We are pleased to share with you The Global Employer – Global Immigration & Mobility Quarterly Update, a collection of immigration and mobility alerts from around the world.
Please click here to view.
Creating IP in New York? Watch out! Your employee may soon own more than you think
Special thanks to co-authors Cynthia Cole, Heiko Burow, Inez Asante and Alysha Preston.
In June, New York Senate Bill S5640 unanimously passed both houses of the NY legislature. It seeks to enact restrictions on invention assignment agreements used in the employment. S5640 now moves to the desk of Governor Kathy Hochul and if signed into law, it will amend the New York Labor Law effective immediately.
Continue Reading Creating IP in New York? Watch out! Your employee may soon own more than you think
The European Council Takes on Misclassification of Platform Workers
With thanks to Mirjam de Blécourt and Danielle Pinedo for this update.
On June 12, after lengthy negotiations, the EU Council agreed on the proposal for a directive that aims to better protect platform workers. This opens the door to negotiations between the Council and the European Parliament on the final directive.
The directive aims to ensure that platform workers have or can obtain the appropriate employment status through the introduction of a legal presumption. In addition, the directive provides for rules regarding the transparency of the use of algorithms within the platform economy.
Continue Reading The European Council Takes on Misclassification of Platform Workers
Geopolitical Changes Impacting Immigration Law in EMEA | What Employers Need to Know Now (Video Chat)
With special thanks to co-presenters Pamela Mafuz and Tony Haque.
In our latest Global Immigration and Mobility Video chat, our on-the-ground immigration and mobility attorneys explore the impact of geopolitical changes to immigration and mobility of employees in the EMEA region.
Click here to watch the video.
You’re Invited! 2023 Virtual Global Equity Academy
Baker McKenzie’s annual Global Equity Academy is designed to provide stock administration, HR, legal, employment and tax professionals with a comprehensive training on the basics of global employee share plan offerings.
Our virtual series spans four 60-minute webinars, each followed by an optional 30-minute “study hall” for participants to ask additional questions of our presenters and discuss learnings with their peers.
- Attendees who attend all four webinars will receive a certificate of completion certifying their proficiency with respect to global equity issues.
- All attendees will be provided with course materials which include invaluable Baker McKenzie precedents.
Click the individual buttons below to register for the sessions you would like to attend.
Session 1: Introduction to Global Share Plans: International Plan and Grant /
Offer Materials
Thursday, July 13, 2023
9:00 – 10:30 am PT
11:00 am – 12:30 pm CT
12:00 – 1:30 pm ET
Click here to register.
Session 2: Maintaining Global Employee Share Plans / Regulatory Considerations
Tuesday, July 18, 2023
9:00 – 10:30 am PT
11:00 am – 12:30 pm CT
12:00 – 1:30 pm ET
Click here to register.
Session 3: Offering Global Employee Stock Purchase Plans
Tuesday, July 25, 2023
9:00 – 10:30 am PT
11:00 am – 12:30 pm CT
12:00 – 1:30 pm ET
Click here to register.
Session 4: Equity and the Mobile Workforce
Tuesday, August 1, 2023
9:00 – 10:30 am PT
11:00 am – 12:30 pm CT
12:00 – 1:30 pm ET
Click here to register.
CLE, CPE and CEP accreditation pending.
Mandatory E-Verify in Florida and the End of I-9 Flexibility for Remote Workers: Major Changes to Immigration Compliance Landscape on the Horizon
The month of July will bring forth two notable changes to immigration compliance requirements: (i) Florida will require that all private employers with at least 25 employees use E-Verify as of July 1; and (ii) the United States Citizenship and Immigration Services (“USCIS”) will end temporary flexibilities on July 31 that permitted certain employers to complete the Form I-9 remotely without inspection of the original documents. Employers–throughout the United States–must be aware of how mandatory E-Verify will or could impact their company and how the end of remote I-9 completion will impact its remote workforce.
Mandatory E-Verify in Florida
Governor Ron DeSantis signed SB 1718 into law on May 10, with an effective date of July 1, 2023. The law expands mandatory use of E-Verify to all private employers with 25 or more employees. SB 1718 expands existing State law which requires the use of E-Verify by public employers, private employers which contract with public employers, and private employers which receive state incentives. The new law aligns Florida with other states with mandatory E-Verify requirements, including Utah, Arizona, Tennessee, Mississippi, Alabama, South Carolina, and North Carolina.
What is E-Verify?
E-Verify is an internet-based system that compares information entered by an employer from an employee’s Form I-9, Employment Eligibility Verification, against records available to the US Department of Homeland Security and the Social Security Administration to confirm employment eligibility. The program is additive to and does not replace the I-9 requirement. E-Verify is a meaningful tool that helps employers verify the work authorization of their workforce; it can also serve as evidence of good faith during government investigations relating to I-9 practices. However, employers must meet compliance requirements when using E-Verify, and noncompliance can result in fines and other civil penalties.
Requirements for private employers
The Florida law will require that all private employers with 25 or more employees register for E-Verify and utilize it for new employees hired on or after July 1, 2023. Each employer subject to the new law will be required to retain copies of the E-Verify documentation for at least three years, and will be required to verify compliance on its first return when making contributions to or reimbursing the state’s unemployment compensation or reemployment assistance program. Notably, employers who use E-Verify–whether required or not–will create a rebuttable presumption that they have not knowingly employed an unauthorized worker.
Continue Reading Mandatory E-Verify in Florida and the End of I-9 Flexibility for Remote Workers: Major Changes to Immigration Compliance Landscape on the Horizon
Enforcement of New York City’s Artificial Intelligence Rule Begins July 5, 2023: Here’s What Employers Need to Know
Just after the fireworks’ finale, New York City’s Department of Consumer and Worker Protection will begin enforcing its new ordinance regulating the use of automation and artificial intelligence in employment decisions. The DCWP recently issued a Notice of Adoption of Final Rule establishing that enforcement efforts will begin July 5, 2023.
Here are three reasons this matters
- The new law requires time-sensitive, significant actions (read: audits, notices and public reporting) from employers using automated employment decisions tools to avoid civil penalties;
- Company compliance will require a cross-functional response immediately, so it’s time to get your ducks in a row; and
- Since the City’s law is (mostly) first-of-its-kind, it is likely a harbinger of things to come for employers across the country and it could be used as a framework in other cities and states.
The law in a nutshell
Local Law 144 prohibits employers and employment agencies from using an automated employment decision tool unless the tool has been subject to a bias audit within one year of the use of the tool, information about the bias audit is publicly available, and certain notices have been provided to employees or job candidates. Violations of the provisions of the law are subject to a civil penalty.
Continue Reading Enforcement of New York City’s Artificial Intelligence Rule Begins July 5, 2023: Here’s What Employers Need to Know
Reevaluating Restrictive Covenants in Equity Award Agreements
With special thanks to author Aimee Rosien.
Given recent developments and trends in the United States relating to restricted covenants (especially non-competes), companies should take another look at any restrictive covenants included in equity award agreements.
In the past, companies rarely tailored restrictive covenants in equity award agreements to each jurisdiction (US states or countries outside the United States). Now, with so many new restrictions in the United States, it is more typical for companies to tailor the restrictive covenants for compliance with applicable US state law.
However, outside the United States, enforcing restrictive covenants in an award agreement is even more problematic, especially non-compete and non-solicitation covenants. To learn more about the possible approaches companies can take to deal with restrictive covenants for employees outside the United States, read our recent NASPP guest blog post.
EEOC’s New Guidance Focuses on Adverse Impact in AI Used in Employment Selection Procedures
The Equal Opportunity Employment Commission (EEOC) has released new guidance for employers on the use of artificial intelligence (AI) in employment, this time with a focus on adverse impact under Title VII. On May 18, 2023, the EEOC released “Select Issues: Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in Employment Selection Procedures Under Title VII of the Civil Rights Act of 1964” (the “guidance”), expanding its Artificial Intelligence and Algorithmic Fairness Initiative and adding to its May 2022 guidance on disability discrimination in connection with the use of AI tools in employment.
The new (limited) guidance
The guidance’s scope is limited to the assessment of whether an employer’s “selection procedures”—the procedures it uses to make employment decisions such as hiring, promotion, and firing—have an adverse impact under Title VII. In the guidance, the EEOC acknowledges that while many employers routinely monitor more traditional decision-making procedures for adverse impact, employers may have questions about whether and how to monitor the newer algorithmic decision-making tools–which Q&As in the guidance address.
The guidance:
- Alerts employers to examples of software used in the employment process that may utilize the type of “algorithmic decision-making” employers may not yet routinely monitor, including resume scanners that prioritize applications using certain keywords; employee monitoring software that rates employees on the basis of their keystrokes or other factors; and “virtual assistants” or “chatbots” that ask job candidates about their qualifications and reject those who do not meet pre-defined requirements.
- Highlights issues typically involved in Title VII disparate impact cases arising from seemingly-neutral tests or selection procedures.
- Provides information (via Q&As) to help employers determine whether and how to monitor newer algorithmic decision-making tools, including the following concerns, among others:
- Whether employers can assess their use of an algorithmic decision-making tool for adverse impact in the same way that they assess more traditional selection procedures for adverse impact (the EEOC says yes, but provides only a simple example that does not address all of the potential complexities that may be at play when sophisticated artificial intelligence tools are utilized);
- Whether an employer is responsible under Title VII for its use of algorithmic decision-making tools even if the tools are designed or administered by another entity, such as a software vendor (the EEOC says in many cases, yes); and
- Whether an employer can adjust an algorithmic decision-making tool or use a different selection device if it discovers in the process of developing the tool that its use would have an adverse impact (the EEOC says yes, and suggests in some cases the employer may be required to take such steps).
Employer takeaways
- While the EEOC guidance is not binding, the EEOC encourages employers to conduct self-analyses on an ongoing basis to determine whether their employment practices have an adverse impact under Title VII.
- Employers should also consult with their employment counsel to proactively address any questions or concerns regarding the use of algorithmic decision-making tools used in employment decisions, and to ensure that these technologies are used fairly and consistently with federal equal employment opportunity laws.
- And considering the EEOC’s recent joint statement with the Department of Justice, Federal Trade Commission, and Consumer Financial Protection Bureau on enforcement efforts against discrimination and bias in automated systems, employers should keep a look out for possible forthcoming guidance from the EEOC and other federal agencies.
Toronto Partner Jennifer Bernardo Featured in Precedent Magazine
Proud to share that our colleague Jennifer Bernardo was recently spotlighted in Precedent Magazine. Jen is a stellar advocate for her clients and, in this profile, she shares how her office is an extension of her life, filled with items that help her thrive in her litigation practice.
The article is accessible here.