Optional Practical Training

Application process

The student need not have a job offer when applying for OPT, and does not need to specify his/her job offer in the application. However, the potential employer may need to be consulted regarding the choice of future start date in order to keep the unemployment period to a minimum.

Start and end date

In addition, students need to consider the following when choosing OPT start and end dates:

Between graduation and the start date or receipt of EAD card

After the student has graduated from the degree program, the student has a grace period of 60 days for staying in the United States (regardless of whether the student applied for OPT, and regardless of whether the application was approved, rejected, or is pending). However, the student can start OPT employment only after both these conditions are satisfied:

Thus, for instance, if a student delays the OPT application, the student may have a period when the OPT has started but the student cannot begin employment because he or she has not yet received the EAD card.

The 60-day grace period after degree completion can also be used to apply for OPT, prepare to depart from the United States, apply for a transfer to another SEVP-certified school, request a change of level to continue at the current school, or take steps to otherwise maintain legal status. However, choosing to delay the OPT application until that time runs the risk of not having the OPT approved in time (given the processing time of 3–4 months) and may result in a shorter than 12 month OPT period.

Travel while the OPT application is pending

Students are strongly advised not to travel outside the United States during the period between the completion of their degree program and the receipt of their EAD card. This is because, to regain entry into the United States, they need to have a valid I-20 and a valid EAD card. In addition, if their visa has expired, they need to have a valid I-20 and a valid EAD card to renew the visa. EAD cards are not sent to overseas addresses.

Unemployment Period in OPT

Each day the student is not employed in a qualifying job is counted toward the limit on unemployment time. However, time prior to the issuance of the EAD card does not count toward the time spent unemployed. The limit is 90 days for students on post-completion OPT, including those with a cap-gap extension, except that students with a STEM OPT extension are given an additional 30 days of unemployment time for a maximum of 120 days. Students on OPT are required to report to their university every time they start or end a job. (More on eligible jobs below).

The 90-day unemployment period, combined with the 60-day grace period, together mean that one can in principle start working on OPT as late as 150 days after graduation by choosing a late start date and using the full unemployment period at the start of OPT.

For students whose OPT application is approved after their indicated OPT start date, the period between their start date and the date of approval of OPT does not count toward the OPT unemployment period. Nonetheless, the period between OPT approval and receiving the card counts toward the unemployment period (in so far as it overlaps with the OPT period).

The allowance for unemployment under OPT has been vacated by the United States District Court for the District of Columbia, effective February 12, 2016.

Grace period after completion of post-completion OPT

There is a grace period of 60 days after the completion of post-completion OPT. Note, however, that applications to extend OPT (using either the H-1B cap gap or the STEM extension, discussed later) need to be put in before the completion of post-completion OPT. If the student's OPT is over and the student does not have a pending OPT extension application (or the student's extended OPT is over) then the student is not allowed to work during the grace period.

Jobs permitted (and required to count as employment)

Students on OPT must report their jobs to the international office at their university. Most international offices have an interface for students to report and update their job details online.

Academic activities permitted

While the student is on pre-completion OPT, the student's academic activities are unrestricted, as the student is treated just like any other student not on OPT.

While students may be able to take classes under post-completion OPT (for instance, as "graduate-students-at-large" at some universities), they cannot enroll in full-time degree programs while on OPT. If the student wishes to enroll in a degree program, he/she must cancel his/her OPT in order to enroll.

Travel permitted

Students on pre-completion OPT may travel just as ordinary students on student visas. (They need to make sure they have a valid student visa and an I-20 with travel signatures at the time of re-entry).

A student who is currently on post-completion OPT may travel outside the United States. In order to return to the United States, the student needs to have the following:

Taxation

The tax regime that applies to students under OPT depends on whether they qualify as resident aliens or nonresident aliens for tax purposes. The first five calendar years in student status (F-1) are exempt from the Substantial Presence Test used to determine eligibility for being a resident alien for tax purposes, after which approximately six months in the United States makes one a resident for tax purposes.

Students who are nonresident aliens for tax purposes while on OPT are exempt from paying Social Security and Medicare taxes.

This differs from the requirement for paying Social Security and Medicare taxes while engaged in on-campus employment in student status. For the latter, resident aliens in student status are also exempt from paying Social Security and Medicare taxes (per IRC Section 3121(b)(10)), whereas for the former, only nonresident aliens (based on the substantial presence test) are exempt from the taxes.

Differences between working on OPT and H-1B

H-1B cap gap extension

The H-1B cap gap is a specific provision for extending the OPT with very limited applicability. Specifically it applies for people who, at the end date of their OPT, satisfy the following condition: they have a pending or approved Form I-129 petition for H-1B status in the "capped" category, but the start date for the H-1B status has not yet arrived. In particular, therefore, the H-1B cap gap de facto applies only for people whose OPT end date is between April 1 and October 1 (this is because in practice almost all cap-subject H-1B applications are made in the first week of April and choose a start date around October 1). Note also that the H-1B cap gap extension does not apply to workers who have applied for a H-1B visa from a cap-exempt employer (cap-exempt employers include research institutions that have acquired the relevant status; most universities and research centers have this status). Cap-exempt employers can apply year-round for H-1Bs.

The H-1B cap gap allows the worker to continue being employed under OPT until the worker is informed about his or her H-1B application status. If the application is approved, the worker must switch to H-1B status once the H-1B period begins (usually October 1). If the application is revoked or denied, the worker's work authorization is terminated immediately and the worker must stop working at once. The worker still has a 60-day grace period to leave the United States.

For students who avail of the H-1B cap gap, the total unemployment period is still 90 days (or 120 days if the cap-gap was applied for while the student was on the STEM extension).

If people apply for H-1Bs while on their original OPT (i.e., not extended using the H-1B cap gap extension), and are rejected from H-1B, they may continue on OPT until the end date indicated on their OPT. If their H-1B application is authorized, they may choose to switch to H-1B on the H-1B start date and have their OPT ended. They cannot simultaneously be on OPT and H-1B.

It is also possible to apply for and get a cap gap extension after one's OPT work authorization is over, during the 60-day grace period. However, in this case, one cannot continue to work. For instance, if one's OPT ends on March 15, and one applies for H-1B status on April 1 with a start date of October 1, one could apply for the cap gap extension in April and receive it, and thereby stay in the United States as a student till October 1, but without being able to either work or enroll in classes.

STEM extension

The STEM extension is a 17-month or 24-month extension of the post-completion OPT that is specific to workers who graduated in eligible STEM fields. On March 11, 2016, changes were announced to the rules governing the STEM extension, effective May 10, 2016. Both the old and the new rule are compared below.

The STEM extension can be combined with the cap gap in either direction: a student can apply for the STEM extension while on the cap gap (and choose not to transition to the H-1B status), and a student can apply for a cap gap extension while on the STEM extension.

The table below explains the rules surrounding repeat STEM use under the new and old rules:

Students already on a 17-month STEM extension as of May 10, 2016 that is not yet complete will be able to file for a 7-month extension with the USCIS on or after May 10, 2016. Those with an application pending as of May 10, 2016 will receive a Request For Evidence asking if they would like to extend to a 24-month period.

Multiple OPTs

A student is eligible for OPT for each level of study. Thus, for instance, a student can do OPT for his or her undergraduate degree (if done in the United States) and then again for his or her graduate degree (if done in the United States). A student can get an associate degree, do a year of OPT, then transfer and get a bachelor's degree, do a year of OPT, and so on, for master's degree's and Doctorates, as long as students are going "up the educational ladder". Foregoing OPT at the undergraduate level does not give students any extra OPT time at the graduate level (the only exception is the case of the STEM extension, which can only be used once in a person's lifetime).

A student who acquires two masters level degrees can use a total of 12 months of OPT across the two degrees. Thus, a student who, say, completes a masters program in social sciences but anticipates getting an MBA and possibly doing an OPT after that, should choose an OPT duration for after the first masters program that is short enough to give enough time for doing an OPT after the MBA.

Cancellation of OPT

It is possible for students to cancel their OPT, either because they switch to another role (e.g., switch to a full-time degree program) or leave the United States.

Leaving in case of using up the unemployment period

A student on OPT who uses up the 90-day unemployment period must leave immediately. There is no grace period.

The unemployment period has been vacated by the United States District Court for the District of Columbia effective February 12, 2016.

Number of receipts, approvals, denials, and revocations by Fiscal Year

Statistics below are for the United States fiscal year, that runs October to September. For instance, Fiscal Year 2008 starts on October 1, 2007 to September 30, 2008. Data is from a Government Accountability Office report.

Note that the counts here are of receipts, approvals, denials or revocations that happened in the Fiscal Year, regardless of when other activities surrounding that application occurred. For instance, if an application was approved in Fiscal Year 2009 and revoked in Fiscal Year 2010, the revocation would be counted in 2010 rather than 2009. Thus, the number of receipts for a given year need not equal the sum of the number of approvals and denials for that year.

IIE data on number of Optional Practical Training students (total and by country)

The Institute of International Education maintains data on the number of international students as part of its Open Doors project, supported from a grant by the Bureau of Educational and Cultural Affairs in the U.S. Department of State. The data is collected through surveys of over 3,000 accredited U.S. higher education institutions, and does not rely on any privileged access to government data; in particular institutions not included in the survey (such as high schools that issue student visas, and non-accredited institutions that are SEVP-certified) may be omitted from the statistics. Since the 2006-2007 academic year, these surveys have included data on usage of the Optional Practical Training program.

The data below summarizes both total OPT usage and the usage based on country of origin for the top countries of origin. More detailed data is available at the IIE website.

Since the Optional Practical Training program duration is a year for most people (though the STEM extension and cap gap allow for longer OPTs under some circumstances), the number of approvals in a given year should roughly match the number of students on Optional Practical Training. However, because of various mismatches such as that between the fiscal and academic year, and between the date of approval and the start date, and the fact that the Open Doors survey does not cover all SEVP-certified institutions, the numbers may not exactly match those from the GAO table.

Introduction of the STEM extension

The STEM extension was announced in a memo by Department of Homeland Security Secretary Michael Chertoff on April 2, 2008, published in the Federal Register issue of Tuesday, April 8, 2008. The STEM extension appears to be directly attributable to Congressional testimony by Microsoft co-founder Bill Gates, March 12, 2008. Upon its announcement, it was met with criticism from people concerned about high unemployment and wage stagnation in the technology sector for US citizens.

Immigration Reform Law Institute challenge in 2008

The OPT STEM extension announced in April 2008 was challenged in a lawsuit by the Immigration Reform Law Institute filed on May 29, 2008. On August 5, 2008, the lawsuit was rejected by a New Jersey district court judge.

Proposed changes as part of the Obama administration's November 20, 2014 immigration executive action

A November 20, 2014 memo by Department of Homeland Security Secretary Jeh Charles Johnson outlining proposed executive action on immigration endorsed by President Barack Obama included some suggested changes to the OPT program. The proposals were discussed and critiqued in National Law Review.

November 2014 challenge

In August 2015, a US federal court gave the green light to a lawsuit challenging the 17-month OPT STEM extension, filed by the Washington Alliance of Technology Workers and three IT workers who claimed that the OPT STEM extension had created unfair low-wage competition that had materially hurt them. On August 12, 2015, the United States District Court for the District of Columbia vacated the 2008 OPT Regulations but stayed the order until February 12, 2016, later extended to May 10, 2016, to allow DHS to provide a transition. The D.C. District explicitly rejected the reasoning of the New Jersey District and Third Circuit in dismissing the earlier 2008 challenge.

March 11, 2016: new OPT STEM extension rules effective May 10, 2016

The proposed rules suggested in the November 20, 2014 memo by DHS Secretary Jeh Johnson were finalized by the USCIS on March 11, 2016, to be effective May 10, 2016, just in time to address the November 2014 court challenge to the original STEM extension. While the USCIS changes for the most part expanded the STEM extension, they did add a requirement that the employer attest to non-displacement of US workers, thereby addressing the concerns raised in the lawsuit challenging the STEM extension.