The E3 visa, available exclusively to Australian citizens, is a fantastic opportunity to work in the U.S., but it comes with strict requirements. One key factor that often causes confusion is whether contract jobs are eligible under the E3 visa. While contract jobs are possible, all E3 visa holders must be classified as W-2 employees rather than independent contractors (1099 workers). Additionally, the E3 visa is only valid for a maximum of two years at a time, regardless of contract length.
What’s the Difference Between W-2 and 1099 Employment?
In the U.S., employment is generally classified into two main categories:
- W-2 Employees: These workers are directly employed by a company, receive a regular paycheck with tax withholdings, and often get benefits like health insurance and retirement plans. This is an employee employee, like you might be familiar at home. You're not a sole-practitioner, or a business owner, you have a job.
- 1099 Independent Contractors: These workers are self-employed and responsible for handling their own taxes. They do not receive the same benefits as W-2 employees and typically work on a project-by-project basis.
For the E3 visa, applicants must be employed as W-2 employees. This means the company must sponsor the visa and employ the applicant under a standard employer-employee relationship. Independent contracting (1099) is not permitted under the E3 visa, so if your plan is to come over and then fetch a whole array of clients, unfortunately you're out of luck.
Can a Contract Job Qualify for an E3 Visa?
Yes, but only if it meets the following conditions:
- The employer must file an LCA (Labor Condition Application) and “sponsor” the visa (this “sponsor” language is contentious because the E3 is not as difficult as other visas like H-1B but ultimately, it's still sponsorship.)
- The job must be considered a specialty occupation requiring a bachelor’s degree or equivalent (and you must have a Bachelor's degree or greater).
- The worker must be classified as a W-2 employee, not an independent contractor.
- The employment must have a clearly defined salary that meets prevailing wage requirements in the LCA.
If the contract job is structured to include these elements, then it may qualify for an E3 visa.
What If My Contract Ends Before the Two-Year Visa Period?
Because E3 visas are valid for “up to” two years, you are well within your rights to take on a job that is less than two years. No LCA and no approval for a visa is for an indefinite length of time on an E-3 visa, they are all capped at 2-years, so whether it's 6 months or the full 2-years you are certainly a potential candidate. If you do have shorter terms, you should be prepared for what happens if your job ends early. If the contract is terminated, the E3 visa is no longer valid, and the visa holder must either:
- Find a new employer who can employ you (after jumping through some transfer of status hoops or a brand new visa)
- Depart the U.S. within 60 days (or less, more here)
- Change visa status if eligible for another category like a tourist visa.
What should you remember about E3 visas and short term contracts?
- E3 visa holders must be W-2 employees; independent contractor (1099) roles are not allowed.
- Shoter term contracts can qualify, but only if the employer sponsors the visa and the job meets specialty occupation requirements.
- The E3 visa is valid for up to two years, but if a contract ends early, the visa holder may need to transfer, leave, or change status.
- Short-term freelance or gig work is not eligible for the E3 visa.
