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.