Nationwide Injunction Halts CTA
FinCEN Suspends Enforcement
The Corporate Transparency Act (CTA), enacted as part of the Anti-Money Laundering Act of 2020, has faced significant constitutional challenges, culminating in a nationwide injunction. As a result, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has suspended enforcement of the CTA’s reporting requirements, providing temporary relief to affected businesses.
Wire Tapping vs. Browser Tracking?
Software like Meta Pixel and Google Analytics that website operators use to track what sites a person visits, or what footprint they leave on those sites, is not subject to the same restrictions as wiretapping a phone line, according to a split decision from the Supreme Judicial Court of Massachusetts, in a case brought against two hospitals.
The court in Vita v. New England Baptist Hospital, et al (SJC-13542), ruled that wiretapping and browser tracking are categorically different pursuits, in its eyes, unless the state legislature decides otherwise. “If the Legislature intends for the Wiretap Act’s criminal and civil penalties to prohibit the tracking of a person’s browsing of, and interaction with, published information on websites, it must say so expressly,” wrote Associate Judge Scott Kafker in the opinion.
Holiday Business Parties
With the holiday season in full swing, workplaces often become the site of parties, gift exchanges, and other festive activities. These activities foster camaraderie among coworkers and allow teams to celebrate their accomplishments. Unfortunately, though, they can also sometimes lead to inappropriate behavior, including sexual harassment, which may lead to problems for the unweary business owner.
Employers can take proactive steps to ensure everyone feels safe and respected during these events. Here are five suggestions to creating a safe and positive environment for holiday celebrations.
Corporate Transparency Act
In a significant development, a Texas federal district court has issued a nationwide injunction temporarily blocking enforcement of the Corporate Transparency Act (CTA). This decision, handed down on December 3 in Texas Top Cop Shop, Inc. v. Merrick Garland (Case No. 4:24-cv-478), deems the CTA and its implementing rules likely unconstitutional.
Conditional Gifts?
A recent decision by the Massachusetts Supreme Judicial Court has sparked interest across legal circles. In a case centered around a $70,000 engagement ring, the court ruled that an engagement ring must be returned to the purchaser if the marriage does not take place, regardless of who may have been at fault. This ruling aligns Massachusetts with the majority of jurisdictions, where an engagement ring is considered a conditional gift—given with the expectation of marriage and thus, contingent upon the marriage actually happening.
While Illinois follows similar principles, this ruling offers a chance to examine how Illinois contract law views the conditional nature of engagement gifts and what factors courts might consider in similar cases.
Corporate Transparency Act
This is big reminder for every small business owner.
Under U.S. Corporate Transparency Act (CTA), most corporations, limited liabilty companies and other legal entities, including homeowners’ associations (HOAs), condominium associations, and co-op associations, are required to file Beneficial Ownership Information (BOI) with the U.S. Financial Crimes Enforcement Network (FinCEN) by no later than January 1, 2025. Every U.S. business must register and file this report.
Insurance Coverage for BIPA violations.
Businesses across Illinois are facing serious challenges in securing insurance coverage for lawsuits brought under the Biometric Information Privacy Act (BIPA). And a recent decision by the federal court in Chicago – Westfield Insurance Company v. UCAL Systems, Inc. – dealt yet another blow to corporate policyholders. This ruling is just the latest in a series of legal setbacks that make obtaining coverage for BIPA claims under standard Commercial General Liability (CGL) policies an uphill battle.
What Is BIPA, and Why Does It Matter?
Make Sure Non-Disclosure Agreements Don’t Stymie Whistleblowing
Small businesses who enter into non-disclosure agreements (NDAs) with employees need to ensure that those documents clearly delineate that they will not be used to discriminate against those who engage in “whistleblower” activity—or such employers could potentially face unpleasant regulatory consequences.
This was underscored in late July, when the federal Consumer Financial Protection Bureau (CFPB) issued a “reminder” that the Consumer Financial Protection Act establishing the agency bars employers from either firing or otherwise discriminating against employees who participate in whistleblower activity, assuming the business in question is regulated by the CFPB.
Illinois Human Rights Act Expanded to Include AI Regulation
Recently, Illinois Governor Pritzker signed H.B. 3773 into law, marking a significant expansion of the Illinois Human Rights Act to include specific regulations on the use of artificial intelligence (AI) in employment decisions. This move reflects the state’s ongoing commitment to civil rights protection, now extending into the realm of advanced technology.
What Does H.B. 3773 Mean for Your Business?
Time to Review Severance Agreement
Employers who have not already done so should comprehensively review their past and present severance agreements to ensure that any non-disparagement and confidentiality clauses contained therein do not run afoul of the National Labor Relations Board’s ruling in a February 2023 case called McLaren Macomb, in which the NLRB significantly—and retroactively—restricted employers’ rights to include such clauses.
Referring to a provision of the National Labor Relations Act (NLRA) that protects employees’ rights to “engage in protected, concerted activities to address or improve working conditions,” the board wrote that: “a severance agreement is unlawful if its terms have a reasonable tendency to interfere with, or coerce employees in the exercise of their Section 7 rights.”
Chicago Business Attorney Blog