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Thirty-four states have enacted security breach notification laws. And Michigan passed such a law with an effective date of July 2, 2007. These laws cover the notification that a company must make in the event of a breach of security of its system with respect to computerized personal information. How are these laws enforced in the event of a violation? These laws vary in terms of enforcement and penalties, as more particularly described below. This article provides an overview of the enforcement of these laws and describes examples of penalties.
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In today's litigation world, corporate counsel struggle to contain the ever-increasing costs of document discovery. The explosion of electronically stored information ('ESI') is often a huge contributor to the expense of discovery. Consultants, vendors, and e-discovery software can help bring greater efficiencies and cost-savings to the process. But while there is a dizzying array of options available, they are not all created equal. Finding the right solution requires that you do your homework.
A federal judge sitting in Philadelphia has struck down the 1998 Child Online Protection Act ('COPA') on March 22. The Act was challenged as unconstitutionally vague by health Web sites and the American Civil Liberties Union ('ACLU').
On Jan. 22, 2007, after more than a decade of study, the FTC released its long-anticipated new Federal Trade Commission Rule on Franchising. This article outlines the key elements of the New Rule. The New Rule changes the coverage of the existing FTC Rule.
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Recent rulings that may affect your business.
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Employers go to great lengths and expense to reduce their potential exposure to employment-related claims. Most employers implement policies to address the myriad and growing federal, state, and local employment laws; regularly conduct employee EEO training; hire qualified human resources professionals and in-house attorneys with expertise in employment law; and regularly seek advice and assistance from outside counsel concerning these prophylactic measures. The purpose of this article is to apprise readers of a fast, simple, and inexpensive way to reduce their exposure to certain types of employment-related claims through the inclusion of an express waiver ('Waiver') in an employment application or other document signed by applicants or employees. The Waiver contractually reduces to six (6) months the time period within which certain types of employment-related claims must be filed and waives any statute of limitations to the contrary, thereby significantly reducing the number of timely-filed claims and, consequently, the employer's potential exposure.
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The Privacy Rights Clearinghouse estimates that over 100 million records containing sensitive personal information have been involved in security breaches. This non-profit consumer organization has tracked these breaches on its website (www.privacyrights.org) beginning with the significant and well-publicized ChoicePoint breach in February 2005. As a result, over two-thirds of states enacted security breach notification laws governing the notification that a company must make in the event of a security breach. This article outlines the requirements for providing notification of a security breach under state security breach notification law by any company and the factors that a public company needs to take into account regarding whether to disclose a security breach under federal securities law.
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When the dust settles from the current round of discussions on increasing the federal minimum wage, the lowest paid of the country's non-exempt employees may or may not be earning an additional dollar or two per hour. Either way, the debate will have drawn the country's ' and the plaintiffs' bars' ' attention toward the lowest paid of our country's workers, and the climate will be right for those attorneys to begin focusing not only on how much non-exempt employees are being paid per hour, but also on whether these workers are being paid in a manner that is consistent with every intricate (and often contrary-to-common-sense) twist and turn of federal and state law.
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Historically, when a health care company had a compliance failure, counsel could help it remain in business by negotiating with the relevant agency. If the problem involved sales, marketing or pricing, the company could seek a Corporate Integrity Agreement (CIA) with the Office of Inspector General (OIG) at Health and Human Services (HHS). If the problems related to manufacturing, counsel could obtain a consent decree of permanent injunction ('consent decree') with the Food and Drug Administration (FDA) under the Food Drug and Cosmetic Act (FDCA). Consent decrees and CIAs each had their particular burdens and benefits, which health care practitioners had learned to navigate. Now this tidy distinction has become blurred as the FDA has borrowed features from HHS's CIAs.
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In this age of regulatory and prosecutorial focus on corporate compliance, companies increasingly are relying on special outside counsel to conduct internal investigations into potential wrongdoing. Sometimes, these investigations are prophylactic: A company may want to understand the consequences of its current hiring practices so it can develop standard operating procedures to better ensure compliance with anti-discrimination laws. Because this sort of proactive, self-reflective investigation generally proceeds without outside scrutiny, counsel has the time and space to conduct a deliberate investigation.