State & Local

3 Ways Burgeoning AI Use Can Trip Up Benefits Providers

Kellie Mejdrich

As the use of artificial intelligence in the employee benefits space grows, experts warn that the companies need to be vigilant to guard against mishaps caused by the emerging technology. Here, Law360 looks at three areas where benefits attorneys say AI can cause legal headaches.

Billionaire Tax Headlines Calif. Tax Ballot Measures

Maria Koklanaris
Senior Tax Correspondent

Of the many state and local tax measures voters will see on their ballots Tuesday, none is poised to have a greater impact than California's Proposition 40, which would levy the nation's first-ever tax on the wealth of billionaires.

State And Local Tax Takeaways From October

Paul Williams
Tax Correspondent

From Microsoft challenging New Jersey's apportionment of its global intangible low-taxed income to a sales tax compact board's approval of a tax settlement program for remote sellers, October was a busy time for state and local tax issues on several fronts. Here, Law360 highlights key developments from the past month.

How AI Could Help Judges Spot Their Own Biases

In close cases where there’s room for discretion, artificial intelligence could challenge judges’ implicit biases by running counterfactual tests at scale — but any judicial use of such tools would need guardrails, say Arnold Peter at Peter Law and Nancy Rapoport at University of Nevada.

Wishing A Rate Would Stay The Same: SALT In Review

From a proposed move toward graduated income tax rates in Pennsylvania to a Missouri amendment intended to eliminate all taxes there, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

3 Strategies To Reduce AI Sycophancy In Legal Work

The tendency of generative artificial intelligence models to tell users what they want to hear can reinforce attorneys’ confirmation bias when testing the strength of arguments, and it can’t simply be prompted away — but a few practices can help mitigate it, says Michael Ott at Ice Miller.

Tariffs Could Be Behind Surge In FTZ Production Filings

As tariffs reshape production sourcing decisions, manufacturers are seeking foreign trade zone production authority at more than twice last year's pace, making it important to consider the potential duty and export benefits, along with review delays and restrictions that can curb savings, say attorneys at Sidley.

Transfer Pricing Analyses May Apply To Tariff Refunds Claims

Both plaintiffs and defendants in consumer class actions over tariff refunds should examine transfer pricing analyses, which can offer contemporaneous evidence as to how much of a tariff was borne in the U.S. by the importer or consumers rather than absorbed earlier in the supply chain, say economists at The Brattle Group.

Allowed To Usurp A Power Of Congress: SALT In Review

From a defeat in court for challengers of a New Jersey rule on businesses online to a proposed supermajority requirement in Iowa, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

Importer Risk Rises As AI Enters Trade Fraud Enforcement

The Trump administration's new data-driven and artificial intelligence-enabled push against tariff evasion raises the stakes for companies with global supply chains, making it crucial that they consider strengthening response protocols, documentation and internal reporting mechanisms, say attorneys at Cooley.

What Lawyers Should Know Before Accepting Crypto Payment

As clients increasingly request to pay legal fees, retainers and escrow funds using cryptocurrency, lawyers should consider how only a handful of state bar authorities have addressed the issue with varying ethics opinions, as well as the related questions that no authority has yet answered, says attorney Felix Shipkevich.

Why And How To Build A Neurodiversity-Informed Practice

By better understanding neurodiversity and implementing simple accommodations for clients with autism, ADHD or learning differences, attorneys can build stronger relationships with those who may otherwise struggle to obtain and benefit from legal services, while developing good habits that will benefit everyone they represent, says Ting Cheung at Sanford Heisler.

Illinois Banking Brief: All The Notable Legal Updates In Q3

Recent banking developments in Illinois include significant new consumer protection legislation, three meaningful Seventh Circuit decisions, and a high-profile constitutional challenge to the state's new digital asset tax, say attorneys at Barnes & Thornburg.

The Courts Are There For A Reason: SALT In Review

From a challenge to Illinois' taxing of digital advertising and social media to the Montana governor's call for a flat income tax, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

What's Next For Prediction Markets If States Win At High Court

While the Supreme Court hasn't taken up a prediction market case yet, a high court win for the states in their quest to regulate the exchanges would likely mean a wave of state legislature bills and regulatory guidance arriving on different timelines, rather than a single uniform transition, says Howard Herndon at Bradley Arant.

AI Meeting Recaps Pose New Discovery And Privilege Risks

The New York City Bar Association’s recent ethics opinion, cautioning attorneys not to record nonclient conversations with artificial intelligence tools, reflects an emerging view that AI meeting recaps are now a distinct business record category, meaning counsel should set meeting-level controls and apply framework-level updates, says William Wright at Faegre Drinker.