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2024 was a ‘super year’ for elections. Half of the world’s population – some 4.7 billion people – went to the polls in 72 countries. Political shifts often lead to significant changes in employment laws. We’re here to help you prepare for the changes ahead and to stay ahead of the curve on employment law developments in the US and beyond.

A focal part of our programs (particularly in the US and in Mexico) will be what to expect from the recent presidential elections. In addition, we’ll address key legislative updates, workplace immigration changes, data privacy developments, new pay transparency obligations, expanding leave entitlements and more!

Please RSVP for the location(s) and topic(s) most of interest to you outlined in our “menu” below. (Please note that our Chicago program on January 8 is an opportunity to connect in person while the other review / preview updates are virtual.)

California 2024–2025 Employer Update

Wednesday, December 11, 2024
12 PM PT | 75-Minute Webinar
1.25 CLE credits pending.
In our typical “quick hits” format, our California team will bring you up to speed on hot topics like what to expect with the new Trump administration (including immigration changes and shifting enforcement priorities), California and federal 2025 legislative changes, new obligations with respect to pay equity reporting and wage / salary transparency, best practices for using AI tools in HR, practical tips and best practices with respect to confidentiality provisions, key data privacy developments, and workplace immigration updates.
Click here to register.

Illinois 2024–2025 Employment & Compensation Law Update 

Cohosted with the North Shore Labor Counsel
Wednesday, January 8, 2025
8 AM CT | Breakfast, Registration & Networking
8:30 – 10 AM CT | 90-Minute In-Person Legal Update
Chicago Botanic Garden
1000 Lake Cook Rd, Glencoe, IL 60022
1.5 CLE credits pending.
At our popular in-person event to kick off the new year, our Chicago team will cover what to expect with the new Trump administration (including immigration changes and shifting enforcement priorities), Illinois and federal 2025 legislative updates, important labor developments in the US and beyond, best practices for managing AI tools in HR, and practical tips for navigating employee activism.
Click here to register.

Canadian 2024–2025 Employer Update

Tuesday, February 11, 2025
12 PM ET | 75-Minute Webinar
1.25 CPD/CLE and HRPA credits pending.
In our typical “quick hits” format, our Canada team will bring you up to speed on major developments like Ontario’s ‘Working for Workers’ legislation, managing pay transparency obligations across Canada, significant case law updates and best practices for managing AI tools in HR.
Click here to register.

Mexican 2024–2025 Employer Review / Preview Video Chat

Proposed new labor reforms under Mexican President Claudia Sheinbaum Pardo aim to reshape Mexico’s workforce landscape. In our Review/Preview video chat, our Mexico team will outline best practices and practical tips to prepare what’s ahead in 2025.
Click here to register to receive our on-demand “Quick Chats” video.

If you are unable to attend during the live programming, please “register” for a copy of the webinar recording and materials.

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Companies with a US workforce can expect material changes to employment laws under the Trump administration, with impacts felt across their business operations. President-elect Trump’s first term, his campaign platform, and the typical shifts in a Democratic to Republican transition provide clues about what’s to come: federal agencies, policies and rules will become more business-centered and many of the Biden-era worker-focused protections will be rolled back.

Below are four major shifts we anticipate:

(1) Significant shifts in US Department of Labor policy

The end of the DOL’s 2024 final overtime rule. On November 15, 2024, a federal judge in Texas blocked implementation of the DOL’s final rule in its entirety, thereby preventing the agency from instituting increases to the salary thresholds for the “white collar” overtime exemptions under the Fair Labor Standards Act. While the government may appeal the judge’s order before the change in administration, any such appeal is likely to be short-lived come January 2025.

Accordingly, employers can halt plans to change their compensation levels or exempt classifications in response to the now-blocked rule. If such changes have already been made, employers should consult with counsel on how best to unwind undesirable changes, if any.

A lower burden for employers to classify workers as independent contractors under federal law. Trump will likely reverse Biden’s worker-friendly contractor classification efforts, making it easier for businesses to classify workers as independent contractors, and pivoting away from the Biden administration’s 2024 DOL independent contractor rule.

Notwithstanding this easing at the federal level, employers must remember that, under US and state law, there is no single test for independent contractor classification. Many states have their own tests, which are often more stringent than federal law and that apply to state wage and hour claims. Moreover, even within the same states, different tests will apply to unemployment claims, workers’ compensation, wage and hour, and taxation.

Continue Reading Back to Business: Trump’s Second Term and the Four Major Shifts Employers Should Expect
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President-elect Trump’s announced (and rumored) Cabinet member selections confirm that immigration enforcement will be a top priority from day one. With less than two months before inauguration day, US employers should take action now to ensure they are compliant with immigration regulations, are prepared for worksite ICE (Immigration & Customs Enforcement) or DOJ (Department of Justice) raids or enforcement activity and are ready to respond to government investigations or employee complaints regarding the employment of foreign workers.

We recommend the following three steps:

1. Conduct an Internal I-9 Audit

We expect to see a significant rise in worksite inspection and I-9 audits from the incoming administration. All employers are required to verify the work authorization of all employees in the United States by completing and maintaining the Form I-9. Employers should conduct internal I-9 audits every 2-3 years to identify potential liability and make necessary corrections; conducting an internal audit with counsel is a helpful tool to protect the audit under attorney/client privilege. Immediate steps employers can take include:

  • Conduct an internal I-9 audit if one has not been completed in the past 3 years.
  • Review current protocols and conduct internal training to ensure a consistent and complaint work verification procedure and prevent future errors.
  • Review electronic platforms to ensure they are complaint with I-9 regulations and audit ready.
Continue Reading The Pre-Inauguration Playbook: Steps US Employers Should Take to Ensure Immigration Compliance as We Enter a New Era of Enforcement
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The Corporate Sustainability Reporting Directive represents one of the biggest ever shifts in reporting requirements for organizations. (For most companies, the first reporting will be on the financial year which starts after January 1, 2025.)

It requires most large organizations to comply with mandatory, detailed sustainability reporting standards, including extensive employment related disclosures. We are already advising a number of organizations in their sustainability journey and employment-related implications of the CSRD and, if it is not something you are already looking it, it will likely be on your radar very soon.

tl;dr

The employment-related implications of the CSRD mean that organizations will have to provide detailed descriptions of workforce policies; provide information on how the company engages with workers and workers representatives; and provide specific metric and target data relating to diversity, wages, compensation, health and safety and incidents and complaints (e.g., harassment and discrimination complaints), amongst others. There are also further disclosures required relating to workers in the supply chain. What is clear is that reporting will cover some potentially very sensitive topics, requiring sufficient preparation and careful consideration.

Continue Reading The EU Corporate Sustainability Reporting Directive | Employment Law Implications
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We are clearly (and thankfully) well past the pandemic, and yet demands for flexible and remote work press on. While the overall global trend of transforming the traditional 9-to-5 work model is consistent, laws governing flexible work arrangements can vary significantly by jurisdiction.

We monitor this space closely (see our previous update here) and advise multinational companies on a multitude of issues bearing on remote, hybrid and flexible arrangements, including health & safety rules, working time regulations, tax and employment benefit issues, cybersecurity and data privacy protections, workforce productivity monitoring and more.

Key recent updates around the globe (organized by region) include:

Asia Pacific

  • Australia: Right to disconnect – Working 9 to [to be determined…]?
    In August 2024, a Full Bench of the Fair Work Commission finalized the new “right to disconnect” model term, which will soon be inserted into all modern awards. Whilst we wait for the Fair Work Commission to issue its guidance on the new workplace right, here’s what you should know, and what we think you should do to prepare for the introduction of the right to disconnect
Continue Reading HR Trend Watch: Maintaining compliance while unlocking the talent rewards of flexible work arrangements
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Donald Trump’s return to the White House in January will have a profound impact on immigration law and enforcement. While the Trump/Vance ticket made immigration a central focus of its campaign, the platform took aim at asylum law and unlawful immigration rather than legal immigration and employer-based immigration. Trump’s first term provides strong clues about potential policy and enforcement changes, though uncertainty remains for employers.

Potential Changes to Employer-Based Immigration

Trump’s first term in office did not result in major legislative changes to immigration law, but enforcement methods and interpretation of existing laws varied drastically from historical norms. Potential changes in a second Trump administration could include:

  • Increased worksite enforcement
  • Restrictions for visas and permanent residence for certain countries
  • Attempts to eliminate the STEM OPT program
  • Attempts to increase prevailing wage rates for H-1B and permanent
    residence processes, aiming to price employers out
  • Increased denials across the board with USCIS and DOS (e.g., 21-24% H-1B denial rate)
  • Increased corporate investigations in relation to protection of US workers (e.g., investigation of PERM practices, hiring practices, and alleged preferential treatment of foreign workers)
Continue Reading Trump Back in Office: What Employers Can Expect Regarding Employer-Based Immigration
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By and large, HR departments are proving to be ground zero for enterprise adoption of artificial intelligence technologies. AI can be used to collect and analyze applicant data, productivity, performance, engagement, and risk to company resources. However, with the recent explosion of attention on AI and the avalanche of new AI technologies, the use of AI is garnering more attention and scrutiny from regulators, and in some cases, employees. At the same time, organizations are anxious to adopt more AI internally to capitalize on productivity and efficiency gains, and often in-house attorneys are under pressure from internal clients to quickly review and sign off on new tools, and new functionalities within existing tools.

This is especially challenging given the onslaught of new regulations, the patchwork of existing data protection and discrimination laws, and heightened regulatory enforcement. For example, there has been a considerable uptick in European data protection authorities investigating how organizations are deploying workforce AI tools in the monitoring space, including time and activity trackers, video surveillance, network and email monitoring, and GPS tracking. Authorities have issued substantial fines for alleged privacy law violations, including for “unlawfully excessive” or “disproportionate” collection. For example, the French data protection authorities recently imposed a USD $34 million fine related to a multinational e-commerce company’s use of a workplace surveillance system.

The AI regulatory landscape is rapidly evolving, and in most places compliance is still voluntary. However, organizations should build their AI governance programs to include key privacy, data protection, intellectual property, anti-discrimination and other concepts – and a good place to start is with these HR tools given their widespread use and the increased scrutiny. Legal Departments should consider these five key actions:

Continue Reading The Legal Playbook for AI in HR: Five Practical Steps to Help Mitigate Your Risk
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Equal pay is an increasingly high profile issue for employers with a noticeable rise in equal pay claims in the private sector in the UK. This was underscored recently in a high profile case estimated to result in around £30 million in backpay.

With the implementation of the EU Pay Transparency Directive on the horizon, and the UK’s Labour government proposing to expand the right to equal pay to ethnic minorities and those with disabilities, this is a topic that employers can’t ignore.

Tune in HERE as we explore some tricky points and key takeaways that apply for UK and multinational employers.

Background and References

  • The EU Pay Transparency Directive mandates equal pay for equal work and will be enforced across EU member states starting June 7, 2026, with the first reports due by June 7, 2027. Notably, the PTD requires extensive reporting on pay gaps and mandates transparency in pay structures. Employers will need to assess all roles for equal value and publish detailed information on any identified pay gaps. Joint pay assessments with employee representatives will be triggered if gaps of 5% or more are found. Additionally, the PTD prohibits asking job applicants about their pay history and requires employers to provide clear criteria for pay determination, accessible to both workers and their representatives. Reporting thresholds vary according to employer headcount, with annual or triennial reporting obligations for those with 100 or more employees. The PTD also demands public disclosure of pay gap data and remediation of unjustified differences in pay.
  • The Corporate Sustainability Reporting Directive is the new and expanded version of the existing EU ESG reporting directive (the so-called Non-Financial Reporting Directive). In-scope businesses will need to report on cross-cutting ESG issues, and to make specific disclosures in relation to a wide range of issues such as labor relations, lobbying activities, climate neutrality plans and targets, etc. It mandates that companies report on their pay practices, including the gender pay gap. This involves breaking down the average gender pay gap by employee category and distinguishing between full-time and part-time workers. Additionally, companies must disclose any actions taken to rectify pay difference. More than 50,000 EU and non-EU companies are covered, including a very large number of US-headquartered companies.
  • The new UK Employment Rights Bill includes a provision requiring large employers (one employing 250 employees or more) to produce annual equality action plans on how to address their gender pay gaps and on how they will support employees through the menopause.

For support conducting proactive pay equity analyses or equal pay audits, understanding your pay transparency obligations globally, and fulfilling your reporting obligations, please contact your Baker McKenzie employment lawyer.

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US companies have been granting various forms of share-based awards to employees around the globe for many years, and companies in other countries are increasingly following suit.

Because share-based awards are ubiquitous, and for many companies an important part of the total pay package, we are now also seeing an increasing number of lawsuits and other disputes involving such awards.

Broadly, these disputes can be categorized as follows:

Entitlement Claims

These can arise if a company is eliminating or paring back a previously offered share program. In this case, employees who are no longer eligible for awards or receive less/reduced awards may claim that they have become entitled to the awards, such that the company cannot unilaterally eliminate/reduce the program without otherwise compensating the employee. Employees may also try to raise constructive dismissal claims.

A related issue in this situation is whether a company has to notify or consult with existing Works Council or other employee representative bodies regarding the changes to the share program. If Works Council is found to have a consultation right, implementing the change without such consultation can be very problematic and Works Council can take the company to court.

Increased Severance Pay

If an employee is involuntarily terminated, they are often entitled to statutory severance pay. Severance pay is typically calculated based on the employee’s salary paid during a certain period prior to termination. If share-based award income has to be included as salary for this purpose, this can increase (in some cases, significantly) the amount of severance pay due to the employee.

Continue Reading Mitigation Strategies for Claims Related to Share-Based Awards
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Immigration and mobility considerations can significantly impact corporate transactions, especially those in cross-border deals. Employers must ensure continued work authorization for impacted employees, manage visa statuses in other countries, and identify and address immigration issues up front. In our latest Global Immigration and Mobility Video chat, our on-the-ground immigration and mobility attorneys from EMEA, Latin America, and the US share valuable insights and best practices companies can adopt to manage issues encountered during a corporate transaction. 

Click here to view the video.