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News
December 31, 2024
The 5th Circuit Court of Appeals recently issued a significant ruling halting the enforcement of the Corporate Transparency Act (“CTA”), which had been set to require businesses to disclose corporate and personal information by January 13, 2025. This decision marks a dramatic reversal, following a prior ruling just days earlier that had reinstated the reporting requirements. The new halt came after a December 26 ruling by another 5th Circuit panel, which reinstated a nationwide injunction to preserve the status quo while the court reviews the substantive arguments in the case. A hearing is scheduled for March 2025, with briefing schedules
News
December 24, 2024
The Financial Crimes Enforcement Network (FinCEN) has extended the deadline for most reporting companies to file beneficial ownership information (BOI) reports to January 13, 2025. This extension follows a recent court ruling that reinstated the reporting requirement.
News
December 24, 2024
Disneyland has agreed to settle a class-action lawsuit for $233 million, which alleged that the park failed to pay its employees, known as cast members, in accordance with an Anaheim minimum wage law. The lawsuit stems from a 2018 measure, Measure L, that required businesses in Anaheim's resort area to pay a $15 minimum wage if they benefited from city tax rebates. The settlement, which affects over 50,000 current and former employees, will cover back pay with interest. A judge is set to review the settlement on January 17, 2025, and once approved, workers will receive notifications about their compensation.
News
December 17, 2024
Starting January 2025, the Occupational Safety and Health Administration (OSHA) will require construction industry employers to ensure that personal protective equipment (PPE) properly fits workers based on their unique body sizes and shapes. Announced on December 11, this update explicitly mandates that PPE—such as hard hats, gloves, safety harnesses, and protective footwear—is both appropriate for job hazards and fitted for effectiveness. The change is particularly significant as the industry sees a growing number of women in construction, highlighting long-standing challenges with PPE fit for diverse body types.
Resources
December 11, 2024
Addressing employee performance issues is a critical aspect of effective management, yet it requires careful handling to avoid legal pitfalls. Employers must strike a balance between fostering productivity and ensuring compliance with employment laws to mitigate risks of claims such as wrongful termination, discrimination, or retaliation. The following legal tips provide a framework for addressing performance issues in a fair, consistent, and legally sound manner.
News
December 11, 2024
A U.S. magistrate judge ruled that social media platform X (formerly Twitter) must face most of a lawsuit filed by six former employees who claim they were not paid severance after being laid off or resigning following Elon Musk's acquisition of the company. The lawsuit includes claims of wage theft, breach of contract, and failure to provide advance notice of layoffs. The plaintiffs, based in New York, California, and Texas, allege they were denied over $1 million in severance payments after Musk's $44 billion takeover. One claim is brought under California's Private Attorneys General Act, allowing the plaintiffs to represent
News
December 5, 2024
As most businesses were rushing to meet the January 1, 2025, deadline to submit Beneficial Ownership Information (BOI) under the Corporate Transparency Act (CTA), a federal court in Texas issued a major ruling on December 3, 2024. The court temporarily stopped the U.S. government from enforcing the BOI reporting requirements nationwide. The lawsuit, filed by the National Federation of Independent Business (NFIB), argued that the CTA might be unconstitutional. The court agreed, finding that the law likely exceeds Congress’s authority to regulate commerce or pass laws necessary for tax collection.
Resources
December 3, 2024
With the holiday season upon us, California employers may be eager to foster camaraderie and celebrate the year's achievements. However, office holiday parties can bring unique legal risks. Here are some best practices to help employers manage these events while maintaining a positive and compliant workplace environment.
News
November 27, 2024
In a significant legal settlement, Disney has agreed to pay $43 million to resolve claims of systematically underpaying female employees. This case underscores the importance of addressing pay inequities and the legal risks associated with compensation practices. The lawsuit, filed in 2019 by LaRonda Rasmussen, highlighted pay disparities between her and male colleagues with the same job title. Approximately 9,000 current and former female employees joined the case. As part of the settlement, Disney will pay $43.25 million and conduct a pay equity analysis over the next three years.
News
November 26, 2024
In 2024, the U.S. Department of Labor (“DOL”) implemented a final rule that raised the salary thresholds for classifying certain employees as exempt from overtime pay under the Fair Labor Standards Act (“FLSA”). The rule, which was set to increase these thresholds in two phases—one in July 2024 and another in January 2025—was expected to expand overtime eligibility to approximately four million employees. The rule also included automatic adjustments to the salary thresholds every three years based on Census data. However, a federal court in Texas blocked the rule nationwide on November 15, 2024, effectively reinstating the prior, lower salary
