Immigration Client Alert - H-1B And L-1 Visa Reform

Two new immigration laws affecting the L-1 and H-1B visa categories were recently passed by Congress. The House of Representatives is expected to pass a final technical amendment to the legislation on December 6, 2004, before sending the bill to the President for his signature. Employers and foreign national employees should be aware of the significant changes that both laws contain. The first law is the "L-1 Visa (Intracompany Transferee) Reform Act of 2004." It addresses the perceived problem of abuse of the L-1 visa category. Many, including Senator Saxby Chambliss who proposed the Act, believe that some multi-national companies are abusing the L-1 category by bringing in professional workers on L-1 visas and then outsourcing those workers to third-party companies. The Act attempts to close that loophole. The second law is the "H-1B Visa Reform Act of 2004." It addresses several issues including the prevailing wage, training fees, and limited cap relief. The following is a summary