Perspectives

Experienced credit professionals know that approving a customer and approving a transaction aren’t necessarily the same decision.

A contractor may have years of history with your dealership, a healthy credit line, and a solid payment record. But a new equipment transaction can introduce risks that aren’t visible on a traditional credit report.

The project may be in a different state. The customer may be working several tiers below the general contractor. The equipment may be going to a public project instead of private property. Or the transaction may carry lien or bond rights that are valuable today-but can disappear if a notice deadlines passes.

That’s why project intelligence belongs alongside customer credit analysis.

The goal isn’t simply to answer, “Will this customer pay?” it’s also to understand, “if they don’t, what leverage will we have?”.

Here are six questions to deliberate when extending credit for new jobs or equipment:

1. Where is the equipment actually going?

The project address does more than tell you where to deliver the equipment. It identifies the legal environment surrounding the transaction. Mechanic’s lien laws, public-project bond requirements, preliminary notices, filing deadlines, eligible claimants, waiver rules, and enforcement procedures can vary significantly by state. Even experienced multistate credit departments can create exposure when a familiar customer begins working in an unfamiliar jurisdiction.

The project location can also help the credit team verify information independently. With a correct and detailed project address, you may be able to confirm property ownership, identify recorded project documents, locate notices of commencement where applicable, determine the general contractor, and verify other information provided by the customer.

That makes the project address a starting point for due diligence, not simply another field in the credit file.

Why it Matters to the Credit Decision

Consider a customer with a $750,000 credit line that historically operates in three states. The customer takes on a major project in a fourth state and requests another $300,000 in availability. The customer’s financial profile may not have changed, but the dealer’s risk profile has.

Before approving the additional exposure, the credit team should understand whether the new jurisdiction provides meaningful lien or bond protection, whether notices are required, and whether those requirements can be realistically met.

What the Credit Team Should Capture

Don’t settle for a project nickname or city. Capture the following:

• Complete project name
• Physical project address
• County, where relevant
• State
• Project or contract number, if available
• Expected first furnishing/delivery date
• Expected duration of the dealer’s involvement

The last two points are especially important. Location tells you which rules may apply; furnishing dates often start or affect the clock.

2. Is This a Public or Private Project-and What Does that Mean for Our Recovery Strategy?

“Public or private?” shouldn’t simply be a checked box on a job-information form. It is an early determination of where the dealer may look for payment protection if the customer fails.

On qualifying private projects, mechanic’s lien rights may provide a potential claim connected to the improved real property. On public projects, government property generally cannot be encumbered in the same manner, making statutory payment payment bonds or other payment protections particularly important.

For federal construction projects, for example, the Miller Act establishes payment-bond protections for qualifying parties, while states have their own statutes governing state and local public projects. The requirements, and the parties protected, are not identical everywhere.

Why it Matters to the Credit Decision

Think about what this means from a recovery perspective. If you’re extending $400,000 on a private project, the credit team may be evaluating:

Customer credit + guaranty + potential lien rights + other security

On a public project, the analysis may instead be:

Customer credit + guaranty + payment bond + other security

That distinction can change the quality of the exposure.

Simply knowing that a project is “bonded” isn’t enough either. The credit team should understand which bond, issued by whom, for whose benefit, and whether the dealer’s position in the contracting chain potentially falls within the protection of the applicable statute or bond.

What the Credit Team Should Capture

For public work, obtain available information about:

• Public contracting entity
• Prime contractor
• Contract number
• Payment bond
• Surety
• Bond number
• Principal identified on the bond
• Contracting chain between the dealer and prime contractor

Ideally, this happens when the account is current.

Trying to locate a bond for the first time after a contractor has stopped communicating puts the credit department in a very different position.

3. Who Owns the Project-and Have We Verified It?

Ownership information can also reveal useful risk intelligence. Suppose the customer identifies “ABC Manufacturing” as the owner because that’s the name on the building. Further research shows that the property is actually owned by ABC Industrial Development LLC, while ABC Manufacturing is the tenant.

Now there are additional questions:

Was the work authorized by the owner? Who contracted for the improvement? What interest in the property is actually being improved? Are notices being directed to the correct parties? 

Those are much better questions to discover when the equipment is first supplied than when a lien deadline is approaching.

What the Credit Team Should Do

For meaningful exposure, verify rather than assume.

Depending on the jurisdiction and project, that may involve reviewing property records, project documents, notices of commencement, permits, contracts, or other reliable sources. The goal isn’t for the credit department to perform a legal title examination. It’s to recognize when the project information doesn’t line up-and escalate the issue while there is still time to investigate it.

4. Where Exactly Does Our Customer Sit in the Contracting Chain

This is one of the most important-and most frequently underestimated-pieces of construction credit intelligence. Knowing that your customer is “a contractor on the project” isn’t enough. You need to know who hired them.

Consider:

Owner -GC-Your Customer-Dealer

versus

Owner-GC-Subcontractor-Your Customer- Dealer

verus

Owner-GC-Subcontractor-Supplier-Your Customer-Dealer

versus

Owner-GC-Subcontractor-Supplier-Your Customer-Dealer

From a traditional customer-credit perspective, the exposure might look identical. From a lien or bond perspective, it may be very different.

Some statutes limit protection as parties become more remote from the owner or prime contractor. Supplier-to-supplier relationships can be particularly important to identify. On federal projects, for example, Miller Act protection does not extend indefinitely down the contracting chain.

Why It Matters Beyond Lien Rights

The contracting chain also tells the credit professional something about payment risk itself.

Money generally has to move through the parties above your customer before reaching your customer-and ultimately you. That means your customer’s payment performance can be affected by a dispute they aren’t even directly involved in.

A problem between the owner and GC can move downstream. So can a GC/subcontractor dispute, change-order disagreement, project delay, retainage issue, or insolvency elsewhere in the chain.

Your customer may still be financially healthy while the project’s payment chain is not.

What the Credit Team Should Capture

Identify:

Owner-Prime/GC-First Tier Subcontractor-Lower Tier Contractor-Customer-Dealer

Then ask one additional question:

Who is paying whom?

That simple question helps distinguish the contractual relationship from the physical jobsite relationship.

5. What exactly are we furnishing—and how much of the exposure may actually be protected?

This deserves more scrutiny for an equipment dealer than it might for a traditional building-material supplier.

A CAT dealer’s exposure on one project could include:

• Equipment purchases
• Rental equipment
• Replacement parts
• Repairs
• Field service
• Labor
• Attachments
• Consumables
• Transportation
• Freight
• Other charges

It can be tempting to look at a $600,000 project receivable and think:

“We have lien rights on this job.”

The more useful credit question is:

“How much of this $600,000 exposure potentially qualifies for lien or bond protection?”

Those aren’t necessarily the same number.

Whether equipment, rental charges, parts, services, or other costs qualify can depend on the applicable statute, how they were furnished, their connection to the improvement, and other project-specific facts. Construction-credit guidance likewise emphasizes that what is lienable—and how far down the contractual chain protection extends—varies by state.

Why it matters to the credit decision

This gives the credit manager a much better way to think about concentration.

Instead of:

Project exposure: $600,000

consider:

Total exposure: $600,000
Potentially protected exposure: $375,000
Potentially unsecured/uncertain exposure: $225,000

Those numbers are illustrative, but the exercise matters.

The credit team can now make a more informed decision about whether the remaining risk is acceptable—or whether it warrants a lower credit limit, additional guaranty, deposit, joint-check arrangement, UCC security interest, different payment terms, or another form of protection.

Lien rights should be viewed as one layer of the credit-risk structure, not as a substitute for underwriting.

6. What has to happen now to preserve options later?

This is where sophisticated construction credit departments distinguish themselves.

Traditional collections processes are usually delinquency driven:

Invoice-Due Date-Past Due-Collection Activity-Legal Escalation

Lien and bond rights don’t necessarily operate on that timeline. Rights-preservation requirements can be triggered by events such as first furnishing, last furnishing, project completion, recording of certain project documents, or other statutory events. That means the account could be completely current while an important legal deadline is running.

Preliminary notices are a good example. Depending on the jurisdiction and claimant’s position, a notice may be a prerequisite to later lien or bond rights, and notice requirements vary substantially among states.

Why it matters to the credit decision

The aging report answers:

“Who owes us money right now?”

A rights-management system should answer:

“Where do we have exposure today that requires action to preserve our options tomorrow?”

Those are fundamentally different reports.

A customer could have:

$0 past due

and simultaneously have:

$1.2 million in project exposure with a notice deadline approaching.

From a legal-risk perspective, the second number may deserve far more attention.

Build two clocks

For significant construction exposure, credit departments should consider tracking two parallel timelines:

The Credit Clock

Invoice-Due Date-Aging-Credit Hold-Collections-Legal

The Rights Clock

First furnishing-Preliminary Notice-Ongoing Project Monitoring-Last Furnishing-Lien/Bond Deadline-Enforcement Deadline

The two timelines eventually intersect-but they shouldn’t depend on one another.

If the rights clock doesn’t start until the credit clock shows trouble, the dealer may already have lost valuable leverage.

The Bigger Question: What Does the Project Do to the Risk?

The purpose of gathering project information isn’t to make the credit application longer. It’s to make the credit decision better.

For every meaningful construction exposure, the credit team should ultimately be able to answer four questions:

1. What is our total exposure?

2. Where does that exposure sit within the project’s payment chain?

3. What portion may be supported by lien, bond, UCC, guaranty, or other rights?

4. What must we do—and by what date—to preserve those protections?

That creates a much more complete view than customer creditworthiness alone.

Because when a construction account deteriorates, the most important question isn’t simply how much the customer owes.

It’s how much leverage you preserved before they stopped paying.

The best collection strategy starts before the first invoice is sent.

When an account becomes past due, it’s natural to focus on collections. But in the construction industry, many of the strongest collection tools-such as mechanic’s liens and payment bond claims-are either preserved or lost long before payment ever becomes an issue.

The decisions made during the credit approval process can have a significant impact on your ability to recover payment later. Asking a few key questions upfront can help protect your rights, reduce risk, and strengthen your position if a dispute arises.

Here are five questions every credit professional should ask before extending credit on a construction project.

Is this a Public or Private Project?

This is one of the most important questions you can ask because it determines which legal remedies may be available if payment problems arise.

On many private projects, qualified contractors, subcontractors, and suppliers may have mechanic’s lien rights, subject to state law and applicable notice requirements.

On public projects, mechanic’s liens generally are not available. Instead, payment may be secured through a statutory payment bond, which comes with its own notice requirements and deadlines.

Knowing the project type from the beginning allows your credit team to preserve the appropriate rights before critical deadlines pass.

Where is the Project Located?

Construction law is governed by state law, and no two states treat lien and bond rights exactly the same.

Deadlines, notice requirements, eligible claimants, and filing procedures can vary significantly depending on where the project is located.

If your company supplies projects in multiple states, relying on a “one-size-fits-all” process can create an unnecessary risk. Understanding the governing state’s requirements early allows your team to track the correct deadlines from day one.

Where Does Your Customer Fit in the Contracting Chain?

Understanding who hired your customer-and who owns the project-can be just as important as understanding who owes you money.

Questions to ask include:

• Is your customer the general contractor?
• Are they a subcontractor?
• Are they a lower-tier subcontractor?
• Are you supplying materials directly to another supplier?

Your position within the contracting chain may affect whether lien rights or bond rights are available and what notices may be required to preserve them. When extending credit, gathering this information up front is often much easier than trying to reconstruct it months later.

Are Lien or Bond Rights Available?

Not every construction project gives rise to the same legal remedies.

Depending on the project and your role, you may have access to:

• Mechanic’s lien rights
• Payment bond claims
• Other statutory remedies available under applicable law

Understanding which remedies may be available allows your organization to make informed credit decisions, and if necessary, involve legal counsel before important rights expire.

Have You Started Tracking Your Deadlines?

One of the most common reasons companies lose valuable collection rights isn’t because they had a weak claim-it’s because a deadline was missed. 

As soon as credit is approved, establish a system to track key dates, such ask:

• First furnishing of labor or materials
• Required preliminary notices
• Last furnishing date
• Lien or bond claim deadlines
• Applicable lawsuit deadlines

Waiting until an invoice reaches 60 or 90 days past due may leave little time to preserve your legal options. A well-maintained calendar can be just as valuable as a well-written contract. 

Proactive Credit Management Creates Stronger Collections

Credit professionals aren’t expected to know every nuance of construction law. However, understanding the right questions to ask before extending credit can help preserve valuable rights that may significantly improve collection outcomes if payment issues arise.

By identifying the project type, confirming the project location, understanding the contracting chain, evaluating available remedies, and tracking deadlines from the outset, your credit department is better positioned to protect both receivables and cash flow.

The strongest collection strategies begin long before an account becomes delinquent. 

How Wagner, Falconer & Judd Can Help?

Construction collections often require quick action and careful attention to statutory deadlines. Our attorneys work with credit departments, suppliers, distributors, and lenders to help preserve lien and bond rights, evaluate collection options, and develop practical strategies for recovering outstanding balances.

Whether you’re extending credit on a new project or addressing a past-due account, proactive legal guidance can help protect the remedies available to your business.

The best collection strategy starts before the first invoice is sent. 

If your business doesn’t currently offer a retirement savings plan, there’s another employment compliance requirement to add to your radar.

The Minnesota Secure Choice Retirement Program (“Secure Choice”) is now open for employer registration. Begining in 2026, many Minnesota employers need to either register for the program or certify that they’re exempt.

The good news? While employers have responsibilities under the program, they are not responsible for funding employee retirement accounts or managing investments. 

Here’s what employers should know.

What is Minnesota Secure Choice?

Secure Choice is a state-established automatic payroll deduction IRA program designed for employees who don’t have access to a workplace retirement plan. The program allows eligible employees to save for retirement through payroll deductions.

Employers are not required to make matching contributions, and there are no employer fees associated with the program. Employers may still experience some administrative costs related to payroll setup and ongoing administration.

Which Employers Are Covered?

Your business must participate if you:

• Have five or more employees, and
• Do not currently offer (or have not offered within the previous 12 months) a qualified retirement savings plan.

If you already offer a qualified retirement plan, you are generally exempt-but you must certify that exemption through the Minnesota Secure Choice portal.

Certain employees are excluded from the program, including:

• Government employees
• Employees who were under age 18 on December 31 of the previous calendar year
• Certain temporary or seasonal employees hired for 180 days or less

Registration Deadlines

Registration occurs in phases based on employer size. Employers should receive notice from Minnesota Secure Choice when it’s time to register.

Current deadlines include:

• Voluntary enrollment (any size covered employer) Deadline: March 30, 2026
• 100+ covered employees Deadline: June 30, 2026
• 50-99 covered employees Deadline: December 31, 2026
• 25-49 covered employees Deadline: June 30, 2027
• 10-24 covered employees Deadline: December 31, 2027
• 5-9 covered employees Deadline: June 30, 2028
• 4 or fewer employees Exempt

If your business has 100 or more covered employees, now is the time to confirm you’ve either registered or certified your exemption. Even if your deadline is later, it’s worth coordinating with your payroll provider now to avoid a last-minute scramble.

How Employee Contributions Work

Secure Choice is funded entirely through employee paryroll deductions.

Employer contributions are not permitted.

Unless an employee chooses a different option or opts out, payroll deductions:

• Begin at 5% of pay
• Increase automatically by 1% each year
• Cap at 8%

Employees may:

• Opt out
• Choose a different contribution percentage
• Stop contributions later, following the program procedures

Contributions generally go into a Roth IRA unless the employee elects a traditional IRA.

Employees are always fully vested in their accounts.

Employer Responsibilities

Although employers aren’t managing retirement investments, they are responsible for administering the program.

This includes:

• Registering or certifying an exemption
• Enrolling eligible employees
• Processing payroll deductions
• Maintaining employee and payroll information
• Keeping records up to date

What Happens if an Employer Doesn’t Comply?

Minnesota law includes penalties for employers who fail to meet their obligations.

After the applicable warning period, employers that fail to enroll covered employees or begin required payroll deductions may face penalties beginning at $100 per covered employee, with higher penalties possible in later years.

Employers should pay particular attention to withheld employee contributions.

If payroll deductions are taken from employee paychecks but are not remitted on time, employers may be required to:

• Submit the withheld contributions
• Pay applicable interest

A willful and intentional failure to remit withheld contributions after demand may also result in misdemeanor penalties.

Getting Ready

When your registration window opens, you’ll need to:

• Register using your company’s EIN and Secure Choice Access Code
• Connect your payroll provider or upload payroll schedules
• Add banking information
• Upload eligible employee information

After registration:

• Minnesota Secure Choice communicates directly with employees during their 30-day election period.
• Employers then begin payroll deductions for participating employees.
• Employers continue submitting payroll contributions and maintaining employee records.

Don’t Wait Until Your Deadline

Like many new employment laws, Minnesota Secure Choice is designed to become part of your normal HR and payroll processes. Businesses that prepare early generally experience a smoother rollout.

Whether you’re determining if you’re covered, coordinating with your payroll provider, or simply making sure your compliance processes are current, it’s easier to address these questions before your registration deadline arrives.

WFJ’s Employment Law team and Compliance Center help employers stay ahead of changing workplace requirements so compliance becomes part of doing business-not a last-minute emergency. 

For most credit departments, Days Sales Outstanding (DSO) is one of the first metrics leadership looks at when evaluating accounts receivable performance.

And for good reason.

DSO provides a useful snapshot of how quickly a company converts sales into cash. But focusing soley on DSO can sometimes mask a much larger issue lurking beneath the surface: the true cost of slow-paying customers.

Every overdue invoice carries a cost. While those costs may not always appear on a balance sheet, they impact cash flow, operational efficiency, profitablity, and ultimately a company’s ability to grow.

The most succesful credit and finance leaders understand that delinquency isn’t simply an accounts receivable problem-it’s a business problem.

The Cost of Carrying Delinquent Accounts

When a customer extends payment terms from 30 days to 60, 90, or even 120 days, many organizations view it as an inconvenience.

In reality, every additional day an invoice remains unpaid ties up working capital that could be used elsewhere.

That capital may have been intended to:

• Purchase inventory
• Fund expansion initiatives
• Invest in new equpiment
• Support payroll obligations
• Reduce borrowing needs
• Improve overall liquidity

The longer receivables remain outstanding, the longer your organization effectively finances your customer’s business operations.

Cash Flow Challenges Extend Beyond the Credit Department

Late payments don’t just affect accounts receivable metrics. They influence broader business decisions.

Organizations experiencing slower collections may find themselves:

• Drawing more heavily on lines of credit
• Delaying capital investments
• Reducing operational flexibility
• Increasing borrowing costs
• Facing greater cash flow uncertainty

For finance leaders, this creates a ripple effect throughout the organization.

A customer who pays 90 days later may appear manageable on paper. But when multiple customers follow the same pattern, the cumulative impact can strain even healthy businesses.

The challenge isn’t simply collecting money-it’s maintaining predictable cash flow.

The Administrative Cost Nobody Talks About

One of the most overlooked costs of delinquency is the amount of internal time spent managing overdue accounts.

Consider what happens when an account becomes seriously delinquent:

• Collection calls increase
• Follow-up emails multiply
• Payment promises must be tracked
• Documentation requests becomes more frequent
• Internal meetings consume additional resources
• Disputes require investigation and resolution

For many credit professionals, a small percentage of customers consumes a disproportionate amount of their time. And that time has value.

Every hour spent chasing an account that has little intention of paying is an hour that cannot be spent on:

• Credit analysis
• Risk management
• Customer relationship development
• Process improvements
• Strategic planning

Eventually, delinquent accounts begin creating operational costs that exceed the orginal value of the relationship.

When Slow Paying Customers Become Unprofitable Customers

Many businesses evaluate customer profitability based on sales volume and gross margin. But profitability calculations often fail to account for collection costs.

A customer generating significant revenue may appear valuable until you factor in:

• Repeated collection efforts
• Internal administrative expenses
• Increased borrowing costs
• Legal expenses
• Write-off risk
• Managemement time spent resolving disputes

At some point, a customer can become more expensive to service than they are worth.

The goal isn’t necesarily to stop doing business with challenging customers. Rather, it is to understand the true cost of maintaining those relationships and adjust your strategy accordingly.

The Cost of Waiting Too Long

One of the most common challenges we see is organizations delaying escalation in hope that an account will eventually resolve itself.

Sometimes it does. Often, it doesn’t.

The reality is that collection options tend to decrease as delinquency ages.

As time passes, businesses may face:

• Diminished leverage
• Lost documentation
• Expired lien rights
• Increased bankruptcy risk
• Reduced recovery opportunities
• Larger write-offs

Many companies view legal intervention as a last resort. In practice, strategic legal involvement often works best before an account reaches crisis status.

Legal Intervention is About More Than Litigation

There is a common misconception that involving an attorney automatically means filing a lawsuit. In reality, experienced commercial collections attorneys can often help businesses evaluate options, preserve rights, and create leverage before litigation becomes necessary.

Depending on the situation, legal involvement may include:

• Demand letters
• Contract analysis
• Review of guarantees and security interests
• Lien and bond claim evaluation
• Negotiation support
• Recovery strategy development

When viewed through that lens, the true cost of slow-paying customers becomes much easier to quantify. And once you understand that cost, you can make more informed decisions about when to continue internal collection efforts and when escalation makes business sense.

Simplify the Complex

Credit professionals play a critical role in protecting cash flow and managing business risk. But even the strongest internal collection processses have limits.

Working with experienced commercial collections counsel can help organizations identify risks earlier, preserve recovery options, and improve collection outcomes before delinquent accounts become write-offs. Because knowing the cost of delinquency helps determine when it’s time to escalate.

At Wagner, Falconer & Judd, we help businesses simplify the complex through strategic commercial collections, creditor rights, and recovery solutions designed to protect what you’ve earned.

For many employers, compliance is often associated with wage laws, leave requirements, or workplace investigations.

But one of the biggest employment law trends emerging in 2026 is far less obvious: employee notices.

Across the country, states are creating new requirements for employers to provide written disclosures, workplace notices, onboarding materials, pay information, accommodation rights information, and employee communications. While these requirements may seem administrative, they can create significant compliance exposure when overlooked.

For small and mid-sized employers, the challenge is becoming increasingly complex-especially when employees work remotely in multiple states.

A company headquartered in Minnesota may be subject to California notice requirements, Connecticut pay transparency rules, or Washington immigration-related notification obligations simply because it employees work in those states.

As organizations look toward the second half of 2026, now is an ideal time to review onboarding materials, employee handbooks, workplace postings, and communication procedures.

Why Notice Requirements Matter

Employment laws are increasingly shifting toward transparency.

Legislators and regulators want employees to have greater visibility into their rights, compensation, leave benefits, accommodations, and workplace protections. As a result, employers are being required to communicate more informtaion than ever before.

The risk is that many notice requirements are easy to miss.

Unlike a wage claim or discrimination complaint, employers often don’t realize they have a compliance gap until an agency investigation, employee complaint, audit, or lawsuit uncovers it.

In some cases, failing to provide a required notice can become a violation even when the underlying employment decision was lawful.

California Employers Face Expanded Notice Obligations

California continues to lead the way in employee disclosure requirements.

The state’s new Workplace Know Your Rights Act requires employers to provide employees with a stand-alone written notice regarding various workplace rights and protections. Employers must also provide opportunities for employees to designate emergency contacts and follow specific notification procedures if an employee is arrested or detaiend under certain circumstances.

For employers with remote California employees, this is another reminder that state-specific onboarding materials may be necessary.

Connecticut Brings Several New Requirements This Fall 

Connecticut employers have several significant deadlines approaching on October 1, 2026.

Among the changes:

• Expanded pay transparency requirements for job postings
• New accommodations rights notices for employees
• Overtime pay code guides for larger employers
• Expanded lactation accommodation requirements

While each requirements serves a different purpose, they share a common theme: employers must proactively communicate employee rights and compensation information.

Organizations with Connecticut-based employees should begin reviewing hiring practices, onboarding packets, and payroll communications well before the October deadline.

Washington’s Immigration Worker Protection Requirements

Begining October 1, 2026, Washington employers face new obligations related to federal I-9 audits.

If an employer receives notice of an I-9 audit, employees must be notified within five business days and provide specific information regarding the audit. Employers must also communicate audit outcomes and provide employees with opportunities to address deficiencies.

For employers with remote employees in Washington, these requirements may necessitate updates to compliance procedures and internal response protocols.

Don’t Forget Posters and Workplace Notices

Some requirements are as straightforward as displaying a workplace poster-but even these can create compliance concerns when overlooked.

Pennysylvania, for example, now requires employers with at least 50 full-time employees to display a workplace notice regarding veteran’s rights and available services.

While posting requirements may seem simple, employers operating in multiple states often struggle to keep up with changing notice obligations.

The Multi-State Challenge

The reality is that compliance has become increasingly location specific.

The question is no longer:

“Where is our office located?” 

Instead, employees must ask:

“Where are our employees located?”

Every remote hire has the potential to trigger new obligations related to:

• Pay transparency
• Leave administration
• Accommodation notices
• Workplace postings
• Wage disclosures
• Hiring practices
• Immigration compliance

For growing ogranizations, managing these requiremetns internally can quickly become overwhelming.

How Employers Can Prepare

As we move through the second half of 2026, employers should consider:

• Reviewing onboarding packets and offer letter templates
• Auditing workplace posters and required notices
• Evaluating remote employee locations
• Updating hiring and recruiting procedures
• Reviewing accommodation and leave administration processes
• Confirming payroll and compensation disclosures comply with state requirements

Taking a proactive approach now can help avoid costly compliance issues later.

How WFJ Helps Simplify the Complex

Most employers don’t have the time or resources to track every employment law change across multiple states.

That’s where having legal guidance becomes valuable.

The Compliance Center by Wagner, Falconer & Judd helps employers stay ahead of changing requirements by providing direct access to experienced employment attorneys who can answer questions, review policies, identify compliance gaps, and help ogranizations adapt as laws evolve.

Need Help Reviewing Your Policies and Notices?

If your workforce spans multiple states-or if you’re unsure whether recent legal changes affect your organization-WFJ’s employment law team can help identify potential risks and simplify compliance before those issues become liabililities.

When small busineses think about legal risk, music licensing rarely tops the list. But it should be on the radar.

From restaurants and bars to boutiques, fitness studios, salons, and event spaces, many businesses use music to create atmosphere, enhance customer experience, or support programming. What many don’t realize is that public music often requires proper licensing-and getting it wrong can lead to significant financial consequences.

This is one of those areas where proactive legal guidance can help businesses avoid costly compliance issues before they arise.

WFJ entertainment and business attorney Paige Kochanski breaks down what small business owners should know about music licensing compliance, common misconceptions, and where legal risk often hides.

“I’m Just Playing Music in My Business-Is That Really a Legal Issue?”

In many cases, yes. Federal copyright law requires businesses to obtain permission to publicly copyrighted music. That means even if you legally purchased a song or subscribe to a personal streaming service like Spotify or Apple Music, that does not automatically give your business the right to play that music publicly.

Those services are generally intended for private, personal listening-not commercial use.

The same issue can arise when live musicians are involved. Hiring a cover band or solo performer to play in your business does not necessarily eliminate your licensing obligations.

And depending on your business type-such as bar, restaurant, fitness studio, or entertainment venue-additional licensing considerations may apply.

What Happens If You Get it Wrong?

For many small business owners, music licensing is not something that was on the startup checklist. But overlooking it can become expensive. Statutory damages for willful copyright infringement under U.S. law can range from $750 to $150,000 per infringed work in addition to potential legal fees. That’s a significant risk for something many businesses may not realize requires legal attention in the first place.

Why One License Isn’t Enough

One of the most confusing parts of music licensing is that there is no single universal license that covers every song. That’s because music rights are often managed by Performing Rights Organizations (PROs), each of which represents different catalogs of artists and songwriters.

The major PROs include:

• ASCAP (American Society of Composers, Authors and Publishers)
• BMI (Broadcast Music, Inc.)
• SESAC
• Global Music Rights (GMR)

Because each organization controls different rights, businesses often need licensing coverage from multiple organizations to ensure compliance.

A common approach is obtaining blanket licenses throught the relevant PROs, which provides access to that organization’s catalog without requiring businesses to identify licensing rights for each individual song.

Simplifying the Complex for Small Businesses

Running a business already comes with enough complexity. Music licensing should not become an avoidable legal headache.

If your business uses music in any customer-facing setting, it’s worth making sure your practices align with applicable licensing requirements before a compliance issue becomes a costly dispute.

WFJ’s Entertainment Law team helps business and creatives navigate music law, contracts, copyright, publishing, licensing, and other entertainment-related legal matters with practical, accessible guidance.

Because legal compliance works best when it’s proactive-not reactive.

Paige Kochanski is an attorney in Wagner, Falconer & Judd’s entertainment law group. Her practice focuses on music, film, and creative content legal matters, including contracts, copyright, and licensing. She works with businesses and individuals to navigate entertainment law with clarity and confidence.

It’s never been easier to take legal matters into your own hands.

A quick search will lead you to DIY legal websites and services that promise fast results-generate a demand letter, file a claim, or resolve a dispute in minutes. And for many people, that convenience is appealing.

But here’s what often gets over looked: Legal issues aren’t just about paperwork, they are about strategy.

And that’s where going it alone can create more risk than most people realize.

Where DIY Legal Tools Fall Short

No Legal Advice=No Strategy

DIY platforms can help you fill out forms-but they can’t tell if you’re taking the right approach.

They don’t:

• Interpret nuanced laws
• Identify stronger legal claims
• Advise on risks, defenses, or counterclaims

That means you’re left to make decision that can directly impact your outcome. Filing is one thing. Filing the right claim, the right way, is another.

You’re Responsible for Getting it Right

When you use a DIY legal service, you’re responsible for accuracy- of every detail.

That includes:

• Choosing the correct jurisdiction
• Calculating the right amount
• Including all required legal elements

If something is off-even slightly-your case could be delayed, weakened, or dismissed entirely.

No Support When Things Escalate

Many legal issues start simple-but they don’t stay that way.

If the other party pushes back, ignores your claim, or brings in their own attorney, DIY tools can’t:

• Represent you
• Negotiate on your behalf
• Respond to legal arguments

At that point, you’re navigating a legal process alone-often against someone who understands the system.

Missed Deadlines Can Cost You Everything

Legal timing is critical.

There are:

• Filing deadlines
• Service requirements
• Statutes of limitations

Missing one thing doesn’t just slow things down-it can prevent you from moving forward at all.

The Risk Falls on You

DIY legal services are built for accessibility-but that often comes with limited accountability.

If a mistake leads to:

• A lost claim
• A missed opportunity
• A financial loss

You’re typically responsible for the outcome.

“No Lawyer Needed” Isn’t Always the Full Picture

It’s true that some legal processes are designed to allow self-representation.

But that doesn’t mean they are simple.

Success often depends on:

• How your argument is framed
• How your evidence is presented
• What you choose to say-or not say

These are the details that can shape the outcome of your case.

Templates Don’t Account for Your Situation

DIY tools rely on standardized templates. But legal issues aren’t standardized.

A demand letter or filing that works in one situation may not work in another-and may even weaken your position if it’s not tailored correctly.

Why Working With an Attorney Changes the Outcome

You Get Real Legal Guidane

Instead of guessing, you’re guided:

• Is this the right claim to pursue?
• Is this the best path forward?
• What outcome should you realistically expect?

That clarity alone can change your approach-and your results.

You Reduce Risk From the Start

Legal issues are often easier to prevent than fix.

Working with an attorney helps you:

• Avoid filing mistakes
• Meet critical deadlines
• Structure your case correctly from the begining

Your Position Carries More Weight

A demand letter or claim backed by a law firm signals something different.

It shows:

• You understand your rights
• You’re prepared to follow through
• You’re not navigating the situation alone

That added credibility can influence how the other side responds.

You Have Ongoing Support

Legal situations rarely follow a straight line.

With an attorney, you can:

• Ask follow-up questions
• Adjust your approach
• Respond as things evolve

You’re not limited to a one-time document-you have guidance throughout the process.

It Can Still Be Accessible

One of the biggest draws of DIY tools is the cost. But there are ways to access real legal support without the traditional barriers-like subscription-based services that provide ongoing access to attorneys. That means you don’t have to choose between affordability and accuracy.

The Bottom Line

DIY legal tools make it easier to take action. But they also place the responsibility and risk on you. At Wagner, Falconer & Judd, we believe legal support should be accessible, understandable, and proactive. Because the time to get legal guidance isn’t when something goes wrong-it’s before it does.