Does understanding the reach of U.S. law help corporations avoid inappropriate behavior overseas?
Cowman: Yes. The original Title VII was part of the Civil Rights Act of 1964, prohibiting employment discrimination on the basis of race, color, sex, religion, and national origin. When President Bush signed the Civil Rights Act of 1991, Title VII was changed to cover U.S. citizens working abroad for U.S.-controlled businesses. Aggrieved employees can file an EEOC charge here in the U.S. and file a lawsuit, in addition to making local claims under the host country’s law. Editor: What if the employer’s compliance with the U.S. law might violate local law? Cowman: There is a “foreign laws defense” section in Title VII. If a conflict of law arises where following Title VII would violate local law in a foreign country, the foreign law controls. There are nuances, of course, but that’s the basic direction of the law. Editor: What can be the consequences of multicountry reductions in force, restructurings, mergers and acquisitions or business combinations if the employment factors are not ha
