Major New Legal Developments

There have been several major new legal developments lately that either have happened or will take effect soon. 

In several cases, these developments reflect Biden administration officials working quietly behind the scene to change federal regulations in the face of Congressional gridlock. But, it has taken time for these efforts to bear fruit, because the regulatory process is quite slow. The other new developments are at the state level, which don't face the legislative gridlock seen in Congress.

* The federal FTC is banning non-competition agreements nationwide under a new regulation issued this week which will take effect in six months (October of 2024) unless a court rules otherwise. See, e.g., here. This is already the law in California.

* The federal National Labor Relations Board made a ruling in early 2023 that significantly limits the use of non-disparagement and confidentiality clauses in settlement agreements and severance packages with former employees under Section 8 of the National Labor Relations Act, which is one of the few provisions of that act that apply to employees who aren't in unions. The case is McLaren Macomb, 372 NLRB No. 58 (2023) (see more here). California has adopted legislation with a similar effect.

* Colorado enacted a new law, which will probably take effect on July 1, 2024, which prohibits residential landlords from not renewing periodic leases with no formal right to renew, without good cause. The full text of the act is here.

* The federal Corporate Transparency Act requires most closely held businesses to disclose their major and controlling owners to FINCEN, the federal anti-money laundering agency. Closely held businesses formed in 2024 must make the disclosure within 30 days of formation. Closely held businesses formed prior to 2024 must make the disclosure by the end of January 2025. The legislation is rather clunky, however, and the information disclosed will not be available to the general public.

* The federal regulatory process of reclassifying marijuana under the Controlled Substances Act, so that it is not a Schedule I drug, is underway and will be completed before the end of the current Presidential term. This means that marijuana can be prescribed as a drug without violating federal law (which the federal government has declined to enforce when state law authorizes it for man years). This makes it easier to do clinical studies of marijuana based drugs. This means that marijuana industry firms that are legal under state law can use the regular banking system. This means that marijuana use and businesses won't run afoul of contract and lease terms that require compliance with federal law. And, lastly, but hardly least, this means that 26 U.S.C. § 280E, which disallows tax deduction for marijuana dispensaries other than costs of goods sold, will no longer apply to marijuana businesses making them vastly more profitable after taxes (and probably significantly reducing the retail price of marijuana), but also reducing state tax revenues in states where state income taxes are based upon federal taxable income.

* Birth control pills are now available over-the-counter nationwide as a result of federal FDA regulations that were issued last July. This has been the case in Colorado for many years already.

* Via Boing Boing:

[T]he U.S. Department of Transportation announced a new rule requiring airlines to automatically provide full cash refunds when flights are canceled or drastically changed without haggling or jumping through hoops. "Passengers deserve to get their money back when an airline owes them – without headaches or haggling," declared Transportation Secretary Pete Buttigieg.

The refund mandate doesn't stop there. It also covers those maddening scenarios when you fork over extra cash for amenities like Wi-Fi or preferred seats, but the airline fails to deliver on its promises. No more getting stiffed – you'll get an automatic refund for any ancillary services not rendered. And finally, some justice for the lost luggage struggle: airlines will have to cough up that baggage fee if your checked bag is significantly delayed upon arrival.