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Journal of Regulatory Compliance

A Cleaner Future for the Shipping Industry

Shipping is the backbone of today’s globalized world and accounts for the carriage of roughly 90% of international trade. Given the sheer number of countries that engage in international shipping, the United Nations created an agency known as the International Maritime Organization (IMO) for regulatory oversight purposes. The IMO subsequently created the International Convention for the Prevention of Pollution from Ships (MARPOL), the most significant international agreement dealing with maritime vessel pollution to date. A predominant responsibility of the IMO is to reduce shipping emissions, seeing as the industry accounts for nearly 3% of global CO2 emissions. Likewise, sulfur emissions are unacceptably high, which has compelled the IMO to take unprecedented steps toward reducing the sulfur content in the grade of fuel oil used by maritime vessels.

Amateur Athletics Governance: Tumbling Over Misconduct Reporting

Congress has enhanced government oversight of amateur sports in response to numerous allegations in recent years targeting amateur sports governing bodies’ failures to address physical and mental misconduct. New legislation is expected to make significant reforms by requiring training, reporting, and a new system to manage allegations of of sexual abuse, among other changes.

#WFH – Fad or the Future?

There seems to be no end in sight to the various concerns associated with COVID-19, and experts are hesitant to say when and if life as we knew it will ever return to “normal.” As the pandemic persisted, companies large and small quickly realized that jobs we all assumed had to be done in an office, can in fact be done from the comfort of one’s home. #WFH is a trending social media hashtag standing for “work from home,” and posts using this hashtag range anywhere from how to dress comfortably while remaining professional when working from home to setting up the perfect home office. #WFH, however, is not just a social media trend, but a new normal for many Americans as employers were forced to allow their employees to work from home due to health concerns related to COVID-19. This gives rise to questions such as, what about safety and security concerns related to employer data? And, where do employees draw the line between work and home when working from home? While this may be uncharted territory, top researchers say that #WFH may be the next big thing for companies worldwide.

How Proxy Access for Shareholders Can Hold Corporations Accountable

Proxy access is not about giving shareholder’s rights, it is about checking C-suite power so that everyone wins instead of just the CEOs. Proxy access has the potential to address some of the pressing issues with corporate power. Corporate power and influence are concentrated in the board of directors, proxy access gives shareholders the opportunity to infiltrate this exclusive “inner circle” of power. Shareholder access to the board can push change towards greater diversity in the boardroom and demand greater transparency and compliance.

SEC Adopts New Rules for Whistleblower Program

Twelve years after the 164-year-old brokerage firm Lehman Brothers collapsed during the global financial crisis that had been sparked by the subprime mortgage catastrophe, last month the U.S. Securities and Exchange Commission (SEC) adopted a new rule changing parts of the agency’s whistleblower program. The program, which was established by the Dodd-Frank Act in 2010, permits the agency to provide financial awards to whistleblowers who provide it with original information about fraud and securities violations. At issue in this new rule is how the SEC will evaluate and apply its award criteria based on the circumstances in each case. Commissioners voted 3-2 to adopt the final rule – which is effective 30 days after publication in the Federal Register – during their Sept. 23 meeting. The SEC said the new rule was aimed at more efficient claim processing, increased transparency to the structure used by the Commission in determining award amounts and making other changes that reflect the Commission’s experience overseeing the program.

DOL Proposes Rule That Could Recategorize Many Employees into Independent Contractors

The U.S. Department of Labor (“DOL”) has recently proposed a rule change that would revise its interpretation of “independent contractor” under the Fair Labor Standard Act (“FLSA”). According to DOL, which has the power to investigate worker complaints about misclassifications, this change is needed to promote certainty for stakeholders, reduce litigation, and encourage innovation in the economy. However, this proposed rule could also diminish employee rights because independent contractors have fewer protections under FLSA. This rule widens the scope of who can be considered an independent contractor. Thus, many workers classified as employees could be reclassified as independent contractors and lose protections under FLSA.

Rural Hospitals in Crisis Receive a Boost to Value-Based Care Model from New CMS CHART Model

The Centers for Medicare & Medicaid Services (“CMS”) Innovation Center (“CMMI”) recently announced a new model for health care providers in rural areas to receive payment from the federal government. The Community Health Access and Rural Transformation (“CHART”) initiative aims to improve rural health care while promoting the Trump Administration’s push to shift health care providers into a more expansive value-based payment model.

The Constitutionality of the ACA: California v. Texas

Signed by President Obama on March 23, 2010, The Affordable Care Act (“ACA”) provided a monumental change to healthcare. The ACA created access, added provisions to improve quality, and created cost containment measures. However, the ACA created a quintessential question of Federalism. As it exists today, the Supreme Court will listen to oral arguments in November on the constitutionality of the ACA, in California v. Texas. If the Court decides that the ACA is unconstitutional, millions of Americans who are insured under the Act will lose coverage. Additionally, aside from access, the ACA includes regulatory laws such as Section 1557’s nondiscriminatory provisions, and amendments to the False Claims Act & HIPAA.

Open Meetings and Government Transparency in the Wake of COVID-19

On March 16, 2020, Governor JB Pritzker issued Executive Order 2020-07 which, among other things, suspended certain provisions of the Illinois Open Meetings Act (“OMA”), an act which ensures transparency regarding meetings, discussions, and actions taken by public actors concerning public business.  The executive order was a response to the practical challenges to compliance with the OMA’s in-person and physical quorum requirements facing local governments as they grapple with restrictions on public gatherings due to the public health threat of COVID-19, declared an emergency in Illinois by Pritzker’s Gubernatorial Disaster Declaration on March 12, 2020.  Since March, Pritzker has continued to re-issue and extend COVID-19-related executive orders and the disaster declarations, including the executive actions identified above and their restrictions and suspensions applicable to the OMA, most recently through Executive Order 2020-55 on September 18, 2020.  While the suspensions through executive order have provided a temporary solution allowing local governments to comply with the OMA in such an emergency situation, the Illinois legislature took it upon itself to address the issue permanently by amending the OMA statute.

Privacy Lessons Learned from Litigation: Video Surveillance of the Robert Kraft Massage Parlor-Prostitution Sting Operation

The criminal case against the NFL New England Patriots’ franchise owner, Robert Kraft, has taken an astounding turn of events as the Florida Court of Appeals handed down its ruling on Kraft’s privacy objections against law enforcement’s surveillance video evidence showing the billionaire soliciting prostitution at a local spa. Kraft filed a motion to suppress the evidence arguing that Florida law enforcement’s non-consensual and surreptitious recording of non-audio video surveillance of the premises of a private business, that is open to the public, runs afoul of Kraft’s, and others’, Fourth Amendment right to be free from unreasonable government searches. The ruling of the Appeals Court not only affirmed a similar lower court ruling by the Palm Beach County trial court, favoring Kraft, but it served up an interesting compliance lesson on the privacy protections required of law enforcement during their surreptitious video surveillance operations.