Special thanks to Jose (Pepe) Larroque, Salvador Pasquel Villegas, and Martha Mayorga-Luna.
“Nearshoring” in Mexico is a hot topic for multinational companies considering moving business and manufacturing closer to home. COVID-19-era global supply chain disruptions and changes to the global economy are causing companies to reexamine their sourcing options and relocating to Mexico
Special thanks to co-presenters Luis C. Carbajo, Adriana Ibarra-Fernandez, Luis Adrián Jiménez Robles, Jose M. Larroque, Ma. Rosario Lombera González, Manuel Padrón-Castillo, Salvador Pasquel-Villegas, Javiera Medina-Reza, and Reynaldo Vizcarra-Mendez.
This year the Mexican government intends to raise an astonishing amount in revenue from large taxpayers and employers (Grandes Contribuyentes) without increasing tax rates or creating new taxes. To increase revenue, the federal government will significantly increase the number of audits and inspections touching on the areas of tax, customs and employment; accordingly, multinationals operating in Mexico need to prepare now for more intensive audits and inspections.
This special emphasis on inspections and audits will significantly impact the human and financial resources of Mexican subsidiaries of multinationals.
We are delighted to come together live in Mexico City with our Tax, Employment and Trade & Customs specialists to share experiences and offer comprehensive advice on this tough environment dealing with Mexican authorities. Our team has deep expertise and strong relationships with the authorities in Mexico and thus can share best practices and advice based on years of experience.
Among other topics, we will cover:
As discussed in our blog here, in February the National Labor Relations Board issued the McLaren Macomb decision prohibiting employers from “tendering” to employees separation or severance agreements that require employees to broadly waive their rights under the National Labor Relations Act.
Then, on March 22, the NLRB General Counsel Jennifer Abruzzo issued guidance addressing
On February 21, the National Labor Relations Board (NLRB) issued a decision in McLaren Macomb holding that employers may not offer employees separation or severance agreements that require employees to broadly waive their rights under the National Labor Relations Act (NLRA). In McLaren, a hospital furloughed 11 employees, presenting each with a severance agreement and general release that contained confidentiality and non-disclosure provisions. (See the exact provisions copied below.) The Board majority held that merely “proffering” a severance agreement containing unlawful confidentiality and non-disparagement provisions violated the NLRA because conditioning the receipt of benefits on the “forfeiture of statutory rights plainly has a reasonable tendency to interfere with, restrain, or coerce the exercise of those rights.”
At first blush, this may feel like a sweeping change requiring immediate action. However, it is important to consider this decision with a grain (or two) of salt, breathe and thoughtfully plan your next steps. The key points identified below are designed to help you think through a tailored approach for your organization¾there is not a one-size-fits-all solution. Your approach will depend on the type of workforce you have, your risk tolerance and what you are trying to protect. We are standing by, ready to assist, should you need further guidance.
Key Points
Labor unions seem to be having a resurgence after being on the decline for many years. Employers are concerned with this shift, and are wondering what they can do within the bounds of the law to keep a direct relationship with their workforce.
In this Quick Chat video, our Labor & Employment lawyers discuss the
Special thanks to Ma. Rosario Lombera, Manuel Antonio Calderón, Marco Rojas and Juan Valles.
In this Quick Chat video, our Labor & Employment and Tax lawyers discuss some of the most frequently asked questions regarding the Subcontracting Reform’s 2022 Inspection Program, through which authorities from the Ministries of Labor, Social Security and
Special thanks to our summer associate Brianna Miller for her contributions to this post.
In Trinity Services Group, Inc. v. NLRB, No. 20-1014 (June 1, 2021), the US Court of Appeals for the DC Circuit recently rejected the National Labor Relations Board’s (NLRB) attempt to prohibit employers from expressing opinions the NLRB considers baseless. In reversing the NLRB, the Court held that the National Labor Relations Act (the “Act”) only prohibits employer speech containing a threat of reprisal or the promise of benefits, and that expressions which are merely “views, arguments or opinions” are not unlawful.
The case arose when an employee discovered a mix-up regarding the amount of her accrued paid leave. When she raised the issue with her supervisor, he pinned the blame on the union. The NLRB and the Court both found there was no objective basis for blaming the union rather than the employer for the mix-up.
The Court examined the provisions in Section 8(a)(1) of the NLRA, which proscribes certain speech. Section 8(a)(1) makes it unlawful for an employer to “interfere with, restrain or coerce employees” in the rights guaranteed by the Act. The Court also considered the provisions in Section 8(c) which guarantees parties freedom of speech, specifically that “[t]he expression of any views, argument, or opinion…shall not constitute an unfair labor practice.” The Court sought to reconcile the two provisions, and holding that only speech containing a threat of reprisal or promise of benefits is prohibited by the NLRA, while Section 8(c) protects “any” view, argument or opinion. The Court held the statement the NLRB found illegal contained neither a threat of reprisal or the promise of benefit and thus was not illegal. Undeterred by the plain meaning of the word “any,” the NLRB requested the Court to create an exception under Section 8(c) for statements which are “patently false.” The Court rejected that request as contrary to the plain language of the section.
Ordinarily, courts defer to the National Labor Relations Board’s (NLRB) factual findings and its remedial orders given the Board’s broad discretion when fashioning a remedy. However, in the D.C. Circuit’s recent decision in RAV Truck & Trailer Repairs Inc. v. NLRB, 997 F.3d 314 (D.C. Cir. 2021), the Court refused to do so.
Sometimes being too persuasive can have a downside, as Peter Robb, former General Counsel of the NLRB can attest. Robb had convinced the NLRB to find an owner had illegally closed his business and had further persuaded the NLRB to order it reopened. Contrary to common practice, the Court refused to rubber stamp the NLRB’s factual findings or to defer to the remedy, stating that the NLRB’s order “does not purport to explain how restoration is even factually possible.” Instead, the Court gave the NLRB a second chance at finding the necessary evidence in the now closed record.
Continue Reading DC Circuit Court Reins in NLRB: No “Rubber Stamp” of NLRB’s Findings and Remedy
A second court of appeals has refused to adopt a National Labor Relations Board (NLRB) decision declaring an employee’s speech violated the National Labor Relations Act. See Tecnocap, LLC v. NLRB, 2021 U.S. App. LEXIS 18080 (4th Cir., June 17, 2021). Similarly, in a decision issued earlier this month, the D.C. Circuit vacated an NLRB decision, finding instead it was not unlawful for an employer to make a false statement. See Trinity Servs. Grp. v. NLRB, 2021 U.S. App. LEXIS 16314 (D.C. Cir., June 1, 2021) (which we blogged about here). In Tecnocap, the Fourth Circuit deemed the NLRB’s decision out of bounds because in its view the employer’s speech “communicated accurate and lawful information,” and did not constitute unlawful “direct dealing” with its employees.
Continue Reading NLRB Loses Second Recent Speech Decision
On February 4, 2021, House Democrats reintroduced the Protecting the Right to Organize Act of 2019 (PRO Act). The sweeping labor legislation, which would return many provisions of current labor laws to their pre-1947 status, would create new claims and impose punitive penalties and strengthen a number of union and employee rights. The legislation has
