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CLIENT ALERT: Update on Discrimination

Client Alert

The “#metoo” presence and the recent Kavanaugh confirmation hearings have brought sexual discrimination issues to the forefront of the American mind.  Always an incendiary and confusing topic, it also includes various permutations of issues involving sex, sex stereotyping, sexual orientation, and  transgender  situations.  Employment issues abound, including proper use of restrooms and disciplinary matters. “LBGTQ” are more than mere letters strung together.

Cuyahoga County passed an ordinance recently which applies to all Cuyahoga County cities and townships, making it unlawful for any business to discriminate against any person based on their sexual orientation or gender identity.  A Commission on Human Rights was designated to investigate and rule on complaints.

Similarly, the City of Akron passed an ordinance expanding equal employment for employees working in the city.  Employers are prohibited from discriminating against employees located in the city, as well as businesses that take contracts from the City but are located elsewhere.  Employers with 4 or more individuals are prohibited from discriminating on the basis of the “traditional” bases (such as race, color, religion, etc.), but also on the basis of gender identity or sexual orientation.  The ordinance also created the Akron Civil Rights Commission to receive and investigate complaints.

The Equal Employment Opportunity Commission (“EEOC”) has taken the position that discrimination on the basis of sex includes transgender, sexual identity, and sexual orientation.  The Ohio Civil Rights Commission is the state investigative arm that similarly investigates such complaints (which they often term as a “Charge”).

Ohio is located in the Federal Sixth Circuit.  The Sixth Circuit Court of Appeals recently decided a case involving transgender issues, and also discussed whether a religious belief may play a part in an employer’s decision to terminate an employee.  That case is now on appeal to the United States Supreme Court and, no matter how the Supreme Court rules (and whether or not the Court decides to take the case for review), employer-employee relations will be affected.

Given the currently charged atmosphere, employers should consider a review of their employment practices and handbooks.  In addition, management training should be considered to stay ahead of the trends in this important area. 

If you would like more information, please contact Richard L. Williger at (330) 253-3770 or rlwilliger@bmdllc.com.

 


New Ohio Reporting Requirements for Non-Residential Contractors

Ohio’s E-Verify Workforce Integrity Act, effective March 19, 2026, requires all nonresidential construction companies, subcontractors, and labor brokers to use E-Verify to confirm employee work eligibility on projects across the state. The law applies regardless of company size and carries financial penalties and potential restrictions on future state contracts for noncompliance. Some uncertainty remains around requirements for existing employees, making early compliance planning important.

DOT Non-Domiciled CDL Rule

A new rule from the Federal Motor Carrier Safety Administration (FMCSA) will significantly narrow eligibility for non-domiciled Commercial Driver’s Licenses (CDLs) beginning March 16, 2026. The rule limits eligibility to holders of H-2A, H-2B, and E-2 visas and eliminates Employment Authorization Documents (EADs) as qualifying proof of work authorization. As a result, many lawfully present and work-authorized immigrants, including refugees, asylees, DACA recipients, and Temporary Protected Status holders, will no longer be able to obtain or renew a non-domiciled CDL. The change is expected to affect roughly 194,000 drivers nationwide and has prompted multiple legal challenges, including a pending emergency stay request before the United States Court of Appeals for the District of Columbia Circuit.

FinCEN Residential Real Estate Reporting Rule Now in Effect

FinCEN’s new Residential Real Estate Reporting Rule, effective March 1, 2026, requires certain real estate transfers to be reported to combat financial crimes. Transfers of residential property to entities or trusts without financing may require a Real Estate Report.

Department of Education Proposes Redefinition of “Professional Degree,” Excluding Nursing and Limiting Graduate Loan Borrowing

The U.S. Department of Education has issued a Notice of Proposed Rulemaking that would redefine “professional degree” programs under the One Big Beautiful Bill Act. The proposal excludes nursing from the recognized list and would impose new borrowing limits for graduate students while eliminating the Grad PLUS program. Public comments are due by March 2, 2026.

First-of-Its-Kind Federal Ruling Finds Use of Consumer AI Tool May Destroy Attorney-Client Privilege

On February 10, 2026, Judge Jed Rakoff of the U.S. District Court for the Southern District of New York issued a first-of-its-kind ruling finding that documents generated by a criminal defendant using a consumer AI platform were not protected by attorney-client privilege after being shared with counsel. The court treated the AI tool as a third party, concluding that entering sensitive information into a publicly available platform may waive confidentiality. The ruling also suggests that the work product doctrine may not apply where AI-generated materials are created independently by a client rather than at counsel’s direction. The decision signals that parties should exercise caution when using consumer AI tools in connection with legal matters.