Handbooks & Policies

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(Thank you to our Baker McKenzie colleagues in Mexico for sharing this alert.)

As a result of a change in government leadership and recently signed laws and treaties, companies in Mexico now have an important “to do” for 2019: prepare to review any unions that are “on the books” and assess compliance in this new environment.

What are “White Unions”?

  • White Unions in Mexico are usually employer-friendly unions that — due to current legislation deficiencies — can effectively bar entry of other unions who might otherwise attempt to gain a foothold in the workplace. They have little to no actual membership and do not actively represent workers. Historically, any union could petition for unionization without the need to prove the support of workers.

What changed?Continue Reading Companies Doing Business In Mexico Need To Revisit Union Relationships

2018 was, without a doubt, another extraordinary year for US employers. The #MeToo movement continues to have a tremendous impact on the workplace. In addition, the thorny issue of how to manage contractor classifications in the gig economy continued to evolve and new DOJ enforcement activity is heightening concerns about no-poaching agreements and other antitrust

…

With thanks to our colleagues Lois Rodriquez (Baker McKenzie Madrid) and Nadège Dallais (Baker McKenzie Paris):

US companies expanding in Europe for the first time are often surprised to learn of the significant employee protections afforded to European employees (e.g. for example, employment at-will, for the most part, does not translate outside the US). An emerging “right to disconnect” is a new trend US multinationals should watch out for.

Spanish lawmakers recently passed a new act recognizing for the first time ever an employee’s right to digital disconnection. Under this new regulation, all companies with employees in Spain (regardless of headcount) must establish detailed internal policies regulating the right to disconnect after work hours. These policies must apply to all employees, even management and home-based workers.Continue Reading Outside The US, Countries Are Increasingly Recognizing An Employee Right To Disconnect

As we previously discussed here, the United States Supreme Court’s May 2018 decision in Epic Systems v. Lewis was a clear win for employers that seek to avoid the expense and disruption of class litigation by resolving disputes individually through binding arbitration. As explained by the Supreme Court in AT&T Mobility LLC v. Concepcion, “[i]n bilateral arbitration, parties forego the procedural rigor and appellate review of the courts in order to realize the benefits of private dispute resolution: lower costs, greater efficiency and speed, and the ability to choose expert adjudicators to resolve specialized disputes.”

For employers looking to take advantage of the benefits of individual arbitration, there are several drafting nuances to consider before rolling out or updating existing arbitration agreements.Continue Reading You Had Me At “Class Action Waiver”

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

The Department of Labor’s newly issued opinion letter provides good news for employers who use tipped workers. On November 8th, the DOL reversed its previous “80/20” guidance on use of the tip credit. The tip credit permits employers to pay employees in tip-based positions, such as bartenders and waiters, a lower hourly wage than the federally mandated minimum wage (with the thought that earned tips will make up the difference). Under the previous “80/20” rule, employers were barred from paying the lower cash wage to tipped employees who spent more than 20% of their time performing non-tip generating duties such as setting tables or cutting lemons.Continue Reading DOL Eliminates “80/20” Tip Credit Rule

California courts mostly take a no prisoners approach to Business and Professions Code section 16600, the statute prohibiting illegal restraints on trade. Courts broadly interpret Section 16600, which states that “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void,” to invalidate most post-employment non-competes and customer non-solicits, including covenants preventing former employees or their new employers from “hiring” employees of a former employer (so-called “no hire agreements”). But Section 16600 does not bar all post-employment covenants–just those that “restrain” trade.

Continue Reading Familiarity Breeds Contempt—And [Litigation Over Employee Non-Solicits]

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?

Illinois employers will have a new headache this new year, because as of January 1, 2019, they must reimburse employees for all “necessary expenditures and losses” incurred within the scope of their employment. This August, the Illinois Wage Payment and Collection Act changed to specifically include an expense and loss reimbursement requirement.Continue Reading New Expense Reimbursement Requirements For Illinois Employers

Government contractors are familiar with the obligation to retain minority or women-owned businesses as subcontractors to obtain government work. Increasingly, apex private sector businesses require participation by minority or women-owned businesses as a condition of obtaining work, as well.

A recent decision by the federal court for the Southern District of New York is a cautionary tale, and highlights the care required when terminating a minority business enterprise (MBE) sub-contractor. Annuity Funds Operating Engineers Local 15 v. Tightseal, No. 17-CV-3670 (S.D.N.Y. August 14, 2018).Continue Reading Termination Of An MBE Can Lead To Liability