Legal Question in Immigration Law in California

Although the part time work for the Indian company may not interfere with your H-1B employment, and despite the fact that the company is in India & classifying you as an independent contractor, I still see potential issues and I would not advise any of my clients to do so.

I also do not know what the tax ramifications might be, if any, since the work is being done within the United States and the money is being earned while you are residing in the United States.