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.
Contacts
![Keith A. Markel's headshot](/siteFiles/Professionals/029FD840-D9DD-0023-FE594374F671D7E4.jpg)
- Keith A. Markel Partner & Co-Chair, Labor & Employment; Co-Chair, Luxury Brands
- kmarkel@morrisoncohen.com
![Vani Upadhyaya's headshot](/siteFiles/Professionals/6D6CDBB0-F632-8366-E78B9D2A0864BFC5.jpg)
- Vani Upadhyaya Associate
- vupadhyaya@morrisoncohen.com
![Kayla West's headshot](/siteFiles/Professionals/FC8C204A-BFA5-DE26-1A437F7E8222BF83.jpg)
- Kayla West Associate
- kwest@morrisoncohen.com
![Jason P. Gottlieb's headshot](/siteFiles/Professionals/6BD23399-D87A-359C-A5B0DB06BF1E8879.jpg)
- Jason P. Gottlieb Partner & Chair, Digital Assets; Chair, White Collar and Regulatory Enforcement
- jgottlieb@morrisoncohen.com
Related Practices
Our Digital Assets Group represents some of the largest and most significant names in the sector, drawing upon our depth of experience and comprehensive understanding of cryptocurrency, DeFi, DAOs and NFTs.
Our Labor & Employment Law lawyers counsel businesses of all sizes and levels of complexity in connection with their day-to-day employment concerns, focusing not only on the many federal, state and local laws and regulations that govern the workplace, but on each employer’s business and operational objectives. Our complete approach includes preventative measures, training, and representation in formal proceedings before federal and state courts and administrative agencies.
Our Securities & Capital Markets Practice offers clients sophisticated securities law capabilities, wide and varied transactional exposure, market familiarity, a commercially sensitive approach to practice and the ability to execute under demanding schedules and circumstances.
Related Sectors
Our Digital Assets Group represents some of the largest and most significant names in the sector, drawing upon our depth of experience and comprehensive understanding of cryptocurrency, DeFi, DAOs and NFTs.