Compliance Stuff

  A prominent cybersecurity training company just fell victim to an increasingly common scam when it hired a remote worker who turned out to be a North Korean cybercriminal that used AI deepfake tools to fake his identity and infiltrate the organization. The Florida-based company caught the would-be thief before he was able to steal any data, but he did attempt to load malware and execute unauthorized programs on firmwide systems in what could have been a damaging attack. “If something like this can happen to us, it can happen to almost anyone,” the CEO said in the wake of the cyberattack. What are the 10 things you can do to ensure you don’t fall for the same scam? What Happened? The Florida-based firm, which specializes in providing cybersecurity training across the globe, was hiring a remote software engineer for its internal IT AI team. It ended up hiring a remote worker for the job after a typical hiring process. It selected resumes from the applicant pool, conducted four vide...

As the upcoming elections approach, employers should be aware of the Congressional Review Act, its potential impact on current rulemaking, and how your workplace might be affected . This brief Insight will outline how the CRA works, how it has been used in the past, and why new regulatory activity might be impacted due to upcoming deadlines. 1. What is the Congressional Review Act? The Congressional Review Act, enacted in 1996, allows Congress to review and potentially overturn new federal regulations issued by government agencies. It gives a new Congress the power to overturn rules established by an outgoing Administration, making it a significant tool during periods of political transition. When a rule is finalized, Congress has 60 legislative days to disapprove it through a Joint Resolution. If both the House and Senate pass the resolution and the President signs it, the rule is nullified, and the agency is prohibited from issuing a substantially similar rule in the future. This l...

Michigan employers soon will face a significantly higher minimum wage and more onerous employee sick leave obligations after the Michigan Supreme Court invalidated the Michigan legislature’s amendments related to two voter ballot initiatives. Mothering Justice v. Attorney General and State of Michigan, No. 165325 (July 31, 2024) . Effective Feb. 21, 2025, the state’s minimum wage rate will increase from $10.33 per hour to a rate that likely will exceed $12.00 per hour, with some forecasting a minimum wage as high as $12.50 per hour. The rate employers may pay tipped employees also will increase, from $3.93 per hour tip credit rate to 48 percent of the new minimum wage (or $5.76 per hour, assuming a $12.00 minimum wage). The Supreme Court declined to apply the wage increase retroactively. Employers will not be responsible for payment of back wages that would have been due employees had the legislature not amended the statute. In addition, nearly all Michigan employers will be required t...

 The landscape of federal military leave law may be shifting. In the past three years, four federal appellate courts have held that an employer may be required to offer paid leave for an employee’s military service where the leave is comparable to paid leave offered by the employer for non-military reasons. Employers in these jurisdictions and other jurisdictions should consider reviewing their leave and paid leave policies with legal counsel to assess their potential obligations. The federal Uniformed Services Employee and Reemployment Rights Act (USERRA) provides, in relevant part: [A] person who is a bsent from a position of employment by reason of service in the uniformed services shall be: A. deemed to be on furlough or leave of absence while performing such servic e; and B. entitled to such other rights and benefits not determined by seniority as are generally provided by the employer of the person to employees having similar seniority, status, and pay who are on furlough ...

It’s hard to keep up with all the recent changes to labor and employment law, especially since the law always seems to evolve at a rapid pace. In order to ensure you stay on top of the latest changes and have an action plan for compliance, here is a quick review of some critical developments we tracked in July and a c hecklist of the essential items you should consider addressing in August and beyond. _____ Get Ready for the   First-Ever National Heat Safety Rule.  OSHA proposed regulations on July 2 that could soon require you to implement robust measures to safeguard your employees from extreme heat both indoors and outdoors.   The proposal still needs to wind its way through a months-long administrative process and could even be derailed by new standards set by the Supreme Court that take aim at agency overreach, so you’ll want to follow the process closely.  Here are the 10 steps you should consider taking to prepare for the new rule . _____ Prepare for the Impac...

Four new and notable laws affecting Louisiana employers are taking effect in summer 2024, including an expanded statute of limitations for employment torts, meal breaks for minors, a ban on predispute arbitration agreements for sexual harassment, and a ban on nondisclosure agreements regarding sexual harassment or hostile workplace environment claims. Quick Hits Louisiana’s statute of limitations for employment-related tort actions has been doubled to two years from the day an injury or damage is sustained. The law took effect on July 1, 2024, and is prospective only. Employers must provide breaks to workers under sixteen years of age whose shifts last five hours or more. Employers are prohibited from requiring predispute arbitration pacts for sexual harassmen t. New Two-Year Statute of Limitations for Employment Torts Governor Jeff Landry recently signed into law Act No. 423 , which extends the prescriptive period (Louisiana’s term for the statute of limitations) for tort actions to ...

 On July 30, 2024, the U.S. EPA Office of Inspector General issued a fraud alert to bring attention to an increasing number of companies reporting that they have received fraudulent EPA Notice of Violation letters demanding payment. Businesses have received these fraudulent letters through email and U.S. Postal Service mail. The letters allege that the target business violated an environmental regulation, such as the Clean Air Act or Clean Water Act. The contact information provided – invoice@epa.services – is not associated with the EPA. Official U.S. government organizations only use the “.gov” domain name. If you have received a Notice of Violation and are concerned about its validity or have other questions or concerns, consider consulting experienced legal counsel. You can also contact the U.S. EPA’s enforcement office at OECA_Communications@epa.gov with any concerns regarding potentially fraudulent letters. The U.S. EPA’s Office of Inspector General’s Hotline ((888) 546-8740...

It is not news that employees “hang out” and socialize “outside of work” through social media platforms. While these platforms provide outlets for employees to express themselves, bond, chat, joke, and share vacation photos, these sites can also be used to harass, threaten, and harm employees. Misuse of social media among coworkers can create a hostile and toxic work environment that can lead to employer liability if not addressed. In Okonowsky v. Garland , Case No. D.C. 2:21-cv-07581-VAP-AS (Jul. 25, 2024), the Ninth Circuit ruled that e mployers can be held liable for claims of hostile work environment under Title VII if an employee shares content on a personal social media account that negatively impacts the workplace. Unsurprisingly, Okonowsky aligns with recent Equal Employment Opportunity Commission (EEOC) guidance, issued April 29, that discusses the ways in which employee social media use outside of the workplace can contribute to a sexually hostile work environment. Factual B...

The hot mess known as the FTC Rule to Ban Non-Competes (“Rule”) continues to get hotter and messier as two Federal District Courts issue conflicting opinions. This conflict between the Federal Courts will not be resolved before the Rule’s “enactment” date of Sept. 4, 2024 . Given the uncertainty over the Rule, below is a short Q&A follow-up to our April 23, 2024 Client Alert that provides the latest updates on the Rule and the options companies have regarding compliance. Q : Remind me again, what does the Rule state exactly about banning Non-Competes? The Rule states that “it is an unfair method of competition for a person: (i) To enter into or attempt to enter into a non-compete clause; (ii) To enforce or attempt to enforce a non-compete clause; or (iii) To represent that the worker is subject to a non-compete clause.” The Rule contains an exception for “Senior Executives,” which is discussed below. Q: Ok. And how does the Rule define a Non-Compete clause? According to the rule, a...

In a challenging labor market, retaining skilled employees is paramount for businesses aiming to maintain competitiveness and operational continuity. Employee turnover not only disrupts workflow but also incurs significant costs related to recruitment, training, and lost productivity . As such, understanding the diverse reasons behind employee departures is essential for developing effective retention strategies. While many employers might recognize cultural fit, r elatable mentors and role models, and other factors as playing a role in retention, few think of menopause. The impact of menopause on workforce participation One often overlooked factor contributing to workforce attrition, particularly among women, is menopause. This natural biological process can bring about symptoms that significantly affect work performance and well-being. “The topic of the menopause is becoming less taboo in some countries, as grassroots campaigns like Menopause Mandate and Let’s Talk Menopause help bre...

On March 15, 2024, the U.S. Supreme Court issued a decision in Lindke v. Freed that lays out a two-part test for when a public official’s social media activity constitutes state action. According to the Court, a public official’s posts on social media are attributable to the government if the official had the actual authority to speak on the government’s behalf and the official purported to speak on the government’s behalf. Background James Freed started a private Facebook page in 2008. He used the platform prolifically and had thousands of friends. F acebook limits a user’s total number of friends to 5,000, so he made his page public, meaning anyone could view and comment on his posts. He identified himself as a “public figure” on the page. In 2014, Freed became city manager for Port Huron, Michigan. In his Facebook biography, he identified himself as a father, a husband, and “City Manager, Chief Administrative Officer for the citizens of Port Huron, MI.” His profile picture depicted ...

 Overview June marked the six-month milestone for the implementation of the Corporate Transparency Act (CTA)—the landmark anti-money laundering law requiring beneficial ownership reporting for U.S. companies that became effective on January 1, 2024. During this period, millions of newly formed companies have already filed their beneficial ownership information reports (BOIRs) with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). But tens of millions more companies that were created or registered to do business before January 1, 2024, will be required to file their initial reports by January 1, 2025 . With five months left to evaluate the complex legal issues surrounding application of and reporting under the CTA, as well as gather relevant beneficial ownership information, these existing entities s hould be taking steps now to prepare to file their reports by the deadline. Since the enactment of the CTA and the launch of the Beneficial Ownership Sec...