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Whether you need information about a specific US visa type, or are looking for a high-level overview of employer obligations related to the movement of foreign nationals under US immigration and employment law, this handbook covers a wide range of topics and serves as a go-to, desk-side guide for US employers.

The publication is available in hard copy to North America recipients or by request through your Baker McKenzie attorney. The electronic (pdf) version is available to everyone. Click here to request your complimentary copies for yourself and your colleagues.

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The writing is on the wall: remote work is here to stay. According to data collected by Ladders, three million professional jobs in the US went permanently remote in the fourth quarter 2021 alone. By the end of 2021, 18 percent of all professional jobs in the US were remote. Ladders projects that number will be close to 25 percent by the end of 2022. Of course, this leaves employment lawyers and HR professionals wondering — what employment laws apply to our distributed workforce?

One particularly thorny issue facing employers in this context is the permissibility of post-termination non-competition agreements. Non-compete laws and their requirements differ greatly from state to state. For example, in Illinois, one of the requirements is that the employee must earn at least $75,000 annually in order to enter into an enforceable post-termination non-compete, but in Oregon, that minimum annual income threshold increases to $100,533 — and that same employee would be subject to no income threshold if Missouri law applied. On the other hand, in Colorado, where post-termination non-competes are generally unlawful, the employer could soon face misdemeanor criminal liability for seeking to enforce an unlawful post-termination non-compete against any employee, and in California, the employer could be exposed to compensatory and punitive damages if a claim is accompanied by other deemed tortious conduct (e.g., interference with the employee’s future employment prospects by seeking to enforce the unlawful agreement).

In this post, we analyze how remote work further muddles the already complicated landscape of post-termination non-competes and how employers can best navigate this complex backdrop.

What law applies? Guidance from recent case law

One issue arising out of remote work is knowing what state’s law will apply when it comes to the enforceability of non-compete restrictions. With remote work, long gone are the days where an employer can be relatively certain that the state where an employee is located at the beginning of the employment relationship will be the same state that employee is living and working in at the end of the employment relationship. As a result, when the need to enforce non-compete restrictions arises, the parties may dispute what state’s law should apply to the non-compete (e.g., the state where the employee was located when they entered into the contract, the state where the employee began work for the employer, or the state whether the employee was living or working at the end of the employment relationship).

Continue Reading Navigating The Intersection Of Remote Work And State-Specific Post-Termination Non-Compete Laws

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On March 15, 2022, the US Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) issued a new directive putting federal contractors on notice that it will more closely scrutinize their pay equity audits. Making headlines, the directive states that federal contractors are expected to hand over information about their internal pay analyses when being audited by the office, including documents that are protected by the attorney-client privilege and/or work product doctrine.

Background

Executive Order 11246 requires affirmative action and prohibits federal contractors from discriminating on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin. Contractors also are prohibited from discriminating against applicants or employees because they inquire about, discuss, or disclose their compensation or that of others.

As part of their affirmative action obligations, supply and service contractors are required to perform an in-depth analysis of their total employment practices to determine whether and where impediments to equal employment opportunity exist. This includes conducting an in-depth analysis of their compensation systems to determine whether there are gender-, race-, or ethnicity-based disparities, as provided in 41 CFR 60-2.17(b)(3).3.

To comply with the regulations, most companies doing business with the federal government  conduct an evaluation of their pay practices for potential gender, race, or ethnicity-based disparities.  Oftentimes, these analyses are performed with the help of outside counsel who provides legal advice regarding, among other things, compliance with the requirements enforced by OFCCP. And, until now, these pay audits have been considered privileged and confidential.

Impact of the new directive

During a compliance evaluation, a supply and service contractor is required to provide OFCCP with compensation data. In addition to requesting additional compensation data, interviews, and employment records, the OFCCP is now making explicit that it may also seek the contractor’s evaluation under § 60-2.17(b)(3), which the OFCCP calls the “pay equity audit.”

Continue Reading OFCCP Emboldened To Demand Contractors’ Internal Pay Analyses

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Many thanks to our data privacy colleagues for co-authoring this post: Lothar Determann, Helena Engfeldt and Jonathan Tam.

2022 is looking to be an unprecedented year for California companies’ privacy law obligations. The California Privacy Rights Act (CPRA) takes effect on January 1, 2023, with a twelve-month look-back that also applies to the personal data of employees and business contacts. The new California Privacy Protection Agency is preparing regulations that will sit on top of existing rules from the California Attorney General. 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).

On March 1, we held a webinar focused on the employment law implications stemming from these significant changes and covering a handful of critical hot topics (e.g., how to process vaccination information, the treatment of employees of PEOs, and EORs). If you missed it, here are the major highlights you should know!

Employment Takeaways

Preparing for CCPA / CPRA Compliance
  • CPRA amendments to CCPA take effect January 1, 2023; this ends the transitional exemptions for “HR” and “B2B contact information” and includes a 12-month look-back to January 1, 2022.
  • “At collection notices” have been required since January 1, 2020, with increased disclosure requirements since December 16, 2020. For more detail, click here.
  • Businesses must declare on January 1, 2023, in privacy policies whether they have been selling or sharing personal information of employees and B2B contacts in the preceding 12 months and, if yes, offer opt-out mechanisms and alternatives without discrimination.
  • Businesses must update service provider agreements, including with recruiters and IT, cloud, payroll, benefits, and other providers.
  • Businesses must offer broad access, deletion, rectification, portability and other rights to California employees and B2B contacts, and prepare for what may be the end of confidentiality in the employment area; employers should conduct training, and implement robust data governance policies (incl. deletion and discovery).
Data Access / Deletion Requests from Employees
  • Under existing employment law, California employees (not contractors) have the right to inspect and receive a copy of the personnel files and records that relate to their performance or any grievance concerning them within 30 days of their written request. The existing right to inspect does not extend to records relating to the investigation of a possible crime, letters of reference, or various ratings or reports.
  • By contrast, the new “right to know” under the CPRA/CCPA goes further. It encompasses two distinct rights: (i) the right to a disclosure explaining how the employer collects and handles the individual’s personal information; and (ii) the right to copies of “specific pieces of personal information.” The “right to know” applies to California consumers, which goes beyond employees (i.e., including contractors). In theory, it could extend the scope of the “right to know” from simply the personnel file to include, for example, informal communications about the employee, investigations, etc. Employers must generally comply with such requests within 45 days.
  • The “right to know,” however, is not absolute, and employers can refuse if the request is manifestly unfounded or excessive (e.g., if the purpose is to harass) and does not cover privileged information (e.g., communications with in-house and external counsel).
  • The CPRA/CCPA also introduce a new right to “data deletion.” This right is not absolute either. An exception should apply for most categories of personal information reasonably necessary to managing or administering current or past employment or contract work relationship.
  • Finally, the CPRA/CCPA gives California residents other rights including the right to limit the processing of sensitive information. There are exceptions to the right to limit the processing of sensitive information, but none of the statutory exceptions apply squarely to HR data.

Continue Reading A Quick Primer On New Privacy Law Obligations For California Employers

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Employee Resource Groups (ERGs), or workplace affinity groups, are not new, and in fact they have been around in workplaces since the 1970s when they evolved in response to racial tensions in the US. For years, ERGs mainly hosted networking events and weren’t typically remarkably impactful on the business, but served as a safe space and support network for members. ERGs have come a long way since then, expanding and deepening their influence and impact.

Now, ERGs are typically employee-led, voluntary forums that provide employees with support, and career development, mentorship and networking opportunities. They are often created around shared characteristics or personal traits like ERGs for women employees, members of historically underrepresented racial/ethnic groups, LGBTQ+ employees, veteran employees and more. In recent years, ERGs have expanded to include interest-based groups like working parents and caregivers, the environmentally conscious and mental health advocates. Further, business leaders increasingly recognizing the value ERGs can bring as key strategic partners. In fact, about 35% of companies have added or expanded their support for ERGs since the start of 2020, according to a 2021 study by McKinsey & Co. and LeanIn.org of 423 organizations employing 12 million people.

Why the shift?

This uptick in popularity of ERGs in the workplace is due in large part to the impact of COVID-19, which has amplified the prominence and importance of ERGs. After two years of pandemic-related isolation and a lot of social and political unrest, ERGs are playing an essential role in companies by fostering community, improving employee engagement and building company culture and brand. While it can be difficult to connect with employees feeling distanced by remote work, ERGs are an effective way to give employees a sense of belonging, shared purpose and support. For instance, during the pandemic, ERGs focused on women have shared tools for easing burdens for members suddenly facing new challenges of child-care demands while working from home. Likewise, they’ve given important feedback to help shape company policies and benefits.

Continue Reading DEI Matters: How Employee Resource Groups Can be Your Company’s Strategic Ally

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On March 3, President Biden signed the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act,” H.R. 4445, into law. The landmark legislation allows a plaintiff to elect not to arbitrate covered disputes of sexual assault or sexual harassment. To understand the implications of the new law, click here.

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With special thanks to our data privacy colleague Helena Engfeldt for her contributions.

 On February 17, 2022, California Senator Bob Wieckowski introduced a bill (SB 1189) that would add protections for biometric information and establish a private right of action permitting individuals to allege a violation of the law and bring a civil action. The legislation is similar to the Biometric Information Privacy Act in Illinois (BIPA) which is creating expensive headaches for Illinois employers. (Read about the latest BIPA developments here.) If enacted, the law will cover all employers that use biometric time-keeping systems in California. Many employers would have to navigate the law alongside other California privacy laws such as the California Consumer Privacy Act (CCPA).

Here’s what employers need to know about SB 1189:

Covered employers?

The bill would apply to any private entity regardless of size. “Private entity” is defined as an individual, partnership, corporation, limited liability company, association, or similar group, however organized.

How does the bill define biometric information?
  • A person’s physiological, biological, or behavioral characteristics, including information pertaining to an individual’s deoxyribonucleic acid (DNA), that can be used or is intended to be used, singly or in combination with each other or with other identifying data, to establish individual identity;
  • It includes, but is not limited to, imagery of the iris, retina, fingerprint, face, hand, palm, vein patterns, and voice recordings, from which an identifier template, such as a faceprint, a minutiae template, or a voiceprint, can be extracted, and keystroke patterns or rhythms, gait patterns or rhythms, and sleep, health, or exercise data that contain identifying information.

Continue Reading Biometric Protections May Be Coming to California Soon | Employers Should Get Ahead Now

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As the COVID-19 Omicron wave recedes and the desire to get back to a pre-pandemic “normal” is stronger than ever, scores of states have either lifted mask mandates or have set a date for lifting them. But what should employers take into account before allowing employees to toss masks aside?

In this Quick Chat video, Baker McKenzie’s Labor and Employment lawyers discuss key considerations for employers before dropping mask mandates in the workplace.

Click here to watch the video.

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Baker McKenzie’s Mind the Gap report outlines the main barriers to I&D success and key actions that companies can take to further develop their I&D programs. In this episode of TMT Talk, Kate Alexander, Julia Wilson, and Paul Evans focus on the insights from a survey of 900 employment and I&D leaders, looking at the most relevant issues to the TMT sector. Our lawyers highlight the key I&D challenges that the tech industry is facing and give their perspectives on the priorities that these companies need to keep in mind as they build strategies and strengthen their I&D initiatives.

Please click here for the podcast.