Immigration

Srinivasa Reddy Kandi: STEM OPT Compliance for Employers

February, 25, 2025-05:20

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STEM OPT Compliance for Employers

The STEM Optional Practical Training (OPT) extension permits F-1 visa holders who have completed a degree in a STEM (Science, Technology, Engineering, Mathematics) discipline to engage in employment in the United States for an additional 24 months following their initial 12-month OPT period. This extension provides students with the opportunity to acquire practical work experience that is pertinent to their field of study. For employers seeking to recruit and mentor STEM OPT students, it is imperative to comprehend and adhere to specific legal obligations to ensure compliance with the regulations set forth by the U.S. Department of Homeland Security (DHS). The following is a comprehensive overview of the requirements that employers must fulfill.

1. E-Verify Participation
In order to hire a STEM OPT student, the employer is required to participate in the E-Verify program. E-Verify is an online platform that enables employers to confirm the employment eligibility of their workforce. It is imperative that the employer maintains compliance with E-Verify for the duration of the student's STEM OPT.

2. Valid Employer Identification Number (EIN)
The employer must possess a valid Employer Identification Number (EIN) provided by the Internal Revenue Service (IRS) for taxation purposes. This number is crucial for tax reporting and various official functions.

3. Form I-983 Training Plan
• The STEM OPT program mandates that employers complete Form I-983, titled “Training Plan for STEM OPT Students.” This document delineates the structured training initiative that the employer will offer to the student. Essential responsibilities encompass the following:

• Establishing a formal training program: The training should enhance the student’s academic education through practical experience and specify objectives, which may include particular knowledge, skills, or techniques to be imparted to the student.
• Oversight and mentorship: The employer is required to elaborate on the methods of supervision for the student and to outline the evaluation procedures.
• Aligning the training with the student’s academic objectives: The training must be pertinent to the student’s qualifying STEM degree and should support the student’s educational goals.
• Personalized training plan: Each Form I-983 must be customized for the individual student, detailing how the opportunity specifically supports the student’s career advancement.

4. Genuine Employer-Employee Relationship
Employers are required to establish a genuine employer-employee relationship with the student, which entails the employer's obligation to offer daily supervision and training. This relationship must be substantive and not merely nominal. The employer confirms this relationship by signing the Form I-983, Training Plan for STEM OPT Students.

Employers must ensure:

• The student is not engaged as a volunteer or in an unpaid capacity.
• The student's work and practical training experience are overseen and facilitated by the employer who signs Form I-983.

5. Adequate Resources and Staff
The employer is required to possess adequate resources, including qualified staff, to implement the training specified in Form I-983. This training should take place at the employer's facilities or other designated locations as detailed in the training plan. Furthermore:

• The individuals responsible for delivering the training must be employees of the company or engaged as direct contractors.
• The training of the student must not be overseen by another STEM OPT student or any other person who is also in training.

6. No Displacement of U.S. Workers
The position held by the STEM OPT student must not result in the displacement of full-time or part-time, temporary or permanent U.S. employees. Employers are obligated to:

• Offer compensation, working hours, and conditions that are comparable to those of U.S. workers in similar roles.
• Guarantee that the employment of the student contributes positively to their professional development without adversely affecting the job opportunities available to U.S. workers.

7. Reporting Obligations
Employers are required to promptly notify the Designated School Official (DSO) of any significant alterations in the student’s employment or training circumstances by submitting a revised Form I-983. Significant alterations encompass:

• Changes in the student’s employment location or worksite.
• Adjustments to the training plan, objectives, or goals.
• Termination of the student’s employment.
• Furthermore, should the student’s employment conclude for any reason, the employer is obligated to inform the DSO of the termination or departure within five business days?

8. Site Inspections by DHS
The Department of Homeland Security (DHS) retains the authority to perform site inspections of employers to verify adherence to the STEM OPT program. These inspections are conducted to confirm that the employer:

• Provides the essential training resources and personnel as specified in Form I-983. The employer is required to have adequate resources and supervisory staff to effectively manage the STEM OPT training program.
• Maintains a legitimate employer-employee relationship with the student. In cases where the student is engaged in off-site work, employers should be ready to furnish comprehensive information regarding how the student is obtaining their practical training while off-site.
• Complies with the program’s stipulations, including reporting responsibilities and the integrity of the training experience. DHS will assess whether the training program supports the student in achieving their training objectives and that the practical training opportunity is directly connected to the student’s STEM degree.
• Employers should be prepared for DHS to verify compliance through these site inspections, which may be conducted with little prior notice.

9. Staffing and Consulting Firms
Staffing agencies and consulting firms are permitted to hire STEM OPT students, provided they adhere to certain criteria. To be eligible, these firms must:

• Act as the direct employer of the student, establishing a genuine employer-employee relationship.
• Conduct the training at the employer's premises or at designated locations.
• Guarantee that they are the organization delivering the practical training, rather than merely assigning the student to a third-party client or customer.

Conclusion
Employers seeking to recruit STEM OPT students are required to follow a specific framework of guidelines to ensure adherence to DHS regulations. By participating in E-Verify, creating a customized training plan, and sustaining a legitimate employer-employee relationship, employers can offer meaningful training experiences for international students while simultaneously fostering the advancement of STEM disciplines in the United States.

Srinivasa Reddy Kandi is an Immigration policies researcher and immigration laws analyst.
Kandi Srinivasa Reddy, Srinivasa Reddy Kandi, #KandiSrinivasaReddy, #SrinivasaReddyKandi
Disclaimer: The information presented here is general in nature and might not be applicable in any given situation. It should not be interpreted as legal advice or taken for granted that it is always current.