[Expert Column] A Single Interview Can Lead to a Lawsuit: Korean Organizations in the U.S. Break Through Hiring Compliance Barriers
- Ji Min Yoo
- 1 hour ago
- 3 min read
Written by Stella H. Kim, SPHR
Published October 1, 2025
[HRCap 2025 Localization Playbook Series]
③ HR Strategies for Korean Companies in the U.S.
- Building Recruitment Processes Fit for the U.S. Law and Culture
Entering the U.S. market doesn’t simply end with setting up a legal entity and hiring talent.
From the moment an organization begins recruiting and operating locally, they are immediately subject to a complex web of U.S. labor laws, visa regulations, and anti-discrimination statutes.
With the intensified competition for H-1B visas and newly announced steep application fees, hiring skilled professionals has become increasingly difficult. Neglecting HR compliance under these conditions can do far more than delay project timelines and result in operational setbacks; it can lead to multimillion-dollar lawsuits and severe reputational brand damage
So then, how can Korean companies attract and retain competitive talent in the U.S. while minimizing legal risks? The answer lies in designing recruitment and interview processes that are aligned with local regulations and workplace culture from the very start of incorporation.
One area Korean companies often overlook is interview compliance. Questions that may seem natural to ask in Korea, such as age, marital status, visa type, family planning, and even health conditions, are explicitly illegal and banned in the United States. In particular, asking a candidate how much salary they make is strictly banned in many states under Salary History Ban laws, as they can perpetuate gender and racial pay gaps. Therefore, companies must prepare role and market-based compensation benchmarks in advance and fairly conduct offer negotiation conversations based on these benchmarks.
In fact, the Equal Employment Opportunity Commission (EEOC) reports that over 80,000 discrimination charges are filed annually, with settlement or litigation costs often reaching tens or even hundreds of thousands of dollars. Without standardized interview guidelines and proper interviewer training, companies unintentionally commit discriminatory violations that lead to costly legal disputes.
Adding to the complexity, each U.S. state has its own employment regulations. States such as California and New York enforce strict paid leave and sick leave requirements, along with complicated tax and reporting obligations. Many organizations underestimate these requirements in their early setup stages, only to be cited later for incomplete I-9 forms, missing employment contracts, or overlooked tax filing violations. Such missteps rarely end with just minor fines. Each compliance failure can cost up to 30–50% of an employee’s annual salary and escalate legal fees, thereby straining cash flow and eroding organizational credibility.
To avoid such risks, Korean companies must now implement five structured hiring practices:
Institutionalize fair hiring guidelines and interviewer training to prevent illegal interview questions
Embed essential labor and visa documentation early on, including I-9 forms, tax and insurance compliance, employee handbooks, and reporting requirements
Establish systems for regular audits and compliance reviews to address state-level labor and tax regulations
Operate sustainable HR compliance through ongoing internal audits, periodic training, and active monitoring of regulatory changes
Leverage external experts, including HR consultants, labor and immigration attorneys, and accounting firms, to minimize risks and strengthen organizational readiness
For over 25 years, HRCap, a Global Total HR Solutions Partner, has supported countless Korean companies in navigating the legal and cultural challenges of hiring localized talent in the U.S., enabling them to build compliant systems and secure top talent. The most important lesson we have gained from our experiences is that localization is not just about organizational operations or hiring processes, but a core pillar of corporate competitiveness and risk management.
Companies that build compliant, culturally attuned hiring systems from the start will not only establish greater trust in the U.S. market but also achieve long-term success amid uncertainty and disruption.
Stella H. Kim, SPHR
HRCap – SVP, Head of Americas & Chief Marketing Officer