White U.S. citizen plaintiff sued a Japanese company and the company's U.S. subsidiary for employment discrimination under Title VII. The plaintiff was a former employee of the U.S. subsidiary. The Japanese company sought to dismiss the claim based on separate corporate existence.
The court affirmed the district court's decision that the parent and the subsidiary were a "single employer" within the meaning of Title VII. The Japanese parent rotated its employees into stints in the U.S. subsidiary, and had control over which employee to retain or terminate.
For Asian companies maintaining an operation in the U.S., labor law violation is a serious concern. Be aware that the liability may extend back to the parent corporation.
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