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Tethered Rights: Liability of American Corporations for Their Foreign Subsidiaries’ Violations of Title VII

On Behalf of | Oct 28, 2019 | Firm News

Goldman & Ehrlich is pleased to announce that our associate, Sam Sedaei, recently had an article published in the American Bar Association Journal.

Tethered Rights: Liability of American Corporations for Their Foreign Subsidiaries’ Violations of Title VII

Corporations in the free marketplace constantly look for ways to secure advantages over their competitors. As the global economy becomes more integrated, free market competition has led corporations to expand beyond their borders.

  • As part of this trend, an increasing number of American companies are establishing an international presence through mergers and acquisitions.
  • Whether the goal is to benefit from cheap labor?
  • Gain access to talent.
  • Gain access to new markets.
  • Isolate risk.
  • Companies have to navigate international laws in a variety of areas.
  • An area of the law that is becoming growingly relevant to globalizing companies is employment law. Title VII of the Civil Rights Act of 1964 (Title VII) is generally seen among most American employment law practitioners as the most fundamental transformation of employees’ rights in the United States in the twentieth century.
  • 7 Title VII prohibits discrimination in the workplace on the basis of race, color, religion, sex, and national origin.
  • 8 Since its inception over fifty years ago; Title VII has been amended by the United States Congress a number of times; and interpreted by the courts hundreds of times, in ways that have changed its reach and applicability.

As global commerce continues to intersect with employment law; American courts growingly find themselves in the position of having to decide the global reach of Title VII; and its capacity to protect employees’ rights beyond American borders.

As this article will explain; an American parent corporation may be held liable for the actions of its foreign subsidiary under Title VII if the plaintiff is a U.S. citizen and the American parent controls the foreign subsidiary. The article begins with a discussion of the extraterritoriality of Title VII prior to 1991 through an analysis of the text of the statute and judicial interpretations. It will then analyze the changes made to the statute in 1991; to expand its applicability beyond U.S. borders and the courts’ application of the revised statute to scenarios involving international plaintiffs. The article will conclude by offering a few practice pointers for plaintiffs seeking to enforce their rights outside of the United States; U.S. corporations and their subsidiaries that wish to limit their liability under Title VII; and courts that have to grapple with threshold jurisdictional issues in international Title VII cases.

Here is full access to: Tethered Rights: Liability of American Corporations for Their Foreign Subsidiaries’ Violations of Title VII by Sam Sedaei

Goldman & Ehrlich is a Chicago employment law firm which concentrates on employment litigation and employment discrimination. We represent private employees. As well as, Federal, State, County and Municipal employees. Along with small businesses in Chicago, the surrounding counties and southwestern Michigan. This includes all actions alleging violations of federal and state laws. What sets our Chicago employment lawyers apart is our vast experience and continued practice on both the plaintiff and defendant sides of employment law cases. We have the insight to anticipate the claims. And importantly, we can analyze the tactics from your opponent building your case to withstand arguments against you.

To effectively resolve your employment issues and take preventative action against future claims, call Goldman & Ehrlich at 312-332-6733 today or contact our office online.