Brian Ledebuhr is a Shareholder in Vedder Price’s Chicago office and a member of the firm’s Commercial Litigation group. In the following article, Brian Ledebuhr shares his colleagues’ recent summaries of legal developments regarding: (1) President Biden’s Executive Order concerning artificial intelligence; (2) the National Labor Relations Board’s rule about joint employers; and (3) Chicago’s recent paid leave ordinance. Vedder Price is a business-focused global law firm, offering legal services to clients from the United States to the United Kingdom to Asia. The firm provides reliable legal advice for companies large and small. With its global reach, Vedder Price’s professionals are well-versed in the latest legal developments for businesses around the world. Brian Ledebuhr of Chicago notes that, via its “Vedder Thinking” page, Vedder Price provides news, analyses, and happenings in connection with both the firm and the legal industry.

Brian Ledebuhr Examines How His Colleagues at Vedder Price Dig Deep into President Biden's Executive Order on Artificial Intelligence

On October 30, 2023, President Biden issued an Executive Order to make the United States a leader in the development of laws and regulations surrounding artificial intelligence (AI). The Order contains various requirements for purposes of establishing AI safety and security standards, while seeking far-reaching studies and recommendations on almost all aspects of AI. Brian Ledebuhr’s colleagues, Daniel Shulman and Sudip Mitra, evaluated the Executive Order and its overarching implications here. Brian Ledebuhr notes that President Biden’s utilization of the Defense Production Act will place two major requirements on tech-focused businesses that either utilize AI models or provide large computing capacity suitable for AI. First, companies using certain large language AI models will be required to maintain and provide the Department of Commerce with records and reports on the companies’ AI training, including ownership of the training models and testing results for high-risk AI applications. Second, the Order requires companies to report to the Department of Commerce when they acquire or possess large clusters of computing power, and that the reports must include the location of the cluster, as well as the total available computing power for each cluster. According to Brian Ledebuhr’s colleagues, the Order ambitiously seeks to minimize the threat of IP infringement from generative AI models, and the Order further attempts to protect businesses and employees from legal uncertainties regarding the ever-developing field of AI. Brian Ledebuhr further notes that the General Services Administration and other agencies will be responsible for crafting frameworks that focus on the federal government’s use of generative AI.

NLRB's Long-Awaited Final Rule Provides New Guidance for Joint Employers

On October 26, 2023, the National Labor Relations Board (NLRB) published its much-anticipated final rule regarding joint employers. As set out in the summary provided by two of Brian Ledebuhr’s colleagues in the Chicago office, Eugene Boyle and Peyton Demith, the new rule sets out standards for determining when two employers are considered joint employers under the National Labor Relations Act. The current rule requires an entity to exercise and have considerable direct and immediate control over at least one of the essential employment terms to be considered an employer. However, the new rule replaces the list of employment terms considered “essential” with a more expansive list of seven categories of essential terms. Also, according to the new rule—which is set to go into effect December 26, 2023—a party will be considered an employer if it has the authority to control one or more essential terms of employment, regardless of whether that party exercises its control over those terms. Thus, two entities deemed to be joint employers are both obligated to bargain with a union representing the employees, and each party will be responsible if the opposite entity commits unfair labor practices. Because the new NLRB rule will impact employers across the country, Brian Ledebuhr notes that the new rule is likely to be challenged in the courts.

Vedder Price’s Employment Attorneys Offer Insight as to Chicago’s New Paid Leave Ordinance

On November 9, 2023, the Chicago City Council approved the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance (the “Ordinance”), which will take effect on December 31, 2023. The Ordinance is different from the Illinois Paid Leave for All Workers Act (the “Illinois Act”), which requires employers to provide paid leave for any reason and will take effect on January 1, 2024. Summaries of both the Ordinance and the Illinois Act are here and here. According to Elizabeth Hall, Alex Weinstein and Carissa Townsend, the Ordinance applies to any employee who, during a two (2) week period, performs at least two (2) hours of work while physically present in Chicago, even if that employee has a job outside of Chicago but lives in the city and works remotely. And, for applicable employees, they now have up to ten (10) days of paid leave available to them every twelve (12) months, a dramatic increase from the five (5) days of sick time available under the current Chicago sick leave law, and more than that which will be required under the Illinois Act. Brian Ledebuhr notes that the Ordinance also provides a private right of action for employees, and that violations of the Ordinance may result in fines of up to $3,000, and employers may be liable for damages equal to three (3) times the amount of leave denied or lost, plus interest and attorney’s fees. Therefore, Brian Ledebuhr recommends that employers consult their attorneys to closely evaluate their leave policies.

Vedder Price: Taking a Practical, Efficient Approach to the Ever-Changing Commercial Legal Landscape

Brian Ledebuhr says that Vedder Price frequently issues press releases and other articles when there is noteworthy legal news—whether on a local, state, national or international level. As such, companies should contact Brian Ledebuhr or any of his Vedder Price colleagues to discuss these developments and their potential impact on business objectives.