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Equal Employment Opportunity Commission v. Arabian American Oil Co.

U.S. Supreme CourtMarch 26, 1991No. 89-1838Cited 766 times
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Case Details

Judge(s)
Rehnquist, White, O'Connor, Kennedy, Souter, Scalia, Marshall, Blackmun, Stevens
Status — whether other courts must follow this ruling
Published
Procedural Posture — the stage the case had reached
Supreme Court decision affirming the principle that Title VII has no extraterritorial reach
Circuit
Federal Circuit

Related Laws

No specific laws identified for this ruling.

Outcome

The Supreme Court held that Title VII does not apply extraterritorially to U.S. employers' conduct abroad, ruling that the EEOC could not pursue discrimination claims against Arabian American Oil Co. for employment practices at its Saudi Arabian operations.

What This Ruling Means

**What This Case Was About** The Equal Employment Opportunity Commission (EEOC) sued Arabian American Oil Company over alleged race and religious discrimination. The company employed American workers at its operations in Saudi Arabia, and the EEOC claimed the company discriminated against these employees while they worked overseas. The key question was whether U.S. civil rights laws protect American workers when they're employed by U.S. companies in foreign countries. **What the Court Decided** The Supreme Court ruled against the EEOC in 1991. The Court decided that Title VII of the Civil Rights Act of 1964 does not apply to U.S. employers' actions in other countries. This means American companies operating abroad are not required to follow U.S. anti-discrimination laws for their overseas workplaces, even when employing American citizens. **What This Means for Workers** This ruling significantly limits protections for American workers employed overseas by U.S. companies. Workers cannot rely on federal civil rights laws like Title VII to protect them from discrimination while working abroad. However, workers may still have protections under the laws of the country where they're working, employment contracts, or other federal laws that specifically address overseas employment.

This summary was generated to explain the ruling in plain English and is not legal advice.

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