All Archived News
- April 14, 2020: DOL Issued Guideline on the Families First Coronavirus Response Act
- Following the enactment of the Families First Coronavirus Response Act (the “FFCRA”) which was discussed in our previous post, on March 24, 2020, the Wage and Hour Division of the U.S. Department of Labor the (“DOL”) released preliminary guideline, comprised of (1) a Fact Sheet for Employers, (2) a Fact Sheet for Employees, and (3) FAQs (collectively, the “Guideline”),which seeks to provide details concerning various aspects on the implementation of the new law. The FFCRA requires, .......
April 8, 2020: Employee Retention Tax Credit under the CARES Act
Enacted on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) provides an employee retention tax credit (“Employee Retention Credit”) to encourage “Eligible Employers” to keep employees on their payroll. The Employee Retention Credit is a fully refundable tax credit for employers. It equals to .......
- March 26, 2020: Families First Coronavirus Response Act Signed into Law
- On March 18, 2020, President Donald Trump signed into law the Families First Coronavirus Response Act (“FFCRA”), an emergency relief bill that aims to provide financial support to reduce the impact of the 2019 Novel Coronavirus (“COVID-19”) on American families. The FFCRA provides for two sources of ......
- March 16, 2020: President Trump Orders Beijing Shiji to Divest Acquisition of StayNTouch
- On March 6, 2020, President Trump issued an Executive Order requiring Beijing Shiji Information Technology Co., Ltd., a public company organized under the laws of China (“Shiji”), to divest its acquisition of StayNTouch, Inc. (“StayNTouch”), a US-based hotel property management software company. The Order is the sixth Executive Order to date prohibiting the acquisition of a U.S. business by a foreign person, pursuant to the authorities that allow the Committee on Foreign Investment in the United States (“CFIUS”) to review......
- March 9, 2020: SEC Amends Exemptions from Investment Adviser Registration for Advisers to Rural Business Investment Companies
On March 2, 2020, the Securities and Exchange Commission (“SEC”) adopted the amendments to (i) Section 203(l)-1, which defines the term “venture capital fund” for purposes of the venture capital fund adviser exemption, and (ii) Section 203(m)-1, which defines the term “assets under management” for purposes of the private fund adviser exemption, in each case, under the Investment Advisers Act of 1940 (as amended, the “Advisers Act”), to reflect exemptions from registration for investment advisers who advise rural business investment companies (“RBICs”). Specifically, Section 203(l),......
- March 3, 2020: CRS Releases Report on CFIUS
On February 26, 2020, the Congressional Research Service (“CRS”), a public policy research think tank of the U.S. Congress, released a report on the Committee on Foreign Investment in the United States (“CFIUS”). The CRS report reviewed ......
- CFIUS Update Series of 2020 Please click here.
- February 18, 2020: CFIUS Update IV - Sensitive Personal Data under FIRRMA
On January 13, 2020, the US Department of Treasury (“Treasury”) issued two final rules (the “Final Rules”) implementing the Foreign Investment Risk Review Modernization Act (“FIRRMA”). The Final Rules expand the jurisdiction of the Committee on Foreign Investment in the United States (“CFIUS”) to review non-controlling foreign investments in a US business involving critical technology, critical infrastructure, or sensitive personal data (a “TID US Business”). Under the Final Rules, CFIUS may review ......
- January 18, 2020: SEC Proposes to Amend the “Accredited Investor” Definition
The Securities and Exchange Commission (SEC) has recently proposed to amend the definition of “accredited investor”. Qualifying as an accredited investor may enable an investor to participate in private investment opportunities that are generally not available to the general investment public, such as investments in certain hedge funds and private equity funds. Specifically, the SEC proposes ...
- January 13, 2020: Software Specially Designed to Automate Analysis of Geospatial Imagery Added to Export Control Classification Number 0Y521 Series
On January 6, 2020, an interim final rule issued by the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) to make certain items subject to the EAR and imposes a license requirement for the export and reexport of certain items to all destinations, except Canada. Specifically, this rule classifies ...
October 17, 2019: 28 China-Based Entities included in BIS List
regarding AB5 or how it may impact your company, please contact us.
- AB5: On September 18, 2019, Governor Gavin Newsom signed Assembly Bill 5 (AB5) into law, which codifies the “ABC” test for employee versus independent contractor classification in California. The new law will become effective on January 1, 2020.
Under the “ABC” test, a hiring entity must establish all of the following conditions for a worker to be considered a contractor rather than an employee:
(A) The person is free from the control and direction of the hiring entity in connection with the performance of the work; and
(B) The person performs work that is outside the usual course of the hiring entity’s business; and
(C) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
AB5 only requires the use of the “ABC” test for certain employment law areas but not others and there are multiple exemptions from the “ABC” test. California employers should consider classification decisions carefully and should seek legal counsel when the classification is not entirely clear.
regarding AB5 or how it may impact your company, please contact us.
- CA has become first state in ...: California has become the first state to require public companies to include women on their board of directors. Under California’s newly enacted law, a publicly held corporation whose principal executive offices, according to the corporation’s SEC 10-K form, are located in California, is required to have a minimum of one female director on its board of directors by December 31, 2019. By the end of 2021, the minimum number of female directors will be further increased for publicly held corporations with five or more directors. A failure to comply with the law or timely file the directors’ gender information with the California Secretary of State by the specified date could incur $100,000 or more in fine.
- FIRMMA: On September 17, 2019, the Treasury Department proposed final regulations that would comprehensively implement the Foreign Investment Risk Review Modernization Act of 2018 (“FIRMMA”). Among other things, the proposed final regulations expand the jurisdiction of the Committee on Foreign Investment in the United States (“CFIUS”) over (i) non-controlling investment in U.S. business that afford a foreign person certain access, rights, or involvement with critical technologies, critical infrastructure, or sensitive personal data ( “TID U.S. business”) and (ii) certain foreign investments in U.S. real estate. The proposed regulations would also introduce a mandatory declaration requirement for investment in a TID U.S. Business by certain foreign investors if a foreign government has a substantial interest in that foreign investor. Comments on the proposed regulations are due by October 17, 2019. The final regulations will become effective no later than February 13, 2020.
- President Trump signed into law the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) on August 13, 2018.
- On June 27, 2018, President Trump announced that he would back away from an aggressive approach to limit China’s investment in the United States through declaring a national economic emergency. Instead, he would rely on an existing Secretary-led committee to restrict new investments (including Chinese investments) in American technology companies, which is to expand the current CFIUS authorities through the Foreign Investment Risk Review Modernization Act of 2017 (FIRRMA). On June 28, 2018, the House bill of FIRRMA was approved by a margin of 400 to 2. While several differences remain between the House and Senate versions, the overwhelming vote for FIRRMA in the House of Representatives, coupled with the support of President Trump, makes it highly likely that some form of the legislation will be enacted this year.
- GDPR: The European Union’s General Data Protection Regulation (GDPR) was adopted in 2016 and becomes effective May 25, 2018. It requires businesses to protect the personal data and privacy of EU citizens for transactions that occur within EU member states. GDPR applies any company or organization that collects or processes personal data of an EU citizen, who is residing in the EU, regardless of the location of the company or where the personal data is stored. Companies must be able to show compliance by May 25, 2018.
- The new Section 251(h) of the Delaware General Corporation Law eliminates the need to include top-up options or a back-end stockholder vote in most public tender offers for Delaware corporations.
- The SEC has adopted amendments to allow widespread advertising and other forms of “general solicitation” or “general advertising” in private offerings under Rule 506 of Regulation D of the Securities Act of 1933 or under Rule 144A of the Securities Act of 1933, so long as all purchasers of the securities are reasonably believed to be accredited investors or QIBs.