As the calendar flips to 2025, we embark on new beginnings, adhering to resolutions and updates to laws for New York employers. Following are some important reminders: New York Minimum Wage On January 1, 2025, the hourly minimum wage for employees in New York State increased by fifty cents. For New York City, Long Island and Westchester, the new minimum wage is $16.50 hourly; and for the rest of New York State, it’s $15.50 hourly. The minimum cash wage and maximum tip credit also increased for (a) service employees and (b) food service workers, each who regularly receive tips. For… Read more
The Government has now elevated the question of the enforceability of the Corporate Transparency Act (CTA) to the Supreme Court. In earlier alerts, we described the litigation in the U. S. District Court for the Eastern District of Texas and the United States Court of Appeals for the Fifth Circuit in the case Texas Top Cop Shop, Inc., et al. v. Garland, et al. The status of this District Court and Fifth Circuit litigation is that on December 26, 2024, the Fifth Circuit restored the District Court’s injunction which blocks the enforcement of the CTA and its Beneficial Ownership Information… Read more
Come avrete forse appreso, il 3 dicembre 2024 la Corte distrettuale degli Stati Uniti per il Distretto Orientale del Texas ha emesso un’ingiunzione preliminare a livello nazionale che sospendeva l’applicazione del Corporate Transparency Act (CTA) e le relative regole di reporting sui proprietari/beneficiari effettivi (BOI). In seguito al ricorso presentato dal Governo il 5 dicembre 2024, il CTA è stato oggetto di molteplici provvedimenti giudiziari emessi durante gli ultimi giorni del 2024. In particolare, il 23 dicembre 2024 la 5th Circuit Court of Appeal aveva inizialmente ripristinato l’efficacia della normativa in commento ma poi, il 26 dicembre, aveva rovesciato la propria pronunzia. Infine, alla vigilia di Capodanno, il Governo ha proposto ricorso alla Corte Suprema… Read more
In June 2023, the NLRB ruled that Starbucks illegally threatened and terminated two former employees for engaging in protected activities. Among other relief, the Board’s order required that Starbucks must “compensate [its former employees] for any direct or foreseeable pecuniary harms against them, including reasonable search-for-work and interim employment expenses, if any, regardless of whether these expenses exceed interim earnings.” In issuing the relief, the Board relied on its 2022 decision in Thryv, Inc., which held that, “in all cases in which [its] standard remedy would include an order for make-whole relief,” it will also “expressly order that the respondent… Read more
Brief Background: In previous Legal Alerts we described the case Texas Top Cop Shop, Inc., et al. v. Garland, et al., in which the United States District Court for the Eastern District of Texas granted a nationwide preliminary injunction that stayed the enforcement of the Corporate Transparency Act (CTA) and the CTA’s reporting rules. We also described subsequent proceedings in which, on December 23, 2024, a motions panel of the Fifth Circuit Court of Appeals stayed the District Court’s injunction pending appeal. Shortly after the Fifth Circuit overturned the District Court’s injunction, the U.S. Financial Crimes Enforcement Network (FinCEN), which… Read more
UPDATE: This Legal Alert describes the litigation in the Texas Top Cop Shop case that occurred prior to the merits panel of the Fifth Circuit Court of Appeals reinstating the nationwide preliminary injunction on the CTA on December 26, 2024. To read our Legal Alert regarding the reinstatement of the nationwide injunction, CLICK HERE. District Court Case On December 3, 2024, in Texas Top Cop Shop, Inc., et al. v. Garland, et al., the United States District Court for the Eastern District of Texas granted a nationwide preliminary injunction that stayed the enforcement of the Corporate Transparency Act (CTA) and… Read more
Introduction On December 10, 2024, the Securities and Exchange Commission’s Investor Advisory Committee hosted a panel to examine the use of mandatory arbitration clauses among SEC-Registered Investment Advisers. The panel followed a 2023 report published by SEC’s Office of the Investor Advocate (OIAD) revealing that mandatory arbitration clauses negatively affect retail investors. As a result, the SEC faces increased scrutiny and calls for regulatory changes that could affect dispute resolution and disclosure requirements for nearly 16,000 RIAs. [1] Overview of the Study on Mandatory Arbitration Clauses On December 5, 2023, the OIAD released its Report on Activities for Fiscal Year… Read more
On December 3, 2024, in Texas Top Cop Shop, Inc., et al. v. Garland, et al., the United States District Court for the Eastern District of Texas granted a nationwide preliminary injunction that stayed the enforcement of the Corporate Transparency Act (CTA) and the CTA’s reporting rules. On December 5, 2024, the government filed a Notice of Appeal to the Fifth Circuit Court of Appeals of the District Court’s opinion and order. The U.S. Financial Crimes Enforcement Network (FinCEN), which is the bureau of the United States Treasury that is responsible for administration of the CTA, recently issued a statement… Read more
For employers, the holiday season often includes hosting annual parties, catering office luncheons, or distributing end-of-year gifts and bonuses. However, with these good tidings and cheers comes potential liabilities. Office Parties With respect to holiday parties and office gatherings, employers should take steps to minimize potential liability: Attendance Should Be Voluntary: Make it clear that attendance is optional. If attendance is mandatory, employers must compensate hourly employees for their time, as required by the Fair Labor Standards Act (“FLSA”) or applicable state law. Written invitations or event notices should explicitly state that participation is voluntary. Prevent Harassment: Inappropriate behavior at… Read more
The Fair Labor Standards Act (“FLSA”) requires covered employers to pay employees overtime compensation at the rate of one and one-half times the regular rate of pay for all hours worked over 40 in a workweek, unless the employee qualifies for an exemption. To qualify as an exempt executive, administrative, or professional employee (“white collar worker”) under the FLSA, generally the employee must satisfy the applicable duties test, be paid on a salary basis regardless of how many hours are worked during the workweek, and the employee’s earnings must meet or exceed a minimum salary threshold also known as the… Read more
