When Regulators Come Knocking, Here's How to Deal: Tips From Checkr's GC
When it comes to handling regulators, there are a few different philosophies to choose from, according to Checkr's Irene Liu.
October 01, 2018 at 05:51 PM
3 minute read
The ability to comply with growing regulations and work successfully with those who create and enforce them can make or break a company, especially in the fast-moving tech industry.
On Friday, San Francisco-based online background check company Checkr's general counsel Irene Liu gave in-house lawyers at the University of California Berkeley Law School's Peer 150 General Counsel Institute her tips for dealing with regulators in a number of situations.
“You could be proactive, interactive or reactive,” Liu said, but the right strategy varies based on company, industry and timing.
A proactive stance works in the situation tech companies often find themselves in—attempting to navigate laws that don't exist yet. Liu said that if it's clear regulations will eventually come, legal leaders should plan for them and, if possible, help shape them.
That means reviewing internal policies and setting standards that are likely to meet future regulation. It also means developing a presence in Washington, D.C.
“Go in earlier and influence, before they [create] the legislation that impacts you,” Liu said. Meeting with regulators before any issues arise allows a company to start off on good terms. If legal's first conversation with lawmakers is an unfriendly one prompted by regulators' concerns, Liu said lawyers ”will regret not going in earlier.”
Companies can get their foot in the door by hiring former Washington insiders. Here, Liu noted there's one crucial element: the person should be well liked. Having a rude, standoffish person representing the company won't help boost its image.
But company representatives shouldn't just be respectful to top lawmakers. Liu said junior attorneys and other staffers have influence as well, so it's important to make a good impression.
The interactive strategy can come into play here. Liu said companies should let lawmakers know that they're available to send someone to industry-perspective hearings and to discuss any updates to their product. This also provides a chance to highlight the positive work a company is doing.
“If you have a great mission, talk to the regulators about it,” Liu said. One of Checkr's goals is to do good by helping formerly incarcerated individuals find jobs. Liu said her team ends meetings with regulators by discussing this goal, as it sends a message to lawmakers.
But not every company, tech or otherwise, should take the interactive or proactive approach.
If regulations don't seem to be coming in the near future, and if their installment could put an end to a company still getting off the ground, Liu said it might be best to lay low and take the reactive approach.
“[If you] don't foresee an instance where government will be coming down with a regulation on your product, you may be raising your profile unnecessarily,” Liu said.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllHow Marsh McLennan's Small But Mighty Legal Innovation Team Builds Solutions That Bring Joy
Aggressive FTC May Force Merging Companies to Bolster Legal Defenses
4 minute readBest Legal Departments: How Blackstone's Legal and Compliance Team Got the All-Clear to Grow Business
CEOs Want Data-Based Risk Management; GCs Lack the Tech to Do So.
Trending Stories
- 1Cannabis Took a Hit on Red Wednesday, but Hope Is On the Way
- 2Ben Brafman Defending Celebrity Rabbi in Lawsuit by Miami Hotel
- 3People in the News—Dec. 23, 2024—Barley Snyder, Marshall Dennehey
- 4How I Made Office Managing Partner: 'Be a Lawyer First, Foremost and Always,' Says Matthew McLaughlin of Venable
- 5Bar Report - Dec. 23
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250