The Matrix
The Bottom Line
If your company sends marketing text messages, a new federal appeals court decision may reduce your litigation exposure in certain jurisdictions—but it does not necessarily mean that you should stop honoring do-not-call requests or relax your compliance programs.
On June 9, 2026, a new law took effect in New York targeted at advertisements utilizing “synthetic performers,” including those generated by artificial intelligence (“AI”). Governor Kathy Hochul described the Synthetic Performer Disclosure Law (S.8420-A/A.8887-B) as a first-in-the-nation law that requires any advertisement featuring a “synthetic performer” to include a clear and conspicuous disclosure within the advertisement. The law amends New York General Business Law § 396-b and failure to comply will result in a penalty of $1,000 for a first violation and $5,000 for any subsequent violations.
The Employer’s Wage and Hour Advisor
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.