STEM OPT With a Staffing Agency or Consultancy: Rules
You can work on STEM OPT for a staffing agency or consulting firm only if that firm is your real employer and provides your training itself. It cannot hand your training to a client. Corp-to-corp and 1099 contractor setups generally do not fit STEM OPT, and SEVP has warned about fraud at some IT staffing firms.
Every job is from an employer that filed H1Bs in 2025. See which ones fit your resume.
The bona fide employer rule
USCIS says your STEM OPT employer must have and keep a bona fide employer-employee relationship with you. It cannot be your employer in name only.
USCIS lists sole proprietorships and employment through temp agencies among arrangements that may not meet this test. Staffing agencies and consulting firms can take part, but only if they are the ones providing the training.
Client sites
Training can happen away from the employer's main office if all training duties are met. Your I-983 must list where training will happen.
The employer may not assign or delegate its training duties to a third party. USCIS says trainers may not be employees or contractors of the employer's clients.
So a firm that places you at a client and leaves all supervision to the client does not meet the rule.
| Employer | H-1B filings | Transfers | Median pay |
|---|---|---|---|
| Amazon.Com Services LLC | 14,047 | 2,382 | $155k |
| Cognizant Technology Solutions US CorpGC frozen | 10,209 | 872 | $110k |
| Ernst & Young U.S. LLP | 9,808 | 269 | $143k |
| Google LLC | 7,899 | 844 | $186k |
| Microsoft CorporationGC frozen | 7,840 | 879 | $173k |
| Tata Consultancy Services LimitedGC frozen | 7,287 | 353 | $86k |
C2C, 1099 and PEOs
- Corp-to-corp: you would work through your own company or a middle vendor. Your own company cannot sign your I-983, and a vendor that does not train you is not a bona fide employer.
- 1099 contractor: an independent contractor is not an employee, so this does not fit STEM OPT. It can work on regular OPT. See self-employment on OPT.
- PEO or employer of record: the company that trains and supervises you must be the one in E-Verify that signs the I-983. Ask your DSO before you accept this setup.
- For H-1B contract work later, see H-1B C2C jobs and third-party placement.
SEVP's 2026 fraud warning
On March 23, 2026, SEVP told schools to watch for STEM OPT fraud at IT recruitment firms, consulting firms and staffing agencies. It said these arrangements remain a fraud concern and are generally not an apt fit for STEM OPT.
During site visits, SEVP and Homeland Security Investigations found empty offices, homes listed as work sites, and students who never showed up for work. People involved may be referred for criminal investigation.
Red flags before you sign
- The firm asks you to pay for training, marketing or placement.
- The website is vague, with no real clients or contacts.
- Duties in the offer do not match the I-983.
- The work address is a home or an empty office.
- No one at the firm will supervise or evaluate you.
- The firm offers to report a job you are not actually doing.
Safer choices
Direct employers that hire STEM OPT workers and sponsor H-1B are the lowest-risk route. Start with STEM OPT employers, check E-Verify employers, and see the STEM OPT hub.
This is general information, not legal advice. Confirm your situation with your DSO or an immigration attorney.
Questions
Can I work for a staffing agency on STEM OPT?
Yes, if the agency is your real employer, is in E-Verify, signs your I-983 and provides the training itself.
Can I be placed at a client site on STEM OPT?
Only if your employer still provides and supervises the training. Trainers may not be the client's employees or contractors.
Is C2C allowed on STEM OPT?
Generally no. STEM OPT needs a bona fide employer that trains you and signs your I-983, which C2C setups usually lack.
Can I do 1099 work on STEM OPT?
Generally no. A contractor is not an employee. 1099 work is an option on regular post-completion OPT, not STEM OPT.
What happens if my STEM OPT employer is fake?
You can lose status, and SEVP says people involved in fraud may be referred for investigation. Talk to your DSO at once.
Sources
- USCIS: Optional Practical Training Extension for STEM Students
- USCIS Policy Manual, Volume 2, Part F, Chapter 5: Practical Training
- ICE SEVP Broadcast Message 2603-02: STEM OPT Employer Fraud (Mar. 23, 2026)
- Study in the States: STEM OPT Students Must Train with Bona Fide Employers
- Study in the States: STEM OPT Employer Site Visits
