*The U.S. Equal Employment Opportunity Commission*

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# The Equal Employment Opportunity Responsibilities of Multinational Employers

The globalization of business activity has resulted in employersfrom around the world assigning increasing numbers of personnelinternationally. The following general guidance is intended to helpmultinational employers determine their obligations under U.S.equal employment opportunity laws (EEO laws).

## Operations in the United States or U.S. Territories

Multinational employers that operate in the United States or itsterritories -- American Samoa, Guam, the Commonwealth of theNorthern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands-- are subject to EEO laws to the same extent as U.S. employers,unless the employer is covered by a treaty or other bindinginternational agreement that limits the full applicability of U.S.anti-discrimination laws, such as one that permits the company toprefer its own nationals for certain positions.

## Operations Outside the United States and U.S. Territories

### Companies Based in the U.S.

Employers that are incorporated or based in the U.S. or arecontrolled by U.S. companies and that employ U.S. citizens outsidethe United States or its territories are subject to Title VII, theADEA, and the ADA with respect to those employees. U.S. EEO laws donot apply to non-U.S. citizens outside the U.S. or itsterritories.

### How to Determine Who is a U.S. Employer

An employer will be considered to be a U.S. employer if it isincorporated or based in the United States or if it has sufficientconnections with the United States. This is an individualizedfactual determination that will be based on the following relevantfactors:
    -  the employer's principal place of business, i.e., theprimary place where factories, offices, and other facilities arelocated;
    -  the nationality of dominant shareholders and/or thoseholding voting control; and
    -  the nationality and location of management (the officersand directors of the company).

### How to Determine Whether a Company is "Controlled" By aU.S. Employer

    - Employers operating outside the United States are covered byTitle VII, the ADEA, and the ADA only if they are  controlled by aU.S. employer . Whether a company is controlled by a U.S. employeris also an individualized determination, which will be based on thefollowing relevant factors:
    -  whether the operations of the employers areinterrelated;
    -  whether there is common management;
    -  whether there is centralized control of labor relations;and
    -  whether there is common ownership or financialcontrol.

### Foreign Laws Defense

U.S. employers are not required to comply with the requirementsof Title VII, the ADEA, or the ADA, if adherence to thatrequirement would violate a law of the country where the workplaceis located. For example, an employer would have a "Foreign LawsDefense" for a mandatory retirement policy if the law of thecountry in which the company is located requires mandatoryretirement.

A U.S. employer may not transfer an employee to another countryin order to disadvantage the employee because of his/her race,color, sex, religion, national origin, age, or disability. Forexample, an employer may not transfer an older worker to a countrywith a mandatory retirement age for the purpose of forcing theemployee's retirement.

## What U.S. EEO Laws Cover

The federal EEO laws enforced by the EEOC are Title VII of theCivil Rights Act of 1964 (Title VII), the Age Discrimination inEmployment Act (ADEA), the Americans with Disabilities Act (ADA),and the Equal Pay Act (EPA). These laws prohibit covered employersfrom discriminating on the bases of race, color, sex, nationalorigin, religion, age, and disability. Examples of conductprohibited include:

-  Discriminatory Employment Decisions  Title VII, the ADEA, and the ADA prohibit discrimination in allaspects of the employment relationship, including recruitment,hiring, assignment, transfer, firing, layoffs, and other conditionsor privileges of employment. 
- Discrimination in Compensation andBenefits  Title VII, the ADEA, and the ADA prohibit discrimination incompensation based on race, color, sex, national origin, religion,age, and disability. In addition, the EPA prohibits paydiscrimination between men and women who are performingsubstantially equal work. Although the EPA does not apply outsidethe United States, such claims are covered by Title VII, which alsoprohibits discrimination in compensation on the basis of sex. 
- Harassment  Title VII, the ADEA, and the ADA also prohibit offensive conductthat creates a hostile work environment based on race, color, sex,national origin, religion, age, and disability. Employers arerequired to take appropriate steps to prevent and correct unlawfulharassment and employees are responsible for reporting harassmentat an early stage to prevent its escalation. 
- Retaliation  Title VII, the ADEA, the ADA, and the EPA prohibit employersfrom retaliating against employees because they have opposedunlawful discrimination or participated in a discrimination relatedproceeding. 

## Need More Information?

For more detailed information, including a comprehensivediscussion of these and other issues, please see:

-  EEOC's website at  www.eeoc.gov  for detailed information onEEO laws. Go to " Laws, Regulations and Policy Guidance "   for  ComplianceManual Sections  and  Enforcement Guidance .
 EEOC Enforcement Guidance, "
Application of Title VII andthe Americans with Disabilities Act to Conduct Overseas and toForeign Employers Discriminating in the United States
" (1993).
 EEOC Policy Guidance, "
Application of the AgeDiscrimination in Employment Act of 1967 and the Equal Pay Act of1963 to American Firms Overseas, Their Overseas Subsidiaries, andForeign Firms
" (1989).
 EEOC Policy Guidance: "
Analysis of the sec. 4(f)(1)'foreign laws' defense of the Age Discrimination in Employment Actof 1967
."

-  To be automatically connected to an EEOC field office,call: 1-800-669-4000 or TTY 1-800-669-6820
-  For more information on EEO law in other countries, see e.g. ,   - Directorate General for Employment and Social          Affairs for the European Union,            http://www.europa.eu.int/comm/employment_social/fundamental_rights/index_en.htm ;          
  - Canadian Human Rights Commission  http://www.chrc-ccdp.ca ; 
  - UK Equal Opportunities Commission  http://www.eoc.org.uk ; 
  - UK Disability Rights Commission,  http://www.drc-gb.org ;		   UK Commission on Racial Equality, http://www.cre.gov.uk; and		  Hong Kong Equal Opportunity Commission 
http://www.eoc.org.hk
   **Training and Outreach**  The EEOC engages in widespread training and outreach to educate employees and employers about their rights and responsibilitiesunder the EEO statutes. For information about upcoming programs,please contact an EEOC Outreach Program Coordinator.    *This page was last modified on April 28, 2003.*  Return to Home Page