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Recent Editions
North America
Human Times
The U.S. Chamber of Commerce and other major business groups have asked a Texas federal judge to permanently block a Biden administration rule that would make it more difficult for companies to treat certain workers as independent contractors rather than their employees. The groups argue that the U.S. Department of Labor failed to adequately explain why it was abandoning a Trump-era regulation that drew clearer lines for determining worker classification under federal wage laws. The business groups claim that reclassification will harm many independent contractors and may drive some out of the workforce altogether. The rule, which took effect on March 11, is expected to have a broad impact on industries relying on gig workers. Multiple challenges to the rule are pending, and Republicans in Congress are pushing for its repeal. The case is currently before U.S. District Judge Marcia Crone in Beaumont, Texas.
Full IssueUK
Human Times
The TUC has warned that Britain is failing to keep up with the regulation of AI in the workplace, leaving workers vulnerable to exploitation and discrimination. It has proposed a legal blueprint for regulating AI, including a legal duty for employers to consult trade unions on the use of high-risk and intrusive forms of the technology. Other countries such as the US, China, and Canada are already implementing new laws for the use of AI. TUC assistant general secretary Kate Bell said: “UK employment law is simply failing to keep pace with the rapid speed of technological change. We are losing the race to regulate AI in the workplace. AI is already making life-changing calls in the workplace, including how people are hired, performance managed and fired. We urgently need to put new guardrails in place to protect workers from exploitation and discrimination. This should be a national priority. Other countries are regulating workplace AI – so that staff and employers know where they stand. The UK can't afford to drag its feet and become an international outlier.”
Full IssueUSA
Education Slice
The Biden administration has unveiled a final set of sweeping changes to Title IX, the federal civil rights law prohibiting sex-based discrimination at government-funded schools. The changes, which reinstitute protections for student survivors of sexual assault and harassment rolled back under former President Donald Trump, will take effect on August 1. The new regulations expand the definition of sex discrimination to include sexual orientation and gender identity, and aim to equip schools with clear-cut instructions to promptly and effectively respond to all forms of sex discrimination. The final update also establishes a lower burden of proof for survivors and students alleging sex discrimination. However, the administration has maintained several major provisions from the previous regulations to ensure consistency while schools update their procedures. The changes are expected to draw swift criticism from those who view the transgender student protections as an attack on protections for cisgender women and girls. The administration has yet to finalize a separate rule governing athletics eligibility.
Full IssueUSA
Accountancy Slice
Despite chronic, and pandemic-specific, challenges, the IRS is making strides in improving its service levels, according to the recently released National Taxpayer Advocate Annual Report to Congress. The report highlights the agency's successes in eliminating most of its tax return backlog, improving tax refunds, and enhancing customer service availability and responsiveness. While obstacles remain, such as staffing and tax avoidance schemes, the IRS sees tremendous opportunities in data, analytics, and artificial intelligence (AI). The report also identifies seven prevailing trends impacting tax agency operations, including the explosion in data sharing, the use of AI and generative AI against tax agencies, and the need to crack down on unexplained wealth. The IRS is tapping into AI to investigate tax evasion and is adopting real-time risk scoring to improve compliance. The agency is also focusing on sharing innovation with developing countries, addressing the skills shortage, and gaining citizen trust while embracing modernization.
Full IssueScotland
Legal Matters Scotland
The Scottish Government will need to find their own legal fix to overturn the convictions of sub-postmasters wrongly prosecuted because of the faulty Horizon IT software. Ministers in Edinburgh had pleaded with the UK Government to include Scotland in their legislation, but they have been told it is for the Scottish Government and the Scottish Parliament to bring forward legislation specific to those caught up in the scandal north of the border. Lord Advocate Dorothy Bain KC has also said that there can be no quick solution for the Scottish victims and that it was "imperative that due process is followed." Yesterday, Justice Secretary Angela Constance wrote to UK enterprise minister Kevin Hollinrake setting out 15 "relatively simple" amendments which she said could extend the UK bill to Scotland. A UK Government spokeswoman said that overturning convictions in Scotland is determined, delivered, and scrutinised by the Scottish Government and the Scottish Parliament.
Full IssueNorth America
Legal Slice
U.S. law firms Troutman Pepper Hamilton Sanders and Locke Lord are in discussions to merge, potentially creating the largest law firm combination of the year. The firms have confirmed their talks and stated that their priority is delivering exceptional legal services to clients. Troutman Pepper, with over 1,100 lawyers in 22 U.S. cities, generated $1.08bn in gross revenue in 2023. Locke Lord, with over 500 lawyers in 20 locations globally, brought in $497.6m in revenue last year. The number of law firm mergers in the first quarter of 2024 has increased by 25% compared to the same period in 2023. Allen & Overy and Shearman & Sterling are also set to merge, creating a firm with over 3,900 lawyers across 48 offices.
Full IssueEurope
Risk Channel
The Serious Fraud Office (SFO) has announced its new strategy to combat serious fraud, bribery, and corruption. The strategy focuses on prevention, the use of AI, greater covert intelligence, and whistleblowers. The SFO says it aims to be a proactive and authoritative player in the global and domestic justice system. Plans include a pilot program to cut financial crimes at the source, increasing incentives for corporate whistleblowers, and implementing a pre-trial disclosure system. However, some senior lawyers have questioned the strategy. Louise Hodges at Kingsley Napley said: "A big question mark for me is which type of organisation the SFO sees as its target. So far the investigations opened have involved relatively small and lesser-known businesses, some already in administration and a far cry from the global giants and High Street names that the SFO historically had in its sights."
Full Issue