dismissed L-1A Case: Chemical Trading
Decision Summary
The appeal was dismissed because the petitioner failed to establish that the beneficiary would be employed primarily in a managerial or executive capacity. The director found the beneficiary's described duties were inconsistent with the nature of the petitioner's business, such as referencing sales and project management for a procurement company, and the petitioner's response did not sufficiently clarify that the beneficiary's day-to-day tasks were primarily high-level and not operational.
Criteria Discussed
Sign up free to download the original PDF
Downloaded the case? Use it in your next draft →View Full Decision Text
U.S. Citizenship and Immigration Services MATTER OF G-T-INC. Non-Precedent Decision of the Administrative Appeals Office DATE: JUNE 7, 2018 APPEAL OF CALIFORNIA SERVICE CENTER DECISION PETITION: FORM 1-129, PETITION FOR A NONIMMIGRANT WORKER The Petitioner, a chemical trading company specializing in flavor and fragrance ingredients, seeks to continue the Beneficiary's temporary employment as its general manager· under the L-IA nonimmigrant classification for intracompany transferees. See Immigration and Nationality Act (the Act) section !Ol(a)(15)(L)·, 8 U.S.C. § IIOI(a)(I5)(L). TheL-IA classification allows a corporation or other legal entity (including its affiliate or subsidiary) to transfer a qualifying foreign employee to the United States to work temporarily in a managerial or executive capacity. The Director of the California Service Center denied the petition, concluding that the Petitioner did not establish, as required, that it would employ the Beneficiary in a managerial or executive capacity under the extended petition. On appeal, the Petitioner submits additional evidence and asserts that the Director did not consider the reasonable needs of the petitioning organization as a whole, mischaracterized the nature of the company, and placed undue emphasis on the Petitioner's U.S. staffing levels, leading to an erroneous conclusion regarding the Beneficiary's employment capacity. Upon de novo review, we will dismiss the appeal. I. LEGAL FRAMEWORK To establish eligibility for theL-IA nonimmigrant visa classification, a qualifying organization must have employed the beneficiary "in a capacity that is managerial, executive, or involves specialized knowledge," for one continuous year within three years preceding the beneficiary's application for admission into the United States. Section I 0 I (a)(15)(L) of the Act. In addition, the beneficiary must seek to enter the United States temporarily to continue rendering his or her services to the same employer or a subsidiary or affiliate thereof in a managerial or executive capacity. !d. II. DEFINITIONS "Managerial capacity" means an assignment within an organization in which the employee primarily manages the organization, or a department, subdivision, function, or component of the organization; supervises and controls the work of other supervisory, professional, or managerial employees, or MaUer of G-T- Inc. manages an essential function within the organization, or a department or subdivision of the organization; has authority over personnel actions or functions at a senior level within the organizational hierarchy or with respect to the function managed; and exercises discretion over the day-to-day operations of the activity or function for which the employee has authority. Section IOI(a)(44)(A) of the Act. The term "executive capacity" is defined as an assignment within an organization in which the employee primarily directs the management of the organization or a major component or function of the organization; establishes the goals and policies of the organization, component, or function; exercises wide latitude in discretionary decision-making; and receives only general supervision or direction from higher-level executives, the board of directors, or stockholders of the organization. Section IOI(a)(44)(B) ofthe Act. Based on the definitions of managerial and executive capacity, the Petitioner must first show that the Beneficiary will perform certain high-level responsibilities. Champion World. inc. v. INS, 940 F.2d 1533 (9th Cir. 1991) (unpublished table decision). Second, the Petitioner must prove that the Beneficiary will be primarily engaged in managerial or executive duties, as opposed to ordinary operational activities alongside the Petitioner's other employees. See Family Inc. v. USC!S, 469 F.3d 1313, 1316 (9th Cir. 2006): Champion World, 940 F.2d at 1533. Ill. U.S. EMPLOYMENT IN A MANAGERIAL OR EXECUTIVE CAPACITY The sole issue to be addressed is. whether the Petitioner established that it will employ the Beneficiary in a managerial or executive capacity under the extended petition. When examining the managerial or executive capacity of a given beneficiary, we will look to the petitioner's description of the job duties. See 8 C.F.R. § 214.2(1)(3)(ii). Beyond the required description of the job duties, we examine the company's organizational structure, the duties of a beneficiary's subordinate employees, the presence of other employees to relieve a beneficiary from . performing operational duties, the nature of the business, and any other factors that will contribute to understanding a beneficiary's actual duties and role in. a business. Accordingly, we will discuss evidence regarding the Beneficiary's job duties along with evidence of the nature of the Petitioner's business, its staffing levels, and its organizational structure. A. Duties The Petitioner states that it operates as a "global procurement division" for its overseas affiliate, which imports and sells flavor and fragrance chemical ingredients to Chinese customers. At the time of filing, it submitted the following description of the Beneficiary's duties as general manager: 20% Engagement Management: Oversee daily operations, project planning, and special events, working closely with each program coordinator. Manage client engagements during pre-sales and post-sales closing. Monitor and track gross profitability of all 2 Malter of G- T- Inc. accounts in his portfolio. Communicate with the sales personnel, legal c~unsel, delivery teams. and finance. Review all project proposals, contracts, statement of works and any other agreements related to clients .... 30% Hiring/Training: Personnel management (recruitment, hiring, trammg. evaluation and termination of statl). Create hiring plans to fill needs .... [M]entor manager as well as teams' individual performance by ensuring successful execution of organization management techniques and career planning techniques. Simultaneously review and analyze process performance reports against targets . . . . Conduct regular performance assessments. 30% New Business Development: Build relationships with new clients in order to develop more business and enhance the sales pipeline. Develop and execute marketing strategy plans with the assistance of the Manager. 20% Administration: Together with the manager, will develop and manage the annual budget .... Review cost structure of the team on a regular basis and take decision on team structure to meet account profit targets. Financial reviews of direct costs, travel and logistics planning. Effectively communicating business statistics and progress to board members. The Director found this description insufficient to establish that the Beneficiary would be performing primarily managerial or executive duties and requested additional infom1ation regarding the nature of the Beneficiary's day-to-day tasks. We agree with this assessment of the position description, as it contained several deficiencies. First, most of the Beneficiary's "engagement management" responsibilities appeared to be inconsistent with the nature of the Petitioner's organization. Based on the evidence provided, the Petitioner does not engage in projects, special e"vents, or client engagements, does not provide any service that would require a "statement of work," and does not employ the "program coordinators" or "delivery teams" referenced in the job description. Further, the Petitioner later stated that it docs not have sales personnel or engage in sales and marketing activities, which raises questions regarding the Beneficiary's stated pre-sales and post-sales activities and communications with sales personnel. As a result, the duties attributed to the Beneficiary under this area of responsibility did not appear to reflect his actual day-to-day duties as general manager of a procurement company. The Beneficiary's responsibility for "new business development," reflects his direct involvement in non-managerial sales and marketing activities, and is also inconsistent with the Petitioner's later claim that the U.S. company is not engaged in sales or marketing. ln addition, the Petitioner indicated that the Beneficiary spends part of his "administration" time communicating with board 3 Mauer ofG-T- Inc. members, but the Beneficiary is the sole owner of the company and the record does not indicate that the Petitioner has a board of directors. In response to the Director's request for evidence (RFE), the Petitioner submitted a statement from the Beneficiary, who maintained that he divides his time between the same four broad areas of responsibility. However, the Beneficiary did not further clarify what specific tasks make up his responsibility for "engagement management," or explain the incongruous duties that appeared in the initial description. Rather, he generally stated that he manages the Petitioner's New Jersey office, Arizona office, United Kingdom office, and "finance/accounting unit," noting that all offices are "participating in procurement initiatives, finalizing procurement activities, and completing transportation orders through ... outside vendors/service contractors." The Beneficiary indicated that he manages "the three units through establishing goals and polices for each sub-unit to follow," and stated that each office manager reports to him on a daily basis and seeks his approval regarding all procurement activity initiated. However, this statement did not ·provide sufficient detail regarding what the Beneficiary does on a day-to-day basis with respect to the company's procurement activities. In addition, the Beneficiary is the sole employee at the New Jersey office, which it initially described as the company's "East Coast branch," and has not shown how he would manage, rather than perform, procurement activities conducted from that location. The Beneficiary's statement in response to the RFE also did not further elaborate upon his "hiring/training" duties. While we do not doubt that he has the authority to hire and train staff, the record shows that he has hired no more than one or two employees since he was granted L-1 A status in 2015, and the record does not establish that he would be hiring or training staff under the extended petition or how he would spend 30% of his time on this area of responsibility. The Beneficiary went on to state that his responsibility for "new business development," requiring an additional 30% of his time, includes "building relationships with new business partners in the international market for [the Petitioner] to source and purchase higher quality and new kinds of raw chemistry materials/elements for our Chinese parent company." However, it is not clear how this responsibility differs from that of his two subordinates who also source and purchase materials tor export to the parent company, or how it qualities as a managerial or executive duty. The Beneficiary provided examples of new supplier relationships secured in 2017, but also stated that he "personally participated in the critical stage of sourcing new business partner and product samples." While the Petitioner has provided evidence that the Beneficiary had two subordinates to assist him with procurement, the record does not establish that they would sufficiently relieve him from non managerial duties associated with the company's business development and procurement activities. Overall, the position description submitted in response to the RFE did not sufficiently detail the specific tasks the Beneficiary would perform as part of his regular daily routine. Specifics are clearly an important indication of whether a beneficiary's duties are primarily executive or managerial in nature, otherwise meeting the definitions would simply be a matter of reiterating the regulations. Fedin Bros. Co .. Ltd. v. Sava, 724 F. Supp. 1103, 1108 (E.D.N.Y. 1989), aff"d, 905 F.2d 41 (2d. Cir. 1990). 4 . Matter vf G-T- Inc. The fact that the Benefici ary will manage or direct a business does not necessa rily establish eligibilit y for class ificati on as an intracomp any transferee in a managerial or executive capacity within the meaning of section 1 0 l(a)(4 4) o f the Act. By s tatute , eligibility for t his class ification requir es that the d uties o f a position be " prim arily" executi ve or manage rial in n ature. Sections I OI(A) (44)(A) and (B) of the A ct. While the Beneficia ry may exe rcise discretio n ove r the Petition er's day-to-day operations and poss ess the requisite level of authority with respec t t o discretion ary decision-making , the position descript ions alone are insufficient to establish that his actual du~i es would be prim arily managerial or execu tive in natu re. B. Staffing and Organizational Structure If staffin g levels are used a s a factor in dete rmining wheth er an individua l wi ll be a cting in a manageri al or executive capacity, we take into acco unt the reaso nable needs of the o rganization, in light ofth e ove rall purpos e and stage of develop ment of the org anizat ion. See section I OI(a)(44)(C) ofthe Act. The Petitioner has prov ided inconsistent information regarding its staffin g and organizational structure . A t the time of tilin g in August 201 7, the Petitioner stated that it employs three people and has offic es in California, Arizona, and New Jersey: It provided evidence related t o a ll three location s, including photogr aphs o f its Californi a location. On the Form 1-129 s igned b y the Beneficiar y, the Petition er used a California mailing a ddress and stated that the Benefi ciary "will divide his time and effort betwee n the 3 [company] locations. " The organi zational chart that accompanied the petition identi fied the Beneficiary as general manage r with a subordin ate mana ger a l ogistic manager (open position), and a marketi ng a nd sales man ager reporting to him. The chart also showe d three vacancies for "ass istant" position s under the manag er, two vacant "distributi on rep" positions under the logistics manager, and three o pen "account manager" positions under the marketing and sales manager, for a total of 12 position s. The Petitioner prov ided evidence of wages paid to in 201 5 and an offer letter issued to for the position of sales manage r with a start date of March 2016. Base d on the evidenc e s ubmitted , the Benefi ciary resides in New Jersey, in Arizona, and m Californi a. In the RFE, the Direct or r equested additi onal d etailed evidence regardin g t he Petitioner's organiz ational structure and s ubordinate staff. In response, the Petit ioner stated that the inclusion of the California address on the Forn1 1-129 was "an administrative error made by the petition er's prior attorney/representative." The Petitioner indic ated that its California office closed three months a fter opening in 20 16 due to the loss of business with two maj or suppliers. Howev er, the Petitioner's initial filing was prese nted as self-prepa red with no ack nowledged attorney or repres entative. Further, the Petiti oner expressly stated on the F orm l-12 9 that i t had a West Coas t branch, indicated that the Beneficia ry would spend some of his time and effort there, provided a lease agreement with photographs of the location , a nd submi tted an organ izat ional chart identif ying a sales manager based in California. lt did not simply indicate a n erroneous mailing 5 . Malter of G-T- Inc. address on the Form I-129. The Petitioner has not adequately expl ained why it claimed to have an office in California if such office had closed a year before the date of tiling. In additi on, the Petitioner claimed in response to the RFE that it had opened a United Kingdom branch office in July 201 7. The Petitioner did not explain why it did not men tion or p rovide evidence related to the U.K . oftice when it filed this petition in August 201 7. It is reasona ble to expect the Petitioner to be able to accurately identi fy the location of its offices and empl oyees at any given time. As a result of these changes, the organizational chart submitted in res ponse to the RFE bore little resemblance to that provided at the time of filing. The revised organizational chart (dated October 20 17), indicated that the Beneficia ry ove rsees (Manager/EU), (Manager/US A), and a contracte d CPA who is the so le member of the "fin ance/accounting department." The new chart did not include a sales/marketing department and the previously identifi ed m anager of that department. Instead the Petitioner stated that it "does not have [ a] sales and marketing department " or any need for one. The proposed logistics departm ent was also absent from the new chart. Rather, the Petitioner indicated that the two manager s a re responsible for "sourcing, purcha sing, marketing , and logistics." The chart shows that each manage r oversees or works with two to three vendors /third-party compani es respons ible for warehou sing, labeling, packin g/repacking, shippin g, and custom clearance activities. The Petitioner provided evid ence that it has paid wages to sinc e 2014 and estab lished that she is the only e mployee of the A rizona o ffice. 1 The Petitioner also submitted an emp loymen t agreement for of in the United Kingdom . Under the stated term s, the Petitioner agreed t o pay him $20,000 per quart er to source and purchase raw materials in Europe, o btain market intelligence a bout product s in the flavor and iragrance i nd ustry, and t o perform "other duties" as assigned. The Petiti one r provided evidence that it paid invoices issued by company in 2016 and 2017 for the purchas e of chemical ingredients, as well as evidenc e of one wire transfer made directly to in October 20 17. The s tatut ory definition of "managerial capacity" allows for both "pe rsonnel manage rs" and "function managers." See section I 01 ( a) (44)( ~)( i) and (ii) of the Ac t. Personnel managers are required to primarily supervise and contr ol the work of other supervisory, profess ional, o r manageri al employees. Contr ary to the comm on understandin g of the word "manager, " the statute plainly s tates that a "fir st line supervisor is not cons idered to be acting in a manage rial capacity merely by virtue of the superv isor 's superviso ry duties unless the e mp loyees supe rvised are profess ional." 2 Section 101(a)(44)(A)(iv) of the Act. If a b eneficiary directly s upervises other 1 The Petitioner explained that receives half of her salary from a related U.S. company called which the Petitioner states is engaged in repackaging purchased products prior to export. The submitted evidence indicates that she is the sole employee of 2 In evaluating whether a beneficiary manages professional employees, we must evaluate whether the subordinate positions require a baccalaureate degree as a minimum for entry into the field of endeavor. Cf 8 C.F.R. § 204.5(k)(2) (defining "profession" to mean "any occupation for which a U.S. baccalaureate degree or its foreign equivalent is the minimum requirement for entry into the occupation"). Section I 0 I (a)(32) of the Act, states that "[t]he term profession 6 . Malter of G- T- Inc. employees, the beneficiary must also have the autho rity to hire and fire tho se employees, or recomm end those actions, and take other personnel actions. 8 C.F.R. § 2 I 4.2(1)(1 )(ii)(B)(J). Both of the Beneficiary's subordinates have managerial job titles, but they appear to be primaril y responsib le for sourcing and purchasing chem ical ingredients and arrang ing for ware housing, packing , and shipment of these ingredients through third-party companies, rather than perfo rming manageri al or supervisory dutie s. The Benefici ary's stat ement in response to the RFE ind icated that he approves procurement activities initiated by his subo rdina tes, which further supports a finding that the subordinate employees are not acting as managers. Further, the re is some confusion regarding duties , as the evidence indicates that she is the sole emp loyee of a secon d, related compan y that engages in repackaging products . The Petitioner also provide d business licenses for its Arizona location showing that it engages in retail sa les. job description does not includ e duti es related to retai l or repacka ging act ivities. The Petitioner also indicates that both subordinate employees have obtained at least a bachelo r's degree and qualify as professional employees. Specifica lly, has a Ph.D . in physics and has a bachelor's degree in political science. We focus on. the level of education required by the position , rath er than the degr ee held by a subordinate employee . ·The possess ion of a bachelor's degree by a subordinate employee does not automatically lead to the conc lusion that an individual is employed in a professional capacit y. The Peti tioner did not sufficiently expl ain how the purchase of chemical ingredients and arrangement of shipping of these agreements with third parties requires an employee with a bachelor's degree. In fact, the initial evidence indicated that the forei gn entity's proc urement spec ialist, who performs similar duties in China, and the foreign entity's, vice genera l manager , who is claimed to oversee the procurement activities in China, both have a "middle school " education. Finally, even if the Petitio ner estab lished that the Benefic iary supervises managerial or professio nal subordinates , for the reason s discussed, it has not consiste ntly described his job dutie s and has not clea rly estab lished how much of his time would be spe nt on supervisory dut ies. For these reasons , the Petitione r h as not established that the Beneficiary would be employed primari ly as a person nel manager. The Petiti oner's primary claim on appeal is that the Director over loo ked the fact that the U.S. compan y performs the essenti al function of global procurement for its ove rseas affiliate. The Petitioner asserts that the Director erre d by not acknow ledg ing this role within the broader qualifying organ izat ion or the duties performed by the foreign entity's employee s. The term " function manag e r" app lies generall y ~hen a beneficiar y does not supervise or contr ol the work of a subordina te statT but instead is primarily responsible for managing an "essentia l functio n" within the orga nization. See section 10 I (a)( 44)(A)(ii) of the Act. If a petitioner claims that a benefici ary will manage an essentia l function, it must clearly describe the duties to be performed in shall include but not be limited to architects, engine ers, lawyers, physician s, surgeons, and teacher s in elementary or secondary schools, colleges. acad emies, or seminaries. " '7 . Mauer of G-T- Inc. managing the essential function . In addition, the petitioner must demon strate that "( 1) the function is a clearly defined activit y; (2) the function is ' essential ,' i.e. , core to the organ iza tion ; (3) the beneficiary will primarily manage, as opposed to perform, the function ; (4) the bene ticiar y will act at a senior level within the organizational hierarchy or with respect to the funct ion managed; and (5) the beneticiary will exercise discretion over the function's day- to-da y operations." Matter of G lnc., Adopted Decision 2017-05 (AAO Nov. 8, 20 17). Here, although we agree that procurement is an essential function of the petitioning company and the broader organization, the Petitioner has not demonstrated that the Beneficiary primarily manages this function or that the subordinate staff sufficiently relieve him from significant involvement in its day to-day activities. The Petitioner indicates that it has two employees and two ortices in the United States, with the Beneficiary in its New Jersey office and a manager in its Arizona office. The Petitioner has provided evid ence that the Arizona-based manager is engage d in proct1rement activities , but it appears that she is also responsible for a repackag ing business with no other employees , and possibly a retail business. The record does not support the Petitioner ' s cla im that this s ingle employee relieves the Beneficiary from performing the procurem ent function in the United States. Likewise, the Beneficiary has described his involvement in secu ring new su ppliers outside the United States , and the record does not show that the U.K.-based employee singlehandedly performs all international procurement activities. Further, the Beneficiary is the sole employee of the Petitioner 's "East Coast oftice," which appears to rent office space at the location of a warehouse or shipping company called in New Jersey. The Petitioner stated that all of its otTices are "participating in procurement initiatives, finalizing procurement activities, and completin g transport atio n orde rs through . . . outside vendors /service contractor s." Further , the Beneficiar y's job descr iption indicates that he personall y participates in sourcing new busines s partners. The Petitioner has not provided any add itional description of what its New Jerse y office does if it is not engage d in procurement activities and arrangement of shipments from its location. In sum, the Petitioner's claim that one U.S. employee, one U.K. employee, a contracted accountant, and several outsourced service provider s a re able to relieve the Beneficiar y from performing non managerial duties associated with the global procurement function performed by the U.S. company is not adequately supported by the record. While performing non-quali fying task s will not automatically disqualify a beneficiary as long as those tasks are not the majority of a beneficiary's duties , a petitioner still has the burden of establishing that a benefi ciary will "primaril y" perfonn managerial or exec utive duties. See section 101 (a)( 44) of the Act. Whether a beneficiary is "function" mana ger turns in part on whether the Petitioner has sust ained its burden of proving that their duti es are "primar ily" manageria l. See Maller ofZ-A-, Inc., Adopted Deci sion 20 16-0 2 (AAO Apr. 14, 2016). Here , because of the overly broad description of the Benefici ary's dutie s, the Petitioner did not adequ ate ly doc ument what proportion of the Beneficiary' s dutie s would be managerial function s and what proport ion would be non-managerial. Absent a clear and credible breakdown of the time spent by the Beneficiar y performing specific task s, we cannot determine what proportion of the duties would be manageria l, 8 Mauer ofG-T-lnc. nor whether the Beneficiary is primarily performing the duties of a function manager. IKEA US. Inc. v. US. Dept. of Justice, 48 F. Supp. 2d 22, 24 (D.D.C. 1999). The Petitioner cites to Maller of Z-A- and asserts that the Director erred by focusing on the size of the Beneficiary's subordinate staff and the small size of the U.S. company. The Petitioner also claims that, pursuant to Maller of Z-A-, the Director was required to consider evidence of personnel employed by another related entity within the quali tying organization who perform day-to-day non managerial tasks for the petitioning entity. Here, unlike the Petitioner in Mal/er ofZ-A-, the Petitioner did not present evidence that its foreign affiliate's personnel perform imy day-to-day tasks for the petitioning entity. Rather, the Petitioner has characterized the U.S. company as one which performs the procurement and purchasing function for the foreign entity. Therefore, while the Petitioner submitted an organizational chart for the foreign entity, the Director's decision did not erroneously exclude the foreign entity's employees from its analysis of the Beneficiary's U.S. position. The foreign employees were not mentioned in the Beneficiary's own job description and the Petitioner did not place any emphasis on the roles of the foreign employees prior to the appeal. The Beneficiary may continue to supervise the foreign staff in his role as general manager of the Chinese company, but the Petitioner must still establish that the duties he performs on a day-to-day basis within the scope of the U.S. company's day-to-day operations are primarily managerial. His continuing general oversight of the foreign affiliate's activities does not support the Petitioner's claim that the Beneficiary qualifies as a function manager. Further, it remains unclear how much time he spends overseeing the foreign entity's activities since such duties were not included in his job description. The statutory definition of the term "executive capacity" focuses on a person's elevated poslliOn within a complex organizational hierarchy, including major components or functions of the organization, and that person's authority to direct the organization. Section I 0 I (a)( 44 )(B) of the Act. Under the statute, a beneficiary must have the ability to "direct the management" and "establish the goals and policies" of that organization. Inherent to the definition, the organization must have a subordinate level of managerial employees for a· beneficiary to direct and they must primarily locus on the broad goals and policies of the organization rather than the day-to-day operations of the enterprise. An individual will not be deemed an executive under the statute simply because they have an executive title or because they "direct" the enterprise as the owner or sole managerial employee. Although the Petitioner has at times described the Beneficiary's duties as "executive or managerial," the submitted job descriptions do not indicate he would be primarily focused on the company's broad policies and goals. Further, the supporting evidence, which was initially marked by unexplained inconsistencies regarding the location of the Petitioner's offices and employees, as well as job duties for the Beneficiary that are not credible in light of the nature of the business, is not sufficient to show how the two claimed employees would sufficiently relieve the Beneficiary from 9 Matter ()[ G- T- Inc. involvement in the global procurement function undertaken by the company. Therefore, the record does not establish that the Beneficiary would be employed in an executive capacity. IV. CONCLUSION The Petitioner has not established that it would employ the Beneficiary in a managerial or executive capacity under the extended petition. ORDER: The appeal is dismissed. Cite as Matter of G- T- Inc., ID# 1288507 (AAO June 7, 20 18) r 10
Avoid the mistakes that led to this denial
MeritDraft learns from dismissed cases so your petition avoids the same pitfalls. Get arguments built on winning precedents.
Avoid This in My Petition →No credit card required. Generate your first petition draft in minutes.