July 18, 2003. Two bills have been introduced in the last two months to severely restrict the usage of the L-1 nonimmigrant visa classification. The L-1 classification applies to intracompany transferees who have been employed outside of the U.S. for at least one year (or six months for Blanket L applications) at an employer’s international operations and is coming to the U.S. to work in a managerial, executive, or specialized knowledge capacity. The bills stem from perceived abuses of the classification by companies bringing over foreign employees under the L-1 classification to perform contract work at U.S. companies.

On July 15, Representative De Lauro (D-CT) introduced legislation, H.R. 2702, to place restrictive limits on the L-1 visa, including a 35,000 per year cap (similar to the 65,000 per year H-1B cap), wage attestation requirements to be administered by the Department of Labor, and the abolition of the Blanket L visa program. The DeLauro bill follows on the heels of H.R. 2154 introduced by John Mica (R-FL), on May 19. The Mica bill would prevent employers from placing a nonimmigrant intracompany transferee under the complete control of another employer and would require Department of Labor attestations to that effect.

While Congress is not expected to take prompt action on either bill, they are both reflective of recent concerns over the L-1 program. Berry, Appleman & Leiden is continuing to monitor these and other Congressional developments to ensure that our clients’ interests are protected.