On April 23, the U.S. Department of Labor released its final rule significantly increasing the salary threshold used to determine whether a worker is exempt from overtime pay. The new overtime rule’s initial threshold increase is slated to go into effect July 1, at which time the threshold will increase from $684 per week ($35,568 per year) […]
On April 23, the Federal Trade Commission published a final rule banning the enforcement of most non-compete agreements. The rule does not take effect immediately. It goes into effect in four months, and it is already subject to legal challenges that are being filed to stop the rule from going into effect. Nevertheless, it is […]
Earlier today, the United States Department of Education released the updated Title IX regulations. The regulations expand the definition of sexual harassment and include explicit protection against discrimination based on pregnancy, parental status, or gender identity. They do not address Title IX’s application to sex-separate athletic teams. Those will be addressed in a later rule. […]
On Monday, the Equal Employment Opportunity Commission (EEOC) finalized its Pregnant Workers Fairness Act (PWFA) regulations, reinforcing its broad view of “pregnancy, childbirth, or related medical conditions” put forth in its initial August 2023 proposed regulations. The Final Rule is located here: https://public-inspection.federalregister.gov/2024-07527.pdf Background: Signed by President Biden in December 2022, the PWFA took effect […]
Effective April 16, 2024, the Confidentiality of Substance Use Disorder (“SUD”) Patient Records regulations at 42 CFR part 2 (“Part 2”) are amended to increase coordination among providers treating patients for SUDs, strengthen confidentiality protections through civil enforcement, and enhance integration of behavioral health information with other medical records to improve patient health outcomes. These provisions mark a critical step in ensuring that individuals receiving treatment for SUD have access to comprehensive care while safeguarding their privacy rights and removing barriers to care coordination and the associated dual compliance obligations for regulated entities.
The OFCCP’s Contractor Portal, where federal contractors must satisfy their annual AAP verification requirement, opened on April 1, 2024. Federal contractors must certify the status of their AAPs for each establishment and/or functional/business unit by July 1. A contractor’s failure to certify its AAP compliance increases the risk that it will be selected for a […]
The U.S. Equal Employment Opportunity Commission (EEOC) has announced that the 2023 EEO-1 data collection will open on April 30, 2024. The deadline for employers to file their EEO-1 reports is June 4, 2024. An EEO-1 Report must be submitted by all private sector employers with at least 100 employees, federal contractors with 50 or […]
LARA, in conjunction with the Michigan AG’s Office, has issued another warning to professional license holders in Michigan that scam artists, impersonating LARA or other government officials, continue to reach out to license holders in an attempt to convince them to pay money in order to keep their license. LARA’s Director, Marlon Brown, has advised: […]
It is important to remain vigilant about compliance with the Corporate Transparency Act and getting an entity’s BOIR report filed in a timely manner.
On March 26, 2024, Miller Johnson filed a lawsuit challenging the constitutionality of the federal Corporate Transparency Act (CTA). Miller Johnson represents the Small Business Association of Michigan, the Chaldean Chamber of Commerce, Steward Media Group, LLC, Power Connections Co, LLC, Derek Dickow, Semper Real Estate Advisors, LLC, and Timothy Eisenbraun.
The CTA is a sweeping, invasive, and confusing criminal law enforcement statute that burdens millions of small businesses—and subjects law-abiding Americans to potential criminal penalties in violation of the United States Constitution.
The CTA requires small businesses to disclose sensitive personal information about their owners to the federal government. This burden is placed on the smallest of small businesses—companies with less than $5 million in annual revenue. Medium and large businesses are exempt, as are banks and insurance companies.
The CTA also requires small businesses to report the personal information of anyone who helps form the business. According to the government, even the mailroom employee who physically delivers documents must comply. If a small business fails to comply, the consequences can be severe. Any person who willfully fails to report the required information can face prison time.
The cost of complying with the CTA’s vague and convoluted reporting requirements and regulation is substantial. The government’s own estimates predict that the cost of compliance for 2024 alone will reach $27.1 billion.
The CTA violates the constitutional rights of millions of law-abiding Americans and American businesses. The CTA exceeds Congress’s authority, violates the Constitution’s prohibition on unreasonable searches and seizures, and is unconstitutionally vague.
Small businesses are a vital part of Michigan’s economy. Miller Johnson is proud to represent the Small Business Association of Michigan, the Chaldean Chamber of Commerce, and their members in this challenge to the CTA’s costly, confusing, and unconstitutional requirements.
If you have any questions contact any of the authors or any member of our CTA Taskforce.
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