An update from our neighbors to the north (with thanks to Chris Burkett, partner in our Toronto office):

In January, the Ontario Court of Appeal (in Canada) overturned the lower court’s decision in Heller v. Uber Technologies Inc., 2019 ONCA 1. The Court of Appeal held that an arbitration clause requiring arbitration in the Netherlands of disputes between drivers and Uber to be invalid and unenforceable. Based on the presumption that Uber drivers are employees of Uber, the Court of Appeal found that the arbitration clause was a prohibited contracting out of Ontario’s Employment Standards Act, 2000 (ESA). Continue Reading Canadian Court Invalidates Arbitration Clause Requiring Arbitration In Foreign Jurisdiction

On January 25, 2019, the National Labor Relations Board reaffirmed its adherence to the traditional common law independent contractor test for determining whether a worker is an employee or an independent contractor under the National Labor Relations Act.

In SuperShuttle DFW, Inc., the Board expressly overruled its 2014 FedEx Home Delivery decision. In FedEx, the Board drastically reduced the significance of entrepreneurial opportunity in the determination of independent contractor status. FedEx emphasized the right to control factors relevant to the so-called “economic realities” test and gave weight to whether a worker was in fact “seizing” actual opportunities and rendering services as part of their own independent business.

SuperShuttle DFW, Inc. is significant as it abandons the Obama-era standard and gives a boost to companies using contract labor by elevating the importance of entrepreneurial opportunity in the independent contractor analysis. Insodoing, the Board returns the legal framework to its traditional common law roots and adds the examination of entrepreneurial opportunity. The decision suggests that moving forward, the Board “evaluate the common-law factors through the prism of entrepreneurial opportunity when the specific factual circumstances of the case make such an evaluation appropriate.”

Continue Reading Emphasizing “Entrepreneurial Opportunity,” The NLRB Returns To Business-Friendly Independent Contractor Test

What are the people implications of Brexit under a no-deal scenario compared to what is likely to happen if a deal can be reached?

Download our full analysis of the implications for employees, including the impact on the right to travel and work across the EU, employment rights and social security.

In summary

  • Little change is expected to UK employment rights on 29 March 2019, whether or not a deal is reached.
  • Any new deal which is approved is likely to contain the same people provisions as those set out in the current draft UK-EU Withdrawal Agreement, although this is not guaranteed. We explain those provisions in our full analysis.
  • In a no-deal scenario, EU citizens in the UK will be able to apply to remain in the UK using the New EU Settlement Scheme but it is unclear whether UK nationals working in the EU will benefit from similar protection.
  • If a deal is reached, there will be a transition period during which all EU employment law will continue to apply. After that, despite long-term scope for future watering-down or dismantling of EU-derived worker rights, this is not the current UK government’s stated intention and any future trading agreement may involve some form of continuing commitment to shared employment standards.

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(With thanks to Stephen Ratcliffe and Tony Haque in our London office.)

Explosive growth in emerging markets has created a significant demand for companies to move workers around the globe to explore and seize new opportunities. At the same time, there has been an equally significant demand for companies to reduce their mobility costs. As a result, traditional employees are now more likely to be sent on short trips to fill specific business or customer needs, and project-based assignments are often more likely to be filled by a modern workforce that includes a variety of nonemployees.

A large majority of companies have seen an increase in these new types of assignments. Nevertheless, many still do not have formal guidelines for managing frequent crossborder travelers, and they admittedly fall short of properly educating their managers and mobile workers on the potential risks of these arrangements. Consequently, many vulnerabilities and misconceptions persist. Additionally, the growing prevalence of accidental expats has led to heightened scrutiny, incentivizing governments to crack down on business travelers and, with the assistance of technology, to become more adept at catching transgressions.

Continue Reading Modern Mobile Workers & The Accidental Expat

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 activity. In 2019, employers will confront a host of new laws in 2019 on topics ranging from sick leave, lactation accommodation, salary history inquiries and much more.

Our 2018/2019 Digest is a fantastic resource to help you navigate the changes ahead and chart your course for 2019.

 

Click here to download the full Digest.

2018 has been a year of box office hits for California employers, but the critics remain skeptical.

On December 13th, join Baker McKenzie at the Westin SFO in Millbrae from 9 AM to 12 PM for our annual employment law update as we review the employment winners in 2018 and share our predictions for the year ahead.

With our director and producers keeping us on track, our cast and crew will cover topics including:

  • National and CA wage and hour updates and trends
  • California’s hot-off-the-press #metoo legislation
  • New CA requirements for female board members
  • Clarifying California’s salary history ban
  • Living and litigating in the gig economy for multi-state employers
  • Immigration changes affecting California employers
  • And much more!

We will also go “on location” and share a few international trends.

Join Us and Win!

The concession stands are open! Join us for a chance to win movie night themed prizes and more. Click here to view the full invite for more details on time, location and our cast and crew, and click here to RSVP.

In a welcome decision for franchisors, and first of its kind in the Second Circuit, the Southern District of New York ruled that Domino’s Pizza Franchising LLC, the franchisor (Domino’s), did not exert enough control over its franchisee to warrant joint employer status. This determination means Domino’s will not have to face claims brought under the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL) by current and former employees of a Domino’s franchisee.

Click here to read more about the case, the decision and takeaways for employers.

Please join us for a complimentary breakfast briefing in Los Angeles on October 16 and in Palo Alto on October 17 to study new employment law updates from Asia Pacific.

Baker McKenzie’s employment law attorneys from Australia, China, Hong Kong, the Philippines, Singapore and Taiwan are coming to California to translate the recent trends, make sense of new laws and break down the hot topics facing US multinational employers operating in those countries today. Topics include:

  • Workplace gender equality reporting in Australia
  • The #MeToo movement in China
  • Work hour flexibility in Taiwan
  • Major employment law changes expected in Singapore
  • Contracting in the Philippines
  • Recent bonus/share option avoidance cases in Hong Kong

Click here for more details, including how to register.

In recent years, joint employer liability has emerged as a persistent threat for companies who use franchise business models. Franchisors are increasingly facing claims brought by employees of franchisees for entitlements flowing from their employment. The outcome in these cases is unpredictable because the law is undergoing change. As such, the joint employer aspects of franchising arrangements can prove to be a minefield for the unwary and are a growing global concern.

Click here to read the full article (originally published in the September 2018 edition of Franchising World), which covers key developments in joint employer liability for franchisors operating in Australia, Canada and Mexico and describes a proactive approach to help mitigate risk.