Enhancing Transparency: New Law on Disclosure of LLC Beneficial Owners

On December 22, 2023 Governor Hochul signed Bill A3484A amending New York State's limited liability company law and the executive law. This new amendment will significantly transform the landscape of limited liability companies (LLCs) in New York. How will this bill accomplish this? By eradicating anonymous ownership of LLCs. 

This amendment defines beneficial ownership while also mandating the disclosure of beneficial owners upon the formation of an LLC, and publicizing this information in New York State's business entity database. 

This change to the law stems from concerns about the repercussions of anonymous corporate ownership. It highlights the misuse of anonymous LLCs for various illicit activities, including tax evasion, funding criminal organizations, money laundering, and even hindering routine code enforcement.

This legislative move aligns New York State with global efforts to foster transparency in corporate ownership. By mandating disclosure and establishing a public database, this change to the law aims to curtail illicit activities associated with anonymous ownership while protecting genuine privacy concerns through specific exemptions and waivers.

The transparency this law brings will save time, money, and resources for those suing an LLC. This will reduce unnecessary motion practices and other additional steps that had been required in order to determine who to serve when suing an LLC. 

This bill stands as a significant step towards a more transparent and accountable business landscape in New York State.

This law comes into effect on December 21, 2024, 365 days after being signed by the Governor. To learn more about Bill A3484A , click here. 

Understanding the Justice Department's Proposed Rule on Accessible Medical Diagnostic Equipment for Disability Non-Discrimination

On 1/12/24, the Justice Department announced a proposed rule revision under the Americans with Disabilities Act (ADA), targeting the accessibility of Medical Diagnostic Equipment (MDE) in state and local government entities. This move is a significant step towards ensuring that medical diagnostic equipment is accessible to all, regardless of disability. 

The rule, proposed by the Civil Rights Division of the Department of Justice, seeks to amend title II of the ADA regulations. The primary goal is to establish explicit requirements, including technical standards, for accessible MDE provided by state and local governments. 

Key Provisions:

• Adoption of Standards: The rule proposes adopting standards set by the Architectural and Transportation Barriers Compliance Board for MDE.
• Scoping Requirements: Specifics on the amount and type of accessible MDE required.
• Deadline for Comments: Stakeholders can submit comments until February 12, 2024, primarily through the electronic Federal Docket Management System.

Impact on Medical Services: The lack of accessible MDE has been a barrier for people with disabilities, often leading to compromised health care. For instance, patients with disabilities have faced challenges in accessing routine examinations like mammograms and Pap smears due to inaccessibility. This rule aims to rectify such disparities.

Public Participation: The Justice Department encourages public involvement in the rulemaking process. Comments can be submitted electronically or via mail. It's an opportunity for healthcare providers, individuals with disabilities, and other stakeholders to voice their opinions and concerns.

Implications for State and Local Governments: Entities offering medical services will need to align with these standards, ensuring that their MDE is accessible. This might involve acquiring new equipment or modifying existing setups.

Economic and Environmental Considerations: The Department invites comments on potential economic and environmental impacts of the rule. This consideration is crucial for balanced and sustainable implementation.

Costly Consequences: How Recent Sexual Harassment Settlements Highlight the Financial Risks for Employers

NYS mandates that every employer to provide each employee with annual sexual harassment prevention training, as required by Labor Law §201-g, and in NYC by Local Law §96. Non-compliance not only risks severe statutory penalties and potential misdemeanor charges by the government, but also exposes your organization to substantial financial judgments in cases of workplace discrimination lawsuits.

Recent settlements in sexual harassment cases illustrate the potential financial impacts:

1. Chopourian v. Catholic Healthcare West: $168 million settlement. (Source: Zuckerman Law)
2. Sanders v. Madison Square Garden: $11.6 million settlement. (Source: Zuckerman Law)
3. USA Gymnastics v. Larry Nassar: $380 million settlement. (Source: eratics.com)
4. McDonald’s: $2 million settlement. (Source: EEOC)
5. SAVA Senior Care: $150k settlement. (Source: EEOC)
6. Chipotle: $400k settlement. (Source: EEOC)
7. Burger King: $60k settlement. (Source: EEOC)
8. D.C. Dept of Corrections: $8 million settlement. (Source: eratics.com)
9. Columbia University: $100 million settlement. (Source: New York Times)
10.  "F.M." v. Dept of Children and Family Services of LA County: $45.4 million jury award. (Source: Taylor Ring)

To mitigate your exposure, Lieb Compliance offers interdisciplinary sexual harassment prevention training. Our program is a blend of insights from social sciences and legal perspectives, ensuring comprehensive understanding and compliance. We feature engaging star presenters adept at managing sensitive topics, providing an interactive and thought-provoking experience.

Our training is available on-demand, includes a fully-developed complaint procedure, and is backed by an administration system to track compliance. This comprehensive approach ensures that your organization not only meets legal requirements but also fosters a respectful and safe workplace environment.

Don't risk non-compliance. Enroll in Lieb Compliance's NY Sexual Harassment Training today.

For more information, visit https://www.sexualharassmenttrainingny.com

No More Non-Competes VETOED

On December 22, 2023 Governor Hochul vetoed Bill A01278. This bill would have fundamentally altered New York State's Labor Law by prohibiting non-compete agreements and additional restrictive covenants in labor and employment contracts.

This bill would have addressed the usage of non-compete agreements in employment contracts. It defined critical terms and highlighted that employers, their representatives, or officers of corporations could not solicit, demand, or accept a non-compete agreement from a covered individual. However, it didn't prohibit employers from entering into agreements that protected trade secrets, client information, or client solicitation. 

The justification behind this legislation was grounded in the adverse impact of non-compete agreements on New York's labor market and economy. These agreements purportedly curtailed workers’ mobility, limiting their ability to explore better employment opportunities and potentially stifling competitive wages and benefits.

The federal government has shown interest in a nationwide ban on non-compete agreements. New York could have lead the charge in fostering a more open and competitive labor market by codifying this ban into state law. 

Now, non-competes live on and companies hiring those with non-competes should be worried about tortious interference with a contract claims being levied against them. 

To learn more about Bill A01278, click here. 

Newsmax: Attorney Andrew Lieb Debates New Texas Immigration Law

Attorney Andrew Lieb appears on Newsmax to debate the legality of Texas' new law authorizing the state's police to arrest migrants entering the country illegally. Lieb argues in favor of the law, stating it is within Texas' rights to enforce illegal entry into the state based on how this law differs from the precedent in Arizona v. US (plus, different makeup of the court). 

NewsNation: Employment Attorney Andrew Lieb Discusses Proposed Laws Against Fat Discrimination

Attorney Andrew Lieb appears on NewsNation to talk about potential legislation prohibiting discrimination based on weight or obesity. He discusses the potential enforcement of laws against 'weight discrimination' and their implications for employers, including the consideration of obesity as a protected category akin to race or religion in anti-discrimination laws. 

In the discussion, Lieb tackles employers' worries, such as the possibility of a gym or health-centric business being unable to hire someone who doesn't align with their brand ethos. He delves into the intricate legal aspects and underscores the importance of fostering an inclusive work environment, steering clear of shaming individuals.

Scripps News: Lieb Explaining Workplace Age Discrimination Laws and the Deadspin Article Controversy

Discrimination Attorney Andrew Lieb explains the challenges of proving age discrimination claims under The Age Discrimination in Employment Act of 1967 and current efforts in Congress to lower the bar. 

He also discusses whether the parents of a 9-year old Kansas City Chiefs fan have a legal case against Deadspin for portraying him as having blackface in an article where they targeted him for face paint and wearing a headdress.

Newsmax: Attorney Andrew Lieb Talks About Judge Rejecting Texas Bid To Stop Agents Cutting Border Razor Wire

Attorney Andrew Lieb joins The National Report Court on Newsmax TV to debate a recent court ruling in which a federal judge rejected Texas' bid to stop federal agents from cutting razor wire that Texas had installed along the U.S.-Mexico border. Andrew Lieb debates whether Texas has the legal authority to sue the federal government over its border security policies by citing the need for sovereign immunity in order for the US Government to function.

Equality in Health Law: NYS Bill for LGBTQ+ & HIV Protection Against Discrimination

On November 30, 2023, Governor Hochul signed A0372A establishing a new section of the Public Health Law, Section 2803-c-2. 

This new addition to the Public Health Law combined with Executive Law 296 creates express discriminatory events that are actionable. 

The new Lesbian, Gay, Bisexual, Transgender and People Living with HIV Long Term Care Bill of Rights provides that it is unlawful for a long-term care facility or facility staff member to discriminate against any resident on the basis of such resident's actual or perceived sexual orientation, gender identity or expression, or human immunodeficiency virus (HIV) status. 

Under this new addition facilities are required to post notices about their nondiscrimination policies with information about reporting violations, employ procedures for recordkeeping purposes that include residents' gender identity, correct name as indicated by the resident, preferred pronoun as indicated by the resident, protect personally identifiable information regarding residents' sexual orientation and more. 

Facilities are also now required to ensure that facility staff that are not involved in providing direct care to residents are not present during physical examinations or the provision of personal care without the express permission of the resident or the resident's legally authorized representative and ensure that at least once every two years, each facility staff member who works directly with residents receives training on cultural competency focusing on patients who identify as LGBT and/or HIV.

If a facility  discriminates against an individual protected by Section 2803-c-2, that discriminatory conduct may be actionable under the New York State Human Rights Law. 

 

FOX 5 NY: Attorney Andrew Lieb Talks About NYC Mayor Eric Adams Being Accused Of Sexual Assault

This Interview on FOX 5 NY discusses a lawsuit filed against New York City Mayor Eric Adams accusing him of sexually assaulting a woman in 1993 while they both worked for the city. Attorney Andrew Lieb provides context on the legal process, explaining that the initial filing only included a summons with notice to meet the deadline under the Adult Survivors Act, which is now expired - but, this case also involves the NYC Gender Motivated Violence Act, which extends the statute of limitations on old cases, like this, until March 1, 2025. 

Lieb at Law Represents Class Action Hearing Impair Tenants in Landmark NYC Disability Discrimination Case

In a significant development in a case that underscores the ongoing challenges faced by individuals with disabilities in accessing suitable housing, Lieb at Law is representing a hearing-impaired tenant in a discrimination lawsuit against the City of New York and other entities. The case, as reported by Law360, highlights crucial issues regarding the responsibilities of property owners and the rights of tenants with disabilities.

Background of the Case

Elewood Torres, the plaintiff, filed a class-action lawsuit in 2022, challenging the failure of his Lower Manhattan apartment building's owners to provide necessary services for tenants with hearing disabilities. Despite the building at 174-184 Forsyth St. being funded to provide accessible housing, critical safety improvements have been lacking.

Key Issues at Stake

The lawsuit points to the absence of essential features such as video cameras in elevators, smoke alarms with strobe lights and bed shakers, and security staff proficient in American Sign Language. These deficiencies not only violate the Americans With Disabilities Act, and the NYS / NYC Human Rights Laws, but also pose a significant risk to the safety and well-being of the residents.

The City's Position and Plaintiff's Response

The city contends that it no longer owns the property and that the ADA does not apply to private residential complexes. However, Torres disputes this claim, highlighting that the ownership of the building reverted to the city due to breaches in the sale agreements. This aspect is crucial in determining the applicability of the ADA and the city's responsibilities.

Lieb at Law's Stance

Representing Torres, Lieb at Law's Associate Attorney, Richard Hermer-Fried, emphasized the gravity of the situation: "To this day, defendants have not provided bed rockers to wake tenants in case of a fire. It's utterly egregious that nothing's been done to protect these individuals." The firm's commitment to advocating for the rights of individuals with disabilities is evident in its vigorous pursuit of this case.

What's Next in the Case

With a preliminary injunction requested by Torres to compel the defendants to install the necessary improvements, and the court ordering documentation of such improvements, the case is poised for critical developments. Lieb at Law remains steadfast in its pursuit of justice for Elewood Torres and other similarly situated tenants.

To read the full article in Law360 click here. 

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NY Has a New Law Protecting Freelancers (independent contractors)

Governor Hochul enacted significant legislation this week marking a pivotal moment for freelancer workers across New York State by signing BillA06040, known as the "Freelance Isn't Free Act".

Before the introduction of this law (Labor Law 191-d), problems for freelancers included:

1. Delayed or Non-Payment: Without legal mandates, there was little to no consequence for payment terms leaving freelancers financially vulnerable.
2. Lack of Written Contracts: Many freelance engagements proceeded without formal written contracts, leading to misunderstandings and disputes about work scope, payment terms, deadlines, and other essential aspects of the work arrangement.
3. Limited Recourse for Contract Violations: Prior to this law, there was no straightforward legal recourse if an agreement was violated. Pursuing legal action was often costly and time-consuming, making it an impractical option.
4. Absence of Standardized Contract Terms: With no standardization of contract terms, freelancers often agreed to unfair or exploitative conditions due to lack of industry standards or fear of losing work.
5. Retaliation: Freelancers often hesitated to assert their rights or demand fair treatment due to the fear of being blacklisted or losing future work opportunities
6. Administrative Burdens: Freelancers were often burdened with the responsibility of chasing payments and resolving disputes on their own

The goal of the Freelance Isn't Free Act law is to ensure that all laborers get the right to fair and timely pay. Freelancers who are denied rights can claim liquidated damages plus attorneys fees making it easier to pursue a claim against the hiring party (previously, the economics of a lawsuit often effectively eliminated the option for freelancers to enforce their rights to get paid; now that is changed). 

Newsmax: Attorney Andrew Lieb Talks About Sony Facing An $8B Lawsuit For Overcharging Playstation Customers.

National Report court is back in session on Newsmax to discuss a $7.9 billion lawsuit against Sony over claims that the PlayStation maker abused its dominant position in the gaming console market, leading to unfair prices for customers. Attorney Andrew Lieb argues the case on behalf of PlayStation customers.

Statewide 'Freelance Isn't Free Act' Enacted - Real Estate Brokers, Pay Attention

On November 22, 2023 Governor Hochul signed Bill A06040 into law thereby creating Labor Law 191-d, the "freelance isn't free act." 

This law will replicate, in large part, the labor rights of freelance workers in NYC throughout state. The Governor's statement on the Bill can be found here. 

This new law defines which Freelance Workers are protected and then requires that Hiring Parties provide timely payments, a right to a written contract with specific terms, a private right action for violations, a right to no retaliation, a public awareness outreach campaign, a reporting requirement and more. In lawsuits buy Freelance Workers, freelancers who are denied rights can claim liquidated damages plus attorneys fees. 

NYS DOL will provide model contracts as well as a non-judicial, administrative process for resolving disputes between Hiring Parties and Freelance Workers.

The goal of this new law is to ensure that all laborers get the right to fair and timely pay. 

Scripps News: UN Report Highlights Discrimination Against LGBTQ Community - Attorney Andrew Lieb Explains

In this interview on Scripps News, Discrimination Attorney Andrew Lieb discusses a new report from the UN Human Rights Committee that spotlights ongoing discrimination faced by the LGBTQ community in the United States. Lieb analyzes the committee's concerns about discriminatory laws targeting transgender people at the state level. He also addresses issues around employment discrimination, suicide rates in the LGBTQ community, and whether legal protections for LGBTQ individuals have expanded in recent years. This important conversation provides insight into the challenges that still exist and the ongoing fight for equality.

Common Area Cameras Illegal at Residential Buildings

Starting on 11/17/2023, security devices are prohibited on entries to residential buildings without express authorization.

Specifically, new GBL 390-e states that "any keyless security device used to control and secure access to the common areas of any residential building without the express written consent of the owner, board of managers, board of directors, or authorized party of such property" is prohibited.

Protecting Survivors: NYS Bill Prohibits Financial Penalties in Nondisclosure Agreements

On November 17, 2023, Governor Hochul signed Bill A00581, amending NYS' General Obligations Law to prohibit settlements, or other resolution, of sexual harassment claims or any other form of unlawful discrimination from including any term or condition that requires the survivor to pay the defendant liquidated damages if the complainant violates a non-disclosure agreement.

Survivors of sexual harassment and discrimination are often required to sign non-disclosure agreements (NDA) as a condition for receiving compensation for their horror. NDAs frequently include provisions requiring survivors to pay liquidated damages (predetermined damages) if they violate the agreement and these damages can be devastating. 

As a result, survivors, who later change their minds or those who were coerced into signing an NDA, face financial hardships for speaking out about their experience. This new law will protect survivors by no longer allowing financial penalties against them for sharing their stories about experiencing harassment and discrimination.

This Bill takes effect immediately and will apply to agreements entered on or after its effectiveness Agreements can no longer require the survivor to forfeit part or all of the consideration for violating an NDA. Additionally, defendants can no longer require survivors to sign an affirmative statement, assertion, or disclaimer stating that they were not subject to discrimination or retaliation.

Terminating a Lease of a Decedent as an Executor / Administrator

If someone dies who is a tenant and if the estate wants to terminate the lease, all they have to do is notice the landlord by registered or certified mail, return receipt requested. 

That is the new law, Real Property Law 236-a. 

Don't worry landlords, this law doesn't relieve tenants for past due rent, damage, or expenses.

While this law doesn't apply to cooperative units, it sure seems to apply to commercial property, which is insane (all the more reason to have tenants lease as entities, not individuals). 

This law is effective February 15, 2024. 

New Law for Foreclosures / Evictions with Deed Theft

On November 14, 2023, Governor Hochul enacted A06656, amending Section 756-a of New York State's Real Property Actions and Proceedings Law. This amendment is designed to safeguard real property owners from the threat of not resolving claims of potential deed theft fast enough while an eviction or foreclosure is pending. 

This amendment permits a stay of any proceeding to recover possession of or resoling title disputes concerning residential properties when there are underlying issues of deed theft or title disputes. This provision applies specifically when there is a pending good faith investigation into the theft or fraud in the title to, or the financing of, the premises that is the subject of any proceeding for eviction or foreclosure.

This measure will serve as a safeguard, mitigating the risk of homeowners who may, unknowingly, lose their residences.

If an individual is convicted of a criminal offense related to deed theft or fraudulent transactions involving real property, this conviction gives rise to a rebuttable presumption of fraud in the deed transfer, so filing charges needs to be part of a strategic litigation strategy moving forward. In fact, if you file, the District Attorney or Attorney General is then entitled to seek the nullification of the deed transfer. The implicated individual must establish by a preponderance of the evidence that the deed was not procured through fraudulent means.

This amendment goes into effect December 14, 2023. 

Enhancing Utility Workers Rights: New York Assembly Bill A06978

The New York Assembly has introduced Bill A06978 to improve the working conditions of public utility workers. This bill aims to allow utility workers to have access to restroom facilities in businesses without needing to be paying customers.

Key Features of the Bill:

• Restroom Access for Utility Workers: Public utility employees can use employee restroom facilities in businesses during work hours.
• Conditions for Access: Access is allowed when the worker is on duty, with at least two employees of the business present, and when it doesn't pose safety or security risks.
• Compliance and Penalties: Businesses must comply or face a fine of up to $500 per violation, but are not liable for injuries to utility workers using their facilities.

Impact and Significance:

This bill recognizes the essential services provided by utility workers, addressing a basic need for restroom access during their duties. It balances the needs of these workers with the practical and safety concerns of businesses. A06978 is a step towards respecting the dignity and rights of utility workers in New York.

The Bill is on the governor's desk and once she signs it, it becomes effective.