Perspectives

As you are aware, the Corporate Transparency Act (CTA) has been the subject of ongoing legal challenges and regulatory developments. Recent announcements from the Financial Crimes Enforcement Network (FinCEN) and the Treasury Department have further impacted the enforcement and reporting obligations under the CTA. Given these updates, we want to provide clarity on what this means.

Key Developments

• On February 27, 2025, FinCEN announced it will not be enforcing the beneficial ownership information (BOI) reporting obligations under the CTA until a forthcoming interim final rule takes effect.
• On March 2, 2025, the Treasury Department further confirmed that FinCEN will not impose penalties or fines for failing to file BOI reports, both under the existing deadlines and once the new rule is in place.
• The anticipated rule changes will likely narrow the CTA’s scope, requiring only foreign reporting companies to submit BOI reports, thereby exempting most U.S. businesses.
• These announcements follow a court decision in Smith, et al. v. U.S. Department of the Treasury, which initially reinstated CTA reporting obligations but was subsequently addressed by FinCEN’s decision to delay enforcement.
• FinCEN has committed to issuing an interim BOI Reporting Rule by March 21, 2025, and will open a public comment period for potential revisions.

What This Means for Compliance

For now, compliance with the CTA’s BOI reporting requirements is voluntary, and businesses can decide whether to submit their reports by the current deadline or wait for further regulatory clarity. However, businesses should still consider:

• Preparing the necessary BOI information in case reporting becomes mandatory under the final rule.
• Monitoring further regulatory updates, as the scope of required compliance could shift again.

Next Steps

While waiting for further guidance, businesses should take this opportunity to ensure their internal records and policies are current:

• Review corporate records – Confirm that corporate formation documents, ownership records, and governance materials are up to date.
• Assess contracts and agreements – Ensure business agreements are aligned with the most recent regulatory requirements.
• Update compliance policies – Verify internal compliance procedures remain effective and adaptable to potential changes.
• Organize beneficial ownership records – Maintain accurate ownership details to streamline future compliance efforts.

WFJ will continue monitoring developments and will provide updates as more details emerge. If you or your clients have any questions about CTA compliance, or if you would like assistance in preparing for potential obligations, please reach out.

Wagner, Falconer & Judd remains committed to ensuring that you and your clients are informed and prepared to navigate these evolving regulatory requirements.

Just when you thought you could put the Corporate Transparency Act (CTA) on the back burner, it’s back—and it’s enforceable once again. A federal court in Texas recently lifted the nationwide preliminary injunction that had put the CTA on hold, meaning businesses must now prepare to meet their reporting obligations.

New Reporting Deadline: March 21, 2025 The Financial Crimes Enforcement Network (FinCEN), the federal agency responsible for enforcing the CTA, has announced a new deadline for companies to file their beneficial ownership information (BOI) reports:

• Most businesses that existed before January 1, 2024, or had an original reporting deadline on or before March 21, 2025, must now file their BOI report by March 21, 2025.
• Newer businesses—those created on or after January 1, 2024—must still file their BOI report by their original deadline.

FinCEN has hinted at the possibility of extending this deadline further, but for now, businesses should operate under the assumption that March 21, 2025, is the date to meet.

Who Needs to File? The CTA requires most businesses to file a BOI report unless they qualify for an exemption—of which there are 23. In general, corporations, LLCs, and other entities formed by filing paperwork with a state agency are subject to this requirement. It’s estimated that more than 30 million businesses will need to comply.

If your company existed before January 1, 2024, your BOI report must disclose key company details, including:

• Names of all owners
• A photocopy of each owner’s driver’s license or passport

Failure to comply comes with steep penalties—$500 per day for ongoing violations, plus potential criminal charges, including up to two years in prison and fines of up to $10,000.

What’s Next for Your Business? While there’s still some uncertainty surrounding the CTA and its future litigation, businesses should prepare to comply now to avoid severe penalties. Unless an exemption applies, companies should begin gathering the necessary information to file their BOI report by March 21, 2025.

WFJ will continue to monitor legal developments and any potential deadline extensions from FinCEN. In the meantime, if you need guidance on whether your business is subject to CTA reporting requirements or how to prepare, our legal team is here to help.

Need assistance? Contact WFJ today to ensure your business stays compliant and protected.

In today’s economic climate, layoffs have become a reality for many businesses. Whether driven by economic downturns, restructuring, or shifts in market demand, layoffs can be challenging and emotionally taxing for all involved. However, beyond the human impact, there are significant legal considerations that HR professionals and business leaders must navigate to avoid costly litigation and ensure compliance with employment laws.

Understanding the Legal Framework

Before initiating layoffs, it’s crucial to understand the legal framework governing terminations. Several federal and state laws dictate how layoffs should be conducted:

The Worker Adjustment and Retraining Notification (WARN) Act: This federal law requires employers with 100 or more employees to provide 60 days’ notice before a mass layoff or plant closure. The notice must be given to affected employees, unions (if applicable), and local government agencies. Failure to comply with the WARN Act can result in penalties, including back pay and benefits for the affected employeees.

Anti-Discrimination Laws: Employers must ensure that their layoff decisions do not discriminate against any employees based on race, color, religion, sex, national origin, age, disability, or genetic information, as protected under federal laws like Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA). Even unintentional biases can lead to claims of disparate impact discrimination.

State Laws and Local Ordinances: Many state have their own WARN Acts with different thresholds and notice requirements. Additionally, local jurisdictions may have specific regulations, particularily in cities with strong employee protections. HR professionals should ensure compliance with all applicable state and local laws.

Creating a Layoff Plan

Once the legal framework is understood, the next step is to craft a comprehensive layoff plan. A well-thought-out plan should include:

Objective Criteria for Selection: To minimize the risk of discrimination claims, employers should establish clear, objective criteria for determining which employees will be laid off. Common criteria include seniority, job performance, and relevant skill level. Documenting these criteria and the decision-making process is critical for defending against potential legal challenges.

Communication Strategy: Transparent and empathetic communication is vital during layoffs. Employers should prepare a communication plan that includes how and when employees will be informed, what information will be provided, and how questions will be addressed. It’s also essential to communicate the business rationale for the layoffs to help manage employee morale and public perception.

Severance and Outplacement Services: While not legally required in most cases, offering severance packages and outplacement services can help mitigate the impact on laid-off employees and reduce the likelihood of litigation. Severance agreements should include a release of claims, but be mindful, such releases must comply with the Older Workers Benefit Protection Act (OWBPA) when involving employees aged 40 or older.

Conducting the Layoff

When the layoff day arrives, it’s important to handle the process with care and professionalism. Whenver possible, inform employees of their layoff status in a private one-on-one meeting. This approach demonstrates respect from the employer and allows for a more compassionate conversation. HR professionals should be present to provide support and address any immediate concerns or questions.

Post-Layoff Considerations

After the layoffs are completed, there are additional considerations to keep in mind:

Continuing Obligations: Employers must continue to comply with any ongoing obligations, such as providing final paychecks, complying with COBRA regulations for health insurance continuation, and adhering to any other state-specific requirements.

Morale and Retention of Remaining Employees: Layoffs can have a significant impact on the remaining workforce. Employers should be proactive in addressing employee concerns, providing support, and reinforcing the company’s future vision to retain key talent and maintain productivity.

Conclusion

Layoffs are a complex and sensitive issue that requires careful planning and considerations of legal obligations. By understanding the legal landscape, developing a thoughtful layoff plan, and communicating transparently with employees. HR professionals and business leaders can navigate the challenging process while minimizing legal risks and maintaing the trust and respect of their workforce.

Remember, when in doubt, consult with an experienced employment attorney to ensure that your layoff process is compliant and that you are taking all necessary steps to protect your business. 

Starting January 1, 2025, New York will become the first state in the coutnry to offer Paid Prenatal Leave, setting a precedent for employment legislation nationwide. This groundbreaking law grants employees 20 hours of paid leave for healthcare services related to pregnancy. These services include physical examinations, medical procedures, monitoring, testing, and discussions with healthcare providers about pregnancy.

Key Details Employers Need to Know:

• Coverage for all Private Employers: Regardless of size, all private employers in New York must comply with this law. Whether your business employs one person or 1,000, Paid Prenatal Leave is mandatory.
• Immediate Eligibility: Employees are entiltled to Paid Prenatal Leave from the moment they are hired, eliminating any waiting periods for eligibility.
• Additional to Sick Leave: Paid Prenatal Leave is in addition to New York’s existing Sick Leave Requirements. Employees are entiltled to 40 or 56 hours of Sick Leave (depending on employer size) plus an additional 20 hours specifically for prenatal care.

What This Means for Employers

This new requirement adds to the already complex framework of employment laws in New York. Employers must adjust their policies, track Paid Prenatal Leave seperately from other leave types, and ensure they remain compliant to avoied potential penalties. The law’s universal application, even for small businesses, means no employer is exempt from these changes.

Partner with WFJ to Stay Ahead

Navigating employment legislation can be challenging, especially with New York setting new precendents.. WFJ’s Compliance Center is here to help. Our team of experienced attorneys and SHRM-certified professionals can guide you in updating your policies, answering your questions, and ensuring compliance with the Paid Prenatal Leave law and other evolving regulations.

Don’t wait until you’re impacted by a new law-contact WFJ today to partner with a legal team dedicated to keeping your business compliant and protected in the face of ever-changing employment laws. 

As 2024 draws to a close, we want to reflect on the critical legal developments of the past year and prepare for the challenges and opportunities ahead. This year has been marked by significant changes across employment law, compliance regulations, and workplace standards. Staying informed is no longer optional-it’s essential to protect your business and foster growth.

Key Legal Updates from 2024

FTC’s Nationwide Non-Compete Ban 

While a Texas federal judge blocked the FTC’s non-compete ban, the regulatory environment remains dynamic. The FTC is likely to appeal, and the state-specific restrictions on non-compete agreements continue to evolve. Employers must tread carefully, especially with the NLRB’s increased focus on these agreements.

DOL Salary Threshold Adjustments

Changes to salary threshold rules have created new challenges for employers. While some salary adjustments may no longer be required, rolling back pay increases could impact employee morale. Employers should remain aligned with current legal standards and future appeals.

OSHA Updates

Enhanced workplace safety standards were introduced, including updated heat illness prevention rules and compliance requirements for indoor workplaces.

State-Specific Legislation

From California’s expanded whistleblower protections to Minnesota’s updates on wage transparency and classification laws, states have been highly active in updating employment regulations. Many of these laws take effect in early 2025, such as Minnesota’s minimum wage increase and job posting pay range requirements.

Preparing for 2025

The new year brings stricter requirements and evolving expectations, such as salary transparency laws in Massachusetts and Vermont, expanded leave protections in Connecticut, and revised minimum wage standards across several states. Employers must remain proactive to avoid penalties and ensure compliance.

Why Partner with WFJ?

At WFJ, we understand that navigating these complex changes can be overwhelming. Our team of experts is here to provide tailored solutions, helping you:

• Monitor regulatory changes and asses their impact on your business.
• Update workplace policies and agreements to align with federal and state laws.
• Foster a compliant and motivated workforce while mitigating risks.

With WFJ as your trusted partner, you’ll stay ahead of the curve in 2025 and beyond. Together, we can safeguard your business, ensuring you remain compliant while building a strong foundation for future success.

Let’s Get Started

Don’t let compliance challenges hold you back. Contact WFJ today to schedule a consultation with our Compliance Center and prepare for a legally secure 2025.

As we approach 2025, employers face a host of new legislative changes that could significantly impact workplace policies, practices, and budgets. Staying ahead of these changes is not just about avoiding penalties-it’s about fostering a compliant, inclusive, and future-ready workplace. Below are five key areas employers should focus on, along with insights into how they can prepare effectively.

Stay Ahead of New Poster Requirements

Mandatory workplace posters are a simple but crucial compliance requirement. With changes in federal and state laws, updated posters often reflect new employee rights and employer obligations. Employers should monitor for updates to ensure their postings are current. Noncompliance can lead to fines, not to mention the risk of employee claims stemming from lack of information.

Be Ready for Even More Pay Transparency

Pay transparency laws are expanding, with states requiring employers to disclose salary ranges in job postings, promotions, and even during annual reviews. These laws aim to close wage gaps but also add layers of complexity to hiring and compensation strategies. Employers need to evaluate their pay structures, ensure consistent practices, and prepare for increased scrutiny.

Keep an Eye on Emerging Paid Leave Laws

From parental leave to paid sick leave, state and local governments continue to introduce new paid leave laws. These laws not only affect policy creation but also payroll systems and employee handbooks. Employers should stay updated on new mandates and consider how to balance compliance with operational needs.

Plan for Big Minimum Wage Hikes

Minimum wage increases are sweeping the country, with some states and cities enacting annual adjustments tied to inflation. These changes can significantly impact payroll budgets, especially for businesses with large hourly workforces. Employers should strategize how to mitigate the financial impact, whether through workforce planning, price adjustments, or operational efficiencies.

Create Clear Policies for AI in the Workplace

As artificial intelligence (AI) tools become more prevalent in hiring, performance management, and operations, employers must establish clear policies to address their ethical and legal use. Laws surrounding AI in employment are emerging, particularly around bias, data privacy, and employee monitoring. Employers should proactively set policies that balance innovation with fairness.

The Importance of Partnering with Legal Experts

Navigating these legislative changes is no small feat. The nuances of new laws, the pace of change, and the potential for penalties make it essential to work with trusted legal counsel.

Partnering with experts helps employers:

• Interpret and implement laws correctly.
• Develop compliant policies tailored to their industry workforce.
• Avoid costly litigation by identifying and addressing risks proactively.

Final Thoughts

2025 promises to be a transformative year for workplace legislation, but with the right preparation, employers can turn compliance challenges into opportunities. By staying informed and seeking expert guidance, businesses can not only meet legal obligations but also build workplaces that attract and retain top talent.

If you’re looking for support to navigate these changes, reach out to our team at WFJ. Our legal experts are here to help you stay ahead and compliant in the ever-changing employment landscape.

The American’s with Disabilities Act (“ADA”) requires employers to provide an employee with a disability with a reasonable accommodation to allow the employee to perform the essential functions of the job. The obvious question then becomes…what is a reasonable accommodation? This question frequently leaves employers feeling stuck and struggling to identify a reasonable accommodation. However, the Job Accommodation Network (“JAN”) is a great resource for employers. JAN’s website–AskJAN.org–offers creative and effective accommodations for employees with disabilities. JAN’s one objective is to find and share effective workplace accommodation solutions to employers to allow employees to get back to work.

JAN’s website now offers a search tool call the “Situations and Solutions Finder” that gives employers more than 700 accommodation ideas to offer employees with disabilities. The ideas included in the Situations and Solutions Finder tool are real-world examples of accommodations that employers have given their employees. The Situations and Solutions Finder tool lets employers search for accommodation scenarios by filtering the search results by disability, limitation, and/or occupation. For example, if you search “Sleeping/Staying Awake” in the “Limitations” filter, you will see examples of how an employer provided an employee with sleep apnea a small device called the Doze Alert that fit in the employee’s ear and made a noise whenever the employee’s head started to drop forward at work, or how offering a standing desk for an employee with narcolepsy may be a reasonable accommodation for the employee.

The Situations and Solutions Finder tool is a helpful resource employers can use to satisfy their obligations under the ADA. The ADA requires employers to engage in the “interactive process” when an employee requests an accommodation or when the employer knows the employee has a disability and needs accommodation. The interactive process is a fancy legal phrase that simply means the employer and employee must engage in an informal discussion to discuss the employee’s work limitations caused by the disability and what reasonable accommodation, if any, will allow the employee to effectively perform the essential functions of the employee’s job. 

Employers often think there is no reasonable accommodation it can offer an employee.

When employers are stuck in finding a reasonable accommodation, the Situations and Solutions tool is a great resource to turn to. Remember, a reasonable accommodation does not mean the “best” accommodation or the accommodation the employee prefers. Rather, a reasonable accommodation means the accommodation allows the employee to effectively perform the essential functions of the job. 

Navigating the complexities of reasonable accommodations under the ADA can be challenging for employers, but resources like JAN and its Situations and Solutions Finder tool can make the process more manageable. However, ensuring your organization’s policies align with ADA requirements and that your HR professionals and leaders are well-versed in the latest tools and strategies is critical to compliance and fostering an inclusive workplace. Don’t leave these important matters to chance. Consult with an experienced attorney to review your policies, provide tailored guidance, and deliver training to your team. Together, we can ensure your organization is prepared to meet its obligations and support employees effectively.