Compliance Stuff

  On July 24, 2024, the Governor of Puerto Rico, Hon. Pedro Pierluisi, signed into law Senate Bill 1282, the   Law Against Discrimination Based on Hair Styles . This law adopts as public policy the express prohibition of discrimination in the offering of public services, employment, education, and housing, in the public and private sectors, based on individuals’   protective hairstyles   or hair textures, which are regularly associated with a particular race and national origin identities. The phrase   protective hairstyles   is defined by the law as those hairstyles used to maintain curly hair into its natural style including, but not limited to, rolls or tight curls, locs, glued braids, twists, cornrows, Bantu knots and afros. This law also amends several statutes such as the  Puerto Rico Public Service Relations Act , PR Act No. 45-1998;  Law for the Administration and Transformation of the Human Resources in the Government of Puerto Rico , P...

  Quick Hits Cal/OSHA’s heat illness prevention regulation moved quickly from approval to implementation in a shorter time period than normal and took effect on July 23, 2024. The rule contains requirements for indoor heat illness training, trigger points of 82°F and 87°F, requirements for administrative and engineering controls, procedures for the provision of water and access to cool-down areas, procedures for acclimatization, and requirements for emergency response procedures. Cal/OSHA can now begin indoor heat illness inspections based on the new regulation. On June 20, 2024, the California Occupational Safety and Health Standards Board voted unanimously to adopt a proposed version of Title 8 CCR § 3396, “ Heat Illness Prevention in Indoor Places of Employment ,” after a  prior attempt  at passing a proposed indoor heat regulation failed. The regulation was then submitted to the Office of Administrative Law (OAL) for review. According to Cal/OSHA, OAL approved the reg...

 Every four years, a U.S. presidential election brings voters to an intersection where they decide whether to turn right or left. Halting at these intersections often brings heightened tension and polarizing discourse within our workplaces and society. Taking proactive measures to ensure the safety and well-being of employees and providing an environment conducive to effective collaboration among employees can help prevent fraught work environments from forming. Here are some practical procedures that employers may want to consider implementing throughout standard day-to-day operations, before and after an election, to efficiently navigate establishing ground rules and policies, fostering environments of open dialogue, and providing support. Quick Hits Research shows that there can be a decline in job performance after an election, due to employees who experience strain and distraction. Employers can take several proactive steps to maintain productivity and a supportive work envir...

 On January 1, 2024, Congress enacted the Corporate Transparency Act (the “CTA”) as part of the Anti-Money Laundering Act of 2020 and its annual National Defense Authorization Act.  Every entity that meets the definition of a “reporting company” under the CTA and does not qualify for an exemption must file a beneficial ownership information report (a “BOI Report”) with the US Department of the Treasury's Financial Crimes Enforcement Network (“FinCEN”). Reporting companies include any entity that is created by the filing of a document with a secretary of state or any similar office under the law of a state or Indian tribe (this includes corporations, LLCs, and limited partnerships).  In most circumstances, a reporting company only has to file an initial BOI Report to comply with the CTA's reporting requirements. However, when the required information reported by an individual or reporting company changes after a BOI Report has been filed or when either discovers that the ...

Many business leaders celebrated the Supreme Court’s recent landmark ruling that offers a powerful new tool to fight back against regulatory agencies – but are hidden dangers lurking beneath this apparent victory? While the Loper Bright decision will no doubt have a broad impact on business operations and especially workplace law, t he end of the decades-old Chevron doctrine could come at a cost . Here are four reasons this victory might fall short of the hype for employers. Quick Background: SCOTUS Strips Power From Federal Agencies For 40 years, the Supreme Court required courts to routinely defer to an agency’s “reasonable” interpretation of ambiguous provisions in federal law, providing federal agencies (and the White House) a powerful instrument to shape the law as they saw fit . This deference allowed agencies to issue rules, regulations, and guidance that carved new paths that were not always anticipated by congress or the general public. But the 2024 Supreme Court term saw SCOT...

  Business email compromise (“BEC”) occurs when a payee’s business email account is compromised or impersonated. The threat actor, posing as the payee or its representative (e.g., the head of the accounting department), sends alternate wire or ACH instructions, causing the payor to direct an otherwise planned payment to an account unassociated with the intended payee. By the time the intended payee inquires about its nonreceipt of funds, the threat actor has already redirected funds from the recipient account, leaving the payor “out” the payment but the intended payee without compensation. Although there is a relative dearth of case law addressing which party should bear the loss under this fact pattern, two divergent approaches have emerged. The Imposter Rule The first approach, adopted by most of the courts that have examined this issue, is to apply the “Imposter Rule” from Article 3 of the Uniform Commercial Code (“UCC”). 1  Although Article 3 addresses third-party fraud in...

  The IRS is making good on its promise to step up enforcement on large partnerships that issue more than 100 annual K-1s and have more than $100 million in assets. As noted in this Latham Client Alert, the IRS’s renewed focus on large partnerships is a response to the explosive growth in the number, size, and complexity of these entities. Please see full publication for more information. Source(s): JD Supra , received on July 18, 2024

 In Soltero v. Precise Distribution, Inc., Case No. CIVSB2203669 (May 18, 2024), the California Court of Appeal held that a non-signatory employer cannot compel arbitration in reliance on an arbitration agreement between a temporary helper and a staffing provider in the absence of certain conditions. The court rejected the two most common bases for third-party enforcement: (1) equitable estoppel and (2) third-party beneficiary. In reaching its holding, the court ruled that a non-signatory employer cannot compel arbitration where: (1) the plaintiff’s claims against the non-signatory defendant are not based on the terms of the contract containing the arbitration agreement, (2) the staffing provider is not a party to the lawsuit, or (3) the non-signatory is not explicitly identified as a beneficiary in the agreement. Background Facts Real Time, a temporary staffing agency, placed the plaintiff, Nelida Soltero, on assignment with Precise Distribution from October 2017 through January ...

  On July 15, 2024, Governor Newsom signed   Assembly Bill (AB) 1870 , which mandates that employers include information in their notices about an injured employee’s right to consult with a licensed attorney for advice about workers’ compensation law and that attorneys’ fees may be paid as part of the injured worker’s award.    In California, employers have specific obligations to ensure their employees are well-informed about their rights and benefits under the workers’ compensation system. Employers must post a workers’ compensation informational poster in a conspicuous location frequented by employees. Employers are required to provide new employees with  a workers’ compensation pamphlet that outlines their rights and benefits . This must be done either at the time of hiring or by the end of the employee’s first pay period. If an employee is injured, the employer must provide a Workers’ Compensation Claim Form (DWC 1) and a Notice of Potential Eligibility wi...

Due diligence may not be glamorous, but it is the bedrock of a successful deal. Put simply, due diligence is the process of meticulously examining every nook and cranny of a target company’s operations, finances, and legal standing to ensure that a merger or acquisition is a smart business move. In this article, we will consider the importance of due diligence and the due diligence steps that acquiring companies should undertake before closing a deal. What is the purpose of due diligence? At its core, d ue diligence is about risk mitigation and informed decision-making . It is the process through which a potential acquirer evaluates a target company’s assets, liabilities, and overall business health. The primary goal is to understand the potential risks associated with a transaction. It involves examining legal, financial, operational, and other relevant aspects to uncover any issues that could impact a deal’s outcome. Due diligence also helps organizations verify the accuracy of inf...

 The Federal Trade Commission’s (FTC) ban on noncompetition covenants (“noncompetes”) could significantly impact the design and administration of employee benefits and executive compensation arrangements. Quick Hits The FTC’s ban on noncompetition covenants has potential implications for several aspects of employee benefits and executive compensation plans and arrangements, such as Code Section 457(f) plans, restricted stock, severance arrangements, golden parachute payments, and garden leave. The rule takes effect on September 4, 2024 , but a federal district court in Texas recently granted a preliminary injunction staying the enforcement of the final rule as to the parties in the case. The court’s decision, pending a final ruling on the merits by August 30, 2024, has signaled that the FTC’s noncompete rule will not survive judicial scrutiny. Although the U.S. District Court for the Northern District of Texas recently granted a preliminary injunction staying enforcement of the ru...

  “Millions for defense, but not one cent for tribute.” That slogan became a rallying cry for Federalists during  the XYZ Affair in 1798 . Way back then, France and England were at war. What a surprise. The fledgling United States did not want to choose sides in a war between the reigning heavyweight champs of the world, so it negotiated a neutrality pact with England. Part of the deal permitted British war ships to raid American merchant vessels with goods bound for France, as long as England paid for the goods it seized. I kid you not. That was part of the deal. The French were a wee bit miffed about that arrangement and began to raid American merchant vessels. Hoping to keep the peace, President John Adams sent a diplomatic team to France to negotiate a resolution. The French government refused to meet with the American envoys until certain conditions were met. Among them was a demand that America pay a bribe of $250,000 to the French Foreign Minister.  Sacré bleu! Whe...

  California’s Governor signed   Assembly Bill (AB) 2299   on July 15, 2024, which requires the state’s Labor Commissioner to develop a model list of employee rights and responsibilities under existing whistleblower laws. Employers will be required to post this notice beginning January 1, 2025 . The notice must be written in a font larger than 14 point and contain the telephone number of the whistleblower hotline. Under existing California law, employers are required to post certain workplace notices, including a list of employees’ rights and protections under whistleblower laws. However, the current law does not require employers to post a  specific  notice drafted by the Labor Commissioner outlining employee rights and responsibilities under whistleblower laws. The Labor Commissioner previously issued  a sample notice  pursuant to the current law which includes the disclaimer that the Labor Commissioner does not guarantee its posting by employers ful...

With the Federal Trade Commission’s Final Rule that would ban noncompetes nationwide set to go into effect on September 4, 2024 , assuming pending litigation doesn’t cause any delays, employers should begin planning now to address any potential compliance concerns. Legal and human resources teams will need to consider the impact of the Final Rule on current noncompete agreements, requirements for providing notice to impacted employees under the rule, and strategies for implementing pending and future agreements if the rule is upheld. Please see full publication here for more information. Source(s): JD Supra , received on July 18, 2024; McDermott Will & Emery , accessed on July 18, 2024.

  Unemployment Insurance, Paid Leave and WA Cares: Q2 reports and payment are due July 31 Learn more on the  Unemployment taxes page at esd.wa.gov . For Paid Leave and WA Cares, learn more and download the CSV template and instructions at  paidleave.wa.gov/reporting . You can submit one combined report for Paid Leave and WA Cares. But be sure to submit two payments: one for each program. Be aware of a known technology issue with future-dated Paid Leave payments.  See the alert on the Paid Leave website .  Unemployment Insurance: Act before Sept. 30 to protect your tax rate If you have a balance, get a deferred payment contract Avoid a delinquent tax rate for 2024! By Sept. 30: File all your tax reports. Pay your current and past-due unemployment taxes, penalties and interest in full. Consider a deferred payment contract if you cannot pay Are you unable to pay your balance owed? You can protect your tax rate by getting a deferred payment contract. Email our Colle...