Hey Kcshabi, its even BIGGER "illegal" on his part to give job to the one who doesn't have work permit. Here, he is in more vulnerable position than you are. He would be fined thousands of dollars for his act.  As for you, since you are a full time student, you'll just get a warning. Tell that Pakisthani how bad his position is and also tell him that you are going to make complain in the Labor Department. If he does not get it then lodge a complain to the Labor Department. They will probably not ask you whether you were working legally or illegally because its not their business. Their job is to make sure that workers are paid and paid appropriately. But, they'll bust that Pakistani's ass for sure.