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.
Neural Data: What Illinois Business Owners Need to Know
California enacted an Amendment to the California Consumer Privacy Act (CCPA) that adds neural data to the list of protected personal sensitive information. For Illinois business owners—especially those conducting business in California or utilizing neurotechnology—this development is worth understanding, as it marks another step in the expanding landscape of data privacy laws. Neural data, often collected through non-invasive neurotechnology tools, is now considered sensitive and will be protected under the same stringent requirements as other personal information like genetic, biometric, and geolocation data.
What is Neural Data and Why is it Important?
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?
BIPA Amendment Making Waves in Litigation Trends
The landscape of biometric privacy in Illinois is poised for a significant shift following the recent amendment to the Illinois Biometric Information Privacy Act (BIPA). On August 4, 2024, Governor JB Pritzker signed S.B. 2979 into law introducing a crucial modification that could have far-reaching implications for businesses and the ongoing wave of biometric privacy litigation.
Understanding BIPA: A Background
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 Paid Leave Ordinance
Employers physically located within the City of Chicago need to be ready as of July 1 to implement the new Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, which stipulates that covered employees can earn up to 40 hours of paid sick leave and 40 hours of other paid leave usable for any reasons per 12-month accrual period.
Covered employees are those who work at least 80 hours within a 120 day period. Immigration status is irrelevant. The benefit year can be defined the same for all employees or entirely individually, and can be tied to the calendar year, fiscal year, tax year, contract year or anniversary date of employment.
