Foreign multinational enterprises operating in the United States seek sanctuary from Title VII employment discrimination charges in treaties of friendship, commerce, and navigation

Abstract

International commercial treaties create rights for businesses of signatory countries freedom of selection for its executive employees, typically from their own countries, to be placed in subsidiaries in other countries. This freedom of selection is a recognized exemption within Treaties of Friendship, Commerce and Navigation on the theory that such latitude encourages direct foreign investment as businesses have control over their key personnel abroad. However, the breadth of this latitude is in question in light of potential conflicts with home rule statutes, including Title VII rights of U.S. nationals who compete for jobs within in U.S.-incorporated subsidiaries of foreign multinational enterprises. The authors note that there currently is a difference of opinion among the courts regarding the interrelationship between the treaties and the antidiscrimination laws, and businesses should consider this as they staff offices with key personnel.