ILS Weekly Strategic Insights

Overview

Firm News：

• ILS Wraps up China Seminars - Practical Guidance for Chinese Companies Entering the U.S. Market
• ILS Assists Bot Auto in Securing $20M in Pre-A Funding for Autonomous Trucking Technology

Legal Updates:

• DOL Releases AI & Inclusive Hiring Framework to Prevent Disability Discrimination
• New California Law Expands Local Enforcement of Employment Discrimination
• Governor Newsom Signs California Legislative Black Caucus Priority Bills, Issuing Formal Apology for State's Role in Slavery
• Wage and Hour Changes in Alabama, Maryland, and California: What Employers Need to Know
• California's New Law on Social Compliance Audits: What Employers Need to Know
• DOJ Updates Guidance on AI and Corporate Compliance: Key Takeaways for Businesses

Firm News

1. ILS Successfully Wraps Up China Seminars - Practical Guidance for Chinese Companies Entering the U.S. Market

The seminars, led by ILS Managing Partner Richard Liu and Partner Fiona Xu, were held in Shenzhen, Shanghai, and Hangzhou, attracting significant interest from listed companies, tech firms, and venture capital institutions across China. Richard and Fiona presented recent U.S. case studies and offered insights from their extensive experience, guiding Chinese companies on understanding the potential legal risks of expanding into the U.S. and the compliance requirements needed once operations are established.

2. ILS Has Successfully Assisted Bot Auto in Securing $20M in Pre-A Funding for Autonomous Trucking Technology

ILS is proud to have supported Bot Auto, a pioneering company in autonomous vehicle (AV) technology based in Houston, in successfully completing its oversubscribed Pre-A funding round, raising $20 million. This funding represents a significant milestone in Bot Auto's mission to revolutionize autonomous trucking by enhancing safety and operational efficiency. The ILS Transaction Team played a pivotal role throughout Bot Auto’s Pre-A financing, offering comprehensive legal counsel and support.

Legal Updates

1. DOL Releases AI & Inclusive Hiring Framework to Prevent Disability Discrimination

On September 24, 2024, the DOL launched the AI & Inclusive Hiring Framework, following President Biden's 2023 Executive Order that directed federal agencies to develop strategies for the safe and equitable deployment of AI. This initiative aims to support the use of AI to foster inclusivity, particularly for disabled job seekers, while ensuring that hiring practices comply with federal regulations.

2. New California Law Expands Local Enforcement of Employment Discrimination

Effective January 1, 2025, California employers will face an expanded compliance landscape with the introduction of Senate Bill (SB) 1340. Signed into law by Governor Gavin Newsom, this new legislation allows local governments to enforce employment discrimination laws that go beyond the protections offered by the state. Businesses will need to address compliance challenges beyond those set by California’s Fair Employment and Housing Act (FEHA) and the Unruh Civil Rights Act, as local agencies gain authority to enforce more stringent anti-discrimination regulations.

3. Governor Newsom Signs California Legislative Black Caucus Priority Bills, Issuing Formal Apology for State's Role in Slavery

Governor Gavin Newsom, joined by members of the California Legislative Black Caucus (CLBC), signed a series of impactful bills aimed at addressing systemic issues impacting Black Californians. This landmark legislation, including a formal apology for California’s role in slavery, marks a significant milestone in the state's ongoing commitment to racial equity and social justice. The newly signed bills cover critical issues such as food access, discrimination protections, maternal health, and educational support.

4. Wage and Hour Changes in Alabama, Maryland, and California: What Employers Need to Know

Significant wage and hour changes are coming into effect on October 1, 2024, and California’s healthcare minimum wage is set to increase soon.

Learn about:

• Alabama's new overtime pay exemptions from state income tax.
• Maryland's Wage Range Transparency Act, which brings more clarity to pay disclosures.
• California's upcoming minimum wage increases for healthcare workers.

5. California's New Law on Social Compliance Audits: What Employers Need to Know

Starting January 1, 2025, California employers will need to pay closer attention to the results of voluntary social compliance audits, especially when child labor practices are involved. Assembly Bill (AB) 3234, signed into law by Governor Gavin Newsom on September 22, 2024, introduces mandatory reporting requirements for employers who choose to undergo these audits. Although these assessments are voluntary, those who opt in must comply with new transparency rules.

6. DOJ Updates Guidance on AI and Corporate Compliance: Key Takeaways for Businesses

The U.S. Department of Justice (DOJ) has introduced important updates to its Evaluation of Corporate Compliance Programs, addressing how companies manage risks associated with artificial intelligence (AI). With AI increasingly integrated into corporate operations, federal prosecutors will now closely examine AI-related risks during criminal investigations and settlement negotiations. These updates, issued in September 2024, reflect the DOJ’s growing focus on ensuring companies responsibly manage AI risks in their compliance programs.

More Insights

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