Hello, this is Matsui from IMS Legal Professional Corporation.
This month, Japanese media widely reported on a large-scale enforcement action at a Korean automaker’s electric-vehicle (EV) battery factory in the state of Georgia, USA. We’ve even heard that some Japanese companies have temporarily halted employee business trips to the U.S. Inbound inquiries—especially from manufacturers—have increased, so today I’d like to take a closer look at this issue.
What happened?
On September 4, 2025, a joint factory under construction by Hyundai Motor and LG Energy Solution in Ellabell, Georgia, was subjected to a large-scale enforcement action by U.S. authorities, resulting in the arrest of 475 workers for unlawful employment. Reports indicate that around 300 were Korean nationals, and three were Japanese. According to the U.S. Department of Homeland Security, this was the largest operation at a single site to date. Because the site is part of Georgia’s largest economic development project and footage showed detainees in handcuffs and shackles, the incident drew intense attention both within and outside the U.S.
U.S. Immigration and Customs Enforcement (ICE) commented that the United States “wholeheartedly welcomes all companies wishing to invest in America, but if companies need foreign workers, they must bring them in legally.” President Trump stated, “Those detained are illegal immigrants, and ICE was simply doing its job.”
The detained individuals were taken to an ICE facility in Folkston, Georgia, near the Florida border. Conditions there also became a topic of discussion. A quick look on Google Maps shows it’s about a two-hour drive from the factory to the detention center, underscoring ICE’s seriousness. The detention lasted about a week. ICE wished to transport the detainees to Atlanta by bus while still in custody, whereas the Korean side sought their release to avoid future U.S. entry issues and to have the company’s buses transport them. Ultimately, on the 11th they were released, moved to Atlanta by company-arranged buses, and most—including the three Japanese nationals—departed the U.S. that same day on a charter flight to Korea.
What was the problem?
Reports suggest that many of the workers at the factory had entered the U.S. either under the Visa Waiver Program (ESTA) or on B-1 business visitor visas. Those holding employment-authorized visas (such as E visas) reportedly avoided arrest. There’s a common misconception that because B-1 visa holders do not receive U.S.-source wages, they may perform work in the U.S., but ESTA and B visas permit the same activities—and employment is not allowed, even for short periods. Acceptable activities under ESTA/B-1 include meetings, contract negotiations, and site inspections. Being physically present in a factory for inspection is fine; however, judging from the attire of those detained, most appeared to be performing on-site labor. Given the construction phase, it’s reasonable to assume many engineers with various roles had been dispatched. Because of the large number required, visa arrangements may have been neglected.
What should have been done? — Practical risk-mitigation options
What steps can be taken to avoid similar situations? Which visa categories could have prevented arrest and detention?
1) Employment-Authorized Visas
H-1B (Specialty Occupation)
Some U.S. commentary suggested these engineers should have held H-1B visas. While H-1B does authorize employment, obtaining one is not easy: except for certain exempt employers, you must first be selected in the annual lottery before you can even proceed to adjudication. For short-term deployment to support plant construction, H-1B is generally not practical.
E-2 (Treaty Investor)
Given the massive investment for plant construction, the E-2 investor visa could be realistic if the nationality and corporate structure align. However, because this was a Korean-invested project, E-2 usage would be effectively limited to Korean nationals and typically to employees of the investing entities (Hyundai, LG Energy Solution). Many workers reportedly belonged to partner or subcontractor companies, which would generally not qualify.
E-TDY (Temporary Duty under E framework)
Where the E category is available to the company, E-TDY is well-suited for short-term project assignments, including engineers. Employment remains with the home entity, and compensation is paid from the home country, which is acceptable under this route.
L (Intra-company Transferee)
The L visa allows transfers from a foreign parent to a U.S. subsidiary (or vice versa) and is frequently used for engineers. It’s a standard employment visa option when there is a qualifying corporate relationship.
2) B-1 in lieu of H-1B
If none of the above employment visas fit, B-1 in lieu of H-1B may be an option. Although issued as a B-1 visa, it carries the annotation “B-1 in lieu of H-1B”, allowing short-term work in the U.S. that meets H-1B-level criteria (no U.S.-source salary). Typically, a bachelor’s degree or higher is required, with relevance between the academic major and the U.S. duties. In some cases, extensive professional experience can substitute for missing academic credentials, making it viable for seasoned engineers.
3) B-1 for Industrial Workers
When installing or maintaining machinery manufactured outside the U.S. at a U.S. site, engineers from the manufacturer often need to be on-site. U.S. rules do allow certain on-site work under B-1 in such cases—provided the sales/service contract explicitly states that engineers will be dispatched for installation/maintenance. The visa will carry a regulatory annotation so that CBP officers can recognize the basis at a glance.
In the present case, workers ideally should have obtained either B-1 in lieu of H-1B (option 2) or B-1 Industrial Worker (option 3) in advance. It is not permissible to enter on a plain B-1 (labeled as “meetings”) and then perform on-site labor at a factory.
Going forward, business travelers and their companies should carefully evaluate whether the planned U.S. activities are truly permitted under ESTA/B-1 or other visas, and ensure that no unauthorized employment occurs.
This blog reflects the situation as of the time of writing. Please confirm the latest information using official government sources.
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