Category: News & Events
Business Owners: Think Twice Before Gifting Stock to Employees
September 24, 2021 | Carole Clark Isakson
I receive regular calls from small business owners that want to show appreciation to their hardworking employees by gifting shares in the company. Sometimes, the goal is to incentivize an employee to work harder and in other cases, the employer hopes to keep the employee long-term and feels the gift will help with this. I generally dissuade these owners from share transfers and suggest other ways to bonus employees based on profits. Why? Because an owner of shares, no matter how small, has rights in the company that can cause issues for the well-meaning employer. Minority shareholders in Minnesota have a variety of rights. For instance, minority shareholders in privately held corporations have the right to request and examine the share register, the records of all shareholders, and board proceedings over the past three years. This includes all articles, amendments, bylaws currently in effect, certain financial statements, reports made to shareholders within the last three years, names and business addresses of all directors and principal officers, voting trust agreements, shareholder control agreements, and other types of agreements. While providing these documents may not be difficult, many employers would rather not share this information. When an employee comes to their employer, and owns a share in the company, this information must be provided. In…
Read MoreManaging Data Privacy in the Post-Pandemic Era
September 16, 2021 | Barna, Guzy & Steffen, Ltd.
COVID-19 has changed the way we live, work, shop, and socialize on a global scale. In the early weeks of the pandemic, people transformed their homes into virtual offices, workspaces, and classrooms among concerns for the health and safety of everyone. As a result, this “new normal” started to infringe upon our personal privacy as new tools like Zoom, Microsoft Teams, and other videoconferencing platforms became standard operating procedure. However, the pandemic did not slow down technological advancement or the pace of regulation affecting data privacy and security. Read our blog as we discuss managing data privacy as we continue to manage this pandemic. What is, or will be, our new normal? Whatever it is, data privacy concerns will remain. Changes to the Regulatory Landscape In January 2020, the state of California implemented legislation geared towards greater protection of consumer data. The California Consumer Privacy Act (CCPA) ushered in changes to the way businesses collect, process, and distribute private information as consumer demand for greater privacy protections increased. The affect of the new legislation was widespread, prompting many companies like Microsoft and Uber to alter their business practices to comply with the new law. In fact, the CCPA has served as a blueprint for other states to draft and adopt their own laws;…
Read MoreMinnesota Supreme Court Rules on Workplace Handbook Policies
April 16, 2021 | Scott M. Lepak
Authored By Scott M. Lepak and Claire Schmitz The Minnesota Supreme Court recently announced two important holdings in Hall v. City of Plainview regarding workplace handbook policies. First, the Court determined that general disclaimers in employee handbooks (generally at the front of personnel handbooks or manuals) do not automatically apply to all provisions within the handbook, including compensation and severance policies. The second ruling was that the state law providing a penalty for failure to pay wages promptly did not create an automatic right to paid time off (PTO) on its own absent a binding contract present. Read on as we discuss the specifics of the Minnesota Supreme Court rulings on workplace handbook policies. Background Facts In 2017, the City of Plainview terminated an employee who had accrued unused PTO throughout 30 years of work. When the employee was terminated, the City refused to pay him the accrued PTO, citing the employee handbook. The City claimed he had not given “sufficient notice” per a policy in their handbook. This employment handbook also contained a disclaimer stating that the provisions within it “should not be construed as contract terms” and that it was “not intended to create an express or implied contract of employment between the City of Plainview and an employee.” The employee…
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