Hot Legal Topics So Far in 2025

As we continue moving through 2025, there are a number of items that we keep getting questions about from our clients. Here is a list of a number of the hot legal topics that are relevant right now and a summary of where those issues stand. This year appears like it will continue the trend of change being the norm in the legal world.

Q: What is going to happen to the estate tax exemption given the 2024 election results?
While predicting the behavior of Congress and the President remains highly speculative, especially in recent weeks, Republican victories in November increase the likelihood that the 2017 Tax Cuts and Jobs Act (TCJA) will be extended. That extension is likely to include maintaining the current ~$14M per person ($28M per couple) estate and gift tax exemption scheduled to expire at the end of 2025. There is also talk about the administration attempting to increase the exemption even further, or to eliminate the estate and gift tax altogether, though such talk remains wholly speculative at this time.

We continue to recommend that families with potential estate tax exposure work closely with their professional advisors to make sure that they are ready to move if Congress does not extend the TCJA estate tax exemption and the amount gets cut in half at the end of 2025. All types of advisors in this area are busy dealing with this already and waiting until the end of the year could cause you to miss your opportunity.

Q: How is AI going to impact my business?
The legal issues surrounding artificial intelligence remain a hot topic and come up in many different ways. Common issues that come up include:

• How can a company incorporate AI into their existing products and services?
• How to use AI internally for their production, marketing, and HR services?
• How does a company protect its intellectual property while using AI?
• Does a company need an AI policy?
• How does AI fit within data privacy and other rules that apply to the business (particularly for finance, healthcare, and other entities that have special privacy requirements)?

There are no magic answers to these questions, and the fast evolution of the underlying technologies means that the right answer today may very well change in a relatively short period of time. In addition, various states and federal agencies continue to move forward with various regulatory approaches to address data security and AI. For example, the Iowa Act Relating to Consumer Data Protection (ICDPA), approved and signed in 2023, became effective as of January 1, 2025, and provides a variety of rules regarding the safeguarding of consumer information for companies that meet certain thresholds. The ICDPA does not include a private right of action and is fully enforced by the Iowa Attorney General’s office. Other states with statutes coming into effect in 2025 (so far) include New Jersey, New Hampshire, and Kentucky (January 1, 2026).

California and the European Union continue to actively debate a variety of statutory and regulatory actions regarding the continued development and use of AI and AI-enabled tools. Generally, we recommend that companies continue to stay informed, to be purposeful and thoughtful in how they are used, to treat AI tools with a reasonable level of caution as they implement them in their business, and to ensure that there remains accountability and oversight of the work product and
internal uses of AI.

Q: What is going to happen in the area of employment law?
We are getting a number of questions about what is going to happen in the employment and labor law areas. Not surprisingly, we expect that enforcement activities will likely be decreased in many areas under a Trump administration, though immigration enforcement activity has already (and is likely to continue) at a higher rate. In addition, while currently subject to a federal court stay, it seems unlikely that a Trump FTC will continue to pursue its proposed ban on non-competition agreements. For federal employees there have already been sweeping and well-publicized changes taken by the Trump administration, and we expect additional actions and responses
to be a relatively common occurrence at least in the near term. Overall, employers can likely expect significant changes and turmoil with respect to employment laws and enforcement in the coming years.

Q: How are the various freezes to federal funding going to impact my business?
Many clients are also potentially going to be impacted by freezes and changes in priorities with respect to infrastructure funding under the Inflation Reduction Act and Infrastructure Investment and Jobs Act, as well as freezes in funding immediately following President Trump’s inauguration.

Companies that are directly or indirectly involved in existing or proposed infrastructure projects are trying to figure out what is going to happen and what remedies they may have with respect to work in process and future jobs. Overall, there remains significant uncertainty in this area and most clients are currently watching closely to see where things land with respect to these funds.

Q: Is the Corporate Transparency Act (CTA) and its related beneficial ownership filing still required?
Companies are likely tired of hearing about the CTA and related compliance obligations over the last two years. Over the last few months, there has been a rollercoaster of legal activity regarding the requirement to file beneficial ownership information under the CTA. The status of the CTA and a company’s filing obligations are as follows:

• Currently reporting companies are not required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so.
• Companies may continue to voluntarily submit the information if they don’t want to worry about it or follow the legal drama surrounding the law. This is accurate as of writing this article in mid-February, so there is definitely a chance something could change in the interim. If you are potentially required to file and have not, you will want to keep an eye on the news about this law.