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Let's talk antitrust: Discussing recent cases and emerging competition issues
Recent cases and judgments have shone a light on some emerging themes and trends that companies will want to consider as part of their risk management framework.
United States | Publication | March 2021
California Labor Code section 226 requires detailed wage statements containing nine items of information, including "the name and address of the legal entity that is the employer," and "all applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee." Section 226 further provides that an employee must be able to "promptly and easily determine" these items of information "from the wage statement alone," which means that "a reasonable person would be able to readily ascertain the information without reference to other documents or information." With transparency as the putative goal of the wage statement requirement, courts have strictly applied section 226 even to employers who act in good faith. Penalties and class action exposure loom large in cases alleging section 226 violations.
Now, section 226 has been extended to interstate transportation workers who are based in California but do not perform the majority of their work in any one state. In Ward v. United Airlines, the Ninth Circuit rejected constitutional and federal law challenges to applying section 226 to pilots and flight attendants who spend most of their time working outside of California if they are "based" in California in that the employee performs at least some work in California and (quoting an earlier state Supreme Court decision) "California serves as the physical location where the worker presents himself or herself to begin work."
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Recent cases and judgments have shone a light on some emerging themes and trends that companies will want to consider as part of their risk management framework.
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After a lacklustre finish to 2022 when compared to the vintage year for M&A that was 2021, dealmakers expected 2023 to see the market continue to cool in most sectors, in response to the economic headwinds of rising inflation (with its corresponding impact on financing costs), declining market valuations, tightening regulatory scrutiny and increasing geopolitical tensions.
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On 18 September 2023, the CMA published its Initial Report (Initial Report) on AI Foundation Models (FM), supplemented in April 2024 with the publication of its “Update Paper” focused on potential antitrust risks associated with FMs and a “Technical Update Report” providing more detail on the development on FMs (collectively the “Reports”). Below, we consider these CMA publications.
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