New Delhi: After lifestyle and food influencers, a new type of content creator is making headlines. The employee influencers. But apart from their content, the trend also raises new legal risks for companies across several sectors.
According to a Bloomberg report, companies across several sectors are tapping workers with strong social media followings to promote products. It reflects a larger workplace cultural shift that creates potential for legal liability.
But the question remains: What is an employee influencer?
An employee influencer is a staff member who uses their personal social media presence to share real work experiences, promote company culture and shape how internal and external audiences view a brand.
The report added that in the United States, Starbucks announced a partnership with TikTok to boost employee-driven storytelling, and Gap Inc. expanded its creative affiliate and social media programs to include employees. But this paradigm shift is creating a legal minefield.
Uncertainty over salaries
The Bloomberg report found that it’s not always obvious how companies are paying employee-creators beyond regular salaries.
However, the collaboration between Starbucks and TikTok states that the partnership will give employees content opportunities as well as ad revenue sharing.
Meanwhile, Walmart restricts the employment relationship with creator program participants.
The report added that many companies with creator programs bypass traditional cash compensation and instead offer perks like free trips.
“…or products to avoid muddying the initial terms of employment and baseline job description,” said Lia Haberman, a creator economy consultant.
According to the report, the federal Fair Labor Standards Act (FLSA) requires monetary compensation for work employers knew about or have reason to believe is being performed.
“Violations of the FLSA’s overtime rule for work performed over 40 hours in a workweek could result in substantial civil penalties, back wages, liquidated damages, and legal costs for employers,” the report read.
Further legal risks can be greater in certain states like California, which mandates pay for work employers know or should know.
Another legal issue is who owns the content and what happens post-employment, even though US copyright law gives employers automatic ownership of work created within the scope of employment.
But ownership becomes complicated when employees create content on their personal accounts and grow their audience.
(Edited by Insha Jalil Waziri)