A new unit is being developed by the U.S. Department of Homeland Security to review the use of the Optional Practical Training (OPT) work permit for foreign students. The unit will recommend possible investigations of employers and students who do not comply with the required elements of the OPT program. Investigations will be completed by the U.S. Department of Labor and the U.S. Department of Justice, as appropriate.
The OPT program gives foreign students the ability to work in the U.S. for up to three years. The new group, the OPT Employment Compliance Unit, will focus wholly on wages, hours, and compensation. Some believe the OPT program is used to avoid H-1B visa limitations.
In December 2020, a federal court judge upheld the OPT program against a challenge from a union representing U.S. technology workers. The union claimed the OPT program is used to avoid numerical cap limitations on H-1B visas. As a result, the union alleged, OPT workers gain an unfair advantage in comparison to other applicants as employers aren’t required to pay Medicare and Social Security taxes for OPT participants. Many tech giants, including Apple, Google, Uber, Facebook, HP, Salesforce, and Oracle joined the case in an effort to protect the program, suggesting that OPT expands job opportunities for American workers by spurring economic activity.
ILBSG remains committed to helping our clients navigate their businesses through the evolving policy and compliance issues. We take every step possible to ensure your continued success. For any questions, please contact an ILBSG attorney today.
