Advising an expatriate employee on immigration status and employment issues arising from the sale of a U.S. subsidiary

For an expatriate employee of a Korean company whose U.S. subsidiary was about to be sold, we reviewed how the sale would affect the employee's U.S. immigration status and green card application, as well as the employee's legal rights in the employment relationship.

The key issues were whether the qualifying relationship between the companies required for the L-1 visa would remain in place after the sale, and whether an EB-1C green card application would still be possible.

Other issues included the company's legal responsibility under its earlier commitment to sponsor a green card, the possibility that the employment relationship would end, and potential claims under Korean and U.S. law.

We reviewed the requirements for L-1 status and an EB-1C petition under different possible deal structures, and compared a company-sponsored green card application with options for securing independent immigration status.

We also analyzed potential claims based on the at-will employment doctrine under U.S. employment law, breach of contract, and reliance on a promise, and reviewed the employee's rights under the employment relationship with the Korean headquarters and the secondment agreement.

We explained that the timing of the sale and whether the employment relationship would continue would significantly affect the client's ability to maintain immigration status and apply for a green card.

Considering the likelihood of success of any legal claims and the related risks, we recommended an approach that pursued a negotiated resolution with the company while also reviewing alternative immigration options.

Related U.S. practices: Corporate & Business Advisory, Employment & Labor