New F-1 Rule: What Employers Should Know About OPT And STEM OPT

Dear Clients and Friends,

The Department of Homeland Security has finalized a significant change to the F-1 student visa framework.

Beginning September 15, 2026, F-1 students will generally be admitted for a fixed period instead of “duration of status,” or D/S. Students who need additional time may eventually need to request an extension directly from USCIS rather than through their schools. 

We first covered this development in our June newsletter, when the rule was still proposed. It is now final, and we are already receiving questions about what it means for employees working under OPT or STEM OPT.

The practical takeaway is reassuring but important:

OPT, STEM OPT, and cap-gap protections have not been eliminated. Current employees also receive transition protections. However, F-1 employment will become more date-driven, document-heavy, and dependent on USCIS processing.

What Does This Mean for Current OPT and STEM OPT Employees?

1. Current employees do not automatically lose work authorization

Employees properly maintaining F-1 status do not lose their OPT or STEM OPT authorization when the rule takes effect.

Those admitted for D/S before September 15 generally may remain through the later of their EAD expiration date or the program end date on their Form I-20, subject to the rule’s transition limits.

Properly filed OPT or STEM OPT applications pending on September 15 also receive transition protection. Employees do not need to refile simply because the rule becomes effective.

2. Some filings will temporarily continue under the current process

An eligible student admitted for D/S who files an initial OPT or STEM OPT application on or before March 18, 2027, generally may continue filing only Form I-765.

After the transition period, many applicants may also need to file Form I-539 to extend F-1 status through the OPT or STEM OPT period.

Future cases may therefore involve:

• two USCIS applications instead of one
• additional fees and documentation
• more processing uncertainty
• possible RFEs or employment delays

The existing 180-day automatic extension for qualifying, timely filed STEM OPT applications remains available.

3. International travel may change which rules apply

Travel is one of the most immediate considerations.

An employee who currently has an I-94 marked D/S and travels after the rule takes effect will generally receive a new I-94 with a fixed expiration date upon returning.

That may affect whether an additional extension filing is required. Employers and employees should review international travel before departure, particularly when OPT, STEM OPT, or an H-1B transition is approaching.

4. HR may need to track more than the EAD

The EAD expiration date may no longer provide the complete picture.

Employers and foreign nationals may need to coordinate:

• the EAD expiration date
• the I-94 expiration date
• Form I-20 dates
• OPT or STEM OPT filing windows
• any pending Form I-539
• H-1B or other sponsorship timing
• international travel

The I-9 rules have not suddenly changed, and employers should not request unnecessary documents. However, immigration and workforce-planning teams may need a broader review to confirm that work authorization, immigration status, and sponsorship timing remain aligned.

5. Employment and status records will become more important

A Form I-539 filing gives USCIS another opportunity to review whether the employee properly maintained F-1 status.

Employees should expect closer attention to unemployment limits, authorized employment, accurate SEVIS reporting, the relationship between the job and degree, and compliance with STEM OPT requirements.

Employers should maintain accurate offer letters, job descriptions, payroll records, training plans, supervision information, and employment-verification records. Foreign nationals should retain their Forms I-20, EADs, I-94s, pay statements, W-2s, and USCIS filings.

6. Longer-term planning should begin earlier

Cap-gap protections remain available. However, added filings, shorter timelines, and potential USCIS delays make early H-1B and green card planning more important.

Day 1 CPT, repeated same-level degrees, and other educational strategies may also face greater restrictions or scrutiny and should not be treated as automatic fallback options.

What Should Employers Do Now?

• Identify employees working under OPT or STEM OPT.
• Review their EADs, I-94s, and Forms I-20.
• Flag upcoming OPT and STEM OPT filing dates.
• Review international travel before departure.
• Confirm that STEM OPT training, supervision, and payroll records remain accurate.
• Begin longer-term sponsorship planning earlier.

Bottom Line

Current OPT and STEM OPT employees do not automatically lose their work authorization.

The more significant change is what comes next: additional USCIS filings, more evidence, closer date tracking, and greater coordination among the employee, employer, school, and immigration counsel.

Do not track the EAD in isolation. Review the EAD, I-94, Form I-20, travel plans, filing windows, and longer-term sponsorship strategy together.

Implementation guidance is still developing. We will continue following agency instructions, processing trends, and practical questions and will provide additional updates as more becomes clear.

With clarity and partnership,

Giselle