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New Ohio Recovery Housing Rules Take Effect January 1, 2025

Client Alert

Ohio is implementing new regulations to enhance accountability and quality in recovery housing. These changes, effective January 1, 2025, will impact certified community behavioral health providers and their referral practices.

The following text is an excerpt from the Ohio Department of Mental Health and Addiction Services, published on December 31, 2024. 

"In accordance with Ohio law (R.C. 5119.394), OhioMHAS has established a registry of recovery housing residences that are accredited (or its equivalent) by certain accreditation organizations or, if newer (in operation for not more than 18 months), are actively engaged in efforts to obtain such accreditation. Beginning Jan. 1, 2025, certified community behavioral health providers are prohibited from referring clients to a recovery housing residence that is not on the statewide recovery housing residence registry at the time of the referral."

Read the full update here.

If your organization needs assistance navigating the new recovery housing rules or ensuring compliance with Ohio’s updated regulations, please contact Member Daphne Kackloudis at dlkackloudis@bmdllc.com.


Corporate Transparency Act Effective Again

The federal judiciary has issued multiple rulings on the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. Previously, enforcement was halted nationwide due to litigation in Smith v. U.S. Department of the Treasury. However, on February 18th, the court lifted the stay, reinstating the CTA’s reporting requirements. Non-exempt entities now have until March 21, 2025, to comply. Businesses should act promptly to avoid civil penalties of $591 per day and potential criminal liability.

Status Update: Physician Noncompete Agreements in Ohio

Noncompete agreements remain enforceable in Ohio if they meet specific legal requirements. While the AMA and FTC have challenged these restrictions, courts continue to uphold reasonable noncompete provisions for physicians. Recent cases, like MetroHealth System v. Khandelwal, highlight how courts may modify overly restrictive agreements to balance employer interests with patient care. With ongoing legal challenges to the FTC’s proposed ban, Ohio physicians should consult a healthcare attorney before signing or challenging a noncompete agreement.

Immigration Orders and Their Economic Impact on Small Business: Insights from Attorney and Former Immigration Judge Rob Ratliff

President Trump's recent executive orders, targeting immigration policies, could significantly impact small businesses in Ohio, particularly those owned by undocumented immigrants. With stricter visa vetting, halted refugee admissions, and potential deportations, these businesses face uncertainty, workforce disruption, and closures. Ohio's immigrant-owned businesses, especially in food services and transportation, contribute billions to the state economy, and any disruption could result in economic ripple effects.

Corporate Transparency Act Ruling from the U.S. Supreme Court

The U.S. Supreme Court recently ruled on the enforceability of the Corporate Transparency Act (CTA), lifting an injunction previously imposed by the Fifth Circuit. However, a separate nationwide injunction remains in effect, meaning businesses are still not required to comply with the CTA’s reporting requirements. FinCEN continues to accept voluntary reporting while enforcement remains paused.

Lead Paint Contamination and Resources for Ohio Landlords

Children are exposed to lead-based paint, which was used in most homes until it was banned in the US in 1978 and “can severely damage the brain and central nervous system causing coma, convulsions and even death.” Property owners and landlords should educate themselves on regulations and resources to mitigate their own liability.