If you are an employer considering hiring an international student on the 24-month STEM OPT extension, understanding the requirements is essential.
STEM OPT employment is different from ordinary employment. Employers must meet specific requirements related to E-Verify, training, supervision, compensation, working hours, reporting, and the relationship between the student’s job and STEM degree.
The employer also plays an important role in completing and maintaining the student’s Form I-983, Training Plan for STEM OPT Students.
This guide explains the most important STEM OPT job requirements for employers, how the process works, what employers need to provide, and common compliance mistakes to avoid.
Important: STEM OPT rules can change. Employers and students should verify current requirements with USCIS, DHS/SEVP, the student’s designated school official (DSO), or qualified immigration counsel before relying on this article for a specific case.
What Is STEM OPT?
STEM OPT is a 24-month extension of post-completion Optional Practical Training available to eligible F-1 students who have earned qualifying degrees in science, technology, engineering, and mathematics fields.
For an eligible student, the initial 12 months of post-completion OPT can potentially be followed by the 24-month STEM OPT extension, allowing up to 36 months of practical training in total.
However, the student cannot simply accept any job and automatically count it as STEM OPT employment.
The employer and training opportunity must satisfy specific requirements.
One of the central documents is Form I-983, which establishes the student’s training plan and requires certifications from the employer. The current DHS form specifies, among other things, a minimum of 20 OPT hours per week and employer obligations regarding supervision, training, compensation, reporting, and compliance.
What Are the STEM OPT Employer Requirements?
A STEM OPT employer generally needs to meet several important requirements.
The employer must:
- Participate in E-Verify.
- Provide a bona fide employer-employee relationship.
- Provide paid employment.
- Provide at least 20 hours of work per week.
- Provide a structured training opportunity.
- Provide appropriate supervision.
- Have sufficient resources and personnel to provide the training.
- Ensure the position is directly related to the student’s STEM degree.
- Complete and sign Form I-983.
- Provide compensation that meets applicable requirements.
- Comply with applicable federal and state employment laws.
- Report certain employment changes and termination events to the student’s DSO.
These requirements are designed to ensure that STEM OPT provides genuine work-based learning rather than simply functioning as an extension of employment authorization.
1. The Employer Must Participate in E-Verify
One of the most important STEM OPT employer requirements is E-Verify participation.
E-Verify is a federal employment eligibility verification system administered by the U.S. Department of Homeland Security and the Social Security Administration.
Employers that participate in E-Verify use the system to confirm employment eligibility for employees.
For STEM OPT purposes, the employer’s E-Verify participation is an important eligibility requirement.
Employers can enroll through the official E-Verify system.
What should employers do?
If your company wants to hire a STEM OPT student, HR should confirm:
- The company is enrolled in E-Verify.
- The correct employer information is being used.
- HR understands the company’s E-Verify responsibilities.
- The company remains compliant with E-Verify requirements.
Do not assume that having an EIN or participating in another immigration program automatically means that the company satisfies the STEM OPT E-Verify requirement.
2. The Employer Must Provide a Genuine Training Opportunity
STEM OPT is specifically designed around structured, work-based learning.
The employer should be able to explain:
- What the student will learn.
- What skills the student will develop.
- How the student’s responsibilities relate to the STEM degree.
- Who will supervise the student.
- How progress will be evaluated.
- How the training will help the student achieve professional objectives.
The employer must certify through Form I-983 that it has sufficient resources and personnel to provide the training described in the plan.
This means a company should not treat the I-983 as merely an administrative document.
The training plan should reflect what will actually happen in the workplace.
3. The Job Must Be Directly Related to the STEM Degree
The student’s position must be directly related to the qualifying STEM degree.
This is one of the most important requirements.
For example, a student with a degree in:
Computer Science
might work as:
- Software Engineer
- Data Engineer
- Machine Learning Engineer
- Cloud Engineer
- Cybersecurity Engineer
A student with a degree in:
Data Analytics
might work as:
- Data Analyst
- Data Scientist
- Business Intelligence Analyst
- Data Engineer
- Healthcare Data Analyst
The employer should be able to explain the relationship between the student’s academic background and the duties being performed.
The Form I-983 employer certification specifically requires the employer to confirm that the practical training opportunity is directly related to the STEM degree and achieves the objectives of the student’s participation in the training program.
4. The Student Must Generally Work at Least 20 Hours Per Week
STEM OPT employment must generally involve at least 20 hours per week.
The current Form I-983 explicitly states:
“OPT Hours Per Week (must be at least 20 hours/week).”
This is important for employers considering:
- Part-time positions
- Multiple employers
- Consulting arrangements
- Temporary assignments
- Flexible schedules
If a student has multiple STEM OPT employers, the requirements apply separately to each qualifying employment relationship. DHS guidance indicates that a student must meet the 20-hour minimum for each employer.
5. STEM OPT Employment Must Be Paid
STEM OPT is not intended to be unpaid volunteer work.
The employer must provide compensation consistent with the applicable requirements.
Form I-983 requires employers to provide compensation information, including salary amount and frequency and other compensation.
Employers should therefore clearly document:
- Salary
- Pay frequency
- Benefits or other compensation
- Hours
- Employment start date
The compensation should also be comparable to that provided to similarly situated U.S. workers.
6. Compensation Must Be Commensurate With Similarly Situated Workers
The employer must ensure that the terms and conditions of the STEM OPT training opportunity—including duties, hours, and compensation—are commensurate with those applicable to similarly situated U.S. workers.
If the employer does not employ or has not recently employed more than two similarly situated U.S. workers in the area of employment, the comparison may instead involve similarly situated workers in the area of employment.
This requirement is explicitly included in the employer certification section of Form I-983.
What does this mean for employers?
Employers should avoid creating an artificially low-paying position simply because the employee is an international student.
The STEM OPT employee should receive appropriate compensation for the role.
7. The Employer Must Provide Appropriate Supervision
STEM OPT requires meaningful supervision.
The employer must provide on-site supervision and training consistent with the Form I-983 by experienced and knowledgeable staff.
The company should identify:
- The student’s supervisor.
- The supervisor’s title.
- The supervisor’s responsibilities.
- How the student will receive guidance.
- How performance will be evaluated.
A company should be able to demonstrate that someone qualified is actually supervising the student’s work.
8. The Employer Must Have Sufficient Resources
A company cannot simply sign an I-983 if it does not have the ability to provide the proposed training.
The employer must have sufficient:
- Personnel
- Resources
- Expertise
- Supervision
- Training infrastructure
to implement the training program described in the I-983.
This can be particularly important for startups and small businesses.
A small company can potentially employ a STEM OPT student, but it must still be able to provide legitimate structured training and supervision.
9. The Employer Must Complete Form I-983
Form I-983, Training Plan for STEM OPT Students, is central to the STEM OPT employer relationship.
The form captures information about:
- Employer
- Employer identification number
- Worksite
- Supervisor
- Job duties
- Compensation
- Hours
- Training objectives
- Learning outcomes
- Evaluation
- Employer certifications
The employer official with signatory authority must certify the plan.
Employers should make sure the information on the form accurately reflects the actual employment arrangement.
10. The Employer Must Follow the Training Plan
Signing Form I-983 creates ongoing responsibilities.
The employer certifies that it has reviewed and understands the plan and will ensure that the supervising official follows it.
If significant changes occur, the employer may have notification obligations.
For example, the current Form I-983 employer certification addresses changes involving:
- Employer identification number resulting from restructuring
- Compensation reductions not tied to reduced hours
- Significant decreases in training hours
- Hours falling below the 20-hour minimum
The form also requires the employer to report termination or departure under the specified circumstances.
11. Employers Must Report Certain Terminations
Employers have reporting responsibilities when a STEM OPT student leaves employment.
The current Form I-983 states that the employer must report termination or departure to the DSO within five business days during the authorized period of OPT under the circumstances specified in the form.
For example, the form addresses situations where the employer knows the student has left the practical training opportunity or the student has not reported for training for five consecutive business days without the employer’s consent.
HR departments should therefore have a process for notifying the appropriate DSO when required.
12. The Employer Cannot Use STEM OPT to Replace U.S. Workers
The employer must certify that the STEM OPT student will not replace a full-time or part-time U.S. worker, whether temporary or permanent.
This is specifically included in the employer certification on Form I-983.
The purpose of STEM OPT is to provide additional structured practical training—not to displace existing U.S. employees.
13. The Employer Must Comply With Employment Laws
STEM OPT employment must comply with applicable federal and state employment requirements.
The employer certification on Form I-983 requires the employer to certify that the training complies with applicable federal and state requirements relating to employment.
Employers should therefore treat STEM OPT employees as legitimate employees and follow applicable workplace rules.
14. Employers May Be Subject to Site Visits
DHS may conduct employer site visits to verify compliance.
The Form I-983 states that DHS may conduct a site visit to ensure that program requirements are being met, including whether the employer has the ability and resources to provide the structured and guided work-based learning described in the training plan.
This means employers should maintain accurate records and ensure that the actual workplace reflects the information provided in the I-983.
Can a Startup Hire a STEM OPT Student?
Yes, potentially.
There is no general requirement that a STEM OPT employer must be a Fortune 500 company or large corporation.
A startup may employ a STEM OPT student if it meets the applicable requirements.
The startup should be able to demonstrate:
- E-Verify participation
- Legitimate business operations
- Genuine employment
- Appropriate compensation
- At least 20 hours per week
- Qualified supervision
- Structured training
- Sufficient resources
- A legitimate employer-employee relationship
The key question is not simply:
“How big is the company?”
It is:
“Can the company provide legitimate STEM training and satisfy the regulatory requirements?”
Can a Staffing Agency Hire a STEM OPT Student?
Staffing arrangements require particular attention.
DHS guidance explains that STEM OPT students may use staffing agencies to find training opportunities, but all STEM OPT requirements must still be satisfied.
The agency cannot sign Form I-983 as the employer unless it is itself an E-Verified employer of the student and is the entity providing and overseeing the training.
This means employers and students should carefully determine:
- Who is the actual employer?
- Who supervises the student?
- Who provides the training?
- Who signs the I-983?
- Where does the training take place?
- Who is responsible for compliance?
A staffing arrangement should not be treated as automatically qualifying simply because a staffing company is involved.
Can a STEM OPT Student Have Multiple Employers?
Potentially, yes.
A student may have multiple qualifying STEM OPT employment relationships if the applicable requirements are met.
DHS guidance indicates that each employer must satisfy the STEM OPT requirements and that a separate Form I-983 is required for each training opportunity. Each employer must also meet the applicable 20-hour minimum.
For employers, this means each company should maintain its own:
- I-983
- Training plan
- Supervisor
- Employment records
- Compensation information
- Reporting procedures
What Information Does the Employer Need for Form I-983?
Employers should be prepared to provide information such as:
Company Information
- Legal company name
- Address
- Website
- EIN
- NAICS code
- Number of U.S. employees
Employment Information
- Job title
- Start date
- Hours per week
- Salary
- Other compensation
- Worksite
Supervisor Information
- Supervisor’s name
- Title
- Phone number
Training Information
- Student’s role
- Training objectives
- Learning goals
- Skills to be developed
- Supervision structure
- Evaluation process
The employer must then provide the required certifications and signature.
STEM OPT Employer Checklist
Before hiring a STEM OPT student, HR should verify:
- Company participates in E-Verify.
- Employer information is accurate.
- Position is directly related to the student’s STEM degree.
- Position provides legitimate training.
- Employment is paid.
- Employment is at least 20 hours per week.
- Compensation is appropriate.
- Duties are comparable to similarly situated workers.
- Qualified supervisor is available.
- Company has sufficient training resources.
- Form I-983 can be completed accurately.
- Training objectives are clearly documented.
- Employment complies with applicable laws.
- HR understands reporting responsibilities.
- The company can maintain appropriate records.
Common STEM OPT Employer Mistakes
Mistake 1: Signing an I-983 Without Reading It
Employers should understand everything they certify.
Form I-983 is not simply a form for the student’s immigration file.
The employer makes substantive certifications.
Mistake 2: Providing Generic Training
A vague statement such as:
“The employee will gain experience.”
is not a strong training plan.
The employer should describe specific skills, objectives, responsibilities, and learning outcomes.
Mistake 3: Paying Below Comparable Workers
Compensation should be consistent with the applicable requirements for similarly situated workers.
Mistake 4: Hiring a Student for Unrelated Duties
A student’s job must directly relate to the qualifying STEM degree.
The job title alone does not establish the relationship.
Mistake 5: Failing to Maintain Supervision
The employer should ensure that the designated supervisor actually provides appropriate supervision and training.
Mistake 6: Ignoring Changes to the Training Plan
Material changes may require updates or reporting.
Employers should communicate with the student’s DSO when significant employment changes occur.
Mistake 7: Forgetting Termination Reporting
HR should understand the employer’s reporting obligations when a STEM OPT employee leaves.
Mistake 8: Treating STEM OPT as Permanent Work Authorization
STEM OPT is temporary employment authorization.
Employers should not describe it to employees as permanent authorization to work in the United States.
What Employers Should Ask STEM OPT Candidates
During the hiring process, employers can ask appropriate work-authorization questions consistently with applicable employment laws.
For example:
“Are you currently authorized to work in the United States?”
“Will you require employer sponsorship now or in the future?”
The company should apply its hiring policies consistently to candidates.
Employers should avoid making assumptions about a candidate’s immigration status based on nationality, accent, name, or appearance.
Does Hiring a STEM OPT Student Require H-1B Sponsorship?
No.
An employer does not need to file an H-1B petition simply to employ an eligible student under STEM OPT.
STEM OPT and H-1B are separate immigration processes.
An employer can hire someone during valid STEM OPT without committing to future H-1B sponsorship.
However, if the employer and employee want to continue the employment after the student’s STEM OPT authorization ends, another lawful employment authorization or immigration pathway may be necessary.
Employers should plan ahead if they expect to retain international employees long term.
STEM OPT vs. H-1B: What Employers Should Know
| STEM OPT | H-1B |
|---|---|
| Based on F-1 student status | Employer-sponsored nonimmigrant classification |
| Requires qualifying STEM degree | Requires qualifying specialty occupation and other requirements |
| Requires E-Verify employer | Employer files H-1B petition |
| Requires Form I-983 | Requires Form I-129 and supporting documentation |
| Student generally manages STEM OPT application | Employer generally manages petition |
| Temporary training authorization | Separate employment-based status |
| No H-1B petition required for STEM OPT itself | Employer sponsorship required |
Employers should not treat STEM OPT as simply a preliminary H-1B application.
How Employers Can Build a STEM OPT Compliance Process
Companies that regularly hire international graduates can create an internal STEM OPT process.
Step 1: HR Verification
Confirm E-Verify participation.
Step 2: Hiring Manager Review
Confirm that the position is genuinely related to the student’s STEM degree.
Step 3: Training Plan
Develop a detailed I-983 training plan.
Step 4: Supervisor Assignment
Identify an experienced supervisor.
Step 5: Compensation Review
Confirm that compensation and employment conditions meet applicable requirements.
Step 6: Documentation
Maintain copies of:
- I-983
- Employment agreement
- Job description
- Compensation records
- Training evaluations
- Relevant communications
Step 7: Change Management
Create a process for reporting:
- Terminations
- Significant changes
- Changes in compensation
- Changes in hours
- Changes in employer structure
- Other material modifications
Step 8: Periodic Review
Review the employee’s training plan and compliance requirements throughout the STEM OPT period.
Frequently Asked Questions About STEM OPT Employer Requirements
Does a STEM OPT employer have to be E-Verify?
Yes. E-Verify participation is a key employer requirement for STEM OPT.
Employers can access the official E-Verify enrollment system through USCIS.
How many hours must a STEM OPT student work?
The employment must generally be at least 20 hours per week. The Form I-983 specifies this minimum.
Does STEM OPT have to be paid?
Yes. STEM OPT employment is not simply unpaid volunteer work, and Form I-983 requires compensation information.
Does the employer have to sign Form I-983?
Yes. The employer’s authorized official must certify and sign the training plan.
Does the job have to relate to the student’s degree?
Yes. The STEM practical training opportunity must be directly related to the qualifying STEM degree.
Can a small business hire a STEM OPT student?
Potentially, yes. The business must satisfy the applicable requirements and have sufficient resources and personnel to provide the required training.
Can a startup hire STEM OPT students?
Yes, potentially, provided it meets the requirements.
Can a staffing agency employ STEM OPT students?
Potentially. DHS guidance indicates that staffing arrangements can be used when the applicable requirements are satisfied, but the entity signing the I-983 must meet specific requirements concerning E-Verify and responsibility for training and supervision.
Does an employer have to sponsor an H-1B after STEM OPT?
No. STEM OPT itself does not require H-1B sponsorship.
Can DHS inspect a STEM OPT employer?
DHS may conduct site visits to verify that program requirements are being met, including whether the employer has the resources and ability to provide the training described in the plan.
Final Thoughts
Hiring a STEM OPT student can give employers access to highly educated international talent while providing graduates with valuable practical experience in their field.
However, employers need to understand that STEM OPT involves more than simply hiring someone who has an EAD.
A compliant STEM OPT employment relationship generally requires:
E-Verify participation + legitimate paid employment + at least 20 hours per week + degree-related work + structured training + qualified supervision + appropriate compensation + Form I-983 + ongoing compliance.
Employers should also understand their responsibilities after the student begins working, particularly regarding changes to the training plan and termination reporting.
For companies that regularly recruit international graduates, establishing a formal STEM OPT compliance process can make hiring easier and reduce the risk of administrative mistakes.
Ultimately, the goal of STEM OPT is to create a genuine, structured relationship between a student’s STEM education and practical workplace training.
Employers that understand these requirements can build stronger training programs, support international graduates effectively, and maintain a compliant employment relationship throughout the STEM OPT period.