3 foundational factors to understand before exploring L-1
Most L-1 questions come down to three foundational factors. Understanding them early saves considerable time.
Key takeaways
- A qualifying relationship is a relationship between entities, not an ordinary commercial partnership.
- Employment abroad is typically reviewed as continuous work with a qualifying organization.
- The U.S. role must match the classification being requested.
- These three factors are considered together, not in isolation.
1. The relationship between the companies
The first factor is a qualifying relationship between the company abroad and the U.S. entity. In plain terms, this relationship is usually described in the following forms, where applicable definitions are met:
- Parent — the parent company of the other entity.
- Subsidiary — a company owned and controlled to an appropriate degree.
- Affiliate — two entities under common ownership and control.
- Branch — an operating division of the same company at another location.
This differs from two companies that merely have a cooperation agreement, an agency arrangement, or operate in the same industry. Ownership and control should be clarified early, because they affect everything else in the plan.
2. Employment history abroad
The employee generally needs at least one continuous year of employment abroad within the relevant three-year period with a qualifying organization, depending on the facts and applicable rules. This deserves early attention, as it relates to HR records, employment contracts, and how the organization documents work.
3. The role in the United States
The intended U.S. role must match the classification requested: managerial, executive, or specialized knowledge. A generic description such as “responsible for market development” usually does not show which group the role belongs to.
- What decisions will this person make in the United States?
- Who or what function will they manage?
- If specialized knowledge, which product, process, or system of the organization does that knowledge relate to?
The three factors work together
A company with clear ownership but an employee without suitable work history, or a suitable employee whose U.S. role has not been defined, both describe situations that need to be organized before moving forward. These factors form a picture, not a disconnected checklist.
AFG helps companies organize their information around these three factors so they can see where they stand and what to prepare next.
Want to review these three factors for your situation?
This content is general information, not legal advice. All decisions rest with the competent U.S. authorities and depend on the facts of each case.
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