Seyfarth Shaw LLP

Seyfarth Synopsis: The California Supreme Court concluded that the “good faith” defense applies to claims seeking to impose penalties under California Labor Code section 226. An employee must show that an employer’s failure to comply with section 226(a) was both knowing and intentional in order to establish an entitlement to penalties. Naranjo v. Spectrum Security Services. The Facts Gustavo Naranjo, filed a putative class action on behalf of Spectrum employees…

Seyfarth Synopsis: On April 23, 2024, the Department of Labor released its latest attempt to amend its 1975 “fiduciary rule” and seven prohibited transaction class exemptions issued between 1975 and 2020 that investment advice fiduciaries have relied in connection with sales of common investment products like securities, mutual funds and annuities. These amendments have already been challenged in court, and it remains to be seen whether it will be “third…

Special Purpose Entities in Commercial Real Estate Transactions Corporate structures in commercial real estate transactions can often be very complex and involve layers of entities. Special purpose entities that are bankruptcy remote (“SPEs”) are frequently used in commercial real estate loans to limit certain risks associated with a bankruptcy filing involving a borrower or its property. This applies to loans originated by CMBS (commercial mortgage-backed securities), agency (Fannie Mae and…

AddressSeyfarth Shaw Hong Kong OfficeSuite 3701 & 3708-3710, 37FEdinburgh Tower, The Landmark15 Queen’s Road CentralCentral, Hong Kong Tuesday, 21 May 2024 (HKT)8.30 – 9.00 a.m. Check-in and Breakfast9.00 – 10.00 a.m. Roundtable10.00 – 10.30 a.m. RefreshmentsBreakfast will remain available during the roundtable CostThere is no cost to attend, but registration is required. REGISTER HERE About the Programme In recent years, privacy and cybersecurity consistently hit the top of legal leaders’…

Seyfarth Synopsis: On April 29, 2024, the Department of Labor published extensive guidance on the use of artificial intelligence in hiring and employment. While the guidance is addressed to federal contractors, all private-sector employers using or considering using artificial intelligence should pay attention. The guidance makes clear that long-standing nondiscrimination principles fully apply to AI and outlines “Promising Practices” designed to mitigate AI risks in employment, including the risk of…

By: Matthew J. Gagnon Seyfarth Synopsis: In its seminal decision, Bostock v. Clayton County, Georgia, the Supreme Court held that discrimination on the basis of sexual orientation or gender identity is tantamount to discrimination on the basis of sex. Employers are just beginning to grasp the wide-ranging impact that decision will have on the American workplace. The reasoning of this decision: that to treat an employee differently because of the sex…

Last week on April 23, 2024, the FTC adopted a final rule that would effectively ban non-compete agreements in the context of employment relationships when the rule becomes effective on September 4, 2024, absent a stay or injunctive relief.  The rule would render unenforceable a broad array of employment-based non-competition agreements.  It would also require that employers provide notice to workers that certain non-competition agreements already entered into will not…

Seyfarth Synopsis: In Mobley v. Workday, the EEOC filed an amicus brief supporting a class-action plaintiff's theory that a Human Resources software company could be directly liable for employment discrimination allegedly caused by the vendor's artificial intelligence tool under theories that the organization was acting as an employment agency, indirect employer, or agent of the employer. Employers, HR vendors and service providers, and AI developers should take note because even…

On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers. The Final Rule becomes effective 120 days after being published in the Federal Register (Effective Date).[1] As of the date of this paper, the Final Rule has not been published in the Federal Register. Key Provisions Scope: The Final Rule prohibits an employer from entering into,…

On April 18, 2024, the Financial Crimes Enforcement Network (FinCEN) released further guidance regarding to Corporate Transparency Act compliance (CTA) by updating and expanding the Beneficial Ownership Information Reporting Frequently Asked Questions regarding the Beneficial Ownership Information (BOI) Reporting Rule (FAQs). Importantly, the updates provide insight on BO access by foreign governments, law enforcement and financial institutes. 1. Understanding Beneficial Ownership Reporting A beneficial owner is an individual who either…

The USPTO’s recent guidance on AI usage marks a critical moment for legal practitioners. This document emphasizes the necessity for both technical and human oversight in mitigating the risks associated with AI tools. The agency is committed to leveraging AI’s benefits across society while ensuring that these technologies do not compromise the integrity of legal processes. The guidance clarifies that existing USPTO rules and regulations fully apply to AI-assisted activities.…

What You Need to Know: Governor Kathy Hochul approved the Fiscal Year 2025 New York State Budget (the “NYS 2025 Budget”) on April 20, 2024. Several leave-related topics affecting private employers are impacted by the NYS 2025 Budget. Most notably, a new paid prenatal personal leave entitlement was added to Section 196-b of the New York Labor Law, i.e., the New York State Paid Sick Leave Law. Beginning January 1,…

This afternoon, the FTC voted to adopt a proposed final rule banning most non-competes with workers in the United States. The final rule provides that it is an unfair method of competition—and therefore a violation of Section 5 of the FTC Act—for employers to enter into non-competes with workers. The Commission found that non-competes tend to negatively affect competitive conditions in labor markets by inhibiting efficient matching between workers and…

On April 18, 2024, the Federal Trade Commission (“FTC”), Justice Department (“DOJ”), and the U.S. Department of Health and Human Services (“HHS”) launched an online reporting portal, HealthyCompetition.gov, for the public to report potentially unfair and anticompetitive health care practices. The online reporting portal provides examples of unfair and anticompetitive health care practices under existing antitrust laws including: “consolidation, joint ventures, and ‘roll-ups’ ”; “[a]greements among competitors to limit or…

ATLANTA (April 24, 2024) – Seyfarth Shaw LLP announced today the arrival of partner Michael Delaney to the firm’s Corporate department. Delaney joins Seyfarth from Bryan Cave, where he was counsel in the corporate and finance transactions group. Delaney’s multifaceted public and private company experience, along with his successful track record in private practice and as chief legal officer of three multinational companies across multiple industries, deepens the firm’s offerings…

Seyfarth synopsis: Today, the U.S. DOL unveiled its final overtime rule. The rule significantly increases the minimum salary for so-called “white collar” employees to be exempt from the federal FLSA’s overtime pay requirements. This development requires attention from virtually all employers. The DOL’s final overtime rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, revises the Fair Labor Standard Act’s overtime exemptions for executive,…

Seyfarth Synopsis: The United States Supreme Court issued its opinion in one of the most anticipated employment cases of this term. In Muldrow v. City of St. Louis, the Court considered whether Title VII of the Civil Rights Act of 1964 prohibits discrimination in transfer decisions absent a separate showing that the transfer caused a “significant” harm. In its opinion, the Court rejected this heightened harm requirement, which will have…

LOS ANGELES (April 16, 2024) - Seyfarth Shaw LLP announced today the addition of a three-lawyer team to its labor and employment department further expanding its service offerings nationally and internationally. The trio of prominent employment litigators joins Seyfarth from Morgan Lewis & Bockius LLP. Clifford “Seth” Sethness has built a formidable reputation over the past two decades as a leading labor and employment attorney. He joins Seyfarth as a…

Apr. 17, 2024  – As most California employers are now aware, a new workplace violence law (SB 553) requires essentially all CA employers to develop and implement written Workplace Violence Prevention Plans and training by July 1, 2024. The new requirements will be enforced by Cal/OSHA. Cost  –  There is no cost to attend, but registration is required. REGISTER HERE Join us for a two-part webinar series as attorneys from our Workplace Safety team guide…

Seyfarth Synopsis: U.S. Citizenship and Immigration Services (USCIS) recently announced a Temporary Final Rule extending the automatic extension period for certain Employment Authorization Document (EAD) renewal applicants from up to 180 days to up to 540 days. On April 4, 2024, the U.S. Citizenship and Immigration Services (USCIS) announced a Temporary Final Rule (TFR) extending the automatic extension period for certain Employment Authorization Document (EAD) renewal applicants from up to…

Seyfarth Synopsis: On March 14, 2024, the Massachusetts House of Representatives passed legislation that would prohibit employers from obtaining or using a true credit report for employment purposes. The proposed law, which includes only limited exceptions, would be one of the most restrictive of its kind in the country. The bill is expected to pass the Senate and be signed by Governor Maura Healey. If passed, the law would go…

On December 22, 2023 the State of New York adopted the New York LLC Transparency Act (as amended to date, the “NY LLCTA”). The NY LLCTA in many respects follows the federal Corporate Transparency Act (together with any regulations promulgated thereunder, the “CTA”). However, one material difference is that unlike the CTA which applies to many different types of entities, including corporations, limited partnerships, limited liability companies and statutory trusts…

Seyfarth Synopsis: A series from our seasoned and successful Boston L&E Trial Team will explore the latest trends in jury trials in a time of explosive verdicts, Reptile tactics, polarization, and an election year. We’ll offer practical strategies on how to maximize your chance of a total defense verdict, despite these headwinds, based on our experience navigating trials in this environment. We will cover specific strategies for a range of claims,…

Tennessee has joined the ranks of states regulating, in various ways, the use of artificial intelligence to manipulate an individual’s likeness.  On March 21, 2024, Gov. Bill Lee said “thank you very much” to the Tennessee legislature and signed into law the Ensuring Likeness, Voice, and Image Security (“ELVIS”) Act of 2024, HB 2091/SB 2096, which updates Tennessee’s right of publicity statute.  The new law is groundbreaking because Tennessee has…

 By Matthew A. Sloan, A. Scott Hecker, and Adam R. Young Seyfarth Synopsis: On April 1, 2024, the Federal Register published OSHA’s final rule revising its regulations regarding whom employees can authorize to act as their representative(s) to accompany compliance officers during on-site OSHA inspections. Under Section 8(e) of the Occupational Safety and Health Act, employees and employers alike have the right to have a representative accompany OSHA Compliance Officers (“CSHOs”) during physical…

By Rachel See, Dawn Solowey and Adrienne Lee Seyfarth Synopsis: In a written opinion issued on March 7, 2024, the EEOC confirmed that an employee must not only show a sincerely held religious belief, but that the employee’s religious belief is actually in conflict with the workplace training or program. The EEOC’s opinion also confirmed that an undue hardship analysis is not limited to considerations of an employer’s financial cost,…

Please note:  while we address certain country-specific updates, this Alert contains information regarding global requirements, policies, and procedures as they stand as of the date of publication. We highly recommend reviewing any global mobility inquiries on a case-by-case basis, including any consulate-specific or immigration authority resources, in “real-time” before traveling internationally. Please reach out to our Global Mobility Team in advance of any international travel. Canada – Update on Post-Graduate…

By: Bradley D. Doucette, Scott P. Mallery, & Noah A. Finkel Seyfarth Synopsis: A new piece of legislation introduced in Congress, if enacted, would amend the Fair Labor Standards Act to establish 32-hour workweek for non-exempt employees, with no loss in pay. While the bill is unlikely to gain steam, it might trigger movement throughout the country to revisit what a “standard” workweek means for American employees. We are posting…

By Alex J. Reganata and Barry J. Miller Seyfarth Synopsis: Plaintiff, a white man, was a strong performer in his role before he was fired and replaced by three women, two of whom were racial minorities, amid a Diversity and Inclusion initiative that included a call to restructure the workforce to reflect a different racial and gender makeup. The Fourth Circuit upheld the jury’s finding that the Plaintiff’s race was…

UK Skilled Worker Visa – Significant Changes A major update to the UK immigration rules was published on 14 March 2024.  The new rules will become effective on 4 April 2024. Notably, these new rules will affect a large number of employers and their employees who need UK work visa sponsorship. Transitional arrangements apply until 3 April 2030 for Skilled Workers whose Certificate of Sponsorship is assigned before 4 April…

LONDON (March 21, 2024) - Seyfarth Shaw LLP announced today the arrival of partner Matthew Banham to the firm’s litigation department, further expanding the firm’s globally recognized white-collar and investigations practice. Banham joins Seyfarth from Dechert, where his practice focused on multi-agency and complex cross-border investigations and prosecutions with an emphasis on financial crime and contentious regulatory matters. "There is a tremendous need right now among our clients for expertise…

On Wednesday, March 20, Seyfarth attorneys Rebecca Woods, Owen Wolfe, Lauren Leipold, and Puya Partow-Navid will present and Ken Wilton will moderate, the first session of the 2024 Commercial Litigation Outlook webinar series: Charting the Course: AI’s Influence on Legal Practice and IP Protection. Time of the event:1:00 p.m. to 2:00 p.m. Eastern About the Program Our esteemed panel of experts will explore the intricate intersections of AI technology, legal…

Seyfarth Synopsis:  As reporting companies prepare their Pay Versus Performance (PVP) disclosures for their upcoming proxy statements, they should take into consideration the most recent guidance on the topic in Securities and Exchange Commission’s (SEC’s) Compliance & Disclosure Interpretations (CD&Is). The PVP disclosure rules (Item 402(v) of SEC Regulation S-K) require public reporting companies to disclose (for fiscal years ending on or after December 16, 2022) the relationship between executive…

March 12, 2024 — Seyfarth Shaw LLP, a leading law firm known for its innovative approach and client-focused services, today announced the creation of its first Impact & Sustainability Partner position, underscoring its commitment to aligning business goals with client values and demands. The firm has appointed seasoned partner Ameena Majid to this founding role, which will help the firm and its clients navigate and drive business goals centered around…

Our guest today is Zack DeMeola, Senior Director of Strategic Initiatives at the Law School Admission Council (LSAC), a not-for-profit organization with the goal of advancing law and justice by promoting access, equity, and fairness in law school admission and supporting learning journeys from prelaw through practice. A former corporate litigation attorney, Zack left practice after several years to join the Institute for the Advancement of the American Legal System…

Seyfarth Synopsis: A pending bill in New Jersey’s legislature would significantly lower the standard for establishing harassment claims and require employers to implement anti-harassment training and policies and report complaint data to a government agency. Earlier this year, New Jersey legislators introduced Assembly Bill 2443 (“AB 2443” or the “Bill”), which if passed, would significantly reduce the standard for harassment claims under the New Jersey Law Against Discrimination (“NJLAD”) and…

By Brent I. Clark, James L. Curtis, Patrick D. Joyce, A. Scott Hecker,  Daniel R. Birnbaum, Melissa A. Ortega and Taylor Iaculla Seyfarth Synopsis: This week we are attending the ABA Occupational Safety and Health Law Meeting in San Juan, Puerto Rico. The meeting includes representatives from the U.S. Department of Labor, OSHA Review Commission, the MSHA Review Commission, OSHA and MSHA Judges, and the Solicitor’s Office, as well as management, labor, and safety…

International Women’s Day for 2024 has the important theme of Count Her In: Invest in Women. The UN talks about the importance of empowering women and investing in women in a range of ways. This includes accelerating women’s economic empowerment by recognising that when women entrepreneurs are successful, this can lead to more benefits. The topic of investing in women has been in the headlines in Australia, following the first…

Seyfarth’s Commercial Litigation practice group is pleased to present the fourth annual installment of the Commercial Litigation Outlook, which provides insights on litigation issues and trends to expect in 2024. Since its inaugural publication in 2020, Seyfarth’s Commercial Litigation Outlook has served as a beacon for legal professionals, providing invaluable insights and forecasting emerging trends.  2024 promises to be one for the history books — a vastly more robust regulatory…

By Brent I. Clark, James L. Curtis, Patrick D. Joyce, A. Scott Hecker, Daniel R. Birnbaum, Melissa A. Ortega and Taylor Iaculla Seyfarth Synopsis: This week we are attending the ABA Occupational Safety and Health Law Meeting in San Juan, Puerto Rico. The meeting includes representatives from the U.S. Department of Labor, OSHA Review Commission, the MSHA Review Commission, OSHA and MSHA Judges, and the Solicitor’s Office, as well as management, labor, and safety professionals. Day 2 started…