Perspectives

Minnesota employers, change is coming-and it’s time to prepare. Begining in 2026, the state’s new Paid Family and Medical Leave (PFML) program will provide workers with paid time off for life events like bonding with a new child, recovering from illness, or caring for a loved one. If you’re feeling overwhelmed by the details, you’re not alone. At Wagner, Falconer & Judd, we believe in simplifying the complex, so here’s what you need to know.

The Basics: What is PFML?

Minnesota’s PFML law, passed in 2023, is a state-run insurance program that provides up to 20 weeks of paid leave per year for qualifying family or medical reasons.

• Contributions Start: January 1, 2026
• Benefits Available to Employees: January 1, 2026
• Administered by: The Minnesota Department of Employment and Economic Development (DEED)

Employer Responsibilities: What You Need to Do

Here’s your action list:

Submit Wage Reports: Starting October 31, 2024, you must file quarterly wage detail reports.

Start Payroll Deductions: Contributions being January 1, 2026. Employers and employees share the cost-each typically pays 0.44% of wages (for a total of 0.88%).

Post Notices: You’ll be required to post workplace notices and distribute individual notifications by December 1, 2025.

Maintain Coverage: While an employee is out on PFML, you must maintain their health insurance.

WFJ Tip: Employers can opt out of the state program if they offer a private plan that meets state standards.

Eligibility: Who Qualifies?

Covered Employers

If you employ at least one person in Minnesota, even remotely-you’re subject to the PFML law.

Covered Employees

To qualify for benefits under the Minnesota PFML program, employees must meet all of the following:

• Earn at least 5.3% of the state’s average annual wage in the year prior to the leave (about $3,781.23 in 2024)
• Perform at least 50% of their work in Minnesota, or if no single state meets the 50% threshold, the employee must live in Minnesota and perform some work here
• Be a current employee, or in some cases, a former employee separated from employment for less than 26 weeks
• Provide appropariate notice and documentaiton for the leave requested

This includes full-time, part-time, seasonal, and temporary employees.

Remote Employees Count Too: Even if your company is based out of state, if you have just one employee working remotely in Minnesota, that employee is eligible and your business must comply .

Independent contractors are not eligible under the employer’s PFML contributions-but they may opt into the program on their own.

What Leave is Covered?

There are two main types of leave under PFML:

• Medical Leave (up to 12 weeks): For the employee’s own serious health condition
• Family Leave (up to 12 weeks): For bonding with a new child, caring for a family member with a serious condition, addressing a military exigency, or taking safe leave.

Combined Cap: An employee may take up to 20 total weeks of paid leave per benefit year.

Intermittent Leave: Leave can be taken in small blocks (e.g., a few hours or days at a time), with a cap of 480 hours per year for intermittent use.

Reporting and Payroll Deductions: What Goes Where?

Here’s what you’ll need to track and report:

• Quarterly wage detail reports to the state
• Employee payroll deductions (starting in 2026)
• Coordination with PTO/STD: If an employee is also receiving short-term disability (STD) or using PTO, you must report it. Benefits are adjusted to avoid duplication.

Payroll systems must be updated to reflect PFML deductions and payments on employee earning statements.

How Does PFML Work with Other Benefits?

One of the biggest questions we hear from employers is: How odes this fit with the FMLA or other leave policies?

• PFML and FMLA run concurrently when applicable. If an employee qualifies for both, they can’t stack one on top of the other.
• Job protection under PFML kicks in once an employee has worked 90 consecutive days. 
• Employees can use PFML intermittently, but you may limit them to 480 hours of intermittent leave per year.

If you already offer parental leave or short-term disability, PFML doesn’t cancel them out-ut it will likely require coordination to avoid overpayment or compliance gaps.

Private Plans: Is It Worth Opting Out?

Some employers choose to offer a private plan instead of participating in the state-run program. To qualify, your plan must:

• Offer benefits at least equal to those provided by the state
• Be approved by the Minnesota Department of Employment and Economic Development
• Be monitored to ensure compliance

Benefits of a private plan may include faster claims processing, better integration with existing policies, and more administrative control. \

Penalties and Enforcement

Don’t ignore this law. Employees can sue to enforce rights under PFML, and employers can face penalties between $100 and $10,000 per violation. Retaliation against employees who request or take this leave is strictly prohibited.

Your Next Steps

Here’s how to get ready now:

✅ Audit Your Workforce: Identify who may be eligible based on wage and work location
✅ Evaluate Current Leave Policies: Understand where PFML overlaps or conflicts
✅ Update Payroll Systems: Prepare for future contributions and reporting
✅ Plan Your Communications: Clear employee education is critical
✅ Consider Private Plan Options: If you want more control, explore alternatives

Need Help Making Sense of PFML?

At Wagner, Falconer & Judd, we’re here to help you prepare for changing laws with confidence-not confusion. From policy reivew to training your HR team, our attorneys can help you navigate the new law while protecting your business.

Contact us today to ensure you’re ready for Minnesota PFML in 2026-and beyond. 

In honor of Small Business Month, WFJ is highlighting the legal guidance that helps small businesses thrive by sitting down with employment and labor law attorney, Bridget Finn. Known for her collaborative, solutions-oriented style, Bridget works closely with small business owners to help them navigate the complex world of employment law with clarity and confidence. In this interview, she shares her perspective on the value of early legal planning, the most common compliance missteps she sees, and practical steps business owners can take—even without an in-house HR team—to build strong, compliant workplaces.

What’s your favorite part about working with small business clients?

What I value most about working with small business clients is having the opportunity to work with leaders on a variety of issues from start to finish and offering solutions along the way.

If you could give one piece of legal advice to someone starting a new business, what would it be?

I would advise new business owners to recognize the importance of establishing policies early on, as they provide a solid foundation for how operations should be managed. Consulting with professional legal experts at the outset of a business venture will yield significant benefits in the long term as you are getting ahead of any possible legal and employment issues that might come up down the line.

What are some of the most common mistakes you see small businesses make when it comes to employment law?

A common mistake many small businesses make is failing to maintain proper records or documentation of policies, procedures, and incidents. It’s crucial to document these details so that you have a reliable reference to look to when you are busy managing the day-to-day business operations.

What’s one thing business owners often overlook in their employee handbooks or workplace policies?

One key aspect employers often overlook in their employee handbooks or policies is ensuring they are regularly updated to reflect changes in local, state and federal laws, as legal requirements are constantly evolving. The handbook should be viewed as an evolving document that should be adapted as time goes on.

How can small businesses stay compliant with employment laws without having a full in-house HR team?

Small businesses should take full advantage of the resources offered by the Compliance Center, including legal advice, policy and handbook drafting, as well as many other resources that provide summaries and updates on legal developments.

What’s one of your favorite small businesses?

One of my favorite small businesses is FRGMNT Coffee.

In celebration of Small Business Month, WFJ is spotlighting the legal insights that matter most to growing companies by sitting down with one of our trusted employment law attorneys, Rebecca Corcoran. With a deep understanding of the challenges small businesses face, Rebecca brings a practical, relationship-driven approach to legal guidance. From common compliance pitfalls to proactive policy planning, this interview offers timely advice for small business owners looking to protect their teams, their operations, and their futures.

What is your favorite part about working with small business clients?

My favorite part is the direct, collaborative relationships I build with small business owners. I appreciate their passion and agility, and I enjoy being their legal sounding board-whether it’s helping them interpret evolving employment laws or brainstorming practical policy updates. There’s a real impact in knowing my guidance helps foster workplaces that are no only compliant, but also fair and sustainable.

If you could give one piece of legal advice to someone starting a new business, what would it be?

Start strong by setting up foundational policies-especially around wage and hour practices, leave policies, and anti-discrimination protections. Even if you only have a few employees, clear and legally sound practices prevent problems down the line. Don’t wait until there’s an issue to call an attorney-proactive compliance is always more cost-effective than crisis management.

What are some of the most common mistakes you see small businesses make when it comes to employment law?

A common and growing issues is how businesses handle state mandated paid sick leave. Many employers try to roll it into an existing PTO policy without realizing that these laws often include strict accrual, usage, and carryover rules that differ from standard PTO. If policies aren’t updated to reflect the specific legal requirements-like tracking hours worked for accrual purposes or allowing sick time to be used for safe time or caregiving-it can lead to unintentional violations and employee complaints. It’s not enough to be gnerous with time off; compliance requires structure and documentation.

What’s one thing business owners often overlook in their employee handbooks or workplace policies?

They often fail to update policies as requirements and legal definitions evolve. Many handbooks rely on outdated boilerplate language. For example, it’s common to see protected class definitions that overlook newly recognized statuses like gender identity, genetic information, or marital status in certain jurisdictions. This omission not only undermines inclusivity but also weakens the company’s position in the event of a complaint or legal challenge. A well-drafted handbook is more than a formality-it’s a reflection of the company’s values and frontline defense against liability.

How can small businesses stay compliant with employment laws without having a full in-house HR team?

Work with an outside advisor who understands both legal compliance and business operations. I provide clients with scalable tools like policy templates, customized handbooks, and scheduled check-ins so they’re not blindsided by new laws. I also help them weigh what’s legally required versus what’s good for morale-those soft issues matter just as much when you’re building culture and retaining talent.

What’s one of your favorite small businesses?

That’s a tough one-there are so many inspiring businesses. But I really admire locally owned shops that double as community hubs. I have a special appreciation for client-focused providers like wellness clinics or local outdoor gear shops. Their missions often center around community and lifestyle, and it’s rewarding to help them grow while staying true to their values.

Running a small business means wearing a lot of hats—but one area that can’t be overlooked is employment law. Even unintentional missteps can lead to costly consequences. Here are a few common pitfalls—and how to avoid them:

It might seem easier to 1099 someone instead of putting them on payroll, but the IRS and Department of Labor are cracking down on misclassification. If you control when, where, and how someone works, they’re likely an employee.

✅ Tip: Review job roles carefully and use government classification tools or consult an attorney.

Even small teams need structure. Without clear policies, you’re more vulnerable to inconsistent practices—and potential legal claims.

✅ Tip: Create a simple handbook outlining expectations, time off policies, and anti-harassment rules.

Yes, most employment is at-will, but that doesn’t protect you from claims of discrimination, retaliation, or wrongful termination.

✅ Tip: Always document performance issues and follow a consistent disciplinary process.

Overtime laws still apply—even if your employee “doesn’t mind” working late. Many businesses get tripped up here.

✅ Tip: Know your state and federal wage laws and track hours accurately.

Yes, even your breakroom needs legal attention! Federal and state laws require certain postings for employees to see.

✅ Tip: Order a current labor law poster set annually or use a service that keeps it updated.

Final Thought:
You don’t have to become an employment law expert—but having the right legal partner can make all the difference. If you’re unsure about your obligations, it’s better (and often cheaper) to ask before a problem arises.

✅ Need help reviewing your policies or contracts? Reach out to our team. We’re here to help your business grow—without legal headaches.

As marijuana legalization spreads across the country, employers face increasing confusion about how to handle marijuana in the workplace. With a patchwork of state laws, federal regulations that haven’t budged, and complicated questions around testing and impairment, it’s more important than ever to ensure your policies are up to date-and legally compliant. 

Whether you’re navigating medical marijuana requests or figuring out how to handle a positive drug test, here are 20 essential things to know:

1. Marijuna is still illegal at the federal level.

Despite its legalization in many states, marijuna remains a Schedule 1 controlled substance under federal law. That means employers-especially those who follow federal rules-must tread carefully.

2. Employers can enforce drug-free workplace policies.

You still have the right to maintain a zero-tolerance policy-even in states where marijuna is legal-if it aligns with your workplace needs and safety requirements.

3. DOT-regulated employees are prohibited from using marijuana.

The Department of Transportation (DOT) prohibits marijuna use for safety-sensitive roles, regardless of state law or medical authorization.

4. DOT drug tests include THC screening.

A positive marijuana test is considered a federal violation for DOT-regulated employees and can disqualify them from performing safety-sensitive functions.

5. State laws are all over the map.

Some states protect off-duty marijuana use, others don’t. Know the rules in every state you operate in to avoid missteps.

6. Medical marijuana users may be protected by state law.

States like Arizona and Illinois have laws protecting registered medical marijuana users from adverse employment actions-as long as they’re not impaired at work. 

7. Impairment matters more than positive tests in some states.

In certain states, a positive drug test alone isn’t enough for discipline or termination-especially if the employee is a registered medical user. Actual workplace impairment must be demonstrated.

8. On the job impairment is never protected.

Even in the most cannabis-friendly states, being high at work is still grounds for discipline or termination. 

9. Pre-employment testing policies are evolving.

Some states, like Nevada and New York, restrict pre-employment marijuana testing for certain positions. Consider revising your testing policies accordingly.

10. There’s no reliable way to test for real-time impairment.

THC can remain in the body for days or weeks after use. A positive test doesn’t always mean someone is impaired-which compliments enforcement. 

11. In many states, you can still fire someone for a positive test.

Unless state law says otherwise, employers are often within their rights to terminate for marijuana use-but consistency and documentation are critical.

12. Consistent policy enforcement is crucial.

To avoid legal trouble, apply your drug policies fairly and equally across your workforce. Inconsistent discipline can open the door to discrimination claims.

13. Safety-sensitive positions deserve special attention.

It’s reasonable (and often necessary) to apply stricter standards for safety-critical roles where marijuana impairment could be dangerous.

14. Disability accommodations may be triggered.

Some employees using medical marijuana may qualify for accommodations under state disability laws-but marijuana use itself is not protected under the federal ADA.

15. Post-incident testing must be justified.

OSHA discourages automatic post-incident testing unless there’s a reasonable basis. Make sure you’re testing in response to real concerns.

16. Reasonable suspicion testing requires training.

Managers and supervisors should be trained to recognize signs of impairment and document those observations carefully. 

17. Random drug testing must follow clear procedures.

Random testing should be truly random, non-discriminatory, and compliant with any applicable state laws.

18. Off-duty recreational use is protected in some states.

States like California, Minnesota and New Jersey now prohibit adverse employment actions for lawful, off-duty marijuana use in many cases-unless job performance is affected.

19. Clear, written policies are non-negotiable.

A well-crafted policy should spell out expectations, testing procedures, and consequences-and it must include marijuana. 

20. Consult with legal counsel before you terminate.

Especially in states with employment protections, always check with your legal team before disciplining or terminating an employee for marijuana use.

As marijuan laws continue to evolve, employers need to stay proactive. A “one-size-fits-all” drug policy no longer works. The best approach? Stay informed, tailor your policies by jurisdiction and job type, and work with trusted legal counsel to reduce risk while keeping your workplace safe and compliant. 

The Employment and Labor attorneys at Wagner, Falconer and Judd are here to support you through it all. Learn more about our subscription services for businesses-here! 

As you are aware, the Corporate Transparency Act (CTA) has been the subject of ongoing legal challenges and regulatory developments. Recent announcements from the Financial Crimes Enforcement Network (FinCEN) and the Treasury Department have further impacted the enforcement and reporting obligations under the CTA. Given these updates, we want to provide clarity on what this means.

Key Developments

• On February 27, 2025, FinCEN announced it will not be enforcing the beneficial ownership information (BOI) reporting obligations under the CTA until a forthcoming interim final rule takes effect.
• On March 2, 2025, the Treasury Department further confirmed that FinCEN will not impose penalties or fines for failing to file BOI reports, both under the existing deadlines and once the new rule is in place.
• The anticipated rule changes will likely narrow the CTA’s scope, requiring only foreign reporting companies to submit BOI reports, thereby exempting most U.S. businesses.
• These announcements follow a court decision in Smith, et al. v. U.S. Department of the Treasury, which initially reinstated CTA reporting obligations but was subsequently addressed by FinCEN’s decision to delay enforcement.
• FinCEN has committed to issuing an interim BOI Reporting Rule by March 21, 2025, and will open a public comment period for potential revisions.

What This Means for Compliance

For now, compliance with the CTA’s BOI reporting requirements is voluntary, and businesses can decide whether to submit their reports by the current deadline or wait for further regulatory clarity. However, businesses should still consider:

• Preparing the necessary BOI information in case reporting becomes mandatory under the final rule.
• Monitoring further regulatory updates, as the scope of required compliance could shift again.

Next Steps

While waiting for further guidance, businesses should take this opportunity to ensure their internal records and policies are current:

• Review corporate records – Confirm that corporate formation documents, ownership records, and governance materials are up to date.
• Assess contracts and agreements – Ensure business agreements are aligned with the most recent regulatory requirements.
• Update compliance policies – Verify internal compliance procedures remain effective and adaptable to potential changes.
• Organize beneficial ownership records – Maintain accurate ownership details to streamline future compliance efforts.

WFJ will continue monitoring developments and will provide updates as more details emerge. If you or your clients have any questions about CTA compliance, or if you would like assistance in preparing for potential obligations, please reach out.

Wagner, Falconer & Judd remains committed to ensuring that you and your clients are informed and prepared to navigate these evolving regulatory requirements.

Just when you thought you could put the Corporate Transparency Act (CTA) on the back burner, it’s back—and it’s enforceable once again. A federal court in Texas recently lifted the nationwide preliminary injunction that had put the CTA on hold, meaning businesses must now prepare to meet their reporting obligations.

New Reporting Deadline: March 21, 2025 The Financial Crimes Enforcement Network (FinCEN), the federal agency responsible for enforcing the CTA, has announced a new deadline for companies to file their beneficial ownership information (BOI) reports:

• Most businesses that existed before January 1, 2024, or had an original reporting deadline on or before March 21, 2025, must now file their BOI report by March 21, 2025.
• Newer businesses—those created on or after January 1, 2024—must still file their BOI report by their original deadline.

FinCEN has hinted at the possibility of extending this deadline further, but for now, businesses should operate under the assumption that March 21, 2025, is the date to meet.

Who Needs to File? The CTA requires most businesses to file a BOI report unless they qualify for an exemption—of which there are 23. In general, corporations, LLCs, and other entities formed by filing paperwork with a state agency are subject to this requirement. It’s estimated that more than 30 million businesses will need to comply.

If your company existed before January 1, 2024, your BOI report must disclose key company details, including:

• Names of all owners
• A photocopy of each owner’s driver’s license or passport

Failure to comply comes with steep penalties—$500 per day for ongoing violations, plus potential criminal charges, including up to two years in prison and fines of up to $10,000.

What’s Next for Your Business? While there’s still some uncertainty surrounding the CTA and its future litigation, businesses should prepare to comply now to avoid severe penalties. Unless an exemption applies, companies should begin gathering the necessary information to file their BOI report by March 21, 2025.

WFJ will continue to monitor legal developments and any potential deadline extensions from FinCEN. In the meantime, if you need guidance on whether your business is subject to CTA reporting requirements or how to prepare, our legal team is here to help.

Need assistance? Contact WFJ today to ensure your business stays compliant and protected.