Legal Updates

FTC Signals New Action on Noncompetes – But Is That the Will of the People?

According to a report in the Wall Street Journal last week, the Federal Trade Commission is considering new regulations to prohibit the use of noncompetes and to target their use in individual cases through enforcement actions. Although President Biden issued a vague Executive Order early in his administration that “encourage[d]” the FTC to “consider” exercising its statutory rulemaking authority “to curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility,” no concrete action has been taken to date. That is not entirely surprising given that, until last month, the Commission was split 2-2 along partisan lines. What has since changed that may now make federal noncompete regulation a real possibility, however, is the appointment last month of Alvaro Bedoya to the FTC, giving the Democrats a 3-2 majority.

Lina Khan, the 33-year-old Biden-appointed Chair of the FTC, told the Wall Street Journal, “We feel an enormous amount of urgency given how much harm is happening against the workers. This is the type of practice that falls squarely in our wheelhouse.” Other Commissioners disagree. Commissioner Noah Phillips has said the agency doesn’t have legal authority to impose such rules, and Commissioner Christine Wilson said last year it was “premature” to pass a federal rule because many states had taken their own actions to address noncompetes. Indeed, noncompete regulation has been the province of the states for over 200 years.

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How the New 2022 SAG-AFTRA Commercials Contract Affects Performers and Advertisers

A new collective bargaining agreement governing the use of SAG-AFTRA (the Union) performers in commercials has been reached between the Union and the Joint Policy Committee (JPC).The new 2022 SAG-AFTRA Commercials Contract (the 2022 Contract), which is retroactively effective to April 1, 2022, appears to offer certain benefits to advertiser and agency signatories of the Commercials Contract, particularly JPC authorizers, as well as Union member performers. Read more…

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Draft CPRA Regulations Issued by the California Privacy Protection Agency

The California Privacy Protection Agency (CPPA) released a working draft of regulations to the California Privacy Rights Act (CPRA) late last month (the Regulations). The 66-page document, which is structured as a redlined version of the existing California Consumer Privacy Act (CCPA) regulations, proposes new and revised definitions, extensive new personal information notice and collection requirements, rules for obtaining consumer consent, restraints around sharing or selling personal information to third parties, consumer opt-out request confirmations, and more. Read more…

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Katherine Duchesne Joins RSS’s Insurance Law Group

RSS is happy to announce that Katherine Duchesne, a litigator, is now part of the firm’s Insurance Law Group. Katherine’s background is quite original, since she holds a Bachelor of Law degree from the University of Leicester, in the UK. She then completed her education in Quebec law at the University of Montréal.

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Video: Return-to-Work Behavior Policies, U.S. Soccer’s Landmark Agreement, and Board Diversity in California – Employment Law This Week

As featured in #WorkforceWednesday:  This week, we look at a range of recent anti-harassment and gender equity updates from across the country.

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Another California Board Diversity Statute Struck Down in Court: Appeal to Be Filed

For the second time this spring, a California statute designed to promote diversity in corporate boardrooms was blocked by a state judge. On May 13, 2022, in Crest v. Padilla I (Los Angeles Superior Court Case No. 19STCV27561) (Crest), Los Angeles Superior Court Judge Maureen Duffy-Lewis ruled that California Corporations Code Section 301.3 (SB 826), which requires publicly listed corporations in California to have women on their boards, violates the Equal Protection Clause of California’s Constitution. California Secretary of State Shirley N. Weber has since announced plans to appeal the decision, stating that “SB 826 was passed not to remove men from the boardroom, but simply to make room for highly qualified women who have been excluded from the corporate board selection process for decades.”

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La protection des biens affectés à l’utilité publique qui appartiennent aux municipalités

Only available in French

Il est connu que les municipalités bénéficient de la dualité démoniale. En ce sens, les biens de la municipalité font partie soit de son domaine privé ou soit de son domaine public. La distinction est importante puisque les biens de la municipalité affectés à l’utilité publique font partie de son domaine public et sont, de ce fait, insaisissables (art. 916 du Code civil du Québec) (ci-après « C.c.Q »).

Si on ajoute aux dispositions législatives ci-haut mentionnées celles prévues à l’article 2668 du C.c.Q., les biens de la municipalité insaisissables ne peuvent être grevés d’une hypothèque légale ou conventionnelle.

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Federal Trade Commission issues new and expansive guidance on data breach notification

The Federal Trade Commission has issued new guidance explicitly stating it now interprets the Federal Trade Commission Act as imposing consumer data breach notification obligations. Notably, unlike state data breach notification laws already in effect, the guidance does not specify particular data points that would trigger a notification obligation if compromised. Rather, the guidance imposes notification obligations when a compromise of any data would “increase the likelihood that affected parties will suffer harm.” Read more…

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Welcome to the Metaverse: Legal Issues Marketers Need To Consider

Since the concept of the “metaverse” was widely introduced to the public in 2021, it seems as though every day brings news of another company, brand, celebrity or product trying to establish a foothold in this digital space.Clearly not a passing fad, the metaverse is rapidly shaping up to become a multidisciplinary and multi-sensory venue where new methods of interaction, community-building and self-expression can be found. It has already featured powerhouse pop stars’ performances at hugely successful concerts on Roblox; opportunities for the fashion-forward to flex rare non-fungible tokens (NFTs) minted by luxury brands in Fortnite; and, in Decentraland, beer-brand-sponsored virtual bars where consumers’ avatars can enjoy a cold one while watching the big game. Read more…

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U.S. to the International Corporate World: Violations of Russia Sanctions Are Our Top Priority

Now more than ever, U.S. and multinational companies must do everything they can to ensure strict compliance with international sanctions imposed on Russia, Belarus, and individuals linked to those governments.

That’s because the U.S. Department of Justice (“DOJ”) has made it clear that, after generally stepping up its efforts to fight white-collar crime, it is turning its attention to identifying and preventing Russia sanctions evasion and export violations: Read more…

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