The Department of Labor (DOL) announced that on March 11, 2024, a new rule, 89 FR 1638, will go into effect restoring the multifactor analysis used by courts for decades in determining if an individual is an employee or Independent Contractor (IC) under the Fair Labor Standards Act (FLSA). 

Misclassifying workers as ICs rather than employees can result in wage claims with liquidated damages and attorneys' fees under the FLSA, which can be catastrophic for business to continue to exist. Simply, you have to get it right and ICs that are misclassified have excellent cases because liquidated damages are two (2) times the amount not received. 

This new rule is being announced because DOL had concerns about the 2021 IC Rule where it did not fully align with the FLSA's text and purpose. 

The six factors under the New Rule are:

1. Opportunity for profit or loss
2. Financial stake and nature of resources invested in the work
3. Degree of permanence of the work relationship
4. Degree of control the employer has over the person’s work
5. Whether the work is essential to the employer’s business
6. Worker’s skill and initiative

This new rule provides a consistent approach for conducting business with ICs and employes. 

You can read the Department of Labor's release on this new law here. You can read the final rule here. 

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. 

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.

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

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. 

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). 

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.

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.

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.