Canada saw significant developments in labour and employment law in 2019.  As we embark on a new decade, we will undoubtedly see the landscape in this ever-changing area of law continue to evolve.   Here is our Littler LLP overview of 15 key developments in 2019 with links to more detailed articles and commentary:

Financial services firms regulated in the UK by both the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have long caused confusion, particularly in international financial services groups, with their complex regulatory pay structures and infamous bonus cap.

In a reassuring decision for employers, the UK High Court has confirmed that an employer’s use of a contractual provision to claw back an employee’s bonus was lawful. The ruling in Steel v Spencer Road LLP provides helpful guidance on the circumstances in which a bonus clawback will not constitute a restraint of trade, though employers should be mindful that not all such provisions will be enforceable.

Laura Jousselin, Raoul Parekh and Stephan Swinkels discuss how European employers are responding to workplace changes, including AI and remote workplace demands from employees.

International Employment Lawyer

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The current administration and multiple members of Congress seek to grant protections to H-2B non-agricultural temporary workers who are employed in the United States to fill temporary labor shortages in the U.S. market. Multiple bills have been introduced in both the Senate and House of Representatives calling for protection against exploitation and abuse, including for employer violations of wage and hour laws and retaliation.

Johane Severin discusses the growing practice of “stay-or-pay” contracts, which some argue force workers to pay if they resign ahead of a stipulated date.

International Employment Lawyer

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Alexander MacDonald weighs in on the effects of U.S. DOL regulations that seek to expand organizing protections for farmworkers on temporary visas.

Bloomberg Law

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Alexander Thomas MacDonald provides insight into the new regulations under theH-2A visa program. 

The Federalist Society

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The Department of Homeland Security (DHS) has recently announced a streamlined process for foreign workers to request deferred action. Deferred action is a type of prosecutorial discretion to defer removal action (deportation) for a noncitizen for a certain time period.  The new process will apply where these workers are participating in or otherwise involved an investigation or enforcement action by a federal, state, or local labor and employment agency.    

USCIS has officially announced the dates for the fiscal year (FY) 2025 H-1B cap lottery, which will open on Wednesday, March 6, 2024 at noon ET and end on Friday, March 22, 2024, at noon ET. This annual lottery is meant to select new H-1B candidates, who will be eligible to file an H-1B petition and, if approved, begin H-1B employment on October 1, 2024 (the first day of FY 2025).

The Home Office has updated its guide on right to work (work authorization) checks for employers in the UK.

Changes coming into effect this month include a less flexible approach to late applications to the EU Settlement Scheme (EUSS) for Europeans and their families and a hike in penalties for illegal working.

Right to work changes for EEA citizens

In the Chancellor of the Exchequer’s Autumn Statement, Jeremy Hunt promised that “the government will expand the business Visitor rules to allow businesspeople to engage in a wider range of permitted activities and paid engagements, to take effect from January 2024. The government will also explore further reforms to the business visitor rules during 2024.”

The first of these changes took effect from January 31, 2024. They were not a major reform of the business and other permitted activities that can be carried out on a visit visa, but there are some important changes.

UPDATE: Since publication, we made a clarifying edit concerning the reasons an employee will be able to use paid sick leave under the amended law.

The Washington state legislature and certain localities recently passed several bills affecting employers, some of which have already been signed into law. These measures address non-compete agreements, mandatory employer-sponsored meetings, immigration reporting, paid leave, and the minimum wage. Each new bill or ordinance is discussed below. 

New Law Expands and Clarifies Non-Compete Statute

Introducing the latest UK Immigration Rules Statement of Changes, Legal Immigration Minister Tom Pursglove announced that they will “deliver the biggest ever cut to migration over the course of this year.”

The Statement of Changes HC590 will have serious consequences for employers from April 4, 2024, as well as for British citizens and settled residents bringing partners to live with them in the UK from April 11.

Stephan Swinkels and Michael Lotito discuss the intersection of employment and geopolitics and offer key considerations for the C-suite of global companies. 

Chief Executive

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The Department of Homeland Security (DHS) announced that the agency will establish a new process to consider, on a case-by-case basis, requests from eligible noncitizen spouses of U.S. citizens for parole-in-place status.  Parole-in-place allows noncitizens who entered the United States without the authorization of an immigration officer to remain in the United States for a certain period.  If paroled, eligible noncitizen spouses will be able to apply for permanent residence without having to leave the United States to be processed for an Immigrant Visa at a U.S.

On June 20, 2024, USCIS extended the validity of certain work permits issued to Temporary Protected Status (TPS) beneficiaries under the TPS designations for El Salvador, Honduras, Nepal, Nicaragua, and Sudan. All impacted beneficiaries will receive Form I-797, Notice of Action, notifying them of the extension of their Employment Authorization Documents (EADs or “work permits”) through March 9, 2025.

As of July 1, 2024, the Foreign Labor Certification (FLC) Data Center website (FLCDataCenter.com) will be discontinued and will not be available for providing prevailing wage data for occupations. Prevailing wage information is required for permanent and temporary foreign labor certification processes as well as for various non-immigrant temporary work visas such as H-1B, H-1B1 and E-3.

To tackle illegal employment through subcontracting more effectively, the Flemish government improved chain liability, and introduced a duty of care. According to this duty of care, companies working with subcontractors in the Flemish Region are obliged to request certain data from these subcontractors (Cf. Decree of 27/10/2023).  

The Flemish Government's Implementing Decree was published in the Belgian Official Gazette on June 4, 2024, containing a checklist of the specific data to be requested. The decision will enter into force on January 1, 2025. 

On August 9, 2024, Illinois Governor JB Pritzker signed Senate Bill 0508 (“SB0508”) into law. This new law provides additional employment protections for individuals flagged by an employment eligibility verification system, including federal E-Verify, as having identification discrepancies. The new rights and protections created by SB0508 will take effect on January 1, 2025. This evaluation does not address whether the state law directly restricts or curtails the use of E Verify.

Under the previous UK Home Secretary, James Cleverly, minimum salary thresholds for Skilled Worker visas were raised significantly and the 20% discount for shortage occupations were eliminated.

Both the Conservative and Labour manifestos vowed to lower immigration each year, leaving employers wondering what changes are on the horizon.

Review of IT and engineering roles

The rules on the employment of third-country nationals (which apply regionally) were recently amended in the Brussels Capital Region by an ordinance issued on February 1, 2024, and its implementing decree on May 16, 2024. The following is a summary of these new rules.

Michael Lotito said labor policy changes could be delayed in a second Trump administration depending on the shifting makeup at the NLRB.

Law360 Employment Authority

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Alexander Thomas MacDonald explains how, through a century of trial and error, labor law has been wildly successful in giving us the most peaceful labor market in history. 

The Federalist Society

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Alex MacDonald discusses how a new study reveals how some union practices prioritize maintaining their political influence over delivering benefits.

U.S. Chamber of Commerce

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Shannon Meade and Michael Lotito discuss key issues that employers are facing now, according to Littler’s Workplace Policy Institute’s 2024 Labor Day Report.

Human Resource Executive

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Michael Lotito says captive audience meeting bans passed by more than half a dozen states are “intrusive” and “against fundamental First Amendment principles.”

Bloomberg Law

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Alexander T. MacDonald says predistributional labor policies do none of the things they’re supposed to do and, in fact, amplify the problems they’re supposed to solve.

The Federalist Society

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Joy Rosenquist talks about some of the 30 new California laws she thinks are particularly significant for employers, including rules addressing pay transparency and off-duty cannabis use.

Law360 Employment Authority

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Welcome back to our World Cup series, where we compare various aspects of labor and employment law in some of the participating countries.¹  We kicked off Parts One and Two of this series with vacation and sick leave entitlements.

Jeff Nowak and Rich Falcone talk through a hypothetical HR dilemma involving a workplace complaint.

SHRM Online

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Jesús Lahera offers a detailed analysis of Spain’s Whistleblowing Directive and its impact on employers and employees.

Observatorio de RRHH

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A recent District of Columbia federal court ruling reminds employers that a severance agreement containing a release of claims under the False Claims Act does not guarantee dismissal of a suit on those grounds.

Background on the FCA

Protection of whistleblowers has been on the EU’s agenda for quite some time. Four years ago the EU issued the EU Whistleblowing Directive throughout its Member States.

Zoe Argento talks about the two main types of valuable and sensitive information that employees typically steal and offers ways employers can prevent workplace theft.

SHRM Online

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Dear Littler,

UPDATE: This law took effect on February 8, 2024.

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Dear Littler,

Denise Visconti and Trish Martin discuss the steps company boards and senior management can take to support their organization’s pay equity efforts. 

Directors & Boards

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D. Porpoise Evans examines a new DOJ whistleblower program that will complement last year’s focus on corporate voluntary disclosure programs and offers whistleblower awards to motivate employees to report misconduct.

HR Daily Advisor

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2024 has been a fruitful year in the UK for whistleblowing law so far, with three key cases employers should be aware of:

Can an external job applicant qualify as a whistleblower?

One of the very first questions to ask when presented with a whistleblowing claim in the UK is whether the person who made the disclosure was entitled to protection. The Employment Rights Act 1996 protects employees from dismissal, and protects employees and workers from detriment, for having made protected disclosures. But does it cover job applicants?