Dive Brief:

• With the United Kingdom stunning the world with it's Brexit "Leave" vote, American employers who have employees working in the UK quickly became a bit dazed. But for now, employers can take a deep breath and relax, according to Daniel E. Waldman and Jeremy Corapi, attorneys with Ford & Harrison LLP.
• Writing at Lexology, the pair explains that it will take at two years at a minimum before the true impact hits home – after the UK and EU complete final exit negotiations and strategies. 
• Even so, the attorneys offer some ideas on the most critical issues for U.S. employers, For example, trade and employee movement may be significantly affected. In fact, they write it may rate as the "greatest uncertainty" resulting from Brexit. 

Dive Insight:

Any new trade relationships to be hammered out need to avoid tariffs and other restrictions. It's also likely UK citizens will lose the ability to move freely among other member states and vice versa. The attorneys discuss three possible courses for this situation: total exit or a choice between the Norwegian model or the Swiss model.

Depending on the decision, it potentially could have a strong negative impact on trade and employee mobility for US employers operating in the UK and the EU. Waldman and Corapi explain that under the "Total Exit" or "Swiss" models, market access will be limited and costs will rise.

For now, they write, U.S. employers with workers in the UK and EU should constantly monitor exit negotiation news and if restrictions are going to be onerous, those companies may do what has already been mentioned in the media – shift their operations to EU cities such as Dublin or Frankfort. Also, U.S. employers should keep an eye on Scotland and Northern Ireland, who have both threatened to remain in the EU and break away from the UK.