New England Biz Law Update

Many small businesses have delayed implementing the identity theft “red flags” rules despite the approaching June 1 deadline — not because they do not know about them, but because there have been so many extensions to the deadline that companies have put them on the back burner.

A cleaning service company that claimed it was merely in the business of selling franchises to third parties misclassified its franchisees as independent contractors in violation of M.G.L.c. 149, §148B, a U.S. District Court judge in Massachusetts has ruled.

A terminated employee could hold her employer liable for age discrimination based on a single comment allegedly made by her supervisor, a U.S. District Court judge has ruled.

Could affect hundreds of employment cases

The U.S. District Court in Massachusetts could hear both compulsory and permissive counterclaims filed by a telecommunications company in response to a federal suit to block enforcement of a state administrative order, the 1st U.S. Circuit Court of Appeals has found in a case of first impression.

A recent ruling from a federal judge marks the first time any court in the country has found that whistleblower protections apply to those working in the mutual fund industry, according to several lawyers familiar with the case.

Less drastic than earlier effort, but still draws fire

Apple’s tablet computer has been on the market only about a month, but a few lawyers are already putting it through its paces.

Enterprise risk management, or ERM, continues to be a “hot topic” in the legal press, in CLE programs, in webinars and certainly in Compliance Week. Like a dog with a bone, the securities law and corporate governance communities are gnawing away, until the last ounce of marrow is sucked free and digested.

M&A acquirers in Massachusetts may be surprised to learn that even when they pay a substantial price at closing, courts may still require them to continue to invest more in the business after the purchase if the contract includes an earn-out for the seller based on future results. This is true even when the contract says nothing about such an obligation.