The Office of the Inspector General (“OIG”) recently issued Advisory Opinion 22-08 (the “Advisory Opinion”), concluding that the provision of limited use smartphones by a federally qualified health center (“FQHC”) to existing, low-income patients (the “Arrangement”) lacked the intent required to violate the federal Anti-Kickback Statute (“AKS”)[1] and was not likely to generate remuneration
Statute of Limitations for PPP and EIDL Fraud Extended to Ten Years
On August 5, President Biden signed two bills into law that extend to ten years the statute of limitations for civil and criminal enforcement actions for fraud on the Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loans (“EIDL”). These two bills—the PPP and Bank Fraud Enforcement Harmonization Act of 2022 and the COVID-19 EIDL…
DOJ Investigating FinTech Over PPP Loans
On June 3, a federal court filing in the Southern District of Florida by an Atlanta-based FinTech company revealed that the small business lender is under DOJ investigation for alleged PPP loan approval practices. According to the FinTech, by August 2020, it processed over $7 billion in PPP loans to at least 300,000 small businesses.…
Court Filing Reveals that DOJ Is Investigating Fintech’s Administration of PPP Loans
A federal court filing by a fintech company revealed that it has been under investigation by the Department of Justice (“DOJ”) in relation to its Paycheck Protection Program (“PPP”) loan approval practices for over a year. This rare disclosure of a pre-indictment DOJ investigation warns that the government is refocusing enforcement efforts to the fintechs and…
Union Election Petitions on the Rise, Total Number of FY21 Petitions Eclipses in First Three Quarters of FY22
POSTED IN NATIONAL LABOR RELATIONS ACT, NATIONAL LABOR RELATIONS BOARD, NLRB
On July 13, 2022 the National Labor Relations Board (“NLRB” or the “Board”) announced that by May 25th, 2022 the number of union representation petitions filed with the Board surpassed the total number of petitions filed in all of Fiscal Year 2021. Representation petitions…
A Short Guide To Responding To Employee Concerns About Your Organization’s Actions And Its Mission, Vision, And Values
So, nearly 2 years ago your organization applied for and received COVID-relief funds. The decision was not an easy one. On the one hand, government largesse invariably comes with strings and uncertainties, i.e., risk. On the other hand, your organization faced an unprecedented triple threat crisis: financial, operational, and health. Consumer spending plummeted and its…
CMS ADOPTS MAJOR CHANGES TO LTC FACILITY SURVEYOR GUIDANCE
On June 29, 2022, the Centers for Medicare and Medicaid Services (CMS) announced it issued significant changes to surveyor guidance for Long Term Care (LTC) facility health, quality and safety standards.[1]
Some of the changes reflect clarifications to requirements that become effective during Phase 2 of the revised Requirements for Participation for LTC facilities…
Recap of AHLA’s Annual Meeting
The AHLA’s Annual Meeting held June 27-29 in Chicago reunited healthcare attorneys across the country. The diverse group of attendees were eager not only to reconnect in-person, but also to process the changes that the now-easing pandemic has brought to all corners of the healthcare industry. The conference presenters grappled in real-time with the transitory…
San Francisco Ordinance Requires Employers to Provide Paid Public Health Emergency Leave
San Francisco employers will soon be required to comply with an additional Ordinance providing San Francisco-based employees with paid leave during future public health emergencies. In the June 7, 2022 election, San Francisco voters passed Proposition G. It requires employers with 100 or more employees worldwide to provide up to 80 hours of paid public health emergency…
California District Court Finds that EKRA Applies to Compensation Methodologies for Labs’ Employed Marketers Who Market to Physicians
Since its passage in late 2018, the Eliminating Kickbacks in Recovery Act (EKRA) (18 U.S.C. § 220) has posed interpretive challenges. Our detailed critical analysis of EKRA is available here. EKRA prohibits, among other things, the exchange of remuneration for referrals of patients or patronage to a clinical laboratory, or an individual’s use of…
Office of Civil Rights Publishes Guidance on Use of Audio-Only Telehealth Services
As telehealth services surged in response to the COVID-19 pandemic, unique compliance challenges likewise developed in unexpected ways. Recognizing these challenges, the Office of Civil Rights (“OCR”) indicated that it would exercise its enforcement discretion by declining to impose penalties against covered health care providers for instances of good faith noncompliance with the requirements of…
States Target Infant Formula Price Gouging
There has been a nationwide shortage of infant formula following a recall and temporary closure of a major infant formula manufacturing facility in February 2022. This facility supplied as much as 40% of the nation’s infant formula. In the wake of these events, state attorneys general are on the lookout for unlawful price gouging of infant…
Reminder: San Francisco’s Family Friendly Workplace Amended Ordinance Takes Effect July 2022
On July 13, 2022, San Francisco’s amended Family Friendly Workplace Ordinance (FFWO) goes into effect. All employers who conduct business and have employees working in the City and County of San Francisco or employees who telework, will need to comply with the FFWO. It gives employees the right to request “flexible or predictable work arrangements”…
CFPB Report on Mortgage Servicers Examines Industry Responses After Pandemic Protections End
On May 16, the CFPB released a report examining metrics on mortgage servicers’ responses to the COVID-19 pandemic. According to the report, homeowners are still facing significant risks and challenges in working with mortgage servicers, particularly borrowers struggling with mortgage payments after their COVID-19 hardship forbearances and other protections under the CARES Act have expired.…
The Cannabis Conundrum: Can Cannabis Companies File Chapter 15?
Recreational cannabis is now legal in 19 states and Washington D.C., driving the growth of legal cannabis sales estimated at $33 billion this year—up 32% from 2021—and expected to reach $52 billion by 2026.[1] This movement signals that financial investment in cannabis is not abating but accelerating notwithstanding the impact of the lingering COVID-19…
Zai Jian Zhongguo, Bienvenidos a México: The Trend of Production Moving from China to Mexico – Regulatory and Practical Considerations
In recent years, a wide array of trade actions pursued by the United States, foreign and domestic policies of the United States and China, reputational risks, and supply chain breakdowns are driving a trend of more and more manufacturing moving from Asia to Mexico. The Biden Administration has made no secret of its desire to…