Significant shift in DoL wage and hour policy, U.S. tax courts look at foreign sale of penny warrants, and more in this issue of Business News Digest

3 min

financial markets

Fund Forum | June 2017

This issue of Venable's Fund Forum includes recent developments from the Securities and Exchange Commission (SEC), including:

  • SEC focus on anti-money laundering
  • SEC comments on standards of conduct for investment advisers and broker-dealers
  • SEC's division of investment management updates to form ADV FAQs
  • SEC's guidance update on "inadvertent custody"
  • Executive Order 13789 – identifying and reducing tax regulatory burdens

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time is money

DoL Withdraws Obama-era Guidance on Independent Contractors and Joint Employers, Signaling Significant Shift in Wage and Hour Policy

In June, the U.S. Department of Labor withdrew two Wage and Hour Division administrative interpretations on independent contractors and joint employment, thereby signaling a significant shift in wage and hour policy. The withdrawn Obama-era guidance had increased scrutiny on employers to correctly classify workers as employees and adopted expansive standards for determining joint employment. While the withdrawal of the guidance has little bearing on existing law, it is a strong indication that the administration will attempt to reverse Obama-era policy in favor of less aggressive regulation.

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tax documents

Effectively Connected Income and Penny Warrants

There is a case currently proceeding in the U.S. Tax Court (TELOS CLO 2006-1, Ltd. v. Commissioner, T.C., No. 6786-17, petitions filed 3/22/17) that deals with the question of whether non-U.S. investors inadvertently realized "ECI" from the sale of "penny warrants" (a/k/a "hope notes"). This is a reminder that careful deal structuring is crucial for funds that have a significant non-U.S. investor base or otherwise have a covenant to avoid income that is "effectively connected" with the conduct of a U.S. trade or business (ECI).

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Digital Health Business Forum: The Premier Digital Health Resource

July 26, 2017 | Webinar

The healthcare industry is seeing rapid technological advancements, and none are more evident than those in digital health. These new developments create exciting opportunities but also present many challenges. The Digital Health Business Forum is a digital health interest group comprising digital health companies, their investors, and other advisors. Members may participate in a series of free quarterly webinars and other updates that provide the relevant regulatory, legislative, and corporate updates necessary for digital health businesses to succeed in this evolving and exciting industry.



Mark Vecchio Presents: How Will Today's Global Environment Affect M&A?

Watch the free webcast now

Mark Vecchio joined an interactive video webcast panel discussion, "How Will Today's Global Environment Affect M&A?" focused on how policy changes in world capitals could alter the global M&A landscape. Mark and the panel discussed:

  • U.S. tax and trade policies
  • North Korean instability in APAC
  • Continuing uncertainties regarding Brexit and potential corporate movements out of London
  • Other European capitals and the upcoming German elections
  • Launch Webcast


D.C. Circuit hears arguments on SEC ALJs and CFPB's structure, "ringless voicemail" and TCPA compliance, and more in the June 2, 2017 issue of Consumer Financial Services Practice Digest

Supreme Court settles circuit split on FDCPA, payments compliance 101, and more in the June 16, 2017 issue of Consumer Financial Services Practice Digest

Labor and Employment under Trump, advancements in family leave and employee work schedules for DC, New York, and California, and more in the June 2017 issue of Labor & Employment Law Update

D.C. District Court Allows Victim of Data Breach to Sue Government Contractor as a Third Party Beneficiary

Legal Developments for Contractors to Consider

Modernizing NAFTA Presents a Unique Opportunity to Reshape the Global Regulatory and Policy Landscape: Former Senior U.S., Mexican, and Canadian Officials Weigh In

Senate Republicans Release Healthcare Bill

The Senate's Repeal-and-Replace Draft Bill: What Employers Need to Know

Someone Calling You About Your IRS Tax Debt May Be Real Now!

Summer 2017 Federal Copyright and Trade Secret Legislation Update