The Mistake of a Business Owner Regarding Wage Theft

Minnesota has the strictest wage theft laws in the nation with both criminal and civil consequences. Those laws were put into place in 2019 with bi-partisan support. Wage theft is much more expansive in its definition that what most people think of as wage theft. Any time that an employer does not pay an employee everything that the employee is owed by law is considered wage theft in Minnesota. Hypothetical #1: Jack and Jill owns Jack and Jill Food Store, Inc. Jack and Jill are frustrated by the cost of overtime for one of their employees. So, they pay that employee...

The New I-9s

With limited exceptions, every employee in the United States must have their immigration employment eligibility verified by an employer upon employment. The U.S. Citizenship and Immigration Services (USCIS) recently published a new version of its Employment Eligibility Verification form (Form I-9), which must be used beginning on November 1, 2023. The employee, at any time after accepting a job offer and the first day of employment, must complete and sign Section 1 of the Form I-9. The employer or authorized representative must complete and sign Section 2 of the Form I-9 within three business days after the employee’s first day of...

Board Governed LLCs

Is your LLC (limited liability company) still governed by a board? Minnesota has only allowed LLCs since 1992. When LLCs were first allowed in Minnesota, the only option to govern an LLC was through a board. As a result, LLCs were very formal entities that required board minutes and other formal documents. In 2015, the Minnesota legislature changed the law. The LLC law changed over the course of three years. As of January, 1, 2018, every LLC was automatically subject to Chapter 322C, which is the new LLC law. If your LLC was automatically subject to Chapter 322C, then it is...

Checks and Balances are Necessary

Hypothetical 1:  Sarah has a successful massage therapy business. One of her long-time friends, Jill, has worked for her for five years. Sarah trusts her completely. Their children are friends, the families hang out weekly, and they attend church together. With massage therapy, a lot of clients pay cash. However, Sarah never requests any documentation about the cash that her employees receive as she trusts them. Then, Sarah makes a startling discovery – Jill has been pocketing some of the cash that clients have paid her for the massages. Hypothetical 2:  Beth has an art gallery. Her longtime CFO, Bill, is...

The Mistake of a Business Owner Regarding a Divorce

In Minnesota, all assets of the parties, including marital and non-marital assets are subject to division by the divorce court. Each party has to disclose all assets regardless if the asset is a marital asset or not. Marital assets are divided equitably in Minnesota, which generally means equally. Non-marital assets, meaning assets acquired prior to the marriage or via inheritance, bequest or gift are generally awarded to the person who claims the non-marital interest. However, any claim of a non-marital interest must be proven by the spouse making such a claim. Consider these types of assets: You own a bank account...

Common Myths About Trusts

Trusts are generally utilized as part of estate planning. There are numerous types of trusts. One of the most common types of trusts is a revocable trust, which is sometimes referred to as a living trust. if it has been properly funded, a revocable trust operates during your lifetime and after your death. You, as the grantor and settlor of the trust, own any assets that have funded into your trust, you have control over your assets and you can amend the trust at any time during your lifetime. Another common type of trust is an irrevocable trust. Irrevocable trusts...

Top Five Minnesota Employment Law Changes

The top five Minnesota employment law changes from the 2023 legislative session are: 1) recreational marijuana; 2) the revisions to the Minnesota Human Rights Act; 3) the banning of non-compete agreements; 4) a statewide paid sick and safe leave law; and 5) the expanded laws regarding pregnancy accommodations, nursing mothers and lactating employees. An honorable mention is the paid family and medical leave which is not effective until January 1, 2026. Here are some of the highlights: Recreational Marijuana: An employer will be prohibited from discrimination against employees for the off duty lawful use of marijuana. In addition, employers will no...

Employment Law Changes

There were numerous laws passed in the 2023 legislative session that impact businesses. Employers need to review all of their policies and procedures and update them, along with their employee handbooks to take into account all of the new laws. Effective July 1, 2023, there are expanded laws regarding pregnancy accommodations, nursing mothers and lactating employees. These laws apply to any employer with at least one employee. There were numerous changes to the Minnesota Human Rights Act, which is the state law prohibiting discrimination. One change revised the definition of sexual orientation, including separating out gender identity as a separate protected class....

Are you assets going to whom you want them to go to upon your death? If you do not have a will or a trust directing to whom you wish your assets to go to upon your death, the Minnesota legislature has decided that issue for you. Do you agree with the Minnesota legislature’s decision? But, have you thought that even though you do not have a will and/or trust everyone knows who gets what because you have told people so a will and/or a trust is not necessary? Your oral representations are meaningless and have no authority if you do...

Common Mistakes With Assumed Names

In our experience, there are four common mistakes that businesses make regarding assumed names. First, a business uses a name other than the one filed with the Minnesota Secretary of State (SOS).  For example, the name of your business that is registered with the SOS is Days are Long, Inc., but your business uses “Beautiful Day” as your business name.  Under this common fact pattern, you must register Beautiful Day as an assumed name, and publish the assumed name.  Second, a business files an assumed name with the SOS, but the holder of the name that is filed with the SOS...