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Not surprisingly, summer internships look a bit different this year. Some are cancelled outright, others cut short, and many are virtual. Amidst these changes, we know employers have more than a few questions . . .

Q. If my company is cancelling its planned summer internship, do we have to provide any cash compensation?

A. Not unless there is a contract in place to do so. Nonetheless, we’ve seen a number companies offer to pay a portion of the expected wages (and a few very generous employers have sought to pay the entire amount).

Q. And, if we want to pay our intern some amount for the lost opportunity, do we have to put them on the payroll?

A. Yes. The IRS takes the position that, from a tax perspective, paying any amount, in lieu of wages to a prospective employee who is never actually employed is nonetheless wage income subject to income tax withholding, social taxes, etc. Some employers are a little stumped by how they can set somebody up on the payroll just to make this one lonesome payment. But, it is doable. It requires some administrative tasks like getting the required federal and state withholding forms and setting the person up in the employer’s payroll system. For federal purposes, the required form is the Form W-4 that an employee fills out during onboarding for a new job, which form will require the employee to provide a social security number (or other taxpayer identification number) and other information needed for the payment to be properly reported on Form W-2 and withheld upon.


Continue Reading FAQs About Summer Internships During the Pandemic

We hope you found last week’s video chat series helpful and informative. Due to popular demand, we are continuing this series of quick and bite-sized video chats, where our employment partners team up with practitioners in various areas of law to discuss the most pressing issues for employers navigating the return to work.

This series

Welcome to Baker McKenzie’s Labor and Employment video chat series! In these quick and bite-sized video chats, our employment partners team up with practitioners in various areas of law to discuss the most pressing issues for employers navigating the return to work.

This series builds on our recent client alert and webinar on reopening for

We’re pleased to share a recent Bloomberg article authored by our colleagues, Benjamin Ho and Caroline Pham. Ben and Caroline examine what the next generation of workers, Generation Z, expect from and can offer employers.

To get ahead of the curve in preparing for the change that this new generation will bring, check

For many companies, their compensation plan year coincides with the calendar year. So, as we approach the end of 2018, it’s a holly, jolly time to review, revise and plan for implementation of commission and bonus compensation plans for 2019. (And, for those companies on non-calendar year comp cycles, it’s a good time to start on that New Year’s resolution and get ahead.)

We are decking the halls with requests for commission and bonus compensation plan reviews to make it before the ball drops on December 31.


Continue Reading Do You Hear What I Hear? It’s Comp Plan Review Season Everywhere

As employment lawyers based in California are well aware that post-employment non-compete agreements are generally void as a matter of law in this state. Further, there is precedent for awarding punitive damages and disgorgement of profits where employers have knowingly required employees to enter into invalid agreements. Also, the DOL has actively pursued California-based companies engaging in anti-competitive practices when it comes to talent.

Against that backdrop, however, employers need not “throw in the towel” completely when it comes to post-termination restrictive covenants as there are a few narrow scenarios that allow for enforceable post-termination non-competes in California in the right circumstances, and a potential new take on an old strategy to consider.


Continue Reading Can Employers Use The California Labor Code To Protect Company Assets?

In our latest podcast, Baker McKenzie partner Ben Ho introduces Monica Kurnatowska to talk about employment laws in the UK and give an overview of what changed in 2017 as well as what we can expect for the year ahead.

Key Takeaways:

  1. Brexit – UK employment rights will generally be unaffected in the short term,

If your plan year coincides with the calendar year, the time to review your commission / bonus compensation plans is NOW.

We’re getting down to the wire. Friendly reminder that if you hope to make changes to 2018 commission / bonus compensation plans, act fast!

Recall that in most jurisdictions OUS, changes to terms and