June 3, 2004

New Bill Calls For L Visa Program Reform

On May 20, 2004, Henry Hyde (R-IL) Chair of the House International Relations Committee introduced an alarming bill “Save American Jobs Through L Visa Reform Act of 2004” to amend the Immigration and Nationality Act regarding the nonimmigrant intracompany transferee visas. Specifically, Henry Hyde(R-IL) proposed the elimination of the “specialized knowledge” basis to obtain a nonimmigrant visa as an intracompany transferee. The bill would only allow intracompany transferee nonimmigrant visas to be available only for managerial and executive positions. Further, Henry Hyde (R-IL) proposes to implement an annual numerical limit on nonimmigrant visas issued to such transferees. Starting with fiscal year 2005, the number of such visas should be limited to 35,000. Henry Hyde (R-IL) also proposed a 7 year limit for admission on nonimmigrant status for intrancompany transferee managers and executives.

The bill requires that in order for companies to use this nonimmigrant visa to transfer managers and executive in the United States, they must pay wages that are at least/ or greater of the wages paid to other employees in the company with similar experience and qualifications. Also, the company has to meet the prevailing wage requirement in the area of employment for the sponsored position.

The bill was referred to the Committee on the Judiciary and to the Committee on Education and the Workforce. The L-1 visa program has come under intense scrutiny due to erroneous beliefs that companies take advantage of loopholes in the immigration system to transfer their employees to the United States, forcing American workers out of their jobs. The L-1 visa program provides multinational companies with a convenient way to shift personnel among their offices. This bill fails to take into consideration that foreign companies which invest in the United States need to bring their key employees, and they count on the L-1 visa category to do that. GT will keep you posted on this piece of legislation and anything further in the L-1 debate.