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...

The Mistake of a Business Owner Regarding Commission Based Compensation

In Minnesota, an employer must promptly pay a salesperson commission earned through the last day of work. Commissions earned through the last day of work “means commissions due to services or merchandise which have actually been delivered to or accepted by the customer by the final day of the salesperson’s employment.” A mistake that business owners make is not promptly paying commissioned salespersons after the employment has ended. Another mistake is not understanding that independent contractors are generally also covered under this law. Prompt payment depends on the circumstances of the commission salesperson’s end of working with your business. If the salesperson...

Exempt vs. Non-exempt Employees

Minnesota has the strictest wage theft laws in the nation. There are potential civil and criminal consequences to an employer for failure to comply with wage laws. Complying with wage laws includes paying wages owed to employees such as minimum wage and overtime. Generally speaking, employees fit into two primary categories: exempt and non-exempt. Neither the employer nor the employee get to chose the type of category. The categories have been chosen for you by laws, rules and regulations that have been enacted as well as case law. The first step is to determine whether your business is subject to the federal...

Understanding Beneficiary Designations

Beneficiary designations are important. However, its importance is often underestimated, and the consequences of underestimating their important can be severe. Consider the following hypotheticals: Hypothetical #1: Ben is single. He names his parents as his primary beneficiary on his 401(k), his bank accounts, his investment accounts and his life insurance policy. He does not have any other assets except for his furniture, furnishing, and personal belongings that are in his apartment. He then starts dating Sam and wants his estate to go to Sam upon his death. He executes a will that states that his estate goes to Sam, and then...

A Divorce Impacts Estate Planning

It is common for couples to have completed their estate planning while married. Unfortunately, many people forget to update their estate plan after obtaining a divorce. While the divorce automatically severs the ex-spouse from inheriting under a will or a trust (unless the trust specifically states otherwise), the divorce does not sever the other provisions as to the disposition of property. For example, in your will, you name your spouse to inherit, and if your spouse does not survive you, then your spouse’s parents inherit. Then you get a divorce. The divorce only changed the inheritance as to your ex-spouse, but...

Common Business Mistakes

As professionals, we work hard every day to ensure the success of our businesses.  Unfortunately, if we are not well prepared and protected, our business, our reputation, and even our personal assets can all be lost, due to a single mistake or oversight. As business owners ourselves, we understand the limits all of us face in regard to time and money, but as attorneys, we have seen the consequences, which can financially destroy a business and the owners personally. The most common legal mistakes we see business owners make are in the following ten areas: Failure to Incorporate (Corporation) or Organize...

Charities Must Follow Compliance Laws

Helping others through a nonprofit charity is often viewed as noble. But a charity’s good deeds does not provide it carte blanche. In fact, nonprofit charities are highly regulated, and failing to understand those regulations can be disastrous. There are two dozen different types of tax exempt exemptions under the Internal Revenue Code. This article uses the most common exemption – 501(c)(3) – as the example. First and foremost, the nonprofit charity is a business entity. In Minnesota, first the nonprofit files with the Minnesota Secretary of State as a business entity. Second, the nonprofit applies to the IRS for its...

Understanding Your Estate Planning Goals

Estate planning is providing for the care of your minor children and/or special needs beneficiaries while giving what you want to whom you want at the least cost possible while avoiding estate taxes and planning for incapacity. In determining the type of estate planning, you must first understand your goals. If your goal is to… avoid probate, then you must have a trust and/or file a transfer on death deed for your real property and complete your beneficiary designations. transfer your homestead without incurring the fees of a trust, then you must do a Transfer on Death Deed (TODD). avoid...