California Pay Reports Are Due on May 14—Are You Ready?
All 2024 California pay data reporting filings are due to be filed no later than May 14, 2025. Failing to meet this deadline could subject employers to fines or penalties of up to $100 per employee for a first violation and up to $200 per employee for a second violation.
Quick Hits
The deadline for filing 2024 California pay data reports is May 14, 2025.
California requires that covered employers file payroll employee and labor contractor employee reports.
Both reports require demographic information, pay data, and work hours for covered employees and labor contractor employees.
With less than a month left to complete the 2024 pay data filings, employers with a presence in California may want to note that the filing threshold for these reports is low, such that having a single payroll employee working remotely in California may require the filing of the payroll employee report.
Specifically, an employer with one hundred or more W-2 employees working anywhere in the United States, with at least one employee working in California, is required to file a payroll report. Likewise, an employer with one hundred or more labor contractor employees anywhere in the United States, with at least one working in California, is required to file the labor contractor report. More specifics on the jurisdictional requirements and definition of a California employee/labor contractor employee can be found here.
Based on the enactment of Senate Bill No. 1162 in 2022, the Civil Rights Department (CRD) of the State of California can now seek civil penalties of $100 per employee against an employer that fails to file a required report. The penalties increase to $200 per employee for a subsequent failure to file a required report. CRD is also entitled to recover its costs in any enforcement action. For an employer with a sizeable California workforce, these penalties could be significant.
Employers that have not completed their 2024 pay data filings may want to begin preparations by gathering the necessary information so that they can complete an on-time filing by May 14. More information about the 2024 filings, including changes, can be found here and here.
New York AG Sues Earned Wage Access Companies for Allegedly Unlawful Payday Lending Practices
On April 14, New York Attorney General Letitia James announced two separate lawsuits against earned wage access providers—one against a company that issues advances directly to consumers, and another targeting a provider that operates through employer partnerships. Both actions allege that the companies engaged in illegal payday lending schemes, charging fees and tips that resulted in annual percentage rates (APRs) far in excess of New York’s civil and criminal usury caps.
The lawsuits assert violations of New York’s civil and criminal usury laws, which cap interest at 16% and 25%, respectively. According to the AG, the companies’ flat fees and “voluntary” tipping features amounted to de facto interest that routinely exceeded those thresholds. Both lawsuits also allege deceptive business practices and false advertising in violation of New York’s General Business Law, as well as abusive and deceptive acts and practices under the federal Consumer Financial Protection Act. In both cases, the AG alleges that the companies trap workers in cycles of dependency through frequent, recurring advances.
The lawsuit against the employer-partnered provider alleges that the company:
Imposed high fees on small-dollar, short-term advances. These fees allegedly resulted in effective APRs that often exceed 500%, despite claims that the advances are fee-free or interest-free.
Diverted wages through employer-facilitated repayment. The company allegedly required workers to assign wages and routed employer-issued paychecks directly to itself, ensuring collection before workers received their remaining pay.
Marketed the product as an employer-sponsored benefit. By leveraging exclusive partnerships, the company allegedly positioned its product as a no-cost financial wellness tool, downplaying costs and repayment risks.
The lawsuit against the direct-to-consumer provider alleges that the company:
Extracted revenue through manipulative tipping practices. Consumers were allegedly nudged to pay pre-set tips through guilt-driven prompts and fear-based messaging, which the company treated as interest income.
Automated repayment from linked bank accounts. The provider allegedly pulled funds as soon as wages were deposited, often before consumers could access them.
Used per-transaction caps to drive repeat usage. Consumers were allegedly forced to take out multiple advances and pay multiple fees to access their full available balance, magnifying the cost of each lending cycle.
Putting It Into Practice: These lawsuits reinforce a growing trend among states to impose consumer protection requirements—particularly around fee disclosures and repayment practices—regarding earned wage access products (previously discussed here). State regulators continue to increase their scrutiny of EWA providers’ business models and marketing tactics. In addition, this is perhaps the first case we have seen with a state attorney general bringing an action under the CFPA (see our related discussion here about this topic). Depending on how this case proceeds, we can expect to see more cases under the federal statute.
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In Welcome News for Tax Whistleblowers, IRS Whistleblower Office Releases Operating Plan
Today, the Internal Revenue Service (IRS) Whistleblower Office released its first-ever multi-year operating plan, “outlining guiding principles, strategic priorities, recent achievements and current initiatives to advance the IRS Whistleblower Program.”
“This is welcome news for IRS whistleblowers whose cases languish for years, sometimes up to a decade or more, before the whistleblower can be paid an award,” says David Colapinto.
“This is an important step forward,” adds Stephen M. Kohn. “This is a critical program that has been held back by antiquated regulations. It’s time to modernize the program and effectively prosecute tax evaders.”
The plan lays out six strategic priorities:
Enhance the claim submission process to promote greater efficiency.
Use high-value whistleblower information effectively.
Award whistleblowers fairly and as soon as possible.
Keep whistleblowers informed of the status of their claims and the basis for IRS decisions on claims.
Safeguard whistleblower and taxpayer information.
Ensure that our workforce is supported with effective tools, technology, training and other resources.
“Of particular interest to the whistleblower community is the IRS’ emphasis on increasing efficiencies to speed up the process and issuing whistleblower awards faster and as soon as possible,” Colapinto adds.
“While paying whistleblower awards can incentivize other whistleblowers to report major tax fraud by wealthy tax cheats, the failure to pay whistleblower awards timely by taking over a decade to make payments, can act as a disincentive to blowing the whistle,” Colapinto adds. “This is an important step towards making the IRS whistleblower program more effective. To date, the IRS reports that it has collected more than $7.4 billion in taxes attributable to whistleblowers reporting tax fraud and underpayments. The IRS Whistleblower Program has potential to collect even more if it improves its program to encourage more whistleblowers to come forward.”
Modernized in 2006, the IRS Whistleblower Program offers monetary awards to whistleblowers who voluntarily provide original information about tax noncompliance. While the program has resulted in the collection of billions of dollars, in recent years payouts to whistleblowers have dipped while the processing time for award payments have risen to over 11 years on average.
Since taking over as the Director of the IRS Whistleblower Office in 2022, John Hinman has overseen a number of administrative reforms aimed at making the program more efficient and effective, including increasing staffing at the office and disaggregating whistleblower claims to speed up award payouts.
While the newly released operating plan promises to make needed changes to the IRS Whistleblower Program, Congressional reforms are also needed. In January, Senators Ron Wyden (D-OR) and Mike Crapo (R-ID) unveiled a discussion draft of a bipartisan IRS reform bill which contains reforms to the IRS Whistleblower Program previously found in the IRS Whistleblower Improvement Act of 2023.
Geoff Schweller also contributed to this article.
Federal Judge Order Suspends Termination of Cuban, Haitian, Nicaraguan, and Venezuelan (CHNV) Parole Program
On April 14, 2025, a Massachusetts federal district court judge issued a temporary nationwide order suspending the U.S. Department of Homeland Security’s (DHS) termination of the Cuba, Haiti, Nicaragua, and Venezuela (CHNV) parole program. The termination was set to take effect on April 24, 2025, and would have ended parole authorization and any associated benefits, including work authorization for individuals in the United States under the CHNV parole program. The judge’s decision stays or suspends the categorical cancellation of this program.
Quick Hits
A federal district court judge has issued a temporary nationwide order halting the U.S. Department of Homeland Security’s termination of the Cuba, Haiti, Nicaragua, and Venezuela (CHNV) parole program, which was set to end on April 24, 2025.
This decision allows individuals under the CHNV parole program to stay in the United States and maintain their work authorizations until their current parole periods expire.
The court’s order provides temporary relief while further litigation is pending, but individuals will need to seek alternative immigration options to remain in the United States beyond their parole periods.
Background
Section 212(d)(5)(A) of the Immigration and Nationality Act (INA) authorizes the secretary of homeland security, at the secretary’s discretion, to “parole into the United States temporarily under such conditions as he [or she] may prescribe only on a case-by-case basis for urgent humanitarian reasons or significant public benefit any alien applying for admission to the United States.” Parole allows noncitizens who may otherwise be inadmissible to enter the United States for a temporary period and for a specific purpose.
The Biden administration implemented a temporary parole program for Venezuelans in October 2022, and later expanded the parole program to include Cubans, Haitians, and Nicaraguan nationals in January 2023. Individuals within this program apply for an Employment Authorization Document (EAD) in the (c)(11) category. The Biden administration announced in October 2024 that it would not extend legal status for individuals who were permitted to enter the United States under the CHNV parole program, but encouraged CHNV beneficiaries to seek alternative immigration options.
On March 25, 2025, DHS published a Federal Register notice announcing the immediate termination of the CHNV parole program. The termination was set to take effect within thirty days of the date of publication of the notice, or April 24, 2025. On April 14, U.S. District Court Judge Indira Talwani, of the U.S. District Court for the District of Massachusetts, issued a nationwide order staying or temporarily suspending the implementation of the categorical termination of the CHNV parole program.
Key Takeaways
Pending further litigation, the federal district judge’s order results in the following:
Individuals paroled into the United States pursuant to the CHNV parole programs may remain in the United States through their originally stated parole end date.
Employment Authorization Documents (EADs) issued to individuals admitted under the CHNV parole programs will remain valid through the expiration date listed on the EAD.
Individuals seeking to remain in the United States past the expiration of their parole periods must seek an alternative immigration status to remain in the United States.
Competition Currents | April 2025
In This Issue1
United States | Mexico | The Netherlands | Poland | Italy | European Union
United States
A. Federal Trade Commission (FTC)
1. FTC staff reaffirms opposition to proposed Indiana hospital merger.
On March 17, 2025, the FTC advised the Indiana Department of Health to deny the merger application of Union Hospital, Inc. (Union Health) and Terre Haute Regional Hospital, L.P. (THRH). According to the FTC’s comment letter, this second attempt to merge under a proposed certificate of public advantage (COPA) has the same anticompetitive harms as their original application. The FTC warned that the merger poses substantial anticompetitive risks, such as higher healthcare costs for patients and lower wages for hospital workers. In September 2024, the FTC issued a similar letter opposing the same parties’ proposed COPA, which the parties later withdrew in November 2024.
2. FTC launches joint labor task force to protect American workers.
A newly established Joint Labor Task Force as of Feb. 26, 2025, consisting of the FTC’s Bureau of Competition, Bureau of Consumer Protection, Bureau of Economics, and Office of Policy Planning, will focus on identifying and prosecuting deceptive, unfair, and anticompetitive labor-market practices that negatively impact American workers. The task force will also work on developing information-sharing protocols between the FTC’s bureaus and offices to exchange best practices for investigating and uncovering such practices, as well as promoting research on harmful labor-market issues to guide both the FTC and the public. The FTC chairman created the Joint Labor Task Force to streamline the agency’s law-enforcement efforts and ensure labor issues are prioritized in both consumer protection and competition-related matters.
3. FTC approves final order requiring building service contractor to stop enforcing a no-hire agreement.
The FTC, on Feb. 26, 2025, has finalized a consent order that mandates Planning Building Services and its affiliated companies to cease enforcing no-hire agreements. In January 2025, the FTC filed a complaint against Planned Building Services, Inc., Planned Security Services, Inc., Planned Lifestyle Services, Inc., and Planned Technologies Services, Inc., collectively known as Planned Companies (Planned). The complaint claimed that the companies used no-hire agreements to prevent workers from negotiating for higher wages, better benefits, and improved working conditions. Under the final consent order, Planned must stop enforcing no-hire agreements, both directly and indirectly, and must not inform any current or potential customer that a Planned employee is bound by such an agreement. The order also requires Planned to eliminate no-hire clauses from their customer contracts and notify both customers and employees that the existing no-hire agreements are no longer enforceable.
B. U.S. Litigation
1. D’Augusta v. American Petroleum Institute, Case No. 24-800 (U.S. Mar. 31, 2025).
On March 31, 2025, the U.S. Supreme Court refused to take up a putative class action alleging that the governments of Russia, Saudi Arabia, and the United States entered into an anticompetitive agreement in 2020 to cut oil production. According to the lawsuit, the multinational agreement arose during the height of the COVID-19 pandemic, when oil prices declined substantially due to decreased demand. In dismissing the case, the Ninth Circuit held that any alleged agreement between foreign nations and the U.S. government were matters of foreign policy and therefore outside of the judicial branch’s jurisdiction. As is tradition, the U.S. Supreme Court did not issue a separate opinion explaining its reasons for refusing to consider the appeal.
2. Dai v. SAS Institute Inc., Case No. 4:24-cv-02537 (N.D. Cal. Mar. 24, 2025).
On March 24, 2025, the Honorable Judge Jeffrey S. White dismissed allegations brought against SAS Institute, Inc., the creator of an artificial intelligence algorithm that others allegedly used to fix hotel prices. According to the complaint, subsidiary IDeaS Inc. licensed SAS’s software to various hotel chains, whom plaintiffs claim used the algorithm to set increased room rates nationwide. While Judge White did not issue an opinion regarding the remaining defendants’ pending motions to dismiss, he stated that at least with respect to SAS, there is no allegation or proof of a direct contract between SAS as a parent company and these hotel chains, and the mere fact that SAS’s software allegedly “powered” the anticompetitive activity was not enough to make it a defendant.
3. State of Tennessee v. National Collegiate Athletic Association, Case No. 3:24-cv-00033 (E.D. Tenn. Mar. 24, 2025).
Also on March 24, a federal district judge in the Eastern District of Tennessee approved the settlement of a class action that four states and the District of Columbia brought against the National Collegiate Athletic Association (NCAA). The states brought the suit on behalf of their respective colleges and universities to challenge the NCAA’s rule that prohibited those schools from marketing potential name, image, and likeness (NIL) compensation to prospective athletes as part of the school’s recruitment. According to the settlement, the NCAA will cease enforcing its existing rules that prevent athletes from learning about or negotiating potential NIL contracts as part of college recruitment.
4. Davitashvili v. Grubhub, Inc., Case No. 23-521 and 23-522 (2d Cir. Mar. 13, 2025).
On March 13, 2025, a divided Second Circuit held that while food delivery service Uber Technologies Inc. could force customers to arbitrate “the arbitrability” of their antitrust claims, a court would decide if fellow defendant and competitor Grubhub Inc.’s antitrust claims were subject to the arbitration. The appeals arise out of allegations that both Uber and Grubhub require restaurants to agree not to sell food at lower prices than those offered on their platforms, which plaintiffs claim resulted in increased prices to consumers. According to the court, the differing results arise in part because Uber’s terms of service more clearly state that the question of whether antitrust suits are subject to the arbitration clause is itself a question that is left to the arbitrator, whereas Grubhub’s terms of service fail to sufficiently require an arbitrator to determine questions of arbitrability. In a dissenting opinion, the Honorable Judge Richard J. Sullivan disagreed with the majority’s conclusion that claims against Grubhub were “unrelated” to consumers’ use of the app, noting that “what gave Grubhub the market power to commit the alleged antitrust violations” was the very fact that consumers used the app.
Mexico
SCJN endorses COFECE’s fine against Aeromexico; emails were key in the decision.
The Second Chamber of the Supreme Court of Justice of the Nation (SCJN) has ratified the investigative powers of the Federal Economic Competition Commission (COFECE), concluding more than five years of litigation Aeromexico initiated.
The airline had challenged a fine of MEX 88 million ($4.21 million) that COFECE imposed in 2019 for colluding to manipulate airline ticket prices on several routes, affecting more than 3 million passengers. The Second Chamber ultimately confirmed the sanction.
In this and other cases, much of the evidence against Aeromexico was obtained through surprise verification visits, a key tool of COFECE. These visits allow access to the offending companies’ offices to collect crucial physical and electronic evidence that may otherwise be destroyed. During one of these visits, COFECE found emails between airline executives, where, using nicknames, codes, and false email addresses, they allegedly conspired to manipulate prices.
Aeromexico argued before the SCJN that these emails were “private communications” and, therefore, could not be used as evidence. However, the Second Chamber determined that these communications are not protected by the right to privacy and can be used to investigate and sanction monopolistic practices that affect consumers, especially when it comes to commercial communications between companies or their personnel.
The Netherlands
A. Dutch ACM Statements
1. ACM provides guidance for car dealership concentrations.
The Dutch competition authority (ACM) has issued a detailed guideline outlining its approach to assessing mergers and acquisitions within the car dealership sector. This guideline aims to provide clarity to the industry by offering a step-by-step overview of the information car dealerships must submit and the analyses they must conduct when filing merger notifications. The objective is to ensure an efficient and precise evaluation process for both the ACM and the companies involved.
To minimize administrative burdens on businesses, the guideline introduces threshold values. Companies operating below these thresholds need only provide a straightforward market share analysis. For companies exceeding these thresholds, further procedural steps are outlined. This approach is designed to support companies in complying with notification requirements efficiently.
2. ACM may investigate possible violations under the Digital Markets Act.
The ACM now has the authority to investigate compliance with the Digital Markets Act (DMA). This European legislation, in effect since May 2023, aims to foster competition in digital markets and provide better protection for consumers. The DMA imposes obligations on major digital platforms, known as “gatekeepers.” Key obligations for gatekeepers include offering fair terms in app stores, providing businesses free access to their own data, and ensuring interoperability between apps and hardware. The ACM will work closely with the European Commission (“EC”) through joint investigative teams to address these matters.
The ACM is authorized to investigate complaints from businesses facing access issues with these platforms and collaborates with the EC, which holds exclusive enforcement powers under the DMA. Since the Dutch implementation law took effect March 10, 2025, the ACM has gained investigative authority. The ACM encourages businesses to report any difficulties encountered with gatekeepers.
3. ACM investigates the acquisition of Ziemann Nederland by Brink’s and is advocating for a ‘call-in power.’
The ACM has initiated an investigation into the recent acquisition of Ziemann Nederland by Brink’s, a leading player in the Dutch cash-in-transit sector. As a result of the takeover, Ziemann will exit the Dutch market, heightening the ACM’s concerns regarding reduced competition.
Brink’s has stated that the acquisition did not require prior notification to the ACM as the turnover thresholds were not met. However, the ACM is now examining whether the transaction may breach competition laws, including the prohibition on abusing a dominant market position. Furthermore, the ACM is advocating for a ‘call-in power,’ which would enable it to investigate smaller acquisitions that may have adverse effects, even if they fall below the turnover thresholds. Such a measure would enhance the ability to address market power and its associated risks, both at the national and European levels.
B. Dutch Court Decision
Dutch Supreme Court to rule on follow-on claims from a single, continuous breach of European competition law.
The central issue in this case concerns the determination of the applicable law for claims seeking damages resulting from a single and continuous infringement of the European cartel prohibition under Article 101 TFEU, known as follow-on claims. The dispute involves cartel damages stemming from an international cartel of airlines that coordinated prices for fuel and security surcharges between 1999 and 2006. The EC has previously issued fines to the airlines involved, while claims-vehicles Equilib and SCC are seeking compensation on behalf of the affected parties.
Both the lower court and the court of appeals ruled that Dutch law applies to these cartel damage claims under the Unjust Act Conflicts Act (WCOD). The court of appeals held that a single and continuous infringement gives rise to one damages claim per injured party, regardless of the number of transactions that party undertakes. It also noted that the WCOD contains a gap in cases where multiple legal systems could govern a single-damages claim. The court suggested that this gap may be addressed by allowing a unilateral choice of law, in line with Article 6(3) of the Rome II Regulation.
The case is now before the Supreme Court, which is questioning whether the concept of a “single and continuous infringement” should be defined under European Union law or whether this determination is left to the member states’ national laws. The Supreme Court is considering referring a preliminary question to the Court of Justice of the European Union (CJEU). The proposed question seeks to establish whether EU law, particularly the principle of effectiveness, mandates that a single and continuous infringement be treated as a single wrongful act resulting in one damage-claim per injured party, or whether member states are permitted to classify each transaction as separate damages claim.
Poland
A. UOKiK Continuous Enforcement Actions Against RPM Agreements
In the March edition of Competition Currents, we reported on the continued interest of the President of the Office of Competition and Consumer Protection (UOKiK President) in resale price maintenance (RPM) agreements, and the actions taken in the last year. UOKiK’s scrutiny of RPM remains strong and in recent weeks, UOKiK has taken further enforcement actions.
1. Fines imposed on Jura Poland and retailers for coffee machine resale price maintenance.
The UOKiK President has imposed fines exceeding PLN 66 million (approx. EUR 16 million/USD 18 million) on Jura Poland and major electronics retailers for engaging in a decade-long price-fixing scheme regarding Jura coffee machines. Additionally, a top executive at Jura Poland faces a personal fine of nearly PLN 250 thousand (approx. EUR 60 thousand/USD 65 thousand).
According to the UOKiK President, Jura Poland, the exclusive importer of Jura coffee machines, colluded with its retail partners to maintain minimum resale prices, preventing consumers from purchasing them at lower prices. The agreement covered both online and in store sales and extended to promotional pricing and bundled accessories.
Evidence gathered through on-site inspections revealed that Jura Poland was actively monitoring compliance, pressuring retailers to adhere to fixed prices under the threat of supply restrictions or contract termination. The scheme’s communication channels included emails, phone calls, messaging apps, and SMS messages.
The anti-competitive arrangement reportedly lasted from July 2013 to November 2022. The UOKiK President imposed fines of PLN 30 million (approx. EUR 7.1 million/USD 7.7 million) on the owner of one retailer, and of PLN 12.2 million (approx. EUR 2.8 million/USD 3.1 million) on Jura Poland. The other retailers received fines ranging from PLN 6.5 million (approx. EUR 1.5 million/USD 1.6 million) to PLN 10.5 million (approx. EUR 2.5 million/USD 2.7 million).
The decision is not yet final and can be appealed to the Court of Competition and Consumer Protection.
2. UOKiK investigates alleged collusion in agricultural machinery sales.
The UOKiK President has launched two antitrust investigations into potential collusion in the sale of agricultural machinery. The first investigation is focusing on major brands in the industry. The second investigation concerns the Claas brand. Allegations of market sharing and price fixing, which may lead to higher costs for farmers, have been made against 15 companies and two executives.
The UOKiK President suspects that dealers were assigned exclusive sales territories, restricting farmers from purchasing machinery outside the designated areas. Customers who attempted to buy from other dealers may have been redirected or offered less favorable prices. Additionally, businesses allegedly exchanged pricing information to discourage cross-regional sales.
If the UOKiK proceedings confirm competition-restricting agreements, the companies could face fines of up to 10% of their annual turnover, while managers risk penalties of up to PLN 2 million (approx. EUR 479 thousand/USD 517 thousand). Under Polish law, anticompetitive provisions in agreements are invalid. Entities suffering harm as a result of an anticompetitive agreement may also seek damages in civil court.
B. UOKiK imposes fines for obstruction of investigation and dawn raids
Companies failing to cooperate with the UOKiK President may face severe penalties. Under Polish law, non-disclosure of the required information may result in penalties of up to 3% of the company’s annual turnover. Sanctions for procedural violations during proceedings, particularly for obstructing or preventing the conduct of an inspection or search, may be imposed on managers, with a financial penalty of up to 50 times the average salary (approx. PLN 430,000/EUR 103,000/USD 109,000).
Last month, the UOKiK President issued three decisions, imposing a total of PLN 1.1 million (approx. EUR 263,000/USD 284,000) in fines.
Another case concerned suspected bid-rigging in the supply of cooling and ventilation equipment. M.A.S. executives refused to grant UOKiK access to the work phones and email accounts of two employees involved in the case. One employee’s data was submitted with a two-month delay, while the other’s was never provided. As a result, the UOKiK President issued two decisions with fines: PLN 350,000 (approx. EUR 84,000/USD 90,000) on M.A.S. and PLN 50,000 (approx. EUR 12,000/USD 13,000) on its CEO. The fine imposed on M.A.S. was relatively high, amounting to approximately 2% of the company’s turnover, while the maximum possible fine was 3%.
Italy
Italian Competition Authority (ICA)
1. Update of turnover thresholds for concentration notifications.
On March 24, 2025, the ICA increased the first of two cumulative turnover thresholds that determine when preventive notification of concentrations becomes mandatory. This threshold, which concerns the total national turnover generated by all companies involved in a transaction, was raised from EUR 567 million to EUR 582 million. The second threshold, which requires at least two of the involved companies to individually generate a national turnover of EUR 35 million, remains unchanged.
2. New guidelines on applying antitrust fines.
On March 10, 2025, following a public consultation, ICA adopted new guidelines on fines, aimed at enhancing the deterrent effectiveness of its sanctioning activities. The innovations include:
the introduction of a minimum percentage, equal to 15% of the sales value, for price-fixing cartels, market allocation, and production limitation cartels;
the possibility of increasing the sanction by up to 50% if the responsible company has particularly high total worldwide turnover relative to the value of sales of the goods or service subject to the infringement, or belongs to a group of significant economic size;
the possibility of further increasing the fine based on the illicit profits the company responsible for the infringement made; and
the consideration of mitigating circumstances in a case of adopting and effectively implementing a specific compliance program, as well as introducing the so-called “amnesty plus,” i.e., the possibility of further reducing the fine if the company has provided information ICA deems decisive for detecting an additional infringement and falling within the scope of the leniency program.
3. New guidelines on antitrust compliance.
On March 10, 2025, ICA adopted new guidelines on antitrust compliance. In particular, the ICA has introduced:
a maximum reduction of penalties up to 10% – instead of the previous 15% – reserved for compliance programs that have proven to be effective (i.e. if the application is submitted before ICA launches an investigation);
a reduction of up to 5% -instead of 10%- in the case of compliance programs that are not manifestly inadequate, adopted before ICA launches an investigation, provided that the program is adequately integrated and implemented within six months;
a reduction of up to 5% for companies with manifestly inadequate programs or for programs adopted newly after the start of the investigation only in cases where substantial changes have been made after the proceeding’s initiation;
no reduction for companies that repeatedly infringed and that had already benefited from a reduction of the fine for a previous compliance program. Moreover, no reduction will be granted to a repeat offender, already having a compliance program, involved in a subsequent proceeding.
4. ICA investigates Rete Ferroviaria Italiana S.p.A.and Ferrovie dello Stato Italiane S.p.A. for potential abuse of dominant position.
On March 18, 2025, ICA launched an investigation against Rete Ferroviaria Italiana S.p.A. (RFI) and Ferrovie dello Stato Italiane S.p.A. (FS) for an alleged abuse of dominant position, in violation of Article 102 TFEU. According to ICA, access to the national railway infrastructure has been slowed down, and in some cases obstructed, impeding the new high-speed passenger transport operator, SNCF Voyages Italia S.r.l. (SVI)’s entry.
The contested behaviors were implemented in the national railway infrastructure market, in which RFI holds a dominant position due to the legal concession granting (D.M. Oct. 31, 2000, No. 138), the company a legal monopoly over the national railway network. In this case, access primarily concerns the high-speed (AV) network. However, the infrastructure involved in the allegedly abusive conduct also includes part of the railway infrastructure intended for regional and medium-long distance transport services. From a geographical perspective, considering the widespread nature of the access conditions across the entire Italian railway network, the actions in question seem to have a national scope.
The alleged abusive conduct carried out in the upstream market of railway infrastructure appears to have hindered SVI’s entry into the passenger railway transport market on the AV network, which is the downstream market where anti-competitive effects would have occurred. ICA carried out inspection activities at the offices of Rete Ferroviaria Italiana S.p.A., Ferrovie dello Stato Italiane S.p.A., and also at the offices of Trenitalia S.p.A. and Italo – Nuovo Trasporto Viaggiatori S.p.A., as they were considered to have information relevant to the investigation.
European Union
A. European Commission
European Commission drops interim measures proceedings against Lufthansa.
The European Commission has closed its interim measures antitrust proceedings against Lufthansa, concluding that the legal conditions for such measures under Article 8 of Regulation 1/2003 were not fully met. The proceedings aimed to require Lufthansa to restore Condor’s access to feed traffic at Frankfurt Airport, as previously agreed between the airlines.
These interim measures were part of a broader investigation into potential competition restrictions on transatlantic routes involving the A++ joint venture between Lufthansa and other airlines. The investigation, launched in August 2024, examines whether the joint venture complies with EU competition rules.
While the interim measures proceedings have been closed, the European Commission continues its main investigation into the competitive impact of the A++ joint venture on transatlantic routes, including the Frankfurt-New York route.
B. ECJ Decision
A parent company can be sued in its home country for its subsidiary’s antitrust violations in another EU member state.
On Feb. 13, 2025, the Court of Justice of the European Union (CJEU) issued a landmark ruling confirming that a parent company may be sued in its home country for antitrust violations its subsidiary committed in another EU member state. The case concerned a Greek subsidiary, Athenian Brewery SA, which the Greek competition authority had sanctioned for abusing its dominant position. Macedonian Thrace Brewery SA subsequently filed a claim for damages before a Dutch court against both the subsidiary and its Dutch parent company, invoking Article 8(1) of the Brussels I bis Regulation. This provision allows for the joint adjudication of claims when they are closely connected.
The CJEU clarified that a parent company and its subsidiary may be regarded as forming a single “economic unit,” thereby justifying both joint liability and international jurisdiction. Furthermore, the CJEU reaffirmed the existence of a rebuttable presumption that a parent company exercises decisive influence over its subsidiary if it holds nearly all of the subsidiary’s shares. This presumption is significant for determining both liability and jurisdiction, provided the claims are substantively interconnected and the risk of contradictory judgments is mitigated.
This ruling carries implications for competition law enforcement within the EU. Aggrieved parties are now able to pursue damage claims in the parent company’s jurisdiction, even if the subsidiary committed the antitrust infringement in another member state. However, national courts must ensure that the conditions for establishing international jurisdiction have not been artificially created, while also allowing the parent company the opportunity to rebut the presumption of decisive influence.
1 Due to the terms of GT’s retention by certain of its clients, these summaries may not include developments relating to matters involving those clients.
Holly Smith Letourneau, Sarah-Michelle Stearns, Alexa S. Minesinger, Miguel Flores Bernés, Valery Dayne García Zavala, Hans Urlus, Dr. Robert Hardy, Chazz Sutherland, Robert Gago, Filip Drgas, Anna Celejewska-Rajchert, Ewa Głowacka, Edoardo Gambaro, Pietro Missanelli, Martino Basilisco, and Yongho “Andrew” Lee also contributed to this article.
New Immigration Registration Rule for Foreign Nationals (US)
Effective April 11, 2025, certain foreign nationals in the US must register online with the Department of Homeland Security (DHS), while others are already registered based on their status. This requirement is based on a 1940 law that mandates every foreign national who is in the US for 30 days must be registered and fingerprinted and DHS issued an Interim Final Rule (IFR) to update the registration regulations, introducing a new online process for unregistered foreign nationals.
Who Needs to Register:
Registration is required for all foreign nationals staying in the United States for more than 30 days who are not already registered, or do not already hold a document that qualifies as registration. This includes:
Foreign nationals who entered without inspection (EWI): Anyone seeking to stay in the US more than 30 days without having been officially inspected and admitted by US authorities.
Visa-exempt Canadians: Those entering the US for business or tourism at a land port of entry, but were not issued a Form I-94, and staying for 30 days or more.
Foreign nationals turning 14 years of age: Those who have been in the US for 30 days or more, regardless of previous registration status, with some exceptions, must register or re-register within 30 days after turning 14 and undergo fingerprinting.
Individuals Already Registered and Those Exempt from the Registration Requirement:
Most foreign nationals already in the US, pursuant to a lawful admission as a visitor or a nonimmigrant worker, do not need to register if they were issued any of the following documents:
An immigrant or non-immigrant visa, issued by a US Consulate;
A green card (permanent resident card);
An I-94 admission record (received by nearly all entrants at airports or land entry points);
An employment authorization document (EAD);
Humanitarian parole under INA 212(d)(5), even if the period of parole has expired;
A Notice to Appear (NTA) issued when a foreign national is placed into deportation proceedings; or
A border crossing card.
In addition, the following are exempt from the registration requirement:
Diplomats holding A or G visas;
Those in the US for less than 30 days; and
Certain Native Americans born in Canada who entered the United States under INA, Section 289.
Registration Process:
Individuals required to register must create a USCIS account, including separate accounts for children. Detailed registration requirements and steps are available on the USCIS website. The process involves:
Completing Form G-325R (Biometric Information) online through the USCIS website.
Submitting biometric data (e.g., fingerprints) and undergoing a background check.
Upon successful registration, downloading and printing the “Proof of Alien Registration” document from their myUSCIS account.
Legal Obligations of Proof of Registration and Change of Address:
Those who are obligated to register will receive a “Proof of Alien Registration” document in their myUSCIS account, which they must print and carry at all times.
Those who don’t need to register must still carry proof of registration at all times (e.g., those with an I-94 must carry a copy of the I-94).
All foreign nationals, including those exempt from this registration requirement, must notify USCIS, through submission of Form AR-11, of any residential address change within 10 days.
Acceptable Proof of Registration Documents for Those Who Don’t Need to Register:
A valid, unexpired electronic Form I-94 admission record (available online).
An I-797 approval notice, which typically includes the I-94 record.
A US Customs and Border Protection passport admission stamp.
A Form I-551 Permanent Resident Card (green card).
A Form I-766 Employment Authorization Document (EAD).
Consequences of Not Registering, Carrying Proof, or Timely Reporting Change of Address:
Foreign nationals who are 18 years or older must carry proof of registration at all times. Failure to comply with registration requirements carries serious penalties:
Willful failure or refusal to register: A misdemeanor punishable by a fine up to $5,000, imprisonment up to six months, or both.
Failure to carry proof of registration: A misdemeanor punishable by a fine up to $5,000, imprisonment up to 30 days, or both.
Failure to report a change of address: A misdemeanor punishable by a fine up to $5,000, imprisonment up to 30 days, or both, and potential detention or removal unless the failure was reasonably excusable or not willful.
Key Takeaways:
The new DHS online registration rule aims to streamline compliance with INA requirements but imposes strict obligations on specific noncitizen groups. Noncompliance can lead to severe legal consequences, including fines, imprisonment, or removal. Affected individuals should promptly register, carry proof of registration, and seek legal counsel if their immigration status is unclear. Squire Patton Boggs will continue to monitor developments regarding the Alien Registration Requirement and post relevant updates.
Insider Strategies for Wage and Hour Compliance Success: One-on-One with Paul DeCamp [Video]
Wage and hour compliance often presents complex challenges for employers, with unclear regulations and changing enforcement priorities.
Addressing these issues proactively and resolving potential disputes are vital for maintaining compliance and reducing risks.
In this one-on-one interview, Epstein Becker Green (EBG) attorney Paul DeCamp sits down with fellow EBG attorney George Whipple to offer his seasoned perspective on wage and hour matters. Tapping into his experience as the former head of the Wage and Hour Division under President George W. Bush, Paul provides an insider’s view of government enforcement priorities, compliance pitfalls, and the complexities employers face when disputes arise.
The conversation explores how to quantify wage and hour compliance risks, prepare for investigations, and evaluate potential vulnerabilities through the lens of a third-party observer. Paul also reflects on changes in the post-Chevron era, discussing how shifting judicial approaches to agency authority create both challenges and opportunities for employers navigating regulatory frameworks.
With an extensive career spanning public service and private practice, Paul delivers actionable advice designed to help employers safeguard their organizations, remain adaptable to legal developments, and respond thoughtfully to wage and hour concerns.
Former Executive Secures $34.5 Million Settlement in Whistleblower Retaliation Case
On March 20, 2025, in Zornoza v. Terraform Global Inc. et al, No. 818-cv-02523 (D. Md. Apr. 4, 2025), a former executive of two SunEdison subsidiaries secured a $34.5 million settlement over his SOX whistleblower retaliation claims.
Background
Carlos Domenech Zornoza (the “Executive”), the former President and CEO of two SunEdison subsidiaries, filed a whistleblower retaliation complaint with the U.S. Department of Labor in May 2016. He alleged under Section 806 of SOX that he had been terminated for raising, among other things, concerns about SunEdison’s allegedly false reporting of its projected cash holdings to company officers, directors, and the investing public, as well as potential self-dealing transactions between SunEdison and its subsidiaries. In August 2018, the Executive asserted his claims against the two subsidiaries and SunEdison, as well as several individual officers and directors of the companies, in the U.S. District Court for the District of Maryland. He sought damages exceeding $35 million, including for back pay, interest, benefits, and lost stock grants.
In January 2025, after a two-week bench trial and rounds of motion practice, the court found for the Executive on the issue of liability, and set the damages phase of the trial for a later date.
Settlement
Immediately prior to the commencement of the damages phase, the Executive’s counsel announced that the Executive had agreed to a whopping $34.5 million settlement, the largest documented settlement for a whistleblower retaliation claim under the statute.
Takeaway
The record-breaking settlement in this case, as well as the protracted length of the litigation, underscores the cost and potential damages implicated by alleged SOX violations. The settlement may also further embolden plaintiffs with purported SOX whistleblower claims to assert them in court, and inflate the value of such claims in the future.
Incoming Defense Contract Audit Agency Reorganization
On April 7, 2025, the Defense Contract Audit Agency (DCAA) announced a comprehensive reorganization plan aimed at consolidating its Region and Corporate Audit Directorates (CAD) into three primary Directorates in response to increased pressures to reduce costs and improve efficiency. For context, the DCAA provides audit and financial services to the Department of Defense (DoD) and certain other federal government agencies. The DCAA plans to complete the reorganization by September 30, 2025, if not sooner.
As an overview, the proposed reorganization plan aims to reduce the number of DCAA field offices, streamline administrative structures and refocus operations to better align with DoD needs. DCAA plans to close and consolidate 40 offices, immediately impacting approximately 160 employees. Further, there will be a new organizational structure including a central headquarters and three primary Directorates – Land, Sea and Air. The audit offices of the CADs will be merged into one of the aforementioned primary Directorates.
Although the DCAA’s reorganization is meant to result in greater efficiencies, the impact is unclear at this time but may influence audit processes and potentially the frequency of audits. Contractors should stay informed and remain proactive to ensure compliance with future DCAA changes.
Final Phase of NYC Minimum Pay-Rate Increase for App-Based Delivery Workers Is In Effect
On April 1, 2025, New York City Mayor Eric Adams and the New York City Department of Consumer and Worker Protection (DCWP) announced that, effective immediately, delivery platform companies must pay delivery workers a minimum rate of at least $21.44 per hour before tips.
New York City first began implementing a minimum pay-rate for app-based restaurant delivery workers in December 2023. (See our article, New York City’s Pay Protections for App-Based Workers Upheld, Allowed to Go into Effect, for more information.) On April 1, 2024, Mayor Adams and the DCWP increased the minimum pay-rate for delivery workers to $19.56 per hour. (See our article, New York City App-Based Workers’ Minimum Pay-Rate Increases, for more information.)
The latest minimum pay-rate increase is part of the final phase of increases for app-based delivery workers and is subject to annual adjustments for inflation. The $21.44 per hour rate reflects the April 1, 2025, phase-in rate of $19.96 plus an inflation adjustment of 7.41 percent.
Mayor Adams lauded the pay increase, stating, “We are proud to have not only spearheaded this groundbreaking policy, but to have made life easier for delivery workers and their families all across the five boroughs.” Following the announcement of the increase, Deputy Mayor for Housing, Economic Development, and Workforce Adolfo Carrión, Jr., noted that the implementation of a minimum pay-rate for app-based restaurant delivery workers has “already helped [the] app-based delivery worker community secure over $700 million in additional wages.”
The DWCP will continue to monitor whether delivery platform companies are complying with the law.
Georgia Federal Court Denies TRO and Motion to Dismiss in Trade Secrets Case
On March 27, 2025, in Stimlabs LLC v. Griffiths, the U.S. District Court for the Northern District of Georgia ordered a former executive, Sarah Griffiths, to face claims related to her alleged theft of Stimlab’s trade secrets under the Defend Trade Secrets Act (“DTSA”) and the Georgia Trade Secrets Act (“GTSA”) after denying her application for a TRO.
Background. Griffiths, the regenerative medicine company’s former Chief Scientific Officer, allegedly downloaded thousands of documents containing confidential information and trade secrets after the CEO told her the company was interested in negotiating her departure. These documents allegedly contained, among other things, information regarding future potential products, confidential communications with government agencies, data related to product development and information related to “a product made of donated human umbilical cord, which is applied to, and used in, the management of ulcers, wounds, and similar injuries to the body.” Griffiths allegedly was one of thirteen employees who had special access to the company’s purported trade secrets. According to the company, she was required to sign restrictive covenants as part of her employment agreement, follow the employee handbook, attend and comply with the confidentiality training she received, use best efforts to protect Confidential Information and comply with the company’s Information Security Policy.
Rulings. Following a hearing on August 13, 2024, the company’s motion for a temporary restraining order was denied, as the court found that the company had “not introduced evidence that [Griffiths] accessed [Stimlabs’] documents for any purpose other than to do her job at the time, and the case law is very clear that this does not constitute misappropriation.” However, the court still denied Griffith’s motion to dismiss the complaint, finding that the company sufficiently identified 12 specific examples of trade secrets that purportedly were misappropriated, which were sufficient allegations to state a claim for misappropriation. The court emphasized the allegations that Griffith’s actions violated her employment obligations. In denying the motion to dismiss, the court noted that the complaint the TRO was based on had been amended and now included four exhibits including various agreements and policies that Griffith had allegedly violated. The court also decided not to dismiss the company’s breach of contract claim, despite Griffiths’ argument that the company suffered no damages. The court found that discovery was the best avenue to address this issue.
Implications. This case shows that even though an application for immediate injunctive relief may be denied, there still may be ground to develop claims that were raised in the request for injunctive relief application, and thus a motion to dismiss may not be in order. Here, by amending the complaint and identifying the trade secrets that allegedly were misappropriated, the employer was able to survive a motion to dismiss, allowing the case to proceed. We will continue to follow this case as the litigation progresses.
International Students Face Visa Revocations & Status Terminations – What Does that Mean for Higher Education Institutions?
Over the past two weeks, institutions of higher education have been faced with the challenges of notifying members of their campus communities about visa revocations and status terminations, and advising affected international students on what to do next. Unlike more high-profile immigration cases that followed student protest activity, the latest round of visa revocations and status terminations appear to be happening because students are “failing to maintain status.” But what does that mean and how should institutions react?
To understand the impact, the meaning of key terms like “visa” and “status,” have to be understood, because they are distinct concepts in U.S. immigration law. When people speak of how long someone can stay in the United States, they might say “their visa expires in June” or “they have to leave because their visa is expiring,”; such statements are technically incorrect, however, because they confuse a visa with status.
While a visa is a critical immigration document, it does not actually determine how long someone can stay in the United States. A visa is issued by the U.S. government and allows a noncitizen to apply for entry to the country, but does not guarantee that the noncitizen will be actually allowed to enter or remain in the United States. In contrast, a noncitizen’s status determines how long and under what conditions they can stay in the United States. Notably, noncitizens can change status, for example from F-1 student status to H-1B specialty occupation status, without ever leaving the United States.
Most higher education students come to study in the United States. on an F-1 student visa. F-1 visas are issued by the U.S. Department of State. Once students enter the United States., they are granted F-1 student status, and their F-1 status is tracked by the Department of Homeland Security’s Student and Exchange Visitor Program (SEVP). As long as a student continues to maintain their F-1 student status, the requirements of which are set by law, they are permitted to remain in the United States.
While visa revocations have not traditionally been common, they are a tool available to immigration authorities. One of the scenarios that has historically led to visa revocation is an arrest for driving under the influence (DUI) leading to a visa revocation on health-related grounds (on the basis of suspected alcoholism or other substance abuse issues). A visa revocation, while significant, only impacts a person’s ability to return to the United States. following international travel. It does not impact status. An F-1 student can have their F-1 visa revoked, expire or cancelled, but can still remain in the United States with their valid F-1 student status.
Termination of status, however, ends a person’s permission to stay in the United States. A student’s F-1 student status can be terminated if a student “fails to maintain status” or due to an agency “termination of status.” Historically, a student’s failure to maintain their F-1 status was reported by the colleges and universities themselves if, for example, an international student engaged in unauthorized employment, failed to maintain a full course of study, or was convicted of certain crimes. The agency-initiated termination of status is limited by statute.
During the past two weeks, the U.S. government has changed its practices related to visa revocations and status terminations, and has begun terminating international students’ F-1 student status, either in addition to or instead of revoking their F-1 visas. As a result, F-1 students whose F-1 student status has been terminated no longer have permission to stay in the United States, even if they have a valid F-1visa.
Institutions are finding out about students’ F-1 status terminations by auditing their SEVIS (Student and Exchange Visitor Information System) record. SEVIS is a web-based system that colleges and the Department of Homeland Security use to maintain information about F-1 students. In some cases, students report being unaware that their F-1 status had been terminated until they receive outreach from their school after such audits, because they received no communication from the U.S. government about their status termination.
These changes have caused stress and uncertainty for institutions of higher education and their international students. In light of concerns expressed by higher education clients, we suggest that clients and higher education institutions work closely with in-house counsel, and recommend international student offices to keep abreast of the latest developments in this area. Specifically, colleges and universities should:
Regularly check SEVIS to determine if students’ F-1 status has been terminated and communicate any developments to the affected students as soon as possible.
Prepare to refer international students to immigration lawyers for individualized assistance. Many institutions of higher education have referral lists, but legal clinics available on some campuses are also an option.
Consider options for international students who may choose to leave the United States, specifically how they can continue their studies or transfer to another college or university in their home country. These considerations may be especially important or acute for graduate-level students engaged in fellowships, research, and TA-ships on campus.
Prepare for possible federal immigration enforcement activity on or around campus, including the types of requests for information federal agencies might make, and the institution’s obligations under state and federal law.
Develop and implement a plan to handle campus community and leadership, local community, and political concerns. In addition to planning for internal and external communications, expect that individual immigration cases and class action lawsuits related to F-1 visa revocations and F-1 status terminations may occur.