Mastering the L-1 visa: How the L-1 Blanket streamlines workforce transfers.
By: Justin Scott Kadich, Senior Immigration Attorney, Go Global Immigration PLLC.
Perhaps the most powerful tool for mid-scale and large companies to quickly and efficiently transfer their employees to work in the United States is the L-1 visa. The L-1 visa is specifically designed for US corporations that have a multi-national workforce and seek to transfer their existing employees to the United States.
First created by Congress in 1970, the Immigration Act of 1990 greatly expanded the L-1 visa, made it dual intent (non-immigrant and immigrant), and split the act into two categories, L-1A (Manager/Executive) and L-1B (Specialized Knowledge).
Most impactful, however, is the L-1 Blanket which offers faster and more efficient processing while reducing the complexity and the high cost of individual L-1 petitions. The primary purpose of this expansion was to streamline U.S. immigration options for businesses with a global presence, allowing them to more easily transfer qualified foreign workers to the U.S.
The L-1 visa is divided into two distinct categories based on the worker’s role in and outside of the United States:
L-1A Visa: This category is reserved for managers and executives. Employees who qualify for the L-1A visa must be responsible for managing the organization or a significant component of it, either in a managerial or executive role.
L-1B Visa: This category is for employees with “specialized knowledge.” These workers must possess advanced knowledge of the company’s products, services, processes, or procedures that is not commonly held by others in the industry. L-1B employees are critical to ensuring the company’s competitive advantage by bringing unique expertise to U.S. operations.
The L-1 Blanket petition is directly related to both categories. It allows multinational companies to bypass the need to file an individual L-1 petition for each employee. Instead, once the Blanket petition is approved, it covers a range of potential transfers under both L-1A and L-1B categories. This makes it an invaluable tool for companies that frequently transfer employees to the US for managerial or specialized knowledge roles, offering flexibility and a significant reduction in processing times.
What is an L-1 Blanket?
The L-1 Blanket petition was developed to streamline and expedite the process of multinational companies moving their existing employees to the United States.
Rather than requiring a U.S. employer to file a petition every time they wish to transfer one of their foreign workers, the employer may be able to rely on the Blanket approval notice to bypass the U.S. Citizenship and Immigration Services (USCIS) filing, which typically takes at least four months under normal processing.
Therefore, by utilizing the Blanket approval, the foreign worker can immediately proceed with booking an L-1 visa appointment at the U.S. consulate, rather than taking months to prepare, file, and wait for the approval notice from USCIS to proceed. There are also cost savings as substantial filing and legal fees are avoided by not having to file the individual petition with USCIS.
What are the eligibility requirements for L-1 Blanket petition?
The following are the eligibility requirements for an L-1 Blanket petition:
The petitioner and each of the entities included are engaged in commercial trade or services;
The petitioner has an office in the United States that has been doing business for one year or more;
The petitioner has three or more domestic and foreign branches, subsidiaries, or affiliates.
In addition to the above, the petitioner must also meet one of the following conditions:
The petitioner and the other qualifying organizations have obtained approval of petitions for at least 10 L-1A or L-1B workers during the previous 12 months; or
The petitioner has U.S. subsidiaries or affiliates with combined annual sales of at least $25 million; or
The petitioner has a U.S. work force of at least 1,000 employees.
How to apply for an L-1 Blanket.
To begin the process, the U.S. company must file Form I-129S, also known as the Nonimmigrant Petition Based on Blanket L Petition, with USCIS. This form serves as the central document in the L-1 Blanket petition process. Below is a detailed breakdown of the steps involved:
List of qualifying entities
The L-1 Blanket petition must include a detailed list of all the foreign and U.S. entities that are part of the multinational company’s structure. This includes all branches, subsidiaries, and affiliates that are eligible to transfer employees under the Blanket petition. These entities must have a qualifying relationship with the U.S. petitioning company, such as being a parent company, subsidiary, or affiliate.
Supporting documentation
The petition must be accompanied by several critical documents that demonstrate the company’s eligibility for the Blanket petition. These include:
Articles of Incorporation: These documents establish the legal formation of the company in both the US and foreign jurisdictions.
Annual reports: Financial and operational data presented in annual reports help to demonstrate the ongoing business activities and financial stability of the company.
SEC Form 10-K (if applicable): For publicly traded companies, this form is filed with the Securities and Exchange Commission (SEC) and provides a comprehensive overview of the company’s business, risk factors, financial performance, and more.
Detailed organizational chart: The chart should clearly outline the structure of both the U.S. and foreign entities, indicating the relationships between them, and ensuring that all entities meet the qualification criteria under U.S. immigration law.
Eligibility documentation
To qualify for the L-1 Blanket, the petitioner must provide evidence that they meet the specific eligibility requirements as outlined above.
Corporate federal tax returns
U.S. federal tax returns for the petitioning company may also be required. These documents provide clear evidence of the company’s operations in the US and can serve to verify the company’s compliance with U.S. tax laws, thereby reinforcing the legitimacy of the Blanket petition.
Additional corporate documentation
Depending on the specifics of the company’s operations, additional documents may be necessary to demonstrate the company’s qualifications. This could include audited financial statements, records of previous L-1 visa approvals, and agreements or contracts that verify the relationships between the U.S. and foreign entities.
Approval process and timelines for L-1 Blanket petitions
Once the Blanket petition is filed with USCIS, the processing time can vary, though it typically takes several months. However, once approved, the L-1 Blanket petition remains valid for several years, during which time the company can continue to transfer employees without needing to file individual L-1 petitions.
Upon approval, the company receives a Blanket L Approval Notice, which allows eligible employees to proceed directly to a U.S. consulate or embassy in their home country to apply for their L-1 visa without waiting for a separate USCIS petition approval for each transfer.
Consular processing under L-1 Blankets
After receiving the Blanket L Approval Notice, employees must schedule a visa appointment at the nearest U.S. consulate or embassy. At this appointment, they will be required to submit Form I-129S along with other relevant documents, such as their passport, proof of employment, and evidence of their qualifications under the L-1A or L-1B visa category.
Pitfalls and common errors made on L-1 Blanket Petitions
It’s essential to ensure that the company’s organizational structure and financials are clearly documented. Mistakes in listing eligible entities, incomplete supporting documents, or inconsistencies between financial reports and operational claims can lead to delays or even denials.
Another common issue is not adequately demonstrating the employee’s role within the company. For L-1A petitions, it’s critical to show that the employee holds a managerial or executive position, while for L-1B, it’s essential to detail the employee’s specialized knowledge in terms that make it clear to adjudicators why this knowledge is unique and critical to the business.
L-1 Individual vs. L-1 Blanket petitions: Key differences and when to use each.
It’s important to note that both options serve the same goal: Enabling companies to bring qualified intracompany transferees into the US to work in managerial, executive, or specialized knowledge positions. However, the choice between an individual petition and a Blanket petition can significantly impact the efficiency, cost, and predictability of the process.
L-1 Individual Petition
The L-1 Individual petition is the traditional route for transferring foreign employees to the U.S. It involves submitting a separate petition to USCIS for each employee being transferred. This process requires the company to prove the eligibility of both the company and the employee for each petition, and it follows a more detailed review by USCIS.
Who should use it? The L-1 Individual petition is generally used by companies that may not meet the eligibility requirements for the L-1 Blanket, such as smaller organizations that do not have three or more foreign branches or subsidiaries or companies that do not meet the minimum sales or workforce thresholds. It’s also suitable for companies that only plan to transfer a few employees occasionally, as the administrative burden is more manageable for a small number of petitions.
Processing time: The L-1 Individual petition can take several months to process. Companies often choose to pay for premium processing to expedite the decision-making process, but this adds to the cost.
Costs: With each individual petition, there are associated legal fees, USCIS filing fees, and potential premium processing fees, making this a more expensive option when transferring multiple employees over time.
Flexibility: While the L-1 Individual petition is a reliable option, it doesn’t offer the same level of flexibility as the Blanket petition. Each new employee transfer requires its own application and approval process, which can make long-term workforce planning more challenging.
L-1 Blanket Petition
In contrast, the L-1 Blanket petition allows larger multinational companies that meet specific requirements to streamline the visa process for transferring employees. Once a Blanket petition is approved by USCIS, the company can transfer employees under the Blanket without filing a new petition for each individual worker. Instead, the employee can proceed directly to the U.S. consulate to apply for their visa.
Who should use it? The L-1 Blanket petition is ideal for large multinational companies that frequently transfer employees between international offices. If a company has ongoing or large-scale needs to move its workforce to the U.S., the Blanket petition significantly reduces the time and administrative workload involved. To qualify, a company must meet certain criteria, such as having at least three foreign branches or affiliates, a U.S. workforce of at least 1,000 employees, or combined annual sales of at least $25 million.
Processing time: Once the Blanket petition is approved, individual employees can skip the USCIS filing and proceed directly to the visa application at a U.S. consulate. This dramatically reduces the time it takes to transfer employees compared to the individual petition process, which can take several months per petition.
Costs: The L-1 Blanket petition offers substantial cost savings for companies transferring many employees. By avoiding the need to file individual petitions with USCIS, companies save on filing fees, legal costs, and potential premium processing fees. These savings add up, especially for businesses that frequently move staff between countries.
Flexibility: The L-1 Blanket petition provides significant flexibility. It allows a company to plan future transfers with greater ease, knowing that the petition is already in place and that employees can be transferred without the time-consuming need to file a new petition. This predictability is particularly beneficial for long-term business planning and helps companies respond quickly to business needs in the U.S.
Key Advantages of the L-1 Blanket Petition over the Individual Petition
Time savings: Once the Blanket petition is approved, employees can skip the USCIS filing step and go straight to the consulate for visa processing. This can save months compared to the individual petition process, where each petition requires separate approval from USCIS.
Cost efficiency: By avoiding the need to file a new petition for each transfer, companies save significantly on filing fees, legal costs, and potential premium processing charges. These savings become especially noticeable for companies making frequent transfers.
Lower denial rates: Historically, L-1 Blanket petitions tend to have lower denial rates compared to individual petitions. This is partly because the Blanket approval covers the eligibility of the company and the employee at a high level, reducing the likelihood of denial at the individual petition level.
When the L-1 Individual Petition May Be Preferable
While the L-1 Blanket petition offers numerous advantages, there are situations where the L-1 Individual petition may be a better option. For example:
If the company does not meet the eligibility requirements: Smaller companies or those without a significant presence in the US may not qualify for the L-1 Blanket petition.
For unique or special cases: If an employee’s role is highly specialized or does not fit neatly into the categories defined under the Blanket petition, an L-1 Individual petition may offer more flexibility for presenting their case.
