Chapter 1 - Purpose and Background

A. Purpose

The L-1 nonimmigrant visa classification enables a U.S. employer that is part of an international organization to temporarily transfer employees from one of its related foreign offices to locations in the United States.^[1] Specifically, the L-1A classification applies to intracompany transfers of managers and executives, while the L-1B classification applies to intracompany transfers of employees with specialized knowledge relating to the organization’s interests.

B. Background

1. 1970 Amendments to the Immigration and Nationality Act

In 1970, Congress created the L-1 program after concluding that existing immigration laws had restricted the transfer and development of personnel from abroad who were vital to the interests of U.S. businesses.^[2] Congress created the L-1 visa classification for noncitizens who: 

“Immediately preceding the time of [their] application for admission into the United States, [had] been employed continuously for one year by a firm or corporation or other legal entity or an affiliate or subsidiary thereof and who [seek] to enter the United States temporarily in order to continue to render [their] services to the same employer or a subsidiary or affiliate thereof in a capacity that is managerial, executive, or involves specialized knowledge…”^[3]

Congress believed that the L-1 classification would enable companies to freely transfer managerial, executive, and specialized knowledge personnel within their organizations (intracompany transferees), but the legislative history indicates that Congress intended for the class of eligible persons to be narrowly drawn and carefully regulated. Congress anticipated that the L-1 petition process would be administered speedily and efficiently, so that while the review would be thorough, it would not hinder international companies with undue delays.^[4]

2. Immigration Act of 1990

The Immigration Act of 1990 (IMMACT 90) created the L-1 visa classification as it substantially exists today.^[5] It increased the maximum period of admission for executives and managers from 6 to 7 years, while limiting persons possessing specialized knowledge to a maximum period of 5 years. IMMACT 90 also allowed noncitizens to qualify for L-1 classification by serving the organization abroad for 1 of the 3 years preceding admission. The 1970 amendments had required that the employment abroad occur within the year immediately preceding admission.

IMMACT 90 also codified the blanket petition process first created by legacy Immigration and Naturalization Service regulation in 1983^[6] meant to streamline the admission of L-1 beneficiaries.^[7] Further, it eliminated the presumption of immigrant intent within the L classification.^[8] IMMACT 90 also provided definitions of managerial capacity, executive capacity, and specialized knowledge, and expanded the definition of affiliate to include the international partnership agreements used by international accounting firms.^[9]

3. Nursing Relief for Disadvantaged Areas Act of 1999

The Nursing Relief for Disadvantaged Areas Act of 1999 expanded the definition of affiliate to include the international partnership agreements used by international management consulting firms.^[10]

4. L-1 Visa Reform Act of 2004

Congress established further requirements for the adjudication of L-1B petitions when it enacted the L-1 Visa and H-1B Visa Reform Act of 2004 (VRA).^[11] This legislation addressed the outsourcing of L-1B beneficiaries to third-party work sites as labor for hire. The VRA requires that any beneficiary with specialized knowledge who will be primarily located offsite must be controlled and supervised by the petitioning company. Additionally, the beneficiary must be working at the offsite location in connection with an exchange of products or services between the petitioning company and the unaffiliated company for which specialized knowledge specific to the petitioning company is required.

In addition, the VRA requires petitioners to pay a fraud prevention and detection fee of $500 for certain L-1 petitions, in addition to the filing fee required for all L-1 petitions.^[12] The L-1 petitioner must pay this fee when petitioning for an initial L-1 grant for the beneficiary or when the beneficiary is already an L-1 nonimmigrant and is changing employers.

5. Emergency Supplemental Appropriations for Border Security for Fiscal Year 2010

The Emergency Supplemental Appropriations for Border Security for the Fiscal Year Ending September 30, 2010 required certain L-1 petitioners to pay a fee of $2,250 in addition to the filing fee for all L-1 petitions and the fraud prevention and detection fee.^[13] This fee only applied to petitioners who employed at least 50 employees in the United States, and more than 50 percent of these U.S. employees were L-1 or H-1B nonimmigrants. If the petitioner met these criteria, then it was required to pay this fee when petitioning for an initial L-1 grant for the beneficiary or when the beneficiary already was an L-1 nonimmigrant and was changing employers. Initially due to sunset on October 1, 2014, Congress extended collection of this fee through September 30, 2015.^[14]

6. The Consolidated Appropriations Act of 2016

The Consolidated Appropriations Act of 2016^[15] increases fees for certain H-1B and L-1 petitioners. These petitioners must submit an additional fee of $4,000 for certain H-1B petitions and $4,500 for certain L-1A and L-1B petitions postmarked on or after December 18, 2015. The additional fees apply to petitioners who employ 50 or more employees in the United States, with more than 50 percent of those employees in H-1B or L-1 (including L-1A and L-1B) nonimmigrant status. These petitioners must submit the additional fees with an H-1B or L-1 petition filed:

• Initially to grant status to a nonimmigrant described in subparagraph (H)(i)(b) or (L) of section 101(a)(15) of the Immigration and Nationality Act; or

• To obtain authorization for a nonimmigrant in such status to change employers.

The Consolidated Appropriations Act of 2016 fee increases are in addition to the base processing fee, fraud prevention and detection fee, and the premium processing fee, if applicable. The Consolidated Appropriations Act of 2016 fees remain effective through September 30, 2027.^[16]

C. Legal Authorities

• INA 101(a)(15)(L) – Definition of L nonimmigrant classification

• INA 101(a)(44) – Definition of managerial capacity and executive capacity

• INA 214(c)(2) – Petition of importing employer for L nonimmigrant

• INA 214(c)(12) – Fraud prevention and detection fee

• 8 CFR 214.2(l) – Intracompany transferees

Footnotes

[^ 1] The term L-1 is used for visa issuance and admission purposes. USCIS uses the "A" and "B" distinctions internally for statistical and other purposes.

[^ 2] See H.R. Rep. 91-851 (1970).

[^ 3] See Pub. L. 91-225 (PDF), 84 Stat. 116 (April 7, 1970), amending INA 101(a)(15)(L).

[^ 4] See H.R. Rep. 91-851 (1970).

[^ 5] See Pub. L. 101-649 (PDF), 104 Stat. 4978 (November 29, 1990).

[^ 6] See 48 FR 41142 (PDF) (Sept. 14, 1983).

[^ 7] See INA 214(c)(2)(A).

[^ 8] This allowed noncitizens to seek temporary classification as an L nonimmigrant while also intending to reside permanently in the United States. Therefore, the approval of a permanent labor certification or the filing of an immigrant visa petition on behalf of a noncitizen beneficiary cannot be the basis for denying an L-1 petition or the beneficiary’s application for admission as an L nonimmigrant. See 8 CFR 214.2(l)(16).

[^ 9] See 8 CFR 214.2(l)(1)(ii)(L)(3).

[^ 10] See Pub. L. 106-95 (PDF), 113 Stat. 1312 (November 12, 1999).

[^ 11] See Division J, Title IV of the Consolidated Appropriations Act of 2005, Pub. L. 108-447 (PDF), 118 Stat. 2813, 3351 (December 8, 2004).

[^ 12] For more information on the current L-1 filing fee, see the H and L Filing Fees for Form I-129, Petition for a Nonimmigrant Worker webpage.

[^ 13] See Title IV of Pub. L. 111-230 (PDF), 124 Stat. 2485, 2487 (August 13, 2010).

[^ 14] See James Zadroga 9/11 Health and Compensation Act of 2010, Pub. L. 111-347 (PDF), 124 Stat. 3623 (January 2, 2011).

[^ 15] See the Consolidated Appropriations Act of 2016, Pub. L. 114-113 (PDF), 129 Stat. 2242 (December 18, 2015).

[^ 16] For comprehensive information on relevant fees, see the Filing Fees webpage.