“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
For a company to effectively expand its global footprint, it’s almost always necessary to engage workers on the ground. The legal risks and opportunities in structuring these relationships differ significantly around the world, and the complexity is further compounded by the intersection with other areas of law, including tax, corporate, intellectual property and employment, to…
We are pleased to invite you to our webinar series on the Subcontracting Reform in Mexico this Tuesday, May 4. We will offer one session in Spanish and one in English.
During the first part, our specialists will discuss the impact of the Reform on companies operating in Mexico from the perspective of the different…
On November 12, 2020, the President of Mexico, Andres Manuel López Obrador, sent a draft bill to dramatically change subcontracting (outsourcing) regulations applicable to private companies. If approved by Congress, the bill will significantly impact companies with outsourcing and insourcing (with dual…
What has changed
On December 10, 2019, the United States, Canada and Mexico reached an agreement on a revised United States-Mexico-Canada Agreement (“USMCA”), which establishes a rapid response labor mechanism (“RRLM”) for dispute resolution for alleged violations of the right of freedom of association and the right to collective bargaining in these countries. The mechanism allows the US and Canadian governments to make claims against facilities in Mexico for potential violations of these rights, to the extent that the rights are established by Mexican law. The Mexican government may also file a claim for potential violations to these labor rights in the US or Canada, but only if the facility involved is under an enforced order of the National Labor Relations Board or the Canada Industrial Relations Board, respectively. This mechanism cannot be invoked for disputes of this nature between the US and Canada.Continue Reading USMCA Labor Provisions Have Potential Commercial Impact
Join us in our new Palo Alto office for a breakfast briefing on October 30 as we explore the top 5 trends impacting multinational employers in EMEA.
Hear from leading practitioners in 5 key EMEA jurisdictions – France, Germany, South Africa, Spain and the United Kingdom – as we address these key developments:
Today California Governor Gavin Newsom signed a landmark bill making it more difficult for companies to engage independent contractors. (See our previous coverage HERE.) Assembly Bill 5 “will help reduce worker misclassification — workers being wrongly classified as ‘independent contractors’ rather than employees, which erodes basic worker protections like the minimum wage, paid sick days and health insurance benefits,” Newsom wrote in a statement.
Continue Reading The Controversial ABC Test From Dynamex Is Codified In Law — California’s Gig Economy Braces For Change
We’re excited to announce a new article authored by Jim Baker that was published in the Summer 2019 issue of the Benefits Law Journal.
In this article, Jim covers how the dramatic increase in the number of workers who are classified as independent contractors is changing how employers and workers interact, specifically the implications on…
On July 22, 2019, a three-judge panel for the Ninth Circuit withdrew its holding that Dynamex Operations West, Inc. v. Superior Court—the landmark California Supreme Court decision that makes it harder for companies to rely on independent contractors—applies retroactively. The panel held instead that the question should be decided by the state’s highest court.
Continue Reading Scratch That: The ABC Test Might Not Apply Retroactively
The California State Assembly passes a Bill that codifies the infamous “ABC” test for independent contractor determination — will the Senate follow suit, and will the Governor sign the new legislation into law?
The New Bill
On May 29, 2019, by a 55-11 vote, the state Assembly passed AB 5, a bill that would codify the California’s Supreme Court’s decision in Dynamex Operations West, Inc. v. Superior Court.
Continue Reading California Assembly Passes Bill Codifying “ABC” Test For Independent Contractor Determination