The STEM Optional Practical Training (OPT) extension allows F-1 visa students who have graduated with a degree in a STEM (Science, Technology, Engineering, Mathematics) field to work in the U.S. for an additional 24 months after their initial 12-month OPT period. This extension enables students to gain practical work experience related to their academic studies. For employers interested in hiring and training STEM OPT students, it is crucial to understand and comply with specific legal requirements to maintain compliance with a series of requirements established by the U.S. Department of Homeland Security (DHS) Below is a detailed guide to the requirements employers must meet.

1. E-Verify Enrollment

To employ a STEM OPT student, the employer must be enrolled in the E-Verify program. E-Verify is a web-based system that allows employers to verify the employment eligibility of their employees. The employer must remain in good standing with E-Verify throughout the student’s STEM OPT period.

2. Valid Employer Identification Number (EIN)

The employer must have a valid Employer Identification Number (EIN) issued by the Internal Revenue Service (IRS) for tax purposes. This number is essential for tax reporting and other official purposes.

3. Form I-983 Training Plan

The STEM OPT program requires employers to complete Form I-983, “Training Plan for STEM OPT Students.” This form outlines the structured training program that the employer will provide to the student. Key responsibilities include addressing the following:

• Creating a formal training program: The training must augment the student’s academic learning with practical experience and identify goals which may include specific knowledge, skills, or techniques that will be taught to the student.
• Supervising and mentoring: The employer must expound on how the student will be supervised and describe the evaluation process.
• Aligning the training with the student’s academic goals: The training must be related to the student’s qualifying STEM degree and contribute to the student’s learning objectives.
• Customized training plan: Each Form I-983 must be tailored to the individual student, outlining how the opportunity specifically aligns with the student’s career development.

4. Bona Fide Employer-Employee Relationship

Employers must maintain a bona fide employer-employee relationship with the student, meaning the employer is responsible for providing day-to-day supervision and training. This relationship cannot be superficial or merely in name. The employer attests to this relationship by signing the Form I-983, Training Plan for STEM OPT Students.

Employers must ensure:

• The student is not hired as a volunteer or unpaid worker.
• The student’s work and practical training experience is supervised by and provided by the employer signing Form I-983.

5. Sufficient Resources and Personnel

The employer must have sufficient resources, including qualified personnel, to provide the training outlined in Form I-983. The training must be conducted at the employer’s premises or other specified locations, as stated in the training plan. Additionally:

• The personnel responsible for the training must be employed by the company or retained as direct contractors.
• The student’s training cannot be supervised by another STEM OPT student or any other individual undergoing training in their own right.

6. No Displacement of U.S. Workers

The STEM OPT student’s role must not displace full-time or part-time, temporary or permanent U.S. workers. Employers are required to:

• Provide compensation, hours, and working conditions that are commensurate with those of similarly situated U.S. workers.
• Ensure that the student’s employment enhances their professional skills without negatively impacting the employment prospects of U.S. workers.

7. Reporting Obligations

Employers must promptly report any material changes in the student’s employment or training situation by submitting an updated Form I-983 to the Designated School Official (DSO). Material changes include:

• Changes in the student’s employment address or worksite.
• Modifications to the training plan, goals, or objectives.
• Termination of the student’s employment.

In addition, if the student’s employment ends for any reason, the employer must report the termination or departure to the DSO within five business days.

8. Site Visits by DHS

DHS reserves the right to conduct site visits of employers to ensure compliance with the STEM OPT program. These visits ensure that the employer:

• Is providing the necessary training resources and personnel as outlined in Form I-983. The employer must have sufficient resources and supervisory personnel to run the STEM OPT training program.
• Maintains a bona fide employer-employee relationship with the student. If the student is working off-site, employers should be prepared to provide detailed information about how the student is receiving their practical training while off-site.
• Is adhering to the program’s requirements, including reporting obligations and the integrity of the training experience. DHS will verify that the training program will assist the student in attaining their training goals and the practical training opportunity is directly related to the student’s STEM degree.

Employers must be prepared for DHS to verify compliance through these site visits, which may occur with minimal notice.

9. Staffing and Consulting Firms

Staffing agencies and consulting firms may employ STEM OPT students, but only under specific conditions. To qualify, they must:

• Be the direct employer of the student, maintaining a bona fide employer-employee relationship.
• Provide the training at the employer’s site or other specified locations.
• Ensure that they are the entity providing the practical training and not simply assigning the student to a third-party client or customer.

Conclusion

Employers who wish to hire STEM OPT students must adhere to a structured set of guidelines to ensure compliance with DHS regulations. By enrolling in E-Verify, developing a tailored training plan, and maintaining a bona fide employer-employee relationship, employers can provide valuable training opportunities for international students while also contributing to the growth of STEM fields in the U.S.

For over 25 years, Reddy & Neumann, P.C. has focused solely on U.S. employment-based immigration, and works with many employers who employ STEM OPT students. If you are in need of a U.S. work visa or permanent residency, speak with one of our immigration lawyers. Please contact us online, call our Houston business immigration office directly at 713-953-7787 or schedule a consultation.

By: Jessica Palarca

Jessica Palarca is an attorney in Reddy & Neumann’s PERM Labor Certification Department where she assists clients in the beginning stages of the green card process.

Jessica earned her J.D. from the University of Houston Law Center in 2009 and was admitted into the Texas bar the same year.  As the child of two immigrant parents, Jessica found her passion for immigration law early in her career.  With over a decade of experience in both the private and non-profit sectors, she brings a different perspective to each case she handles.  Through the years, Jessica has learned that to achieve the best possible results for each individual served, one must keep things simple and provide personalized attention and care to each case.