In a recent conversation with our colleagues across the Americas—in Argentina, Brazil, Canada, Colombia, Mexico and the United States—we examined the latest developments affecting multinational employers in the region. Please click here to tune in to the recording at your convenience. Read on for a preview of some of the key changes our team discussed.
Several common themes are playing out across these countries in the Americas. Like the rest of the world, the Americas are significantly impacted by escalating trade tensions, inflation, and deep political polarization, creating a tricky operating environment for multinational companies and underscoring the need to maximize business agility. While many businesses appreciate the flexibility of contracting and third-party arrangements, employment misclassification remains a costly risk, particularly in countries like Brazil, Colombia, Mexico, and the US.
Inclusion, diversity, and equity remain in the spotlight and continue to be important areas for strategic workforce planning as well as a focus for litigation risk assessments. We are also seeing a greater focus on gender equality in countries like Brazil, Canada, and Mexico, as well as an increase in statutory employment protections (e.g., leave entitlements, new health and safety obligations, etc.).
At a high level, here are a few of the specific changes — discussed in further detail in the recording —unfolding in particular countries:
- Under President Javier Milei’s government in Argentina, a key objective for 2025 is to implement labor reforms aimed at reducing labor costs and promoting a more flexible and dynamic labor market.
- Brazil’s most recent material employment law changes concern equal pay and workplace health and safety.
- Canada‘s employment law landscape has evolved with greater judicial scrutiny of termination clauses (particularly in Ontario), a marked increase in wrongful dismissal litigation, and growing obligations with respect to pay equity (e.g., in Ontario and British Columbia).
- In Colombia, recent labor law reforms have aimed at strengthening workers’ rights and improving job security. The most significant developments include new sexual harassment prevention regulations, special protections related to paternity leave, and new regulations on occupational medical evaluations.
- Mexico has undertaken significant labor reforms to enhance worker protections and promote fair labor practices. Recent changes are aimed at improving working conditions with respect to digital platform work, providing new protections related to gender equality, and reducing overtime as a form of labor exploitation.
- In the US, employment law changes continue to be driven primarily by state legislators, and we are seeing an increase in employee protections with respect to paid leave, discrimination protections, minimum wages, and restrictions on noncompete agreements. In recent years, and as underscored by President Trump’s January 2025 DEI Executive Orders, we’ve seen growing political and social resistance to workplace DEI programs, particularly from conservative action groups and political figures. As a result of increasing scrutiny, many US-based companies are conducting DEI health checks under legal privilege to assess legal risk and shore up any areas of potential vulnerability.
Tune in to learn more, and as always, reach out to your Baker McKenzie employment lawyer with any questions.
*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.