News & Legal Updates Archive

With the recent failure of Silicon Valley Bank and the collapse of Signature Bank shortly after, many depositors are understandably concerned about the safety of holding their money in banks. There are, however, ways to maximize FDIC protections on amounts over and under $250,000 held in a bank.

Micah Marcus, a Member of McDonald Hopkins' Litigation Department in Chicago, has been named a 2023 Thomson Reuters "Stand-Out Lawyer."

The IRL drama between Tiger Woods and his former girlfriend, Erica Herman,  provides an opportunity to take a closer look at the Speak Out Act and the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFA).   

With the anticipated publication of the Defense Department’s Cybersecurity Maturity Model Certification program 2.0 (CMMC 2.0) later this month, it is important for all government contractors to start planning and developing the appropriate compliance mechanisms. Inadequate cybersecurity can lead to hefty fines and penalties, as demonstrated by the recent $9 million payment by Aerojet Rocketdyne. As a safety measure against these fines and penalties, prime contractors are regularly including 72- to 24-hour notification requirements and flowdown clauses.

Nominations are now open for the 10th annual Cyber Risk Awards hosted by Zywave (Advisen). 

Over the last 15 years, section 403(b) tax-sheltered annuities, commonly known as 403(b) plans, have been becoming more like their qualified plan cousin, the 401(k) plan. Despite this trend towards uniformity, legal, investment, and administrative differences have persisted. The SECURE 2.0 Act of 2022 (SECURE 2.0) includes a number of provisions that eliminate some of these remaining differences. This post will provide a brief overview and comments on some of the notable SECURE 2.0 provisions relating to 403(b) plans.

Bryan Kostura has joined McDonald Hopkins LLC as a Member in the firm’s Litigation Department.

In a recent decision, the National Labor Relations Board upended the standard severance agreement process by finding that the type of broad non-disparagement and confidentiality provisions often found in severance agreements violate the rights of many employees to engage in protected concerted activity.

In a case that could provide a tax break to homeowners who rent a room in their residence to a roommate, the Michigan Court of Appeals held that a homeowner that rents a room in their personal residence to a roommate, does not lose the principal residence exemption available to reduce real estate taxes.

The U.S. Equal Employment Opportunity Commission (EEOC) recently filed a federal lawsuit in the Northern District of Ohio alleging that a Cleveland-based nonprofit violated the Americans with Disabilities Act (ADA) after requiring employees to return to in-person work following an extended period of COVID-19-related remote work.

Section 110 of the SECURE 2.0 Act of 2022 (SECURE 2.0) wrote into law a new design concept – matching contributions to a 401(k) plan based on a participant’s student loan payments, that is, treating student loan payments as if they were elective deferrals. There is sure to be IRS guidance on Section 110; however, in the interim the McDonald Hopkins Tax and Benefits team has prepared insight on the practicalities of this feature of SECURE 2.0.

Earlier this month, bipartisan groups of lawmakers introduced bills in both the Senate and the House of Representatives dubbed the Workforce Mobility Act of 2023. Despite failing in the past, the Workforce Mobility Act of 2023 is now poised to gain traction given the slow, but persistent national trend towards tighter restrictions on non-compete agreements. 

With two new state data privacy laws already in effect in 2023 and three more on the horizon, the year brings with it a number of new requirements and internal and external obligations for businesses that process data for residents of Virginia, California, Colorado, Connecticut and Utah.

A recent opinion out of the Bankruptcy Court for the Northern District of Ohio highlights the intersection of a number of things that may come to head when a franchise transfer among parties who are friends or acquaintances goes wrong. (In re Conte, Case No. 21-13189, 2022 WL 17968888 (Bankr. N.D. Ohio Dec. 27, 2022)).

The Department of Veterans Affairs (VA) has reconstructed and published their final rule concerning small and large contractors and all sub-contractors requiring new cybersecurity obligations. These new requirements and obligations significantly increase the measures and safeguards contractors need to apply to their internal and external electronic storage and communication systems to ensure all sensitive data is protected. Adherence to this new rule is mandatory and essential in protecting both your own business and the federal government. In some cases, the VA may be entitled to conduct unscheduled on-site inspections of all technical systems and storage of government data.

The Illinois Supreme Court ruled on Thursday, February 2, that individuals have five years to pursue all claims under the Biometric Information Privacy Act (BIPA), reversing a lower court decision that had imposed a one-year limit on claims involving publication or disclosure of biometric data.

How do I perform an effective workplace investigation? To ensure that your company is protected following allegations of wrongdoing in the workplace, here are 8 steps that should be taken as soon as you receive a verbal or written complaint.

Since last summer, the uncertain status of the Michigan Paid Medical Leave Act and the state’s minimum wage rate has left many Michigan employers on pins and needles. Their concerns stemmed from a July 2022 Michigan Court of Claims decision finding that the legislative process used to adopt provisions on paid sick leave and the minimum wage rate was unconstitutional. Employers can now breathe a major sigh of relief with the Michigan Court of Appeals ruling on January 26, 2023, that the process is constitutional and the paid sick leave and minimum wage laws can remain in effect “as is.”

CHICAGO – Four attorneys at McDonald Hopkins have been selected to the 2023 Illinois Super Lawyers list and two McDonald Hopkins attorneys have been selected to the 2023 Illinois Rising Stars list.

On January 19, 2023, the U.S. Chamber of Commerce (Chamber) released its analysis of the current state of the workforce in the United States. While it appears that the country is welcoming a healthy number of individuals into the workforce, the Chamber’s data proves out that the numbers are still lagging behind pre-pandemic numbers. This is not necessarily industry-specific, and one industry that continues to be impacted significantly is food service. Simply stated, without a stable workforce to rely upon, the food service industry, particularly in the fast food and fast casual sector, is experiencing a seismic change, with several suffering through distress at a level not felt previously. A recent example is TOMS King (Ohio), LLC (TOMS), a Burger King® franchisee.

DETROIT — Michael Eades has joined McDonald Hopkins LLC as an associate in the Litigation Department, adding his experience to the firm’s national Data Privacy and Cybersecurity Practice Group. 

On December 1, 2022, the Health and Human Services Office for Civil Rights (OCR) issued a Bulletin on the requirements imposed by the Health Insurance Portability and Accountability Act of 1996 (HIPAA) for online tracking technology regarding protecting the privacy and security of health information. This Bulletin explains how HIPAA rules apply to regulated entities' use of online tracking technologies on their webpages and mobile apps, and comes in wake of several lawsuits related to the unauthorized disclosure of PHI to online tracking technology vendors.

CLEVELAND — Jessi Ziska has joined McDonald Hopkins LLC, a business advisory and advocacy law firm, where she is an associate in the Litigation Department’s Labor and Employment Practice Group. 

CLEVELAND - Charles (Drew) Hayes has joined McDonald Hopkins LLC as Of Counsel in the firm’s Intellectual Property Department. 

On December 29, 2022, President Joe Biden signed the Consolidated Appropriations Act of 2023 into law. At over 4,000 pages, the Act included the SECURE 2.0 Act of 2022 (SECURE 2.0), a sprawling collection of 92 retirement plan-related provisions that build on the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE ‘19). There are changes intended to encourage plan-sponsorship and provide additional opportunities to save, changes that (in practical terms) will increase and others that will (hopefully) reduce administrative burdens, and changes that raise revenue. Some changes are effective immediately, some in the next few years, and others that will not take effect for many years (if ever).

CHICAGO — Experienced real estate and finance attorney James Inendino has joined McDonald Hopkins LLC as a Member in the Business Department in Chicago.

In the flurry of the holidays, employers may have missed two employment provisions addressing pregnancy accommodations and lactation time tucked in the federal Omnibus spending bill signed on December 23, 2022. Now, as employers focus on 2023 compliance obligations, it’s time to dig into these laws and what they mean.

On January 5, 2023, the FTC proposed the Non-Compete Clause Rule which, if made final, would categorically ban non-compete clauses in employment contracts. The proposed rule would take effect 180 days after (and if) the FTC publishes a final rule and would supersede all state laws that are less restrictive.

After a long and challenging year of hybrid adjustments, recruiting struggles, and the “quiet quitting” phenomena, business owners, legal counsel, and HR professionals could use a reset in 2023 to help their workplaces look good and find balance. Here are suggestions for challenging, but attainable, 2023 human resources resolutions.

Ten attorneys at McDonald Hopkins have been selected to the 2023 Ohio Super Lawyers list and three McDonald Hopkins attorneys have been selected to the 2023 Ohio Rising Stars list.

The Central Kitchen Food Hub (Central Kitchen) located in Cleveland’s Midtown Corridor, is opening doors for craft food start-ups, food business support, and retail distribution for growing and mature food businesses.

As part of the proposed amendments published October 2022, the SBA  is proposing to implement a major change in affiliation criteria for franchises and distributorships/licensees by eliminating current principles for determining affiliation arising from management and control, franchise or license agreements, and identity of interest. Instead, the SBA proposes to streamline affiliation determinations based only on ownership criteria. This development will lead to the Franchise Directory being eliminated. 

Tucked deep in the 2023 federal Omnibus spending bill, passed on December 23, 2022 and signed by President Joe Biden the same day, were two surprise employment provisions that increase protections for pregnant and nursing employees. Both provisions had support across party lines as well as from a broad coalition of business and civil rights advocacy groups. 

Aubrey Brands has joined McDonald Hopkins LLC as an associate in the Litigation Department, adding her experience to the firm’s national Data Privacy and Cybersecurity Practice Group.

The recently amended Delaware General Corporation Law now permits corporations to exculpate officers from personal liability from monetary damages. Previously, Delaware law only provided for director exculpation. The recent amendments permit important liability protections that corporate officers should be aware of.

McDonald Hopkins member Spencer Pollock has been selected to the 2023 Maryland Rising Stars list. No more than 2.5 percent of lawyers in the state are selected by Super Lawyers to receive this honor.

With the clock ticking down on the current session of Congress, legislators in the House and Senate found a way to work together on several issues impacting the workplace which have now been signed into law by President Joe Biden. 

Cybersecurity threats are ever more prevalent in today’s world, and even more so during the holiday season. It is critically important individuals and businesses take steps to protect their personal information and other data during the holidays. In this blog we discuss three common cyber threats that may affect you or your business during the holiday season.

Trinh Vo has joined McDonald Hopkins as an Associate in the Intellectual Property Department. She brings to the firm extensive intellectual property experience, with a practice that focuses on patent, trademark and IP litigation.

On December 3, 2022, the United States Patent and Trademark Office will shorten the now six-month response due date for any trademark office action (final or non-final) to just three months. The USPTO will, however, allow an extension of an additional three-months with payment of a $125 fee to file the applicable response.

Last month, President Joe Biden signed an executive order that sets forth the steps that the United States will take to implement the U.S. commitments under the European Union-U.S. Data Privacy Framework (EU-U.S. DPF).

Liz Sullivan, the Chair of McDonald Hopkins' national Healthcare Practice Group, and Emily Johnson, a Member of the firm who focuses on matters in the healthcare industry, spoke about the  Anti-Kickback Statute (AKS), Eliminating Kickbacks in Recovery Act (EKRA), as well as relevant healthcare cases, during a video lecture for the University of Utah ARUP Laboratories. 

The Centers for Medicare & Medicaid Services (CMS) on November 1, 2022, issued the Medicare Physician Fee Schedule (MPFS) 2023 Final Rule (the “2023 Final Rule”), which sets forth updates, policy revisions and guidance relating to services under the MPFS. This includes updates and summaries regarding relaxed standards and related flexibilities that have facilitated the expanded use of telehealth and other digital health services during the Public Health Emergency (the PHE). 

Demetri Sintsirmas has joined McDonald Hopkins as an Associate in the Litigation Department, adding his experience to the firm’s commercial litigation team. He brings a diverse set legal experience to the firm, with a practice that focuses on providing guidance to both large and small corporate clients throughout the litigation and appeals process.

Christal Contini, a Member at McDonald Hopkins, Chair of the firm’s Mergers and Acquisitions practice, and the Vice Chair of the Business Law Department, recently spoke at the Behavioral Health Business INVEST Conference. Christal’s panel presentation was summarized and statements from her presentation were also included in the Behavioral Health Business article.

McDonald Hopkins Cleveland Managing Member David Kall's article "State tax incentives bring in big manufacturers — can your business benefit?" was featured in a recent edition of Crain's Cleveland Business.  

This edition of our employment law lessons for employers focuses on the recent employment related drama at Twitter. Here we break down the reported employment actions at Twitter and look at the practical lessons that employers can learn to implement drama-free reductions-in-force. 

Christal Contini, a Member at McDonald Hopkins, Chair of the firm’s Mergers and Acquisitions practice, and the Vice Chair of the Business Law Department, and Marc Carmel, Managing Member of the Chicago office and a Member of the firm's Strategic Advisory and Restructuring Department, wrote an article for Crain's Chicago Business on how investors should consider the opportunities and risks of buying a distressed business. 

With recent changes to the Confidentiality of Medical Information Act, organizations, covered entities, and health care providers should ensure that those who fall under both HIPAA and the CMIA are trained and knowledgeable about the specific and changing requirements to ensure not only privacy compliance but also the patient’s privacy.