The Employer Report

NAVIGATING US AND GLOBAL EMPLOYMENT LAW

Many viewed the highly anticipated coming into force of the European Union’s General Data Protection Regulation (GDPR) on May 25, 2018 as the “finish line” for the marathon efforts towards privacy compliance that took place in the months running up to this date. In reality, however, this date should be treated instead as a “starting line” from which to launch mandatory organizational protections for the personal data of individuals in the EU and elsewhere going…
The UK Cabinet and EU leaders have now approved a draft withdrawal agreement setting out the terms of UK withdrawal from the EU. With the agreement still to be approved by the European and UK parliaments, our London Employment & Compensation team recently released a report analyzing the potential people implications of a “deal” verse “no deal” scenario. Click here to access. For more Brexit-related news, please visit our Brexit blog or our central Brexit
As we previously discussed here, the United States Supreme Court’s May 2018 decision in Epic Systems v. Lewis was a clear win for employers that seek to avoid the expense and disruption of class litigation by resolving disputes individually through binding arbitration. As explained by the Supreme Court in AT&T Mobility LLC v. Concepcion, “[i]n bilateral arbitration, parties forego the procedural rigor and appellate review of the courts in order to realize the benefits…
For many companies, their compensation plan year coincides with the calendar year. So, as we approach the end of 2018, it’s a holly, jolly time to review, revise and plan for implementation of commission and bonus compensation plans for 2019. (And, for those companies on non-calendar year comp cycles, it’s a good time to start on that New Year’s resolution and get ahead.) We are decking the halls with requests for commission and bonus compensation…
The Department of Labor’s newly issued opinion letter provides good news for employers who use tipped workers. On November 8th, the DOL reversed its previous “80/20” guidance on use of the tip credit. The tip credit permits employers to pay employees in tip-based positions, such as bartenders and waiters, a lower hourly wage than the federally mandated minimum wage (with the thought that earned tips will make up the difference). Under the previous “80/20” rule,…
In the wake of the #HeForShe movement, California recently became the first US state to require companies to put female directors on their corporate boards. Supporters of the law make a convincing business case for gender diversity, citing rigorous research findings showing companies where women are represented at board or top-management levels are also the companies that perform best financially. Beyond the business case however, there is also a sense that increased representation is critical…
California courts mostly take a no prisoners approach to Business and Professions Code section 16600, the statute prohibiting illegal restraints on trade. Courts broadly interpret Section 16600, which states that “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void,” to invalidate most post-employment non-competes and customer non-solicits, including covenants preventing former employees or their new employers from “hiring” employees of a…
2018 has been a year of box office hits for California employers, but the critics remain skeptical. On December 13th, join Baker McKenzie at the Westin SFO in Millbrae from 9 AM to 12 PM for our annual employment law update as we review the employment winners in 2018 and share our predictions for the year ahead. With our director and producers keeping us on track, our cast and crew will cover topics including: National…
In a welcome decision for franchisors, and first of its kind in the Second Circuit, the Southern District of New York ruled that Domino’s Pizza Franchising LLC, the franchisor (Domino’s), did not exert enough control over its franchisee to warrant joint employer status. This determination means Domino’s will not have to face claims brought under the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL) by current and former employees of a…
As employment lawyers based in California are well aware that post-employment non-compete agreements are generally void as a matter of law in this state. Further, there is precedent for awarding punitive damages and disgorgement of profits where employers have knowingly required employees to enter into invalid agreements. Also, the DOL has actively pursued California-based companies engaging in anti-competitive practices when it comes to talent. Against that backdrop, however, employers need not “throw in the towel”…