Business Compliance

May 15, 2024 On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a final rule that imposes a nationwide ban on all employers from using noncompete clauses in contracts with all workers at any level. There are limited exceptions: (1) it does not apply to existing noncompete agreements for senior executives (those in policy-making positions who earn more than about $151,164 annually); and (2) noncompete agreements are allowed if associated with a bona fide sale of a business. The vote was 3-2, with Commissioners in favor saying that noncompete clauses impose unfair

April 19, 2024 NAMM Policy Program Manager Claire Kreger-Boaz attended the World of Wood Convention in San Diego, CA, April 9–12, 2024, on a mission to gather the latest information on Phase VII of the Lacey Act and upcoming CITES discussions scheduled for this July as well as to strengthen the relationships NAMM and its partners have forged with regulatory and enforcement agencies. The IWPA’s annual convention convenes the globally sourced wood products industry. With 300 importers, U.S. manufacturers, exporters, wholesalers, offshore suppliers and service providers attendees get

March 26, 2024 China's recent implementation of a new mandatory national standard for musical instruments, GB28489-2022, effective January 1, 2024, has significant implications not only within China but also for global stakeholders, including those in the U.S. This updated standard supersedes the previous GB/T28489-2012 and introduces stricter requirements for the content of harmful substances in musical instruments, along with updated testing methods to ensure compliance. The new Chinese standard has sparked discussions and considerations among U.S.-based manufacturers, distribut

The U.S. Department of Labor's (DOL) new worker classification rule went into effect as of March 11, 2024.  This rule rescinds the 2021 independent contractor rule (ICR) put in place by the prior administration.  This final rule differs from the 2021 ICR and is aligned with the approach taken by federal courts in a number of ways. The 2024 rule: Returns to a totality-of-the-circumstances economic reality test, where no single factor or group of factors is assigned any predetermined weight; Considers six factors (instead of five), including the investments made by the worker

On January 10, 2024, the U.S. Department of Labor (DOL) issued the final independent contractor rule, which provides guidance to assess how workers should be classified under the Fair Labor Standards Act (FLSA). The FLSA sets standards for minimum wage, overtime pay, recordkeeping, youth employment standards and other requirements that apply to employees in the private sector. This final rule takes effect on March 11, 2024 and rescinds the 2021 independent contractor rule from the prior Administration. The DOL stated that the newly issued guidance in the rule aligns with longstand

The Canadian government has enacted amendments to its wildlife protection regulations to require that all persons entering or leaving Canada with musical instruments or other products containing ivory must obtain a valid export permit from their departure country and an import permit from Canada.   The new requirement, effective January 1, 2024, thus eliminates earlier exemptions for personal effects and household property. There are no exceptions for musical instruments containing pre-CITES elephant ivory.   The new permit requirements will be enforced beginning January 8, 2024. 

The Corporate Transparency Act (CTA) requires that certain regulated entities, such as corporations or Limited Liability Companies (LLCs), file personal identifying information concerning Beneficial Owners and Company Applicants with the Financial Crimes Enforcement Network (FinCEN) under the Department of the Treasury.  The intent of the CTA is to deter the use of shell companies for illegal activities, such as money laundering and terrorism financing. The first step is to determine whether the business is a “Reporting Company” and/or whether the business falls under one of the e

Legislation to expand retailers’ credit card options is expected to be taken up by the full U.S. Senate when they return from recess the week of Oct. 16., at which time they are expected to resume consideration of a three-bill appropriations package. During the debate, Senators Roger Marshall (R-KS) and Dick Durbin (D-IL), will offer the text of The Credit Card Competition Act of 2023 (S.1838) as an amendment to the package. Sen. Durbin (D-IL), and Sen. Marshall (R-KS) reintroduced the Credit Card Competition Act in June 2023.  The legislation aims to reduce swipe fees by increasi

On January 31, 2023, the U.S. Fish and Wildlife Service informed U.S. importers and exporters of tropical hardwood timber species of actions taken at the 19th meeting of the Conference of the Parties to CITES (CoP19), held in November 2022, regarding a number of timber taxa, which will result in certain requirements for international trade in the species noted below. The amendments adopted at CoP19 become effective on February 23, 2023, except as noted in the letter below. Impacted:    African mahogany also called Afzelia, Pod mahogany, or African oak   Brazil wood (Paubrasili

Following two weeks of discussion, delegates at the CITES Conference of the Parties (CoP19) reached several decisions which impact the music industry: Appendix II protections for Pernambuco, the Brazilian wood of choice for violin bow makers, were expanded to require CITES permits for finished bows (and all Pernambuco) the first time they leave Brazil.  The delegates also approved an exception to the permit requirement for finished bows which are re-exported from other countries after they leave Brazil. All species of Khaya (aka African mahogany) and Pterocarpus (aka Padauk) was

The nineteenth meeting of the Conference of the Parties (CoP 19) convened Nov 14 – 25, 2022 in Panama City, Panama with NAMM member interests represented by Senior Policy Advisor Mary Luehrsen. Three major discussions relevant to the music industry took place concerning: Greater protection for Pernambuco — the Brazilian wood of choice for stringed instrument bow makers. The expansion of the musical instrument certificate program — which makes it easier for musicians to travel internationally with instruments containing protected species. The procedure for approving annotations fo

May 6, 2022 NAMM, as a member of a coalition comprised of the California Chamber of Commerce, the Consumer Brands Association and more than 40 other organizations and businesses to submit a comment letter to California’s Office of Environmental Health Hazard Assessment (OEHHA) regarding a second proposed amendment to Proposition 65 short-form warning regulations. OEHHA issued a second notice on April 5, 2022, seeking additional public comment on newly revised regulatory text. The revisions incorporated, at least in part, stakeholder recommendations received during the prior commen