Reporting Requirements

The U.S. Department of the Treasury has announced changes to the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA).

New Developments:

• The Treasury has suspended enforcement of BOI reporting requirements for U.S.-based companies.

• The new deadline for BOI reports is March 21, 2025, but FinCEN will not impose penalties on U.S. businesses that do not comply.

• The BOI reporting rule is expected to be revised to apply only to foreign-owned entities.

At this time, no action is required. We will continue to monitor updates and provide further guidance as needed.

The Corporate Transparency Act (CTA) has been reinstated, and companies formed on or before February 19, 2025 should proceed with preparing and filing their Beneficial Ownership Information Report (BOIR) by the newly extended March 21, 2025, deadline. Reporting companies can report their beneficial ownership information directly to FinCEN for free using FinCEN’s E-Filing system available at https://boiefiling.fincen.gov.

For reporting companies that had previously filed a BOIR, any necessary updates or corrections to those reports should be filed by this date.

Non-exempt companies formed after February 19, 2025 must file their initial BOIR within 30 days of formation.

A recent federal court order by the U.S. District Court for the Eastern District of Texas (Smith, et al. v. U.S. Department of the Treasury) stayed the national preliminary injunction blocking the enforcement of the Corporate Transparency Act (CTA).  The Financial Crimes Enforcement Network (FinCEN) published a notice on its website extending the reporting deadline for 30 calendar days to March 21, 2025.

The CTA requires certain types of U.S. and foreign entities to report beneficial ownership information to FinCEN, a bureau of the U.S. Department of the Treasury.  FinCEN collects and analyzes information about financial transactions to combat domestic and international money laundering, terrorist financing, and other financial crimes. 

More information is available at https://fincen.gov/boi.

On February 21, 2025, Michigan Governor Gretchen Whitmer signed Senate Bill 8 and House Bill 4002, which revises the State’s minimum wage effective immediately.

The State’s minimum wage will continue to increase to $12.48 per hour effective February 21, 2025, which is unchanged from a previous Michigan Supreme Court ruling regarding the Improved Workforce Opportunity Wage Act ( IWOWA).

However, as amended, annual adjustments to the State’s minimum wage for 2026 and thereafter scheduled to take effect annually on February 21 will now take effect January 1.

Beginning in October 2027, the State’s minimum wage must increase based on the rate of inflation and increases, if any, in the Consumer Price Index for the Midwest region, as published by the Bureau of Labor Statistics.

Starting July 1, 2026, the Maryland Family and Medical Leave Insurance (FAMLI) system will allow full time, seasonal or part time employee (excluding independent contractors) to take time away from work to care for themselves or a family member for up to 12 weeks and still be paid up to $1,000 a week for up to 12 weeks. ​​Employers may require workers to provide 30 days’ notice for foreseeable leave. For leave that is unexpected, employers may require workers to give notice as soon as is practicable.  An employer must hold a worker’s position while they are on FAMLI leave and the worker should return to the same or an equivalent position.

Regulations applicable to FAMLI are subject to change.  The FAMLI Division will post updates to https://paidleave.maryland.gov/Pages/default.aspx and has provided FAQ’s:

• All Frequently Asked Questions from Employers​​

• Frequently Asked Questions from Employers about Contributions​

• Frequently Asked Questions from Employers about Claims​

• Frequently Aske​d Questions from Employers about Private Plans​

Covered employers are employers who pay a salary or wage to at least one person who works in Maryland. There are no exemptions and workers cannot opt out of participating.  Employer may select a commercial private plan or participate in the State program. Employers in the State Plan will not be charged more depending on worker usage.

For employers with 15 or more workers opting for the State plan, the rate will be 0.90% of covered wages up to the Social Security cap.  Employers may pay for the entire cost -- though there may be tax implications for doing so -- or collect up to half of the contribution rate from workers. For employers with 15 or less workers the rate is 0.45% of covered wages. Private plans may be structured differently, set the own rates, and set their own deductions. Workers cannot be charged more in a private plan than they would be through the State Plan.

An employee will be eligible for benefits after working at least 680 hours in positions based in Maryland in the 4 calendar quarters reported before they need to take leave.  FAMIL can be used:

• To welcome a child into their home, including through adoption and foster care

• To care for themselves, if they have a serious health condition

• To care for a family member’s serious health condition

• To make arrangements for a family member’s military deployment

C2 will complete all compliance requirements:

• Spring 2025: select a private plan or participation in the State plan

• Spring 2025: sign up to receive emails from the FAMLI Division at paidleave.maryland.gov

• Spring 2025: complete web-based registration with State for all qualified employers (portal address pending)

  • After registration all employers will automatically be enrolled in the State Plan

  • Employers can alternatively explore private plans

• May 01, 2025 (if using private plan): portal opens to submit application to the State of intent to use private plan (portal closes May 31, 2025)

• July 1, 2025 (if using State plan): commence employee/employer payroll deductions and

then quarterly remittance to the State through a dedicated web application (currently under construction which will accommodate third-party administrators).

• October 1, 2025 (if using State plan): commence payments & reporting to the state program

• January 1, 2026: Notify workers of the benefit through required labor posters and updated handbook content (drafts to be provided by the State)

• July 1, 2026 (if using a private plan):  commence employee/employer payroll deductions

• July 1, 2026 onward: provide notice and applicable State website to file claims to affected employees experiencing a qualifying event (samples notices will be provided the FAMLI Division)

• July/Aug 2026 (if using a private plan): first payment is due with the July invoice

The FAMLI Division will electronically notify employers when a worker files a claim. The employer will have 5 business days to respond. The employer can tell the Division to proceed with processing the claim or provide additional information about the claim.

Interaction With Maryland’s Required Paid Sick Leave

Per the Division’s FAQ, Maryland paid sick leave under the Maryland Healthy Working Families Act, for which employees earn 1 hour for every 30 hours worked up to a maximum of 40 hours in a year, is for “everyday colds” and routine illness. FAMLI is for battling a serious illness.

Until now, when filing a complaint for discrimination in connection with employment opportunities with the Illinois Department of Human Rights, the complainant had 300 calendar days to do so. Effective January 1, 2025, Illinois Public Act 103-0973 extends the filing deadline from 300 calendar days to 2 years (730 days).

Most states have a 180-day to 300-day filing deadline for state employment discrimination claims. Illinois now has one of the longest in the US.

Effective January 1, 2025, the Illinois Human Rights Act (IHRA) has been amended to expand employee protections. Key changes include:

• Extended Filing Period: The statute of limitations for filing a discrimination charge with the Illinois Department of Human Rights has been extended from 300 days to 730 days.

• New Protected Classes:

  • Family Responsibilities: Discrimination or harassment based on "family responsibilities" is now prohibited. This term refers to an employee's actual or perceived discrimination based on the employee’s provision of personal care to a family member.

  • Reproductive Health Decisions: Discrimination based on "reproductive health decisions" is now prohibited. This includes decisions regarding contraception, fertility or sterilization care, assisted reproductive technologies, miscarriage management, and healthcare related to pregnancy continuation or termination.

Employers should review and update their policies to ensure compliance with these amendments.

There have been recent 2025 amendments to the California Consumer Privacy Act (CCPA) of 2018. One of these (AB 1008) redefines the term “personal information” to include data developed through the use of artificial intelligence (AI).

If an artificial intelligence system has the capability of revealing personal information (PI), there may be restrictions placed on how companies may profit from, or use, that data. Personal information not only includes names, addresses, etc., but also biometric data. The goal of this amendment is to be sure that AI systems abide by the same privacy protections that other data storage and processing systems abide by and use.

Perhaps the most far-reaching impact of this amendment is that companies that choose to use AI capable of developing personal information must have the ability to correct erroneous output.  Since it is unlikely most companies will be developing their own systems, the inability to correct AI hallucinations may prove to be a limiting factor in the implementation of AI in California.

Effective January 1, 2025, amendments to the Illinois Personnel Record Review Act (PRRA) have expanded employee rights regarding access to personnel records. Key changes include:

• Expanded Access: Employees can now request additional documents, including employment-related contracts, employee handbooks, and written employer policies or procedures that apply or applied to them.

• Written Requests: All requests must be made in writing, which includes electronic communications such as email or text messages.

• Exemptions: Certain records are exempt from disclosure, including an employer’s trade secrets, client lists, sales projections, and financial data.

• Response Time: Employers must respond to requests within seven working days of receipt, with a possible extension of an additional seven calendar days if necessary.

• Frequency of Requests: Employees are entitled to submit up to two requests per calendar year.

Employers should review and update their policies to ensure compliance with these amendments.

Starting October 1, 2025, the Nebraska Healthy Families and Workplace Act (“HFWA”) will require all employers regardless of size to provide eligible employees with paid sick leave for family or personal reasons.  HFWA will not cover public employees working for agencies, departments or state or federal governments.   

Employees will earn one hour of paid sick leave for every thirty (30) hours worked.  The annual maximum will be 40 hours per year for small businesses with fewer than twenty employees and 56 hours per year for businesses with twenty employees or more. 

Unused paid sick leave may be carried over to the following year.  If the employer chooses to not allow the carryover, the employer may pay out at year end any unused sick leave and give the employee the annual balance maximum available at the beginning of the following year. Employers will not be required to allow more than the annual maximum to be used yearly.

The requirements in the Act are minimums and Employers may provide more generous sick leave or paid time off leave plans.  These employer plans must allow use under the same conditions and for the same purposes as the HFWA.

HFWA paid sick leave requests may be made verbally; however, employers may require documentation if an employee uses this leave for more than three consecutive work days. This leave is available for physical or mental illness, health conditions or injury, care, treatment or medical diagnosis and preventative medical care.  HFWA is for employees or their family members including an employee’s child, parent or legal guardian, spouse, grandparent, grandchild, sibling or any other individual related by blood to the employee or whose close association with the employee is the equivalent of a family relationship.

Employers should review the new law carefully and update their policies and procedures accordingly. Failure to comply with the expanded law could result in penalties.

Detailed guidance is not yet available but expected in the coming months.