E2 Visa Work Authorization: Rules & Benefits

By Nita Nicole Upadhye

Table of Contents

The E2 visa is a nonimmigrant visa that allows foreign nationals from treaty countries to enter the US to invest in, develop or manage a business. It also provides work authorization for the E2 investor’s spouse and certain employees who play an essential role in the business – but rules and restrictions apply.

In this guide, we explain the current work authorization rules for E2 investors, their dependents and key employees.

 

What is E2 Visa Work Authorization?

 

E2 visa work authorization refers to the legal permission granted to certain individuals under the E2 visa category to work in the United States. The E2 visa is a nonimmigrant visa available to nationals of treaty countries who invest a substantial amount of capital in a bona fide US business. This visa allows the principal investor, as well as specific employees with executive, managerial, or essential skills, to actively participate in the management and operation of the business in the US.

 

Who Qualifies for E2 Visa Work Authorization?

 

E2 visa work authorization offers a unique opportunity for treaty investors, their spouse and key employees to live and work in the US while contributing to the success of their business. However, it’s essential to understand the limitations and adhere to visa regulations to maintain lawful status.

 

Role Description
Principal Investor The individual who has made the qualifying investment and is responsible for the development and direction of the business.
Key Employees Individuals who hold executive, managerial, or essential skills positions within the E2 business.
Spouse of E2 Visa Holder The spouse of an E2 visa holder can apply for separate work authorization (Employment Authorization Document or EAD) to work in any field in the US.

 

 

E2 visa holder work authorization rules

 

The E2 visa allows foreign nationals from treaty countries to enter the United States to invest in, develop, or manage a business. However, there are specific rules and limitations governing what E2 visa holders can and cannot do in terms of work authorization.

E2 visa holders are authorized to work for the specific business in which they have made a qualifying investment. The primary investor has the legal right to direct and develop the enterprise and take an active role in managing the business. Key employees, such as those in executive, managerial, or essential skills positions, are allowed to work for the E2 business to perform duties necessary for the enterprise’s successful operation. Additionally, E2 visa holders are permitted to travel freely in and out of the United States as long as their visa remains valid.

E2 visa holders are not authorized to work for any other employer in the United States. Their work authorization is strictly tied to the E2 enterprise, meaning they cannot provide services for other companies or clients. E2 visa holders are also prohibited from earning income or receiving payment from any source unrelated to the E2 business. Engaging in unauthorized employment can result in visa revocation and other legal consequences.

The principal investor and key employees do not need an Employment Authorization Document (EAD) to work for the E2 business, as their work authorization is directly linked to their E2 visa status. However, spouses of E2 visa holders can apply for an EAD, which allows them to work for any employer in the United States, including working for the E2 business or starting their own business. Dependent children under the age of 21 are not eligible to apply for an EAD and are not permitted to work in the United States, although they are allowed to attend school.

The work authorization for E2 visa holders is valid for the duration of their visa, which is typically granted for an initial period of up to two years. E2 visa holders can apply for extensions in two-year increments as long as the business remains operational and meets the visa requirements.

 

E2 visa work authorization rules for employees

 

E2 visa employees are authorized to work exclusively for the E2 enterprise that sponsored their visa. These employees must be in executive, managerial, or essential skills roles that are crucial for the successful operation of the business. Their work duties should be directly related to the activities of the E2 business, and they are expected to contribute to the overall success and growth of the enterprise.

In addition, E2 visa employees are allowed to travel freely in and out of the United States as long as their visa remains valid. They can participate in business activities such as managing operations, overseeing key projects, or performing essential technical tasks necessary for the business’s operations.

E2 visa employees are not permitted to work for any employer other than the E2 business that sponsored their visa. They cannot provide services or perform work for any other company or client, even on a temporary or part-time basis. Additionally, E2 visa employees are prohibited from earning income from any source outside the E2 enterprise, as their work authorization is strictly tied to the sponsoring business.

Engaging in unauthorized employment or taking on duties outside the scope of the E2 business can lead to visa violations, potential revocation of their visa status, and other legal consequences.

Unlike the spouses of E2 visa holders, E2 visa employees do not require an Employment Authorization Document (EAD) to work for the E2 enterprise. Their work authorization is inherently linked to their E2 visa status, allowing them to carry out their roles and duties for the sponsoring business. However, if the E2 employee’s spouse applies for an EAD, they would have the freedom to work for any employer in the United States or start their own business.

The work authorization for E2 visa employees is valid for the duration of their E2 visa, which is typically granted for an initial period of up to two years. Extensions may be requested in two-year increments, provided that the E2 business remains operational and continues to meet the requirements for the E2 visa program. There is no limit to the number of extensions that can be granted, as long as the business remains eligible under E2 regulations.

 

Work authorization rules for E2 spouses

 

Under the derivative visa rules, E2 spouses do not have to be the same nationality as the principal E2 visa treaty investor, and they are normally granted permission to stay in the US for the same period of time as their spouse. They can also work while they’re in the US, and are subject to notably far less stringent work restrictions than the E2 principal visa holder.

Whereas the E-2 visa holder is restricted to work with the E-2 company, there are very few limitations on the type of work an E-2 spouse can undertake. The spouse can work for the E-2 business, start their own business or take up employment for another organization, although exemptions apply, including high-security government-related jobs and jobs that specifically require US Citizenship. Employment may also be full-time or part-time.

Since a change in the official US immigration guidance in 2021, spouses who are granted E2 derivative status automatically attain work authorization with their visa. This is referred to as having employment authorization ‘incident to’ their valid E2 status.

In practical terms, this means E2 spouses no longer need to apply for an employment authorization document to get a job or work in the US.

While E2 spouses are automatically authorized to work, they may need to provide evidence of this authorization to employers. Acceptable documentation includes:

 

  • A valid Form I-94 with the admission code “E2S,” indicating spousal status.
  • A valid Form I-94 without the “E2S” code, accompanied by other evidence of spousal status, such as a marriage certificate.
  • An EAD (Form I-766), if one was previously obtained.

 

Employers will use these documents to complete Form I-9, verifying employment authorization.

For E2 spouses who have previously obtained an EAD and have filed for renewal, DHS has permanently increased the automatic extension period of expiring EADs from up to 180 days to up to 540 days, provided the renewal application is timely filed and remains pending. This measure helps prevent employment gaps due to processing delays.

E2 spouses authorized to work are eligible to apply for an SSN. To do so, they should submit Form SS-5 to the Social Security Administration, along with proof of their immigration status, work authorization, and identity.

 

E-2 dependent children

 

While minor children (ie under 21 and unmarried) of E-2 holders can apply as dependents to accompany their parent in the US, they will not be permitted to take up paid employment. They may attend public or private school under the E2 visa status (as can spouses).

Once the child ‘ages-out’ ie, reaches 21, they will no longer hold dependent E-2 status and must in advance secure permission to continue residing or studying in the US.

The F1 student visa is a common option as it allows former E-2 dependents to finish their studies in the US.

Alternative options may be available. For example, they may be able to stay on in the US and work in the business if they qualify as E-2 in their own right – this would require them to own 50% of the E-2 business.

 

Need assistance?

 

NNU Immigration specialize in all aspects of the E2 visa, supporting principal applicants and their dependents and employees through the application processes.

If you have a question about US work authorization or any aspect of the E2 visa, contact us.

 

E2 visa work authorization FAQs

 

What is the E2 visa?

The E2 visa is a nonimmigrant visa that allows nationals of treaty countries to enter the US to invest in, develop, or manage a business.

 

Who is eligible for E2 visa work authorization?

E2 visa work authorization is available to the principal investor and certain employees who hold executive, managerial, or essential skills roles in the business.

 

Can family members of E2 visa holders work in the US?

Yes, spouses of E2 visa holders can apply for work authorization and work in any field. Children under 21 cannot work but can attend school.

 

How long is the E2 visa valid?

The initial E2 visa is typically granted for up to two years. It can be extended in two-year increments as long as the business remains operational and meets E2 requirements.

 

What types of businesses qualify for the E2 visa?

Any legitimate for-profit enterprise qualifies, as long as the investment is substantial and the business is not considered marginal.

 

Does the E2 visa lead to a green card?

The E2 visa does not offer a direct path to a green card. However, other visa categories or investment-based green card options may be explored separately.

 

Can an E2 visa holder work for other companies in the US?

No, E2 visa holders can only work for the business they invested in or were hired to manage. They are not permitted to work for any other company.

 

Is there a minimum investment amount for the E2 visa?

There is no fixed minimum investment amount, but the investment must be substantial enough to ensure the success of the business.

 

Can an E2 visa holder travel outside the US?

Yes, E2 visa holders can travel outside the US and re-enter as long as their visa remains valid.

 

What happens if the E2 business fails?

If the E2 business fails or is no longer operational, the visa holder may lose their E2 status and may need to explore other visa options or depart the US.

 

Glossary

 

 

Term Definition
E2 Visa A nonimmigrant visa that allows nationals of treaty countries to enter the US to invest in, develop, or manage a business
Treaty Country A country that has a treaty of commerce and navigation with the US, making its nationals eligible for an E2 visa
Principal Investor The main individual who has made a substantial investment in a US business and is responsible for its development and direction
Substantial Investment An investment that is sufficient to ensure the successful operation of the business in the US
Bona Fide Enterprise A real, active, and legitimate commercial business operating for profit in the US
Marginal Enterprise A business that does not generate enough income to provide for the investor and contribute to the local economy
Work Authorization Legal permission for an E2 visa holder or their spouse to work in the US
E2 Employee An employee of the E2 business who holds a key role, such as an executive, manager, or someone with essential skills
Extension of Stay A process that allows E2 visa holders to extend their authorized stay in the US beyond the initial two-year period
Dependent A spouse or unmarried child under the age of 21 who accompanies the principal E2 visa holder to the US

 

Author

Founder & Principal Attorney Nita Nicole Upadhye is a recognized leader in the field of US business immigration law, (The Legal 500, Chambers & Partners, Who's Who Legal and AILA) and an experienced and trusted advisor to large multinational corporates through to SMEs. She provides strategic immigration advice and specialist application support to corporations and professionals, entrepreneurs, investors, artists, actors and athletes from across the globe to meet their US-bound talent mobility needs.

Nita is an active public speaker, thought leader, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.

This article does not constitute direct legal advice and is for informational purposes only.

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