In the internet age of today where employers and employees alike are exposed to countless stories, opinions, blogs, articles and “expert reports,” it can be difficult to distinguish fact from fiction, myth from reality and legal from illegality. One such common myth is that non-compete agreements are unenforceable in North Carolina. Recently, the Federal Trade Commission (“FTC”) acted to bar most agreements, both retroactively and moving forward, with only minor exceptions not applicable to most employees. A nationwide injunction entered before the FTC’s rule went into effect, which injunction remains in place currently. (See our April 24, 2024 Blog “FTC … Continue reading
Category Archives: Corporate Law
FinCEN Exempts U.S. Entities from Corporate Transparency Act BOI Reporting
(March 21, 2025) In line with prior announcements (see Treasury Halts Corporate Transparency Act Enforcement for U.S. Businesses), today FinCEN issued an interim final rule eliminating beneficial ownership information (BOI) reporting requirements for U.S. companies and U.S. persons under the Corporate Transparency Act. The rule redefines “reporting company” to include only foreign entities registered to do business in the U.S., thereby exempting all U.S.-formed entities. Foreign reporting companies must still report BOI under revised deadlines but are not required to report U.S. beneficial owners. FinCEN is accepting public comments and plans to finalize the rule later this year. The rule … Continue reading
Voting in and Around Association Membership Meetings
Important Note: Every community association operates under its own governing documents, and different rules may apply based on state law, bylaws, articles of incorporation, type of association (homeowner association or condominium), and even when the association was created. As a result, this article provides a general discussion of voting methods but is not legal advice. If your association needs guidance on a specific situation, consult one of the community association attorneys at Law Firm Carolinas. We often get questions about how community association membership meetings can vote before, during, and after meetings. With statutory changes made during the past few … Continue reading
Treasury Halts Corporate Transparency Act Enforcement for U.S. Businesses
On Friday we posted FinCEN Pauses Corporate Transparency Act Reporting Penalties Pending New Rule. By Sunday, the death spiral that appears to be the CTA continued, as the US Treasury Department announced suspension of enforcement of penalties and fines under the Act’s beneficial ownership reporting requirements for U.S. citizens and domestic reporting companies. This decision applies both to existing deadlines and future rule changes. Additionally, the Treasury Department plans to propose a rule that will limit the regulation’s scope to foreign reporting companies. The move aims to ease regulatory burdens on American taxpayers and small businesses while ensuring the rule … Continue reading
FinCEN Pauses Corporate Transparency Act Reporting Penalties Pending New Rule
On Thursday, February 27, FinCEN announced that it does not plan to issue fines, penalties, or take enforcement action against companies that miss deadlines for filing or updating Beneficial Ownership Information (BOI) under the Corporate Transparency Act. No penalties will be applied until new interim final rules takes effect. By March 21, 2025, FinCEN intends to issue a rule extending BOI reporting deadlines and providing clearer guidance. This decision reduces regulatory burdens while ensuring BOI reporting focuses on entities posing the greatest national security risks. For more details, visit FinCEN Not Issuing Fines or Penalties in Connection with Beneficial Ownership … Continue reading
Corporate Transparency Act Stay Lifted–FinCEN Announces New Filing Dates
As the result of a ruling on February 17th by the the US District Court for the Eastern District of Texas, the nationwide stay of the Corporate Transparency Act has now been lifted. CTA Beneficial Ownership Information filing requirements to FinCEN are back in effect. FinCEN has announced a new filing deadline of March 21, 2025 for most companies. Details can be found at FinCEN Extends Beneficial Ownership Information Reporting Deadline by 30 Days. General information on Beneficial Ownership Information filing requirements can be found at https://www.fincen.gov/boi.
US Supreme Court Rules on Corporate Transparency Act Injunction
In the ongoing ping-pong game that is the Corporate Transparency Act, today (January 23) the US Supreme Court has allowed the government to enforce the CTA, which requires businesses to disclose their beneficial ownership information. This decision lifts the prior injunction and permits the law’s implementation while its constitutionality is reviewed by the Fifth Circuit. Arguments are scheduled to be heard on March 25. Justice Neil Gorsuch supported immediate action to clarify universal injunctive relief, while Justice Ketanji Brown Jackson dissented, arguing the government failed to demonstrate urgency. To read the case, visit Supreme Court opinions. Based on recent history, we anticipate that FinCEN will soon … Continue reading
Corporate Transparency Act Back on Hold (For Now)
If this feels like legal “whack-a-mole,” you’re not alone! Yesterday, Thursday, December 26, the Fifth Circuit Court of Appeals issued an order vacating its earlier decision to stay the District Court’s preliminary injunction, which had enjoined the enforcement of the Corporate Transparency Act’s (CTA) compliance reporting deadlines. (See Corporate Transparency Act Reinstated by Fifth Circuit Court of Appeals) The Fifth Circuit’s initial stay temporarily allowed enforcement of CTA deadlines while the case was under review. However, the Court has now reversed its earlier decision, explaining that its merits panel is expediting the case and needs to preserve the constitutional status … Continue reading
Corporate Transparency Act Blocked Nationwide by Texas Federal Court
The federal Corporate Transparency Act (CTA) applies to most community associations and has certain federal filing requirements that start as to existing HOAs and condos on January 1, 2025. For more details, see our prior blog posts (What Is the “Corporate Transparency Act” and Why It Matters to Your Association and Directors, Update on The Corporate Transparency Act: Tips for Managers and Board Members, Be Aware of Corporate Transparency Act (CTA) Scams!) or these videos by my law partner Steve Black: Manager’s Update on Corporate Transparency Act or Board of Directors Update on the Corporate Transparency Act. However, yesterday, December … Continue reading
Banish the Phrase “I So Move” from Meetings
A prior article examined Why the Chair Never Asks for Old Business. Let’s take a look at another phrase that’s used too often in meetings when it should be avoided–“I so move.” Sometimes at a board or membership meeting following the remarks of a member or a committee report, the speaker or another member will say “So moved!” or “I so move.” For only 2 or 3 words, few phrases can lead a business meeting into more confusion and trouble. For organizations that follow Robert’s Rules of Order Newly Revised (12th Edition), the phrase “I so move” only appears once. And that’s in … Continue reading
Carole Albright Recognized as Leader in the Law
Carole Albright, Managing Partner of Law Firm Carolinas, has been recognized by NC Lawyers Weekly as a 2024 Leaders in the Law Honoree. The award recognizes legal professionals who have gone above and beyond in their profession through contributions to the practice of law as well as service to the broader community. Carole is a Board Certified Specialist in Family Law as well as a Certified Parenting Counselor and is past Chair of the Family Law Section of the Greensboro Bar Association. She co-chaired and helped organize and lead the Course Planning Committee of the NC Family Law Specialists for … Continue reading
Department of Labor Issues Final Rule for Exemptions to Overtime
The Department of Labor (the “DOL”) has issued a final rule regarding overtime exemptions under the Fair Labor Standards Act (commonly referred to as the “FLSA”), which rule should be noted by employers and employees alike. The FLSA, which applies to most employers throughout the country and, indirectly, their employees, controls the classes or categories of employees that are exempt from overtime pay and what additional factors must be met before employers can avoid overtime payments. Today’s issuance of the new rule follows years of debate, announced rules, and litigation that saw the proverbial pendulum swing, at various times, from … Continue reading
FTC Votes to bar Most Noncompetition Agreements, But Don’t Throw Out Your Noncompete Yet!
The Federal Trade Commission (often referred to as the “FTC”) voted today to bar non-competition agreements or “noncompetes,” both retroactively (for all but top corporate officials and senior executives holding a policy-making position and making not less than $151,164 annually) and in the future. More specifically, employers would be prohibited from: entering into or attempting to enter into non-competition agreements with employees, workers and independent contractors; maintaining a non-competition agreement with workers, employees or independent contractors; or representing to a worker, contractor or employee that he is subject to a non-compete. Those employers with existing non-compete agreements in place for … Continue reading
Holiday Parties and Employer Liability
For many North Carolina and South Carolina businesses, the annual holiday party provides a festive, valuable opportunity to express their gratitude, reward company loyalty, and bolster goodwill amongst employees and, potentially, key customers, clients, and vendors. But with such an opportunity also comes potential downfalls or opportunities for employers to incur unwanted or intended liability. So how can a wise employer capitalize on the positives of holiday gatherings without becoming a Scrooge? By focusing on how and where liability may arise and planning for your festivities just as thoughtfully and strategically as you would when handling other business opportunities. … Continue reading
New Release: AIP Standard Code of Parliamentary Procedure, SECOND Edition
If your organization follows The Standard Code of Parliamentary Procedure (often referred to as “Sturgis”), or the AIP Standard Code of Parliamentary Procedure, or you simply want to learn more about parliamentary practices at meetings, there’s a new book to check out: the American Institute of Parliamentarians Standard Code of Parliamentary Procedure, Second Edition. Stay with me here for some necessary background– Originally by Alice Sturgis, The Standard Code of Parliamentary Procedure was first released in 1950 as a simpler alternative to the Robert’s Rules of Order of its time. The Standard Code had fewer motions, updated archaic terms, modernized … Continue reading
What Is the “Corporate Transparency Act” and Why It Matters to Your Association and Directors
For the past year, community association attorneys have been discussing the impact of the CTA (Corporate Transparency Act). Much of the discussion has been on whether the Act does or does not apply to homeowner and condominium associations. As the effective date of the law is January 1, 2024 (with first reports for existing entities being due no later than January 1, 2025), the need for clear answers has become more pressing. What Is the CTA? The Corporate Transparency Act was enacted in 2021 as part of the Anti-Money Laundering Act of 2020. In short, the Act is intended to … Continue reading
5 Law Firm Carolinas Attorneys Recognized in The Best Lawyers in America
Five attorneys at Law Firm Carolinas have been named to the 2024 Edition of The Best Lawyers in America. Carole Albright, who is a Board Certified Specialist in Family Law, has been recognized in the practice of Family Law. Keith Black, who is a Board Certified Specialist in Family Law, has been recognized in the practices of Family Law and Family Law Mediation. Steven Black, who is a Board Certified Specialist in Residential Real Estate, has been recognized in the practice of Real Estate Law and Community Association (HOA and condo) Law. Jim Slaughter has been recognized in the practices … Continue reading
Lights, Camera, Lawsuit! Your Property, Common Property, and Intellectual Property
Movies and music provide immense amounts of joy and entertainment to people all over the world. Collectively, the movie and music industries are worth upwards of twelve figures in revenue in a single year (for those of you counting the zeros on your hands at home . . . that’s north of $100,000,000,000.00 a year!). Much like you may be protective of your property and your homeowner’s association may be protective of its common property, it is understandable that those in the movie and music industry are also extremely protective of their property. When most people hear the word “property” … Continue reading
Fourth Circuit Makes Ruling on Attorneys’ Fees Amount
Under North Carolina law, parties entering into loan agreements may specify an amount for attorneys’ fees, in the event that one of the parties breaches or there is a default. The prescribed amount of attorneys’ fees may be up to 15% of the amount owed under the terms of the loan agreement. Frequently, the loan agreement is silent about the specific amount of attorney’s and the agreement simply states that the breaching party shall be responsible for “all reasonable fees and expenses.” The applicable statute defines “reasonable” as 15%. The United States Court of Appeals for the Fourth Circuit (which … Continue reading
Meister, Slaughter & Marshall Recognized
Law Firm Carolinas Partner Adam Marshall was a presenter at the Community Association Institute’s (CAI) 2023 Annual Conference in Dallas, Texas. The conference was attended by over 2,600 community managers, homeowner board members, leaders and business partners from 44 states and 10 countries. Marshall and Augustus Shaw, IV, Esq. of Arizona, presented on “Navigating Board Officer Responsibilities and Avoiding Conflict.” Marshall was also recently appointed by the Greensboro City Council to the Greensboro ABC (Alcohol Beverage Control) Board. Marshall has previously served on the Greensboro Human Relations Commission and Greensboro Board of Adjustment as well as Chair of the Greensboro Zoning Commission and … Continue reading