28 December

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Misclassification of a Worker

The misclassification of a worker as an independent contractor instead of as an employee has both civil and criminal consequences in Minnesota as it is considered a form of wage theft. As mandates increase for employers regarding laws that impact their bottom line, it is tempting to start misclassifying workers as independent contractors. Resist the temptation. Not only is it unlawful, but the consequences could potentially destroy your entire business (and your personal life). There are several myths regarding the classification of workers as independent contractors rather than employees. The following statements are myths: An employer determines if a worker is...

20 December

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The Sunset of the Federal Estate and Gift Tax Exemption

Posted by Evon Spangler

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Note: Spangler and de Stefano, PLLP does not provide tax advice. This article is for informational purposes only. Please consult with your tax advisor or tax attorney regarding advice for your specific circumstances. Minnesota currently does not have a gift tax. However, estate tax in Minnesota is assessed on those estates that currently have more than $3,000,000 in assets. Please note that an estate means one individual. However, the federal government has both a gift tax and an estate tax. But, the gift and estate tax amounts at the federal level are combined. As a result, at the federal level, the...

30 November

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January 1, 2024 ESST Deadline

Posted by Evon Spangler

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As of January 1, 2024, Minnesota employers must provide to its employees sick and safe time (ESST). However, prior to January 1, 2024, employers must provide notice to employees about ESST. In addition, the employer must provide notice to new employees at the start of employment. The notice must be provided in English unless the employee’s primary language is not English. In that case, the notice must be provided in the employee’s primary language that is not English. The Minnesota Department of Labor and Industry has sample notice forms, including in several most common language spoken in Minnesota in addition to...

02 November

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The Mistake of a Business Owner Regarding Wage Theft

Posted by Evon Spangler

in Uncategorized

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...

26 October

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The New I-9s

Posted by Evon Spangler

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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...

28 September

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Board Governed LLCs

Posted by Evon Spangler

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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...

14 September

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Checks and Balances are Necessary

Posted by Evon Spangler

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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...

17 August

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The Mistake of a Business Owner Regarding a Divorce

Posted by Evon Spangler

in Uncategorized

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...

02 August

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Common Myths About Trusts

Posted by Evon Spangler

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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...

27 July

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Top Five Minnesota Employment Law Changes

Posted by Evon Spangler

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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...