OPT Stem Extension - Eligibiity to work at client location?

I am working for a consulting firm at client location. My consulting firm is based out of New Jersey.

I have heard of new rule that “Students aren’t allowed to work at client location on OPT Extension”.

To what extent is this true? Any applications getting denied for the same reason?

Please shed some light on this topic. Thank you!

Yes, it is true. Here is the exact text from USCIS website.

"Moreover, a STEM OPT employer may not assign, or otherwise delegate, its training responsibilities to a non-employer third party (e.g., a client/customer of the employer, employees of the client/customer, or contractors of the client/customer). "

Read : USCIS STEM OPT Rule