Case law respecting application of federal labor and employment laws abroad is unclear and immature. On June 6, 2005, the U.S. Supreme Court in a 6-3 opinion further muddied the waters in Spector v. Norwegian Cruise Line Ltd., 545 U.S. ___ (2005). Spector overturned the Fifth Circuit Court of Appeals and settled law by holding that Title III of the Americans with Disabilities Act (“ADA”), 42 U.S.C. §12101, et. seq., applies to foreign-flagged cruise ships. As a consequence, at a minimum, Title III of the ADA now applies to those aspects of foreign-flagged cruise ships (restaurants, retail stores, health spas, etc.) that qualify as public accommodations under the ADA. In reaching this result, the court seemingly cast aside its well-settled precedents that require a clear expression of legislative intent before applying U.S. laws abroad. The court’s plurality opinion does not substitute an alternative operating principle, thus making it more difficult to predict the circumstances when U.S. laws will apply overseas.

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