L-1A Visa – Recognizing The Global Role Of Managers

The Administrative Appeals Office (“AAO”) recently issued a decision in a case focusing on the correct interpretation of the L-1A visa requirements for functional managers. In Matter of Z-A-, Inc., the AAO clarified that when determining whether the foreign national will primarily manage an essential function, USCIS must consider all relevant factors, including the foreign national’s role within the wider qualifying international organization. Importantly, USCIS designated this AAO opinion an Adopted Decision, making it a policy guidance binding all USCIS employees.

The L-1A classification allows a foreign business to transfer its executives or managers to the related U.S. office. According to the U.S. immigration law, there are two types of managers: a personnel manager who oversees other professionals and a functional manager who oversees an essential function of the business. Functional manager cases have been difficult to prove, especially for smaller business entities. With small staff in the U.S., it can be a challenge to show that the foreign national would primarily manage an essential function rather than perform it.

In Matter of Z-A- Inc., the foreign parent company had over $900 million in annual sales, while the U.S. office employed only three individuals. The L-1A petition sought to classify the foreign national beneficiary as a functional manager due to his market development duties. USCIS denied the petition based on the small number of employees in the U.S., arguing that the foreign national beneficiary must necessarily be engaged in day-to-day sales and other non-managerial duties. The AAO reversed the initial decision and approved the L-1A petition.

The AAO criticized USCIS for focusing on the number of individuals employed in the U.S. office. The opinion stated that to determine whether the beneficiary’s job duties are primarily managerial in nature, USCIS must consider the totality of the record and weigh all relevant factors, including the petitioner’s organizational structure and the beneficiary’s position within the petitioner’s organization. The decision clarifies that staffing levels alone are not dispositive on whether the beneficiary is a functional manager. USCIS cannot focus on the size of the U.S. business, but rather must analyze the overall needs of the corporate family.

How Can We Help

This new guidance allows us to bolster functional manager cases with binding precedent. It also serves as a reminder to our clients that sound evidence on overall corporate structure is essential for a successful L-1A petition.

Capitol Immigration Law Group PLLC offers a wide range of immigration law services. Please do not hesitate to contact us if our office can be of any assistance or you have any questions or comments. We stand ready to help analyze any time-sensitive cases. We also invite you to subscribe to our free weekly immigration newsletter to receive timely updates on this and related topics.