5 Things Every Employer Needs to Know About the New F-1 D/S Rule

The Department of Homeland Security’s (DHS) new F-1 regulations represent one of the most significant changes to international student compliance in decades. While Optional Practical Training (OPT), STEM OPT, and Curricular Practical Training (CPT)—including Day One CPT—remain available, the shift from Duration of Status (D/S) to fixed periods of admission creates important new responsibilities for employers.

Here are five key changes every employer should know.

1. The I-94 Is Now a Critical Compliance Document

Employers can no longer rely solely on an employee’s Form I-20 or Employment Authorization Document (EAD). In addition to tracking CPT and OPT dates, employers should now monitor:

• Form I-94 expiration dates
• I-20 program end dates
• The new 30-day grace period
• Any timely filed Form I-539 Extension of Stay
• USCIS decisions on extension requests

Takeaway: The I-94 should now be treated as a key employment compliance document.

2. Day One CPT Still Exists—But Timing Is More Complicated

The new rule does not eliminate Day One CPT. However, employees transitioning from OPT, STEM OPT, cap-gap, or an H-1B lottery loss may now need to file a Form I-539 Extension of Stay to continue working.

Takeaway: What was once primarily a university enrollment issue is now also a USCIS timing issue. Employers should begin planning months earlier.

3. Missing an Extension Deadline Can Trigger an Immediate Work Stoppage

Timing is now critical.

• If Form I-539 is filed before the 30-day grace period begins, eligible CPT employment may continue while USCIS reviews the application (up to 240 days, subject to authorization).
• If filed during the grace period, the employee may remain in the U.S. and continue studying—but must stop working until USCIS approves the extension.

Takeaway: Even a short filing delay could interrupt an employee’s work authorization.

4. Traditional Post-OPT Backup Strategies Are Narrower

Many employers have relied on Day One CPT programs after OPT or STEM OPT expires or following an unsuccessful H-1B lottery. The new rule limits several of these options by restricting transfers, changes in educational objectives, and certain degree progression pathways.

Takeaway: Employers should evaluate alternative immigration strategies earlier than ever before.

5. Existing F-1 Employees May Receive Transition Relief

Not every current F-1 employee will immediately be subject to the new requirements. Some individuals admitted under the previous D/S framework may qualify for transition protections, depending on factors such as:

• Travel history
• I-94 validity
• OPT or STEM OPT timing
• EAD validity
• Program completion dates

Takeaway: Review each employee individually rather than assuming the same rules apply across your workforce.

Employer Action Checklist

To prepare for the new rule, employers should:

• Review every F-1 employee’s I-94 expiration date.
• Track I-94 expiration separately from I-20 program dates.
• Identify employees nearing the end of OPT or STEM OPT.
• Begin H-1B contingency planning earlier.
• Coordinate closely with immigration counsel and university DSOs.
• Update I-9 reverification procedures.
• Calendar all critical immigration deadlines, including I-94 expiration, grace periods, CPT end dates, Form I-539 filings, and USCIS adjudications.

WR Immigration Takeaway

The new D/S rule fundamentally changes how employers manage F-1 employees. While OPT and Day One CPT remain viable pathways, compliance now extends well beyond university-issued documents. With fixed admission periods, new Extension of Stay requirements, and stricter timing rules, proactive planning is essential. Employers that rely on international talent should review their F-1 workforce now, strengthen internal tracking processes, and work closely with immigration counsel to minimize compliance risks and avoid unnecessary disruptions to their workforce.