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New Workplace Protections

On January 1, 2022, there are new workplace protections in place in Minnesota for expectant and new parents. This article provides a brief, but not complete, summary of the significant changes. If your business has a minimum of 15 employees this law now applies to you (under the old law, the minimum number of employees was 21). Furthermore, this law applies immediately on day one of employment. The new law also prohibits requiring lactating employees to use accrued paid time off, vacation or sick time when they are expressing milk. In addition, based on an eight-hour shift, now the break time...

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Piercing the Corporate Veil

Hypothetical: You open up a flower shop. You file as a business entity with the State of Minnesota, but do not have any other corporate documents. Your business uses your personal account for the business. You and your business are then sued when a customer stumbles and falls when coming into your business to pick up a floral arrangement. Punishment: If you do not follow corporate formalities, and your business is sued, the court can pierce the corporate veil and seize your personal assets to pay a business debt. Factors that the court considers are: Insufficient capitalization; Failure to observe corporate formalities; Nonpayment of dividends; Insolvency of debtor...

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The Mistake of a Business Owner Regarding Oral Contracts

Most oral agreements are binding. However, oral agreements should be avoided. If there is an oral agreement, the first issue that is generally litigated is the terms of the agreement. Once the terms are determined, then what is litigated next is whether there was a breach of an agreement. If there was a breach, then what is litigated next are the damages. There are several types of oral agreements that are not enforceable. The following hypotheticals includes some examples of oral agreements that are not enforceable. Hypothetical: George owns George’s, LLC. His friend Sam approaches him because he wants to be...

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Mandatory Reporting of the Maltreatment of Minors

With little fanfare, in 2020, the Minnesota legislature repealed the entire chapter related to the mandatory reporting of the maltreatment of minors and codified it in Chapter 260E. As a result, now is a good time to refamiliarize yourself with the new law and how it relates to your position. If you are a mandated reporter – meaning you have no choice but to report as required under the statute – and you fail to report you may be subjected to criminal prosecution. Currently, mandated reporters are professionals or the professional’s delegate “who is engaged in the practice of the healing...

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The Minnesota Health Records Act

Most people are familiar with the Health Insurance Portability and Accountability Act (HIPAA). However, most people are not familiar with the Minnesota Health Records Act (“Act.”). If your business is subject to HIPAA, most likely your business is also subject to the Act. However, if your business is not subject to HIPAA that does not automatically mean that your business is not subject to the Act. The analysis of both laws has to be separately completed. It is important that you understand your obligations under both HIPAA and the Act if it applies to your business. Under the Act, you must...

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Plan Before a Crisis

It is easy for a person to be lulled into a false sense of security that they can delay planning for one’s inevitable death and, most likely, incapacity or incompetency. As a business owner, the stakes are often higher. Generally, there are employees and their families that are relying on the continuation of the business. Without pre-planning, when a crisis occurs it could be too late to ensure the least risk to your business and your financial welfare. For example, Cut Your Losses, LLC is owned by two partners who are married to each other. They have not prioritized having their...

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The Mistake of a Business Owner in Not Retaining a Business Lawyer

Hypothetical: Betty and her sister Amy are equal owners of Betty’s Things, Inc. They have been in business for 10 years, and their business is going well despite the fact that Amy’s husband does not like Betty. Amy’s husband does not like Betty because he believes that his wife was entitled to more money from the business than Amy has received. Amy unexpectedly dies in a car accident. Betty contacts an attorney because Amy’s husband called her demanding that the business is dissolved and that Amy’s estate receives two-thirds of the business assets. To add insult, Betty’s Things, Inc. is...

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Be Aware of the Impact of Local Ordinances on Remote Workers

The pandemic has resulted in several businesses allowing their workers to work remotely. In doing so, it is important for a business to review local ordinances to determine whether or not your business is in compliance. For example, sick and safe time laws that have been passed at a local level could require your business to provide sick and safe time to a remote worker in a particular city. Currently, Minnesota’s largest cities – St. Paul, Minneapolis and Duluth – all have passed sick and safe time ordinances. All three of the city’s ordinances are different. It is extremely important (and...

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Common Business Formation Issues

Business formation issues remain common as people often believe that formalizing a business is simply filing the proper forms with the Minnesota Secretary of State. However, by simply filing the proper forms with the Minnesota Secretary of State, the business has only achieved being in good standing with the Minnesota Secretary of State and that does not form the corporate veil that is essential to prevent your personal assets from being seized to pay for a business judgment. In addition, it may result in the business and/or the business owners having to pay more taxes or other financial consequences than...

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The Mistake of a Business Owner Regarding Failing to Plan for Incapacity, Incompetency and Death

It is not uncommon for a business owner to forget or avoid planning for incapacity, incompetency and death. While trying to juggle several balls in the air at once and having to wear multiple hats every day it is easy to avoid planning for incapacity, incompetency and death as a business owner. Unfortunately, by doing so, it is extremely likely that your business will fail if you become incapacitated, incompetent or dead. Hypothetical: Sally owns Sally’s Best Brownies, Inc. She is the sole owner of the business and has been for 25 years. She has five employees, including her daughter, Sabrina....

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