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[ Footnote * ] Together with No. 89-1845, Boureslan v. Arabian American Oil Co., et al., also on certiorari to the same court.
Petitioner Boureslan, a naturalized United States citizen born in Lebanon and working in Saudi Arabia, was discharged by his employer, respondent Arabian American Oil Company, a Delaware corporation. After filing a charge with petitioner Equal Employment Opportunity Commission (EEOC), he instituted suit in the District Court, seeking relief under, inter alia, Title VII of the Civil Rights Act of 1964, on the ground that he had been discriminated against because of his race, religion, and national origin. In dismissing this claim, the court ruled that it lacked subject matter jurisdiction because Title VII's protections do not extend to United States citizens employed abroad by American employers. The Court of Appeals affirmed.
Held:
Title VII does not apply extraterritorially to regulate the employment practices of United States firms that employ American citizens abroad. Petitioners' evidence, while not totally lacking in probative value, falls short of demonstrating the clearly expressed affirmative congressional intent that is required to overcome the well-established presumption against statutory extraterritoriality. Pp. 249-259.
(a) Petitioners argue unpersuasively that Title VII's "broad jurisdictional language" - which extends the Act's protections to commerce "between a State and any place outside thereof" - evinces a clear intent to legislate extraterritorially. The language relied on is ambiguous, does not speak directly to the question presented here, and constitutes boilerplate language found in any number of congressional Acts, none of which have been held to apply overseas. Petitioners' argument also finds no support in this Court's decisions, which have repeatedly held that even statutes containing broad language in their definitions of "commerce" that expressly refer to "foreign commerce" do not apply abroad. See, e. g., McCulloch v. Sociedad Nacional de Marineros de Honduras,
(b) Petitioners also argue unpersuasively that Title VII's "alien exemption" clause - which renders the statute inapplicable "to an employer with respect to the employment of aliens outside any State" - clearly manifests the necessary congressional intent to cover employers of United States citizens working abroad. If petitioners were correct, there would be no statutory basis for distinguishing between American employers and foreign employers. Absent clearer evidence of congressional intent, this Court is unwilling to ascribe to Congress a policy which would raise difficult international law issues by imposing this country's employment discrimination regime upon foreign corporations operating in foreign commerce. This conclusion is fortified by other factors suggesting a purely domestic focus, including Title VII's failure even to mention foreign nations or proceedings, despite a number of provisions indicating a concern that the sovereignty and laws of States not be unduly interfered with, and the Act's failure to provide any mechanisms for its overseas enforcement. It is also reasonable to conclude that, had Congress intended Title VII to apply overseas, it would have addressed the subject of conflicts with foreign laws and procedures, as it did in amending the Age Discrimination in Employment Act of 1967 (ADEA) to apply abroad. Pp. 253-256.
(c) Petitioners' contention that this Court should defer to the EEOC's position that Title VII applies abroad is rejected. The EEOC's interpretation does not fare well under the deference standards set forth in General Electric Co. v. Gilbert,
(d) Congress' awareness of the need to make a clear statement that a statute applies overseas is amply demonstrated by the numerous occasions on which it has legislated extraterritoriality, including its amendment of the ADEA. Congress may similarly amend Title VII, and, in doing so, will be able to calibrate its provisions in a way that this Court cannot. Pp. 258-259.
892 F.2d 1271 (CA 5 1990), affirmed.
REHNQUIST, C.J., delivered the opinion of the Court, in which WHITE, O'CONNOR, KENNEDY, and SOUTER, JJ., joined. SCALIA, J., filed an opinion [499 U.S. 244, 246] concurring in part and concurring in the judgment, post, p. 259. MARSHALL, J., filed a dissenting opinion, in which BLACKMUN and STEVENS, JJ., joined post, p. 260.
Solicitor General Starr argued the cause for petitioners in both cases. With him on the briefs for petitioner in No. 89-1838 were Assistant Attorney General Dunne, Deputy Solicitor General Roberts, Stephen L. Nightingale, Donald R. Livingston, and Gwendolyn Young Reams. Michael A. Maness and Gerald M. Birnberg filed a brief for petitioner in No. 89-1845.
Paul L. Friedman argued the cause for respondents in both cases. With him on the brief were Thomas J. O'Sullivan, Anne D. Smith, John D. Roady, V. Scott Kneese, and Gregory B. Richards.Fn
Fn [499 U.S. 244, 246] Briefs of amici curiae urging reversal were filed for the American Civil Liberties Union et al. by Jane M. Picker, Sidney Picker, Jr., Isabelle Katz Pinzler, and John A. Powell; for the International Human Rights Law Group by Robert Plotkin and Steven M. Schneebaum; for the Lawyers' Committee for Civil Rights Under Law by Gary B. Born, Robert F. Mullen, David S. Tatel, Norman Redlich, Thomas J. Henderson, and Richard T. Seymour; and for NAACP Legal Defense and Educational Fund, Inc., et al., by Julius LeVonne Chambers and Charles Stephen Ralston.
Briefs of amici curiae urging affirmance were filed for the Equal Employment Advisory Council by Robert E. Williams, Douglas S. McDowell, and Edward E. Potter; for the Rule of Law Committee et al. by Cecil J. Olmstead; for the Society for Human Resources Management by Kenneth Kirschner, John E. Parauda, and Lawrence Z. Lorber; and for the Washington Legal Foundation by Jeffrey I. Zuckerman, Daniel J. Popeo, and Paul D. Kamenar.
CHIEF JUSTICE REHNQUIST delivered the opinion of the Court.
These cases present the issue whether Title VII applies extraterritorially to regulate the employment practices of United States employers who employ United States citizens abroad. The United States Court of Appeals for the Fifth [499 U.S. 244, 247] Circuit held that it does not, and we agree with that conclusion.
Petitioner Boureslan is a naturalized United States citizen who was born in Lebanon. The respondents are two Delaware corporations, Arabian. American Oil Company (Aramco), and its subsidiary, Aramco Service Company (ASC). Aramco's principal place of business is Dhahran, Saudi Arabia, and it is licensed to do business in Texas. ASC's principal place of business is Houston, Texas.
In 1979, Boureslan was hired by ASC as a cost engineer in Houston. A year later, he was transferred, at his request, to work for Aramco in Saudi Arabia. Boureslan remained with Aramco in Saudi Arabia until he was discharged in 1984. After filing a charge of discrimination with the Equal Employment Opportunity Commission (EEOC), he instituted this suit in the United States District Court for the Southern District of Texas against Aramco and ASC. He sought relief under both state law and Title VII of the Civil Rights Act of 1964, 78 Stat. 243, as amended, 42 U.S.C. 2000e-2000e-17, on the ground that he was harassed and ultimately discharged by respondents on account of his race, religion, and national origin.
Respondents filed a motion for summary judgment on the ground that the District Court lacked subject matter jurisdiction over Boureslan's claim because the protections of Title VII do not extend to United States citizens employed abroad by American employers. The District Court agreed, and dismissed Boureslan's Title VII claim; it also dismissed his state law claims for lack of pendent jurisdiction, and entered final judgment in favor of respondents. A panel for the Fifth Circuit affirmed. After vacating the panel's decision and rehearing the case en banc, the court affirmed the District Court's dismissal of Boureslan's complaint. Both Boureslan and the EEOC petitioned for certiorari. We granted both petitions for certiorari to resolve this important issue of statutory interpretation. [499 U.S. 244, 248]
Both parties concede, as they must, that Congress has the authority to enforce its laws beyond the territorial boundaries of the United States. Cf. Foley Bros., Inc. v. Filardo,
It is a longstanding principle of American law "that legislation of Congress, unless a contrary intent appears, is meant to apply only within the territorial jurisdiction of the United States." Foley Bros.,
In applying this rule of construction, we look to see whether
language in the [relevant act] gives any indication of a congressional purpose to extend its coverage beyond places over which the United States has sovereignty or has some measure of legislative control. Foley Bros.,
Boureslan and the EEOC contend that the language of Title VII evinces a clearly expressed intent on behalf of Congress to legislate extraterritorially. They rely principally on two provisions of the statute. First, petitioners argue that the statute's definitions of the jurisdictional terms [499 U.S. 244, 249] "employer" and "commerce" are sufficiently broad to include U.S. firms that employ American citizens overseas. Second, they maintain that the statute's "alien exemption" clause, 42 U.S.C. 2000e-1, necessarily implies that Congress intended to protect American citizens from employment discrimination abroad. Petitioners also contend that we should defer to the EEOC's consistently held position that Title VII applies abroad. We conclude that petitioners' evidence, while not totally lacking in probative value, falls short of demonstrating the affirmative congressional intent required to extend the protections of the Title VII beyond our territorial borders.
Title VII prohibits various discriminatory employment practices based on an individual's race, color, religion, sex, or national origin. See 2000e-2, 2000e-3. An employer is subject to Title VII if it has employed 15 or more employees for a specified period and is "engaged in an industry affecting commerce." An industry affecting commerce is "any activity, business, or industry in commerce or in which a labor dispute would hinder or obstruct commerce or the free flow of commerce and includes any activity or industry "affecting commerce" within the meaning of the Labor-Management Reporting and Disclosure Act of 1959 [(LMRDA)] [29 U.S.C. 401 et seq.]. 2000e(h). "Commerce," in turn, is defined as trade, traffic, commerce, transportation, transmission, or communication among the several States; or between a State and any place outside thereof; or within the District of Columbia, or a possession of the United States; or between points in the same State but through a point outside thereof." 2000e(g).
Petitioners argue that, by its plain language, Title VII's "broad jurisdictional language" reveals Congress's intent to extend the statute's protections to employment discrimination anywhere in the world by a U.S. employer who affects trade "between a State and any place outside thereof." More precisely, they assert that, since Title VII [499 U.S. 244, 250] defines "States" to include States, the District of Columbia, and specified territories, the clause "between a State and any place outside thereof" must be referring to areas beyond the territorial limit of the United States. Reply Brief for Petitioner 3.
Respondents offer several alternative explanations for the statute's expansive language. They contend that the "or between a State and any place outside thereof" clause "provide[s] the jurisdictional nexus required to regulate commerce that is not wholly within a single state, presumably as it affects both interstate and foreign commerce" but not to "regulate conduct exclusively within a foreign country." Brief for Respondents 21, n. 14. They also argue that, since the definitions of the terms "employer," "commerce," and "industry affecting commerce" make no mention of "commerce with foreign nations," Congress cannot be said to have intended that the statute apply overseas. In support of this argument, petitioners point to Title II of the Civil Rights Act of 1964, governing public accommodation, which specifically defines commerce as it applies to foreign nations. Finally, respondents argue that, while language present in the first bill considered by the House of Representatives contained the terms "foreign commerce" and "foreign nations," those terms were deleted by the Senate before the Civil Rights Act of 1964 was passed. They conclude that these deletions "[are] inconsistent with the notion of a clearly expressed congressional intent to apply Title VII extraterritorially." Brief for Respondents 7.
We need not choose between these competing interpretations, as we would be required to do in the absence of the presumption against extraterritorial application discussed above. Each is plausible, but no more persuasive than that. The language relied upon by petitioners - and it is they who must make the affirmative showing - is ambiguous, and does not speak directly to the question presented here. The intent of Congress as to the extraterritorial application of this [499 U.S. 244, 251] statute must be deduced by inference from boilerplate language which can be found in any number of congressional acts, none of which have ever been held to apply overseas. See, e.g., Consumer Product Safety Act, 15 U.S.C. 2052(a) (12); Federal Food, Drug, and Cosmetic Act, 21 U.S.C. 321(b); Transportation Safety Act of 1974, 49 U.S.C.App. 1802(1); Labor-Management Reporting and Disclosure Act of 1959, 29 U.S.C. 401 et seq.; Americans with Disabilities Act of 1990, 42 U.S.C. 12101, et seq.
Petitioners' reliance on Title VII's jurisdictional provisions also finds no support in our case law; we have repeatedly held that even statutes that contain broad language in their definitions of "commerce" that expressly refer to "foreign commerce" do not apply abroad. For example, in New York Central R. Co. v. Chisholm,
Similarly, in McCulloch v. Sociedad Nacional de Marineros de Honduras,
The EEOC places great weight on an assertedly similar "broad jurisdictional grant in the Lanham Act" that this Court held applied extraterritorially in Steele v. Bulova Watch Co.,
The EEOC's attempt to analogize this case to Steele is unpersuasive. The Lanham Act, by terms, applies to "all commerce which may lawfully be regulated by Congress." The Constitution gives Congress the power "[t]o regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." U.S. Const., Art. I, 8, cl. 3. Since the Act expressly stated that it applied to the extent of Congress's power over commerce, the Court in Steele concluded that Congress intended that the statute apply abroad. By contrast, Title VII's more limited boilerplate "commerce" language does not support such an expansive construction of congressional intent. Moreover, unlike [499 U.S. 244, 253] the language in the Lanham Act, Title VII's definition of "commerce" was derived expressly from the LMRDA, a statute that this Court had held, prior to the enactment of Title VII, did not apply abroad. McCulloch, supra, at 15.
Thus, petitioner's argument based on the jurisdictional language of Title VII fails both as a matter of statutory language and of our previous case law. Many acts of Congress are based on the authority of that body to regulate commerce among the several States, and the parts of these acts setting forth the basis for legislative jurisdiction will obviously refer to such commerce in one way or another. If we were to permit possible, or even plausible interpretations of language such as that involved here to override the presumption against extraterritorial application, there would be little left of the presumption.
Petitioners argue that Title VII's "alien exemption provision," 42 U.S.C. 2000e-1, "clearly manifests an intention" by Congress to protect U.S. citizens with respect to their employment outside of the United States. The alien exemption provision says that the statute "shall not apply to an employer with respect to the employment of aliens outside any State." 2000e-1. Petitioners contend that, from this language, a negative inference should be drawn that Congress intended Title VII to cover United States citizens working abroad for United States employers. There is "[no] other plausible explanation [that] the alien exemption exists," they argue, because, "[i]f Congress believed that the statute did not apply extraterritorially, it would have had no reason to include an exemption for a certain category of individuals employed outside the United States." Brief for Petitioner in No. 89-1838, pp. 12-13. Since "[t]he statute's jurisdictional provisions cannot possibly be read to confer coverage only upon aliens employed outside the United States," petitioners conclude that Congress could not rationally have enacted an exemption for the employment of aliens abroad if it intended to foreclose [499 U.S. 244, 254] all potential extraterritorial applications of the statute. Id., at 13.
Respondents resist petitioners' interpretation of the alien exemption provision, and assert two alternative raisons d'etre for that language. First, they contend that, since aliens are included in the statute's definition of employee,
*
and the definition of commerce includes possessions as well as "States," the purpose of the exemption is to provide that employers of aliens in the possessions of the United States are not covered by the statute. Thus, the "outside any State" clause means outside any State, but within the control of the United States. Respondents argue that "[t]his reading of the alien exemption provision is consistent with and supported by the historical development of the provision" because Congress' inclusion of the provision was a direct response to this Court's interpretation of the term "possessions" in the Fair Labor Standards Act in Vermilya-Brown Co. v. Connell,
Second, respondents assert that, by negative implication, the exemption "confirm[s] the coverage of aliens in the United States." Id., at 26. They contend that this interpretation
[499
U.S. 244, 255]
is consistent with our conclusion in Espinoza v. Farah Mfg. Co.,
If petitioners are correct that the alien exemption clause means that the statute applies to employers overseas, we see no way of distinguishing in its application between United States employers and foreign employers. Thus, a French employer of a United States citizen in France would be subject to Title VII - a result at which even petitioners balk. The EEOC assures us that, in its view, the term "employer" means only "American employer," but there is no such distinction in this statute, and no indication that EEOC, in the normal course of its administration, had produced a reasoned basis for such a distinction. Without clearer evidence of congressional intent to do so than is contained in the alien exemption clause, we are unwilling to ascribe to that body a policy which would raise difficult issues of international law by imposing this country's employment discrimination regime upon foreign corporations operating in foreign commerce.
This conclusion is fortified by the other elements in the statute suggesting a purely domestic focus. The statute as a whole indicates a concern that it not unduly interfere with the sovereignty and laws of the States. See, e.g., 42 U.S.C. 2000h-4 (stating that Title VII should not be construed to exclude the operation of state law or invalidate any state law unless inconsistent with the purposes of the act); 2000e-5 (requiring the EEOC to accord substantial weight to findings of state or local authorities in proceedings under state or local law); 2000e-7 (providing that nothing in Title VII shall affect the application of state or local law unless such law requires or permits practices that would be unlawful under Title VII); 2000e-5(c), (d), and (e) (provisions addressing deferral to state discrimination proceedings). [499 U.S. 244, 256] While Title VII consistently speaks in terms of "States" and state proceedings, it fails even to mention foreign nations or foreign proceedings.
Similarly, Congress failed to provide any mechanisms for overseas enforcement of Title VII. For instance, the statute's venue provisions, 2000e-5(f)(3), are ill-suited for extraterritorial application, as they provide for venue only in a judicial district in the state where certain matters related to the employer occurred or were located. And the limited investigative authority provided for the EEOC, permitting the Commission only to issue subpoenas for witnesses and documents from "anyplace in the United States or any Territory or possession thereof," 2000e-9, suggests that Congress did not intend for the statute to apply abroad.
It is also reasonable to conclude that, had Congress intended Title VII to apply overseas, it would have addressed the subject of conflicts with foreign laws and procedures. In amending the Age Discrimination in Employment Act of 1967, 81 Stat. 602, as amended, 29 U.S.C. 621 et seq. (ADEA), to apply abroad, Congress specifically addressed potential conflicts with foreign law by providing that it is not unlawful for an employer to take any action prohibited by the ADEA "where such practices involve an employee in a workplace in a foreign country, and compliance with [the ADEA] would cause such employer . . . to violate the laws of the country in which such workplace is located." 29 U.S.C. 623(f)(1). Title VII, by contrast, fails to address conflicts with the laws of other nations.
Finally, the EEOC, as one of the two federal agencies with primary responsibility for enforcing Title VII, argues that we should defer to its "consistent" construction of Title VII, first formally expressed in a statement issued after oral argument but before the Fifth Circuit's initial decision in this case, Policy Statement No. N-915.033, EEOC Compl.Man. (BNA) 605:0055 (Apr. 1989), "to apply to discrimination against [499 U.S. 244, 257] American citizens outside the United States." Brief for Petitioner in No. 891838, p. 22. Citing a 1975 letter from the EEOC's General Counsel, 1983 testimony by its Chairman, and a 1985 decision by the Commission, it argues that its consistent administrative interpretations "reinforce" the conclusion that Congress intended Title VII to apply abroad.
In General Electric Co. v. Gilbert,
The EEOC's interpretation does not fare well under these standards. As an initial matter, the position taken by the Commission "contradicts the position which [it] had enunciated at an earlier date, closer to the enactment of the governing statute." General Electric Co., supra,
Our conclusion today is buttressed by the fact that "[w]hen it desires to do so, Congress knows how to place the high seas within the jurisdictional reach of a statute." Argentine Republic v. Amerada Hess Shipping Corp.,
Petitioners have failed to present sufficient affirmative evidence that Congress intended Title VII to apply abroad. Accordingly, the judgment of the Court of Appeals is
Affirmed.
[ Footnote * ] Title VII defines "employee" as:
an individual employed by an employer, except that the term "employee" shall not include any person elected to public office in any State or political subdivision of any State by the qualified voters thereof, or any person chosen by such officer to be on such officer's personal staff, or an appointee on the policy making level or an immediate adviser with respect to the exercise of the constitutional or legal powers of the office. The exemption set forth in the preceding sentence shall not include employees subject to the civil service laws of a State government, government agency or political subdivision. 42 U.S.C. 2000e(f).
JUSTICE SCALIA, concurring in part and concurring in the judgment.
I join the judgment of the Court, and its opinion except that portion, ante, at 256-258, asserting that the views of the Equal Employment Opportunity Commission - not only with respect to the particular point at issue here but apparently as a general matter - are not entitled to the deference normally accorded administrative agencies under Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.,
In an era when our treatment of agency positions is governed by Chevron, the "legislative rules vs. other action" dichotomy of Gilbert is an anachronism; and it is not even a correct description of that anachronism to say that Gilbert held that the EEOC (as opposed to all agency action other than legislative rules) is not entitled to deference. We recognized that only three years ago, in EEOC v. Commercial Office Products Co.,
I would resolve these cases by assuming, without deciding, that the EEOC was entitled to deference on the particular point in question. But deference is not abdication, and it requires us to accept only those agency interpretations that are reasonable in light of the principles of construction courts normally employ. Given the presumption against extraterritoriality that the Court accurately describes, and the requirement that the intent to overcome it be "clearly expressed," it is, in my view, not reasonable to give effect to mere implications from the statutory language, as the EEOC has done. Cf. Sunstein, Law and Administration after Chevron, 90 Colum.L.Rev. 2071, 2114 (1990).
On all other points, I join the opinion of the Court.
JUSTICE MARSHALL, with whom JUSTICE BLACKMUN and JUSTICE STEVENS join, dissenting.
Like any issue of statutory construction, the question whether Title VII protects United States citizens from discrimination by United States employers abroad turns solely on congressional intent. As the majority recognizes, our inquiry
[499
U.S. 244, 261]
into congressional intent in this setting is informed by the traditional "canon of construction which teaches that legislation of Congress, unless a contrary intent appears, is meant to apply only within the territorial jurisdiction of the United States." Foley Bros., Inc. v. Filardo,
Because it supplies the driving force of the majority's analysis, I start with [t]he canon . . . that legislation of Congress, unless a contrary intent appears, is meant to apply only within the territorial jurisdiction of the United States. Ibid. The majority recasts this principle as "the need to make a clear statement that a statute applies overseas." Ante, at 258 (emphasis added). So conceived, the presumption against extraterritoriality allows the majority to derive meaning from various instances of statutory silence - from Congress' failure, for instance, "to mention foreign nations or foreign proceedings," ante, at 256, "to provide any mechanisms for overseas enforcement," ibid., or to "addres[s] the subject of conflicts with foreign laws and procedures," ante, at 256. At other points, the majority relies on its reformulation of the presumption to avoid the "need [to] choose between . . . competing interpretations" of affirmative statutory [499 U.S. 244, 262] language that the majority concludes "does not speak directly to the question" of extraterritoriality. Ante, at 250 (emphasis added). In my view, the majority grossly distorts the effect of this rule of construction upon conventional techniques of statutory interpretation.
Our most extensive discussion of the presumption against extraterritoriality can be found in Foley Brothers, supra. The issue in that case was whether the Eight Hour Law - a statute regulating the length of the workday of employees hired to perform contractual work for the United States - applied to construction projects in foreign nations. After noting "the assumption that Congress is primarily concerned with domestic conditions," the Court concluded that there was nothing in the Act itself, as amended, nor in the legislative history, which would lead to the belief that Congress entertained any intention other than the normal one in this case.
The range of factors that the Court considered in Foley Brothers demonstrates that the presumption against extraterritoriality is not a "clear statement" rule. Clear-statement rules operate less to reveal actual congressional intent than to shield important values from an insufficiently strong legislative intent to displace them. See, e. g., Webster v. Doe,
The majority converts the presumption against extraterritoriality into a clear statement rule in part through selective quotation. Thus, the majority reports that the Court in New York Central R. Co. v. Chisholm,
The majority also overstates the strength of the presumption by drawing on language from cases involving a wholly independent rule of construction: "that `an act of congress ought never to be construed to violate the law of nations if any other possible construction remains. . . .'" McCulloch v. Sociedad Nacional, supra,
Far from equating Benz and McCulloch's clear statement rule with Foley's presumption against extraterritoriality, the Court has, until now, recognized that Benz and McCulloch are reserved for settings in which the extraterritorial application of a statute would "implicat[e] sensitive issues of the authority of the Executive over relations with foreign nations." NLRB v. Catholic Bishop of Chicago,
Because petitioners advance a construction of Title VII that would extend its extraterritorial reach only to United States nationals, it is the weak presumption of Foley Brothers, not the strict clear statement rule of Benz and McCulloch, [499 U.S. 244, 266] that should govern our inquiry here. Under Foley Brothers, a court is not free to invoke the presumption against extraterritoriality until it has exhausted all available indicia of Congress' intent on this subject. Once these indicia are consulted and given effect in this case, I believe there can be no question that Congress intended Title VII to protect United States citizens from discrimination by United States employers abroad.
Title VII states:
These terms are broad enough to encompass discrimination by United States employers abroad. Nothing in the text of the statute indicates that the protection of an "individual" from employment discrimination depends on the location of that individual's workplace; nor does anything in the statute indicate that employers whose businesses affect commerce "between a State and any other place outside thereof" are exempted when their discriminatory conduct occurs beyond the Nation's borders. While conceding that it is "plausible" to infer from the breadth of the statute's central prohibition that Congress intended Title VII to apply extraterritorially, [499 U.S. 244, 267] ante, at 250, the majority goes to considerable lengths to show that this language is not sufficient to overcome the majority's clear statement conception of the presumption against extraterritoriality. However, petitioners claim no more - and need claim no more, given additional textual evidence of Congress' intent - than that this language is consistent with a legislative expectation that Title VII apply extraterritorially, a proposition that the majority does not dispute.
Confirmation that Congress did, in fact expect Title VII's central prohibition to have an extraterritorial reach is supplied by the so-called "alien exemption" provision. The alien exemption provision states that Title VII "shall not apply to an employer with respect to the employment of aliens outside any State." 42 U.S.C. 2000e-1 (emphasis added). 3 Absent an intention that Title VII apply "outside any State," Congress would have had no reason to craft this extraterritorial exemption. And because only discrimination against aliens is exempted, employers remain accountable for discrimination against United States citizens abroad.
The inference arising from the alien exemption provision is more than sufficient to rebut the presumption against extraterritoriality. Compare Pennsylvania v. Union Gas Co.,
The history of the alien exemption provision confirms the inference that Congress expected Title VII to have extraterritorial application. As I have explained the Court, in Foley Brothers declined to construe the Eight Hour Law to apply extraterritorially in large part because of "[t]he absence of any distinction between citizen and alien labor" under the Law:
Notwithstanding the basic rule of construction requiring courts to give effect to all of the statutory language, see Reiter v. Sonotone Corp.,
The first is the suggestion that the alien exemption provision indicates, by negative implication, merely that aliens are covered by Title VII if they are employed in the United States. This construction hardly makes sense of the statutory language as a whole; indeed, it hardly makes sense. Under respondent's construction of the statute, no one - neither citizen nor alien - is protected from discrimination abroad. Thus, in order to credit respondent's interpretation of the alien exemption provision, we must attribute to Congress a decision to enact a completely superfluous exemption solely as a means of signaling its intent that aliens be protected from employment discrimination in this Nation. In addition to being extremely improbable, such a legislative subterfuge would have been completely unnecessary, for as we indicated in Espinoza v. Farah Mfg. Co.,
Respondent's second explanation is that Congress included the alien exemption provision in anticipation that courts would otherwise construe Title VII to apply to companies employing aliens in United States "possessions," an outcome supposedly dictated by this Court's decision in Vermilya-Brown Co. v. Connell,
Rather than attempting to reconcile its interpretation of Title VII with the language and legislative history of the alien exemption provision, the majority contents itself with pointing out various legislative silences that, in the majority's view, communicate a congressional intent to limit Title VII to instances of domestic employment discrimination. In particular, the majority claims that, had Congress intended to give Title VII an extraterritorial reach, it "would have addressed the subject of conflicts with foreign laws and procedures," ante, at 256, and would have "provide[d] . . . mechanisms for overseas enforcement," including special venue provisions and extraterritorial investigatory powers for the Equal Employment Opportunity Commission (EEOC), see ibid. The majority also emphasizes Congress' failure to draw an express distinction between extraterritorial application of Title VII to United States employers and extraterritorial application of Title VII to foreign employers. See ante, at 255. In my view, none of these supposed omissions detracts from the conclusion that Congress intended Title VII to apply extraterritorially. [499 U.S. 244, 272]
The majority is simply incorrect in its claim that Congress disregarded the subject of conflicts with foreign law. Congress addressed this concern by enacting the alien exemption provision, the announced purpose of which was "to remove conflicts of law which might otherwise exist between the United States and a foreign nation in the employment of aliens outside the United States by an American enterprise. H.R.Rep. No. 570, at 4, reprinted in Civil Rights Hearings, at 2303 (emphasis added). As I have explained, the alien exemption provision is tailored to avert the very type of potential conflict that prevented the Court from construing the Eight Hour Law to apply extraterritorially in Foley Brothers. Congress could have gone further in addressing the topic of conflicts, but it is not our position to second-guess the balance struck by Congress in this respect.
The majority also misrepresents the character of Title VII's venue provisions. Title VII provides that venue is proper in various districts related to the underlying charge of discrimination, but also states that
Title VII does limit the reach of the subpoena power of the EEOC, see 2000e-9; 29 U.S.C. 161(1), but this limitation does not detract from the potential extraterritorial reach of the agency's investigatory powers. See FTC v. Compagnie De Saint-Gobain-Pont-A-Mousson, 205 U.S. App. D.C. 172, 194, 636 F.2d 1300, 1322 (1980) (territorial limitation on subpoena power does not prevent extraterritorial investigations). Moreover, Congress has also declined to give extraterritorial-subpoena power to either the EEOC under the Age Discrimination in Employment Act (ADEA), 29 U.S.C. 209, 626(a); 15 U.S.C. 49, or to the Securities and Exchange Commission under the Securities Exchange Act of 1934, 15 U.S.C. 78u(b), even though the former statute expressly applies abroad, 29 U.S.C. 623(h)(1), 630(f), 7 and the latter is widely recognized as doing so, see [499 U.S. 244, 274] Turley, "When in Rome": Multinational Misconduct and the Presumption against Extraterritoriality, 84 Nw.U.L.Rev. 598, 613-617 (1990). In short, there simply is no correlation between the scope of an agency's subpoena power and the extraterritorial reach of the statute that the agency is charged with enforcing.
Finally, the majority overstates the importance of Congress' failure expressly to disclaim extraterritorial application of Title VII to foreign employers. As I have discussed, our cases recognize that application of United States law to United States nationals abroad ordinarily raises considerably less serious questions of international comity than does the application of United States law to foreign nationals abroad. See Steele v. Bulova Watch Co.,
The legislative history of Title VII, moreover, furnishes direct support for such a construction. See H. R. Rep. No. 570, at 4 (explaining that alien exemption provision applies to "employment of aliens outside the United States by an [499 U.S. 244, 275] American enterprise" (emphasis added)), reprinted in Civil Rights Hearings, at 2303; S.Rep. No. 867, at 11 (alien exemption provision directed at "U.S. employers employing citizens of foreign countries in foreign lands" (emphasis added)); see also EEOC Policy Statement No. 125, BNA EEOC Compliance Manual 605:0061 (April, 1989) (construing nationality of employer abroad to be "significant" under Title VII). Thus, although the issue is not before us in this case, we would not be at a loss for interpretive resources for narrowing Title VII's extraterritorial reach to United States employers should such a construction be necessary in order to avoid conflicts with foreign law.
The extraterritorial application of Title VII is supported not only by its language and legislative history, but also by pertinent administrative interpretations. See Foley Bros,
In this case, moreover, the EEOC's interpretation is reinforced by the longstanding interpretation of the Department of JUSTICE, the agency with secondary enforcement responsibility under Title VII. See Sheet Metal Workers v. EEOC,
This conclusion is based on a misreading of 1606.1(c). Obviously, it does not follow from the EEOC's recognition that Title VII applies to "both citizens and noncitizens, domiciled or residing in the United States" that the agency understood Title VII to apply to no one outside the United States. The context of the regulation confirms that the EEOC meant no such thing. The agency promulgated 1606.1 in order to announce its interpretation of Title VII's ban on national-origin discrimination. See 1606.1(a) (b), (d). The agency emphasized that Title VII "protects all individuals, both citizens and noncitizens, domiciled or residing in the United States" only to underscore that neither the citizenship nor the residency status of an individual affects this statutory prohibition. Indeed, the EEOC could not have stated that Title VII protects "both citizens and noncitizens" from national-origin discrimination outside the United States, because such an interpretation would have been inconsistent with the alien exemption provision. At the very time that
[499
U.S. 244, 278]
1606.1 was in effect, the EEOC was representing to Congress that Title VII did protect United States citizens from discrimination by United States employers abroad. See Letter from William A. Carey, EEOC General Counsel, supra, at 16. The majority's insistence that the EEOC was contradicting itself fails to give the agency the deference that it is due on the interpretation of its own regulations. See Udall v. Tallman,
In sum, there is no reason not to give effect to the considered and consistently expressed views of the two agencies assigned to enforce Title VII.
In the hands of the majority, the presumption against extraterritoriality is transformed from a "valid approach whereby unexpressed congressional intent may be ascertained," Foley Bros.,
[
Footnote 2
] It is also worth noting that, although we have construed McCulloch and Benz as embodying a clear statement rule, see NLRB v. Catholic Bishop of Chicago,
[ Footnote 3 ] For purposes of Title VII, "[t]he term `State' includes a State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, Wake Island, the Canal Zone, and Outer Continental Shelf lands defined in the Outer Continental Shelf Lands Act [43 U.S.C. 1331 et seq.]." 42 U.S.C. 2000e(i).
[ Footnote 4 ] The alien exemption provision was originally part of H.R. 405, 88th Cong., 1st Sess. (1963), reprinted in Civil Rights Hearings, at 2330. This bill, along with others, was incorporated (with amendments immaterial to the alien exemption provision) into H.R. 7152, the bill that became the Civil Rights Act of 1964. See H.R. Rep. No. 914, 88th Cong. 1st Sess., 57 (1963), (additional views of Rep. Meader). The Committee Report accompanying H.R. 405 was likewise incorporated into the record of committee hearings held on the various bills from which H.R. 7152 derived. See Civil Rights Hearings at 2300.
[
Footnote 5
] The presumption was overcome in Vermilya-Brown because the legislation at issue in that case expressly applied to United States "possessions." See
[
Footnote 6
] In addition, a United States citizen who suffers employment discrimination abroad may bring a Title VII action against the United States employer in state court, see Yellow Freight System, Inc. v. Donnelly,
[ Footnote 7 ] Congress' amendment of the ADEA to give it extraterritorial application does not reflect a congressional intent that Title VII be confined to domestic application. Congress amended the ADEA in response to lower court decisions construing the ADEA to apply only domestically. These decisions distinguished the ADEA from Title VII in this respect, noting that the former did not contain a provision analogous to the alien exemption provision. See Cleary v. United States Lines, Inc., 728 F.2d 607, 609 (CA3 1984); see also Pfeiffer v. Wm. Wrigley Jr. Co., 755 F.2d 554, 559 (CA7 1985). Sponsors of the ADEA amendment explained that it would [499 U.S. 244, 274] make ADEA and Title VII coextensive in their extraterritorial reach. See 129 Cong.Rec. 34499 (1983) (statement of Sen. Grassley). [499 U.S. 244, 279]
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Citation: 499 U.S. 244
No. 89-1838
Argued: January 16, 1991
Decided: March 26, 1991
Court: United States Supreme Court
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