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Dealing with Multinational Employers


As the workplace grows more global and mobile, increased numbers of employers have international operations, resulting in more international assignments of their employees. The following provides general guidance concerning employees' rights under the United States' equal employment opportunity laws (U.S. EEO laws) when working for multinational employers.

Work in the United States and U.S. Territories

All employees who work in the U.S. or its territories -- American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands -- for covered employers are protected by EEO laws, regardless of their citizenship or work authorization status. Employees who work in the U.S. or its territories are protected whether they work for a U.S. or foreign employer.

Example: Kim is a Chinese citizen working in the Commonwealth of the Northern Mariana Islands for a Chinese manufacturer of women's attire. Kim's manager threatens Kim with losing her job if she does not comply with his sexual demands. Kim is protected by U.S. EEO laws because she works in a U.S. territory. The employer can be held liable for sexual harassment.

Working for Non-U.S. Employers in the U.S

The only exception to the rule that employees working in the U.S. are covered by federal EEO laws occurs when the employer is not a U.S. employer and is subject to a treaty or other binding international agreement that permits the company to prefer its own nationals for certain positions.

Example: ABC Communications is an Egyptian Company doing business in the U.S. Under a "friendship, commerce and navigation treaty" ("FCN") between the U.S. and Egypt, Egyptian companies operating in the U.S. are authorized to hire Egyptian citizens for executive positions. Thomas, a U.S. citizen, alleges that he was subjected to national origin discrimination when he was denied a position as Vice President of Legislative Affairs in favor of Menkure, who is an Egyptian citizen. ABC Communications admits that it favored Menkure because he is an Egyptian citizen and can successfully assert the FCN treaty as a defense.

However, if Menkure were not an Egyptian citizen but a citizen of the U.S. or a third country, ABC would not have the treaty as a defense because the treaty authorizes a preference only for Egyptian citizens.

Source: U.S. Equal Employment Opportunity Commission

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