With the rise of remote work, creator platforms, and global clients, many H-1B visa holders wonder whether freelancing or running a side business is legally permissible while employed in the United States.
According to immigration attorney Julia Sverdloff, founder and shareholder, Sverdloff Law Group, P.C, the answer in most cases is a clear no, and misunderstanding the rules can carry serious consequences.
‘H-1B status is employer-specific and position-specific’
Attorney Sverdloff shed light on the limitations H-1B workers may face in terms of employment. “An H-1B worker may only perform services for the petitioning employer, in the role and under the terms described in the approved petition. Freelancing, self-employment, or operating a side business that involves active work is not permitted unless the individual has separate work authorisation covering that activity, such as an approved concurrent H-1B with another employer,” she said.
USCIS policy makes it clear that any work performed without proper authorisation, whether paid or unpaid may constitute unauthorised employment, she added.
‘Location of the worker is not determinative’
Attorney Sverdloff also shared that an H-1B worker’s location is irrelevant as what matters is whether the individual is performing labour or services while physically present in the United States.
“If an H-1B holder is actively providing services, such as consulting, advising, creating content, coding, or otherwise producing work, that activity is considered employment under US immigration law, regardless of where the client is located or where the income is paid,” she said.
Certain platforms like YouTube and Substack may be a riskier option for H1-B workers as they involve ongoing content creation, consulting, coaching, advisory services, or monetisation of personal expertise, according to attorney Sverdloff.
Monetised YouTube channels, paid Substack newsletters, freelance consulting arrangements, and similar activities often cross the line from passive income into active labour, she said.
What about legal consequences?
According to attorney Sverdloff, unauthorised employment can have serious and long-lasting immigration consequences, including violation of H-1B status, denial of future H-1B extensions or transfers, denial of adjustment of status (green card).
Other consequences include increased scrutiny during consular processing or at ports of entry and complications related to unlawful presence in certain contexts.
Even short-term or “side” activities can surface later during audits, site visits, green card adjudications, or consular interviews, she said.
Can H-1B holders legally earn additional income while remaining compliant?
Options to secure legal additional income while on an H-1B visa are limited but may include passive investment income (such as dividends, interest, or capital gains). It could also include ownership of a business without performing active services for it.
What practical strategies or precautions should H-1B holders follow?
According to attorney Sverdloff, H-1B holders should assume that any active service may be scrutinised later. They should distinguish clearly between passive income and active labour. They must avoid monetised activities that rely on ongoing personal effort.
They should refrain from signing contracts or providing services without authorisation and must consult an experienced immigration counsel before engaging in side projects or online monetisation.