My husband and I are both Canadian citizens. He has an M.D. and will be entering the U.S. on an H-1B visa for a 3 year postgraduate fellowship after completion of a residency in Canada. I am currently working for the Canadian federal government in a "teleworking" capacity (i.e. I conduct my work from home). I propose to continue my employment after we move down to the U.S. I have two questions:

1. Given that I will be drawing a salary entirely from Canadian sources, will I require a work permit in the U.S. or will my H-4 status suffice? Will I be considered a Canadian "deemed resident" or a U.S. resident for income tax purposes?

2. Will my husband be required to work exclusively for the petitioner of the H-1B visa or will he be allowed to work for other employers as well (i.e. accept part-time employment during his spare time on weekends and in the evenings)? If he is allowed to "moonlight", will he have to inform the INS of his activities?

You probably already know that H-4 dependents accompanying the principal H-1 beneficiary are not permitted to work. H-4 dependents are permitted to attend school and engage in activities ordinarily permitted visitors for pleasure (B-2). As the B-2 category does not permit any kind of work activity whatsoever, it is at least possible that the INS will take a very strict interpretation of immigration laws and prohibit you from engaging in your proposed activity. However, I would not worry too much about it.

The prohibition against H-4 dependents (and other nonimmigrants without employment authorization) working in the United States is intended to protect the local labor market. Assuming that the Canadian government would not be hiring a person in a U.S. branch office to do the work that you are doing (i.e. the job duties are closely connected to operations in Canada rather than the Canadian government's operations in the United States) then I would be surprised if the INS called your activity local employment. Keep in mind that the idea of "teleworking", especially from another country, is still a relatively new concept. There are still no clear answers on how such activity will be interpreted under existing laws.

Even if the INS does take the position that you are "working", you may try entering as a visitor for business (B-1). An alien who qualifies for H-1status or is in a profession listed in Appendix 1603.D.1 of NAFTA may currently come to the United States to perform services at a professional level for which the alien will receive no salary, other than an expense allowance or other reimbursement for expenses incidental to the alien's temporary stay. The foreign employer must have an office overseas, the employee must customarily be employed by the foreign employer, the foreign employer must pay the employee's salary and the source of the employee's salary must be overseas. Keep in mind, however, that B-1 status does not recognize dual intent as is the case with the H-4.

Moonlighting is not permitted. An alien may only work for the employer who petitions him. Further, you can only hold one visa status at a time. However, you can work for two or more employers provided that you get an approved petition for each employer and the visa status is the same for both jobs (i.e. H-1B). Do not consider moonlighting unless you also have an approved petition for the other job.

I cannot answer questions relating to tax law.

I am an F-1 visa holder. If I change to H-1 visa before October, 1996 or say before the Simpson bill passed, how long will be the H-1 visa last, 3 years or 6 years ? How long is the maximum extension period, if the answer is 3 years?

It is difficult to tell exactly what the effect of the pending bills will on aliens already in the United States when the changes become effective. I suspect that even if you get your H-1B before the Simpson Bill passes, you will still be subject to the maximum 3 year stay contemplated in that bill. This is because right now H-1B's are issued initially for only 3 years. Your request for an extension of stay would have to be filed after the bill had passed and by then you would be caught under the new rules. In such a case, your extension of stay would be denied. Under the existing law, extensions are generally given for up to 2 years at a time. However, in the above scenario you would already have reached the maximum period of stay anyway.