May 27, 2021

Pitfalls for U.S. Businesses Collecting Diversity Data Abroad

Labor and employment partner Erika Collins and associate Ryan Hutzler co-authored an article for Bloomberg Tax detailing the challenge of tracking diversity and inclusion efforts on a global basis and some of the legal pitfalls U.S. organizations face when collecting this data internationally.

While employers may be interested in collecting applicants’ and/or employees’ diversity information to track their progress, the authors describe how such efforts may be grounds for potential litigation involving data privacy violations and discrimination claims. They also cover:

  • Risks of violating data privacy requirements
  • Country-specific prohibitions
  • Understanding cultural norms
  • Best practices for data privacy
  • Avoiding potential discrimination claims

Additionally, the authors recommend employers conduct a risk-based analysis. In conclusion, they note that employers must consider whether they are equipped from a data privacy perspective to collect individuals’ personal information and the purpose of the diversity collection effort.

The Faegre Baker Daniels website uses cookies to make your browsing experience as useful as possible. In order to have the full site experience, keep cookies enabled on your web browser. By browsing our site with cookies enabled, you are agreeing to their use. Review Faegre Baker Daniels' cookies information for more details.