FinCEN's beneficial ownership rules, what employers need to know about compensable time, and more in this issue of Business News Digest

3 min

Venable attorneys produce periodic alerts and newsletters covering a variety of topics and practice areas. For your convenience, we have assembled below a collection of the latest alerts and newsletters from May 2016.

FinCEN's Beneficial Ownership Rules Also Up the Risk-Based Ante

On Wednesday, May 11, 2016, the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) published its long-awaited rule requiring financial institutions to obtain from their "legal entity" customers the identity of (1) 25% or greater beneficial owners and (2) a single individual with significant control over the entity, taken together to mean "beneficial owner." The rule has been in process for years, but its publication is concurrent with the release of the "Panama Papers." The rule brings the United States more in line with existing beneficial ownership standards in the European Union and formalizes an enhanced customer due diligence standard in the United States.

The new rule applies to FIs subject to Customer Identification Procedures, and compliance is required by May 11, 2018.

Compensable Time? What Employers Need to Know Regarding Their Non-Exempt Employees

Employers already should be alert to the U.S. Department of Labor's (DOL) much-anticipated changes to the so-called white-collar exemptions under the federal Fair Labor Standards Act (FLSA). Those changes may effectively convert as many as five million employees from exempt to non-exempt status. The time to prepare is now. One area ripe for review is determining what constitutes "compensable time" for your employer's non-exempt employees.

Click here for some of the most common pitfalls and areas of confusion for non-exempt employees in the workplace.

Defend Trade Secrets Act of 2016

On May 11, President Obama signed into law the Defend Trade Secrets Act of 2016. Effective immediately, the DTSA creates the first private, federal cause of action for trade secret misappropriation in the United States. The DTSA also provides the statutory foundation for a standardized definition of "trade secret" and a more consistent body of federal jurisprudence on trade secret misappropriation. In addition, the DTSA prescribes unique remedies for federal misappropriation claims, and introduces special new requirements for employer/employee agreements involving confidentiality and trade secrets.

Continue reading to learn how trade secret holders can improve the stability, security, and enforceability of these important proprietary rights.

CFPB Issues Proposed Rule to Mandate the End of Mandatory Arbitration Clauses

On May 5, 2016, the Consumer Financial Protection Bureau (CFPB) released a notice of proposed rulemaking (NPRM) that would ban consumer financial companies from using mandatory pre-dispute arbitration clauses in consumer financial contracts.

Similar to the framework proposed by the CFPB in October 2015 (see our overview here), there are two major elements to the CFPB's proposed rule: (1) elimination of agreements blocking consumer participation in class actions and (2) submission to the CFPB (and potentially public posting) of arbitral claims and awards.

Click here to learn more about the Proposed Rule and what is could mean for your business.

Additional Articles:

Major Changes Coming to Nutrition Facts and Supplement Facts Labels Near You

FDA Issues Final Menu Labeling Guidance; Unanswered Questions and Compliance Burdens Remain

FDA Issues Final Deeming Rule; E-Cigarettes, Vapor Products, and Cigars among Products to Be Regulated by the Agency for the First Time

FDA Finalizes Rule for Strategies to Protect Food from Intentional Adulteration

Much-Anticipated New FLSA Regulations Dramatically Change Minimum Salary Requirements for Certain Overtime Exemptions

OSHA Recordkeeping Goes Public

Government Contractors Must Heed the Cyber Basics: Federal Agencies to Require Basic Safeguarding of Contractor Information Systems

E-Filing, Filing Fees, and Redaction Deadlines Are Highlights of the Proposed Changes to the Government Accountability Office's Bid Protest Regulations

Education Lead Generation Targeted by FTC

Venable Brushstrokes - May 2016

NYC Development Bonus Update: J-51 Property Tax Exemption and Abatement Extended, 421-a Update