Useful Tips for Companies that Hire OPT Students in USA
Students entering the USA for pursuing education have high hopes for their future as they wish to get the most out of their college education. To complement the knowledge gained in the classroom, they undertake volunteering, internship, and employment opportunities either on the campus or outside the campus.
Students enrolled in an academic program in SEVP-certified educational institutions in the United States of America obtain an F1 visa that allows them to undergo OPT, i.e., Optional Practical Training. During their OPT, F1 student visa holders can legally work in a for-profit or a non-profit organization.
The companies that hire OPT students have increased in number as per recent trends due to various advantages linked with employing international students. F1 visa holders participating in graduation, post-graduation, or doctoral degree program get a period of 12 months for OPT. Students enrolled in STEM disciplines (Science, Technology, Engineering, and Mathematics disciplines) get an additional period of 24 months after post-completion OPT which is known as a ‘STEM OPT Extension period’.
Though the demand for both OPT jobs and OPT candidates has soared, employers and recruiters still face some difficulties while hiring international students. If you are one of them, read this blog post, as we have provided information on various aspects to help you address these difficulties.
Before Inviting OPT Resumes from Candidates, go through the Below Paragraphs:
Details of OPT Employment
Companies that have adopted the route of hiring OPT students for filling their temporary and/or part-time vacancies in the past might be aware of the essential facts. But if you have never hired them before, you must learn about the details of OPT employment.
- International students get a cumulative total period of 12 months for performing an OPT job. They can divide this period into various small periods before and/or after finishing their studies.
- OPT employment accepted during studies is known as ‘Pre-Completion OPT’ and OPT employment accepted after completion of studies is known as ‘Post-Completion OPT’.
- During pre-completion OPT, students can work part-time (20 hours or less in a week) and full-time (20–40 hours in a week) when school is in session and when school is not in session respectively.
- Students can choose to work part-time (20 hours or less in a week) for pre-completion OPT when school is not in session, i.e., during school breaks or vacations.
- The period for which a student has undertaken pre-completion OPT is deducted from the total period of 12 months for determining the eligible period of post-completion OPT.
- For the purposes of calculation, the duration of a part-time OPT job is converted into the duration of a full-time OPT job by dividing it by 2. So, 6 months of part-time OPT becomes 3 months of full-time OPT.
- During post-completion OPT, the students can work either part-time or full-time as per their preference. But they need to work for a minimum of 20 hours a week.
- Students employed during the STEM OPT extension period, i.e., the extension period of 24 months after the post-completion OPT must work for at least 20 hours in a week.
Rules for Remuneration
- The companies that hire OPT students in USA must remember that initial OPT undertaken, whether before or after the completion of studies, can be paid or unpaid. In other words, pre-completion OPT and post-completion OPT can be paid or unpaid. But students must be paid during the STEM OPT extension period as per the rules.
- Though you can offer unpaid internships to F1 student visa holders for their optional practical training (OPT), you should consider paying at least minimum wages to keep them motivated. It’s important to note that you should not pay below the minimum wage set by the government.
Work Hours & Shift Timings
- You must keep in mind the minimum and the maximum number of hours for which international students on OPT are allowed to work. If you have hired OPT students for part-time jobs, you cannot make them work for more than 20 hours per week. If OPT students are employed in a full-time job during vacation or summer breaks, duties that can be fulfilled within 40 hours a week should be assigned to them.
- Students on post-completion OPT can work for as many hours as they want, but the total number of hours cannot be less than 20 per week. Moreover, you should take into account class and exam schedules of students who are on pre-completion OPT during the academic term. You need to decide the shift timings and number of work hours carefully.
To continue your education/job journey, these additional resources will be helpful:
Formalities and Documentation
- Employers and recruiters should stay abreast of the documentation process required for employing OPT candidates. However, you need to understand that you are just one of the links in the long chain of paperwork and formalities to be completed for hiring OPT students. Other links are the student, educational institution, and the USCIS (U.S. Citizenship and Immigration Services).
Form I-765 and Form I-20
- The process starts with the application submitted by the student via Form I-765. Based on the information mentioned in Form I-765, the Designated School Official (DSO) of the university in which the student is enrolled will issue Form I-20. Considered as an employment endorsement document given by the DSO, Form I-20 takes 1 to 2 weeks to be processed.
Employment Authorization Document (EAD)
- On submitting the details of Form I-20 in the SEVIS (Student and Exchange Visitor Information System), the EAD, i.e., Employment Authorization Document gets issued to the student. An EAD is considered as an authorization for work from the USCIS. The EAD of a student contains the start date and end date of OPT employment (dates are requested by the student via the form filled by him).
- As F1 student visa holders can apply for EAD without having any job or internship offer in hand, they specify probable dates in their application. Therefore, you must abide by the end date to ensure that the student employed in your organization maintains a lawful F1 status. At the time of joining, you should check the EAD card of OPT candidates. In the case of pre-completion OPT students, you need to make sure that they have successfully completed 1 year of enrolment in an academic institution before beginning to work.
Offer Letter
- F1 student visa holders need not have the offer letter in hand while applying for pre-completion and post-completion OPT authorization. But once they start working after receiving an EAD card, they need to update the SEVIS records regarding their employment. So, it would be beneficial if you give a professionally drafted offer letter to the OPT candidates working in your company.
- If it’s not possible for you to give an offer letter, provide them with the required details about their job role & duties as well as your organization. But you must compulsorily give the offer letter to STEM OPT extension candidates as they need it while applying for work authorization.
Form I-9
- Every employer needs to complete and retain Form I-9, which is considered as a proof of identity verification of employees. The documents required to ascertain the identity and employment authorization vary for different employees depending on the fact whether they are citizens, immigrants or non-immigrants.
- In the case of OPT candidates, the employment authorization document (EAD) serves the purpose. You have to collect the EAD of OPT students for filling the information in Form I-9. You also need to mention the card number and expiration date (end date of OPT) in Form I-9. If the EAD of students expires while their application for STEM OPT extension is pending, they automatically get an extension of 180 days. In such a scenario, you need to reverify their details with the help of expired EAD card and Form I-20 endorsed by the DSO.
- At the end of this extension period, which generally ceases when the outcome for the STEM OPT extension application arrives, you have to again check the work authorization of the candidates who will continue working with you.
Form I-983
- The objective behind granting an extension period of 24 months for receiving optional practical training (OPT) to the students enrolled in STEM fields is to provide them with maximum exposure. Therefore, the companies that hire OPT students in USA during the STEM OPT extension period need to prove that they are contributing to this objective.
- As an employer, you need to complete certain sections of Form I-983 and ensure that students submit this form to the DSO in their university. Form I-983 states the training plan that includes the specific objectives of a student and ways to achieve them. You have to sign Form I-983 and comply with the regulations related to the STEM OPT extension.
- Make sure that the training plan is properly implemented through daily activities carried out by STEM OPT extension students in your organization. In the future, if any material changes occur in the training plan, you should submit the modified Form I-983 to the DSO within the shortest possible time. You need to update Form I-983 every 12 months and when the student changes the employer.
Fees and Expenses
- Whether you wish to employ or have employed students on pre-completion OPT, post-completion OPT or STEM OPT extension, you are not liable for paying any application or visa fees.
Reporting Requirements
- You need to adhere to certain reporting requirements if your workforce consists of one or more F1 student visa holders who are on pre-completion OPT, post-completion OPT or STEM OPT extension.
Termination and Deportation of Students
If the students working in your organization during their STEM OPT extension period get terminated or deported due to any reason, you must report to the DSO at their educational institution within 5 days of the occurrence of their termination or deportation.
Training Plan of STEM OPT Candidates
As mentioned earlier in this blog post, you need to submit Form I-983 that contains the training plan of international students working during the STEM OPT extension. You are also responsible for submitting a modified Form I-983 whenever you intend to deviate from the original training plan. If your STEM OPT extension employees leave your organization to work for another employer, Form I-983 needs to be updated.
Important Points to Consider
USA companies that hire OPT students should pay attention to the following points for making their recruitment process smooth.
Relationship between Work and Field of Study
Students holding an F1 visa need to prove that the employment they wish to undertake is related to their field or major area of study. In the case of students who apply for STEM OPT extension, the relationship between work and field of study can be shown with the help of an offer letter given by the prospective employer.
However, as the application to get authorization for pre-completion OPT and post-completion OPT can be submitted before securing any job, students prove this relationship once they start working. If you hire international students on pre-completion OPT or post-completion OPT and cannot give a formal offer letter to them even after they join, you must provide in writing the crucial information about how their work is related to their studies.
E-Verify Employer for STEM OPT Extension
To be considered as eligible for providing employment opportunities to STEM OPT candidates during their extension period, you must be an “E-Verify Employer”. For becoming an E-Verify employer, you need to register yourself in E-Verify, which is an online system. The enrolment process on the E-Verify platform is quite simple. You must remain in good standing with E-Verify throughout the employment duration of STEM OPT extension candidates.
Determine the Eligibility of Students Properly
Though students willing to accept optional practical training (OPT) jobs will determine their eligibility time and again by taking into account the changes in laws and regulations, you must show prudence before hiring anyone.
- For pre-completion OPT, inquire about the previous jobs undertaken by the students during various academic terms, breaks, and summer vacations.
- For post-completion OPT, inquire about the previous jobs undertaken by the students before and after completion of their academic program.
- Remember that 12 months for OPT and 24 months for STEM OPT extension are available for each level of degree, i.e., bachelor’s, master’s, and doctoral.
- Check the duration for which a prospective pre-completion or post-completion OPT candidate might have undertaken CPT (Curricular Practical Training).
- Confirm whether the initial OPT of prospective candidates for STEM OPT extension was related to their field or major area of study or not.
Rules for STEM OPT Extension Period
You must follow certain rules for hiring students who are willing to work in your organization during their STEM OPT extension period.
- Ensure that the STEM major of students is mentioned in the STEM Designated Degree Program List created by the Department of Homeland Security (DHS).
- You should have sufficient resources and trained personnel for delivering the training to candidates as per the training plan mentioned in Form I-983.
- Stay prepared for the worksite inspections conducted by Immigrations and Customs Enforcement (ICE) for accessing your training plan.
Details related to hiring OPT students
OPT and STEM OPT extension employers should take care of small details to avoid all kinds of risks in the future.
- Keep sufficient proofs in the form of timesheet entries or activity log to show the remuneration, performance, shift timings, work hours, and leave a record of OPT students.
- Make sure that students employed on paid jobs have a social security number (SSN) or have applied for the one after joining your organization.
You can always refer the website of the USCIS and other credible online & offline resources for finding out answers to your queries related to the employment of F1 student visa holders on optional practical training (OPT).
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