Happy Friday! Welcome to our new weekly column where I will share with you what articles in-house leaders need to know from across our numerous briefings. If you are not familiar with our briefings, I encourage you to check them out and sign up to receive them in your inbox each week.

This week's articles have a little something for everyone including the regularity issues around the GDPR and squeeze on compliance budgets, to the growth of ASPs, to the challenges of running a cannabis company, plus much more.  

Regulatory:

Regulatory issues are keeping lawyers in Europe busy. Fines imposed under the General Data Protection Regulation have been relatively low and infrequent, amounting to about $126 million since the law went into effect in May of 2018. But lawyers say companies need to prepare for bigger GDPR penalties as authorities throughout Europe bolster enforcement efforts and clarify how fines are calculated and imposed.

Why it matters:

As data privacy remains one of the chief responsibilities and concerns of in-house counsel, the challenge of protection and compliance efforts under the GDPR are still a work in progress. Now with data protection going global, this challenge quadruples with stronger laws and enforcement strategies emerging in Latin America, Africa and Asia-Pacific. And on the compliance front, one size doesn't fit all. And therein lies the challenge.

From our briefing The Global Lawyer, a curated selection of our international content from around the globe, across the business of law, in-house, regulatory, technology and more, with expert insights from our senior editors. Delivered weekly to your inbox.

Compliance:

Compliance Cuts? A new survey from Hogan Lovells suggests their budgets of chief compliance officers are being squeezed rather than expanding to meet the need. The survey looked at all aspects of anti-bribery and corruption compliance and collected opinions from 700 chief compliance officers and heads of legal departments at multinational companies with at least 2,000 employees in the United States, Europe and Asia. Compliance leaders in the tech, media and telecom companies are more likely to be dealing with budget cuts and a lack of focus on compliance than in any other industry sector, the survey showed.

Why it matters:

Compliance is one of the issues that keep GCs and their companies up at night. With the increase of fine and enforcement, now more than ever departments need the resources to keep them out of trouble.

From our briefing Compliance Hot Spots, where C. Ryan Barber breaks down the latest developments in compliance, enforcement and government affairs, reporting on what regulators are up to and arming in-house counsel and their outside partners with the insight to obtain better outcomes.

In-House:

A Power Shift. The power that firms once had over in-house legal departments has shifted to the buyer, Catherine Zinn, chief client officer at Orrick, Herrington & Sutcliffe, said at Legalweek in New York. "I think the buyer has shifted and the power has shifted and it's never coming back," Zinn said. This puts firms in a relatively new position and at times wondering what services are best provided for clients.

Rhonda Powell, general counsel of Buzzfeed, said companies and their legal departments are becoming leaner. Because of this, less experienced people are taking on senior roles in an organization "and not wanting to be reminded of that fact." She said it is important for firm attorneys to be able to make a connection with the people they are speaking with.

Why it matters:

It is all about delivery services and what you as the client need from your outside firms. And that is constantly changing and can be challenging. As in-house departments are asked to do more with less, it is up to the firms to ask the right questions and up to in-house counsel to be clear on their needs.

From our briefing Inside Track, were Dan Clark connects the in-house community with a weekly run-through of what and who you need to know to survive and thrive in the modern-day legal department.

Labor & Employment:

Keys to Pay Equity. The first thing employment litigator Jeanne Christensen does when considering whether to represent a potential client in a pay inequity lawsuit is look at photos of the company's management, my colleague Brenda Sapino Jeffreys reports at Law.com. Christensen said in many cases every member of management is a white male. "It's shocking," the Wigdor partner said during a panel discussion on gender and racial pay equity as part of ALM's Legalweek program. She said diversifying leadership is the most meaningful change a company can make toward eliminating gender and racial inequity.

Why it matters:

As we all know diversity of a team is not only the right thing to do, but is great for business. But with diversity also comes the issue of pay equity. And as suits arise in this area, transparency will become the norm in companies, then legal leaders and their companies will be held responsible for salary inequity.

From our briefing Labor of Law, where Michael Scarcella reports on the hot spots in employment law—emerging issues, novel cases and the policy, politics and personalities reshaping the workplace.

Cannabis:

Cannabis Company Conundrums. As a partner in Arent Fox's bankruptcy and financial restructuring group and leader of the firm's cannabis practice, Aram Ordubegian has a front-row seat to all the current industry tumult. Layoffs, scaled-down deals and stock drops are all on the daily headline menu. Ordubegian sees a myriad of state and local regulations, a thriving black market and high rents causing major distress for cannabis companies trying to go mainstream.

So we asked: What's behind some of the distress you're seeing in the cannabis industry?

Ordubegian: During the startup process, some of the things I saw then are some of the reasons why there are problems now. For example, we were all asking these players in the industry who were literally outside of the law yesterday and now all of a sudden they're supposed to be rule-following businessmen and women. "It was like a very foreign thing culturally for them to do. You've got business partners and you ask, "So what is your deal between each other?" And they're like, "Oh yeah, it's 50-50." And the other guy is "Oh no, it's not 50-50, it's 70-30. What are you talking about?" And me, like an ignorant dumb-dumb, I'm like, "Ok, what does your operating agreement say? What does your partnership agreement say?" And they're looking at me like, "Have you lost your mind? We don't have that." So some of that not doing things by the book, because there was no book to do it by in the old days, is coming back and biting them.

Why it matters:

With many high-profile GCs moving into the booming cannabis industry the hurdles and complexities of navigating this new space remain clear. And this is doubly true for those in the space of both a startup and a newly regulated industry.

From our briefing Higher Law, where Cheryl Miller untangles the compliance issues around marijuana legalization, tracks state and federal regulatory developments, and delivers the information lawyers need to advise clients in this emerging industry.

Class Actions:

Facebook Feature. The judge overseeing Facebook's $550 million class action settlement over its "tag suggestions" feature had some questions—a lot of them. At a Feb. 6 hearing, U.S. District Judge James Donato of the Northern District of California asked lawyers why class members in the all-cash settlement would get less than the $1,000 to $5,000 allowed under the Illinois Biometric Information Privacy Act, the landmark statute at issue in the case. He also wanted to know more about the injunctive relief that would ensure Facebook wouldn't make the same privacy violations again. The motion for preliminary approval of the settlement is due March 12.

Why it matters:

As data privacy class action litigation ramps up, courts are holding tech company feet to fire and could set global precedent for violations.

From our briefing Critical Mass, where Amanda Bronstad obsesses over class actions and mass torts, keeping you in the loop on the news that matters—big wins, novel legal strategies, appellate battles and who's getting the work.

A Future Look:

A Good Gig? Despite litigation and lobbying efforts, Uber and Postmates might have to acquiesce to California's Assembly Bill 5, which sets criteria for classifying workers as employees or contractors. This week, U.S. District Judge Dolly Gee of the Central District of California denied the companies' motion for preliminary injunction. "Plaintiffs have not shown serious questions going to the merits—the critical factor in determining whether to issue a preliminary injunction—and, though company plaintiffs have shown some measure of likelihood of irreparable harm, the balance of equities and the public interest weigh in favor of permitting the state to enforce this legislation," Gee wrote.

Why it matters:

In the gig economy, many companies are relying on this type of labor to supplement their workforce. What these cases mean for that industry can have across-the-board implications and dramatic effects as to liability and insurance.

From our briefing What's Next?, where Alaina Lancaster reports on developments at the intersection of law and technology, peering around the corner at the courtroom clashes and policy choices that promise to revolutionize business, life and the practice of law.

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