Page 28 - BusinessWest September 2, 2024

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Workplace
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agement teams on the ethical and responsible use of AI tools.
• Consult with legal experts to say ahead of regula- tory changes and implement best practices tailored to your organization.
Conclusion
As AI continues to evolve and integrate into the
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workplace, new and expanded laws will emerge to govern its use. Employers must proactively adapt to these changes to harness AI’s benefits while ensuring compliance with legal standards. If you have ques- tions about any of these developments, it is prudent to consult with labor and employment counsel. BW
Sabba Salebaigi-Tse is an attorney who specializes in labor and employment-law matters at the Royal
Law Firm LLP, a woman-owned, women-managed corporate law firm certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council.
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Corporate
a copy of an acceptable identification document (such as a driver’s license or passport).
A beneficial owner is considered to be an individual who exercises substan- tial control over the entity or owns or controls at least 25% of the ownership interests of the entity. Most C-suite offi- cers (for example, CEOs, CFOs, COOs, and general counsel) will fall under the category of possessing substantial con- trol over the entity.
To ensure the purpose of the CTA is being fulfilled, ownership is generally reported at an individual level and not through another reporting company.
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aggregated salary information regarding certain pro- fessions will be available on the Executive Office’s website, individual employers’ EEO data reports will not be published. In fact, the act expressly provides that these records are not to be considered ‘public records.’
While this is administratively tedious, employers in Massachusetts must ensure that they comply with both the disclosure and reporting requirements of the act, or they will face heavy administrative fines. The attorney general has exclusive jurisdiction to enforce the wage-disclosure and annual reporting provisions in the act and can impose fines for an employer’s vio- lation of the act and may obtain injunctive or declara- tory relief for this purpose.
For a first offense, the employer will be given a
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Salary
Thus, the reporting owner may be someone who is several levels up in a company’s organizational chart if hold- ing companies are used.
Reporting ownership interests held by trusts may pose a challenge. A trust by itself is not subject to the reporting requirements under the CTA. However, if a trust holds a 25% or more owner- ship interest in an organization that is subject to the CTA, the trust’s grantors, trustees, and beneficiaries may all be required to be reported, depending on the specific terms of the trust.
For entities formed in or after 2024, at least one company applicant must
also be identified for each entity. A com- pany applicant includes the individual who controls the formation filing with the applicable secretary of state or the individual who actually submits the filing.
Compliance Is Key
For entities formed in 2024, the ini- tial report must be filed within 90 days of formation. All entities that were cre- ated before the start of 2024 have until Dec. 31 to submit a BOI report to Fin- CEN. If there are changes in reported beneficial ownership information, the
entity must file an updated report to FinCEN no later than 30 days after the date of the change.
Given the CTA’s draconian penalties, it is advisable to make your CTA regis- tration a high priority and complete the required filing as soon as possible. BW
Attorneys Russell F. Anderson and James F. Martin are members of the Business and Finance practice at the law firm Pullman & Comley. Martin is based in the firm’s downtown Springfield office.
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Insurance
warning. For a second offense, the attorney general can impose a fine of up to $500, and for third offens- es, fines can be up to $1,000. For fourth and subse- quent offenses, penalties are issued pursuant to Mas- sachusetts General Laws chapter 149, section 29C, a violation of which can result in fines between $7,500 and $25,000.
For the first two years that the act is in effect, prior to levying fines for violation of the act, the attorney general is required to provide notice of the violation and give the subject employer two business days to cure the violation. For purposes of the attorney gen- eral’s enforcement of job postings, if multiple job post- ings are made after an initial job posting that violates the act, all posts for the same position that violate the act that are posted within 48 hours of the initial post
will go right to purchasing the deceased shares with- out the estate’s tax values rising. Although this was the better option for Thomas and Michael’s situation, this type of agreement requires each shareholder to pay premiums for the insurance policy, creating a risk that one may not be able to pay it. While this type of arrangement may be beneficial in some respects, it may have negative consequences as well.
Another key step is to regularly get valuations to see potential tax impacts and to see current market values and tax regulations. Consulting tax and legal experts on this matter will help to ensure that your corporate agreements align with all current laws and regulations. Along with talking to legal experts, you should also expect to plan for future tax obligations, whether that means setting aside funds and/or devel-
will be considered a single violation.
Unlike the Massachusetts Equal Pay Act, “An Act
Relative to Salary Range Transparency” does not pro- vide for an employee’s private right of action for their unlawful discharge or retaliation by their employer for exercising their rights under the act. An employee may be able to assert such a claim under other dis- crimination laws or other causes of action. Further guidance on this and many other questions raised by the new law may be given once the provisions of the act become fully effective. BW
Michael McAndrew is an attorney in the Litigation and Employment Law practices at Bulkley Richardson.
oping financial strategies to cover potential tax liabili- ties that could potentially rise from share redemp- tions or corporate obligations.
By taking steps to review agreements and evalu- ate life-insurance policies by consulting with experts, business owners can manage their estates better and minimize tax liabilities, all while establishing effort- less ownership transitions within their business. BW
Ben Coyle is a shareholder with Bacon Wilson who focuses much of his practice in the areas of municipal law and litigation, while also handling probate and business matters. Isabelle Fergus
is an intern at Bacon Wilson who is attending the Isenberg School of Management at UMass Amherst.
affect companies that have existing stock-redemption agreements? It means that the business must review their existing agreements and the manner in which the company and shareholders are obligated pursuant to its terms.
It is essential to review these agreements with your advisors, including your accountant and attorney. There are various options that may be utilized, each of which have significant consequences, and should not be done without consultation with your advisors, as the decisions will have an impact on the business and estate planning.
When looking into life-insurance policies, you may want to consider a cross-purchase agreement where the shareholders will purchase life insurance on each other. In doing so, this ensures insurance proceeds
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