H-1B Change of Status: Compliance Checklist for F-1 and STEM OPT Workers

For many FY 2027 H-1B beneficiaries, October 1, 2026 marked the transition from F-1 OPT or STEM OPT to H-1B status. If USCIS approved the cap-subject petition with an October 1 change of status, the employee is now working under the terms of the approved H-1B petition and Labor Condition Application (LCA)—not under an OPT employment authorization document. (rnlawgroup.com)

The change creates several immediate compliance tasks. Students and employers should confirm the effective date, review the approved job terms, update payroll, and properly close any STEM OPT training plan.

First, Confirm That H-1B Status Actually Began

An H-1B selection or petition filing alone does not change a worker’s immigration status. Check the Form I-797 approval notice, including the attached Form I-94, to confirm:

• The petition was approved with a change of status;
• The H-1B validity period has started;
• The employer and beneficiary information is correct; and
• The I-94 lists the correct H-1B classification and expiration date.

If the petition remained pending on October 1, the employee did not automatically enter H-1B status that day. Eligible F-1 students may continue under the cap-gap extension until USCIS adjudicates the petition or until April 1, 2027, whichever comes first. If the petition is still pending on April 1, cap-gap employment authorization ends. (public-inspection.federalregister.gov)

A domestic change of status also does not place an H-1B visa stamp in the employee’s passport. The worker generally does not need a new visa merely to remain in the United States, but will normally need an H-1B visa for reentry after international travel unless an exception applies. (travel.state.gov)

Make Sure the Job Matches the Approved H-1B Petition

Once H-1B status begins, the employee’s actual position should remain consistent with the approved petition and LCA. The employer and worker should review the following details:

• Job duties and occupational classification;
• Job title;
• Full-time or part-time schedule;
• Salary;
• Primary and secondary worksites; and
• Remote or hybrid work arrangements.

The employer must pay at least the required H-1B wage—the higher of the applicable actual wage or prevailing wage—and provide the employee with a copy of the LCA. (dol.gov)

Workers should not assume that a promotion, relocation, major duty change, or new remote-work address can be implemented without immigration review. Some changes may require a new LCA notice, while material changes can require the employer to file an amended H-1B petition.

This is especially important for FY 2027 cases because they were selected under the new wage-level-weighted selection process. USCIS may review subsequent petitions or amendments to determine whether a lower wage level, changed worksite, or other modification indicates that the original registration did not represent a bona fide job offer. The rule does not prohibit legitimate business changes, but USCIS evaluates the facts and circumstances of the change. (govinfo.gov)

Expect Payroll and FICA Withholding Changes

Many nonresident F-1 students performing authorized OPT or CPT employment are exempt from Social Security and Medicare taxes. That exemption generally ends when the employee changes to H-1B status.

The IRS states that wages paid for services performed in the United States by an H-1B worker are generally subject to Social Security and Medicare taxes, regardless of whether the worker is classified as a resident or nonresident alien for federal income-tax purposes. Limited exceptions may apply, including certain situations covered by international Social Security agreements. (irs.gov)

Employees should review their first H-1B pay statement and confirm that:

• The H-1B salary matches the approved petition and LCA;
• Social Security and Medicare withholding started on the correct date; and
• Payroll has the correct immigration and tax information.

Because a change to H-1B can also affect tax residency under the substantial presence test, employees may want to review Form W-4 and their tax-filing position with a qualified tax professional.

STEM OPT Workers Must Close the Form I-983

When H-1B status begins, STEM OPT ends. However, the Form I-983 training-plan obligations must still be completed.

The student should prepare a final self-evaluation covering the period through the last day of STEM OPT. The employer must review and sign it, and the student must submit it to the designated school official within 10 days after the training opportunity ends. Failure to submit the final evaluation can violate STEM OPT requirements and potentially affect the student’s immigration record. (studyinthestates.dhs.gov)

Students should keep copies of the signed final evaluation, Form I-983, H-1B approval notice, and correspondence with the DSO. Those records may be useful for future H-1B extensions, visa applications, or other immigration filings.

What H-1B Workers Should Do Now

Employees whose H-1B change of status took effect on October 1, 2026 should promptly verify their approval notice and I-94, compare their actual position with the approved petition, review their pay statement, and complete any outstanding STEM OPT reporting.

Contact the employer’s immigration attorney before changing worksites, accepting substantially different duties, reducing hours, or modifying compensation. A valid H-1B approval is an important milestone, but maintaining status depends on continuing to work under the terms USCIS approved.

Sources:

• Reddy Neumann Brown — Your Employee’s H-1B Change of Status Is Now in Effect: Next Steps for Employers
• DHS Final Rule — Modernizing H-1B Requirements and the F-1 Cap-Gap Extension
• DHS Final Rule — Weighted Selection Process for Cap-Subject H-1B Petitions
• IRS — Taxation of Individuals in H-1B Status
• U.S. Department of Labor — H-1B Worker Rights and Wage Requirements
• DHS Study in the States — Form I-983 Overview
• U.S. Department of State — Temporary Worker Visas and Changes of Status