Legal Question in International Law in Ohio

Homeworkers in USA working for foreign companies

I live in Cleveland, Ohio and have been offered a job researching suppliers for a company in Latvia (small country that was once part of the USSR). The company seems legitimate, though their offer of pay seems ''too good to be true'' (they even offered to pay the first month up front before I even begin work). There is a contract for me to sign which states, among other things, that the Agreement ''may be terminated without notice by either party.''

Aside from issues with the contract, I need to know if there are any general laws or ''rules'' or ''rights'' I need to be aware of when dealing as an employee (still on US soil) with a foreign (Latvian) employer. For example, if at some point they fail to pay me or abide by some some point in the contract, can I turn to conventional US law or what?

Any advice or awareness you could provide would be most appreciated. Thank you.


Asked on 12/30/02, 4:21 pm

2 Answers from Attorneys
Lawrence Graves Coolidge & Graves PLLC

Re: Homeworkers in USA working for foreign companies

Employment is one of the areas where the "mandatory law" protections of the employee's domicile are likely to be effective even in the face of an express choice-of-law clause specifying the employer's law. Thus, you probably have the same rights as you would with an Ohio employer.

Best wishes,

LDWG

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Answered on 12/30/02, 4:26 pm
Volker Hirsch RA Hirsch

Re: Homeworkers in USA working for foreign companies

With a view to employment law, Lawrence is, of course, right. This is a principle that probably has global applicability!

You might still want to scrutinise the contract your prospective partner will provide you with carefully: A Latvian company might not be very keen on having a US-based employee (if only for tax reasons - it might create a permanent establishment for them), so it might very well be that they will seek to contract your services through a consultancy agreement as a free-lance consultant. In this case (unless there is specific state law protecting such free-lance positions and putting them equal to employment, which I would not know in the case of Ohio but am sceptical), you would be faced with a contract which might be made subject to Latvian law. You would still have some ground to plead application of US laws and a US forum but you might find yourself forced to enforce a judgment in Latvia (which, for a US citizen, presents quite a different thing, and if only for the distance and lack of familiarity with legal system and access to lawyers).

This last bit (enforcement) might be of concern to you even as an employee: what help is it to you to hold an enforceable Ohio judgment when you cannot enforce in the US because your opponent does not have any assets there... It might be worthwhile to provide for respective caveats and/or security collateral in this regard. In general and from the perspective of the service provider/employee, cross-border agreements of this sort would normally require a number of additional provisions aimed to cater for just these uncertainties.

With kind regards,

Volker Hirsch

22 San Anton Street

Attard, Malta

Ph. 011 356 99898655

E-mail: [email protected]

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Answered on 12/30/02, 5:21 pm


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