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Recent Editions
North America
Human Times
U.S. companies will no longer be able to enforce noncompete agreements on employees, following a rule approved by the Federal Trade Commission (FTC). The ban aims to increase job mobility and prevent restrictions on workers' ability to switch jobs for higher pay. The FTC argues that noncompete agreements harm workers and the economy by reducing job churn and limiting the hiring ability of other businesses. The rule, which received support from the majority of the 26,000 comments received, will take effect in six months unless blocked by legal challenges. Business groups have criticized the measure, claiming it exceeds the FTC's authority. The U.S. Chamber of Commerce plans to sue to block the rule. Noncompete agreements are already banned in three states, including California.
Full IssueUK
Human Times
Martin Rolfe, the CEO of the UK's air traffic services provider, has defended engineers who work from home, telling MPs the ability to problem solve remotely when called upon was "a bonus." NATS - formerly National Air Traffic Services – came under fire last year when an IT systems failure led to air traffic chaos and grounded flights, with Ryanair boss Michael O'Leary accusing engineers of "sitting at home in their pyjamas." Mr Rolfe has defended NATS’ staffing arrangements, telling the Transport Committee his organisation operated a "very similar model to almost all of the rest of critical national infrastructure." He insisted that there were always engineers on site to solve problems but noted that expert "design engineers" were needed for particularly complex issues. Remote working technology, he argued, enables these engineers to look into issues immediately.
Full IssueUSA
Education Slice
The top education official in Louisiana, Cade Brumley, has instructed schools to ignore the new Title IX rules unveiled by the Biden administration. Brumley warned that extending the civil rights law's protections to transgender students may violate existing state and federal law. The new rules, set to take effect on August 1, drew immediate criticism from Republicans who view the transgender student protections as an attack on women's rights. Brumley argues that the new regulations conflict with a 2022 state law that bars transgender student-athletes from competing on sports teams consistent with their gender identity. He also believes that the new rules may infringe on individuals' First Amendment rights. Brumley expects the Biden administration to use the rules to block states from enforcing trans athlete bans. Louisiana is among the 24 states that have passed laws preventing transgender student-athletes from competing based on their gender identity.
Full IssueUSA
Accountancy Slice
The IRS has gained specific authority to tackle syndicated conservation easements that are deemed abusive. Initially, the IRS faced legal challenges regarding the adoption of guidance for these easements. While the Tax Court initially supported the IRS's position, the 11th Circuit reversed it, stating that the IRS failed to meet the requirements of the Administrative Procedures Act (APA). In response, the IRS has shifted its guidance to proposed regulations that comply with the APA. Legislation has also been enacted to limit losses claimed on syndicated conservation easements. The recent Tax Court decision in the Valley Park Ranch case has reversed the IRS's previous position, potentially causing trouble for the IRS in all circuits. Looking ahead, the IRS can continue revising its regulations, aided by reporting requirements, to identify abusive easements.
Full IssueScotland
Legal Matters Scotland
Kemi Badenoch has claimed that SNP ministers are “too lazy” to do their own legislative work as she rejected claims by Humza Yousaf that the UK government was using Scottish postmasters as “political pawns”. Yousaf has demanded Rishi Sunak should reverse his government’s “outrageous” decision not to extend legislation to Scotland to exonerate those wrongly convicted as part of the Post Office Horizon scandal. He claimed he was “utterly furious” that Westminster had agreed the bill - which was originally proposed to cover only England and Wales - should be extended to cover Northern Ireland, but still would not apply to Horizon victims in Scotland. Badenoch, however, noted that Scotland had a different legal system to the rest of Britain. She said: “The SNP want independence but are too lazy to do the work. They have powers to get justice for the postmasters. They should stop whining and get on with it.”
Full IssueNorth America
Legal Slice
The proposed merger between Troutman Pepper Hamilton Sanders and Locke Lord would create a firm of more than 1,600 lawyers, boosting key practices in energy, life sciences, and real estate. The firms hope to gain a more dominant market leader position in various industry sectors, which would result in increased demand and pricing power. The merger would also provide the combined firm with more depth in key U.S. markets, including New York, Chicago, Los Angeles/Orange County, and Boston. However, challenges such as cultural integration, partner departures, and office duplication would need to be addressed. The merger would move the firm to about the 28th spot on the Am Law 100 ranking, based on the firms' combined 2023 revenue of $1.570bn. The firms have not yet scheduled partnership votes for the merger. Overall, the merger presents an opportunity for growth and increased geographic reach, but also poses challenges in merging cultures and retaining unique elements of each firm.
Full IssueEurope
Risk Channel
The Competition and Markets Authority (CMA) is looking into whether Microsoft and Amazon’s partnerships with AI start-ups fall within UK merger rules. The competition watchdog is considering the impact partnerships between Microsoft and Mistral AI, Amazon and Anthropic, and Microsoft’s hiring of key figures from Inflection AI could have on competition in the UK. Joel Bamford, executive director of mergers at the CMA, said: “While we remain open minded, and haven’t drawn any conclusions, our aim is to better understand the complex partnerships and arrangements at play.” He added: “Given the global nature of these markets, competition authorities around the world are actively looking into AI.” A spokesperson for Amazon said: "It's unprecedented for the CMA to review a collaboration of this type," while a spokesman for Microsoft commented: “We remain confident that common business practices such as the hiring of talent or making a fractional investment in an AI start-up promote competition and are not the same as a merger.” The Times Katie Prescott reports that some UK-based AI start-ups have privately expressed concern that the CMA’s intervention could have a "chilling effect on investment in their own businesses from the only companies with the technical and financial firepower to help them develop."
Full Issue