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07/07/2003 Entry: "Changes to the L-1 Visa on the Horizon?"

The L-1 visa, long overshadowed by the popular and more high-profile H-1B visa, has recently been the subject of attention from the technology industry, Congress, and the BCIS. Changes in L-1 regulations may soon become law, and already, there is anecdotal evidence that it has become more difficult to enter the country with an L-1 visa.

At the core of the issue is fact that the L-1B, unlike the H-1B, does not stipulate any minimum wage requirement for beneficiaries. Critics of the L-1 program contend that companies are bringing technology workers into the U.S., usually on L-1B visas, then contracting these employees out to work for a third-party business. Because L-1B holders do not need to be paid as much as their H-1B counterparts, the outsourcing is often done at a low fee that results in the displacement of American workers.

While some feel that these actions conform to the letter of the L-1 statute, they are seen by many as violating the spirit of the intended use of the visa. There are no statistics available as to the number of U.S.-born workers displaced by lower-cost L-1B holders. According to the "2002 Yearbook of Immigration Statistics" published by the BCIS, 313,699 L-1 visas were issued in FY2002, down about 5% from FY2001's total of 328,480.

In response to some criticism of the L-1 program, Rep. John Mica (R-FL) has introduced legislation that would prohibit the outsourcing of L-1 visa holders, similar to a provision contained in the H-1B visa program. Under this measure, American companies will still be permitted to employ L-1 visa holders. However, those employees can only be transferred from company subsidiaries, not from a third party. This legislation should be helpful in clarifying the existing L-1 statute and closes what many consider to be a loophole in the way the law is put into practical use.

The increased focus on the L-1 visa has also had an effect those attempting to enter the U.S. with this visa. There are reports that border officers have been scrutinizing L-1 holders more closely, and in some cases, those with valid L-1's are being denied entry for dubious reasons.

Be mindful of the current environment when it comes to advising those applying for L-1's, and also take into account that those entering the U.S. with these visas could be subject to additional scrutiny and questioning. Preparing your clients for these contingencies can make the difference between getting them into the country in a timely manner and having to work out issues at the border.

Courtesy: news@visaprep.com

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