An employer hiring an F-1 student on Optional Practical Training has two very different compliance pictures depending on which phase of OPT the student is in. During the initial 12-month post-completion OPT, the OPT employer requirements are essentially a correct Form I-9 and verification of the Employment Authorization Document. During the 24-month STEM extension, the employer becomes a co-participant with the federal government: E-Verify enrollment, a signed training plan, wage parity, ongoing evaluations, reporting deadlines, and site-visit exposure.
Most of what follows applies to the STEM extension, because that is where the real obligations sit.
Standard 12-Month OPT: The Light Version
For the initial post-completion OPT, there is no training plan to file with the government, no mandatory E-Verify enrollment, and no formal reporting obligation to the student’s school. Complete the Form I-9 correctly and verify the EAD. The student handles the rest with their Designated School Official.
That changes the moment the student moves into the STEM extension.
Who Can Employ a STEM OPT Student
Only employers enrolled in E-Verify and in good standing with USCIS can hire a student on the STEM OPT extension.1U.S. Citizenship and Immigration Services. Optional Practical Training Extension for STEM Students (STEM OPT) The student’s application requires the employer’s E-Verify Company Identification Number, so a company that only hired standard OPT students in the past will need to enroll before a STEM extension hire can move forward.2U.S. Citizenship and Immigration Services. Optional Checklist for Form I-765 (c)(3)(C) Filings
There must also be a genuine employer-employee relationship, meaning the company has the authority to hire, fire, supervise, and direct the student’s work. USCIS says several arrangements may not qualify: sole proprietorships, temp agency placements, consulting firm setups that provide labor for hire, and any scenario where the employer exists in name only.1U.S. Citizenship and Immigration Services. Optional Practical Training Extension for STEM Students (STEM OPT) Volunteer positions do not count. DHS reviews these relationships case by case.
The Form I-983 Training Plan
Before the student can apply for the STEM extension, the employer and student must complete and sign Form I-983, the Training Plan for STEM OPT Students, available on the ICE website.3Study in the States. Students and the Form I-983 It functions as a written commitment among the employer, the student, and the government that the position is a structured learning experience tied to the student’s degree.4Study in the States. Form I-983 Overview
The employer completes the sections covering the company’s Employer Identification Number, the supervisor’s name and contact information, the physical work location where the student will actually work, a detailed description of training goals and tasks tied to the student’s STEM field, and the methods the supervisor will use to monitor progress and evaluate performance.5U.S. Immigration and Customs Enforcement. Instructions for Completing Form I-983 Training Plan for STEM OPT Students
The connection between the degree and the actual work matters. A computer science graduate placed on a help desk with no programming or systems design work could trigger a finding of noncompliance during a site visit. The training plan should show that the student is developing new skills in their field, not filling a staffing gap.
Wages, Hours, and Non-Displacement
STEM OPT employers must pay the student on terms commensurate with what similarly situated U.S. workers receive. Under 8 CFR 214.2(f)(10)(ii)(C)(8), “similarly situated” means U.S. workers performing comparable duties with similar educational backgrounds, experience levels, and skill sets, and compensation, duties, and hours must all be consistent with what the employer offers or would offer to those comparable employees.6eCFR. 8 CFR 214.2 – Special Requirements for Admission, Extension, and Maintenance of Status If the company has fewer than three similarly situated U.S. workers, it must still attest that the terms are commensurate with the local market.
The student must work at least 20 hours per week. There is no exception below that floor.6eCFR. 8 CFR 214.2 – Special Requirements for Admission, Extension, and Maintenance of Status Compensation, including any adjustments, must be disclosed on the Form I-983. DHS may ask during a site visit for evidence of how the employer assessed wages for comparable domestic workers, so document your benchmarking when you complete the training plan.
The employer also formally attests on the Form I-983 that hiring the student will not displace any full-time or part-time U.S. worker. That attestation is legally binding and subject to audit.
Reporting Deadlines You Cannot Miss
If the student leaves the company, is terminated, or fails to report for five consecutive business days without permission, the employer must notify the student’s Designated School Official within five business days.6eCFR. 8 CFR 214.2 – Special Requirements for Admission, Extension, and Maintenance of Status
Material changes to the training plan require a modified Form I-983 at the earliest available opportunity. Students must separately report changes such as an employer name or address change to the DSO within 10 business days.7U.S. Citizenship and Immigration Services. Clarification of STEM OPT Extension Reporting Responsibilities and Training Obligations
The Form I-983 instructions treat “material change” broadly. Examples listed include a change in the company’s EIN from corporate restructuring, any pay reduction not tied to a reduction in hours, a significant decrease in hours, and any drop below the 20-hour weekly minimum.5U.S. Immigration and Customs Enforcement. Instructions for Completing Form I-983 Training Plan for STEM OPT Students A supervisor change, a shift to a different office, or a substantial change in job duties also warrants an update. When uncertain, file the modified plan.
Evaluations at 12 and 24 Months
The STEM extension requires two formal self-evaluations. The first is due 12 months after the STEM OPT start date. The second covers the full training period and is due at 24 months, or whenever training ends if the student leaves early.8Study in the States. Students: STEM OPT Reporting Requirements Both the student and the employer must sign each evaluation, and it must reach the DSO within 10 days of the end of the review period. Missing an evaluation deadline can push the student out of legal status. Calendar the dates when the STEM OPT period begins.
Unemployment Days and What They Mean for Termination
F-1 students on the initial 12-month OPT can accumulate up to 90 days of unemployment. For students who move into the STEM extension, the aggregate limit across the full 36-month OPT period rises to 150 days.9Study in the States. STEM OPT Extension Overview Every day the student is not employed counts.
If you terminate a STEM OPT employee who has already used most of that time, the practical effect is ending their ability to remain in the country. Gaps between jobs run the same clock. The five-business-day termination report to the DSO becomes especially time-sensitive when a layoff is involved.
Form I-9 for OPT and STEM OPT Hires
A STEM OPT student typically presents an Employment Authorization Document as a List A document, establishing both identity and work authorization. The EAD for a STEM extension carries category code (c)(3)(C).10U.S. Citizenship and Immigration Services. Employment Authorization Record the document number and expiration date in Section 2.
Because STEM OPT employers must be enrolled in E-Verify as a condition of the program, the employer must create an E-Verify case no later than the third business day after the employee starts work for pay.11E-Verify. 2.2 Create a Case
The 180-Day Automatic Extension
When a student on initial OPT applies for the STEM extension before their EAD expires, work authorization automatically extends for up to 180 days while the application is pending. If the student presents an expired EAD along with a Form I-20 endorsed by the DSO recommending the STEM extension, accept these documents for I-9 purposes. In Section 2, enter “EAD” as the document title, the EAD number, a new expiration date 180 days from the original EAD expiration, and “EAD EXT” in the Additional Information field.12U.S. Citizenship and Immigration Services. 7.4.2 F-1 and M-1 Nonimmigrant Students Reverify on that 180-day date if the new EAD has not arrived.
Cap-Gap Extensions
When an employer files a cap-subject H-1B petition with a change-of-status request for an OPT or STEM OPT employee, the student may qualify for a cap-gap extension bridging the OPT expiration and the October 1 H-1B start date.13U.S. Citizenship and Immigration Services. Extension of Post Completion Optional Practical Training (OPT) and F-1 Status for Eligible Students under the H-1B Cap-Gap Regulations The extension is automatic; no new EAD is issued, and the DSO updates the Form I-20.
Once you receive the Form I-797C receipt notice for the H-1B petition, update Section 2 by entering “CAP-GAP” and the applicable end date in the Additional Information field. The expired EAD combined with the I-797C serves as an unexpired List A document.12U.S. Citizenship and Immigration Services. 7.4.2 F-1 and M-1 Nonimmigrant Students One boundary worth naming: if the H-1B petition is filed for consular processing rather than change of status, the student does not qualify for the cap-gap extension and cannot continue working past the OPT expiration date.
If the Student Has More Than One Employer
STEM OPT students can train with multiple employers at once, but every employer must independently meet all program requirements: a separate Form I-983, E-Verify enrollment, at least 20 hours of work per week, paid employment, independent evaluations, and independent reporting on any termination or material change.14Study in the States. Reminder: STEM OPT Students May Train with Multiple Employers The 20-hour minimum applies per employer, not in aggregate. A student cannot split 20 hours between two companies and claim compliance.
DHS Site Visits
DHS can conduct site visits at any employer participating in STEM OPT. ICE runs these inspections to verify that the student is receiving structured training consistent with the Form I-983.15Study in the States. Employer Site Visits DHS normally provides at least 48 hours of advance notice, but if a visit is triggered by a complaint or other evidence of noncompliance, it can occur without any notice. DHS may also request compliance information by email or phone in place of an in-person visit.
During an inspection, ICE may confirm that the employer has sufficient resources and supervisory personnel to maintain the program and may ask for evidence showing how wages were assessed against similarly situated U.S. workers. Keep training plans, wage benchmarking records, and completed evaluations accessible.
What Noncompliance Costs
If a site visit or audit reveals that the employment is materially inconsistent with the training plan, or that reporting obligations have been ignored, the student’s immigration status can be terminated, potentially leading to removal.
For the employer, DHS can prohibit the company from sponsoring STEM OPT students in the future. A corporate signatory who executes a training plan knowing it contains materially false statements faces potential criminal liability under federal law for making false representations to the government. And if ICE discovers unrelated immigration violations during a STEM OPT site visit, it can refer those findings to appropriate enforcement units.
The employers who stay out of trouble assign one person to own the compliance calendar, keep the training plan honest and updated as the job changes, and treat the reporting deadlines with the same seriousness as a tax filing.