Texas-based MAGA linked journalist Sara Gonzales recently posted a video in which she confronts an Indian H-1B visa holder, alleging he is illegally running a side business. “I confronted an H-1B tech worker illegally running a food truck business,” Gonzales wrote while sharing the clip, which has since gone viral across social media platforms.

The video shows her approaching Naveen Tummala at the Golconda Xpress Indian Food Truck and questioning his role in the business. Gonzales claims that while his H-1B visa is sponsored by Flexera Global Inc., he is also operating the food truck, something she is not allowed under visa rules. Tummala, however, denies the allegation. He maintains that the food truck belongs to his wife and that he does not work there, even if he is occasionally present.

“I am off my duty. I cannot help my wife, or what? Do you think I am getting paid for it? I know my rules. I know my rights,” he says in the video. Later, Gonzales questions why his wife is not present at the truck, he responds, “Do you think the business owners are always at the businesses they own?”

The confrontation ends with Gonzales saying she would report him to authorities. Can H-1B visa holders legally have a side hustle in the United States?

H-1B visa holders and side hustle

H-1B visa allows foreign professionals to work in specialised roles, but only for the employer that sponsors them. Anything beyond that enters a legal grey area. Kevin J. Andrews, Principal Immigration Attorney who has been practicing U.S. immigration and nationality law for over a decade explains this principle to financialexpress.com over an email.

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“The core principle for H-1B holders is straightforward: money can work for money, but the worker cannot.” That means, earning through investments or passive means is generally allowed. But the moment a person actively contributes time, effort, or skills, it can be treated as unauthorised employment.

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Andrews stresses that US immigration authorities focus on the nature of the activity itself, not just whether money is exchanged. “USCIS considers any activity associated with productive work to be unauthorized employment, even if the H-1B holder is not being paid for it.” This means that even unpaid involvement can raise compliance issues if it contributes to a business or generates value.

Why even unpaid help can be a problem?

One of the biggest misconceptions around H-1B rules is that unpaid help is harmless. In reality, that is not always the case. Andrews draws a clear line between genuine volunteering and work that would typically be compensated.

“Traditional volunteering at a soup kitchen is fine. Volunteering to build a company’s software application is almost certainly a violation, because the activity itself constitutes work regardless of whether compensation is involved.” This distinction becomes important in everyday scenarios, especially when it comes to helping family members or being informally involved in a business.

He adds, “If the H-1B holder is personally performing the labor that generates the income, that is work.” So whether it is managing operations, handling customers, or contributing technical skills, such involvement can be seen as unauthorised employment, even if no salary is paid.

Passive income is allowed but only if it stays passive

There is, however, some flexibility under H-1B rules when it comes to passive income. Andrews explains that H-1B holders can invest in businesses, own rental properties, or earn through platforms like Airbnb—but only if they remain hands-off. “Passive investment is generally permissible… but the money needs to do the work.” He elaborates that this means delegating all operational responsibilities, “That means hiring property managers, cleaners, and maintenance staff rather than personally performing those tasks.”

Spouse-run businesses and the grey zone

In the viral case, Tummala says the food truck belongs to his wife. Legally, that distinction matters, but it does not automatically make the situation compliant. Andrews notes that though an H-1B holder can invest in a spouse’s business, they must avoid performing any actual work for it. Providing casual advice may be acceptable, but “building the website, managing operations, or performing services for the business crosses into unauthorised employment.”

Immigration attorneys Gnanamookan Senthurjothi and Veena Vijay Ananth, founders of The Visa Code, also have similar concerns and emphasized the rules to financialexpress.com. “H-1B regulations are stricter than many assume. The key test is not whether someone is being paid, but whether they are performing services.” This means that even informal or occasional involvement can raise red flags if it looks like the person is contributing to the business.

Indirect benefits can also count as work

Another layer of complexity comes from how compensation is defined. Senthurjothi and Veena point out that it is not just about receiving a salary. “Even without a salary, receiving benefits such as equity, deferred compensation, or barter arrangements can still count as unauthorized work.” This makes compliance even more challenging, especially in entrepreneurial or family-run setups where roles are not always clearly defined.

They further explain that while offering general support within a family is natural, it can still become legally complicated, “While offering general spousal advice or moral support has never been illegal, it can be difficult in practice to clearly document where that boundary ends if questioned.” In other words, what feels like normal day-to-day help may not appear the same when examined by immigration authorities.

H-4 visa rules add another layer

The legality of a spouse running a business also depends on their own visa status. The attorneys clarify, “For H-4 dependents, an H-4 spouse without an Employment Authorisation Document cannot work at all, whether as an employee, freelancer, or business operator.”

However, if the spouse has an H-4 EAD, the situation changes significantly. “An H-4 spouse with an approved H-4 EAD has very flexible work authorisation… they can take a traditional job, freelance… start and operate their own business, pursue side hustles, or do any combination of these.” That said, even in such cases, the H-1B holder must remain within their limits and avoid active participation in the business.

The attorneys also note an important condition, “H-4 work authorization… is only available once the H-1B holder has an approved I-140 immigrant petition.”

A grey area with serious consequences

Andrews acknowledges that “The grey areas are real, and the consequences of getting it wrong are severe.” A violation can lead to loss of visa status, denial of future petitions, and even restrictions on re-entering the United States.

The confrontation between Gonzales and Tummala may remain a case of one person’s claim against another’s defence. But its impact goes beyond the individuals involved. It shows how strict US immigration rules can be when it comes to work authorisation. For many H-1B visa holders, the idea of a side hustle is tied to financial security, family support, or long-term plans. But the law draws a hard line between passive ownership and active involvement.

Disclaimer: This article is for general informational purposes only and does not constitute legal, immigration, or tax advice. Immigration laws and government policies are subject to frequent change without notice. While we strive to provide accurate updates, readers are strongly advised to verify the latest requirements with the official embassy, consulate, or government portal of the respective country. Financial Express is not responsible for any decisions made based on this information. For personalized guidance, please consult a qualified immigration attorney or a certified professional advisor.