Recent changes and ongoing scrutiny of the L-1 visa program have brought new challenges for U.S. workers, employers, and foreign professionals. The L-1 visa, which was originally designed to help multinational companies transfer key employees to their U.S. branches, has come under fire for being misused—especially by IT outsourcing firms. This update explains what has changed, who is affected, what actions are required, and what these developments mean for pending and future applications.
Summary of What Changed
The past few years have seen a sharp increase in government attention to the L-1 visa program. Starting in 2024 and continuing into 2025, U.S. Citizenship and Immigration Services (USCIS) and other agencies have stepped up their review of L-1 visa applications. This is mainly due to reports that some IT outsourcing firms have been using the program to bring in large numbers of foreign workers, sometimes by mislabeling their job roles as “managers” or “executives.” These actions have led to legal challenges, policy debates, and new proposals for reform.
Several key developments have shaped the current landscape:
- Increased scrutiny of L-1 visa applications, especially in the IT sector.
- Potential revocation of the 540-day automatic work permit renewal rule for L-1 and H-1B visa holders.
- Expiration of the Edakunni v. Mayorkas settlement, which had allowed faster processing for L-1 dependents.
- Project 2025 and other policy proposals that would tighten employer inspections and slow down hiring processes.
- Executive orders in early 2025 that have made immigration policies stricter, though their direct effect on L-1 visa holders is less clear.
Who Is Affected
The changes and increased enforcement affect several groups:
- U.S. workers, especially in IT and technical fields, who face greater competition from L-1 visa holders.
- IT outsourcing firms and other multinational companies that rely on the L-1 visa program to transfer employees.
- L-1 visa applicants and their families, who may now face longer processing times and more uncertainty.
- Employers who must now meet stricter requirements and may face more government inspections.
Effective Dates
Most of the increased scrutiny and policy changes began in 2024 and have continued into 2025. The expiration of the Edakunni v. Mayorkas settlement occurred in early 2025, and Project 2025 proposals are being discussed for implementation later in the year. Any changes to the 540-day automatic work permit renewal rule are still under review, but employers and workers should prepare for possible changes soon.
Required Actions
If you are an employer, worker, or applicant affected by these changes, here are the steps you should consider:
- Employers should review their use of the L-1 visa program to ensure all applications are accurate and meet the true requirements for managerial or executive roles. Be prepared for possible site visits and audits from USCIS.
- L-1 visa applicants should make sure their job descriptions and supporting documents clearly show that they meet the requirements for the visa category they are applying for.
- Families of L-1 visa holders should plan for possible delays in dependent visa processing, especially now that the Edakunni v. Mayorkas settlement has expired.
- U.S. workers who believe they have been unfairly replaced or discriminated against due to misuse of the L-1 visa program can contact the Equal Employment Opportunity Commission (EEOC) or Department of Labor (DOL) for help.
Implications for Pending Applications
If you have a pending L-1 visa application, you may face longer processing times and more requests for evidence from USCIS. The agency is now looking more closely at whether applicants truly qualify as managers, executives, or specialized knowledge workers. Applications that do not clearly meet these standards are more likely to be delayed or denied.
For dependents (L-2 visa applicants), the end of concurrent processing under the Edakunni v. Mayorkas settlement means that spouses and children may have to wait longer for their visas to be approved. This can affect family unity and the ability of spouses to work in the United States 🇺🇸.
Nature of L-1 Visa Exploitation and Its Impact on U.S. Workers
The L-1 visa program was created to help multinational companies move their top employees—like managers and executives—to their U.S. offices. Unlike the H-1B visa, the L-1 does not have an annual cap and does not require employers to pay a prevailing wage. This made it attractive for companies that wanted to move workers quickly and in large numbers.
However, some IT outsourcing firms have taken advantage of these features. They have been accused of misrepresenting regular employees as “managers” to qualify for the L-1A visa, which is meant for higher-level staff. For example, Tata Consultancy Services (TCS) received over 6,500 L-1A approvals between 2019 and 2023, far more than other companies, even though they reportedly have fewer actual managers in the United States 🇺🇸.
This misuse has led to:
- Legal battles and whistleblower lawsuits against companies accused of visa fraud.
- Job displacement for U.S. workers, who are sometimes replaced by lower-paid L-1 visa holders.
- Wage suppression, as the influx of foreign workers can push down salaries and reduce bargaining power for U.S. professionals.
- Reduced hiring opportunities for U.S. workers, as companies may prefer to use L-1 visa holders for cost or convenience.
Quantitative Data and Recent Trends
The scale of the problem is clear from recent data:
- Nearly 40% of all H-1B visas in 2022 went to just 30 employers, most of which are IT outsourcing firms. These same companies are also heavy users of the L-1 visa program.
- The L-1 visa program has no annual cap, making it easier for companies to bring in large numbers of workers compared to the H-1B program, which uses a lottery system and has strict limits.
- The result is a significant influx of foreign workers in roles that may not truly meet the original intent of the L-1 visa, putting U.S. workers at a disadvantage.
Policy and Regulatory Developments in 2024-2025
The government has responded to these concerns with several policy changes and proposals:
- USCIS and other agencies have increased scrutiny of L-1 visa applications, especially for IT outsourcing firms. This means more detailed reviews and a higher chance of requests for evidence or denials.
- There is discussion about ending the 540-day automatic work permit renewal rule for L-1 and H-1B visa holders. If this happens, visa holders may face gaps in work authorization, affecting job stability.
- The Edakunni v. Mayorkas settlement, which allowed for faster, concurrent processing of L-1 and L-2 applications, expired in early 2025. This has led to longer wait times for dependents.
- Project 2025 is a policy initiative that proposes stricter employer inspections and more detailed vetting of visa applications. If adopted, this could slow down the hiring process and make it harder for companies to use the L-1 visa program.
- Executive orders in early 2025 have made immigration policies stricter overall, though the direct impact on L-1 visa holders is less clear at this time.
Practical Effects on U.S. Workers
The exploitation of the L-1 visa program has several real-world effects on U.S. workers:
- Job displacement: U.S. workers, especially in IT and technical roles, may lose their jobs to L-1 visa holders who are paid less and have fewer protections.
- Wage suppression: The large number of foreign workers brought in under the L-1 program can push down wages for U.S. professionals.
- Reduced hiring opportunities: Companies may choose L-1 visa holders over U.S. workers because of cost savings or the flexibility of the program.
- Legal and political pushback: There is growing support for reforming the L-1 visa program to better protect U.S. workers. This includes calls for stricter definitions of managerial roles and enforcement of wage standards.
Stakeholders and Perspectives
Different groups have different views on the L-1 visa program:
- U.S. workers and unions are worried about job losses, lower wages, and unfair competition. They are calling for reforms and better enforcement of existing rules.
- IT outsourcing companies argue that the L-1 visa is necessary for global business, but they face criticism and legal challenges over alleged abuse.
- Government agencies like USCIS and the Department of Labor are trying to balance the needs of businesses with the need to protect U.S. workers. They have increased enforcement and are considering new rules.
- Policy advocates and experts want to see reforms to the L-1 visa program, including possible caps and stricter eligibility requirements.
- Whistleblowers and legal advocates are exposing fraudulent practices and pushing for companies to be held accountable.
Background and Historical Context
The L-1 visa program was set up to help multinational companies move key staff to their U.S. offices. Over time, however, some companies—especially in the IT sector—have used the program to get around the stricter rules of the H-1B visa. This has led to high-profile cases where hundreds of U.S. IT workers were replaced by visa holders, sparking protests and calls for change.
Future Outlook and Pending Changes
Looking ahead, several changes are likely:
- Continued regulatory tightening: USCIS is expected to keep reviewing L-1 visa applications more closely, especially for IT outsourcing firms.
- Possible legislative reforms: Congress may consider adding caps or stricter definitions for L-1 visa eligibility to prevent misuse.
- Processing delays: The end of the Edakunni v. Mayorkas settlement means longer wait times for L-1 dependents.
- Increased compliance burdens: Project 2025 and similar initiatives may require employers to go through more inspections and paperwork, which could reduce the number of L-1 visa workers but also slow down hiring.
Additional Resources and Contacts
If you need more information or want to report concerns, here are some helpful resources:
- The USCIS Policy Manual provides the latest official guidance on L-1 visa processing and policy changes. You can find updates and detailed information on the USCIS L-1 visa page.
- The Department of Labor (DOL) oversees wage and labor standards for visa programs.
- The Equal Employment Opportunity Commission (EEOC) handles complaints about discrimination or unfair labor practices involving visa holders.
- Advocacy groups like AFL-CIO and FAIR offer analysis and support for workers affected by visa program abuses.
Actionable Takeaways
- Employers should double-check that all L-1 visa applications are accurate and meet the true requirements for managerial or executive roles. Prepare for possible audits and stricter enforcement.
- L-1 visa applicants and their families should expect longer processing times and be ready to provide extra documentation if asked.
- U.S. workers who feel they have been unfairly replaced or discriminated against can contact the EEOC or DOL for help.
- Stay informed by checking the USCIS website for the latest updates on L-1 visa policies and procedures.
As reported by VisaVerge.com, the ongoing scrutiny and proposed reforms of the L-1 visa program reflect a growing effort to protect U.S. workers from unfair job competition and wage suppression. While these changes may make it harder for some companies to use the L-1 visa program, they are intended to ensure that the program serves its original purpose—helping genuine managers and executives transfer within multinational companies—without harming the domestic workforce.
By staying aware of these developments and taking the right steps, employers, workers, and applicants can better prepare for the changes ahead and protect their interests in a shifting immigration landscape.
Learn Today
L-1 Visa → A U.S. visa allowing multinational companies to transfer managers or specialized workers internally.
IT Outsourcing Firms → Companies that contract out IT services, sometimes misusing L-1 visas to import workers.
USCIS → United States Citizenship and Immigration Services, agency overseeing visa applications and enforcement.
Edakunni v. Mayorkas → A legal settlement allowing faster processing of L-1 dependent visas, expired in 2025.
540-day Work Permit → A rule allowing automatic work permit renewals for L-1 and H-1B visa holders, under review.
This Article in a Nutshell
The L-1 visa program faces intensified government scrutiny in 2024-2025 amid misuse by IT firms. Changes affect workers, employers, and families with longer processing and stricter requirements to protect U.S. jobs and ensure genuine managerial transfers within multinational companies.
— By VisaVerge.com
