An investigation by the Department of Labor found that Peri Software had withheld over $1.4 million in back wages that are owned to its’ employees. The investigation also found that Peri Software paid lower than average wages to its H1B consultants. This is a direct violation of H1B laws. The law states that H1B workers must be paid the same wage rates that are paid to U.S. workers for the same work performed in the same geographical location. DOL also uncovered that Peri Software forced its’ employees to sign employment contracts and then sued the employees when the contracts were broken.

Also read: Email From an Indian IT Consulting Firm

Department of Labor has fined Peri Software a $439,000 fine for its’ violations. The company may also be barred from participating in the H1B program for two years.

In 2009, United State Citizenship and Immigration Services (USCIS) had arrested 11 H1B consultants and taken legal action against another New Jersey software company for H1B violations.

According to the memo, H1B applications will need to be accompanied by the following documents, where applicable:

• a complete itinerary of engagement specifying dates of each service, names and addresses of establishment where service will be performed
• a copy of the signed employment agreement between the employee and employer
• a signed copy of the job offer letter that clearly describes the type of employer-employee relationship
• if the H1B employee is to perform work for third party clients, then signed contracts between the petitioner and the third party client needs to be provided, specifying clearly that the petitioner will have control over the employee
• if the H1B worker is to work at third party client sites, then work orders, statement of work, project duration, etc needs to be provided that clearly specifies the job duties, qualifications required for the job, salary paid, benefits and description of who will supervise the employee
• a copy of the job description
• a description of how the employee’s performance will be reviewed
• a copy of the organizational chart

These are not new rules, but a reinstatement of existing guidelines. This will make it harder for Indian IT professional to get H!B visas in 2011.

Also read: 30 Companies that Hire International Students

For those that don’t want to read through the legal mumbo jumbo, the gist of the memo is that an employer-employee relationship must exist between the H1B petitioner (employer) and the H1B beneficiary (employee). So what is an employer-employee relationship? This is a scenario when the employer has the ability to control the employee, i.e. the employer has the right to fire the employee. For those of you wondering, an employer-employee situation probably does not exist in the case when an IT consulting firm places you at a client site and has no knowledge or control over the tasks that you will be performing at the client site. The purpose of the Neufeld Memo is to shut down job-shops that have no control over their employees. Clearly, the following situations will be denied H1B visas in 2011:

• if you apply for your own H1B visa
• if you are an independent contractor
• you are at a third party client site where your H1B petitioner has no control over you

The Neufeld memo lays down additional document requirements for H1B applications. In the H1B application, the petitioner must prove the following:

• an employer-employee relationship exists
• the H1B petitioner (employer) can and will supervise the work of the employee and has the right to hire and fire the employee
• the petitioner is responsible for the direction of the employee’s work
• and the conditions will be maintained throughout the period of the H1B visa

I think the Neufeld Memo clearly proves beyond doubt the intentions of USCIS, that they are now serious about enforcing H1B rules. These guidelines will possibly bring to an end the practice of consulting companies sponsoring H1B visas to place contractors at client sites. If you think the Neufeld memo will affect you in some way, feel free to share your thoughts in the comments below.

Further reading: The Truth About Indian IT Consulting Firms Revealed

Also read: Credit Cards for International Students – 5 tips to keep you from drowning in debt

Should international students file taxes?
If you were an international student in the United States in 2009, and you are a non resident alien, then you must file taxes.

Which tax form should international students use?
If you were an international student in the United States in 2009, and you are a non resident alien, then you must use form 1040NR.

Should H1B visa workers file taxes?
If you were a H1B visa worker in the United States in 2009, and you are a non resident alien, then you must file taxes.

Which tax form should H1B visa workers use?
If you were a H1B visa worker in the United States in 2009, and you are a non resident alien, then you must use form 1040NR.

Can international students or H1B workers be considered resident aliens?
Yes, international students or H1B workers can be considered resident aliens under one of two conditions. According to the IRS, a person is considered a resident alien if they have a green card or they pass the substantial presence test. Everyone knows what a green card is but what is the substantial presence test? It basically means that you have been in the United States for over 31 days during 2009 and over 183 days during 2009, 2008 and 2007. The 183 number must be calculated using a special formula. To see if you pass the substantial presence test, see page 3 of this IRS publication. Almost all international students who have been in the United States since 2008 will likely pass the substantial presence test and be considered resident aliens for tax purposes.

OK. I am considered a resident alien. What tax form should I use?
If you have a green card, or pass the substantial presence, then you should use IRS tax form 1040.

Its important that you file your taxes on time as there are penalties for filing late. The quickest way to file is online. There are many websites that’ll file your federal return for free. To see a list of websites that eFile, go here.

I hope this will clear up some confusion regarding international student tax file issues and H1B tax issues. As always, post your comments or questions below.

Further reading: The Truth About Indian IT Consulting Firms Revealed

There were not a lot of companies that hired international students in 2009. Due to the global recession, companies hired few new workers and lay offs were common. Demand for fresh graduates was low. There were however, some companies that did hire international students in 2009. Indiana University Bloomington compiled a list of 55 companies where international students were successful in findings jobs in the last year. This is by no means a comprehensive list. There are many small companies that hire international students that do not show up in any lists or surveys. Also, companies tend to change their hiring policies often, largely due to changes in supply and demand in the market. Therefore, keep in mind that a company that hired international students last year may not do so this year.

Also read: Give Yourself 5 Months to Find a Job Before Your OPT Starts

If you know of companies that hire international students and are not on this list, feel free to add them to the comments below. If you are job hunting, it may be a good idea to bookmark this page for later reference.

• Bank of America
• Barclays Capital
• BMGI
• CashNetUSA
• CB Richard Ellis, Inc.
• Citadel Investment Group
• Citibank, N.A.
• Cook Incorporated
• Deloitte
• EASi Accounting Company
• Electronic Arts
• Ernst & Young US LLP
• ExactTarget
• Forensic Economics
• GlaxoSmithKline Pharmaceuticals
• GMAC
• Houlihan Smith
• HSBC
• Kohl’s Department Stores
• KPMG LLP
• Lin & Lincoln CPA’s, LLC
• Monsanto Company
• Polycom
• Radisson Hotel
• Seed Strategy
• Snap-on Tools Corp.
• Stryker
• Think Equity Partners
• Valuecap
• Walt Disney

Further reading: The Secret to How International Students Can Work Legally in the United States

The top eleven countries to send the most students to the US were:

• India
• China
• South Korea
• Canada
• Japan
• Taiwan
• Mexico
• Turkey
• Vietnam
• Saudi Arabia
• Nepal

Last year USCIS had conducted 5,191 inspections of companies hiring H-1B workers. The number this year has increased almost 5 times becasue of greater resistance by opponents of the H1B program who are lobbying the government for greater enforcement. In a letter to Senator Grassley, Director of USCIS Alejandro Mayorkas has stated that the inspections will be carried out to validate the H1B petitions. During these onsite visits, USCIS will be checking for the following things:

• if the location of the employment exists
• if the H1B visa holder is actually employed at the location
• if the H1B visa holder is performing the jobs described in the H1B application
• and if the H1B visa holder is being paid the salary stated in the application.

USCIS is aware of H1B visa applicants that are on bench and only start working when they are able to find a project/contract. This is against the H1B visa rules and the government is taking a tough stance against this practice. Earlier this year 11 H1B visa holder that had applied with fraudulent documents were arrested by the goverenment. Legal action was also taken against the company that had sponsored these H1B workers. This latest move by the government is a continuation of its’ effort to curb the abuse of the H1B visa program.

Further reading: The Truth About Indian IT Consulting Firms Revealed

Owning a car got me into trouble about seven months after I had graduated from college. I was on my OPT at the time. I was driving to my friend’s place with a couple other buddies when I got pulled over by a cop for doing 40 mph on a 30 mph. The policeman took my drivers license, insurance, went back to his car and did the usual routine check. When he came back, he asked me to step out of the car and move to the sidewalk. I was surprised by this, but complied. He told me that my drivers license was expired and I wasn’t supposed to be driving. This was news to me since my drivers license said my license was valid until 2011. The policeman disagreed with this and said he ran my license against the Department of Motor Vehicles database and it came back as expired. Anyways, long story short, he let me go with a $142 speeding ticket and a $170 ticket for driving with an expired license.

After speaking with friends and school officials, I later found out what had really happened. Apparently when the DMV gives you your driving license, they print something on it called “Status Check” which has a date next to it that corresponds to the expiry date of your visa. They also print an expiry date on the license. The ACTUAL expiry date of the drivers license is the status check date and not the expiry date that is printed on the license. So although the expiry date on my license was 2011, my license has actually expired on the day my visa had expired. Not knowing this, I had continued to drive without getting my license renewed.

The DMV told me that they usually send a letter reminding international students with status check licenses to renew their licenses when the status check date is near. But I had changed my address at least three times since the time I had gotten my license and never bothered to notify the DMV. So I never got the letter. I also learnt that not all states implement this system of status check, so all international students will not be affected by this. On a side note, although my visa was expired, my stay in the US was still legal because I was on my OPT.

I’ve scheduled a meeting with a hearing officer at the local court to contest this ticket. I’ll keep you guys posted on the outcome.

A word of advice to all international students. Check your drivers license to see when your status check date is, and renew your license before that date is past. Don’t get pulled over driving with an expired license and end up getting a big ticket like I did.

Happy driving!

The Optional Practical Training (OPT) allows international students to work in the US for twelve months. If you are on a STEM major, then you are eligible to get a 17 month extension. However, there is a catch. If you are unemployed for more than 3 months combined during your OPT, then your OPT automatically gets cancelled and you will have to leave the US. Therefore, it is very important that you give yourself ample time to find a job before your OPT even starts. There is a way in which you can give yourself 5 months time to look for a job after you graduate and before you start your OPT. All this requires is a little planning in advance and some time management skills.

Before I explain any further, let me tell you some laws regarding international students that many of you probably already know. You have a sixty day grace period to leave the US after you graduate. If you choose to stay longer, you will need to get a new I-20 or apply for OPT before the sixty days are up. When you apply for OPT, you can set your OPT start date to be 3 months from the day you apply. Once you apply for OPT, you will be in status even if your sixty days are up.

I am sure most of you have caught on by now. The trick is to apply for OPT almost two months after you have graduated. In the application form, set you OPT start date to be three months from the application date. So the two months grace period plus the three months OPT processing time will give you five months. You can utilize these five months to look for a job which is much better than having your OPT in hand but no job offers.

I think a few words of caution are in order here. Don’t wait until the 60th day of your grace period to apply for the OPT. You may not have all your paperwork in order or the day might fall on a weekend. Its too risky. Give yourself at least a week of slack time to apply for the OPT. Also, immigration laws change all the time. Make sure you speak to your Designated School Official (DSO) about your plans way in advance so you don’t get any nasty surprises later on when its time for you to file your application.

Do you know of any other ways that international students can utilize their OPT work permit effectively? Share your thoughts in the comments below.

Further reading: Companies that Hire International Students & Sponsor H1B

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