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Updated on April 25, 2005 |
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Introduction
Section 101(a)(15) of the United States Immigration and Nationality Act (INA) provides for 70 distinct non-immigrant visas categories. Each category is known by the letter of the subsection that it is defined by. The different categories range from foreign students (section F-1) to tourists (B-2) to temporary agricultural workers (H-2A) and business people (B-1). Workers transferred by their international companies into the United States are done so by the L-1 visa. L-2 visas are given to immediate family members of L-1 transferees. L-1 and L-2 visas make up the L category of visas.
L-1 Background
The L-1 visa was created in 1970 to easily allow executives of multi-national corporations to be transferred in and out of the United States. The L-1 was categorized as a non-immigrant visa because most of the petitioners were high-ranking executives with an expectation to be transferred out of the United States within a few years. Additionally, workers were required to have worked for that company for at least one year.
In 1990, Congress placed a seven-year limit on L-1 visa holders who are corporate executives and a five-year limit on L-1 visa holders who are managers who have "specialized product knowledge". Additionally, the time requirement for having previously worked for that corporation was lowered from one year to six months.
L-1 Trends
Over the past two decades, the United States has increased the number of L visas (both L-1 and L-2) it issues by three times. In fiscal year 2001 (year ending September, 2001), the United States issued 120,538 visas. As of July 24, 2003, there had been 86,877 L visas issued. Last year, L-1 visas comprised just under 0.02% of all visas issued.
India applies for and receives the most L-1 visas annually, with 24.4% of last year's L-1 visas going to aliens from India. Japan (12.6%) and the UK (11.3%) follow, although Canadian intra-company transfers are not required to have an L visa.
Because there are no caps on the number of L-1 visas that can be given annually, and because there are no "prevailing wage" laws within the L-1 statute, many critics of the visa have attacked it as a way for companies to hire more H-1B visa employees without the burdens of the H-1B program. With the reversion of the H-1B visa to the lower cap (65,000 annually) that came into effect in October, 2003, many analysts expect L-1 visa applications to rise considerably.
Additionally, recent Free Trade Agreements (FTAs) have included provisions to compel signatory nations to waive intra-company transfer visas. It is because of Canada's participation within the North American Free Trade Agreement (NAFTA) that Canadian transfers do not need visas. The recently signed Singapore and Chile FTAs both contain similar provisions.
Legislation
There are three bills before Congress that would significantly impact L-1 visas and how they function. The first is the "USA Jobs Protection Act of 2003) (S. 1452/H.R. 2849). This bill would, among other reforms, reduce the time an L-1 visa holder could spend in the United States to just two years. Additionally, it would add a fee for the processing of the visa application, similar to the H-1B visa fee. Lastly, the bill would require that companies that apply for L-1 visas certify that they have not laid off an American worker and that they have made a good faith effort to hire from the domestic labor market.
S. 1452 was introduced by Senator Chris Dodd (D-CT). The bill has no other cosponsors, and was referred to the Senate Judiciary Committee, where it has not had a hearing. H.R. 2849 was introduced by Congresswoman Nancy Johnson (R-CT). Her bill has 28 cosponsors, and was referred to the House Judiciary Committee's Subcommittee on Immigration, Border Security, and Claims. It has not had a committee hearing.
The second piece of legislation is Representative Rosa DeLauro's "L-1 Nonimmigrant Reform Act" (H.R. 2702), and it too would add many conditions to the L-1 visa that are found on the H-1B visa. The bill would require that employers of L-1 visa holders certify that they are offering the prevailing wage for the job and no American workers have been laid off within 180 days. Finally, the bill requires that there is no strike or lockout at the place of employment when an L-1 application is filed, nor is there any adverse effects on other employees. Her bill has 21 cosponsors, and was referred to the House Judiciary Committee's Subcommittee on Immigration, Border Security, and Claims. It has not had a committee hearing.
The final bill was introduced by Representative John Mica. H.R. 2154 would amend the INA to prohibit a company from transferring a worker into the United States under an L-1 visa and then placing that worker in another firm. This bill is designed to prohibit the outsourcing or contracting out of L-1 visas. This bill has 19 cosponsors, and was referred to the House Judiciary Committee's Subcommittee on Immigration, Border Security, and Claims. It has not had a committee hearing.
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Copyright © 2001-2004, Indian American Center for
Political Awareness. All rights reserved.
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