Overview of U.S. Employment Law for International Employers

This guide is a non-comprehensive overview of employment laws in the United States for international employers.  We hope that it will assist employers that already employ individuals in the U.S. and employers that are considering becoming operational in the U.S. in better understanding U.S. employment laws and practices.

Generally speaking, what differentiates U.S. employment law from that of other countries is that the U.S. has very few legally required benefits that an employer must offer its employees.  Although it can differ state by state, things that are legally required and commonplace in other countries—such as paid holiday, paid leave, and mandatory severance benefits—are generally not legally required in the United States.  Instead, most benefits offered by employers are considered gratuitous and used as tools to recruit and retain employees.  This has led employers to be creative in their benefit offerings, including the use of “unlimited” vacation policies, fully remote work, egg freezing or fertility stipends, and the like.

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Considerations for Israeli Employers During Israel-Hamas War

As a result of the recent terrorist attacks in Israel and the resulting Israel-Hamas war, Israelis continue to be called upon for active duty under Israel’s emergency call-up notice. Global employers with operations and/or employees in Israel should become familiar with the emergency orders in place and the applicable employment developments to best support their employees and comply with local obligations.

Israel’s Compulsory Military Service

Israel’s military operates under a system of reserve forces known as the Israel Defense Forces (IDF). Military service is compulsory for Jewish Israeli citizens over the age of 18, requiring men to serve for a minimum of 32 months and women to serve for a minimum of 24 months. After completing compulsory service, citizens are transitioned into the IDF reserves, subject to recall for active duty in times of need. Because Israel is currently under a state of emergency, an emergency call-up notice (Order 8) has been issued for the immediate enlistment of most IDF reservists to report for active duty for an indefinite timeframe.

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Puerto Rico Amends Domestic Abuse Prevention and Intervention Act

On July 28, 2023, the Governor of Puerto Rico signed Law No. 74 of 2023 (“Law 74”) into law. Law 74 amends Puerto Rico’s Act for the Prevention and Intervention with Domestic Violence, adding additional protections for victims of domestic violence.

The amendment includes “economic violence” as a modality for domestic abuse. “Economic violence” is defined as:

“[C]onduct directed at impairing the present or future financial capacity, economic stability, or lodging and housing security through threats, coercion, fraud, restriction, or preventing access to or use of accounts, assets, financial information, identification or credit cards, money, or government assistance; concealment of information related to the payment of rent or mortgages,  or forced evictions; exercising undue influence on a person’s decisions or behavior or financial and economic decisions of a person, or interference in a person’s employment relationship or performance or in his or her own business. It also includes misusing the person’s financial resources, including money, assets and credit for personal gain, and preventing access to formal courses of study and impairing the victim’s academic performance.”

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India Passes New Data Protection Legislation

After several years of debate, India has passed the Digital Personal Data Protection Act of 2023 (DPDPA), an overhaul of the country’s data protection regime that will require employers operating in India to take stock of current data protection policies and ensure alignment with the new law.

Like the European Union’s General Data Protection Regulation (GDPR), the DPDPA is a comprehensive framework that will require data processers to identify a lawful purpose for processing personal data, with limited exceptions such as in cases where the data is publicly available or the processing is necessary as part of a merger or a restructuring.  Similar to the GDPR, it applies to all data processing in India or that is related to the provision of goods and services to individuals in India.

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UK Employment Law Update: Family Acts, UK Government Legislative Proposals and Recent Case Developments

In May, the UK government passed three family-related Acts that employers should be aware of: the Neonatal Care Act; the Protection from Redundancy Act; and the Carer’s Leave Act. UK courts have also made notable rulings on noncompete restrictions, and COVID-19-related health and safety detriment claims.

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Reforms to Puerto Rico’s Labor Law Declared Null and Void Ab Initio

On March 3, 2023, U.S. District Court Judge Laura Taylor Swain, presiding over Puerto Rico’s bankruptcy, issued an opinion declaring Act 41-2022 (Act No. 41) null and void ab initio.

Law 41-2022 Amendments

Act No. 41, which took effect in June 2022, amended several employment regulations that had been established by the 2017 Labor Transformation and Flexibility Act (LTFA). As previously reported, Act No. 41 sought to broaden several labor rights applicable to employees in the private sector. Specifically, the Act provided the following employment benefits:

  • Limited the probationary period to a maximum of three months;
  • Increased accrual of vacation and sick leave;
  • Extended the statute of limitations for workers to claim benefits derived from an employment contract to three years;
  • Required bonuses for eligible employees;
  • Mandated severance pay, calculated based on years of service, for employees dismissed without just cause from positions for an indefinite term;
  • Provided for ambiguous provisions to be interpreted in favor of the employee;
  • Directed employers to provide meal periods based on number of hours worked; and
  • Established that certain employees were entitled to one day of rest for every six days worked.

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