L-1B Visa News

L-1B Visa Denials

The National Foundation of American Policy reported last week that the denial rate for L-1B petitions has reached a historic high of 35% for Fiscal Year 2014. This is an increase from 30% in FY 2012 and 34% in Fiscal Year 2013. While those numbers seem consistent, 35% is a stark contrast from the 6% denial rate from FY 2006.

The L-1B visa is an opportunity for multinational companies to transfer high-skilled employees from their overseas locations to the United States. There are certain requirements that must be met. The employee (1) must have been employed for a qualifying organization abroad for one continuous year in the past three years and (2) be seeking to perform a specialized knowledge position with the qualifying organization in the United States. The employer (1) must have the requisite relationship with the foreign company and (2) be engaged in or it must engage in business as a US employer with another country through the qualifying organization. The visa is an important tool for companies that are seeking US locations and would like to fortify their US operations with institutional knowledge.

The report contains some shocking statistics. 56% of employees transferring from India were denied between 2012-2014, more than four times the denial rate of 13% for employees from other countries in that time period. Nationals from other countries were also above that 13% rate, but Canadians only had a 4% denial. The increase in denials is especially consternating because there has not been a change in the L-1B regulations.

The White House announced that a guidance memo on L-1B visas will be released this week. L-1B guidance has been mentioned for years and was part of the executive actions announced in November. The guidance memo was released on March 24, 2015.

The Law Offices of Andrew Wood is committed to facilitating job-creating companies and employers who are growing the US economy. L-1 visas are an important aspect of that. In a global economy, we recognize that companies need employment visas to compete globally. Employment-based green cards are notoriously difficult, making non-immigrant visas the practical option. Given that L-1 and H-1B non-immigrant visas are the two practical means that companies have for retaining international nonimmigrant employees, guidance will be timely.