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In this regional report, we take a periodic look at recent changes in labour law in selected countries within the Americas.
This quarter’s developments reflect continued legislative, regulatory and judicial activity across the Americas. Key themes include labour market participation and working time reform, increased scrutiny of employment status and outsourcing models and significant federal and state-level developments in the United States.
Several jurisdictions are pursuing reforms that could have an important impact on workforce planning and labour costs.
In Argentina, the Government has published a new decree that regulates the Labour Formalisation Incentive Regime, an optional programme designed to promote the hiring of workers who have been out of employment for at least six months or meet other qualifying criteria. Eligible employers may benefit from reduced employer social security contributions for up to 48 months. In Brazil, proposals to reduce the maximum working week from 44 to 40 hours, with no reduction in salary, continue to progress through both constitutional and legislative reform. In Mexico, implementation of the constitutional reform reducing weekly working hours from 48 to 40 continues, with complementary amendments to the Federal Labour Law introducing revised overtime rules, together with other key new requirements.
Elsewhere, Chile has introduced a new framework governing employment relationships with employees aged 60 and over, including provisions on working time, annual leave and the suspension of employment contracts.
We also see developments relating to employment status and classification.
In Canada, new federal employee misclassification rules have received Royal Assent, supported by amendments enabling information sharing between government authorities for enforcement purposes. Meanwhile, Colombia has introduced a new decree on illegal outsourcing and labour intermediation, including new definitions, indicators for assessing outsourcing arrangements and a rebuttable presumption of an employment relationship where permanent activities are performed through third parties.
There have been several significant federal and state-level developments in the United States, with implications for employers across a range of workplace issues.
Important federal developments include the recent Supreme Court’s decision which overturned the landmark case of Humphrey’s Executor, with implications for numerous agencies, and the Equal Employment Opportunity Commission’s new National Enforcement Plan, which states that the agency will eliminate the use of disparate-impact liability theories in Title VII investigations ‘to the maximum degree possible’. At state level, developments include new pay transparency requirements, paid family and medical leave programmes, restrictions on non-compete agreements and minimum wage increases across a number of states.
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