The L classification applies to intracompany transferees who, within the three preceding years, have been employed outside of the U.S. continuously for at least one year, and who will be employed by a branch, parent, affiliate, or subsidiary of that same employer in the U.S. in a managerial, executive, or specialized knowledge capacity. The L-1 classification requires clear documentation of the qualifying relationship of ownership and control between the U.S. and foreign office. L-1 candidates abroad who wish to meet the one-year requirement need be aware that U.S. visits are subtracted from the one-year accumulation. If the candidate will require L-1 status to perform work requiring "specialized knowledge" of the company's advanced processes and procedures, the L-1B classification will attach. Managerial and executive candidates will be accorded the L-1A classification.

Certain multinational companies receive L-1 processing under the "Blanket L" program. The pre-employment period for Blanket L applications is also one full year (the qualifying period for Blanket L employers was reduced to six months until June 2006). Once the multinational is approved for the "Blanket L" program, the Immigration Service stage of processing can be eliminated for all managerial and executive candidates. Blanket L processing is also available to specialized knowledge candidates who are also "professionals." The definition of professional is borrowed from the H-1B requirements, requiring a university degree, however candidates without full university degrees can at times benefit from an academic evaluation by professional evaluators.

Initial L-1 visa status may generally be approved for up to three years, and can be extended for up to a total of 7 years maximum stay for an L-1A (manager or executive) or 5 years for an L-1B (specialized knowledge). After the end of the maximum L-1 period of stay in the U.S., the candidate must reside outside of the U.S. for a full year before eligibility for L -1 (or H-1B) status may resume. Spouses and children of L-1 workers are eligible for dependent visas in the L-2 classification. L-2 spouses can apply for employment authorization.

Since June 2005, the law prohibits the issuance of L-1B "specialized knowledge" visas when the U.S. employment is primarily at client sites if (1) the employee will be principally controlled and supervised by the client; or (2) the work does not involve the provision of a product or service that requires specialized knowledge specific to the L-1 sponsoring employer. Thus, the rules still allow L-1 employees to accomplish work at client sites when the employees remain under the L-1 employer's full control and when the employer is implementing its own specialized product or service at that client site.

Employers are responsible for paying a one time Fraud Detection and Prevention fee ($500) for each initial L-1 application.