On December 26, 2024, the merits panel of the Fifth Circuit Court of Appeals vacated the stay of the district court’s preliminary injunction enjoining enforcement of the Corporate Transparency Act (the “CTA”) and the reporting requirements thereunder that was issued earlier this week by the motions panel of the Fifth Circuit Court of Appeals. This means that the nationwide preliminary injunction issued by the district court on December 3, 2024 is back in effect and, for the time being, Reporting Companies are not required to comply with the Act or file Beneficial Ownership Information Reports (“BOI Reports”).
On Monday, December 23, 2024, a federal appeals court issued a stay on the nationwide preliminary injunction previously issued by a federal district court on December 3, 2024. This new ruling means that the Corporate Transparency Act (the “Act”) and the reporting requirements thereunder are back in effect for the time being, pending appeal.
Recent decisions from Texas District Courts have an immediate impact in New York and across the country. Businesses should take note.
In the first ruling, the Court issued a nationwide preliminary injunction prohibiting the federal government from enforcing the Corporate Transparency Act (the “CTA”) and the beneficial ownership information reporting requirements under the CTA (including the upcoming January 1, 2025 reporting deadline for all companies formed before 2024). The court ruled that Congress exceeded its authority in enacting the CTA and, accordingly, until further court rulings or administrative actions are issued, businesses do not have to file beneficial ownership information reports (“BOIs”) with FinCEN. For businesses that have already filed BOIs, no immediate action is required and no further compliance steps need to be taken at this time. For those businesses that have not yet filed BOIs, the nationwide injunction means that no businesses are currently required to comply with the CTA so businesses can delay filing of BOIs for the time being.
The Corporate Transparency Act now requires certain entities to file a Beneficial Ownership Information Report (“BOI Report”) with the US Treasury’s Department of Financial Crimes Enforcement Network (“FinCEN”). This document is intended to give you an overview of the new reporting requirement. Please contact your HH&K attorney with any questions or for more information.
In October 2021, Governor Hochul signed a bill making changes to New York’s Whistleblower Statutes (New York Labor Law Sections 740 and 741). As those changes go into effect today, employers may need to act quickly to make changes to comply with the new requirements.
The Occupational Health and Safety (OSHA) Emergency Temporary Standard (ETS) requiring businesses with 100 or more employees to either require employees to become fully vaccinated or test weekly is back. Late Friday, the Sixth Circuit Court of Appeals lifted the injunction against the ETS.
