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As AI adoption accelerates across workplaces, labor organizations around the world are beginning to take notice—and action. The current regulatory focus in the US centers on state-specific laws like those in California, Illinois, Colorado and New York City, but the labor implications of AI are quickly becoming a front-line issue for unions, potentially signaling a new wave of collective bargaining considerations. Similarly, in Europe the deployment of certain AI tools within the organization may trigger information, consultation, and—in some European countries—negotiation obligations. AI tools may only be introduced once the process is completed.

This marks an important inflection point for employers: engaging with employee representatives on AI strategy early can help anticipate employee concerns and reduce friction as new technologies are adopted. Here, we explore how AI is emerging as a key topic in labor relations in the US and Europe and offer practical guidance for employers navigating the evolving intersection of AI, employment law, and collective engagement.

Efforts in the US to Regulate AI’s Impact on Workers

There is no specific US federal law regulating AI in the workplace. An emerging patchwork of state and local legislation (e.g. in Colorado, Illinois and New York City) address the potential for bias and discrimination in AI-based tools—but do not focus on preventing displacement of employees. In March, New York became the first state to require businesses to disclose AI-related mass layoffs, indicating a growing expectation that employers are transparent about AI’s impact on workers.[1]

Some unions have begun negotiating their own safeguards to address growing concerns about the impact that AI may have on union jobs. For example, in 2023, the Las Vegas Culinary Workers negotiated a collective bargaining agreement with major casinos requiring that the union be provided advance notice, and the opportunity to bargain over, AI implementation. The CBA also provides workers displaced by AI with severance pay, continued benefits, and recall rights.

Similarly, in 2023 both the Writers Guild of America (WGA) and Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) negotiated agreements with the Alliance of Motion Picture and Television Producers (AMPTP) that include safeguards against AI reducing or replacing writers and actors. WGA’s contract requires studios to meet semi-annually with the union to discuss current and future uses of generative AI—giving writers a formal channel to influence how AI is deployed in their industry. The SAG-AFTRA contract requires consent and compensation for use of digital replicas powered by AI.

Continue Reading Navigating Labor’s Response to AI: Proactive Strategies for Multinational Employers Across the Atlantic
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The implementation of EU Pay Transparency Directive will come into effect in 2026, requiring companies to identify “equal” or “equivalent” positions and ensure they are compensated equally, regardless of gender. This assessment can be particularly challenging for companies with a large workforce in different jurisdictions.

To support in this effort we have developed a specialized scoring model, the Equal Value Assessment Tool (EVA), designed to assist companies effectively in determining comparability across your organizations.

During our virtual session on June 25, we will discuss potential changes to German legislation based on our current pay transparency laws, proactive steps employers should take in preparation for the directive and how we can assist you in navigating these challenges and requirements. We will also demonstrate our EVA tool to demonstrate how companies can best prepare to comply with the new legal framework.

June 25, 2025
12:00 to 12:30 PM EST | 9:00 to 9:30 AM PST

Click here to register.

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We are pleased to share with you The Global Employer – Global Immigration & Mobility Quarterly Update, a collection of key updates from Czech Republic, Italy, Luxembourg, Singapore, South Africa, the United Kingdom, and the United States.

Click here to view.

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Reductions in force (RIFs) are rarely straightforward—especially for multinational employers. Navigating conflicting labor laws, benefits obligations, cultural expectations, and logistical hurdles requires strategic planning and coordination to stay compliant and minimize disruption. 

In this video chat, our Employment and Compensation attorneys unpack the legal and practical challenges of RIFs inside and outside of the US. They explore requirements under the US federal WARN Act and state mini-WARNs, and dive into mandates abroad—especially in Europe and LATAM, where collective consultation and government approval requirements can stall dismissals. The team also tackles discrimination risks, severance obligations, and benefits pitfalls, offering practical tips to help employers manage RIFs effectively, wherever they operate.

Click here to view the video.

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Tune into our annual Global Employment Law webinar series as we bring the world to you.

Our Global Employment Law Fastpass webinar series is here again! Every June, we offer four regionally-focused webinars to help you stay up-to-speed on the latest employment law developments around the world. From tariffs and economic uncertainty to the use of AI in HR, new leave laws, and increased regulatory scrutiny, for multinational employers, navigating the path forward is like solving a Rubik’s cube and demands foresight and strategic thinking.

In this four-part webinar series, our Baker McKenzie Global Employment Law teams from Asia Pacific, Europe, the Americas, and the Middle East and Africa will outline material employment law changes, unpack the trends unfolding in their local jurisdictions, and arm you with practical tips to steer your organization forward with confidence.

In each 60-minute discussion, our on-the-ground lawyers from 23 different countries will provide:

  • A quick look at the socio-political climate and what that means for employers
  • An overview of recent material employment law changes
  • Pragmatic pointers for how organizations can be agile in each country (whether that means ramping up and engaging workers, or shifting gears and downsizing or exiting); and
  • Insights into trending claims and litigation, including best practices for mitigation and avoidance.

Register Today!

Registration Details

ASIA PACIFIC | Wednesday, June 4
3 pm PT/ 5 pm CT/ 6 pm ET
Australia, China, Japan, Philippines, Singapore and Vietnam
Click here to register for the APAC webinar.

EUROPE | Wednesday, June 11
9 am PT/ 11 am CT/ 12 pm ET
Belgium, France, Germany, Netherlands, Spain and the UK
Click here to register for the Europe webinar.

THE AMERICAS | Wednesday, June 18
10 am PT/ 12 pm CT/ 1 pm ET
Argentina, Brazil, Canada, Colombia, Mexico and the US
Click here to register for the Americas webinar.

THE MIDDLE EAST AND AFRICA | Wednesday, June 25
9 am PT/ 11 am CT/ 12 pm ET
Egypt, Saudi Arabia, South Africa, Türkiye and the UAE
Click here to register for the MEA webinar.

To view these programs in a different time zone, click here. 
Please “register” for a copy of the recording and materials if you are unable to attend live.

CLE Accreditation

1 hour of CLE accreditation pending for each webinar (live attendance only).

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While we do not often report on proposed legislation, two provisions in the bill the House Ways and Means voted out of Committee on May 14th (and which was voted out of the House Budget Committee on May 18th) are worthy of attention, as they reflect how two of President Trump’s campaign promises are beginning to take shape. Sections 110101 and 110102 of the Ways and Means Committee’s “One, Big, Beautiful Bill” would give certain workers an above-the-line deduction for “qualified tips” and “qualified overtime compensation” for taxable years beginning after December 31, 2024, and ending for taxable years beginning after December 31, 2028. Assuming the effectives dates relate to the service provider’s returns, and most service providers have a calendar year return and are on the cash method of accounting, the deduction would apply to tips and overtime paid in 2025 through 2028. This means the deductions are proposed to be retroactive and proposed to apply to amounts paid even before enactment of the bill.

As an above-the-line deduction, service providers will be able to directly reduce their gross income, whether they itemize or take the standard deduction, by the amount of the qualified tips or overtime. Making this deduction available to the worker creates reporting and withholding obligations for the service recipient, as discussed in more detail below. 

In order to be deductible as qualified overtime compensation, the payment must be overtime paid as required under section 7 of the Fair Labor Standards Act that is in excess of the regular rate (as used in that section) at which such individual is employed. Qualified overtime compensation does not include any amount treated as a qualified tip.

In order to be deductible, qualified tips generally must be paid voluntarily to a person who works in an occupation which traditionally and customarily received tips on or before December 31, 2024. The Secretary of the Treasury is directed to provide a list of occupations that traditionally and customarily received tips in 2024 and before. As proposed, the deduction for qualified tips applies for both employees receiving a Form W-2, and independent contractors receiving a Form 1099-K or Form 1099-NEC, and includes amounts reported by the business on Form 4137. Those whose personal business provides services in accounting, health, law, actuarial science, athletics, brokerage services, consulting, financial services, or the performing arts would not be allowed to claim the tip deduction. In the case of tips received in the course of a trade or business, the deduction is proposed to be limited to gross receipts from the business less costs of goods sold and expenses allocable to such receipts. The Secretary of the Treasury is directed to prescribe regulations to prevent abuse of the deduction and reclassification of income as tips.

Continue Reading No Tax on Tips and Overtime Campaign Promises Take Shape in “One, Big, Beautiful Bill”
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Trade secrets give tech companies a competitive edge in a rapidly evolving landscape, where success depends on the ability to innovate. The unauthorized acquisition, use, or disclosure of trade secrets can result in significant loss and disruption, making it essential for organizations to have robust safeguards in place to protect their trade secrets. Here, we explore clear steps organizations can take to manage and mitigate risks with a focus on trade secret identification and the role of employees in trade secret protection.

Mission Critical: Protecting Tech Trade Secrets

Fast-paced developments

The technology sector continues to experience huge transformation with emerging technologies and advancements in AI. Companies are investing heavily in developing capabilities, and new services and products. Rapid innovation and desire to be first to market, has caused trade secrets to become an increasingly preferred method of protection over other types of intellectual property regimes, such as applying for a patent, which can be costly and raise complex timing considerations. Trade secrets can protect algorithms, processes, datasets, customer lists, and more. The trade secrets of companies at the forefront of AI and other tech innovation are highly valuable.

Expanding threat landscape 

Threat actors are leveraging tech advancements to steal vast amounts of company information through more sophisticated and efficient attacks. Heightened internet usage increases hacking risks from competitors, foreign governments and hacktivist groups.

AI developments currently require high computational power, concentrating progress in large tech companies. However, the competitor landscape is changing, with many start-ups and established companies building applications within the AI technology stack, alongside new players entering the AI frontier race. The demand for tech talent with the skills to drive innovation is at all-time high, making trade secret protection critical.

In the past few years, tech companies have also been especially susceptible to the public disclosure of confidential internal documents by employee activists motivated by non-monetary factors.

Legal remedies

Legal frameworks for protecting trade secrets have become more robust and varied across jurisdictions. Injunctive relief (to prevent use of trade secrets and reclaim them) is an essential tool in trade secret breach cases. Victims may also pursue financial remedies, such as damages.

Organizations should lay the groundwork to maximize their options in the event of breach. Penalties for trade secret theft include fines and imprisonment for criminal offences, and even economic sanctions. These penalties broaden the options available to victims, provide an avenue that avoids some of the practicalities of enforcement from a business point of view, and serve as a powerful deterrent. 

“One factor making effective action against employee trade secret theft more difficult is that employees increasingly use personal devices or personal messaging apps to capture or transmit work-related information; companies’ ability to access employees’ personal devices and communications through personal messaging apps is limited.
Jonathan Isaacs, Head of China Employment Practice, Hong Kong

“As tech firms compete to attract and retain tech talent while adjusting their workforces for future business growth, employee movement has increased, making the protection of trade secrets from competitors more crucial than ever. Baker McKenzie’s international depth in handling these complex competitor trade secret disputes around the globe allow us to better advise our clients and allow them to leverage our worldwide industry experience in this field.
Bradford Newman, Chair of North America Trade Secrets Practice, Palo Alto

Continue Reading Top Strategies to Safeguard Tech Trade Secrets
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The immigration policies of the Philippines, Vietnam, and the US are evolving due to shifting political, economic, and social dynamics, creating unique challenges for employers. The Philippines has tightened its process for employing foreign nationals, introducing new rules which prioritize Filipino citizens and skill transfer from foreign employees. In Vietnam, recent government restructuring has caused temporary disruptions in work permit applications, further complicating the country’s already stringent process. And though the US has not seen significant changes in employment-based immigration legislation, other federal policy shifts are impacting employers’ ability to bring new employees into the country.

Join our Global Immigration and Mobility attorneys as they examine immigration trends in these countries and offer key insights for employers navigating the current complex landscape.

Click here to listen to the Mobility Minute.

*Captions are automatically generated. We apologize for any typos or errors.

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On 2 February 2025 the first deadlines under the EU AI Act took effect. This included the AI literacy provisions, responsibility for which will likely be with HR teams and the ban on prohibited AI systems. What do these and other upcoming changes under the Act mean for in-scope employers?  

In this webinar, our multijurisdictional panel will share their insights on how the new legislation reshapes the existing legal landscape.

Together, they will provide practical tips and examples progressing from an overview of the key provisions of the Act for employers before taking a deeper dive into some more complex areas and finishing with a practical case study. Some of the areas covered include:

  • Applicability of the AI Act: exploring the scope of the new legislation including identifying prohibited and high risk AI practices in the HR sphere.
  • Key obligations of employers including addressing the requirements already in place, managing liability risks in AI-driven processes at the intersection of AI and the GDPR and anticipating the required standards of human oversight where this applies.
  • Employee representative involvement including the varying works council information, consultation and, in some cases, co determination rights across EU jurisdictions.

The webinar will take place on Tuesday, 27 May 2025 at 15:00 BST / 16:00 CEST and is scheduled to run for one hour. If you reside in a different time zone and wish to verify your time – please see timeanddate.com for the time in your location.

We will use Zoom as the presenting platform for this webinar. Click here to register. Please forward this to any of your colleagues who may be interested.  

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With nearly two-thirds of U.S. companies mandating formal return-to-work policies, employers may face challenges in enforcing RTO practices. Multinational employers should be aware of five key considerations and practical solutions to avoid potential roadblocks.

Click here to continue reading this article.

Original article published in Law360.