how does this mesh with paying individuals (who do not hold us work permits) while they are situated outside of the united states? i'm think in particular of small outsourced software development projects.
What you could do is:
- employed by foreign company
- visit US for MEETINGS with colleagues at a US firm - come up with an agenda (of course you can code during your month here)
- your work cannot be directly FOR a US firm
- the US firm cannot pay you a wage/salary
- the US firm can reimburse your foreign employer for travel/accommodation to/from/in the US, who in turn would presumably cover your expenses while here.
The operative word is "meeting" as opposed to sitting in a cubicle and cranking out code.
What I outlined above is a very common occurrence. Many companies have foreign staff (or staff from foreign associated companies / partners) come in for business meetings.
*edit: i don't know if anyone else is reading this thread, but references for a trustworthy lawyer who can discuss a specific situation via email would be welcome.