On June 23, 2005, U.S. Citizenship and Immigration Services (USCIS) issued a Press Release: USCIS Implements L-1 Visa Reform Act of 2004 - New Provision Changes Aspect of Temporary Work Program, discussing new provisions to the L-1 program. The new provisions apply to all L-1B petitions filed after June 6, 2005, including extensions and amendments involving individuals currently in L-1 status.

The L-1 Visa Reform Act of 2004 was signed into law in December 2004 as part of the Omnibus Appropriations Act for FY2005. The new law makes changes to address the "outsourcing" of L-1B "intracompany-transferee" temporary workers: "An L-1B nonimmigrant is an alien who has been employed overseas by a firm with an affiliated entity in the US, who comes to the US to perform services for the international entity that involve specialized knowledge. L-1B workers can no longer work primarily at a worksite other than that of their petitioning employer if either: a) the work is controlled and supervised by a different employer or b) the offsite arrangement is essentially one to provide a non-petitioning party with local labor for hire, rather than a service related to the specialized knowledge of the petitioning employer."

The Press Release indicates that "the specific facts presented" - on a case-by-case basis - will be used to determine whether the L-1B worker is to be employed "primarily at a worksite other than that of the petitioner." USCIS further clarifies that "the bar will not apply if the satisfactory performance of such off-site employment duties requires that the...worker must have specialized or advanced knowledge of the petitioning employer's product, service, or other interests...General skills or duties that relate to ordinary business or work activities would not meet the test of whether specialized knowledge is required for the work."

Previously, employers participating in the "blanket L-1 program" could have L-1 employees who had worked outside the U.S. for the employer for only 6 months. The new provisions have changed this work period to be the same as non-blanket petition requirements - "all L-1 temporary workers must have worked for a period of no less than one year outside the United States for an employer with a qualifying relationship to the petitioning employer." After June 6, 2005, this change applies to initial applications for L-1 classification. Extensions of status under the blanket program for those already in L-1 classification under a blanket petition are not affected by this new provision.