The STEM OPT program offers employers a valuable opportunity to hire international talent and enhance their business. However, compliance with U.S. immigration laws requires employers to adhere to specific regulations that promote legal protection and fair employment practices.  

Key responsibilities include maintaining accurate documentation, promptly reporting material changes in employment to the Designated School Official (DSO), and ensuring the student’s job is directly related to their STEM degree. By following these guidelines, employers can mitigate legal and financial risks while fostering a supportive and compliant workplace for their employees.  

In this blog, we will highlight the core obligations of STEM OPT employers and share best practices that will help them stay compliant.  

Why is STEM OPT Compliance Important?

The STEM Optional Practical Training (OPT) Program allows F-1 students who have completed their degree in Science, Technology, Engineering, or Mathematics to stay in the United States for up to 12 months after completing their degree in any respective field.  

Whereas the STEM Optional Practical Training (OPT) extension allows F-1 visa students who have completed their degree in Science, Technology, Engineering, or Mathematics to stay in the U.S. for an additional 24 months and gain valuable work experience after their initial 12-month OPT period.  

These students must fill in Form I-983 because it acts as a training plan to ensure the additional training period is relevant to the student’s STEM degree.  

Some key reasons for STEM OPT compliance include:

• Legal and Immigration Protection: Adherence to STEM OPT compliance ensures the safety of both the employer and the employee by preventing them from serious consequences such as costly fines, legal action, and potential revocation of the work authorization.  

• Encouraging International Talent: A strong commitment to STEM OPT compliance reflects your transparency and dedication to supporting international talent, allowing your organization to attract and hire top foreign talent and retain them.    

• Employer Reputation: Maintaining compliance demonstrates your ethical hiring practices and a welcoming attitude, strengthening your industry presence and promoting a positive company culture.  

• Audits and Inspections: Non-compliance can cause employers to face serious legal and financial consequences, which can damage their reputation and potentially lead to the revocation of the employee's work authorization.                                      

Key Compliance Requirements for STEM OPT Employers

To maintain the integrity of the STEM OPT program and promote a culture of compliance, employers must follow certain rules set by the Department of Homeland Security (DHS) and the U.S. Citizenship and Immigration Services (USCIS), such as:  

• Proper Documentation of Form I-983: Employers must ensure that Form I-983 is up to date and submitted accurately. This form outlines the students’ learning goals and training objectives they must accomplish during employment.  

Note: The student is required to fill this form with the help of their employer and then submit it to the DSO at their school for review and endorsement.  

• Timely reporting of Material Changes: Any sort of change in job duties, student’s supervisor, work location, and employer’s information should be reported directly to the DSO to stay compliant with the USCIS regulations.    

Non-compliance can lead to increased risks of audits, legal and financial penalties, and potential revocation of the student’s STEM OPT extensions.

• Supervision and Evaluation: Employers must provide proper supervision and mentorship to guarantee students gain valuable experience to develop the skills needed to grow professionally.  

Regular performance reviews should be conducted to make sure the student is making positive improvements, and this report should be submitted to the DSO every 12 months with proper documentation.  

STEM OPT Compliance: Employers’ Challenges

Maintaining compliance with STEM OPT regulations can get complex at times, and without the right approach, employers might fail to adhere to the compliance guidelines.  

Some common challenges experienced by STEM OPT employers include:  

• Errors in Form I-983: Incomplete or inaccurate information in Form I-983 can lead to increased inspections and penalties.  

• Delayed Reporting: Failure to report material changes to the DSO on time can cause compliance issues and unnecessarily disrupt the employee’s authorization.    

• Documentation Gaps: Unorganized or inaccurate documentation of training, progress assessments, and other essential documents can cause compliance violations.  

• Time-Consuming Processes: Staying compliant with the STEM OPT rules is a time-sensitive task, and employers often struggle with deadlines, causing delays and confusion that jeopardizes the employer’s relationship with immigration officials.  

STEM OPT Regulations: Latest Updates

The STEM OPT program is subject to periodic Department of Homeland Security updates to increase efficiency. Recently, there have been some updates to the process that STEM OPT employers need to be aware of:    

• Increased Reporting Requirements: STEM OPT students must regularly report their employment status, current job title, employer name, and job duties to their DSO.  

• Stricter Reporting Timelines: Changes in material information about the student’s employment, such as job duties or work location, must be reported to the DSO within 10 days.  

Employers must conduct regular performance reviews and submit progress evaluations at key points during their STEM OPT program (for example- at the 12-month mark and the end of the training period)  

• Clear clarification on Job Requirements: The student’s employment must be related to their STEM degree, and their role should align with the learning objectives of Form I-983, which is to get valuable work experience and enhance their skills.  

• Increased SEVP Site Visits: To ensure transparency and fair practices, the DHS has increased Student and Exchange Visitor Program (SEVP) site visits to ensure employers comply with the STEM OPT regulations.  

Employers are advised to always be prepared with proper documentation such as Form I-983, student employment records, performance reviews, and documentation of material changes to facilitate a smooth audit.  

Preparing for SEVP Site Visits

SEVP site visits, conducted by ICE field representatives, are designed to ensure that STEM OPT employers meet the program’s compliance requirements. These inspections play a critical role in maintaining the transparency and integrity of the STEM OPT program, safeguarding international talent and the U.S. workforce.

During these visits, employers can expect an in-depth review of their adherence to STEM OPT regulations. Officials may request key documents such as Form I-9, SEVIS records, training plans, performance evaluations, and proof of the student’s visa and work authorization. Employers should also demonstrate that the student’s job role aligns with their STEM degree and provide evidence of proper mentorship and career development support.

To prepare for SEVP site visits, employers should maintain organized, up-to-date documentation, train HR staff on compliance protocols, and conduct regular internal audits to identify and address potential risks. By proactively following these steps, employers can ensure a smooth inspection process and demonstrate their commitment to regulatory adherence.

How OnBlick Ensures STEM OPT & I-983 Compliance

OnBlick offers a comprehensive solution to help employers streamline their STEM OPT compliance by reducing the administrative burden and minimizing errors in documentation and reporting.  

• Simplified Form I-983 Management: OnBlick’s Form I-983 module streamlines compliance by guiding employers and students through the process, automating form completion to save time, tracking changes, and ensuring timely evaluations.  

• Customized Templates: OnBlick offers tailored templates to meet employers’ specific needs, ensuring alignment with the employee’s field of study and full compliance with SEVP and ICE audit requirements.  

• Automated DSO Communication: OnBlick automates communication with the DSO, making it easier for employers to report changes such as job duties, salary, location, or termination timely, reducing the risks of potential delays.    

• Centralized Documentation Storage: To ensure the safety and accessibility of crucial documents such as training plans and evaluations, OnBlick secures these in a centralized platform, eliminating the risk of misplaced documentation. These documents are readily available to employers during audits or inspections.  

• Evaluation Management Support: OnBlick helps employers track and submit periodic evaluations of STEM OPT employees. Our automated reminders ensure that evaluations are completed on time, and the platform provides guidance to ensure they meet the required standards set by the DHS.  

Summing Up

Many U.S. employers hire international students under the STEM OPT program, but compliance with USCIS regulations is essential to ensure lawful employment and fair practices. Non-compliance can result in severe legal and financial penalties, harm the organization’s reputation, and even lead to the cancellation of the employee’s work authorization.  

Form I-983 serves as a required training plan for STEM OPT students, completed by the student and employer, and submitted to the DSO. Employers must report any updates promptly to avoid confusion or penalties. Also, with the rise in SEVP site visits, maintaining proper documentation is crucial for passing sudden inspections and audits.  

Compliance may seem daunting, but OnBlick makes it easier by keeping you audit-ready while supporting global talent. Don’t wait- book your free demo today.

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