The US L1 visa is a valuable tool for multinational companies looking to deploy specialist talent to US-based operations. It offers many benefits both for the employer, seeking to achieve commercial advantage. It is commonly used by larger firms and recently often by tech firms to transfer employees to existing businesses but can also be used by smaller firms to establish a presence in the US. In addition, L1 employees can gain the right to work in the USA and potentially become eligible for a US Green Card.
However, the L1 route is closely scrutinized. Petitions should evidence the qualifying corporate relationship, one continuous year of qualifying employment abroad within the three years before filing, and that the US role is executive, managerial, or in specialized knowledge capacity. This can be challenging for petitioning companies and employees without a compelling and comprehensive application.
This article looks at common reasons for L1 refusals and what you can do if facing a denied L1 application. Note that L-1A status can be held for up to seven years and L-1B for up to five years, which has strategic implications for long-term planning including later eligibility for immigrant categories such as multinational manager (EB-1C) or PERM routes.
L1 Visa Denial Rate
Recent USCIS data shows L1 denial rates have fallen significantly compared to the higher refusal levels seen earlier in the decade. In the first half of 2025, USCIS records indicated approval rates of around 92.4% for L1A petitions and 92.8% for L1B petitions. This translates to denial rates of roughly 7–8% at the petition stage, a notable improvement from prior years when L1B denials were far more common. Independent analyses of fiscal year data reported L1B denial rates averaging 10.2% in 2024, down from 15.5% in 2023, reflecting a steady trend towards greater consistency in adjudication.
These percentages apply to petitions filed with USCIS and do not account for consular outcomes, such as 221(g) administrative processing or cases returned to USCIS for further review. Denials at the consular stage can vary by location, sector and how the applicant presents the qualifying relationship or job duties. L1A petitions tend to achieve slightly higher approval rates, largely because the legal focus is on executive or managerial authority rather than the more scrutinised “specialized knowledge” test under the L1B category.
Most denials trace back to recurring weaknesses: failure to document a genuine qualifying relationship, incomplete proof of one continuous year of qualifying employment abroad, unclear evidence of executive or managerial duties, or broad, generic claims of specialised knowledge unsupported by company-specific documentation. New office petitions attract additional scrutiny around operational viability, funding and the ability to support a qualifying role within twelve months of approval. Strong, comparative evidence of duties, reporting lines, proprietary processes and credible headcount plans significantly improves approval prospects at both USCIS and consular stages.
In current conditions, a practical benchmark is that around 7–10% of L1 petitions are refused by USCIS. The lower figure reflects L1A trends, while the upper figure reflects L1B outcomes. These numbers represent petition adjudications, not visa issuance rates, which can vary once the case reaches the consulate.
L1 Visa Denied? Next Steps
Start by reading the full decision carefully and listing each ground cited. Pinpoint whether the officer questioned the qualifying corporate relationship, the one continuous year of qualifying employment abroad, the nature of the US role, or documentary consistency across forms, letters and exhibits. Cross-check the decision against any RFE or NOID to see what the officer believed remained unresolved. Note any factual mistakes or overlooked evidence so you can decide whether to add documents or reframe explanations.
The next step is procedural. You can file Form I-290B as a motion to reopen with new or previously unavailable evidence, as a motion to reconsider based on law or policy, or as an appeal to the AAO. Filing windows are short, generally 30 days from the decision date or 33 if served by mail, with 15 or 18 days for revocations on notice. Premium processing does not cover motions or appeals. AAO review is de novo, which means the record can be reassessed in full, so a well-organized, complete packet has real value.
Some petitioners choose federal court. An Administrative Procedure Act lawsuit asks a District Court judge to set aside the denial as arbitrary or capricious and can result in a remand for a new decision. It is litigation rather than a routine appeal. Whether to sue, and whether to first pursue the AAO, depends on record strength, timing pressures and business objectives.
Consular outcomes follow a different path. If a visa is refused under section 221(g), the case enters administrative processing or the consulate may return the petition to USCIS for possible revocation. AAO jurisdiction does not extend to consular refusals. Respond precisely and quickly to document requests and, if a return occurs, prepare a full rebuttal that answers each point with evidence rather than assertions.
Refiling can be the fastest fix where the facts have improved. Strengthen the organizational chart, clarify duty allocations to show true executive, managerial or specialized-knowledge work, and add third-party corroboration such as payroll records, policies, product roadmaps or deployment logs. Avoid changes that turn the job into a different role unless you are refiling on that new basis. For new-office cases, reinforce premises, capitalization and realistic first-year staffing so the file shows the operation will support a qualifying role within one year.
Manage status and travel in parallel. Motions and AAO appeals do not extend status, so plan bridges such as refiling while the beneficiary remains abroad or coordinating with consular capacity. Map every deadline against the worker’s current I-94 and any international trips. Keep the evidentiary record consistent across filings to avoid credibility gaps.
Tie the denial review to long-term planning. L-1A cases often feed into EB-1C once the US structure is mature. L-1B beneficiaries may need a PERM strategy with lead time for recruitment and prevailing wage steps. Use what the decision highlighted to reshape duties, reporting lines and headcount so any immigrant case rests on stronger ground.
| Steps to Take | What it involves | Key deadline or trigger |
|---|---|---|
| Read the decision | List each ground, note factual errors and missing exhibits | Immediately on receipt |
| Check status and travel | Map I-94 expiry, travel plans and work needs | Same day |
| Motion or appeal (I-290B) | File to reopen, reconsider or appeal to AAO | 30 days from decision, 33 by mail |
| Refile the petition | Submit a stronger case with corrected evidence | When facts or documents have improved |
| Federal court option | Consider APA lawsuit to challenge the denial | Case by case, after legal review |
| Consular 221(g) follow-up | Respond precisely to document requests | Within the consulate’s stated timeframe |
| Fix evidence gaps | Strengthen org charts, duties, product/process proof | Before any new filing |
| New office readiness | Confirm premises, capitalization and 12-month staffing plan | Prior to refiling |
| Alternative route check | Assess H-1B, E-2 or O-1 viability | Parallel with motion or refiling |
| Long-term green card plan | Align duties and headcount for EB-1C or PERM | Build into the next filing cycle |
Common grounds for L-1 visa refusal
L1 petitions face close scrutiny from USCIS officers, with particular attention on how the evidence supports each legal requirement. Refusals rarely hinge on a single missing document. More often, they arise where the overall record fails to demonstrate a genuine qualifying relationship, a clearly defined executive or managerial role, or sufficiently detailed proof of specialized knowledge. Each of these elements carries its own evidentiary burden, and weaknesses in one area can undermine the rest of the case. Understanding where denials most often occur helps employers and applicants prepare stronger petitions and anticipate the level of analysis the adjudicator will apply.
Specialized knowledge assessment
One of the most frequent denial grounds is how specialized knowledge is evidenced. The standard is not that the knowledge is “indispensable” or that it “cannot be provided by an American employee.” The petition should document with detailed, comparative proof that the knowledge is special or advanced within the petitioning organization, and explain where and how it has been acquired and applied in the business, with supporting materials such as detailed process documentation, product architectures, deployment records, and training histories.
Managerial requirements
If you are applying for L-1A, there is no specified minimum number of direct reports. The focus is on whether the role is primarily managerial or executive. For function managers, the question is whether you primarily manage an essential function, exercise authority over that function’s goals and policies, and have discretion over day-to-day operations, typically supported by organizational charts, delegation evidence, and proof that you are relieved from performing the function’s day-to-day production tasks.
Compensation and wage considerations
L-1 petitions are not subject to a prevailing wage requirement. Compensation should be credible for the claimed role and comply with applicable federal and state wage laws. Very low compensation can undermine whether the role is truly executive, managerial, or specialized in nature, or raise viability concerns in a new-office context.
New-office viability and growth
For new-office filings, the regulations require secured premises and evidence that the US operation will support a qualifying executive or managerial role within one year of approval. A robust business plan, staffing projections, evidence of capitalization, and market analysis are expected. Overstated or unsupported projections can lead to credibility concerns and denial.
Document quality and consistency
The petition and supporting evidence should be consistent and precise. Errors such as incorrect job titles, inconsistent duty descriptions, incomplete organizational charts, or misrouted filings can cause delay or denial. Careful quality control across forms, support letters, and exhibits is important.
Standard of proof and evidentiary depth
Applicants should meet the preponderance of the evidence standard, meaning claims are more likely true than not. For L-1A, prioritize documentary proof of managerial or executive duties and the organizational structure that supports those duties. For L-1B, include granular, comparative evidence showing how the knowledge is distinct or advanced within the company and why training a replacement would involve significant time and resources.
Need Assistance?
An L1 denial can be extremely frustrating and can cause unwanted delays and expense for employers. It is advisable to give the initial application full attention to improve prospects of satisfying eligibility against heightened criteria. If you have received a refusal, take professional guidance quickly on your options and next steps, which could involve filing a motion, an AAO appeal, a new petition, or pursuing a different immigration route.
NNU Immigration are specialist US immigration attorneys. We support companies from across the globe with L-1 visa petitions, providing guidance to the employer and employee through the petitioning process, and also any refusals or appeals. If you have a question about the L-1 visa application process or eligibility requirements, please contact us.
FAQs
What happens if L-1 is rejected?
If your L1 application is rejected, review the refusal grounds to determine next steps. Depending on the issue, options may include filing a motion to reopen or reconsider, appealing to the AAO, submitting a new L-1 petition with stronger evidence, or pursuing an alternative category.
How do I challenge an L-1 denial?
File Form I-290B for a motion or AAO appeal within the stated deadline. In some cases, petitioners bring an Administrative Procedure Act lawsuit in federal court to challenge a denial. This is a lawsuit, not an appeal, and needs case-by-case assessment.
What is the difference between an AAO appeal and a motion (I-290B)?
An AAO appeal asks a higher USCIS office to review the denial. A motion to reopen or reconsider asks the same office to look again based on new facts or an argument that the decision misapplied law or policy. Both use Form I-290B and strict filing deadlines apply.
What happens after a consular 221(g) refusal on an approved L-1?
The case enters administrative processing. The consulate may request more documents or return the petition to USCIS for possible revocation. AAO appeal does not apply to consular refusals. Respond quickly and precisely to any document requests.
Glossary
| Term | Definition |
|---|---|
| L-1A | Intracompany transfer visa for executives and managers, allowing up to seven years in the US and often leading to EB-1C immigrant eligibility. |
| L-1B | Intracompany transfer visa for employees with specialized knowledge of the company’s products, services, or processes, valid for up to five years. |
| Qualifying organization | A foreign or US entity with a parent, subsidiary, branch, or affiliate relationship that forms the legal basis for an L-1 petition. |
| Qualifying relationship | The corporate link between entities that allows the transfer, such as parent, subsidiary, affiliate, or branch. |
| One-in-three rule | The beneficiary must have worked for a qualifying foreign entity for one continuous year within the three years before filing the L-1 petition. |
| Executive capacity | A role directing management, setting goals and policies, and exercising wide discretion over major decisions. |
| Managerial capacity | A role managing an organization, department, subdivision, or essential function, including supervision or control over professional employees. |
| Function manager | A manager who primarily oversees an essential function rather than direct staff but still exercises significant decision-making authority. |
| Specialized knowledge | Special or advanced knowledge of the petitioning organization’s products, services, or processes that is distinct within the company. |
| New office | A US office that has been operating for less than one year and must show it will support a qualifying role within one year of approval. |
| Blanket L | A pre-approved framework allowing large, frequent L-1 users to streamline consular filings under a single company-wide approval. |
| Form I-129 | The petition filed with USCIS by a US employer to sponsor a nonimmigrant worker, including L-1 applicants. |
| Form I-290B | Used to file a motion to reopen or reconsider, or to appeal an L-1 denial to the Administrative Appeals Office (AAO). |
| AAO | The Administrative Appeals Office within USCIS that reviews denials of certain immigration petitions, including L-1 appeals. |
| APA lawsuit | A federal court action filed under the Administrative Procedure Act to challenge a USCIS denial as arbitrary or capricious. |
| 221(g) | A consular refusal or administrative processing request for additional documents before a visa decision is made. |
| Consular return | When a consulate sends an approved petition back to USCIS for further review or potential revocation. |
| L-2 spouse | The dependent spouse of an L-1 visa holder, authorized to work incident to status without filing a separate work permit application. |
| EB-1C | An immigrant visa category for multinational managers and executives, often used by those previously in L-1A status. |
| PERM | The Department of Labor’s labor certification process for many employment-based green card categories, including those transitioning from L-1B. |
Author
Founder & Principal Attorney Nita Nicole Upadhye is a recognized leader in the field of US business immigration law, (The Legal 500, Chambers & Partners, Who's Who Legal and AILA) and an experienced and trusted advisor to large multinational corporates through to SMEs. She provides strategic immigration advice and specialist application support to corporations and professionals, entrepreneurs, investors, artists, actors and athletes from across the globe to meet their US-bound talent mobility needs.
Nita is an active public speaker, thought leader, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.