For professionals seeking to transfer from a foreign office to a U.S. entity, both the EB-1C immigrant visa and the L-1A non-immigrant visa offer pathways for multinational executives and managers. However, to qualify under either visa category, applicants must meet the criteria of “managerial capacity” or “executive capacity.” The immigration concepts of managerial capacity are not necessarily aligned with common business ideals, and while many folks do jobs that align with the immigration definition, it is often hard to articulate that point. This article will discuss the immigration definitions and requirements for managerial capacity, explain the types of evidence that support a strong petition, and includes special considerations for functional managers.

1. What Is “Managerial Capacity” Under EB-1C and L-1A Visas?

Under 8 U.S.C. § 1101(a)(44)(A) and 8 C.F.R. § 204.5(j)(2), managerial capacity refers to an individual’s role as a leader within the organization, emphasizing strategic oversight rather than hands-on operational duties. The definition outlines managerial capacity as a role where the individual primarily:

1. Manages an organization or a department, subdivision, function, or component;
2. Supervises and controls the work of other supervisory, professional, or managerial employees, or manages an essential function within the organization;
3. Exercises discretion over the day-to-day operations of the activity or function they oversee; and
4. Directs the organization or a component thereof at a senior level without substantial involvement in operational duties.

For both EB-1C and L-1A applications, these definitions serve as the foundation for assessing whether a position qualifies as managerial. While L-1A visas allow foreign employees to transfer to the U.S. on a temporary basis, the EB-1C category offers permanent residency status to those with demonstrated managerial or executive capacity.

2. Elements of Managerial Capacity for EB-1C and L-1A

For an applicant to meet the managerial capacity requirement under EB-1C or L-1A, USCIS evaluates the following core aspects:

1. Managing an Organization, Department, or Function

The role must involve managing the entire organization, a specific department, or a defined function. A candidate does not need to oversee the entire company; however, they should have control over an area that impacts the organization’s success. For instance, a Chief Marketing Officer (CMO) or Global Delivery Head oversees marketing or delivery functions, impacting the organization’s broader objectives.

1. Supervisory Responsibilities

Managerial roles typically involve supervising other employees, who are often supervisors, professionals, or other managers themselves. USCIS examines the applicant’s team hierarchy, evaluating whether they have direct reports who carry out professional or managerial work.

A solid organizational structure supports this aspect, with managerial roles positioned above subordinate professionals or other managers. This level of supervision is particularly critical for distinguishing managerial from non-managerial roles, as direct oversight of qualified staff emphasizes the strategic nature of the role.

1. Discretion Over Daily Operations

Applicants in managerial roles should demonstrate authority over the policies and processes within their scope of responsibility. Discretion over daily operations reflects the ability to make significant decisions, such as setting budgets, allocating resources, or enforcing high-level policies.

1. Strategic Oversight, Not Operational Involvement

USCIS requires proof that the applicant’s responsibilities are primarily strategic rather than doers. This is key for both EB-1C and L-1A visas, where candidates are expected to focus on high-level decision-making rather than day-to-day tasks. A clear organizational hierarchy and comprehensive job descriptions detailing oversight responsibilities strengthen this aspect. USCIS will expect to see evidence that the individual will be properly be able to unload their non-managerial duties.

3. Evidence to Support Managerial Capacity

Supporting evidence for managerial capacity should include the following:

• Organizational Charts: These help USCIS see where the applicant fits within the company, illustrating their supervisory responsibilities and hierarchical position. These should discuss the education of subordinates as well.
• Detailed Job Descriptions: Descriptions should specify managerial duties, such as policy development, budgeting, and strategic decision-making, rather than day-to-day technical tasks.
• Performance Evaluations and Project Records: Showing the applicant’s authority over significant projects or achievements helps substantiate managerial capacity, especially when such projects involve strategic resource allocation or departmental growth.
• Company Policy Documentation: Evidence of the applicant’s role in setting or enforcing company policies demonstrates discretion and authority, aligning with USCIS’s expectations for managerial roles.

4. Functional Managers: A Special Consideration

A unique aspect within the managerial capacity definition, especially relevant for L-1A and EB-1C, is the “functional manager” role. Functional managers manage an essential function within an organization but may not have direct supervisory responsibilities. This role is common in multinational corporations where an executive may oversee a critical aspect of business operations, such as finance, quality assurance, or technology, without supervising a large team.

Defining a Functional Manager

According to 8 C.F.R. § 204.5(j)(2), functional managers must primarily:

1. Manage an essential function of the organization at a senior level;
2. Exhibit authority and control over the function, exercising discretionary power without heavy involvement in the function’s hands-on operations;
3. Demonstrate responsibility for performance, goals, and decisions related to the function they manage.

Unlike traditional managers, functional managers do not necessarily have direct reports, but they hold authority over an operationally significant function. Their role demands strategic oversight rather than direct personnel management.

Evidence for Functional Managers

To support an EB-1C or L-1A application for a functional manager, petitioners should provide evidence emphasizing the applicant’s control over the function’s goals, resources, and policies:

• Documentation of Functional Scope: Include evidence demonstrating that the function is critical to the organization’s success. This might include business plans, objectives, and the applicant’s role in setting and achieving these objectives.
• Functional Performance Metrics: Showing how the applicant’s management of the function impacts the organization’s overall performance bolsters the claim of managerial capacity. Metrics and performance reports can substantiate the significance of the function.
• Job Descriptions and Internal Policies: These should clearly define the applicant’s authority and oversight role without direct involvement in daily operations. For example, a Functional QA Head would oversee quality standards across departments rather than engaging in direct testing.

5. Common Challenges in Demonstrating Managerial and Functional Managerial Capacity

Successfully establishing managerial capacity under EB-1C or L-1A requires overcoming common challenges:

• Insufficient Supervisory Structure: For functional managers, a lack of direct reports can be problematic if not accompanied by evidence of strategic control. If the applicant does not supervise others, a clear demonstration of their functional oversight and decision-making power becomes critical.
• Overlap with Operational Tasks: USCIS is often cautious with cases where the applicant performs non-managerial duties. For instance, a manager with technical responsibilities should ideally delegate these tasks to subordinates, emphasizing strategic duties instead.
• Vague Job Descriptions: Job descriptions that lack specificity or focus on operational tasks rather than managerial responsibilities weaken petitions. Specific details on decision-making, budget control, and strategic responsibilities are essential.

7. Conclusion: Building a Strong Case for Managerial Capacity

Understanding the definition of managerial capacity and functional managerial roles is essential for a successful EB-1C or L-1A petition. USCIS evaluates whether an applicant’s duties align with managerial standards, including supervision, discretion over policies, and strategic oversight. Petitioners should provide clear evidence, including job descriptions, organizational charts, performance metrics, and policy documents, to substantiate their claims.

At Reddy Neumann Brown PC, our attorneys have tremendous experience with EB-1C and L-1A cases, helping clients gather and present comprehensive evidence for managerial capacity. Our approach ensures that each petition reflects the strategic value of the applicant’s role, supporting multinational companies in navigating the immigration process successfully.

Reddy Neumann Brown PC located in Houston, Texas, has been serving the business community for over 25 years and is Houston’s largest immigration law firm focused solely on U.S. Employment-based and investor-based immigration. We work with employers, employees and investors helping them navigate the immigration process quickly and cost-effectively.

By: Steven Brown

Steven Brown is a Partner at Reddy Neumann Brown PC where he works in the Non-immigrant visa department and leads the Litigation Team. His practice covers all phases of the non-immigration visa process including filing H-1B, L-1, E-3, H-4, and H-4 EAD petitions. In the last two years, Steven has successfully handled over 1,000 non-immigrant visa petitions including filing petitions, responding to any necessary Requests for Evidence, and drafting motions and appeals. He has also become a key resource for F-1 students that seek guidance on properly complying with the F-1 visa regulations and any OPT or CPT issues they may have. Additionally, Steven holds a weekly conference call for companies that are part of one of the largest organizations for IT Services companies in America.