Blogs

A recent study by Gallagher Re, published in association with MIT and Testudo Global Inc., reveals a troubling reality for enterprises deploying artificial intelligence: traditional insurance policies are failing to cover AI-native liabilities, and the vendors supplying AI tools are structured to avoid bearing these risks. The Gallagher report, Smart Systems, Blind Spots: Rethinking Insurance for the AI Era , finds that the pace of AI adoption has outstripped the insurance industry's capacity to develop responsive products, leaving organizations exposed to a growing class of uninsured liabilities.

Brands are increasingly turning to social media influencers to promote their products and services through organic and immersive content. Social media campaigns using influencers allow brands to benefit from the creativity and likeness of a content creator, resulting in advertising that can feel more natural and authentic to target audiences. Despite this shift, and even when influencers have creative freedom, the legal standards governing commercial speech have not changed; a claim that is deceptive, unfair, or unsubstantiated in a magazine ad or said by paid actors in a TV commercial is equally unlawful when it is tucked into an Instagram Story or Reel by your favorite content creator. Regardless of how organic or bespoke the content may be, brands should apply the same rigor to influencer campaigns that they employ for traditional advertising.

Recently, the U.S. Department of Labor (“DOL”) Wage and Hour Division issued a significant policy shift, announcing it will no longer enforce or apply the 2024 Final Rule on independent contractor classification. The DOL specifically instructed its investigators not to use the 2024 Rule’s analysis in enforcement matters. This move effectively suspends the DOL’s reliance on the more restrictive, multi-factor economic reality test introduced in the 2024 Rule, which had aimed to narrow the circumstances under which workers could be classified as independent contractors under the Fair Labor Standards Act (FLSA).

The U.S. Supreme Court recently settled a long-standing dispute among federal appellate courts regarding the standard of proof required for employers to establish exemptions under the Fair Labor Standards Act (“FLSA”). In E.M.D. Sales, Inc. v. Carrera, the Court ruled that employers may prove a FLSA exemption by a "preponderance of the evidence" only, rather than the more stringent "clear and convincing evidence" standard.