H1B US employee working from Canada

Hello,

We have an employee working under H1B visa who went to Canada to get his visa stamped - he did not get his visa stamped due to "administrative review" - he has been in Canada since October 2009.

He is still working for us from Canada - he works remotely for a customer located in the states.

Any potential problem with this situation?

Well, he obviously is not a Cdn citizen, since he would not have had to get a Consular Visa.

So, the question becomes what steps have you taken to have him work legally in Canada? he needs status to work there.