H-1B Consultancy and Third-Party Vendors
Understand how H-1B consultancy and third-party arrangements work, what employers must document, and how workers can protect their pay and status.
H-1B consultancy and third-party work can be legitimate, but the arrangement can be difficult to understand. The company that sponsors your H-1B may not be the company that directs your daily work, and a vendor may sit between your employer and the end client.
Before accepting an assignment, identify who employs you, who pays you, where you will work, and which company controls the immigration filing. Clear answers reduce the risk of unpaid time, missing records, and last-minute status problems.
TL;DR
- Your H-1B sponsor remains responsible for the petition, required wage, employment conditions, and required records even when an end client directs your daily work
- Employer-caused nonproductive time generally cannot be used to avoid paying the required H-1B wage
- Ask for the petition, approval notice, Labor Condition Application, worksite details, assignment information, and pay terms before a problem occurs
- A client assignment ending does not automatically permit unpaid leave or a silent gap in employment
- H-1B portability may allow an eligible worker to start with a new employer after a properly filed petition, but the rules and timing are case-specific
How the Three-Party Arrangement Works
Most consultancy arrangements involve a petitioner and employer, a vendor or intermediary, and an end client. The contracts can differ, but they should support a specific, credible H-1B role.
| Participant | Typical role | Question to ask |
|---|---|---|
| H-1B petitioner and employer | Files the petition, employs and pays the worker, and maintains required records | Who is listed as the petitioner, and who is responsible for payroll and immigration matters? |
| Vendor or intermediary | May source the assignment or coordinate the placement | What services does the vendor provide, and what agreement connects it to the petitioner or client? |
| End client | May direct project work at a particular worksite | Where will the work occur, who supervises it, and how long is the assignment expected to last? |
The contract chain does not remove the sponsoring employer's H-1B responsibilities.
What the H-1B Employer Must Still Do
The sponsoring employer does not hand off its immigration duties to a client or vendor. Depending on the facts, it must maintain the employer-employee relationship, pay the required wage, comply with the certified Labor Condition Application, and keep required records.
The required wage is generally the higher of the actual wage paid to similarly qualified workers and the prevailing wage for the occupation and area of employment. See the Department of Labor’s H-1B worker guidance for wage, benefits, fee, and retaliation protections.
Benching and Required Pay
An assignment may end before the employment relationship does. The Department of Labor explains that an H-1B employer generally must pay the required wage for nonproductive time caused by the employer, such as a lack of assigned work. This rule does not generally apply when the worker chooses not to work or cannot work for a reason unrelated to the employer.
Do not assume that a training label, unpaid leave request, or private agreement eliminates a wage obligation. If pay stops, ask for the reason in writing and keep the assignment notice, pay records, time records, messages, and leave request.
Documents to Request and Keep
- Form I-797 approval notice and the petition details identifying the role and employment period
- Certified Labor Condition Application and listed worksite or worksites
- Written offer, employment agreement, pay rate, benefits, and reimbursement terms
- End-client name, assignment description, expected duration, worksite, and reporting structure
- Pay stubs, time records, assignment changes, and correspondence about benching or leave
- Written instructions about who handles payroll, immigration, project assignment, and compliance questions
Missing or inconsistent evidence may lead USCIS to request more information during petition adjudication. An RFE is a request for evidence, not an automatic denial of the H-1B petition.
Worksite or Project Changes
Moving to a new worksite, changing job duties, or moving from one client assignment to another may affect the Labor Condition Application and petition. Ask the employer to review the change before you start. The Department of Labor LCA program provides the official labor-condition framework, but it does not replace case-specific immigration advice.
When a Client Assignment Ends
Ask the petitioner what happens next when a client ends an assignment. Another assignment, a lawful paid period while work is arranged, and termination are not interchangeable. Do not assume that unpaid bench time is allowed, and do not resign before reviewing the effect on pay, immigration status, the 60-day grace period, and transfer options.
H-1B portability may allow certain workers to begin with a new employer after that employer files a qualifying Form I-129 petition. Eligibility and timing conditions apply, so review the filing and your current status before relying on portability.
Protect Yourself
Keep a timeline of offers, filings, assignments, worksites, pay, and communications. If a dispute develops, a complete timeline is more useful than isolated messages. You may contact the Department of Labor’s Wage and Hour Division about wage or retaliation concerns. The agency explains basic protections and ways to seek help.
Warning Signs That Deserve Questions
- The employer will not identify the petitioner, worksite, pay rate, or client assignment
- You are asked to sign blank forms, pay an unlawful fee, or accept a penalty for leaving
- Payroll is delayed, reduced, or replaced with an unexplained training period
- The employer asks you to work at a different location without reviewing the change
- No one can explain who controls your employment and immigration filing
FAQ
These frequently asked questions cover pay, records, client assignments, and status issues in H-1B consultancy arrangements.
Is H-1B consultancy work legal?
Can my employer stop paying me when a client assignment ends?
Can an employer charge me a fee or penalty for leaving?
Can I change to a new H-1B employer?
What to Remember
An H-1B consultancy arrangement can work when the petitioner, vendor, and end client understand their roles and maintain consistent records. Identify the responsible employer, confirm the job and worksite, understand the wage terms, keep your documents, and respond quickly when an assignment or payment changes.
If the arrangement becomes unclear, ask for written answers before signing or resigning. Early review gives you more options than waiting until pay stops or an immigration deadline is close.
Disclaimer: This article provides general information and is not legal advice. H-1B wage, worksite, Labor Condition Application, petition, fee, portability, and compliance requirements depend on the facts and current agency rules. Consult a qualified immigration attorney and verify current Department of Labor and USCIS guidance before taking action.