UPDATED 3/04/2024

On March 1, 2024, a lower Alabama federal court held that the Corporate Transparency Act, which requires certain businesses to file a BOI Report with FinCEN that includes information about their beneficial owners, is unconstitutional. Importantly, this ruling DOES NOT affect the legal obligation of entities formed in California, Nevada, or Delaware (among other states) to file their BOI Report within the timeframes specified in the chart below at this time.  We are monitoring the development of this and similar court actions across the nation and will continue to provide information about them to those who have indicated a desire to receive this information from us.

ORIGINAL NOTICE 2/20/2024

The Corporate Transparency Act (“CTA”), a new federal filing requirement for many business entities, became effective on January 1, 2024.  The CTA was enacted as part of the Anti-Money Laundering Act of 2020 to provide Federal and State enforcement agencies with more comprehensive information about small and shell companies to help control money laundering and terrorist financing activities.  The database of information provided by the CTA Reports will not be available to the general public but will be accessible by Federal and most states’ criminal and financial law enforcement agencies.Continue Reading Important Notice Regarding the Corporate Transparency Act Filing Requirements (Update 3/1/2024)

In December 2023, the California Civil Rights Department (“CRD”) filed the first-of-its-kind lawsuit under the California Fair Chance Act (“Act”) against Ralphs Grocery Store (“Ralphs”) in the Los Angeles County Superior Court.Continue Reading First Lawsuit Under CA’s Fair Chance Act Filed Against Ralph’s Grocery Store: A Message for CA Employers to Comply

New laws in 2024 expand workplace protections for employees regarding their current and past cannabis use. Nikki Mahmoudi and Tomiwa Aina review these changes, previewed in our 2024 Employment Law Update seminars, in this episode of California Employment News.Continue Reading California Employment News: Expanded Workplace Protections Regarding Cannabis Use

Last October, California Governor Gavin Newsom signed AB 1076 into law and it became effective as of January 1, 2024.  AB 1076 was the Legislature’s attempt to codify the California Supreme Court’s 2008 decision, Edwards v. Arthur Anderson LLP, which held that non-compete agreements in the employment context are unenforceable unless they fall within one of the three narrow statutory exceptions dealing primarily with the sale of business interests.  AB 1076 makes clear that requiring an employee to enter into a non-compete is unlawful and can subject the employer to penalties of up to $2,500 per violation.Continue Reading Employers Beware: The Deadline to Comply with Notification Requirement of California’s New Non-Compete Law is Rapidly Approaching!

Long-time blog readers and CEN watchers will recall that for the last several years, we have been watching several cases discussing whether Private Attorneys General Act (“PAGA”) claims may be stricken as unmanageable. First, in the Fall of 2021, an appellate court determined that trial courts have inherent authority to strike or limit PAGA claims that could not otherwise be made manageable in order to “preserve judicial resources [and to] prevent trials from becoming excessively complex and time-consuming.” (See Wesson v. Staples the Office Superstore, LLC (2021) 68 Cal.App.5th 746). Just a few months later, a different appellate court disagreed, concluding that while a court may limit the presentation of evidence to ensure a manageable trial, courts had no authority to strike or limit PAGA claims due to unmanageability. (See Estrada v. Royalty Carpet Mills, Inc. (2022) 76 Cal. App. 5th 685.)Continue Reading California Supreme Court Determines PAGA Cases May Not be Dismissed Due to Issues of Manageability