A recent federal court decision underscores a critical point for parties seeking to enforce foreign judgments in the U.S.: recognition of a foreign judgment does not require personal jurisdiction over the defendant. The U.S. District Court for the Southern District of New York recognized a $123.94 million English judgment against a Ukrainian businessman, despite his lack of ties to New York. This ruling reaffirms that judgment creditors can gain access to U.S. discovery tools—among the most expansive in the world—before establishing jurisdiction over a debtor or its assets. With similar judgment recognition laws in many other U.S. states, this decision may influence courts nationwide and shape future cross-border enforcement strategies.

On March 3, 2025, a Michigan federal district court in Small Business Association of Michigan v Yellen, Case No. 1:24-cv-413 (W.D Mich 2025) (SBAM), held that the CTA’s reporting rule is unconstitutional under the Fourth Amendment (unreasonable search) and entered a judgment permanently enjoining the enforcement of the CTA reporting requirements against the named plaintiffs and their members only. The district court did not find it necessary to, and did not, rule on the plaintiffs’ separate Article 1 and Fifth Amendment constitutional claims, instead leaving them “to another day, if necessary.” 

On March 2, 2025, the United States Department of Treasury announced that it will not enforce fines or penalties based on the existing deadlines for reporting beneficial ownership information under the CTA beneficial ownership reporting rule. This follows earlier guidance issued by FinCEN.

International automotive supply chains often involve tight just-in-time deadlines, so resolving disputes quickly and efficiently is critical. When arbitration is the designated resolution method, the arbitrator’s qualifications and experience can significantly affect the speed, fairness, and effectiveness of the process. Choosing an arbitrator with relevant industry expertise and strong procedural management skills can help minimize business disruptions and financial risks. 

The U.S. Financial Crimes Enforcement Network announced that it intends to issue an interim final rule by March 21, 2025, with extended beneficial ownership information reporting deadlines. It will not issue penalties or otherwise enforce failure to file initial or updated reports until the new interim final rule becomes effective.

The U.S. Department of State has changed the categories of applicants that are eligible to waive the in-person non-immigrant visa interview appointment when applying for a non-immigrant visa stamp for travel to the United States. More applicants must now attend an in-person interview appointment.   

Just as the Michigan Earned Sick Time Act was set to go into effect on February 21, 2025, the Michigan Legislature came to an agreement to revise the Act. The Bill (HB 4002) was promptly signed by Governor Whitmer and became effective February 21. The Act still provides guarantees to Michigan workers for paid sick time while also providing employers with improved flexibility in implementing their paid sick time policies. There are, however, several changes in the revised Act compared to its prior iteration of which employers should be aware. 

The Corporate Transparency Act reporting requirements are back in effect following a Texas district court decision entered on February 18. According to the Financial Crime Enforcement Network (FinCEN), the new general deadline for most reporting companies filing initial, updated, and corrected BOI reports is March 21.

The United States Tax Court skillfully dodged answering the headline question with a holding on standing. The court decided, however, that IRS appeals officers and IRS appeals team managers are not officers of the United States and therefore do not need to be constitutionally appointed.

The IRS issued Proposed Regulations last month which provide helpful clarity for employers on how to implement and comply with two new SECURE 2.0 provisions relating to catch-up contributions.

It is that time of the year again – H-1B CAP registration is right around the corner. With the continued beneficiary-centric selection process, and the new H-1B modernization rule which impacts H-1B CAP filings, employers should prepare now.

Every three years on April 1, the dollar amounts in the Bankruptcy Code are adjusted to account for inflation. The April 1, 2025, increase will be approximately 13.2%, even larger than the nearly 11% increase three years ago.

On January 20, 2025, President Trump signed an executive order Declaring a National Emergency at the Southern Border of the United States. This executive order allows for the use of federal funding for border security and the deployment of armed resources to the region. The following day, the DHS issued a directive rescinding the Biden administration’s policy which restricted immigration enforcement near sensitive locations (such as at churches, schools, and hospitals). Since this directive was implemented, employers should be prepared to handle ICE immigration enforcement actions or inspections at these locations as ICE raids are not announced in advance.

On February 1, 2025, President Trump declared a national emergency based upon the threat posed by undocumented foreign workers and drugs entering the United States. The White House has published a fact sheet outlining steps to address the threat by implementing (i) a 25% additional tariff on imports from Canada and Mexico, (ii) a 10% additional tariff on imports from China, and (iii) a carveout for a lower 10% tariff for energy resources from Canada.

On February 3, 2025, President Trump announced that he agreed to delay imposing the additional 25% tariff on Mexican products for 30 days after Mexican President Claudia Sheinbaum promised to send soldiers to the US-Mexican border to help stop the flow of fentanyl and migrants into the United States. Similarly, after finishing a conference call this afternoon with President Trump, Canadian Prime Minister Justin Trudeau announced that President Trump agreed to delay imposing the additional 25% tariff on Canadian imports for 30 days in consideration for Canada implementing a $1.3 billion border plan to reinforce the border to stop the flow of fentanyl, including appointing 10,000 frontline personnel and appointing a “Fentanyl Czar.”

As part of its “America First Trade Policy,” the White House is exploring an arcane IRS provision that allows the United States to double the tax rates of foreign companies and individuals.

For years, one of the world’s most popular online video games, Fortnite, profited from in-game purchases that, according to the Federal Trade Commission, were unlawful and deceptive.

Taxpayers whose tax returns the IRS examines may experience long administrative delays in working with the IRS to resolve unagreed issues. About twenty years ago, the IRS developed a procedure – fast track settlement – to accelerate resolution. The IRS recently made three refinements to the procedure that may increase its attractiveness for some taxpayers.

U-Haul International filed suit against Public Storage arguing for Public Storage’s continued use of the color orange and the word “orange” in connection with its self-moving and storage business. The lawsuit arises from a cease-and-desist email sent by Public Storage, alleging that use of the color orange caused consumer confusion and infringed on Public Storage’s trademark rights to the color orange.

On January 2, 2025, the U.S. Department of the Treasury’s Final Rule on outbound investment screening became effective. The Final Rule implements Executive Order 14105 issued by former President Biden on August 9, 2023, and aims to protect U.S. national security by restricting covered U.S. investments in certain advanced technology sectors in countries of concern. The Final Rule targets technologies and products in the semiconductor and microelectronics, quantum information technologies, and artificial intelligence (AI) sectors that may impact U.S. national security.

Color trademarks have traditionally been difficult to obtain. Of the over 4 million trademark registrations, there were less than 1000 color trademarks as of 2019.[1] To be eligible for trademark registration, a color must have acquired distinctiveness and must not be functional. Recently, the Federal Circuit examined the functional component of the analysis and explained why it presents such a hurdle to registration—particularly when a party also obtains patent protection.

Whether, and the extent to which, a plan fiduciary can consider nonpecuniary environmental, social and governance (“ESG”) objectives in selecting plan investments has been a hot-button issue for many years, with the view on such practices tending to swing back-and-forth with each new administration.

Taxpayers had mixed success in two recent research credit cases in the United States Tax Court.

Can parents legally agree to financially protect third parties from claims arising from their children’s injuries? In MK v. Auburnfly, LLC, (No. 364577, 2024 WL 5148278, Dec. 17, 2024), a published opinion, the Michigan Court of Appeals said no.

Late in the day on December 26, 2024, the United States Court of Appeals for the Fifth Circuit reinstated a nationwide injunction staying enforcement of the Corporate Transparency Act and its reporting rules and regulations. The panel that will be ruling on the merits of the federal government’s underlying appeal decided to continue the nationwide injunction to “preserve the constitutional status quo” (i.e., protect any potential constitutional rights) while it examines the parties’ legal arguments more closely.

On December 23, 2024, in Texas Top Cop Shop, Inc. v. Merrick Garland, Civil Action No.4:24-CV-478 (5th Cir. 2024), the Fifth Circuit Court of Appeals lifted a nationwide preliminary injunction and stay of the U.S. Corporate Transparency Act (CTA) and implementing Reporting Rule, as issued on December 3, 2024, by the U.S. District Court for the Eastern District of Texas. On the same day, the Financial Crimes Enforcement Network of the U.S. Department of the Treasury (FinCEN) published an Alert entitled “Updates to Beneficial Ownership Information Reporting Deadlines – Beneficial Ownership Information Reporting Requirements Now in Effect, with Deadline Extensions,” extending certain previously applicable reporting deadlines.

During the 2024 U.S. presidential campaign, President-elect Donald Trump promised to impose a variety of new tariffs. President Trump may seek to immediately apply levies of up to 20% on all imports, 25% on items from Mexico and Canada, and 60% on items from China. To mitigate some effects of the additional tariffs, many importers have already started to evaluate the applicability of well-known methods to avoid, exclude, delay, or recoup the expected tariffs.

A potential refund opportunity under the Michigan corporate income tax may justify taking action before year end. The issue concerns the Michigan Department of Treasury’s position that the Internal Revenue Code 163(j) interest expense limitation must be calculated on a separate entity basis rather than a unitary group basis, a position which Miller Canfield is challenging on behalf of several clients. The limitation period for refunds for tax year 2019 for most companies will expire on December 31, 2024, and therefore time is of the essence to protect the right to recover overpaid taxes for that year.

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction temporarily enjoining the Corporate Transparency Act (CTA), 31 U.S.C. §5336 and its implementing Reporting Rule, 31 C.F.R. 1010.380. The court also stayed the January 1, 2025 compliance deadline.

During his 2024 presidential campaign, President-elect Donald Trump promised to impose a variety of new tariffs, even without congressional approval. But can a president really levy such tariffs without congressional consent?

The Gift and Estate Tax Exclusion is currently scheduled to be reduced by approximately 50% in about 13 months.  Without action from Congress, on January 1, 2026, the Exclusion will go from almost $14 million to about $7 million.  But with Republicans taking over the presidency, House and Senate in 2025, the increased Exclusion could be extended.  For families with more than $14 million, this legal uncertainty creates gift planning uncertainty.

The United States Patent and Trademark Office ("PTO") has issued its Final Rule adjusting filing fees at all stages of the trademark application and maintenance filing process. The new fees will take effect on January 18, 2025.

The United States Patent and Trademark Office (USPTO) has issued its Final Rule with adjusted filing fees at all stages of patent and trademark application filings through maintenance fees. The fee increases will take effect on January 19, 2025.

On November 15, 2024, the United States District Court for the Eastern District of Texas blocked the Department of Labor’s 2024 Rule that would have expanded entitlement to overtime wages for millions of American workers. The decision to vacate and remand the rule back to the department for further consideration applies nationwide. 

HB 5100 and HB 5101, as passed by the Michigan House of Representatives and Senate, and to be signed by Governor Gretchen Whitmer, provide a new income tax credit. For tax years beginning on and after January 1, 2025, Michigan will allow an income tax credit for qualifying research and development expenses incurred in the calendar year.

Can employers force workers to sit through a meeting where its (critical) views of unionization are presented to dissuade them from joining a union? The National Labor Relations Board ruled that mandating employees to attend these so called “captive-audience meetings” violates Section 8(a)(1) of the National Labor Relations Act (NLRA). This decision, resulting from a case involving Amazon’s mandatory anti-union meetings at its Staten Island facilities, overturns a significant 1948 ruling that had previously permitted companies to hold mandatory gatherings to present opposing perspectives on union formation, justified by Section 8(c) of the NLRA, which protects employers’ right to express opinions.

The Internal Revenue Service recently announced the 2025 cost of living adjustments for the estate and gift tax exclusion amounts.

In Grigsby v. United States, the Justice Department used discovery procedures in federal district court essentially to audit a taxpayer’s federal income tax credits for research activities. The court found that the taxpayer was not entitled to the credits, the U.S. Court of Appeals for the Fifth Circuit affirmed, and the Supreme Court denied certiorari.

On Nov. 1, 2024, the IRS published its annual cost of living adjustments for various retirement plan limits. These increases are more modest than recent years, a reflection that inflation is slowing.

On October 21, 2024, the Securities and Exchange Commission’s Division of Examinations released its 2025 examination priorities. The examination priorities are published annually by the Division to inform investors and registered investment advisers (RIAs), among others, about potential capital market risks and the Division’s examination focus areas for the upcoming year.

Earlier this week, the IRS released Notice 2024-77, which provides much-anticipated guidance related to the handling of so-called “inadvertent benefit overpayments” from qualified retirement plans under the SECURE 2.0 Act.  The Notice provides information on whether and when a plan sponsor is obligated to attempt to recoup an inadvertent benefit overpayment from the IRS’ perspective, as well as guidance on the rollover treatment of inadvertent benefit overpayments. 

The IRS recently issued Notice 2024-73, which provides much-needed guidance on long-term, part-time employees in ERISA-governed 403(b) retirement plans. Following passage of the SECURE 2.0 Act, an employee is generally considered a LTPT employee if he or she works at least 500 hours per year for two consecutive years.

The U.S. Court of Appeals for the Eleventh Circuit held that a monetary civil penalty imposed for willfully failing to file a foreign bank account report (“FBAR”) was a “fine,” and had to be evaluated for excessiveness under the Excessive Fines Clause of the Eighth Amendment. The Eleventh Circuit held that the penalty was a fine because it did not have a “remedial” purpose that compensated the United States for expenses or loss. Two years earlier, the First Circuit held that a monetary civil penalty imposed for willfully failing to file an FBAR report was not a “fine” and did not have to be evaluated for excessiveness under the Excessive Fines Clause of Eighth Amendment. Final resolution of the issue will require action by Congress or the Supreme Court.

The United States Trade Representative published a Federal Register notice detailing its final modifications to the Section 301 tariffs on China-origin products. USTR has largely retained the proposed list of products subject to Section 301 tariffs announced in the May 2024 Federal Register notice with a few modifications, including adjusting the rates and implementation dates for a number of tariff categories and expanding or limiting certain machinery and solar manufacturing equipment exclusions. USTR also proposes to impose new Section 301 tariff increases on certain tungsten products, polysilicon, and doped wafers.

In Libitzky v. United States, the United States Court of Appeals for the Ninth Circuit affirmed disallowance of a $700,000 federal income tax refund claim. The court said that this was an “unfortunate” case, but they were bound by the statutory language providing for tax refunds, which did not permit equitable tolling of a limitation period.

In a highly anticipated opinion, the United States District Court for the Northern District of Texas invalidated the FTC’s rule banning most non-compete agreements, opining that the FTC exceeded its authority in promulgating the rule and that the rule is arbitrary and capricious. This decision blocks the rule from becoming effective nationwide on September 4, 2024. As a result, existing non-compete agreements may still be valid and enforceable when permitted under applicable law.

The Michigan Supreme Court revived two 2018 voter-initiated laws aimed at increasing the state’s minimum wage and expanding earned sick time for workers. In doing so, the Court held that the Michigan Legislature’s “adopt-and-amend” process—adopting the initiatives and then in the same session significantly altering them—“violated the people’s constitutionally guaranteed right to propose and enact laws through the initiative process” under the state constitution. The decision has major implications for Michigan’s workplaces, especially considering the revived laws, with some adjustments explained below, will go into effect February 21, 2025.

Can a student harassed by another student bring a lawsuit against the school for allegedly creating a hostile environment under state law? On July 29, 2024, the Michigan Supreme Court answered no. The decision underscores the distinction between employer-employee relationships and the responsibilities schools bear in such cases.

The rules relating to delegated authority are complex. A taxpayer is well advised to ensure that the scope of a closing agreement the taxpayer signs is what the taxpayer expects, and that an IRS official who signs the agreement has authority to do so for the matters in the agreement

On August 1, 2024, the National Labor Relations Board is set to roll out its Fair Choice-Employee Voice Rule, which includes three major changes. The effective date of the new rule is September 30, and the rule will only be applied to cases filed after the effective date. Court challenges to the Final Rule are anticipated.

In 2021, a group of citizen advocacy groups sued the State of Michigan and the Attorney General arguing that the Michigan Legislature’s “adopt and amend” maneuver was unconstitutional, as it circumvented the voters' ability to create policy through ballot initiatives. The case is now before the Michigan Supreme Court, where the current session ends July 31, 2024. If the Michigan Supreme Court reverses the Court of Appeals and strikes down the adopt-and-amend strategy, its decision will have significant implications for employers, as the minimum wage could increase substantially, and new paid sick leave requirements could be imposed.

In Michigan, various state employment laws prohibit employers from retaliating against employees. But can an employee pursue a public policy retaliation claim against the employer in addition to a statutory retaliation claim? On July 22, 2024, the Michigan Supreme Court ruled that anti-retaliation provisions in two important workplace safety laws—the federal Occupational Safety and Health Act and Michigan’s Occupational Safety and Health Act—do not preclude a plaintiff from also asserting a violation of public policy in court.

The United States Department of Labor issued a Field Assistance Bulletin on Artificial Intelligence and Automated Systems in the Workplace under the Fair Labor Standards Act and Other Federal Labor Standards. In light of employers’ increasing use of artificial intelligence and other automated systems in the workplace, the bulletin provides guidance regarding the application of the FLSA, FMLA, nursing employee protections, and the Employee Polygraph Protection Act.

At issue in Continuing Life Thousand Oaks, LLC. v. Commissioner, affirmed May 21, 2024, was the year of inclusion in gross income of an income item. The disputed years were 2008, 2009, and 2010 -- taxable years that preceded the effective date of the Tax Cuts and Jobs Act of 2017. For these taxable years, an item was included in gross income of an accrual method taxpayer if all events established the right to the income item and the amount of the inclusion could be determined with reasonable accuracy. With enactment of the Tax Cuts and Jobs Act, the analysis of inclusion for taxpayers having applicable financial statements changed.

The Internal Revenue Code generally discourages retirement plan participants from requesting distributions from their retirement plan funds prior to age 59 ½ by imposing an additional 10% tax on those distributions. However, the Code outlines several permissible exceptions to this rule under which a participant could request a distribution prior to age 59 ½ and not be subject to the additional 10% tax.

On June 28, 2024, the Supreme Court issued a significant decision that could have wide-ranging consequences for administrative agency enforcement actions. In Securities and Exchange Commission v. Jarkesy, the Court held that the SEC cannot impose civil penalties for violations of the securities laws’ antifraud provisions through in-house administrative proceedings.

The Uniform Power of Attorney Act takes effect on July 1, 2024; it repeals and replaces the durable power of attorney provisions in the Estates and Protected Individuals Code. Michigan now joins 30 other states and the District of Columbia in adopting a version of this unified framework, which provides significantly more guidance on the procedures, powers and limitations applicable to financial powers of attorneys in Michigan. The UPOAA contains 47 separate statutes all relating to financial powers of attorney, whereas EPIC only contained five.

By reversing 40 years of case law, the decision will have a broad ripple effect through the federal regulatory world. Companies that have relied on a federal agency's interpretation of applicable federal statutes should reassess their reliance and companies that are constrained by such interpretations may have a new basis to challenge them.

On June 27, 2024, the United States Supreme Court issued its long-awaited opinion in Harrington v. Purdue Pharma L.P., holding that the Bankruptcy Code does not permit nonconsensual releases of nondebtors.

The U.S. Court of Appeals for the Sixth Circuit has ruled that the waiver of a State's immunity under Title V of the Americans with Disabilities Act (ADA) is unconstitutional. This ruling permits a State to defend a Title V claim under the ADA by asserting immunity.

On Friday, June 21, 2024, the SBRA debt limit reverted from $7,500,000 to $3,024,725 in noncontingent, liquidated debt. Debtors with more than this amount of debt do not qualify to file a bankruptcy case under the SBRA, though they may still file traditional chapter 11 bankruptcy cases. The chapter 13 debt limit also changed.

In criminal cases, oftentimes the most significant element in dispute is whether the defendant harbored the intent to “knowingly” or “willfully” violate the criminal law at issue.  If the defendant denies that he knew what he was doing was illegal, the government must prove beyond a reasonable doubt that the defendant had the required mens rea — or mental state — to violate the law.  The government does this by presenting circumstantial evidence that it argues supports a reasonable inference that the defendant had the required mental state to violate the law.  And defense lawyers test that evidence largely on cross examination and by presenting counterevidence. 

In November 2023, the Government of Ontario passed Bill 149, the Working for Workers Four Act, 2023. The Act places new obligations and prohibitions on employers, and intends to strengthen Ontario’s employee entitlements and workers’ compensation benefits.

Arbitration is supposed to be faster and more economical than litigation. But arbitration is often accompanied by proceedings in court. Recent U.S. Supreme Court decisions leave federal jurisdiction over proceedings to confirm, vacate or modify an arbitration award unsettled, potentially increasing complexity and delay.

The United States Patent and Trademark Office is facing vigorous backlash to its proposal to change terminal disclaimer practice used in patent applications and, not so subtly, discourage the use of continuation applications. Since the Notice of Proposed Rulemaking was issued in May, more than 90% of the public comments to date are strongly opposed, and five former USPTO Directors, Deputy Directors and Patent Commissioner called on the USPTO to pull the NPRM immediately, arguing that the “proposed rules provide perverse incentives and threaten serious harm to America’s innovation economy.”

The Department of Labor recently issued a regulatory package that includes a final rule updating ERISA's definition of an investment advice fiduciary and amending certain related prohibited transaction exemptions. This is the DOL's third attempt to modernize the definition of an investment advice fiduciary to more completely reflect the modern retirement plan landscape. The regulatory package is generally effective September 23, 2024, with some parts of the PTE amendments being gradually phased in and fully effective September 23, 2025. 

Importers must act swiftly to prepare for new Section 301 tariffs which can apply as soon as August 1, 2024, and for exclusions that expire as soon as June 14, 2024. As predicted, the United States Trade Representative (USTR) issued a proposal for the timing of new Section 301 tariffs on Chinese products in certain strategic sectors. Interested parties may submit comments and seek future exclusions through June 28, 2024.

When there are two conflicting contracts—one requiring a court to address whether a case should be decided by arbitration or court action, and another requiring an arbitrator to address that issue—who decides which contract controls? The U.S. Supreme Court answered this question in Coinbase, Inc v Suski. 

As Michigan public schools prepare their 2024-2025 budgets, schools should be aware of the short-term borrowing options available to cover their projected operating cash-flow shortfalls.  

A group of national business associations filed a lawsuit seeking to prevent the U.S. Department of Labor from implementing its new Final Rule on overtime, which significantly increases the annual salary threshold required to classify employees as exempt under the Fair Labor Standards Act.

In Meyer, Borgman, and Johnson, Inc. v. Commissioner, the Tax Court found that customers funded MBJ's research activities, with the consequence that MBJ could not claim federal income tax credits for expenses it incurred to conduct research activities.

The U.S. Department of the Treasury and IRS published final regulations regarding clean vehicle tax credits under Internal Revenue Code sections 25E and 30D established by the Inflation Reduction Act of 2022. Among other important guidance, the Treasury regulations finalized its rules on Foreign Entity of Concern restrictions regarding the section 30D tax credit.

On May 16, 2024, the United States Supreme Court in Smith v. Spizzirri addressed whether district courts are required to stay a lawsuit pending arbitration, or if they have the discretion to dismiss the suit when all the claims are subject to arbitration. The Court held that when a district court finds a case involves an arbitrable dispute and a party has requested a stay of the case pending arbitration, Section 3 of the Federal Arbitration Act compels the court to issue a stay and the court does not have discretion to dismiss the case.

Importers must begin to prepare for another round of Section 301 tariffs on China-based products, as President Biden and the United States Trade Representative (USTR) will seek to take further action on China tariffs resulting from the statutory four-year review process. As of May 2, 2024, the Section 301 tariffs on China-based products have resulted in an estimated $215.28 billion in duties collected from importers.

The U.S. Supreme Court held the Copyright Act entitles a copyright owner to obtain damages for a timely infringement claim, even if the infringement occurred prior to the Copyright Act's three-year statute of limitations.

“Third party” or “associational” retaliation is reprisal taken by an employer against someone other than the person who engaged in “protected conduct.” In 2011, the U.S. Supreme Court ruled that Title VII’s anti-retaliation provision covers third-party retaliation claims even though the statute does not explicitly recognize such a theory. On May 10, 2024, the Michigan Supreme Court followed suit, endorsing the theory of third-party retaliation claims under Michigan’s anti-discrimination law, the Elliott-Larsen Civil Rights Act.

The National Labor Relations Board recently held that an employer’s proposal and adherence to proposals could in itself be deemed to be unlawful bad faith bargaining.

Earlier this year, the Haas F1 Team announced it would compete in the 2024 Formula One Championship without the leadership of its former principal Guenther Steiner. Following this separation, Steiner sued his former team for unpaid commissions and unauthorized use of his name and likeness. Now, the team’s sponsor, Haas Automation, Inc., has sued Steiner for allegedly infringing the company’s trademarks with the sale of his book “Surviving to Drive.”

On April 23, the Federal Trade Commission adopted a near-total ban on noncompete agreements, with limited exceptions. The following day, the U.S. Chamber of Commerce and other business groups sued, seeking to block the rule from taking effect. Unless it is enjoined, the FTC rule will become effective 120 days from the date it is published in the Federal Register.

The Department of Labor announced the final version of a rule that will significantly increase the annual salary threshold required to classify employees as exempt under the Fair Labor Standards Act. Although the rule will not change the job duties test under current regulations for administrative, executive, and professional employees, it provides for a stepped set of increases of the minimum salary requirement from the current level of $684 per week ($35,568 per year) to $844 per week ($43,888 per year), affecting approximately 1 million workers.

On April 19, 2024, the United States Department of Education’s Office for Civil Rights issued its long-awaited and lengthy Final Title IX regulations. The 2024 Final Rule requires that all educational institutions that receive federal funds that have knowledge of conduct that reasonably may constitute sex discrimination in their educational programs or activities must respond promptly and effectively to address that conduct. The 2024 Final Rule, which takes effect on August 1, 2024, includes significant changes from the 2020 regulations and feature largely the same core principles contained in the Department’s 2022 draft rules.

Two of the busiest airports in the United States are battling with their smaller counterparts to retain trademark rights in the name of the major cities the airports serve. While the smaller airports want to capitalize on using big city names, the federal trademark-holding larger airports are fighting hard to prevent that, arguing it will sow confusion among travelers. These cases highlight the importance of considering whether an applicant’s proposed mark may be confusingly similar with existing registrations.

Federal law prohibits employers from relying on certain protected statuses (race, color, religion, sex, or national origin) when making employment decisions. Lower courts have required employees suing employers to point to a materially adverse harm caused by the alleged employer discrimination. But is a forced transfer of an employee to another department—with no loss of pay or rank—an “adverse employment” decision? On April 17, 2024, the U.S. Supreme Court ruled 9-0 in the affirmative. 

The Federal Trade Commission and United States Department of Justice recently released new guidance on preservation of electronically stored information from ephemeral messaging tools and collaboration platforms like Slack, Microsoft Teams and Signal. These updates make clear that in future enforcement matters, the DOJ and FTC will be requesting information about which messaging applications, both ephemeral and non-ephemeral, are used within companies.

Over an objection by the IRS, the Tax Court recently ruled that it could limit discovery and permit statistical sampling of voluminous data related to a claimed research credit. The court refused, however, to protect the taxpayer from a burdensome demand by the IRS for production of information about every item in a population of 2,000 to 3,000 from which a statistical sample would be drawn.

When has a party waived its contractual right to arbitrate? Until recently, most federal Courts of Appeal—including the Sixth Circuit— held that a party who participates in litigation (e.g., by serving and responding to discovery, conducting depositions, and so on) has not waived its right to arbitrate unless there was prejudice to the opposing side.

In a rare published decision, the Michigan Court of Appeals enforced a provision in an auto lease that allowed either party to demand arbitration, even though the dealer had assigned the lease to a finance company and no longer owned the lease, and even though plaintiff argued that his claim did not involve the lease agreement.  

Michigan law provides several borrowing options for school districts to cover operational cash-flow shortfalls during a school year. We have prepared a summary of these borrowing options.

Employers with candidates who require initial H-1B employment authorization should plan to submit a registration for those candidates when the H-1B electronic registration period opened on March 6, 2024. The electronic registration period has been extended to 12 p.m. EST on March 25, 2024. During this period, employers may submit registrations for any employees they wish to sponsor for initial H-1B employment authorization.

On February 21, 2024, the IRS announced plans to increase funding under the Inflation Reduction Act to audit the use of corporate aircraft by large corporations, partnerships, and high-income individuals. 

The European Union recently passed a sweeping law regulating corporations and business leaders with respect to artificial intelligence. The first legislation of its kind, the EU Artificial Intelligence Act seeks to impose legal and ethical standards on companies that develop and use AI. While the act does not impose legal obligations on organizations that operate exclusively in the United States, it will serve as a harbinger and potential model for AI restrictions that may one day be passed by the U.S. Congress and state legislatures.

Congress perhaps made an unintended drafting error in the Tax Cuts and Jobs Act when it required a taxpayer to decrease its deduction for research and experimental expenditures. The apparent drafting error is in IRC §280C(c)(1), which provides that if a taxpayer’s research credit for a taxable year exceeds the amount allowable as a deduction for research expenditures for the taxable year, the amount of research expenses chargeable to capital account must be reduced by the excess and not by the full amount of the credit.  

In 2022, Congress passed the Bankruptcy Threshold Adjustment and Technical Corrections Act, raising the debt limits for bankruptcy cases under the Small Business Reorganization Act and under chapter 13, making more debtors eligible for relief under these provisions of the Bankruptcy Code. The increases were temporary and will revert to lower values in June unless Congress extends them or makes them permanent. This significant change could affect the eligibility of businesses seeking bankruptcy protection and may create a surge in bankruptcy filings before the deadline.

The United States District Court of the Eastern District of Texas has struck down the 2023 NLRB regulations defining joint employer status, opining that they were overbroad and could allow a finding of joint employer status even when the putative joint employer did not meet the common law definition of an employer. 

Unscrupulous promotors caused many taxpayers to file claims for the Employee Retention Credit even when they did not qualify. As a result, the IRS views claims for this credit with suspicion and has created several programs allowing taxpayers to withdraw their claims without penalty. In conjunction with this this approach, the IRS has now begun sending letters to taxpayers who have claimed the Employee Retention Credit requesting additional evidence supporting the claim.

On March 1, 2024, an Alabama federal court declared the Corporate Transparency Act (CTA) unconstitutional—but only enjoined its enforcement as to the specific litigants.

Concerns that the Supreme Court's opinion in MOAC Mall Holdings LLC v Transform Holdco LLC may affect property sales in bankruptcy cases have been put to rest following a recent Fifth Circuit opinion that stated Section 363(m) is alive and well and continues to bar challenges to good faith bankruptcy sales.

In SEC v Panuwat, a federal jury in California will hear a novel insider trading theory that the court has allowed to proceed to trial. The SEC says it is unlawful for an individual to purchase securities of a company even if neither the individual nor his employer possess any material nonpublic information from that company. Just as employees and companies should not buy or sell their own company’s stock based on material, nonpublic information, if the Panuwat decision stands they may not be able to buy or sell stock of another company based on their own company’s nonpublic information about the other company.

Michigan’s new Prevailing Wage for State Projects Act (the “Act”) became effective on February 13, 2024, which requires construction workers who are working on public sector capital improvement projects sponsored or financed by the state, to be paid wages and fringe benefits that are commensurate with the wages and fringe benefits paid to other construction workers working in the same locality on similar contracts.