Archive for August, 2019

Requiring adult supervision when kids use pool = unlawful discrimination?

It’s okay for a condo swimming pool to require adult supervision of children, right? Wrong: “familial status” is one of the many bases for protection under housing discrimination law. As a result, “any rule or policy targeting children is likely to trigger a discrimination accusation or a fair housing inquiry.” To defend it against attack, the condo must be prepared to prove that the rule or policy is both based on a “compelling business necessity” and represents the “least restrictive means” to achieve the stated purpose. You’d think safety might be an adequate reason, but in two cases federal courts in California have found otherwise. Some rules might survive if, e.g., they are based on Red Cross guidelines, but putatively improper motives such as reducing noise or crowd control must not enter into any rationale. Also, policies must permit unrelated companions, rather than just parents, to count as the supervision [Matt D. Ober, Washington Post]

Now, a push for more disclosure of who owns businesses

Cato event featuring David R. Burton, Richard Hay, Karen Kerrigan, & Diego Zuluaga:

Policymakers on both sides of the aisle have proposed new regimes for small-business beneficial ownership reporting. The aim of such legislation is to eliminate opportunities for money laundering and financial crime. However, the proposals before Congress would place heavy new compliance costs on millions of America’s small businesses while continuing to provide opportunities for bad actors to engage in illicit financial activities. Beneficial ownership reporting would add to an already onerous anti-money-laundering/know-your-customer (AML/ KYC) regulatory burden, cited by community banks as the single most costly financial regulation. Furthermore, international experience with beneficial ownership reporting requirements suggests that it will be difficult to make such requirements work in the United States.

Earlier on money laundering and know your customer (KYC) regulations.

Higher education roundup

“Time cards for adjuncts?”

Legislation in the California assembly aims at heading off the prospect that private colleges and universities will require adjunct professors to begin operating on time card systems:

In recent years, a number of colleges and universities have settled faculty overtime violation lawsuits filed by the same California law firm — lawsuits that even many adjuncts say are frivolous. Stanford University, for example, last year settled for nearly $900,000 in a class-action suit regarding instructors in its continuing studies program. Attorney’s fees accounted for one-third of the settlement, so adjuncts involved were each entitled to a partially taxable $1,417. Kaplan University also settled, according to public documents. Other suits have been settled more quietly. Public institutions in California, whose adjuncts are generally unionized, have not been affected.

Private colleges and universities have responded to the ongoing legal threat by either making or planning to make their adjuncts document all of their working hours on time cards.

Tinker with its details as one will, wage and hour law necessarily proceeds on the premise of regimenting the workplace by the minute. That’s why the time clock is its symbol. [Colleen Flaherty, Inside Higher Ed]

Minimum wage roundup

  • “No, Krueger Didn’t ‘Prov[e] that Raising the Minimum Wage Doesn’t Increase Unemployment’” [Thomas Firey, EconLib]
  • “Making Sense of the Minimum Wage: A Roadmap for Navigating Recent Research” [Jeffrey Clemens, Cato Policy Analysis no. 867] “A review and a doubt” [John Cochrane]
  • Evidence from Denmark: “the age discontinuity in minimum wages has a large impact on employment at around age 18” [Claus Thustrup Kreiner, Daniel Reck, and Peer Ebbesen Skov, Cato Research Briefs in Economic Policy No. 169]
  • To quote Mencken, “Government is a broker in pillage, and every election is a sort of advance auction sale in stolen goods.” [Marina Pitofsky, The Hill reporting Rep. Rashida Tlaib’s (D-MI) comments supporting $18-20 federal minimum wage]
  • “Higher minimum wages are also a restrictionist immigration policy, at least for the poorest class of migrants. This is one of those truths that is inconvenient for people at both ends of the political spectrum.” [Tyler Cowen] “Low wage workers responded by commuting out of states that increased their minimum wage” and more on domestic migration effects of these laws [Cowen]
  • “The minimum wage is not a settled issue. Important, high-quality studies come to different conclusions on serious questions. Journalists, commentators and policy makers: Take note.” [Michael Strain, Bloomberg Opinion]

Lawyer dad sues lawyer son to stop using own name in ads

South Carolina: “Personal injury lawyer and ubiquitous TV pitchman George Sink wants his namesake son to stop using his birth-given moniker to market a fledgling law firm, saying two attorneys with identical names are confusing potential clients.” The request for a temporary injunction against George Sink, Jr. cites the likelihood of confusion with the trademarks of the elder’s firm, for which the son worked until the two parted ways in February. [David Wren, Charleston Post and Courier]

An agreement between the father and son calls for any business dispute to be settled in arbitration, which is tentatively scheduled for December, and limits damages to $500 — an amount Sink Jr. already has paid to his father.

Sink Sr. said in court documents the agreement should be set aside because he signed it without reading it. …The temporary injunction, if granted, would last until an arbitrator decides the case.

P.S. Meanwhile in NYC: “The messy professional break-up between hot-shot personal-injury lawyers Ross Cellino and Steve Barnes is moving from the courthouse to the playhouse, dramatized in a stage show playing next month in Brooklyn.” [Aaron Feis and Julia Marsh, New York Post, earlier]

California Consumer Privacy Act: legislate in haste…

The California Consumer Privacy Act, drawn up hastily to avert a threatened ballot initiative, purports to create six new categories of data-related consumer rights, “including the right to know; the right of data portability; the right to deletion; the right to opt-out of data sales; the right to not be discriminated against as a user; and a private right of action for data breaches.” Although sometimes compared to the European GDPR, the two laws are different and compliance with the one enactment (which has been immensely expensive already) does not accomplish compliance with the other. Expect uncertainty, fines, the California specialty of entrepreneurial class-action litigation, and more tilting of compliance cost structures to the benefit of tech companies and advertising intermediaries big enough to afford to spread the high expense over large revenue streams [Alec Stapp, Truth on the Market; more: Al Saikali, Washington Legal Foundation; Petrina McDaniel, Elliot Golding and Keshia Lipscomb, Squire Patton Boggs]