Month: February 2024

Are Your Website Terms of Service & Privacy Policies Enforceable? Turns out not as much as you might think.

Posted on by Kelly McElroy

In late January, the N.D. of California (Chen J.) rendered a decision that may have wide impact on the enforceability of Website Terms of Service across the Internet and Metaverse.  Does this sound the death knell for “informed” click-through consent to either terms of use or data privacy policies?

It very well may….and a close review of your terms of service language and enforceable informed consent by the user is required to avoid the pitfalls that Meta Platforms, Inc. (“Meta”) literally brought upon themselves.

Meta brought a suit against Bright Data Ltd. (“Bright Data”) for breach of its Terms of Use.  Bright Data is an Israeli company that gathers information by “scraping” the web for Fortune 500 companies and other clients.    Judge Chen of the N.D. of Cal., found in favor Bright Data on cross motions for Summary Judgment testing the enforceability of Meta’s Terms of Service.

Judge Chen found that the Terms of Service did not apply to web-scraping activities conducted by Bright Data when Bright Data was not logged in.  Bright Data had FaceBook and Instagram accounts – but they were not bound by the Terms of Service unless they were using their Meta accounts to conduct web-scraping.  Meta was able to produce no such evidence.  Judge Chen did find that the survival clause of the Terms of Service such as choice of law and jurisdiction applied to non-logged-in users but otherwise sounded the death knell for Meta’s enforceable Terms of Service in their current form.

Judge Chen was skeptical about the placement and availability of the Terms of Service on Facebook and Instagram as well.  Although only dicta, these comments may also spurn new litigation on the enforceability of consent.  Informed Consent is a hot-button topic.  This decision, while still appealable – needs to be carefully considered and dissected to determine its effect on every company’s website policy and the user’s manifestation of consent.  For convenience this decision is attached.

Pastore, LLC stands ready to help companies review and adapt to the latest theories and developments in website governance and privacy polies.  Website Terms of Service and Privacy Policies need to be an ever-evolving collection of guidelines and control mechanisms and Pastore, LLC is a leading creative innovator and can assist you in a top to bottom review of your forward-facing websi

Big Changes in Unemployment Benefits: What Connecticut Employers Need to Know

Posted on by Kelly McElroy

The unemployment and severance law landscape is constantly evolving. Connecticut’s legislature recently passed Public Acts 21-200 and 22-67, aiming to enhance the financial stability of the Unemployment Insurance (UI) Trust Fund following the COVID-19 pandemic. Companies that operate in Connecticut should prioritize these changes, implemented on Jan. 1, 2024, as they profoundly impact employers and the labor force within the state.

This article will explore the modifications in unemployment benefits and severance pay, potential legal implications for noncompliance, and strategies to navigate the changes effectively.

 

Major Changes in Connecticut

Critical changes to Connecticut’s unemployment benefits include:

  • Disqualification of unemployment with severance – Previously, unemployment benefits and severance pay could be received concurrently as part of a separation agreement. Now, receiving severance pay for a specific period disqualifies the employee from unemployment benefits during that period.
  • Increased payment – The minimum weekly unemployment benefit payment has increased from $15 to $40. It will be subsequently indexed annually due to inflation. However, the minimum benefit will revert to $15, when the federal government provides a fully federally funded supplement to the individual’s weekly benefit amount.
  • Accrued vacation pay – An employee’s receipt of accrued vacation pay at the time of dismissal won’t disqualify them from unemployment benefits, assuming they meet other eligibility requirements. However, vacation pay issued during a shutdown period will still lead to disqualification or reduction in benefits.
  • Annual inflation adjustment – The minimum base period earnings requirement for unemployment benefits increased from $600 to $1,600 and will be subsequently indexed annually to inflation. However, the minimum base period earnings requirement will revert to $600 when the federal government provides a fully federally funded supplement to the individual’s weekly benefit amount.
  • Maximum unemployment benefit rate – This will be frozen from October 2024 through October 2028.

Connecticut employers must also note the tax changes, including the taxable wage base increase from $15,000 to $25,000, and ensure compliance.

 

Legal Ramifications for Noncompliance

Although the legal consequences may differ depending on the specific type of non-compliance, the most immediate outcome can be financial penalties. Falsifying or intentionally misstating employee hours or wages to reduce UI contributions can lead to significant fines and potential legal action. Failure to submit required UI reports or providing inaccurate information can also result in fines and potential audits from the Connecticut Department of Labor (DOL).

If an employer doesn’t submit the required paperwork or provides incorrect information, it can delay or deny UI benefits for laid-off employees. This can have severe financial repercussions for workers experiencing job loss. Failure to comply with UI regulations can negatively impact the employer’s rating, potentially leading to denials of future UI claims for affected employees.

Non-compliance with UI laws can result in a public record of violations, damaging the employer’s reputation and making it difficult to attract new customers and retain talent. In high-profile cases, non-compliance can lead to negative media attention and further damage to the employer’s brand and reputation.

There may also be other legal consequences, such as the DOL filing court orders requiring employers to comply with UI regulations. Employees or the DOL may bring civil lawsuits against employers for violating employee rights or the UI system.

 

Strategies to Navigate the New Laws

Although navigating the complexities of the new unemployment benefits changes requires careful consideration of your specific situation, here are some general strategies to consider:

  • Remain compliant – Familiarize yourself with the changes to unemployment insurance eligibility, employer tax rates and other relevant provisions to remain compliant. State agencies like the DOL offer information and resources to help employers and workers understand the new UI laws.
  • Stay informed – Since this recently came into effect and legal interpretations and penalties may still be evolving, it’s imperative that you stay informed about any updates and modifications to help you adjust your strategies as needed.
  • Review your internal policies – Update your company’s policies and procedures concerning layoffs, terminations and severance packages to align with the new laws. This includes documenting reasons for termination, eligibility for unemployment benefits and severance pay calculations.
  • Retain detailed records – All termination decisions, reasons for termination and communication with affected employees are critical and will be valuable in case of legal challenges.
  • Keep open employee communication – Be transparent with employees about the new laws and their potential impact on them. Consider holding informational sessions or providing written materials to explain the changes clearly. Open communication with employees can help avoid future disputes.
  • Seek legal counsel – Understanding the nuances of the new UI laws is necessary to ensure compliance and avoid potential legal issues. Likewise, legal counsel can assist you with appealing decisions, challenging tax assessments and negotiating agreements to protect your interests.

Remember, these are just general strategies. The approach you take will depend on your company’s specific circumstances. Consulting with a qualified employment lawyer who specializes in your jurisdiction is essential to developing a tailored plan for effectively navigating the legal complexities of these new UI laws. For legal inquiries, please contact us at Pastore LLC.

 

This article is intended for informational purposes and does not constitute legal advice.

 

(Joseph M. Pastore III is chairman of Pastore, a law firm that helps corporate and financial services clients find creative solutions to complex legal challenges. He can be reached at 203.658.8455 or jpastore@pastore.net.)