FTC Set to Ban Non-Competes

On April 23, 2024, the U.S. Federal Trade Commission (the “FTC”) adopted a final rule that effectively bans non-compete clauses in employment contracts (the “Rule”). For workers other than “senior executives”, the ban is effective as of the effective date of the Rule, about four months after publication, and not only prohibits such clauses but... Read more »

Gov Hochul Signs NY LLC Transparency Act

On December 23, 2023, Governor Hochul signed the New York LLC Transparency Act (the “Act”). While there is substantial overlap with the federal Corporate Transparency Act, as reported in this post, there are several differences. Among them is that the Act only applies to LLCs, and requires filings with the N.Y Department of State that... Read more »

Delaware Allows Secured Creditors to Foreclose Without Shareholder Approval

In July 2023, Delaware amended its code to allow certain secured creditors under mortgages or pledges of assets to rely on a Board of Directors decision if the value is less than or equal to the total amount secured. The failure to satisfy this provision would not result in invalidation if the transferee provided value... Read more »

FinCEN Goes From 30 to 90 Days for Certain First Beneficial Ownership Reports

On November 29, 2023, the Financial Crimes Enforcement Network (“FinCEN”) of the U.S. Department of the Treasury published an amendment to its rule requiring certain entities not otherwise exempt to report their beneficial ownership, extending for entities established in 2024 the required reports from 30 days after establishment to 90 days. FinCEN will still require... Read more »