Client Alerts

Our last Client Alert to the auto industry on January 19th broadly outlined areas involving trade laws that automakers should be aware of for 2021. Many of these involve potential changes in existing laws, practices, and policies that impact the automotive industry. Among the most important of these are tariffs imposed on imports from China pursuant to Section 301 of the Trade Act of 1974.

Starting April 3, 2017, the United States Citizenship and Immigration Services (“USCIS”) will temporarily suspend premium processing for all H-1B petitions. This suspension may last up to 6 months. Because Fiscal Year 2018 cap-subject H-1B petitions cannot be filed before April 3, 2017, this suspension will apply to all petitions filed under H-1B regular cap and master’s cap for this year. The suspension also applies to cap exempt petitions, extensions, and amendments. Under premium processing employers have been able to have a decision made on their H-1B Petitions in 15 calendar days for an additional fee of $1225. Regular processing of H-1B petitions can take several months. The unavailability of premium processing may result in significant issues for employees including the ability to travel and obtain new visas. Some States such as Michigan also limit the expiration of the driver’s license to the expiration of the immigration status. The unavailability of premium processing will affect an H-1B worker’s ability to seek renewal of his or her driver’s license.

To keep abreast of important developments in the automotive industry in 2021, last week we provided the first of a series of regular updates.  Last week, we focused on “Research and Development Opportunities Expand for US Vehicle and Equipment Manufacturers”.  This week, we begin the first of a series of Client Alerts on various trade-related issues that we expect the automotive industry (and others) to face in 2021.

FCA issued new terms and conditions effective January 1, 2021. The only material changes are to Section 13, governing service part supply and pricing obligations. Unfortunately for suppliers, the changes increase their service part obligations. 

When Congress enacted the Paycheck Protection Program (“PPP”) through the CARES Act in March 2020 in response to the COVID pandemic, businesses rushed to apply for this federal aid to bridge them through the initial lockdowns and operational restrictions imposed across the country. 

On December 22, 2020, the U.S. Securities and Exchange Commission sent shockwaves through the digital asset industry with a Southern District of New York action alleging that Ripple Labs, Inc. improperly raised over $1.3 billion through a years’ long unregistered securities offering.

Michigan property owners will be receiving their real property tax Notice of Assessment within the next few weeks.  Property owners may find that they are being assessed using inflated taxable values, especially in light of the pandemic and if they have not recently appealed their property tax assessments.

2020 saw an increase in enforcement action by the Department of Health & Human Services, Office of Civil Rights (“OCR”) regarding noncompliance with the HIPAA Privacy, Security and Breach Notification Rules, with penalties ranging from $3,500 to $6.85 million.

A recent decision by the Court of Appeals for the Sixth Circuit conclusively answered that question with a clear “no.” 

Many businesses seeking ways to manage the risk of litigation, especially class action litigation, have turned to contractual clauses requiring mandatory individual arbitration, meaning that any claim must be arbitrated, not litigated, and must be arbitrated only on an individual basis, not on a class basis. 

Businesses financially impacted by the COVID-19 pandemic may be eligible for the Employee Retention Credit (the “Credit” or “ERC”).  This Credit, a refundable tax credit intended to provide economic relief, was originally enacted as part of the CARES Act and recently modified by the Consolidated Appropriations Act, 2021 (“2021 Appropriations Act”) (H.R. 133) signed into law on December 27, 2020.

Last week, we provided a forecast of topics that are on the horizon for 2021. As predicted, the landscape is changing to allow for fewer restrictions on the development of electrification and automated driving systems.

10, 9, 8, 7, 6, 5, 4, 3, 2, 1 - - Happy New Year!! When the clock struck midnight on December 31st, the Families First Coronavirus Response Act (FFCRA), including the benefits provided under the Emergency Paid Sick Leave Act (“EPSLA”) and the Emergency FMLA Expansion Act (“EFMLEA”) automatically expired.

By now, President-Elect Biden’s aversion to employee non-compete agreements is well-known.  So too is the notable bipartisan interest within Congress to scale back the enforceability of such agreements nationwide. 

The first bit of news in 2021 is about what didn’t happen at the end of 2020…the automotive manufacturing plants did not shut down for their normal two-week holiday pause and production continued at near full capacity.

As 2020 draws to a close, multiple industries face instability in their supply chains.  The causes vary, ranging from COVID-induced labor shortages, to surging demands for steel and other raw materials, with shortages of supply, to logistical and capacity constraints in the transportation sectors, to widespread financial distress.

On Sunday, December 27, 2020, President Trump signed the COVID-19 Economic Relief Bill into law.

When one agrees to a contractual agreement, he or she should focus on the clause selecting the forum for potential future disputes. There are two types of forum-selection clauses: permissive clauses and mandatory clauses. While permissive forum-selection clauses authorize jurisdiction and venue in a designated forum without excluding litigation elsewhere, mandatory forum-selection clauses exclusively designate a specific jurisdiction and venue for future disputes.

A USMCA Technical Amendment to the FY21 Omnibus Appropriation/Covid Relief Act allows post importation refunds of the Merchandise Processing Fee (MPF) for the United States Mexico Canada Agreement (USMCA) participants.

On December 10, 2020, the Department of Health and Human Services (HHS), Office of Civil Rights (OCR) issued proposed changes to the HIPAA Privacy Rule in furtherance of HHS’s Regulatory Sprint to Coordinated Care.