At a Glance Archives - Campanella Law Office

Ohio Client Alert: Sixth Circuit Limits Employer Liability for Harassment by Customers

Administrator — Wed, 10 Sep 2025 12:03:06 +0000

In a recent decision, the Sixth Circuit Court of Appeals clarified when employers can be held liable for harassment committed by customers in the workplace. It ruled that an employer is only liable for a customer’s behavior if the employer intentionally caused the harassment to occur or was substantially certain that it would occur.

In Bivens v. Zep, Inc., a former employee sued her employer, under state and federal law, for harassment after losing her job due to a company-wide reduction in force. While employed with the company, she reported that a manager from one of the company’s clients had asked her out. Immediately after she reported the unwanted overture, her supervisor acted to prevent further contact. Nevertheless, she later included a harassment claim in her lawsuit for wrongful termination, arguing, among other things, that the company created a hostile work environment based on the actions of the company’s client.

In determining that the employee’s claims lacked merit, the Sixth Circuit explained that the two ways an employer can be held liable for the actions of individuals within its organization are directly and vicariously. Direct responsibility occurs when someone in a leadership or official role within the company engages in harassment whereas vicarious liability occurs when a lower-level employee or someone else that might be considered an “agent” of the company behaves inappropriately and the employer fails to take reasonable steps to prevent or stop the harassment (i.e., the company was negligent). Therefore, the court concluded that the employer could not be responsible for the harassment at issue because the client who committed the act was not an agent of the company.

This ruling stands apart from most other federal appellate court opinions where employer liability for client harassment is subject to a negligence standard like that assigned to cases involving harassment by co-workers. As such, the Sixth Circuit has narrowed the circumstances under which employers in Ohio, Tennessee, Michigan, and Kentucky can be held responsible for harassment by non-employees.

While this case has potential for Supreme Court review, the timing of if or when that might happen is currently unknown. Therefore, it is important that employers in Ohio, Tennessee, Michigan, and Kentucky review their internal reporting and investigation procedures to align with this heightened standard and ensure timely and appropriate responses to employee harassment claims.

(This blog, prepared by Campanella Law Office, is for general informational purposes only and is not intended to convey specific legal advice, nor is it intended to create or constitute an attorney-client relationship.)

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COBRA & Mini-COBRA: What Employers and Employees Need to Know about Federal and State Compliance

Administrator — Wed, 27 Aug 2025 01:16:49 +0000

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that allows employees to continue group health coverage after a covered employee experiences a specific qualifying event, such as job loss. Yet, Federal COBRA only applies to employers with 20 or more employees, leaving employees of smaller businesses ineligible for continued coverage.

Fortunately, most states have their own mini-COBRA or Continuation Coverage laws which fill the regulatory void for smaller businesses with 20 or fewer employees. However, because these laws may impose more strict requirements, it is important for employers and employees to be familiar with both their state and federal continued coverage laws.

The chart below is a general, non-exhaustive comparison of Mini-COBRA laws in New Jersey, New York, Ohio, Vermont, and Pennsylvania to the federal requirements.

Jurisdiction	Size Covered	Duration of Coverage	Qualifying Event	Election Period
Federal COBRA	20+ employees	18 months (job loss); 29 months (disability); 36 months (other events)	Job loss, reduction in hours, divorce/legal separation, death of the covered employee, Medicare eligibility, dependent aging out	60 days to elect after notice of qualifying event
New Jersey	2–50 employees	Up to 18 months (employees); up to 36 months (dependents in certain circumstances); 29 months (if disabled)	Job loss, reduction in hours, death of the covered employee, divorce or legal separation, or a dependent child ceasing to be eligible under the plan.	30 days to elect from the qualifying event
New York	Employers of all sizes	Up to 36 months	Job loss, reduction in hours, death of the covered employee, divorce or legal separation, or a dependent child ceasing to be eligible under the plan.	60 days to elect from qualifying event or notice of qualifying event (whichever is later)
Pennsylvania	2-19 Employees	Up to 9 months	Job loss, reduction in hours, death of the covered employee, divorce or legal separation, or a dependent child ceasing to be eligible under the plan.	30 days to elect after notification
Ohio	Up to 20 employees	Up to 12 months	Involuntary termination without access to other coverage	The earliest of: · 31 days after previous coverage terminates. · 10 days after your coverage terminates if previously notified of the right to continue coverage. · 10 days after notice sent after termination date.
Vermont	Up to 20 employees	Up to 18 months	Job loss, reduction in hours, death of the covered employee, divorce or legal separation, or a dependent child ceasing to be eligible under the plan.	60 days to elect after notification

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New Law Allows New Jersey Realtors to Form LLCs For Commission Payments

Administrator — Wed, 26 Mar 2025 13:29:16 +0000

New Jersey Realtors are now permitted to form Limited Liability Companies (LLCs) for the purpose of accepting real estate brokerage commissions. The new law, effective February 2025, gives specific permission for a salesperson or broker salesperson (an “Agent”) to operate through an LLC. One of the driving forces behind this law was to eliminate confusion as to whether Agents may take advantage of the pass-through business income deduction.

Simply put, the new law and its implementing regulation, as promulgated by the New Jersey Real Estate Commission (REC), allows an Agent to accept payment of a real estate brokerage commission or other valuable consideration from an LLC. It also permits an Agent to form and LLC for the purpose of receiving a commission or other valuable consideration.

The new law and its implementing regulation also clarifies that an Agent who is compensated entirely on a commission basis is not an employee for the purpose of State unemployment compensation law, and other applicable labor laws. Other highlights include:

• An outline of requirements for entity registration.

• The requirement that the Agent seeking registration of an entity must be a member, partner, shareholder, or otherwise have ownership interest in the entity.

• The clarification that an entity formed pursuant to the new law may not be registered by more than one Agent.

Of course, Agents operating through an LLC must also remain mindful of all laws, regulations, and ethical standards that govern real estate transactions such as those addressing the duty to ensure transparency in commission payments. Therefore, Agents that choose to take advantage of the new law should provide clear and complete explanations to their clients of how and why the commissions are being routed through LLCs.

(This blog, prepared by Campanella Law Office, is for general informational purposes only and is not intended to convey specific legal advice, nor is it intended to create or constitute an attorney-client relationship.)

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Top 5 Reasons Why Even Small Charities Should Collaborate with an Attorney

Administrator — Wed, 05 Mar 2025 14:13:10 +0000

In this age of “do-it-yourself” attitudes and endless resources at everyone’s fingertips, it may be tempting to operate a small charity without a lawyer’s assistance. However, overall, is it sensible? While there is no doubt that most individuals can manage many day-to-day tasks, here are five reasons a charity might benefit from the careful attention of an attorney:
1. An attorney can assist with the initial formation and registration of your charity. Charitable solicitation laws may vary depending on the mission of your organization and the state or states in which it plans to do business and solicit donations.

2. An attorney can provide guidance and support in a charity’s application for and maintenance of federal tax-exempt status. While charities undeniably benefit from tax-exempt status, it does come with its own set of rules and regulations.

3. An attorney can assist with the establishment of your charity’s initial governing documents including drafting bylaws and policies that will outline the roles and responsibilities your charity’s board of directors, officers, and volunteers, ensuring the effective management and success of your charity.

4. An attorney can assist with risk management including addressing liability issues that may arise with fundraising events, volunteers, vendors, and donors. Carefully reviewing contracts is essential to protecting a charity’s interests.

5. An attorney can provide guidance and support in navigating fundraising regulations, ensuring solicitation and donor disclosure practices are compliant with state and federal law.
Overall, investing in legal assistance during an organization’s formation or establishing a long-term relationship for periodic consultations with an attorney contributes significantly to good governance and a well-run organization.
(This blog, prepared by Campanella Law Office, is for general informational purposes only and is not intended to convey specific legal advice, nor is it intended to create or constitute an attorney-client relationship.)

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NJ Pay Transparency Act: New Law Requires Disclosure of Salary Information to Employees and Job Applicants

Administrator — Tue, 19 Nov 2024 16:34:10 +0000

On Monday, Governor Phil Murphy, signed iS2310 into law. The new Pay Transparency Act is expected to promote fairness and reduce pay gaps in the workplace by requiring employers to disclose specific information about employee compensation.

In accordance with S2310, any person, company, corporation, firm, labor organization, or association which has ten (10) or more employees over twenty (20) calendar weeks and does business, employs persons, or takes applications for employment within the state must:

Make a reasonable effort to announce, post, or otherwise make known to all current employees, new job or available promotion opportunities advertised internally or externally prior to filling the position.
Disclose in each posting, either internally or externally, the hourly wage or salary, or range of salary and a general description of benefits and other compensation programs.

The new pay transparency law will take effect on June 1, 2025. While there are discrete exceptions for promotions based on years of experience or performance, or positions filled due to emergent circumstances, failure to comply could result in a fine of $300 for the first violation and $600 for subsequent violations. The Commissioner of Labor and Workforce Development will enforce the law, however there is no private right of action for employees.

With consideration to the June 1 effective date, New Jersey employers should consider reviewing their pay practices and recruitment policies; making sure those who oversee staffing and hiring are aware of the new requirements contained in the pay transparency law.

(This blog, prepared by Campanella Law Office, is for general informational purposes only and is not intended to convey specific legal advice, nor is it intended to create or constitute an attorney-client relationship.)

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CTA UPTADE…AGAIN: FinCEN Cancels Reporting Requirement for All U.S. Entities

Administrator — Mon, 04 Nov 2024 18:36:43 +0000

Domestic Small Businesses may now all breathe a collective sigh of relief as the U.S. Department of the Treasury, Financial Crimes Enforcement Network, published a new interim final rule exempting all entities created in the United States from the requirement to report beneficial ownership information under the Corporate Transparency Act. The interim rule will remain in effect until a final rule is issued, following a 60-day public commentary period. This office will update you should there be any material changes to the interim rule based on that commentary.

Prior publications on this topic follow below.

CORPORATE TRANSPARENCY ACT REMINDER: Filing Deadline Looms for Companies Formed on or Before December 31, 2023

The Corporate Transparency Act (CTA) was adopted as part of the 2021 National Defense Authorization Act to create a federal database of company owners to protect against terrorism and prevent illegal activities such as tax fraud or money laundering.

Therefore, covered business entities are required to disclose information about the company’s beneficial owners to the US Treasury’s Financial Crimes Enforcement Network (FinCEN) within certain time frames governed by the date of the entity’s formation. The most recent filing deadlines are:

Entity Formation Date	Entity Filing Deadline
On or Before December 31, 2023	December 31, 2024
Between January 1, 2024, and January 1, 2025	Within 90 days of formation
After January 1, 2025	Within 30 days of formation

Except for a few exemptions, all entities created by the filing of a document with the secretary of state are subject to the new mandate. The company will be responsible for providing information including its name, principal place of business, the jurisdiction of the entity’s organization, and its taxpayer identification number. Its beneficial owners – those individuals who ultimately own or control the company – will be required to report Personal Identifiable Information including a copy of their driver’s license or passport.

Filing is a relatively simple process through FinCEN’s CTA Website. First, companies should review the Small Business Compliance Guide. Additional information can also be found on FinCEN’s BOI FAQ page.

Although there has been much discussion of pending litigation that might relieve companies from compliance, current court rulings make that unlikely. Therefore, to avoid hefty financial and possibly criminal penalties, all covered entities formed on or before December 31, 2023, should get their filings done soon.

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HIPAA Audit Program Has Resumed: Are Your Cybersecurity Policies Ready for Review?

Administrator — Mon, 04 Nov 2024 16:51:26 +0000

Recently, the Health and Human Services Office for Civil Rights (HHS OCR) announced that it would be resuming the Health Insurance Portability and Accountability Act (HIPAA) Audit program established by the Health Information Technology for Economic and Clinical Health Act of 2009 (the “Act”). The audits will focus on the HIPAA security rule which establishes a national standard for protecting individuals’ electronic personal health information (ePHI). As such, the rule mandates that appropriate administrative, physical, and technical safeguards be in place to ensure the confidentiality, integrity, and security of ePHI.

The audits intended to gauge compliance with HIPAA, identify best practices, discover risks and vulnerabilities, and implement preventative measures to address potential breaches. The first round of audits took place in 2009, and a second round was completed between 2016 and 2017. According to the HHS OCR, the current round of audits will focus on the security rule due to growing concerns surrounding increased cybersecurity incidents and breaches caused by hacking, malware, and ransomware.

As a prerequisite to the newest round of audits, the HHS OCR has begun to issue “HIPAA Audit Participant Surveys” to those covered entities and business associates that participated in the 2016-2017 HIPAA audits. Covered entities include most health care providers, health plans, health care clearinghouses, and their business associates. The information collected from the surveys will, among other things, help measure the effectiveness of previous audits and help improve the audit program, overall.

In anticipation of the audits that will certainly follow, covered entities should consider conducting their own internal review of ePHI security policies to identify weaknesses and to address compliance gaps which might exist. To assist small to medium-sized health care practices with this process, the HHS OCR maintains a public database of privacy and security resources and tools including a security risk assessment tool.

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Rental Registration: What Ohio Landlords Need to Know about Revised Law, Effective October 24, 2024

Administrator — Mon, 21 Oct 2024 15:25:51 +0000

In September 2007, Ohio Revised Code Sec. 5323.02 went into effect; requiring all Ohio residential rental property owners in counties with a population of more than 200,000 residents to register their properties with the County Auditor. At the end of this month this requirement will be receiving a small but important addition.

As of October 24, 2024, any agent designated to manage the residential rental property on the owner’s behalf my file, update, or do anything otherwise required by the residential registration. The remainder of ORC Sec. 5323.02, however, remains the same.

According to the law, a “residential rental property” is defined as:

A real property parcel on which at least one dwelling unit that is leased or otherwise rented to tenants solely for residential purposes is located.
A real property parcel that is in a mobile home park or other permanent or semi-permanent site at which lots are leased or otherwise rented to tenants for parking a manufactured home, a mobile home, or a recreational vehicle that is used solely for residential purposes.

Failure to comply with the law may result in a fine or penalty and could hinder eviction efforts, depending on the county’s and/or municipality’s local regulations and ordinances.

If you aren’t sure whether your county falls above the 200,000-population threshold, recent census information can be found at the United States Census Bureau Website.

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New Year, New Data Privacy Law: What New Jersey Businesses Need to Know

Administrator — Wed, 25 Sep 2024 14:07:44 +0000

The implementation of P.L.2023, c.266 makes New Jersey the thirteenth state to recognize and act upon the need for greater transparency and accountability with regard to the handling of personal information.

The new data privacy law strengthens consumer rights by requiring businesses to adopt data protection measures and notice requirements to ensure the privacy of sensitive information and give consumers greater control over the management of their personal information.

With few narrow exceptions, the provisions of the new data privacy law are applicable to businesses that determine the purpose and means of processing personal data if the entity conducts business in New Jersey or produces products or services that are targeted to residents of the state, and that during a calendar year either:

controls or processes the personal information of at least 10,000 consumers (excluding personal data processes for the purpose of completing a payment transaction); or
controls or processes the personal data of at least 25,000 consumers and derives revenue or receives a discount on the price of any goods or services, from the sale of personal data.

If applicable, a covered business must provide a detailed notice to consumers that includes information regarding what type of personal data is being processed, why it is being processed, to whom the data is being disclosed, and how individuals may contact the business to appeal a decision that has been made regarding their personal data.

In addition, the new data privacy law affords consumers the right to request the correction or deletion of their personal information and the ability to opt out of the processing of their personal information for the purpose of selling the data and targeted advertising or profiling, without fear that the business will discriminate against them for that decision.

New Jersey’s new data privacy law also requires that, beginning six months after the effective date, businesses must allow consumers to opt-out of processing of their personal data by using a user-selected universal opt-out mechanism. Specifications of that mechanism are outlined in the new law and shall continue to be guided by rules and regulations adopted by New Jersey’s Division of Consumer Affairs in the Department of Law and Public Safety.

Moreover, New Jersey’s new data privacy law requires that businesses limit the data collected to that which is adequate, relevant, and reasonably necessary, and that they establish data security practices to protect the collected information.

(This blog, prepared by Campanella Law Office, is for general informational purposes only and is not intended to convey specific legal advice, nor is it intended to create or constitute an attorney-client relationship.)

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Ohio Legislators Introduce New Law to Protect Liquor Permit Holders and their Patrons

Administrator — Wed, 07 Aug 2024 02:27:14 +0000

On April 23, 2024, Ohio legislators introduced a new law that is meant to both save lives and protect alcohol-serving establishments from liability. Named “Hayden’s Law” after a 25-year-old Summit County resident who died in a car accident after leaving a bar extremely intoxicated, House Bill No. 504 will require alcohol server training and provide civil liability immunity to those establishments who successfully complete and implement the training.

Although the new legislation leaves the specifics of the training to be established by the Superintendent of Ohio’s Division of Liquor Control, the training shall include the following:

Instruction on the relevant statutes and rules governing the sale of beer, wine, mixed beverages, and intoxicating liquor.
Instruction on preventing the illegal service of beer, wine, mixed beverages, and intoxicating liquor to underage patrons.
Instruction on recognizing and when to decrease and stop serving individuals due to the risk of intoxication.
Instruction on the use of conflict management skills in alcohol-related situations.

Currently, permit holders and their employees can be held liable for the death, personal injury, or property damage occurring on their premises or parking lot which is under their control and was proximately caused by the negligence of the permit holder or its’ employee. Permit holders and their employees are also liable for personal injury or damages occurring away from their premises if they served a noticeably intoxicated person or underage person and that person’s intoxication proximately caused the death, damage or injury. However, if signed into law, House Bill No. 504 would provide those who successfully complete and implement the training protocols additional immunity from civil liability.

Hayden’s Law is currently in the early stages of consideration and has a long road ahead before being signed into law. However, if you are the owner of an establishment that holds a liquor license, it is always a good idea to refresh your memory of Ohio’s laws related to liquor service and establish your own policies regarding same. You can find additional information on Ohio’s liquor laws, including a Alcohol Server Knowledge (ASK) program, on the Division of Liquor Control’s Website.

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