In “Brazil’s new equal pay law: closing the gap,” partners Clarissa Lehmen and Leticia Ribeiro discuss how Brazil’s new law on equal pay puts pressure on local employers to proactively address gender equality issues within their organizations.
Read on to see how the new law introduces stricter penalties for discrimination, establishes a reporting obligation for
The global economic environment has resulted in many multinational companies turning to cross-border carve-out transactions as they refocus on their core business competencies and dispose of non-strategic product and service lines. These transactions, particularly those involving separating an integrated business division from the rest of a global company across dozens of jurisdictions, are complex and
Effective September 17, employers with four or more employees in New York state must include a compensation range in all advertisements for new jobs, promotions and transfer opportunities. A pay transparency fact sheet and FAQ document are available on the NYSDOL website with additional information and guidance on the new law.
We are pleased to share a recent LegalDive article, “Why companies should review noncompetes in equity award agreements,” with quotes from Barbara Klementz.
Given increased government scrutiny, employers need to be mindful of the time periods noncompetes cover and review state-specific requirements.
In the light of the sharp focus the federal government and a growing
Baker McKenzie’s annual Global Equity Academy is designed to provide stock administration, HR, legal, employment and tax professionals with a comprehensive training on the basics of global employee share plan offerings.
Our virtual series spans four 60-minute webinars, each followed by an optional 30-minute “study hall” for participants to ask additional questions of our presenters and discuss learnings
Given recent developments and trends in the United States relating to restricted covenants (especially non-competes), companies should take another look at any restrictive covenants included in equity award agreements.
To learn more about the possible approaches companies can take to deal with restrictive covenants for employees outside the United States, read our recent NASPP guest blog post.
Continue Reading Reevaluating Restrictive Covenants in Equity Award Agreements
As most California employers know by now, Senate Bill 1162 requires private employers of 100 or more employees (with at least one employee in California) to report pay and demographic data to the California Civil Rights Department (CRD) (formerly the Department of Fair Employment and Housing). Complicating matters, the law was amended to add a requirement to report data regarding workers hired through labor contractors.
The deadline for submitting pay data reports is May 10. If you are having trouble gathering information from labor contractors, you are not alone. So, if it looks like you might be late on the labor contractor employee report, we recommend seeking an extension from CRD through the portal ASAP. The good news is that extensions are available, but only for the labor contractor reports, and only through the portal. (Link here.) Requests for an extension must be submitted on or before May 10.Continue Reading Last Call for Compliance: CRD Pay Reporting Deadline May 10, But Extensions Available
Special thanks to co-author, Jeff Bauman.
It is common practice for US-based multinational companies to adopt executive severance plans to provide for additional benefits to be paid to executives in the event of certain specified termination events, including those in connection with the change of control of the parent. These benefits may consist of
The New York City Council is already considering an expansion to the City’s pay transparency law to require NYC employers to include a description of non-salary or non-wage compensation in job postings. Dramatically increasing the burden on employers, the proposed ordinance would require a description of “bonuses, benefits, stocks, bonds, options and equity or ownership, if any.”
Background
As discussed here, New York City’s pay transparency law (Local Law 32 and its amendment), went into effect on November 1, 2022, and requires NYC employers with four or more employees to disclose in job postings – including those for promotion or transfer opportunities – the minimum and maximum salary offered for any position located within New York City. This range may extend from the lowest to the highest salary that the employer in good faith believes at the time of the posting it would pay for the advertised job, promotion, or transfer opportunity.
Update
On February 2, 2023, the Council introduced Int. No. 907, a local law to amend the administrative code of the city of New York, broadening the information that must be disclosed in job postings.Continue Reading Proposed Expansion of NYC’s Pay Transparency Law Includes Bonuses, Equity Awards and Other “Non-Wage Compensation”
Special thanks to Geoff Martin and Maria Piontkovska.
On March 3, 2023, the Criminal Division of the United States Department of Justice (“DOJ”) published details of a three year Pilot Program Regarding Compensation Incentives and Clawbacks (the “Compensation Pilot Program”). The Compensation Pilot Program is effective March 15, 2023 and from that date it will be applicable to all corporate criminal matters handled by the DOJ Criminal Division. At the same time, DOJ also updated its Evaluation of Corporate Compliance Programs guidance document to reflect the criteria introduced by the Compensation Pilot Program, among other updates.
Background and Objectives of the Compensation Pilot Program
The concept of incentivizing corporate compliance by structuring compensation programs to reward compliant behaviors and punish non-compliant ones, is nothing new. For example, prior editions of the Evaluation of Corporate Compliance Programs addressed appropriate incentives for company management and executives to promote good governance and compliance, and expectations about the consistent application of discipline against employees found to be involved in misconduct.
However, in a September 2022 memo to DOJ prosecutors titled: “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group“, Deputy Attorney General Lisa Monaco indicated that DOJ intended to go further on this particular topic. In the memo, Monaco indicated that DOJ would expect companies to design compensation structures not only to incentivize and reward good compliance practices, but also to financially penalize individual employees found to have been engaged in misconduct, including by clawing back compensation after the fact.
DOJ’s objective in this initiative is to encourage companies to redistribute some of the cost and penalties associated with individuals’ criminal conduct away from the company (and its shareholders) and onto the individuals themselves. Because misconduct is often discovered after the fact, measures that enable retroactive discipline and clawback of compensation already paid, are of particular importance to DOJ. These measures also reinforce DOJ’s continued focus on individual accountability which has been another of DOJ’s recent areas of focus in addressing corporate criminal matters.
Six months after Monaco’s memo, the Compensation Pilot Program now puts concrete DOJ policy in place to implement those objectives. At the end of the three year pilot period, DOJ will determine whether the Compensation Pilot Program will be extended or modified. If it is deemed a success, we can expect the Compensation Pilot Program to be fully adopted by DOJ. Continue Reading Practical Considerations When Addressing New DOJ Compensation Incentives and Clawbacks Program
