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Everything Employers Should Know About Hiring STEM OPT Employees

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Hiring an international student can be a great way to bring top talent and cultural diversity to your business, but the recruitment process of STEM OPT employees can be intimidating. The Department of Homeland Security (DHS) facilitates practical training programs that allow certain international students to extend their stay. We’ll go over the STEM OPT program, eligibility criteria for employees and employers and your responsibilities as a STEM OPT employer.

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What is STEM OPT?

The STEM OPT program is an extension of the regular post-completion Optional Practical Training (OPT) program for eligible F-1 students. Originally 17 months, the STEM OPT program has been increased to 24 months as of 2016. This program is intended to provide temporary training following the student’s graduation in an approved STEM (science, technology, engineering or math) field.

Students with an F-1 visa who have completed STEM degrees and a 12-month post-graduation OPT may apply for a STEM OPT extension in their field. This grants them an authorization with which they may work off campus to supplement their education, experience and practical training.

What is F-1 status?

F-1 status refers to a nonimmigrant visa for students working toward specific degrees or participating in exchange programs. International students must usually file an F-1 visa application if they plan to enter any academic institution in the United States. F-1 status only lasts for 60 days following graduation, meaning that students must enter an OPT program if they wish to extend their status.

Benefits of hiring STEM OPT employees

Hiring international employees can provide many advantages to your team and workplace , such as:

  • Unique cultural perspectives that add more nuanced approaches to business decisions
  • Stronger access and dynamics with international markets and clients
  • Improved inclusivity, diversity and representation in your company
  • Enhanced market competitiveness in STEM fields through diverse research and knowledge skills

Who is eligible for STEM OPT?

Before you start the hiring process for potential STEM OPT employees, check that they meet the program eligibility requirements. The STEM OPT program is different from J-1 academic training, the H-1B visa and other international work or training programs. As such, applicants must comply with different eligibility criteria.

Eligibility criteria for STEM OPT extension

To qualify for the STEM OPT 24-month extension, international students and employees must:

  • Have been granted OPT and currently be in a valid grace period of post-completion OPT
  • Work for any employer that meets the requirements indicated in the STEM OPT employer responsibilities
  • File Form I-765 (Application for Employment Authorization). This must be done up to 90 days prior to the expiration of the current OPT authorization, and within 60 days of the OPT’s recommendation date in the Student and Exchange Visitor Information System (SEVIS) record
  • Earn a U.S. Department of Education-accredited and Student and Exchange Visitor Program (SEVP)-certified bachelor’s, master’s or doctoral degree

Alternatively, students may use previously acquired or future degrees to qualify for the STEM OPT program. If they are an F-1 student in the post-completion period of an OPT for a non-STEM degree, they may use a previously acquired STEM degree to apply for a STEM OPT extension. Both degrees must be completed from a Department of Education-accredited and SEVP-certified institution. Students with two STEM degrees may be eligible for an additional STEM OPT extension.

To confirm that their degree qualifies as a STEM designation, students can check the Designated Degree Program List.

Application

To complete an application for the STEM OPT program, F-1 students must file the following information:

  • Form I-765 with application fee, employer ’s name as listed in E-Verify, the Employer’s E-Verify company identification number or the valid E-Verify client company identification number
  • Form I-20 Certificate of Eligibility for Nonimmigrant Student Status endorsed by designated school official (DSO)
  • Copy of STEM degree

If the application is pending while the OPT grace period expires, the U.S. Citizenship and Immigration Services (USCIS) automatically extends the employment authorization by an additional 180 days. Application processing and approval generally takes three to four months.

Reporting responsibilities

Once the employee is granted a STEM OPT extension, they must confirm and report any changes of the following information to their DSO within 10 days of the change or every six months otherwise:

  • Legal name
  • Address
  • Employer ’s name
  • Employer’s address
  • Email address

Students need an active job offer from an E-Verify employer to apply for the STEM OPT extension. While employers aren’t directly involved in the application process, students must provide employer information in their application as indicated.

What are the employer’s responsibilities for sponsoring STEM OPT employees?

As an employer providing practical training and experience opportunities to a STEM OPT student, the USCIS requires you to fulfill certain responsibilities. This relates to employer qualification and eligibility, training obligations and reporting requirements.

Employer qualification and responsibilities

To qualify as as STEM OPT employer, you must:

  • Be enrolled in E-Verify as evidenced by either a valid E-Verify company identification number or;
  • Provide a valid E-Verify client company identification number if using an employer agent to create E-Verify cases
  • Remain in good standing with E-Verify as determined by USCIS
  • Possess a valid Employer Identification Number (EIN) issued by the Internal Revenue Service (IRS)
  • Provide a training program that facilitates student’s academic learning through experience
  • Provide an OPT opportunity that is equal to similarly experienced or qualified U.S. employees in responsibilities, compensation and hours

Employers must also have a bona fide employer- employee relationship with the student, meaning that they must be valid employers and not in name only. Therefore, employees must receive compensation and may not be volunteer workers.

Employees should have access to sufficient resources and personnel for training opportunities related to their field, and the training program will assist students in achieving their established training goals. The STEM OPT employee can’t replace an existing U.S. worker, regardless of their status as full-time, part-time, temporary or permanent.

The DHS is authorized to send associates to perform site visits and ensure that the employee is following the training program.

Employer reporting

Once they’ve hired STEM OPT employees, employers must comply with the following requirements:

  • Report changes of STEM OPT student employment with modified Form I-983 to DSO
  • Report STEM OPT termination of employment to the DSO within five business days

Training obligation

As mentioned above, sponsor companies must have an employer-employee relationship with the STEM OPT student as stated in Form I-983 Training Plan for STEM OPT Students. The employer providing training must be the same as indicated on Form I-983, and they must have sufficient resources at the location of the student’s training. Additionally, personnel delivering training must be employees or contractors of the employer. STEM OPT employees aren’t permitted to train other staff members hired through this program.

Although companies can derive training from existing training plans, they must be customized for STEM OPT employees and identify the relationship between the training opportunity and the student’s degree. Appropriate training programs should include goals for the training period, specific knowledge or skills that the employee will gain, how the training program will facilitate these goals and the employer’s evaluation and supervision methods.

Related: New Employee Training: Do’s and Don’ts for Every Manager

FAQs about hiring STEM OPT employees

Can STEM OPT employees work for two employers?

Employees may work for more than one employer while on a STEM OPT extension. Each employer must satisfy the requirements of the STEM OPT program and provide individual I-983 training plans.

Do international students need work authorization before they can be hired?

International F-1 students don’t need a work permit to receive an employment offer. However, they do need to have work authorization through OPT or OPT for STEM before beginning employment. Students may obtain this authorization during their job application and interviewing process.

Related: How to Conduct a Job Interview

How do employers enroll in E-Verify?

Employers can visit the E-Verify portal to enroll for free. It’s a voluntary program but may be required if employers need to confirm employee eligibility to work in the United States.

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.