Compliance Stuff

In today’s increasingly digital world, employers are faced with a number of legal considerations to weigh before they discharge or discipline an employee for having outside employment. 0:00 5:15 Quick Hits Side gigs supported by digital apps are becoming more common. State laws may regulate whether an employer can fire a worker for moonlighting. Most employees are considered at will, but some have job protections from a union contract or individual employment contract. It is becoming more common for employees to have side gigs, particularly in roles like food delivery, ridesharing, online tutoring, social media management, creating content as a social media influencer, and reselling goods on online marketplaces. Several factors govern whether an employer can legally fire or discipline a worker for moonlighting, including whether a union contract, individual employment contract, or noncompete agreement is in place. Without a contract, most employees are considered at will, meaning they...

It’s said that an ant can carry fifty times its own weight. That’s nothing. A recent decision out of the U.S. Court of Appeals for the Fifth Circuit provides a compelling reminder to policyholders and their counsel: Even the smallest word in an insurance policy—and even the  placement of a punctuation mark —can carry tremendous weight . In fact, it can alter the meaning of an entire insurance policy. In  Paloma Resources, L.L.C. v. Axis Insurance Co. , the court vacated summary judgment in favor of the insurer based on the placement of a single word— “the” —in an exclusion clause. The decision reaffirms the bedrock principle in insurance policy interpretation that where a policy purports to bar coverage for an insured’s claim, it must do so in an unambiguous and clear manner . When a policy exclusion is unclear, courts will construe the provision in favor of coverage for the policyholder. Paloma’s Claim: A Trade Secrets Lawsuit, a Settlement and a Denial of Coverage In 2017,...

On July 4, 2025, President Trump signed “The One Big Beautiful Bill Act” into law. While much attention has focused on the bill’s rejection of a proposed 10-year federal ban on state and local artificial intelligence (“AI”) regulation, the legislation also enacts sweeping new requirements with major implications for AI and technology companies. Key provisions include stringent restrictions on foreign influence in the AI supply chain, broad extraterritorial rules targeting “prohibited foreign entities,” enhanced domestic sourcing mandates, and rigorous supply chain integrity requirements. These measures present significant compliance and operational challenges, especially for multinational firms with global operations or foreign partners. This Alert highlights the most important aspects of the new law for companies in the AI sector, with a focus on the practical impact of foreign control restrictions, technology licensing limitations, and related compliance obligations. 1. Substantial F...

Employee theft of trade secrets is not only on the rise but is now easier than ever before due to widespread access to rapidly evolving and affordable technology.  Employees continue to use personal email accounts, thumb drives, phone cameras, personal cloud-based accounts (such as OneDrive, Google Drive, and iCloud), and external hard drives to mass-transfer, store, and retain their employer’s trade secret information post-separation. But are these types of technological advances the biggest threat to trade secret protection? With the rise in popularity and availability of generative artificial intelligence (“gen AI”), many employers fear that safeguarding their trade secret information in the future may become even more difficult. How employees are using gen AI in the workplace Employers may be surprised to hear that, according to one survey recently conducted by McKinsey & Company, 61 percent of workers are either using or plan to use Gen AI in conjunction with their work. ...