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Kyle J. Conway

FTC Considering Significant Expansion of Children’s Online Data Privacy

Posted by Kyle J. Conway on 12/22/2023

The Federal Trade Commission ("FTC") is poised to open its updated rulemaking for the Children's Online Privacy Protection Act (COPPA) open for public comment. First adopted in 2000, the Rule forbids online service providers and websites from collecting the personal information of individuals under the age of 13 absent verified consent from ...

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Lisa Omoto

FTC Bans Rite Aid from Using AI Facial Recognition

Posted by Lisa Omoto on 12/22/2023

On December 19, 2023, the Federal Trade Commission and Rite Aid agreed that Rite Aid will be banned from using facial recognition technology for surveillance purposes for five years to settle FTC charges that the retailer failed to implement reasonable safeguards to prevent its consumers from being falsely identified as shoplifters. In a complaint ...

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Finn W. Dusenbery

NYC Enacts Law Requiring Employers to Provide “Workers’ Bill of Rights” to Employees

Posted by Finn W. Dusenbery on 12/21/2023

On December 3, 2023, NYC enacted a new law, Int 0569, requiring employers to provide a yet-to-be-drafted "workers' bill of rights" to employees, beginning July 1, 2024. NYC's Department of Consumer and Worker Protection (DCWP) will write the workers' bill of rights in coordination with the Mayor's Office of Immigrant Affairs (MOIA), the NYC ...

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Finn W. Dusenbery

NYC Law Prohibiting Height and Weight Discrimination Goes Into Effect

Posted by Finn W. Dusenbery on 12/08/2023

On November 22, 2023, the New York City law prohibiting employment discrimination based on a person's height or weight went into effect. The law amends the NYC Human Rights Law ("NYCHRL") to include height and weight as classes or characteristics protected against employment discrimination. Prior to the amendment, the NYCHRL protected the ...

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Taylor Crabill

Recent Second Circuit Decision Blunts Protections Afforded by the Equal Pay Act by Making it Easier for Employers to Prove the Act’s Catch-All Affirmative Defense

Posted by Taylor Crabill on 12/07/2023

The Second Circuit's recent decision in Eisenhauer v. Culinary Institute of America made it easier for employers to defeat pay-discrimination claims under the Equal Pay Act ("EPA"), the federal law that makes pay discrimination based on sex unlawful. Specifically, the Second Circuit made it easier for employers to establish the "factor other ...

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Camilo Burr

Walmart App-Based Delivery Driver Accuses Company of Wage Theft

Posted by Camilo Burr on 12/06/2023

On November 27, 2023, a class action complaint filed in Washington State court was moved to federal court alleging Walmart improperly misclassified its app-based delivery drivers as independent contractors as opposed to employees, who must receive minimum and overtime wages and other benefits depending on which State an individual resides. ...

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Kyle J. Conway

Biden Executive Order Makes a Head Start on AI Regulatory Framework

Posted by Kyle J. Conway on 11/17/2023

In the past few years, the presence of artificial intelligence has boomed in the workforce with little to no formal regulation directly addressing its impact. This week, President Biden signed a broad executive order aiming to provide a framework for protecting consumers and workers from the potential downsides presented by artificial intelligence. ...

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Shawn R. Clark

FLSA Pleading Standard Is Specific But Not Strict, Says Court of Appeals

Posted by Shawn R. Clark on 11/16/2023

The New York Court of Appeals for the Second Circuit has issued new guidance on how to properly plead wage and hour claims against employers. On October 16, 2023 the Court in Abbott v. Comme Des Garcons, Ltd. reversed a district court decision that required an excessively strict level of detail in pleading overtime claims, ruling that so long ...

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Faruqi & Faruqi

District Court For The Southern District of New York Declines To Extend Securities Liability To Defendants Involved In The Uniswap Lab Crypto Exchange Because They Are Not Issuers Or Sellers Under The Statutes

Posted by Faruqi & Faruqi on 11/15/2023

On August 29, 2023, the court in in Risley v. Universal Navigation Inc. et al, Case No. 1:22-cv-02780 (S.D.N.Y. Apr. 4, 2022), dismissed claims under Section 12(a)(1) of the Securities Act of 1933[1] and Section 29(b) of the Securities Exchange Act of 1934,[2] against Defendants running a decentralized cryptocurrency trading platform called ...

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Finn W. Dusenbery

Nurse Sues Rehab Center for Unpaid, Interrupted Meal Breaks on 12 ½ hour Shifts

Posted by Finn W. Dusenbery on 11/01/2023

Last week, a nurse sued a rehabilitation center for automatically deducting 30-minute meal breaks from her and other employees' wages, even though their breaks were routinely interrupted to care for patients. The Center at Lincoln, a rehabilitation center in Colorado, "serves patients needing physical rehabilitation and/or complex nursing ...

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Lisa Omoto

New Lawsuit Alleges Costco Disclosed Consumers’ Medical Information to Meta

Posted by Lisa Omoto on 10/31/2023

On October 25, 2023, a California resident filed a lawsuit against Costco Wholesale Corporation ("Costco") for allegedly disclosing consumers' confidential medical information to unauthorized third parties such as Meta, Google, and Adobe. The plaintiff alleges that Costco installed on its pharmacy website various tracking tools – including ...

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Camilo Burr

California Increases the Minimum Wage for Health Care and Fast-Food Workers

Posted by Camilo Burr on 10/26/2023

On October 13, 2023, California Governor Gavin Newsom signed a bill into law that will raise the minimum wage for hundreds of thousands of Californian health care workers to $25.00 per hour by June 2028. Specifically, the law will gradually increase the hourly wage of medical technicians, nursing assistants, custodians, and other support staff ...

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Camilo Burr

U.S. Equal Employment Opportunity Commission Releases Proposed Updated Enforcement Guidelines on Workplace Harassment

Posted by Camilo Burr on 10/10/2023

On September 29, 2023, the U.S. Equal Employment Opportunity Commission released a long awaited draft of updated enforcement guidelines regarding workplace harassment. The draft is the first document the EEOC has issued on harassment since it issued "Enforcement Guidance on Vicarious Liability for Unlawful Harassment by Supervisors," in 1999, ...

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Finn W. Dusenbery

NY State Court Allows $17.96 Minimum Wage for App-Based Food Delivery Workers to Go Forward – First Law of Its Kind In U.S. – Denying Motion for Preliminary Injunction By Uber, DoorDash and Grubhub

Posted by Finn W. Dusenbery on 10/02/2023

Last week, a New York State Court rejected a motion by Uber, DoorDash and Grubhub for a preliminary injunction to stop a minimum wage of $17.96 from taking effect for those companies' app-based food delivery workers in NYC. This minimum wage was previously set to take effect on July 12, 2023 and is scheduled to rise by $1 per year, up to $19.96, ...

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Shawn R. Clark

New York Enacts New Criminal Penalties for Wage Theft

Posted by Shawn R. Clark on 09/29/2023

Despite a range of civil penalties in New York, employers continue to engage in widespread wage theft of employee's earned wages amounting to, according to one estimate by Cornell University's Worker Institute, nearly $1 billion dollars in lost wages per year. New York's Wage Theft Accountability Act (S2832-A/A154-A), signed by Governor Kathy ...

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Taylor Crabill

NLRB Issues Decision Clarifying Employee-Employer Test

Posted by Taylor Crabill on 09/12/2023

In June 2023, the National Labor Relations Board (the "Board") issued a decision clarifying the test used to determine whether a worker is an employee under the National Labor Relations Act ("NLRA") or an independent contractor. The decision is significant because the NLRA provides employees (not independent contractors) with important protections, ...

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Faruqi & Faruqi

The Rush to Wield Ripple Labs: Coinbase’s Argument that their Digital Tokens are Not Securities

Posted by Faruqi & Faruqi on 09/07/2023

The SEC continues to push its position that certain digital assets should be treated as securities that are subject to SEC rules and regulations. The inquiry to determine if the structure of the economic arrangement should be treated as "security" is fact intensive because it amounts to an "investment contract." While there is no Act of Congress ...

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Shawn R. Clark

Second Circuit Holds Whether Employer Knows Employee Is Not Being Paid Is Irrelevant To FLSA Liability

Posted by Shawn R. Clark on 09/06/2023

On August 25, 2023, the U.S. Court of Appeals for the Second Circuit held that whether an employer knows an employee is not being paid is irrelevant to liability under the Fair Labor Standards Act ("FLSA") in Perry v. City of New York. Rejecting the City of New York's argument that they cannot be held liable because they offered workers an ...

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Finn W. Dusenbery

Second Circuit Affirms Multi-Million Dollar Verdict for NYC EMTs Who Inspected PPE and Gear Before Shifts

Posted by Finn W. Dusenbery on 09/05/2023

On August 25, 2023, the Second Circuit upheld a $17,780,063 jury verdict in favor of 2,519 EMTs and paramedics who sued the City of New York for overtime, alleging that the City required them to perform work before and after their shifts without compensation. Before clocking in and responding to calls, EMTs and paramedics were required to ...

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Lisa Omoto

Seventh Circuit Affirms $5.2 Million Judgment Against Credit-Monitoring Business for Deceptive Advertising

Posted by Lisa Omoto on 09/05/2023

On August 30, 2023, the Seventh Circuit affirmed a district court decision reinstating the a $5.2 million judgment against Credit Bureau Center and its owner ("CBC") for their deceptive online advertising. The Federal Trade Commission ("FTC") initiated this lawsuit against CBC in 2017 for the company's use of an online marketing device known ...

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