PRIA, Government Policy, Made Personal

Summary

Says certain parts of the law do not apply in two cases. An employer is not covered for hiring noncitizens who work outside any State. A religious group, school, or charity is not covered when it hires people of a particular religion to do work tied to its religious activities. It is not illegal under sections 2000e–2 or 2000e–3 for an employer (or related groups like a parent company, labor group, job agency, or training committee) to do something those sections would normally bar if following those sections would force them to break the law of the foreign country where the work is done. If a U.S. employer controls a company incorporated in a foreign country, the foreign company’s barred practices are treated as the employer’s. The rule does not cover foreign operations of a foreign employer that is not controlled by a U.S. employer. Control is decided by factors like how operations are linked, shared managers, who controls labor decisions, and shared ownership or financial control.

Title 42, §2000e–1

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Inapplicability of subchapter to certain aliens and employees of religious entities

This subchapter shall not apply to an employer with respect to the employment of aliens outside any State, or to a religious corporation, association, educational institution, or society with respect to the employment of individuals of a particular religion to perform work connected with the carrying on by such corporation, association, educational institution, or society of its activities.

(b)Compliance with statute as violative of foreign law

It shall not be unlawful under section 2000e–2 or 2000e–3 of this title for an employer (or a corporation controlled by an employer), labor organization, employment agency, or joint labor-management committee controlling apprenticeship or other training or retraining (including on-the-job training programs) to take any action otherwise prohibited by such section, with respect to an employee in a workplace in a foreign country if compliance with such section would cause such employer (or such corporation), such organization, such agency, or such committee to violate the law of the foreign country in which such workplace is located.

(c)Control of corporation incorporated in foreign country

(1)If an employer controls a corporation whose place of incorporation is a foreign country, any practice prohibited by section 2000e–2 or 2000e–3 of this title engaged in by such corporation shall be presumed to be engaged in by such employer.

(2)section 2000e–2 and 2000e–3 of this title shall not apply with respect to the foreign operations of an employer that is a foreign person not controlled by an American employer.

(3)For purposes of this subsection, the determination of whether an employer controls a corporation shall be based on—

(A)the interrelation of operations;

(B)the common management;

(C)the centralized control of labor relations; and

(D)the common ownership or financial control,

of the employer and the corporation.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1991—Pub. L. 102–166 designated existing provisions as subsec. (a) and added subsecs. (b) and (c). 1972—Pub. L. 92–261 reenacted section catchline without change and amended text generally. Prior to amendment, text read as follows: “This subchapter shall not apply to an employer with respect to the employment of aliens outside any State, or to a religious corporation, association, or society with respect to the employment of individuals of a particular religion to perform work connected with the carrying on by such corporation, association, or society of its religious activities or to an educational institution with respect to the employment of individuals to perform work connected with the educational activities of such institution.”

Statutory Notes and Related Subsidiaries

Effective Date

of 1991 AmendmentAmendment by Pub. L. 102–166 inapplicable to conduct occurring before Nov. 21, 1991, see section 109(c) of Pub. L. 102–166, set out as a note under section 2000e of this title.

§2000e–1 Exemption