The TN (Trade NAFTA) visa remains a highly flexible option for Canadian and Mexican professionals working in the U.S. under the North American Free Trade Agreement. A key benefit of the TN visa is the flexibility in how these professionals are compensated without U.S.-based wage requirements, labor certifications, or prevailing wage standards. For both workers and employers, this means a straightforward approach to hiring skilled professionals without the complex wage attestation requirements often seen in other non-immigrant work visas.
No Wage or Labor Certification Requirement for TN Visas
TN visa applicants and their employers enjoy freedom from labor certification requirements and mandated wage levels. According to 8 C.F.R. § 214.6(d)(3)(ii)(e), TN visa applications must only provide “the arrangements for remuneration for services to be rendered.” This provision does not dictate a minimum wage or prevailing wage, as required for H-1B visas. This regulatory language permits TN visa holders to be compensated at levels that suit the position and professional agreements between the employer and employee.
Flexibility in Source of Compensation
TN visa regulations also provide notable flexibility concerning the source of compensation. Contrary to some misconceptions, a TN applicant is not required to be on a U.S.-based payroll. TN applicants can legally be compensated by foreign employers (Canadian or Mexican companies) without requiring a U.S. payroll arrangement. This policy offers substantial flexibility for both TN employees and their foreign employers, especially for professionals who need to travel or have multi-national roles. When discussing compensation, 9 FAM 402.17-5(B) Evidence of Professional Employment states that there must be proof of professional-level work for a U.S. or foreign employer. When discussing evidence of compensation, it simply states, “Arrangements for remuneration, ” indicating that wages can be from the U.S. or foreign employers.
No Public Charge Concerns
Another advantage of the TN visa is that public charge concerns are rarely raised for applicants. The public charge rule is primarily intended to prevent individuals from entering the U.S. if they are likely to become financially dependent on government support. For TN visa holders, evidence that the applicant qualifies for TN status and has a professional arrangement in place is usually sufficient to address this concern. This reduced scrutiny makes the TN visa an accessible option for professionals compared to other non-immigrant categories that may require proof of financial stability.
A Comparison with Other Visa Categories
The TN visa’s flexibility in compensation and payroll contrasts with several other non-immigrant visas, which impose specific wage or financial requirements:
- H-1B Visa: Requires a Labor Condition Application (LCA) that attests to paying the employee a prevailing wage.
- F-1 Students: Must show proof of sufficient funds to cover tuition and living expenses.
- B-1 Visitors: Prohibited from receiving compensation from a U.S. source.
These categories reflect how the TN visa stands out as a simpler, more flexible route for qualified professionals from Canada and Mexico.
Historical Context: Wage Requirement for Mexican TN Applicants Removed
Initially, a wage requirement was in place for Mexican TN applicants under NAFTA. For the first 10 years of NAFTA, employers of Mexican TN applicants had to file labor condition applications with the U.S. Department of State, similar to the H-1B process. However, in 2004, this requirement was abolished, making the TN visa process identical for Mexican and Canadian professionals and further simplifying the TN visa pathway for both nationalities.
Conclusion
For Canadian and Mexican professionals, the TN visa remains an attractive option, with the absence of wage documentation and labor certifications making it far less complex than other work visas. With its flexibility in both compensation arrangements and source of payroll, the TN visa is an excellent option for Canadian and Mexican nationals and their employers.
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