Summary of Key Changes and Requirements, Including Required Training, Notice, and Policies
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.
Smaller Airports Grounded in Their Pursuit to Use the Name of the Largest Cities They Serve
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.
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.
