The Employer’s Guide to STEM OPT: What You Need to Know

The Employer’s Guide to STEM OPT: What You Need to Know

For employers who have international students in their hiring pool, one topic that often arises is OPT (Optional Practical Training) and its common follow-on, STEM OPT. If you have a candidate mentioning STEM OPT work authorization—or an existing employee looking to transition from regular OPT to STEM OPT—what does that mean for you as an employer? In this blog post, Attorney Loren Locke breaks down everything employers need to know about this unique work program.

What Is STEM OPT?

International students who graduate from U.S. institutions often qualify for a one-year work authorization period known as OPT, which allows them to gain hands-on experience in a job related to their field of study. Following that first year, for graduates with degrees in qualifying fields of science, technology, engineering, or math, there’s an opportunity to extend their work authorization for an additional two years under STEM OPT.

Unlike the first year of post-completion OPT, STEM OPT comes with additional rules, responsibilities, and oversight requirements —both for the employee and the employer. Here’s what you need to know to determine whether this program can work for your organization.

Key Responsibilities for Employers Participating in STEM OPT

If you’re considering hiring an international student under STEM OPT or transitioning an existing employee from regular OPT, here are the primary obligations you should be aware of:

1. E-Verify EnrollmentParticipating in STEM OPT means your company must be enrolled in E-Verify. This requirement applies company-wide—not just for the STEM OPT worker. Many companies already use E-Verify due to state laws or internal policy. The OPT employee needs to document their work authorization on an I-9 like any other employee.
2. The I-983 Training PlanAs an employer, you’ll need to collaborate with your employee to prepare and submit an I-983 Training Plan to their university's International Students Office.
   • What is it? The I-983 highlights how the proposed job relates to the graduate’s field of study, what learning objectives will be met, and how their performance will be monitored.
   • Who keeps it? The plan is not filed with a government agency but instead kept on record at the graduate’s school with their Designated School Official (DSO). While DSOs rarely deny these plans outright, they may request corrections if sections are incomplete.
   • Key features: The training plan also includes a performance evaluation section, which must be signed by both the student and their supervisor at your company.
3. Supervision RequirementsSTEM OPT workers must operate under direct supervision within a bona fide employer-employee relationship. For example:
   • What works: If your worker is based in your office and supervised by one of your employees.
   • What doesn’t work: If you are a staffing company looking to place your STEM OPT employee at a client site without direct oversight from your company, this will not qualify for STEM OPT participation.
4. Pay StandardsWhile STEM OPT doesn’t have the same wage rules as an H-1B visa (e.g., a labor condition application to show that the wage is appropriately high for the occupation in that location), the graduate must be paid commensurately with similarly situated U.S. employees. The employer does not need to document how it determined the wage offer or disclose anyone else's salary.
5. Reporting ObligationsEmployers must report changes to the DSO, including:These reporting obligations are crucial because they directly impact the employee’s ability to maintain their F-1 student status, and therefore their ability to maintain lawful status in the United States.
   • Material changes (e.g., a significant shift in job duties, worksite, etc.).
   • Termination of employment.
6. Compliance Check PotentialWhile rare in recent years, the Department of Homeland Security (DHS) reserves the right to conduct worksite inspections to ensure compliance with STEM OPT program rules. It’s worth keeping this possibility in mind.

Common Questions About STEM OPT Employers Ask

Do I have to participate in STEM OPT?

No, employers are not required to participate in the STEM OPT program. If you’re unable or unwilling to meet the program’s requirements—such as enrolling in E-Verify or preparing the I-983 Training Plan—you’re under no obligation to offer STEM OPT work authorization. It is not unlawful discrimination to decline to employ someone who wants to work pursuant to STEM OPT.

What happens after the two-year STEM OPT period ends?

STEM OPT is a temporary solution that extends work authorization for up to two years. Employers and employees should have a plan in place for what comes next. A popular option is transitioning to H-1B status, which for most employers calls for entering the annual H-1B lottery.

Why Transparency Matters

One of the most crucial aspects of hiring employees under STEM OPT is maintaining open and clear communication with your employee. Discuss their career goals and your company’s ability to support their long-term work authorization needs. By planning ahead, both the employer and employee can have realistic expectations and explore pathways for continued collaboration beyond the STEM OPT period.

Final Thoughts: Is STEM OPT Right for Your Company?

STEM OPT can be a great opportunity for companies to access top-tier talent in STEM fields without immediately investing in company-sponsored visa processes like the H-1B. However, it’s not a one-size-fits-all solution. Be sure to weigh the responsibilities against your company’s goals and capabilities.