Legal Updates

A Commentary on the PRC Export Control Law

I. Legislative Background

When the Ministry of Commerce of the Peoples Republic of China (the MOFCOM) solicited comments on the Export Control Law (Draft) in 2017, it pointed out that under the background where major countries and regions in the world have already formulated export control laws, China urgently needs a fundamental law in the field of export control to coordinate administrative regulations and rules in that field then effective…… Read more…

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What are the proposed changes?

The Government of Ontario recently introduced Bill 213, Better for People, Smarter for Business Act, 2020 to reduce regulatory burdens and remove barriers to economic growth, opportunity and innovation. The Bill, currently in its Second Reading, proposes the following changes to the Ontario Business Corporations Act (OBCA):

  • removing the rule requiring that at least 25% of the directors on a board be Canadian residents; and
  • for private corporations, lowering the voting threshold for written resolutions passed in lieu of a shareholders’ meeting from a unanimous vote to a majority one (though only for matters that can be decided by ordinary resolution).
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Potential imminent cyber threat to hospitals and healthcare providers

The FBI and DHS-CISA have issued a warning about an imminent threat to hospitals and healthcare providers.  They have credible information to suggest that there will be a widespread Ryuk ransomware attack this weekend, and the FBI, DHS and the NSA’s Cybersecurity Threat Operations Center are currently investigating the threat.  Based on recent news and court filings, it is clear that the Trickbot malware infrastructure was recently targeted for disruption by Microsoft and the US Cyber Command.

There is a fear that the targeted healthcare entities likely already have the encryption malware on their systems, the threat actors just have not commanded it to activate.   Click to read the full article, which includes a list of measures recommended by the government for hospitals and healthcare providers.

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New Retirement Plan Limitations Announced by the IRS for 2021

On Oct. 26, 2020, the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2021 Tax Year. Changes to the limits are based upon the Social Security cost-of-living increases. Unlike last year, most of the applicable pension and retirement limitations will stay the same for the 2021 Tax Year.

Read the full alert here

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Early Resolution of Pharmaceutical Patent Disputes

In terms of relationship between patent protections and regulatory approvals for pharmaceutical products, the patent-linkage system, the patent extension rule, and the Bolar exception form a complete suite of rules balancing the interest between innovative pharmaceutical companies and generic pharmaceutical companies.  The Bolar exception was introduced into the PRC Patent Law during the amendment in 2008. However, the patent-linkage system and the patent extension have not been included in the legislative pipeline until recently. Read more…

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Are You Monitoring Your Exports Compliance?

Recent changes to the Export Administration Regulations require U.S. exporters to now file Electronic Export Information (EEI) when shipping an expanded range of items to users in China, Russia, and Venezuela. As we have seen industry and even U.S. government agency confusion and requests for guidance, we have outlined and summarized the specific changes HERE.

Based on recent questions received by some of our clients, we have also developed an EEI Guide to serve as aid and guidance as you navigate the increasingly complex EEI filing requirements. You can find this guide as well as other guides at our website under Insights ➡️ Resources ➡️ Guides section, or click HERE.

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Ohio DAS Updates and Sets New Rules for the EDGE, MBE, and WBE Programs

The Ohio Department of Administrative Services (DAS) has adopted updated rules for the State’s Minority Business Enterprise (MBE) and Encouraging Diversity, Growth, and Equity (EDGE) programs, and established rules for the new Women’s Business Enterprise (WBE) program.

With respect to the MBE program, the most notable update involves an effort to curtail front companies and pass-through entities that adversely impact legitimate MBE companies. The updated rules will require MBEs to demonstrate a commercially useful function that is actively involved in the performance of a contract. This requirement already exists for EDGE companies, but is now being expanded to MBEs.

Click here to read the entire article on the new rules updated and set by Ohio 

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Time Is Money: A Quick Wage-Hour Tip on … Regular Rate Exclusions Applicable to Year-End Bonuses

With the end of the year just around the corner, many employers may be contemplating giving year-end bonuses to their non-exempt employees. And bonuses, year-end or otherwise, can create problems for employers when it comes to calculating overtime compensation for those employees.

One mistake some employers make concerns calculating an employee’s regular rate for purposes of paying overtime premiums.  Indeed, many employers have found truth in the adage “no good deed goes unpunished” after implementing bonus policies or issuing other forms of compensation intended to reward employees, only to later discover that those payments had the unintended effect of increasing their employees’ regular rate and, thus, the overtime premiums that those employees should have received.

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California Election Day Stakes for Ride Share Companies Just Got Higher After Appellate Ruling

November 3, 2020 has been circled on the calendars of app-based ride share and food delivery companies doing business in California for many months now.  After a new ruling by the California Court of Appeal, those companies have likely gone back and circled that date a few more times in thick red ink.

On November 3, 2020, California voters will decide the fate of Proposition 22, the ballot initiative that, if passed, will allow app-based ride share and food delivery companies to treat drivers as independent contractors rather than as employees, carving them out of California’s controversial AB 5 statute.  (As we explained here, AB 5 codified and expanded the “ABC” test adopted by the California Supreme Court in Dynamex Operations West, Inc. v. Superior Court for determining whether workers in California should be classified as employees or as independent contractors.)

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CCPA Updates for Late 2020

On October 12, 2020, the California Attorney General issued its notice and third set of proposed modifications to the regulations implementing the California Consumer Protection Act (“CCPA”). These proposed modifications would change the regulations that were approved by the California Office of Administrative Law on August 14, 2020. The California Department of Justice is accepting written comments from the public on these proposed revisions to the regulations until October 28, 2020 at 5:00 p.m. PST.

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