United States: Compliance

The SEC's Division of Examinations has identified six critical compliance issues that investment advisers commonly encounter during annual reviews. Understanding these deficiencies—from incomplete procedures to inadequate documentation—can help firms strengthen their compliance programs and avoid regulatory violations.

California federal courts continue to classify SMS messages as telephone calls under the TCPA's Do Not Call provisions, diverging from nationwide trends. The Ninth Circuit's interpretation, inadvertently broadened by a Republican National Committee case involving MMS messages, has created binding precedent that district courts are now applying to DNC claims.

A federal court in Virginia has ruled that text messages do not qualify as "telephone calls" under the TCPA's do-not-call provision and that cell phones are not "residential lines." The decision joins a growing number of courts adopting similar interpretations, significantly impacting how businesses and plaintiffs approach TCPA litigation.

The National Labor Relations Board has reinstated the burden-shifting standard from General Motors LLC for evaluating whether employees lose NLRA protection when engaging in misconduct during protected activities. This decision reverses the 2023 Lion Elastomers II ruling and restores a framework that allows employers to discipline abusive conduct while navigating the tension between labor law protections and anti-discrimination obligations.

The District of Columbia City Council has enacted legislation that will significantly reduce paid leave benefits available to workers under the D.C. Universal Paid Leave Act, effective October 2026. The changes will decrease family leave from twelve to six weeks and medical leave from twelve to ten weeks, while also lowering the maximum weekly benefit from $1,190 to $1,100.

Delaware continues to issue verified report notices that can require companies to certify their unclaimed property reporting and provide supporting information within specified deadlines.

The Department of Homeland Security has not issued formal determinations for Temporary Protected Status designations for Ukraine and Sudan despite the October 19, 2026 expiration date, creating uncertainty for employers navigating Form I-9 compliance and employment authorization documentation. USCIS states that affected individuals retain TPS protections and work authorization, but has not updated operational guidance to explain how employers should document continued employment eligibility or handle

The Department of Justice's National Fraud Enforcement Division and HHS Office of Inspector General have announced a coordinated policy that streamlines voluntary self-disclosures of healthcare fraud. Companies can now disclose potential criminal conduct to a single point of contact and receive benefits under both DOJ's Corporate Enforcement Policy and HHS-OIG's Self-Disclosure Protocol, eliminating the need for multiple simultaneous disclosures.

Maryland employers must comply with new posting requirements under the Worker Freedom Act, which prohibits penalizing employees who decline attendance at employer-sponsored meetings on religious or political matters. The Maryland Department of Labor has released official notices in English and Spanish that must be displayed prominently in workplaces and provided to new hires starting November 1, 2026.