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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.

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Special thanks to co-authors Priscila Kirchhoff* and Tricia Oliveira*.

In July, Brazil passed a new Gender Pay Gap law (effective immediately) that requires companies with more than 100 employees — for the first time — to publish a report on salary transparency and compensation criteria (a ‘Salary Transparency Report’) every six months. The report must be published on company websites and/or on social networks, as well as shared with the Ministry of Labour and Social Security. 

When there is failure to comply, severe sanctions have been introduced. And, in a proven case of wage discrimination due to sex, race, ethnicity, origin or age, in addition to the payment of salary differences, Law 14,611/23 establishes that payment of a fine equal to ten times the new monthly salary must be paid to the individual discriminated against (this is doubled in the case of recurrence).

Click here to continue reading.

*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

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Special thanks to co-presenters Ricardo Castro-Garza, Alfonso García-Lozano and Javiera Medina-Reza.

This year our team helped Mexican employers overcome a range of challenges across the employment law landscape — from keeping up with evolving health & safety obligations, defending contentious employment disputes, supporting the legitimization of collective bargaining agreements, and much more.

In this episode of Quick Chats for the Mexican Workplace, we review key labor and employment lessons from 2023 and prepare you for the challenges ahead in 2024. For example, we’ll discuss:

  • Best practices for legitimizing collective bargaining agreements
  • Increases to vacation entitlements
  • Proposed amendments to the Federal Labor Law to reduce the hours in a workweek

Possible changes to laws restricting criminal background checks

This video was recorded on November 29, 2023. With the rapid changes in Labor & Employment law, please be sure to subscribe to The Employer Report blog for the latest updates and stay tuned for our next Quick Chats for the Mexican Workplace episode.

Click here to watch the video.

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On January 1, 2024, businesses must post updated Privacy Policies under the California Consumer Privacy Act (CCPA), which requires annual updates of disclosures and fully applies in the job applicant and employment context since January 1, 2023.

With respect to job applicants and employees, businesses subject to the CCPA are required to:

  1. Issue detailed privacy notices with prescribed disclosures, terminology, and organization;
  2. Respond to data subject requests from employees and job candidates for copies of information about them, correction, and deletion;
  3. Offer opt-out rights regarding disclosures of information to service providers, vendors, or others, except to the extent they implement qualified agreements that contain particularly prescribed clauses; and
  4. Offer opt-out rights regarding the use of sensitive information except to the extent they have determined they use sensitive personal information only within the scope of statutory exceptions.

If employers sell, share for cross-context behavioral advertising, or use or disclose sensitive personal information outside of limited purposes, numerous additional compliance obligations apply. For more: see also our related previous post: Employers Must Prepare Now for New California Employee Privacy Rights.

Key recommendations to heed now

Continue Reading Looking ahead to 2024: California privacy law action items for employers
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It is an unprecedented time for California companies’ privacy law obligations. The California Privacy Rights Act (CPRA) took effect on January 1, 2023 with a twelve-month look-back that also applies to the personal data of employees and business contacts. The California Privacy Protection Agency recently finalized regulations and has kicked off a new phase of rulemaking including on risk assessments, cybersecurity audits, and automated decision-making technology (draft regulations on each of these topics have been published). Meanwhile, the California Legislature is enacting privacy laws even though it has not repealed or streamlined any of the myriad California privacy laws that continue to apply in addition to the California Consumer Privacy Act (CCPA). 

With this virtual seminar series, privacy specialists from Baker McKenzie offices in California want to help prepare you for new and upcoming privacy compliance tasks in various business areas, in collaboration with other practice groups.

California residents are increasingly exercising data subject rights to access, correct and delete personal information. Companies receive requests from consumers, employees, and organizations that claim to act as “authorized agents.”

Join us online on January 11 @ noon pacific to learn more about the CCPA’s requirements and for practical and operational tips on frequently asked questions.

Click here to register.

CLE will be offered.

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We are pleased to share with you The Global Employer – Global Immigration & Mobility Quarterly Update, a collection of key updates from Australia, China, Hong Kong, Italy, Philippines, South Africa, United Kingdom, United States and Vietnam.

Click here to view.

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We’re not even out of 2023, and New York employers who engage independent contractors already have new obligations to reckon with before next spring. On November 22, 2023, New York Governor Kathy Hochul signed the New York State “Freelance Isn’t Free Act”, increasing obligations for parties who engage freelance workers (including independent contractors). Starting May 20, 2024, hiring parties (including employers who engage independent contractors) must provide freelance workers with written contracts, pay them within a specified time period, maintain records, and satisfy additional new obligations—and freelance workers will gain a private right of action for violations.

The Act replicates the 2017 NYC’s Freelance Isn’t Free Law, adding administrative oversight and support from the New York State Department of Labor and the New York State Attorney General while maintaining New York City’s local law. The Act will apply to contracts entered into on or after the May 20, 2024 effective date.

Here are some key details:

Definitions: “freelance workers” and “hiring parties” 

The Act defines a “freelance worker” as “any natural person or organization composed of no more than one natural person, whether or not incorporated or employing a trade name, that is hired or retained as an independent contractor by a hiring party to provide services in exchange for an amount equal to or greater than eight hundred dollars”—but does not include certain sales representatives, practicing attorneys, licensed medical professionals, and construction contractors. Also, a “hiring party” is any person (other than government entities) who retains a freelance worker to provide any service.

Written contracts required

The Act requires a written contract if the freelance work is worth at least $800, inclusive of multiple projects over a 120-day period. The hiring party must furnish a copy of the contract, either physically or electronically. At a minimum, the written contract must include:

  1. The name and the mailing address of both the hiring party and the freelance worker;
  2. An itemization of all services to be provided by the freelance worker, the value of the services to be provided under the contract, and the rate and method of compensation;
  3. The date on which the hiring party must pay the contracted compensation (or the mechanism by which the date will be determined); and
  4. The date by which a freelance worker must submit to the hiring party a list of services rendered under the contract to meet the hiring party’s internal processing deadlines to allow compensation to be paid by the agreed-upon date.

The New York State Department of Labor will provide model contracts on its website for freelancers and hiring parties to use.

Continue Reading More Scrutiny and Obligations for NY Businesses Engaging Independent Contractors Coming Spring 2024