Alerts & Newsletters

On October 12, 2017, Governor Brown signed two new laws that take effect January 1, 2018, that will affect California employers. Senate Bill (SB) 63 mandates that small businesses provide 12 weeks of baby bonding to employees. Assembly Bill (AB) 168 bans employers from inquiring about a job applicant’s salary history.

It was a busy couple weeks in Washington, D.C., for food regulation. This newsletter discusses recent reports impacting food regulation in the near and long term.

Revisions to the Hospice and Hospice Residences Rules (“Rules”) of the Michigan Department of Licensing and Regulatory Affairs, Bureau of Community and Health Systems (the “Department”) became effective September 28, 2017. The revisions were intended to align the Rules with current industry standards and eliminate unnecessary regulation. Hospice providers must review the revised Rules to ensure compliance and avoid legal risk.

Biometric privacy litigation is on the rise in Illinois. In just a six week period, more than 15 class actions have been filed under Illinois’s Biometric Information Privacy Act (BIPA) – compared to just a handful of cases in all prior years. What is BIPA? What are the cases about? Most importantly, how can you avoid the risks to your organization?

The U.S. International Trade Commission (“ITC”) issued a determination on Friday, September 22, 2017, finding that solar panel imports are hurting domestic businesses that operate in the solar industry. The ITC’s determination was issued in connection with a trade case filed in April 2017 by a Georgia-based company, Suniva, Inc., shortly after filing for bankruptcy protection.

In the aftermath of Hurricane Harvey, and in preparation for the looming threats of Hurricanes Irma and Jose, it is important to remember that there are some avenues available to employers and employees to encourage various forms of relief to the victims of those natural disasters without adverse tax consequences.

Dykema is closely monitoring the potential threat of legal fallouts in the wake of supply shocks caused by Hurricane Harvey and the other hurricanes and tropical storms threatening North America. One fallout seen already is the declaration of force majeure by some suppliers. 

As we reported in November 2016, a federal court issued a preliminary injunction halting the implementation of the proposed changes to the FLSA’s overtime exemptions just before they were to take effect on December 1. On August 31, 2017, the same court issued another decision definitively holding that the Department of Labor exceeded its authority in issuing those regulations and thereby permanently enjoining them.

The Office of Management and Budget (“OMB”) announced on August 29, 2017, that the pending deadline for covered employers to submit pay data to the Equal Employment Opportunity Commission (“EEOC”) has been suspended indefinitely. Employers had been facing a deadline of March 31, 2018, to submit this additional pay information.

The sudden arrival of Hurricane Harvey is an unfortunate reminder to lenders and servicers of the issues that arise after catastrophes. This checklist provides guidance about immediate issues lenders, servicers and special servicers must address now.

Two cases concerning the scope of the Stored Communications Act, 18 U.S.C. §§ 2701 et. seq., (the “SCA”) under the Fourth Amendment are currently before the Supreme Court. The SCA, which was enacted more than 30 years ago, sets forth requirements for voluntary and compelled disclosure of electronic communications and records stored by third-party internet service providers. The purpose of the SCA is to protect privacy.

Every other year, the Texas Legislature convenes for roughly six months in Austin. Given the tight time frame and biennial nature, sessions of the Texas Legislature tend to be “fast and furious” (and also full of some drama).

On July 1, 2017, Illinois amended its limited liability company act (“Act”) in an effort to make the Act more in line with the Revised Uniform Limited Liability Company Act. Below is a summary of the more noteworthy provisions.

Effective January 1, 2018, the State Tax Lien Registration Act (“Act”) will create a state tax lien registry to be maintained by the Illinois Department of Revenue (“Department”) for filing notices of tax liens that are in favor of or enforced by the Department.

When a defaulted borrower files a bankruptcy petition, two important events occur: (1) a bankruptcy “estate” comprised of certain assets of the debtor is created; and (2) all collection efforts (and pending litigation) against the debtor or its assets are automatically stayed. Accordingly, the court’s determination of whether items are or are not property of the debtor and of the bankruptcy estate is of critical importance to the creditor’s ability to collect on its debt.

On July 1, 2017, amendments to California’s Fair Employment and Housing Regulations take effect, further restricting the consideration of criminal history in making employment decisions. For those in the City of Los Angeles, the rules are even more stringent under the Fair Chance Ordinance, that is often referred as the “ban-the-box” ordinance. Penalties and fines for violating Los Angeles municipal rules will  be assessed as of July 1, 2017.

On July 1, 2017, new California regulations take effect that specifically address protections for transgender persons, including equal access to use of facilities, such as restrooms.

Ransomware has emerged as one of the greatest cybersecurity threats facing organizations and individuals in all industries. According to at least one study, the number of ransomware attacks has skyrocketed from 3.8 million in 2015 to 638 million in 2016. The numbers also do not tell the full story of how crippling these attacks can be. 2017’s WannaCry attack shut down health care institutions and manufacturing plants causing untold financial damage and threatening people’s lives. But can businesses and individuals protect against these threats?The short answer is yes. As the attached infographic from Dykema’s Privacy and Data Security Group shows, companies can take a number of steps to reduce the risk, or the impact, of a ransomware attack. Here’s what businesses can do:

On June 7, 2017, the U.S. Department of Labor withdrew the controversial Administrator Interpretations (“AIs”) issued in 2015 and 2016 regarding its guidance on  “independent contractors” and “joint employers.”

The U.S. Department of Health and Human Services, Office of Inspector General (“OIG”), in collaboration with the Health Care Compliance Association, recently released a guide to assist health care organizations in measuring the effectiveness of their compliance programs. The guide, entitled Measuring Compliance Program Effectiveness: A Resource Guide (the “Guide”), was published on March 27, 2017, and follows the U.S. Department of Justice’s (“DOJ”) recently released memorandum entitled Evaluation of Corporate Compliance Programs. While the OIG’s and DOJ’s focus on compliance programs is not new, the combined level of detail set forth in these two publications underscores the critical and ever-growing importance that both the OIG and DOJ continue to place on compliance programs.