L-1 INTRACOMPANY TRANSFEREES for US Subsidiaries

Hiring foreign workers requires a great deal of planning. The increased globalization of markets and business organizations has presented U.S. employers and foreign nationals with a world of challenging issues, strategies, and options.

The most common option that is available to foreign nationals who wish to work temporarily in the United States is the H-1B for professional workers. However, it is important to note that while the H-1B is the most commonly used option, it is far from the only one. In addition to the H-1B, there are many other business and employment-related options. Familiarity with the full spectrum of nonimmigrant business classifications is essential because the need to conduct business in the U.S. and to hire foreign nationals arises in many different contexts. Moreover, certain individuals may meet the requirements for more than one option. However, one option will typically be better suited to an individual’s specific circumstances, and thus all options must be properly compared and assessed, prior to proceeding with a specific option. This article will focus on the L-1 for intracompany transferees.

An L-1 is available to foreign nationals coming to work temporarily in the U.S. for an employer that is related to a company abroad for which the foreign national worked prior to entering the U.S. While there are a number of important requirements to qualify for an L-1, the L-1 offers a number of advantages that make it worth considering over other options. For example, unlike the H-1B, there is no annual limit on the number issued, one may pursue permanent residency (“Green Card”) while in L-1 status, and for many L-1s, there is a corresponding Green Card option that is relatively quick and pain-free.

The first and main requirement for the L-1 is that the foreign national must have been continuously employed abroad for one of the last three years for a parent, affiliate, or subsidiary of a U.S. employer. Any time spent working in the U.S. will not count toward the one year of required employment, though time spent in the U.S. will not be considered to have interrupted the continuity of employment abroad.

Second, the foreign employer and the potential U.S. employer must have a “qualifying relationship.” This qualifying relationship involves common majority ownership, or, where there is less than majority ownership, common control by the same person or entity.

Bennett R. Savitz, Esq.

Savitz Law Offices, P.C