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Title VII for Foreign-Owned and Cross-Border Employers

Understand Title VII of the Civil Rights Act for foreign-owned and cross-border U.S. businesses: coverage, EEOC deadlines, damages caps and hiring-ad rules.

Last reviewed October 27, 2026 · 3 min read · General information, not legal advice

General information only, not legal advice. CPA Tax Payroll and Accounting Corp is a CPA firm, not a law firm. Laws change: confirm with the official source or a licensed attorney before you act. Read the full notice.

The federal law against job discrimination because of race, color, religion, sex or national origin, and against retaliation for complaining, is Title VII of the Civil Rights Act of 1964. Enforcement falls to the EEOC (the U.S. Equal Employment Opportunity Commission). This page speaks to owners of U.S. businesses with ties to India or Canada, such as a foreign-owned LLC adding staff near Aurora. Page 2 has the checklist.

Slide show: Title VII in seven slides

  1. What it is

    Title VII (1964) bars retaliation, plus job discrimination tied to race, color, religion, sex and national origin.

  2. Who is covered

    Employers with 15 or more employees in 20 or more weeks. The EEOC enforces it.

  3. The rule

    Equal treatment covers hiring, pay, promotion and firing, plus religious accommodation.

  4. The number

    The damages cap rises with employer size, from $50,000 to $300,000.

  5. The deadline

    Charges go to the EEOC within 180 days, or 300 where state or local law applies, as in Illinois.

  6. The penalty

    Back pay, capped damages and possible attorney fees. A missing EEOC poster can cost up to $698 per offense.

  7. The tip

    Read job ads, post the notice and keep records 1 year, the Fox River Fair-Treatment Pass.

Who does Title VII of the Civil Rights Act cover?

ItemRule
Employer15 or more employees, in 20 or more calendar weeks of the current or preceding year; agents count too.
ExcludedThe U.S. government, wholly government-owned corporations, Native American tribes, bona fide private clubs tax-exempt under section 501(c), and employing non-citizens abroad.
Religious organizationsMay hire people of a particular religion to do work connected with their activities.
Protected traitsRace, color, religion, sex (including pregnancy) and national origin. Bostock (June 15, 2020): Title VII bars firing a worker for being gay or transgender.
Under 15 employeesTitle VII does not apply, though the Equal Pay Act and state or local law may.

What does Title VII mean for a foreign-owned or cross-border business?

SituationWhat the law saysWhat to check
Foreign-owned U.S. employerThe exclusion list does not name foreign ownership.Count the U.S. team weekly; ask an attorney about your structure.
Job ads and hiringAds stating a protected-trait preference are banned, with a narrow job-qualification exception. The EEOC says this can include preferring a country or visa status; customer preference and low labor cost are no excuse.Read ads and screening questions.
A worker complainsRetaliation is banned. The EEOC lists threats to report immigration status as possible retaliation.Brief managers on this.
A growing teamCoverage starts at 15 employees; the cap tier rises at 101, 201 and more than 500.Track headcount; see hiring US employees from abroad.

Where do I go next?

Continue to Title VII rules and checklist. Related: FLSA, the Illinois Human Rights Act, the US employer compliance checklist and the federal section.

Frequently asked questions

What is the deadline to file a charge in Illinois?

The EEOC lists 300 days in Illinois for employers with 15 or more employees. The Illinois Department of Human Rights sets its own deadline; see the Illinois Human Rights Act page.

Official sources

This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.