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Join us for our virtual New York 2023-2024 Employment Law Update on Tuesday, February 13, 2024 at 1 pm ET.

In this 60-minute session, our team will highlight what employers in New York and the surrounding areas need to know to effectively navigate 2024, with practical tips to handle the latest developments including:

  • The shifting legal landscape impacting employee noncompetes in the US and globally, with a focused update on New York, New Jersey, and Massachusetts (plus important considerations when including noncompetes in equity awards)
  • Best practices for using AI in the workplace, with a look at how New York City’s Local Law 144 is impacting employers, and pending legislation in New York State, New Jersey, and other states
  • A “quick hits” roundup of the most impactful changes for US employers this year, including the status of pay equity / pay transparency requirements and the NLRB‘s recent employee-friendly wave of decisions

Click here to register.

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Baker McKenzie is pleased to invite you to an afternoon exploring strategy and risk in the year of the dragon.

Alongside industry leaders from Meta and Dayforce, this will be an interactive discussion exploring how businesses can harness the power and auspiciousness of the mythical dragon in building a comprehensive data, AI and cyber governance program, folding in audits and risk assessments and staying ahead of the growth in litigation, government scrutiny, and liability in the digital world.

After our substantive discussion, we invite you to stay for cocktails and networking.

Agenda

Building a Comprehensive AI and Data Governance Program

  • Guidelines for determining your company’s risk appetite, understanding your role, forging enterprise relationships to build the program, and leveraging external providers and resources
  • Fundamentals of holistic AI and data governance programs, and how to fold cyber, privacy and AI into your existing framework
  • Understanding new technologies, developing risk and impact assessments and practical steps for mitigating risk and unlocking power of your data

The Growth of Personal and Enterprise Liability in the Digital World

  • Litigation trends from 2023 cyber, privacy and AI cases and lessons learned
  • Criminal and regulatory enforcement trends and risks in the AI space
  • Individual criminal liability for CISOs and beyond (SEC v. Yahoo (Altaba) and SEC v. Solarwinds) and what to do in light of the ever-present risk of an internal or government investigations
Tuesday, February 6, 2024
Program 4:00 to 6:00 pm, Reception to follow
El Prado Hotel, 520 Cowper Street, Palo Alto
Click here to register.
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In late breaking news out of New York, Governor Kathy Hochul has vetoed legislation that would have imposed the most restrictive state-level ban on employee non-competes in the United States. Last June, the New York State Assembly passed S3100, which if signed by Governor Hochul, would have voided any contract restraining anyone from engaging in a lawful profession, trade or business of any kind. It also would have given employees a private right of action and, significantly, did not contain an exception for the sale of businesses, making it more restrictive than even California’s draconian non-compete laws.

The bill faced fierce opposition by Wall Street and other industries that heavily rely on non-competes. As reported by the New York Times, Governor Hochul attempted to negotiate with the bill’s supporters to narrow its scope so that it applied only to lower-wage workers. However, when negotiations broke down, Governor Hochul vetoed the bill.

What’s Next

The bill’s sponsor promises to reintroduce the legislation this year. We don’t claim to be fortune tellers, but the odds of a watered-down restriction on non-competes in New York seem likely in 2024, continuing the hostility states across the country are showing to employee non-competes. However, Governor Hochul’s decision to veto S3100 is an encouraging sign because it recognizes that non-competes play an important role in protecting legitimate business interests. We are watching this space closely and will continue to report developments on our blog.

For a closer look at non-compete developments in the US and the implications in a deal context, tune in to our webinar on January 25. Click here to register.
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Special thanks to co-presenters Teresa Michaud and Bradford Newman.

California’s CLE Compliance Deadline Is Approaching…    
We can help!

If your last name starts with H-M, you are probably well aware that your CLE compliance deadline is right around the corner – February 1, 2024. In addition to the general credit requirement, the state of California requires all attorneys to complete:

  • At least four hours of legal ethics
  • At least one hour on competence issues
  • At least two hours on the elimination of bias in the legal profession and society. Of the two hours, at least one hour must focus on implicit bias and the promotion of bias-reducing strategies.

Our lawyers will offer three virtual sessions, focused on key considerations for AI development and utilization, to help you meet your CLE requirements. These sessions will also offer CLE credit in the states of Illinois, Texas, and New York. Participants requesting CLE for other states will receive uniform CLE certificates. 

Please register and let us know which individual session(s) you plan to attend. We look forward to your participation!

Promoting Unity: Overcoming the Risks of Bias and Prejudice in the Workplace

Tuesday, January 16, 2024 | 1:00 – 2:00 pm Pacific
1 hour Elimination of Bias credit (pending approval)

Continue Reading California AI CLE Series
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Special thanks to co-authors Glenn Fox and Paul DePasquale.

One of the biggest sleeper issues (in my opinion) for US companies when granting equity awards to non-US employees or other service providers is the fact that their heirs may be assessed with US estate tax and be required to file an estate tax return in the US if the individual dies while holding equity awards or shares.

US Estate Tax Exemptions

Individual US taxpayers (i.e., US citizens and non-US citizens who are domiciled in the US) can currently benefit from a significant estate tax exemption: no estate tax is due unless the value of the estate exceeds US$13,610,000 (this is the inflation-adjusted amount for 2024), reduced for taxable lifetime gifts, but doubled for married couples if both spouses’ estates qualify for the exemption. Accordingly, relatively few US estates currently are subject to estate tax. In any event, US employees and their heirs will most likely be well aware of possible estate tax consequences for their assets, including equity awards and shares acquired under a company share plan.

Continue Reading A Cautionary Tale: US Estate Tax May be Due on Equity Awards/Shares Held by Non-US Residents
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Roses are red,
Violets are blue,
You signed a noncompete,
That may not be true.

Last year, California lawmakers double-downed on the state’s hostility to noncompete agreements. One of the new provisions requires written notice to current and former employees that their noncompete is void – unless an exception applies – by Valentine’s Day (February 14, 2024).

Two New Bills Restricting Noncompetes in California

First, as covered in our Legislative Reference Guide, SB 699 extends the reach of the state’s ban on noncompetes to contracts signed out of state; creates a private right of action for employees whose agreements include restrictive covenants and provides for attorney fees for any current, former, or even prospective employee who successfully brings suit against an employer’s use of those restrictive covenants.

Second, AB 1076, codifies the 2008 Edward v. Arthur Andersen decision that invalidated all employment noncompetes, including narrowly tailored ones, unless they satisfy a statutory exception. In addition, impacting your Valentine’s Day plans, the legislation requires California employers to individually notify current and former employees employed since January 1, 2022 in writing by February 14, 2024 that their noncompete clauses are void. Individualized notice is required to the employee’s last known mailing and email addresses.

Continue Reading No Love Lost: California’s Continued Crackdown on Noncompetes Requires Breakup Letters Sent Before Valentine’s Day
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New York never rests–especially for employers–and 2023 was no exception. In 2023, New York employers were required to continuously pivot to meet new obligations and adhere to new limitations under freshly-enacted laws, and to closely follow landmark legislation that would significantly impact the workplace if signed. At the top of the list: S3100, a bill that would have banned employers’ use of employee noncompetes if signed (but employers can now breathe a sigh of relief, because Governor Hochul recently vetoed the bill). 2024 promises to continue to be dynamic for New York employers.

Here are ten of the most important changes New York employers need to know right now as we step into 2024–as well as what’s coming down the pike, a couple of important changes you may have missed, and what we’re keeping an eye on as we step into the new year.  

What you need to know right now

1. New York’s bill restricting noncompetes vetoed by Governor Hochul

On December 22, 2023 Governor Hochul vetoed S3100, which would have been the most restrictive state-level ban on employers’ use of noncompetes to date if it had been signed into law. Passed by the New York State Assembly in June 2023, S3100 provided that every contract restraining anyone from engaging in a lawful profession, trade or business of any kind is void to the extent of the restraint; allowed a private right of action for employees; and did not have an explicit “sale of business” exception (for more details on the now-vetoed legislation, see our prior blog here.)

The bill faced opposition by Wall Street and other industries that heavily rely on noncompetes, and business groups pushed for amendments to the bill (which the governor had until the end of 2023 to sign or veto). In late November, Governor Hochul reportedly stated she was in favor of striking a balance that would protect lower- and middle-income workers (up to $250,000) but allow noncompetes for those at higher income levels who are better equipped to negotiate on their own to do so. Reports are that Governor Hochul recently tried to negotiate amendments to the bill in this respect, but that negotiations broke down.

Employer takeaway:

  • We expect this issue to make an appearance in New York’s next legislative session. Employers should keep an eye out for the introduction of new bills to restrict noncompetes and follow their progress. Now that Governor Hochul has expressed favor for an income threshold to ban noncompetes, legislators may be more likely to craft a bill that will more easily be signed into law.
Continue Reading New York Employer “Top Ten” (and more): What to Know Heading into 2024
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Special thanks to co-presenters Nandu Machiraju and William Rowe.

Where the sellers or shareholders in a corporate transaction are individuals (especially where they may continue on as employees of the buyer), noncompetes are a valuable tool in a deal lawyer’s toolbox. However, there is a clear trend of increasing hostility to the use of noncompete agreements coming from different levels of the US government. Courts have started taking a closer look at sale of business noncompetes. While a growing number of states have banned or limited the use of noncompete agreements in the employment context, leaving companies to make sense of a patchwork of different state-level requirements and federal actions. 

Lawyers from our employment, antitrust and litigation practice groups share their advice from the trenches and what you need to know in 2024 about the current issues surrounding the enforceability of noncompete agreements.

Click here to listen to the webinar.

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What Canadian Employers Need to Know to Ring in 2024

In 2023, we helped Canadian employers overcome a host of new challenges across the employment law landscape. Many companies started the year with difficult cost-cutting decisions and hybrid work challenges. We’ve worked hard to keep our clients ahead of the curve on these issues, as well as address new legislation, developing case law, and other new workplace trends and developments.

In our 75-minute “quick hits” format, we’ll help Canadian in-house counsel and human resources leaders track what to keep top-of-mind for 2024.

DATE: WEDNESDAY, FEBRUARY 7, 2024
TIME: 11:00 AM TO 12:15 PM ET

Our discussion will include:

  • Key legislative developments including:
    • The progress and implications of Ontario’s latest “Working for Workers” legislation
    • Implications of Pay Transparency Legislation in British Columbia and the rest of Canada
    • An update on implementing the changes imposed by French Language Legislation in Quebec and the Federal Jurisdiction
  • Significant case law developments impacting:
    • Alberta’s new “tort” of harassment
    • Discrimination based on family status in British Columbia
    • Termination provisions in Ontario
    • Changes to the substratum rule 
  • Immigration developments and lessons learned in 2023
  • Best practices for managing generative AI in the workplace 
  • Navigating key Competition Act changes
CLICK HERE TO REGISTER.
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In this 75-minute “quick hits” style session, our team reviewed the challenges we helped California employers overcome in 2023 and the key legislative changes coming in 2024.

Among other topics, we discussed:

  • How to best protect company trade secrets given the expansion of the state’s restrictions on noncompetes under SB 699 and AB 1076
  • Best practices and crucial steps to take to avoid costly wage and hour class actions
  • Practical tips for managing charged speech in the workplace, as well as action items to consider with ID&E programming in the wake of the Supreme Court’s SFFA decision
  • Increased paid sick leave under SB 616 and the new leave entitlement for reproductive loss under SB 848
  • A quick update on new privacy rules employers need to know and more!
Please click here to view a recording of the California Employer Update 2023-2024 Webinar.
* Plus * a few stocking stuffers for our blog friends 🙂

Happy Holidays from all of us!

Click here to register for upcoming sessions, and to watch recordings of any you may have missed.