Our Expert in USA
No results available
The US Department of Homeland Security (DHS) has, in recent rulemaking activity, signalled changes to the cost of employment-based immigration pathways that affect how companies hire and retain international graduates. One widely reported proposal concerns new fees tied to Optional Practical Training (OPT) for F-1 students. Because fee figures, docket numbers and comment deadlines change rapidly and are frequently misreported, employers should treat any specific dollar amount or deadline below as something to confirm directly against the current Federal Register entry and regulations. gov docket before relying on it.
This article explains the structure of such a proposal, who would pay, how costs can reach employers, and how to participate in the rulemaking process, while flagging the figures that must be independently verified.
Who this is for: Employers, HR, talent acquisition and in-house counsel at technology, professional services and life sciences companies that hire international graduates through OPT and the STEM OPT extension.
What you’ll get: A plain-English summary of the type of proposal, who pays, how costs reach employers, how comment periods work, how to file a comment, and workforce-planning alternatives.
DHS has at times proposed new fees associated with Optional Practical Training for F-1 students. Where such a fee is proposed, it is typically structured to be charged to the Student and Exchange Visitor Program (SEVP)-certified school, with the possibility that schools pass the cost on to students or employers. DHS generally frames such measures as anti-fraud and worker-protection tools.
Employers should not rely on any specific headline figure, docket number, publication date or comment deadline unless they have confirmed it in the live Federal Register document. Fee proposals of this type have in recent years been reported with widely varying amounts, and some have been subject to immediate legal challenge. The key practical point for in-house counsel and HR leaders is structural: if a fee attaches at the school level with an express pass-through pathway, the cost may land on employers through tuition surcharges, direct invoices or contractual reimbursement clauses. The single most important immediate action is to audit affected hires and decide whether to submit a comment, alone or through an industry body, before any applicable deadline.
A proposed OPT fee rule would introduce a new fee regime layered on top of the existing Optional Practical Training framework administered under SEVP. OPT and STEM OPT sit within the F-1 nonimmigrant student regulations in Title 8 of the Code of Federal Regulations, and any such proposed rule would operate against that backdrop. Typically a fee would be assessed per F-1 student per OPT grant, meaning an initial OPT authorization and any subsequent OPT period could be treated as separate chargeable events.
At a structural level, a proposal of this kind would generally do several things that corporate readers should note:
Because a notice of proposed rulemaking governs the detail, the regulatory text and impact analysis in the Federal Register document control. Employers and counsel should read the actual Federal Register document directly for the precise regulatory sections being amended, the effective-date language, the exact fee amounts, the Docket ID, and the regulatory impact analysis DHS relies on. The current OPT and SEVP provisions sit within Title 8 of the eCFR, and any proposed rule should be read against those existing provisions to understand exactly what is new.
The legal answer is typically clean; the commercial answer is not. Where a fee is charged to the SEVP-certified school, DHS commonly contemplates that schools may pass the fee on to students or employers. That single feature is why such a proposal matters to corporate budgets: the formal payer and the economic payer may be entirely different parties.
There are three realistic recipients of any pass-through:
Consider an illustrative scenario. Suppose a mid-sized life sciences company plans to convert several STEM graduates to full-time roles via OPT this cycle. If a school passes a proposed initial OPT fee through in full and the company agrees to reimburse it to secure the candidates, the gross cost multiplies across each hire. The point for counsel is that modest hiring volumes can produce substantial aggregate exposure once pass-through is layered on, and the precise per-hire amount depends on the fee figure in the final Federal Register text.
Because DHS typically leaves the mechanism open, employers should anticipate several possible models and ask schools and vendors directly how they intend to recover any fee. Likely approaches include:
Practical advice: ask the SEVP-certified school, in writing, (1) whether it intends to pass any fee through, (2) by what mechanism, (3) at what point in the OPT process the charge is triggered, and (4) whether it will invoice the student or the employer. The answers will determine whether, and how, you need to amend offer letters and vendor agreements.
A proposed OPT fee would typically apply per F-1 student for initial OPT and for subsequent OPT periods. In practical terms, three populations warrant immediate review:
Timing is the critical variable, and it is governed by the effective-date language in the Federal Register document. Employers should not assume that pending OPT applications are automatically covered or exempt, the Federal Register text controls whether applications in process are affected. Because a proposed rule is not yet law, no fee is payable while a proposal remains pending; any obligation would only crystallise if and when a final rule takes effect.
A sensible employer audit has three steps. First, list every active and pending OPT and STEM OPT hire. Second, map each to its OPT stage (initial versus subsequent) and anticipated timeline. Third, flag any candidate whose OPT grant could fall after a potential effective date so that budget and contractual planning can begin now rather than after any comment window closes.
The clearest way to understand employer exposure is to model it against whatever fee figure the Federal Register ultimately sets. The scenarios below illustrate mechanism and magnitude; the specific dollar amounts must be drawn from the live Federal Register document, not from any pre-publication reporting.
The sensitivity of these outcomes depends on employer size and cohort type. A small startup absorbing a single fee feels the impact acutely per hire; a large enterprise feels it in aggregate across many hires. STEM-heavy employers face concentrated exposure because the STEM OPT extension has historically been central to their retention strategy.
| Item | Current practice | Proposed rule (verify in Federal Register) | Employer impact |
|---|---|---|---|
| OPT-specific fee at this scale | No OPT fee of the proposed magnitude | New per-student fee (amount per the Federal Register text) | Potentially large new cost if passed through to employers |
| Who is formally charged | Existing SEVP/USCIS fee framework | SEVP-certified school (per the proposed text) | Cost may be reallocated to employers via pass-through |
| Pass-through mechanism | Not applicable at this scale | DHS typically states schools may pass the fee to students or employers | Requires review of offer letters and vendor contracts |
| Stated policy purpose | Program administration and adjudication | Combat fraud and protect US workers | Shapes the arguments available in comments |
| Legal status | In force | Proposed rule, not yet law; confirm comment deadline in the docket | Opportunity to influence the outcome before finalisation |
It bears emphasising because it governs everything that follows: a proposed rule is not a final rule. A fee of this type would be advanced through a notice of proposed rulemaking (NPRM). Under the standard federal rulemaking process governed by the Administrative Procedure Act, DHS must generally publish the proposal, invite public comment, consider the comments received, and then decide whether to issue a final rule, which may differ from the proposal, be delayed, or not issue at all.
Any comment period closes on the date stated in the Federal Register document; employers must confirm that date directly rather than relying on secondary reporting. After the window closes, DHS reviews submissions and may revise the fee amount, the pass-through framing, the effective date or the scope before publishing any final rule. The timeline from proposal to final rule is not fixed and can run from months to considerably longer, depending on the volume and substance of comments and any further agency review.
Employers should also understand that final rules of this kind can be subject to legal challenge, including on administrative-law grounds such as whether an action is arbitrary and capricious or whether the agency observed required procedures. The practical implication is that even a finalised fee could face litigation and may be enjoined. For planning purposes, the right posture is to prepare for the possibility that a fee becomes effective while recognising that nothing is owed unless and until a final rule takes effect and survives any legal challenge. The American Bar Association’s immigration resources are a useful reference point for understanding the procedural mechanics and administrative-law standards relevant to commenting and challenge.
The comment window is the single most direct way for employers to influence the outcome. Comments must be received on or before the deadline stated in the Federal Register document, and they should be substantive, data-driven and tied to the regulatory record.
Use the following template, replacing the bracketed placeholders, as a starting point for a concise employer comment on a proposed OPT fee rule:
“[Company name] respectfully submits this comment on the proposed rule concerning Optional Practical Training fees, Docket [insert Docket ID]. We employ [number] individuals authorised under OPT and the STEM OPT extension, including [number] in STEM roles. The proposed fees, if passed through by SEVP-certified schools to employers, would increase our per-hire costs by an estimated [amount] and materially affect our ability to recruit and retain early-career talent in [sector/region]. We respectfully request that DHS reconsider the fee level, clarify the pass-through framework, and fully account for employer and workforce impacts in its regulatory impact analysis.”
A coalition or trade-association filing should build out three additional sections beyond the short template: (1) an economic-analysis section quantifying aggregate impact across member employers, including hiring volumes, affected sectors and estimated total cost of pass-through; (2) a regulatory-flexibility request asking DHS to consider less burdensome alternatives, phased implementation or exemptions for specified categories; and (3) a legal-argument section addressing the adequacy of the cost-benefit analysis and any administrative-law concerns. Multi-employer filings should identify each participating organisation, summarise the combined workforce affected, and present a unified ask so the record reflects a coherent industry position.
Even while a rule is only proposed, prudent employers should model alternatives. The following options carry different cost, timing and compliance trade-offs:
Each alternative carries compliance flags. Remote and contracting arrangements must respect immigration-authorisation rules and wage-and-hour obligations. Any reimbursement or deduction arrangement should be checked against employment-law requirements, including fair-labor-standards considerations, before implementation.
Because a fee of this type is charged to schools but may be passed through, the contractual layer is where employers can most effectively manage exposure. Counsel should consider:
Throughout, keep immigration-compliance and employment-law risk in view. Clauses that shift costs to employees, or that could be read as conditioning employment on immigration status in impermissible ways, require careful drafting and legal review.
With any comment deadline potentially approaching, the following actions are time-sensitive:
This article was produced by Global Law Experts. For specialist advice on this topic, contact Ross Epstein at Intelink Law Group, a member of the Global Law Experts network.
For primary-source verification and comment submission, consult the Federal Register, regulations.gov, DHS policy materials, and the ICE SEVP program pages for the role of SEVP-certified schools. Review the existing OPT and SEVP provisions in Title 8 of the eCFR to situate any proposed changes, and use the American Bar Association’s immigration resources for procedural guidance on commenting. The short and expanded comment templates above are provided as editable starting points; adapt the placeholders to your organisation’s data before filing.
In short, a proposed OPT fee rule, if finalised and passed through by schools, could materially change the economics of hiring international graduates. Any such rule is not law until finalised, specific figures and deadlines must be confirmed against the live Federal Register document, and employers that act early can both manage their exposure contractually and shape the regulatory record while it remains open.
posted 4 minutes ago
posted 25 minutes ago
posted 40 minutes ago
posted 52 minutes ago
posted 59 minutes ago
posted 1 hour ago
posted 1 hour ago
posted 2 hours ago
posted 3 hours ago
posted 3 hours ago
posted 3 hours ago
No results available
Find the right Legal Expert for your business
Send welcome message