When culture and the law clash: A primer on the extraterritorial implications of U.S. anti-discrimination rules and regulations

The rapid globalization of U.S. business has generated many questions about the extraterritorial implications of U.S. anti-discrimination rules and regulations. This paper provides an introduction to the relevant statutes and related case law that govern the extraterritorial responsibilities of U.S. companies with interests in foreign firms. Particular attention is paid to the extraterritorial requirements of the Civil Rights Act of 1964, including important amendments to the Act added when Congress passed the Civil Rights Act of 1991. This paper also describes the defenses U.S. firms can use to insulate themselves from the extraterritorial requirements of these rules and regulations as well as issues and problems created when the cultural norms and customs of foreign countries clash with U.S. law. Suggestions are then made about how U.S. firms can meaningfully comply with the extraterritorial requirements of U.S. anti-discrimination rules and regulations. Finally, the paper examines legal and organizational issues that require further clarification and interpretation.

► Regulations that govern the extraterritorial rights of U.S. workers are examined. ► Defenses U.S. firms can use to insulate themselves from these rights are discussed. ► Special attention is paid to the clash between these rights and cultural norms.