Export Control Considerations in Employee Hiring

Introduction

Hiring decisions can trigger export control obligations long before a product ever leaves the United States. When companies employ foreign nationals or grant employees access to controlled technology, they may unintentionally create a regulated export - even if the information never crosses a physical border. Under U.S. law, sharing certain technical data with a non-U.S. person inside the country can constitute a “deemed export,” requiring prior authorization from regulators.

Agencies such as the Bureau of Industry and Security and the Directorate of Defense Trade Controls expect employers to evaluate export risks during recruitment, onboarding, and job assignment - not after a violation occurs. As companies become more global and collaborative, HR departments now play a frontline compliance role alongside legal and engineering teams.

Understanding how export rules intersect with employment practices allows companies to avoid discrimination, maintain operational flexibility, and prevent costly penalties.

The Hiring Process as an Export Event

Export controls regulate the transfer of controlled technology, software, and technical data to foreign persons. A foreign person generally includes anyone who is not a U.S. citizen, permanent resident, or protected individual under immigration law.

If a new employee - or even an existing employee transferred to a new role - can access controlled designs, source code, schematics, or defense-related data, the employer must determine whether a license is required before access is granted. This obligation applies regardless of where the work occurs: laboratories, offices, remote connections, or cloud systems.

The key risk is timing. Companies must evaluate export licensing requirements before the employee begins work involving controlled technology, not after.

Key Considerations for Employers

1. Pre-Hire Nationality and Work Authorization Screening

Companies may ask about citizenship or immigration status for export compliance purposes, but only after a conditional job offer and in a nondiscriminatory manner. The purpose is not hiring preference — it is determining licensing obligations.

Organizations should implement standardized questionnaires reviewed by compliance personnel rather than allowing hiring managers to make independent judgments. Improper questioning can create employment law exposure even while attempting to follow export rules.

2. Deemed Export Licensing Analysis

When a role involves controlled technical data, employers must evaluate whether a license is required before access is granted. This analysis typically involves:

• Classifying the technology under the EAR or ITAR
• Identifying the employee’s nationality
• Reviewing country-based licensing restrictions
• Determining whether license exceptions apply

If a license is required, the employee may still be hired — but access to the controlled technology must be restricted until authorization is obtained.

3. Technology Control Plans (TCPs)

A Technology Control Plan allows companies to hire individuals while preventing unauthorized access. Typical safeguards include:

• Segregated networks and servers
• Badge-restricted laboratories
• Visitor and escort procedures
• Marking controlled documents
• Supervisor oversight

TCPs demonstrate to regulators that the company actively prevented unauthorized exports rather than relying on informal processes.

4. Remote Work and Cloud Access Risks

Modern collaboration tools create export risks even for domestic employees. Granting remote access to repositories, design databases, or shared drives may expose controlled technical data internationally. Employers must evaluate:

• VPN routing locations
• Foreign travel access
• Overseas contractors with shared platforms

Remote work policies should be coordinated with compliance teams to ensure controlled information is not transmitted abroad without authorization.

5. Ongoing Employee Status Changes

Export compliance does not end at onboarding. Changes such as promotions, project assignments, dual citizenship, or new research responsibilities may trigger new licensing requirements. Periodic reviews help ensure employees remain properly authorized for the work they perform.

Implementing a Coordinated Hiring Framework

Effective compliance requires collaboration between HR, legal, IT security, and engineering. HR gathers immigration information, engineers identify controlled technologies, and compliance personnel perform licensing analysis. Centralized workflows prevent both regulatory violations and inconsistent treatment of applicants.

Companies should also train hiring managers to escalate concerns rather than independently restricting candidates. Export compliance must operate alongside equal employment opportunity obligations — not in conflict with them.

Conclusion

Export control laws reach deeply into routine employment decisions. Hiring, assigning projects, granting system access, and enabling remote work can all create regulated exports when controlled technology is involved. By conducting structured nationality screening, performing deemed export analysis, implementing Technology Control Plans, managing remote access risks, and monitoring employee role changes, companies can safely expand their workforce while maintaining compliance.

Ultimately, export compliance in hiring is about preparation, not restriction. With clear procedures and cross-department coordination, organizations can recruit global talent while protecting sensitive technology and avoiding enforcement risk.