January 29, 2002

Department of State Issues Guidance to the Field Regarding Corporate Reorganizations

In a January 25, 2002 cable to all diplomatic and consular posts, The State Department reaffirmed its position that a new H-1B petition and H-1B visa are not necessary after corporate reorganizations, in which the new company is a “successor-in-interest.” To prove that the new employer is a “successor-in-interest” to the H-1B petitioner, an employee should provide to the consular officer "appropriate corporate documents," including contracts and other legal instruments containing a description of the restructuring, corporate literature or copies of documents filed with the government of the state of incorporation.

The cable continues by stating that the new entity must maintain the same interests and obligations of the original petitioning employer. Also, the terms and conditions of the applicant's employment at the new corporation must remain the same as those of the original petitioning employer.

If there are changes in the corporate structure, job duties, title, place of employment, or salary, employers and their H-1B workers should contact the Greenberg Traurig Business Immigration Group immediately.