Equal Employment Opportunity Commission v. Arabian American Oil Co.

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.