Employees who work for you on overseas jobs are generally covered by state and federal anti-discrimination laws. But suppose a foreign client wants one of your employees off the job for reasons that violate U.S. employment laws. You could be faced with having to change the employee’s assignment or lose your client. Bechtel Corp. ran into this problem when a foreign government wouldn’t permit an older employee to remain on the job. We”ll tell you what happened.
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Saudi Commission Instructs Firm To Fire Older Worker
William West, 62, was a Bechtel engineer for more than 33 years when the company selected him to lead an engineering team on a $40 billion project in Saudi Arabia. Bechtel’s client was the Royal Commission for Jubail and Yanbu, an arm of the Saudi government. West, who was close to retirement, considered the position the final “jewel” in the “crown” of his successful career. He anticipated earning about $240,000 during the project’s two-year duration.When West arrived in Saudi Arabia, project director Norm Shotwell, who worked for Saudi Arabia Bechtel Co., remarked that West was going to have a problem because his gray hair showed he was over age 50 and the Royal Commission regarded older workers with suspicion. A few weeks later, the Royal Commission directed Shotwell, who had recruited West for the assignment, to fire him. Shotwell informed West of the commission’s decision and told him that it was because of his age. Shotwell said there was no recourse.When West returned from Saudi Arabia, Bechtel made him numerous other employment offers. West turned them all down and eventually retired.
Employee Charges Age Bias
West sued Bechtel for age discrimination. Bechtel argued that any discrimination was committed by the Saudi Arabian government and couldn’t be imputed to Bechtel. But a jury found in West’s favor and awarded him about $100,000.
Older Worker Can’t Sue Over Foreign Government’s Bias
Now a California Court of Appeal has thrown out the jury verdict. The court ruled that Bechtel project director Shotwell could not be held responsible for the Saudi government’s bias. There was no evidence that Shotwell thought West was too old for the assignment. And, the court said, if Shotwell was biased against West because of his age, he wouldn’t have tapped West in the first place. The court also explained that Shotwell had no choice but to remove West from the project at the Royal Commission’s insistence because his presence in the country was contingent on Saudi government approval.
Sensible Strategies
State and federal anti-bias laws generally apply to U.S. citizens who are employed overseas by U.S. companies. However, although the court in the Bechtel case didn’t explore this issue, it’s not illegal to take an action against an overseas employee that would otherwise violate American anti-bias laws—including age discrimination rules—if compliance with them would cause you to violate the foreign country’s laws.Under these circumstances, it’s important to avoid any suggestion that you participated in the discrimination. Therefore, instruct supervisors not to make negative statements relating to age or another protected status. And, as the Bechtel case pointed out, having the same person responsible for hiring and firing the complaining employee can undermine a claim that you were biased.