Keith Markel, Kayla West and Vani Upadhyaya Publish Article in Reuters on Employment Law Within the Digital Assets Industry

Keith A. Markel, Kayla West and Vani Upadhyaya, with input from Jason Gottlieb, published another article for Reuters exploring the relationship between employment law and the digital assets industry. In “Employment and Securities Law Issues for Global Cryptocurrency Companies,” the authors provide essential guidance to help cryptocurrency companies comply with both U.S. and foreign employment and securities laws.

U.S. Wage and Hour Laws – Since cryptocurrency employees are predominantly working remotely on different times zones and schedules, the authors recommend that employers implement accurate timekeeping systems, as well as clear policies concerning what is deemed to be authorized (and unauthorized) work time. In both the U.S. and abroad, laws related to minimum wage, overtime, meal and rest periods, wage notices and paid time off vary depending on the jurisdiction. Employers must abide by the wage and hour laws applicable to the locations in which employees are performing work on behalf of the business.

Other Employment Law Issues – Laws related to employment discrimination, harassment and retaliation, worker safety, workers' compensation, unemployment insurance and employee privacy matters also often impose varying obligations for employers with remote workers in different U.S. and foreign jurisdictions.

Independent Contractor Classification – Before classifying an employer as an independent contractor, cryptocurrency employers should carefully consider the type of work performed (coding, marketing, etc.); whether the work is integral to the company's business; and the nature and control of the company over the worker, etc., in order to avoid potential misclassification penalties.

Securities Laws – Cryptocurrency companies considering paying their employees in cryptocurrency tokens should note that, generally, if the cryptocurrency transaction occurs between two non-U.S. parties, U.S. securities laws are not likely to apply to that transaction. However, if either the company or its employees are based in the U.S., U.S. securities laws may apply if that cryptocurrency token is deemed to be a security.

Non-Competes – Cryptocurrency employers should tailor any non-competition agreements to the laws in the applicable jurisdictions for which they seek to enforce such restrictions, including any foreign jurisdictions, which may prohibit such type of “anti-competitive” activity.

Read the full article here.