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USCIS Issues New Rule That Authorizes Opt Extensions For F-1 Students If Their Employer Participates In The E-Verify Program

April 8, 2008

A new rule published today by the U.S. Citizenship and Immigration Service (USCIS), the U.S. Immigration and Customs Enforcement (ICE), and the Department of Homeland Security (DHS) would allow a 17-month extension of the period of optional practical training (OPT) for students in F-1 status if their OPT employer participates in the government’s E-Verify program. The new rule also ameliorates the H-1B “cap gap” problem for students whose F-1 status would otherwise expire before they would be eligible to change their status to H-1B.

Summary of Requirements - The following conditions must be satisfied in order to be eligible for a 17 month extension to the OPT period:

  • F-1 student must be employed by an employer that is enrolled in (and is determined by USCIS to be in good standing in) USCIS’ E-Verify employment verification program at the time the student applies for the 17-month extension; the employer must enroll in the E-Verify program, must sign a memorandum of understanding (MOU) with DHS and the Social Security Administration, and must thereafter submit I-9 employment authorization documents for ALL new hires to E-Verify for verification;
  • F-1 student must hold a bachelor’s, master’s, or doctorate degree within designated science, technology, engineering or mathematics fields (STEM);
  • F-1 student must agree to report to a Designated Student Officer (DSO) at his or her school every six months from the date the OPT extension starts to verify the student’s name, residential and mailing address, and employer’s name and address;
  • If the F-1 student terminates employment prior to the end of the period of OPT, the employer must report to the student’s school DSO within 48 hours after the student leaves employment with that employer;
  • School DSO must report all information in the USCIS SEVIS system.
E-Verify - According to information posted on the USCIS website, E-Verify (formerly known as the Basic Pilot/Employment Eligibility Verification Program) is a voluntary, Internet based system operated by the Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA) that allows participating employers to electronically verify the employment eligibility of their newly hired employees. E-Verify works by allowing participating employers to electronically compare employee information for all new hires taken from the Form I-9 (the paper-based employment eligibility verification form) against more than 425 million records in SSA's database and more than 60 million records in DHS' immigration databases. Results are returned within seconds. According to a study commissioned by DHS in 2007 and posted on the USCIS website,

The accuracy of the USCIS database used for verification has improved substantially since the start of the Basic Pilot program. However, further improvements are needed, especially if the Web Basic Pilot becomes a mandated national program – improvements that USCIS personnel report are currently underway. Most importantly, the database used for verification is still not sufficiently up to date to meet the [statutory] requirement for accurate verification, especially for naturalized citizens. USCIS and SSA accommodate this problem by providing for a manual review of these cases. This review is time consuming and can result in discrimination against work-authorized foreign-born persons during the period that the verification is ongoing . . .

According to information presented in the new rule, “less than 1 percent of the total number of employers in the United States are currently enrolled in E-Verify . . . thus, DHS anticipates that most employers who would want to employ students under the 17-month extension would need to register for E-Verify;” the rule also confirms that “this rule will require the affected employers of students to verify the status of every new employee they hire using E-Verify.”

Cap Gap - F-1 students who are the beneficiaries of approved H-1B petitions, but whose period of admission (including OPT and the 60-day departure period) expires before the H-1B start date, have a gap in authorized stay and employment known as a “cap gap.” The new rule provides an automatic extension of status and employment authorization for F-1 students with pending H-1B change of status (COS) petitions (a pending port of entry (POE) application will not be sufficient to trigger the cap gap benefit). It applies to all F-1 students with pending H-1B petitions, is not restricted to individuals holding degrees in designated STEM fields, and employers are NOT required to participate in E-Verify in order for their F-1 student employees t benefit from this portion of the new rule.

Comment - As acknowledged in the new rule, most employers do not currently participate in the E-Verify program. The potentially high error rate (up to 7%) that is currently reported by DHS, together with the requirement that ALL new hires must be submitted for verification through this system are significant drawbacks that should be carefully evaluated by employers before committing to participate in E-Verify. T&S attorneys will monitor updates and post clarification of the new rule as the information becomes available.

LINKS -

OPT Extension Rule

2007 DHS Report on E-Verify

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