Compliance Stuff

SUMMARY In recent weeks, there have been significant developments in the legal landscape of pricing and pricing algorithm laws in New York and California. In light of the quickly changing law on pricing, clients should be thinking about reviewing their pricing programs with antitrust counsel and taking other practical steps to decrease the likelihood that these programs might be found to violate state antitrust laws. Recently, California and New York both took significant legislative and legal actions involving pricing algorithms. The results are likely to extend far beyond both states, especially with an ongoing FTC inquiry into the same practices that is likely fueling, either directly or indirectly, many of these states’ actions. Clients who use or distribute pricing algorithms should pay careful attention to these changes: we recommend some potential strategies below as part of a broader effort by clients, including consulting antitrust and consumer protection counsel to advise on ...

Rapid advancements in AI technology are reshaping nearly every stage of the hiring process, from how employers source talent to how candidates present themselves . Artificial intelligence can streamline staffing activities and help job seekers polish their resumes and prepare for interviews. But an emerging concern for employers is whether applicants are using AI to game the system rather than genuinely showcase their skills. How can employers embrace these new tools while still ensuring authenticity in the hiring process? Here are three deceptive practices that could lead to bad hires and seven ways to protect your business. 3 Trends to Spot As AI tools become more sophisticated, employers face growing concerns about deepfakes, embellished work samples, and AI-generated interview responses . The first step to protect your business from these deceptive practices is to stay on top of the latest trends in this area: 1. Falsifying Job Search Materials with AI.  Many job candidates use...

"It's the boogeyman… and he's been here all along."  – Laurie Strode,  Halloween  (1978) As Cybersecurity Awareness Month unfolds and Halloween looms, one of the m ost chilling threats haunting today's businesses isn't a hacker in a hoodie – it's shadow artificial intelligence (AI) . And it may be lurking in your company right now. What may seem like a harmless shortcut or even a helpful digital assistant can quietly morph into a ghost in your machine, undermining defenses, leaking data, and luring your organization into costly incidents, regulatory nightmares, and reputational damage. This month, as you check your locks and test your alarms, it's worth doing the same for your AI ecosystem. Let this alert serve as your survival playbook to help you detect, contain, and banish the risks of shadow AI – before it becomes the next potential headline that keeps you up at night. What Lurks in the Shadows – What Is Shadow AI? Shadow AI refers to the use of AI...

Discrimination claims turn on the motive for the employment decision at issue. Accordingly, cases often focus on the decision-maker. What comments has he made that might suggest prohibited bias? Whom else has she made decisions about under similar circumstances? What did she know and when did she know it? When did he make the decision, and what evidence supports his explanation? Discovery, motion practice, and trial may indeed consist of much wrangling about the decision―who made it and when―with plaintiffs’ lawyers trying to expand the field, and defense lawyers trying to build walls around a single decision-maker who is untainted by bias. The plaintiff’s lawyer wants more targets, more sets of facts from which adverse inferences might be drawn. The defense lawyer wants fewer targets. Quick Hits Discrimination claims often hinge on the motive behind employment decisions, leading to extensive scrutiny of the decision-maker’s comments, knowledge, and timing , with plaintiffs’ lawyers se...

In a significant broadening of vicarious liability for employers, the American Law Institute (ALI) recently approved a “Special Rule on Vicarious Liability for Sexual Assault” as part of the Third Restatement of Torts: Miscellaneous Provisions. This marks a notable deviation from the traditional imposition of vicarious liability on employers by imposing liability “even when the employee was not acting with a motive to serve the employer’s interest.” However, ALI has drafted this special rule with “significant guardrails” meant to temper the burden placed on employers. Quick Hits Recent case law has indicated a gradual shift toward holding employers liable for employees’ sexual misconduct. To expand this liability for employers while acknowledging the risk of creating too much liability, the rule only applies to sexual assault that meets specific criteria, including only applying in circumstances where the victim is “particularly vulnerable.” This rule only applies to employer-employee ...