May 2024: News from LIAFPN members!

We’ve gathered the best insights from our members to share with you each month. Get to know your peers, and get the latest news directly from these industry insiders!

Lawrence Scherer, Esq., CPA, LL.M. Taxation


NY Enacts Amended Affirmation Law


A law signed by Governor Hochul in October 2023, with an effective date of January 1, 2024, amended the CPLR to allow affirmations from any person. This brings New York civil practice more in line with federal court practice, where un-notarized declarations have been in use for decades.

Now a non-lawyer may sign under penalty of perjury without having to be notarized. The new provision permits an attorney, physician, osteopath or dentist to submit their unsworn written statements, affirmed to be true under penalty of perjury, in the same manner as an affidavit.


Marijuana Reclassified, but not Legalized Federally


Past federal law classified marijuana as a very dangerous drug (like Cocaine, Heroin, and Fentanyl). It was classified in a more dangerous category than Fentanyl or Cocaine. Common sense indicates that marijuana does not share the same health risks and has a less likely potential for addiction and abuse. The change in classification is scheduled to be reduced to a Class III substance and the actual reclassification may take several months to accomplish.


FTC Announces Rule Banning Non-Competes


Yesterday, April 23, 2024, the FTC position is that employee non-compete agreements “… keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once non-competes are banned.” This final rule will make transitioning into new jobs or start-up entities unrestricted, thus expanding the available job opportunities available to the employee.


Under the new rules, existing non-competes for the vast majority of workers will no longer be enforceable after the rule’s effective date. Existing non-competes for senior executives (who represent less than 1% of all workers) can remain in force, but employers are banned from entering into or attempting to enforce any new non-competes, even if they involve senior executives. Employers must provide notice to workers other than senior executives who are bound by an existing non-compete that they will not be enforcing any non-competes against them. The final rules define a senior executive as a worker earning more than $151,164 annually and who is in a policy-making position.


It appears that non-competes in business sales are not covered by the new rule. Accordingly, if you buy the business and lock in a non-compete from its owners, that non-compete agreement is still enforceable.


The new rule will be challenged by the US Chamber of Commerce, but for the time being, employers need to get ready to comply.


Feds Mandating Emergency Automatic Braking Systems


The Federal Government is mandating Emergency Automatic Braking Systems on all cars sold after January 1, 2029. Already, most automakers voluntarily include automatic braking in new models (at least as an option), but the capabilities can vary. The regulation makes the technology mandatory by 2029 and sets a minimum standard that all cars must be able to stop and avoid contact with the vehicle in front of them when traveling up to 62 miles per hour. Future guidelines will require a stop to avoid pedestrian accidents at lower speeds.


Long Overdue Initiative on Women’s Health Issues


In April, Senator Kirsten Gillibrand joined Halle Berry and a group of women senators to unveil the bipartisan Advancing Menopause Care and Mid-Life Women’s Health Act, legislation that would advance research, data, public awareness, and funding for menopause and mid-life women’s health. As women senators have voiced; if men faced these issues, there would have been legislation passed decades ago. Long overdue


In addition to being a co-founder of the LIAFPN, Larry Scherer has a strong background in Trust & Estates and Elder Law, and serves as Managing Member of Scherer & Pudell, PLLC, a Transactional Law Firm in Garden City, NY. He can be reached at (516) 747-7007.


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