Employment Law

Employers Beware: Minnesota’s New Wage Theft Law

Minnesota passed a new wage theft law that imposes requirements on employers to provide offer letters. The new law requires employers to give a detailed notice to new employees when they start employment, and must include the following: 1. Employee’s Employment status a. Must indicate whether employee is full or part time. b. Must indicate exempt status under the Fair Labor Standards Act. c. Must list the basis for any exemptions (e.g. administrative, executive, computer-related, other). 2. Pay period information, including how frequently the employee will be paid. 3. Date of first paycheck. 4. How pay is calculated (salary, hourly, commission etc.). 5. List of any allowances that may be paid (e.g. housing, meals, etc.). 6. Description of any paid time off, including vacation..

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What Drivers and Employers Need to Know About the New MN Hands Free Law

Before we get started, the employment law attorneys at BGS would like to thank our clients (old and new) for the massive response and positive feedback on the MN Wage Theft Law blog. We have not been able to verify rumors that the legislature decided that employers didn’t have enough to do going into the last legislative session and did their best to remedy that concern. Come to think of it, we would like to thank the legislature for making sure we never run short of business.The next big thing for drivers and Minnesota employers that came about in the last legislative session was the hands free law. The hands free law comes into effect next month (August 1) and will affect drivers and..

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The 2019 Wage Theft Law – This Law Should Really Be Called the Employer Paperwork Creation And Administrator Blood Pressure Elevation Plus Wage Theft Act

Back in the good old days wage theft was best described as taking employee payroll and putting it on horse number 5 in the 7th race at Canterbury Park. Starting next month (July 1, 2019), wage theft has gotten a new expansive meaning. The 2019 Wage Theft Law is a greatly expanded approach to employment record keeping. Employers are required to provide lots of information to new employees, create lengthy payroll earning statements and maintain (and make available) additional employer records. The “wage theft” part of the law relates to the potential criminal penalties for an employer’s failure to comply. These criminal laws become effective in August 2019. The new provisions fall into some basic categories: Additional information Employers are required to provide employees..

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IRS Expands Self-Correction of Plan Qualification Errors

In 2018, the IRS modified its program for correction of plan qualification failures to significantly increase the fees for getting approval of corrections under the Voluntary Compliance Program (“VCP”). Since that occurred, the IRS has issued expanded permissible self-correction methods under Revenue Procedure 2019-19. This new Procedure provides many new ways in which a plan sponsor may act independently to fix errors to retain the plan’s tax qualification, without IRS filings, user fees, or other involvement. The new procedure permits plans to self-correct failures in two categories that previously required VCP filings: problems with participant loans and plan amendments. 1. In regards to loan failures, the new procedure permits self-correction of loan failures if the failure relates to • A default on loan payments (if..

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Significant Changes to Retirement Plans Proposed

As of April 2, 2019, there are two bills rapidly moving through Congress with bipartisan support. The Setting Every Community Up for Retirement Enhancement Act of 2019 (“SECURE”) passed the House and the Senate has proposed the Retirement Enhancement Security Act of 2019 (“RESA”). The bills are very similar and because there is bipartisan support it is likely that something will be passed soon. Some of the proposed changes are as follows: 1. Encourage employees to participate in automatic contributions in 401(k) plans and require employers to provide estimates of how much an employee’s account would provide employees if it were invested in an annuity. 2. Make it easier for small employers to join other employers in multiple-employer plans. 3. Easing nondiscrimination rules for frozen..

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