Proposed L Visa Restrictions

The L visa category was created in 1970 and has undergone few changes since that time. The bills currently pending in the House and Senate would make the most significant changes in the program since its inception.

In May 2003 Representative John Mica (R-Florida) introduced H.R. 2154 that would implement the labor condition application system used for H-1B cases. This would include requiring employers to pay at least the prevailing wage to L-1 employees and to maintain a public access file including the labor condition application and data showing that the prevailing wage is being paid. This change would significantly affect L-1 processing because many multinational employers pay workers transferred from foreign offices to the US the salary that they had received abroad plus a stipend for living expenses. For companies transferring workers from countries with lower average wages than the United States, significant cost increases can be expected.

This bill will also restrict the ability of an employer from placing an L-1 worker with another employer if there are “indicia of employment” between the second employer and the L-1 worker.

On July 25, 2003 Senator Christopher Dodd (D-Connecticut) introduced S. 1452, and Representative Nancy Johnson (R-Connecticut) introduced H.R. 2849 - both bills titled the “USA Jobs Protection Act of 2003.”

The Senate Immigration Subcommittee held hearings titled “The L-1 Visa and American Interests in Century Global Economy" on July 29, 2003 to investigate the implications of this new bill and the L-1 program on the US economy.