Overview of L-1 Visa Category
Posted Mar 08, 2002; updated Aug 24, 2002
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For readers of the MurthyBulletin and MurthyDotCom, we periodically provide an overview of one of the nonimmigrant categories. This week we present the L-1 visa category.
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As some of our readers may be aware, there are two possible procedures for obtaining L-1 status. These are the individual and the "blanket" petitions, both filed with the USCIS. We will discuss the individual L-1 process and address the blanket L-1 process in a later Bulletin edition.
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General Definition and Requirements  
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The L-1 visa category is for an “intra-company transferee.” An "intra-company transferee is an employee of a company abroad who is to be transferred to a U.S. affiliate, parent, or subsidiary entity on a temporary work basis. In order to be eligible, the employee must have worked for the company abroad for one continuous year out of the preceding three years. The employee must be coming to the U.S. in order to continue working for the same employer or the affiliate, subsidiary, or parent company.
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Qualifying Employment Position  
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To be eligible for the L-1 category, the employee must be offered a position in the U.S. as either a "Manager," "Executive" (referred to as an L1A), or a person with "Specialized Knowledge" (referred to as an L1B). These defined terms are discussed in greater detail below. Demonstrating that the offered, U.S. position and the prior, foreign position fit within these categories is vital to the success of the L-1 petition.
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It is not necessary for the employee to have held the same position abroad as the intended job in the U.S., as long as s/he held the job either as a manager, executive, or worked with specialized knowledge. For example, a person who was in a specialized knowledge position abroad could be offered a position in the U.S. as an executive under the L-1 category. However, one who worked in a routine, clerical position could not qualify, even if offered a position within one of the above categories.
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An L1B worker in the specialized knowledge category can only remain up to 5 years in the U.S. as opposed to the 7 years allowed to those who are executives or managers on the L1A.
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Payment of Salary  
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There is no prevailing wage requirement for the L-1 category. That is, L-1s can be paid any agreed-upon salary, without having to meet U.S. government standards. The salary offered is, instead, considered from a common-sense point of view by INS in the context of whether it seems to be consistent with an offer of a specialized, managerial, or executive job. Payment can be by the U.S. entity or the foreign entity.
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Relationship Between Foreign and U.S. Entities 
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It is necessary to document both the existence of the two business entities (domestic and foreign) and the necessary "qualifying relationship" between the foreign and U.S. companies. Key corporate documents are, therefore, needed with the application. The ‘qualifying relationship’ between the foreign and U.S. companies means that the relationship is either one of parent / subsidiary or affiliate. While the L-1 can be used for new companies, these L-1s will only be granted for one year. It is necessary to show proof of physical premises in the U.S., and, for new companies, proof that, after the first year, the company will have the need for a full-time executive / manager.
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Qualifying Positions 
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The definitions of the required categories of "manager," "executive," and "person with specialized knowledge" are narrowly defined for L-1 immigration purposes.
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Managers are limited to higher-level managers. First-line level managers are not eligible for L-1 status, unless they fit within the "specialized knowledge" category. The qualifying L-1 Manager must:

a) Personally manage the organization, department, subdivision, or function or component.
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b) Supervise and control work of other supervisory, professional, or managerial employees OR manage an essential function within the organization, department, or subdivision. Note that those who manage a function do not necessarily need to be managing other people.
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c) Have authority to hire and fire or recommend personnel actions or, if there is no direct personnel supervision, function at a senior level and exercise discretion over day-to-day operations of the activity or function.