H-1B C2C and Contract Jobs: How They Work

Updated 2026-10-213 min readNot legal advice in W X

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On H-1B, you can work on C2C or contract projects only as an employee of an H-1B petitioner. The contract is between companies, not between you and the client. In a typical setup, a staffing or consulting firm sponsors you.

Find C2C and contract jobs from H-1B sponsors

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Who your employer is

The company that files your H-1B petition is your employer. It must pay you the required wage, on payroll, with taxes withheld.

Under 8 CFR 214.2, if you will work for more than one employer, each employer must file a separate petition.

Murthy Law Firm sums it up in an FAQ. You can generally work only as a W-2 employee, and only for your H-1B petitioning employer.

What C2C means in practice

C2C describes how the companies bill each other. Your sponsor bills the vendor or client, and you are paid by your sponsor.

Your sponsor must meet every LCA promise. That includes paying the higher of the actual and prevailing wage for the worksite.

If you are placed at a client in a new area, your sponsor generally needs an LCA for that place of employment. A short-term placement option covers brief assignments.

Top H-1B sponsors, 2025US Department of Labor data

Employer	H-1B filings	Transfers	Median pay
Amazon.Com Services LLC	14,047	2,382	$155k
Cognizant Technology Solutions US CorpGC frozen	10,209	872	$110k
Ernst & Young U.S. LLP	9,808	269	$143k
Google LLC	7,899	844	$186k
Microsoft CorporationGC frozen	7,840	879	$173k
Tata Consultancy Services LimitedGC frozen	7,287	353	$86k

Every sponsor, with their open jobsSee the list ›

Pay between projects

Contract work often has gaps. The rules on idle time still apply.

Under 20 CFR 655.731, an employer that keeps you idle for its own reasons must still pay the required wage. Lack of work is one example.

Pay is not owed if the gap is your voluntary request or if you are unable to work. It also stops after a bona fide termination of employment.

When pay must start

Staffing firms sometimes wait for a project before paying. The rules set an outside date.

Pay must start when you enter into employment. In any case, it starts 30 days after admission on the petition.

If you are already in the US, it starts 60 days after you become eligible to work for that employer.

When the client or location changes

A move to a worksite outside the area on your LCA is a material change. Your employer must file an amended or new petition before you start there.

Moving within the same area of intended employment does not need an amended petition, if nothing else materially changes.

Costs your employer cannot shift to you

DOL says you can never be charged a penalty for leaving early, as defined by state law. You also cannot pay the ACWIA training fee or the $500 fraud fee.

LCA and petition costs, including attorney fees and premium processing, cannot be deducted if they push your pay below the required wage.

Extra rules for H-1B dependent firms

Some staffing firms are H-1B dependent. Before placing you with another employer, a dependent firm must ask whether that employer has displaced or will displace US workers.

That protection covers 90 days before and after placement. LCA data shows whether a firm marked itself H-1B dependent.

C2C and contract work on OPT and STEM OPT

Post-completion OPT allows more kinds of work than H-1B. University guidance based on SEVP rules allows 1099 work for hire and work through an agency, if it relates to your degree and averages at least 20 hours a week.

Keep records of each contract, including dates and the company's name and address. Report each employer to your DSO.

STEM OPT is stricter. The employer must use E-Verify, sign a Form I-983 training plan and have a bona fide employer-employee relationship with you. USCIS says staffing and consulting firms qualify only if they provide the training themselves, not a client.

So most C2C setups do not fit STEM OPT. USCIS says arrangements such as sole proprietorships may not qualify. Check employers on STEM OPT employers and E-Verify.

How to evaluate a C2C offer

Staffing firms that sponsor appear in public filing data. You can compare them on /h1b-sponsors and see contract roles at /h1b-jobs.

A past H-1B filing doesn't guarantee an employer will sponsor a given role. Confirm sponsorship for the specific project.

Confirm which company files your petition and runs your payroll.
Ask where you will work and whether an LCA covers that location.
Ask how you will be paid between projects.
Look up the firm's past filings and wages in DOL and USCIS data.
Get the role, pay and worksite in writing.

This article is general information, not legal advice. Confirm your situation with an immigration attorney.

Questions

Can I work on a 1099 basis on H-1B?

Generally no. H-1B work must be as an employee of a petitioning employer. Each employer you work for needs its own petition.

Who pays me on a C2C H-1B project?

Your H-1B sponsor pays you on payroll. The client or vendor pays your sponsor under their contract.

Do I get paid if my project ends?

If your employer keeps you idle for its own reasons, it generally must pay the required wage until a bona fide termination.

Can my employer charge me for the H-1B filing?

Not if it pushes pay below the required wage. Some fees, like the $500 fraud fee, can never be charged to you.

Can I work C2C or 1099 jobs on OPT?

On post-completion OPT, 1099 work for hire and agency work are generally allowed if related to your degree and averaging at least 20 hours a week. On STEM OPT, you need an E-Verify employer with a real employer-employee relationship, so C2C generally does not fit.

Do consulting or staffing companies sponsor green cards?

Some do. They use the same PERM labor certification as any employer, so ask whether the firm has filed PERM for your role before you join.

How do I find an H-1B employer for a C2C project?

Look for staffing or consulting firms with past H-1B filings and LCA wages for your role. Get in writing that the firm will file or transfer your petition and cover the client worksite with an LCA.