 for expedited processing, optional for certain petitions
It’s important to note that these fees are subject to change, and additional costs may apply depending on specific circumstances.
Employers should consult the latest fee information from the USCIS website or the US Department of State to ensure accurate budgeting.
Who is responsible for paying work visa-related fees?
The responsibility for paying work visa-related fees depends on the visa type and the specific fee. Here are some general guidelines:
Employer’s Responsibility: Employers typically cover fees directly related to sponsoring the visa, such as:
- Filing Form I-129 (Petition for a Nonimmigrant Worker)
- Labor Condition Application (LCA) costs
- Fraud Prevention and Detection fees
- ACWIA fees for H-1B visas
Employee’s Responsibility: Employees often pay for personal application fees, such as:
- Visa application fees (Form DS-160) at the U.S. embassy or consulate
- Biometric services fees
- Travel expenses related to attending visa interviews
However, many progressive employers do offer to reimburse employees for any fees incurred throughout the process, to help ease the application process. Either way, it’s crucial to clarify these costs upfront to ensure compliance and avoid misunderstandings.
Is there a limit on the number of times you can apply for a US work visa?
There is no strict limit on the number of times you can apply for a US work visa. However, approval depends on meeting eligibility requirements for each application.
Some visas, like the H-1B, have annual caps on the number of visas issued, meaning applications may not be approved if the cap is reached. In addition, the duration and renewability of specific visas may impose practical limits on reapplying.
Each application is evaluated independently based on current eligibility and compliance with US immigration laws.
How much does an Employer of Record charge in the US?
The cost of an EOR service in the United States varies based on several factors, including the provider, services offered, and the number of employees managed. Generally, EOR services in the US range from $199 to over $2,000 USD per employee per month.
It’s important to note that these figures are general estimates, and actual costs can vary. Some providers, like Deel and Oyster HR offer EOR services starting at $599 USD per employee per month, whereas other EOR providers, like Velocity Global, don’t actually disclose their pricing publicly.
When selecting an EOR, consider the specific services included, such as payroll processing, benefits administration, compliance management, and HR support, to ensure they align with your company’s needs.
What are the risks of using an Employer of Record service?
Using an EOR service offers many benefits, but it also comes with some potential risks to consider, including:
- Loss of Control: With the EOR being the legal employer, your company may have limited influence over administrative processes, such as benefits administration or employee contracts.
- Data Security Risks: Sharing sensitive employee and company information with an EOR involves privacy risks. Therefore it’s important to ensure the EOR has robust data security measures in place.
- Cultural Disconnect: Employees may feel a disconnect between your company and the EOR as the legal employer, potentially affecting employee engagement and satisfaction.
Choosing a reliable partner with strong compliance and communication practices can help mitigate these potential EOR risks.
The Bottom Line
Navigating the complexities of US work permits and visas is challenging but manageable with the right knowledge and support. Partnering with an Employer of Record can streamline the process, providing expert guidance on work permits, visas, and compliance, while giving you peace of mind.
Ensuring compliance with immigration laws is critical to protecting your business from legal risks and maintaining a positive reputation. If your company is considering hiring or relocating talent to the US, start by identifying the right visa type for your employee’s needs and planning the sponsorship process carefully.
For those seeking a simpler solution, working with an EOR ensures legal and administrative tasks are handled by experts, so you can focus on building a thriving team.
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This content is for informational purposes only, and should not be relied upon as legal advice. We recommend always following the advice of an employment lawyer or EOR partner before making any decisions to hire employees in the USA.