Guide To Understanding The L-1 Vs H1-B Visa

It is well-known that the visa application process—especially the American work visa application process—is a major hurdle. However, thousands of people decide to apply for a visa every year, hoping for a better future ahead of them. Applicants often do not decide between the L-1 and the.

H1-B visas because they are the most popular work visas in the United States. Regardless, both visa types receive a lot of applications every year. Employers use both the L-1 and the H1-B visa to employ non-citizens for work purposes in the US.

The L-1 visa is used for work management or executive positions, while the H1-B visa is generally used for specialized jobs. Because of the similarities between the two visa types, visa holders may wonder which one to apply for. Do you want to apply for an L-1 visa or H1-B visa?

Every year, thousands of immigrants and non-immigrants get confused when applying for an L-1 or H1-B visa. L-1 visas and H1-B visas promise growth and success, but how do you decide which one is right for you when faced with the L-1 vs. H1-B visa option?

Well, don’t worry. This post will explain everything you need to know about L-1 visas and H1-B visas to make the right decision.

Overview of the L-1 visa

The L-1 visa, also known as an intracompany transfer visa, is issued to foreign nationals who have worked at a branch of an American company or its subsidiary. It can also be issued to multinational companies with established branches in the United States. Unlike H1-B visas, L-1 visas are issued to managers, executives, or specialized occupations.

The length of validity of your L-1 visa can vary from 3 months to 7 years, depending on many factors. The L-1 visa is divided into two sub-categories: L-1A (for managers and executives) and L-1B (for those with specialized knowledge). Most of the requirements and procedures for the L-1 visa apply to both sub-categories.

However, the L-1A visa and L-1B visa have some key differences in terms of length of stay and the process for applying for a green card.

Overview of the H1-B visa

H1-B visas are one of the most commonly used nonimmigrant visa types for the employment of foreign workers. H1-B is a subcategory of H visas. Companies use H1-B visas to employ foreign workers with specific knowledge.

In addition to issuing the visa, the H1-B visa holders can get their dependent spouse’s H-4 Employment Authorization Documents (EAD). To be eligible for an H1-B visa, you must meet the following:

1. You must have a bachelor’s degree or equivalent in your field.
2. You must have deep or special knowledge of your field.
3. The employer must be able to demonstrate that workers in the US could not have filled the position.

Generally, the H1-B visa lasts for three years and can be extended for an additional three years for a total of six years. H1-B visas are among the most popular work visas because of their flexibility and the possibility of permanent US residency.

Comparing the L-1 vs H1-B visa

The L-1 and H1-B visas are both work visas. They are similar in some respects but are different in several areas such as:

1. The goal of the visa.

The goal of the L-1 visa and the H1-B visa are different. For example, the purpose of L-1 is to transfer employees from the company’s foreign branch to the United States. However, the goal of the H1-B visa is to employ foreign workers in the United States. A quick example will show this difference.

For instance, if a company in India wants to open a branch in the United States, an L-1 visa would be appropriate. This will help transfer workers from the office in India to the new branch in the US. However, if the US branch of the company wants to hire a foreign employee who is not already a company worker in India, the H1-B visa is more suitable.

2. The sponsor of the visa.

Only companies with offices outside the US can apply for the L-1 visa. Foreign companies with offices in the US and abroad can apply to transfer a foreign worker to their US office.

On the other hand, US-based companies with no office abroad can sponsor a foreign worker for an H1-B visa. Once approved, the H1-B visa holder can only work for that company or employer unless they file for an H1-B transfer.

3. Employer’s criteria to get the visa.

This is another difference in the L-1 vs H1-B visa consideration. An L-1 visa is issued to an employer who meets certain criteria. The employer must be an international corporation with a branch in the United States or a new branch opening in the United States.

The employee must have worked for the employer for a continuous period of at least three years immediately prior to the employee’s entry into the United States. An H1-B visa allows the employer to run a small business or company exclusively based in the USA.

No prior work is required with the H1-B visa holder. If the company operates solely in the United States, hiring employees using the L-1 visa is prohibited.

4. School criteria.

The L-1 visa doesn’t require an education or degree, and the applicant’s specialized knowledge doesn’t need to be specific to a particular field. On the other hand, H1-B applicants are required to have a bachelor’s degree or higher and specialized knowledge in the field.

In some cases, the hands-on experience requirement may replace the educational requirement. You must have a relevant degree or work experience to be eligible for an H1-B visa.

5. The period you can stay in the US.

The length of stay depends on the subcategory: L-1A or L-1B. L-1A visa holders can stay in the US for a maximum of 7 years, and L-1 B visa holders can stay for a maximum of 5 years. They can apply for a 2-year extension for both visa categories.

However, H1-B visas allow holders to stay in the United States for a maximum of 6 years. On expiry of the first three years, they can apply for a 3-year extension.

6. The visa cap.

The visa cap is the maximum number of visas issued by the US Citizenship and Immigration Services (USCIS) in a single fiscal year. The USCIS does not cap the number of total L-1 visas it will issue, so any applicant can apply for an L-1 visa and receive one.

However, the USCIS sets a visa cap for H1-B visas each year. This year, the cap is set at 65,000 for employees and 20,000 for students pursuing graduate degrees. If more than 65,000 people apply, USCIS will hold a visa petition draw.

7. Blanket petition.

The benefit of a blanket petition is that it reduces the amount of time it takes to process a visa. This is because employers do not have to prove eligibility each time they wish to sponsor an employee.

There is no blanket petition for an H1-B visa. However, there is a blanket petition for an L-1 visa. If the employer has an L-1 visa petition approved by the USCIS, then no processing is required for each individual case.

8. Changing employers.

This is another critical difference in the consideration of L-1 vs H1-B visas. L-1 employees cannot move to another company while staying on an L-1 visa. The new employer must file an L1 visa transfer petition for the employee to transfer companies.

On the other hand, H1-B employees can move to another employer while staying on an H1-B visa. They do not need to get permission from their former employer, but they are required to enter into contractual agreements and comply with non-competition laws. The new employer of the H1-B visa holders must file an H1-B visa transfer petition with USCIS.

9. Prevailing wage consideration.

H1-B visas are issued to an employer who pays the prevailing wage to an employee working in that particular area. This is done to ensure that the wage paid to foreign workers is consistent with the market and that the employer is not bringing an employee to the United States at a wage lower than what other workers in the same job position are making.

For L-1 visas, there is no prevailing wage requirement. The employer has the freedom to determine the wage of the employee.

10. Labor condition application.

Companies that sponsor an L-1 visa are not required to submit a labor condition application, showing that there are insufficient local workers to fill the position. On the other hand, employers who sponsor an H1-B employee must submit a labor condition application showing that there are not enough eligible workers in the US to fill the position.

The similarities

There are some similarities to note when considering the L-1 vs H1-B visa. Some of these similarities are:

1. The advantage to the dependents of visa holders is that

An L-2 visa allows spouses and children of an L-1 visa holder to travel to the United States. An L-2 visa holder can apply for an Employment Authorization Document (EAD) and work in the United States. Also, an H-4 visa allows an H1-B spouse and children to travel to the United States. They can also get an EAD to work in the United States.

2. Dual intent.

Both the L1 and the H1B are dual intent visas. This means these visa holders do not need to prove ties to their country of origin and may intend to immigrate to the United States to apply for permanent residency later.

L-1 vs. H1-B visa: which is better?

The H1-B and L-1 visas are distinct from each other. They both allow skilled professionals to work legally in the US. The decision between the two visa types is based on your situation, career objectives, and work type. Consider the following factors before making your decision:

1. Eligibility requirements.
2. Length of stay.
3. Dual intent provisions.
4. Company sponsorship.

Get help!

Deciding between an L-1 and an H1-B work visa is one of the biggest challenges in the immigration process. Although these visas appear similar, each has many advantages. Hence, you need to be very cautious when deciding which type to apply for. If you are looking for a skilled immigration lawyer to assist you in this process, contact us today.

We can help you save time, money, and energy. At Gehi and Associates, our immigration lawyers have many years of experience assisting clients with similar issues. We work closely with our clients to ensure everything is done properly the first time. We will guide you to make the right choices from the beginning of your case to the end. Call us today!