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Legal Update Article

Turning Workers Into Influencers? Key Employment Issues for Employers Before Starting

Takeaways

  • Employee-creator and employee-influencer programs can raise employment law concerns when employers encourage, direct, compensate, promote, or otherwise control the generated content.
  • Employers should evaluate wage-and-hour, labor and privacy (including biometric privacy and right of publicity) and other issues before launching or expanding such programs.
  • Clear program terms, compliant social media policies, manager training, objective selection criteria and timekeeping procedures are essential to reducing risk.

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Employee-generated content is becoming an increasingly attractive way for employers seeking to expand their marketing reach. Employees can sometimese serve as credible brand ambassadors, particularly on platforms where authenticity resonates more strongly with audiences than polished corporate messaging. Employees with direct experience of the company’s brand, products, workplace culture, and customers can generate content that may be uniquely credible and influential.

What starts as a branding opportunity can evolve from a marketing strategy into an employment law issue when employers encourage, direct, compensate, promote, or monetize employee-created content.

Employee-creator programs can give rise to a range of legal issues, including wage-and-hour, labor relations, privacy, intellectual property, and equal opportunity. Employers considering such programs should build an appropriate legal framework before implementation.

Wage and Hour Compliance

If non-exempt employees create content, respond to content briefs, film videos at work, and so on at the employer’s direction and for the employer’s benefit, that time may be compensable under the Fair Labor Standards Act (FLSA) and applicable state wage-and-hour laws. States such as California apply a broader “suffer or permit to work” standard that may expand what qualifies as compensable time beyond the FLSA’s requirements.

Because content creation often takes place informally, employers can easily overlook time employees spend on creator activity. An employee might record a short video before work, edit a post after hours, respond to a marketing prompt during a break, or create workplace content on a scheduled day off. If the employer requested, approved, controlled, or benefited from that activity, it should evaluate whether that time is compensable and therefore should be tracked and paid. (Relatedly, if employees use their personal devices for creator activity, employers also must consider reimbursement costs.)

For non-exempt employees, participation in content-creation programs may also affect overtime calculations. Employers should assess whether creator payments, stipends, bonuses, commissions, or revenue-sharing payments must be included in the regular rate for overtime purposes. The answer may depend on how the payments are structured and whether they are tied to measurable creator activity.

Employers should also decide who is responsible for recording time spent creating content, how off-hours work will be tracked, whether employees may create content during scheduled shifts, and whether managers may request content outside normal working hours. Without clear rules, a voluntary marketing initiative could become a wage-and-hour dispute.

Employee or Independent Contractor?

Employers should exercise caution about treating employees as independent contractors for influencer work. Applying an independent contractor classification to a W-2 employee for brand-promotion activities can increase misclassification risk.

The risk increases when the employer exercises significant control over the content-creation process (such as assigning projects, providing content briefs, requiring brand approvals, dictating the message, or repurposing the content in paid advertising). The creator’s activities may appear to be part of the employee’s regular job duties rather than a separate independent contractor situation.

Misclassification can carry legal and financial consequences, including exposure related to wages, taxes, benefits, workers’ compensation, unemployment insurance, and class or collective action. For that reason, employers are often best served by treating creator activities performed by employees as part of their employment unless a carefully analyzed basis exists for a different arrangement.

NLRA, Social Media Policy

Employee-creator programs also raise National Labor Relations Act (NLRA) considerations. All employers, whether union or non-union, can encounter legal challenges if program rules restrict employees’ rights to discuss wages, hours, or other working conditions.

Social media policies often present particular challenges in this area. Employers may want to require positive messaging, prohibit negative comments, ban discussion of internal matters, or require advance approval before employees post about the workplace. Such rules can raise NLRA concerns if employees could reasonably interpret them to restrict protected concerted activity.

Employers can protect legitimate business interests, including brand integrity, confidential information, trade secrets, customer privacy, anti-harassment compliance, and accurate advertising, but policies need to be narrowly tailored. Such policies should distinguish between company-sponsored content and employees’ protected rights to discuss terms and conditions of employment.

Good employee-creator policies should avoid language that could be construed as requiring employees to post only favorable content about the company, the workplace, or management. Instead, they should focus on clear disclosure, accuracy, confidentiality, privacy, anti-harassment, intellectual property, and the proper authorization to represent the company publicly.

Equal Opportunity

Employee-creator programs can raise equal employment opportunity concerns, particularly when participation provides valuable benefits, such as compensation, travel, visibility, career development, access to leadership, or preferential opportunities.

Employers should use objective eligibility and selection criteria, document decisions, apply standards consistently, and periodically review participation outcomes. Selection should not be based on favoritism, stereotypes, appearance, or subjective views about who is “marketable” or “on brand.”

Employers also should ensure that employees are not excluded from creator opportunities for unlawful reasons because they complained, requested accommodation, taken leave, engaged in protected concerted activity, raised workplace concerns, or exercised other legal rights.

Harassment, Workplace Culture

Employee-generated content can become evidence in workplace disputes.

Employers should make clear that employee-created content is subject to the same anti-harassment, anti-discrimination, anti-retaliation, and workplace conduct standards and policies that apply to all workplace activities. Content should not mock or target coworkers, customers, applicants, protected characteristics, workplace complaints, medical conditions, accommodations, or disciplinary matters.

Employers also should consider the role of managers in approving or encouraging content, particularly when managers approve, promote, or disregard inappropriate posts.

Privacy, Confidentiality, Recording

Employee-created content can inadvertently reveal confidential or sensitive information, including customer and employee data, trade secrets, proprietary business information, and so on. In addition, where content creation involves facial recognition technology, voiceprints, or other biometric identifiers, employers should evaluate compliance with state biometric privacy laws, such as the Illinois Biometric Information Privacy Act (BIPA). Employers that are HIPAA-covered entities or business associates should also assess whether content could expose protected health information.

Employers should implement clear rules governing permissible filming locations, recording practices, consent requirements, content-approval, and information that may not be shared publicly. Where the content captures customer images, personal data, or behavioral information, employers should also consider obligations under state consumer privacy laws, such as the California Consumer Privacy Act (CCPA) and similar state statutes.

Employers should also be mindful of state recording laws. Some states require all-party consent before recording certain conversations. Employers should not encourage employees to record workplace interactions without first considering applicable state recording and privacy laws.

Intellectual Property, Likeness Rights

Employee-creator programs should establish clear rules on content ownership and use, including whether the company owns the content, receives a license to use it, or relies on a usage agreement with the employee creator. Employers should also consider whether content created within the scope of employment qualifies as a “work made for hire” under the Copyright Act (17 U.S.C. § 101), and whether a written assignment or license agreement is necessary to secure the employer’s rights.

Written terms should address the employer and employee’s rights to edit, repost, promote, monetize, and repurpose the content. They should also address the scope and duration of those rights, whether they continue after employment ends, whether consent can be revoked, and whether the company may use the employee’s name, voice, image, likeness, social media handle, or personal brand. Employers should review applicable state right-of-publicity statutes, which vary significantly in scope, duration, and other protections, to ensure that consent and usage terms are enforceable in this regard.

These issues are especially important when content is shared on personal accounts. Employees may build personal followings through employer-related content, while employers may want continued access to the content or its reach. Clear terms at the outset can help avoid future disputes.

Off-Duty Conduct, Personal Accounts

Employers should establish clear boundaries between business-related content and personal social media activity. When employee-creators use their own personalities, accounts, audiences, and devices, issues involving ownership, control, discipline, and privacy can become complicated.

Employers should decide where creator content will be posted and set clear rules regarding account access, required captions, company tags, content removal, and post-employment use of published content.

Employee-creator programs should account for state laws governing social media privacy and lawful off-duty conduct. Because many states restrict employer access to employees’ personal social media accounts and discipline of employees for lawful off-duty activity, employers should carefully review applicable state law requirement before imposing broad restrictions on employees’ personal online presence.

Practical Steps for Employers

Before launching an employee-creator program, employers should consider:

  • Written program terms describing eligibility, voluntariness, compensation, timekeeping, approvals, and termination of participation.
  • Wage-and-hour procedures for tracking and paying all compensable content-creation time.
  • NLRA-compliant social media policies that preserve employee rights to discuss terms and conditions of employment.
  • Objective selection criteria.
  • Written consent for use of employee name, image, likeness, voice, handle, and content.
  • Privacy and recording rules for filming.
  • Confidentiality safeguards for trade secrets, customer information, business data, and internal communications.
  • Compliance with state biometric privacy laws (such as BIPA) and consumer privacy laws (such as the CCPA) where content captures biometric data or customer personal information.
  • Review of tax, benefits, and overtime implications for creator payments.
  • Copyright ownership analysis, including work-made-for-hire status, written assignments, and state right of publicity compliance for use of employee name, image, likeness, and voice.
  • Exit rules addressing content use after employment ends.

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(Although it is beyond the scope of this article, companies also should consult qualified counsel about related Federal Trade Commission disclosure requirements.)

Employee-created content can be a valuable business tool when managed appropriately.

Please contact a Jackson Lewis attorney with any questions about compliance with federal, state, and local workplace laws, including policy drafting, training, wage-and-hour compliance, social media guidelines, and workforce planning.

© Jackson Lewis P.C. This material is provided for informational purposes only. It is not intended to constitute legal advice nor does it create a client-lawyer relationship between Jackson Lewis and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material. This material may be considered attorney advertising in some jurisdictions. Prior results do not guarantee a similar outcome. 

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