Perspectives

Estate planning is one of those tasks that most people know they should do-but often put off. Whether it’s discomfort around discussing mortality, uncertainty about where to start, or the belief that “I don’t have enough to worry about,” many individuals delay putting proper legal documents in place. Unfortunately, that delay can come at a high cost-for you and your loved ones.

In this post, we break down 10 of the most common objections people raise when thinking about estate planning, and offer practical, legal guidance to help you move past them. From creating a simple will to establishing a power of attorney and healthcare directive, the goal is the same: protect your voice, your assets, and the people you care about.

Let’s walk through the top concerns and why now is always the right time to get your documents in order.

“I don’t have enough assets to need an estate plan.”

Legal perspective: Estate planning isn’t just for the wealthy-it’s for everyone. A Last Will and Testament ensures that what you do have goes to the right people, and Healthcare Directives and Powers of Attorney protect you and your loved ones if you’re ever unable to make decisions yourself. Estate planning is ultimately about control and protection, not wealth.

“I don’t know where to start-it feels overwhelming.”

Legal perspective: Estate planning can feel complex, but with the right legal support, it becomes manageable. Start with the foundational documents:

• Healthcare Directive
• Power of Attorney
• Last Will and Testament

An experienced attorney can guide you step by step, making the process easier and ensuring your documents reflect your wishes.

“It’s uncomfortable to think about death or incapacity.”

Legal perspective: Avoiding the conversation doesn’t prevent life from happening-it just increases the burden on your loved ones if something goes wrong. Estate planning gives you peace of mind and is one of the most compassionate things you can do for your family, saving them from uncertainty and costly legal hurdles.

“I’m young and healthy-I can do this later.”

Legal perspective: Accidents and unexpected medical events can happen at any age. Having a Healthcare Directive and Power of Attorney ensures that someone you trust can speak for you if you can’t. Putting a plan in place now means you stay in control, no matter what life brings.

“It’s too expensive to hire a lawyer.”

Legal perspective: Estate planning is often much more affordable than people think, especially compared to the potential cost of probate court or family disputes without proper documents. Investing in these documents now can save your family thousands of dollars-and emotional stress-later.

“I’m not sure who to name as my decision-makers.”

Legal perspective: You don’t need to have the perfect answer right away. Attorneys can help you think through your options and even set up contingencies if your first choice isn’t available. The most important step is to get your initial plan in place-you can always update it as life changes.

“My family knows what I want-I don’t need formal documents.”

Legal perspective: Verbal instructions or assumptions aren’t legally binding. Without written documents, your family may face court delays, disputes, and unwanted outcomes. A Last Will, Healthcare Directive, and Power of Attorney make your wishes clear and enforceable.

“I’ve done my will, so I’m all set.”

Legal perspective: A will is just one piece. You also need a Power of Attorney for financial decisions and a Healthcare Directive for medical choices if you become incapacitated. These documents work together to provide full protection-estate planning isn’t complete without them.

“I don’t want to burden anyone with responsibilities.”

Legal Perspective: Choosing trusted people to act on your behalf is not a burden-it’s a gift of clarity. Without clear direction, your loved ones may face far greater burdens, including court-appointed strangers making decisions for you.

“I can just use online templates to save time and money.”

Legal perspective: DIY estate planning may seem simple, but small errors can make your documents invaid or unenforceable. Laws vary by state, and what seems like a quick solution can lead to expensive legal battles or unintended outcomes. Working with an attorney ensures your documents are legally sound and tailored to your situation.

The pace of employment law updates across the U.S. is accelerating-and for employers, the risk of falling out of compliance has never been higher. As of mid-2025, sweeping federal changes and hundreds of new or amended state laws are reshaping workplace obligations. From salary thresholds to paid leave expansions and non-compete bans, there’s a lot to track.

Here’s a look at several major updates employers should act on now:

The “One Big Beautiful Bill”: Tax Breaks for Hourly Workers

Starting retroactively in 2025, qualifying tipped and hourly workers can deduct certain earnings:

• Tip deductions: Up to $25,000 annually in “qualified tips” (voluntary, non-negotiable, and paid by the customer).
• Overtime deductions: Up to $12,500 in federally mandated overtime wages beyond a standard 40-hour week.

Why it matters: Employers could see tax refunds for 2025. Employers should communicate these changes and prepare for increased payroll-related questions.

The DOL’s New Salary Thresholds for Exempt Employees

If you classify employees as exempt from overtime, pay attention:

• July 1, 2025: Minimum salary= $844/week or $43,888/year.
• January 1, 2026: Minimum salary jumps to $1,128/week or $58,656/year

Why it matters: Misclassification can lead to lawsuits. Now is the time to audit exempt employees and adjust compensation or reclassify roles if needed.

AI and Discrimination Laws

States like California and New Jersey have passed laws banning discriminatory use of AI tools in hiring and HR decisions.

• AI systems that analyze facial expressions or speech may violate anti-bias laws.
• Employers are liable even if they didn’t create the AI tool.

Action tip: If you use automated hiring or decision-making systems, review them immediately for bias.

Paid Leave Expansion Across the U.S.

States like Minnesota, Colorado, Maine, and Delaware are rolling out generous paid leave programs:

• Minnesota’s Paid Family and Medical Leave starts January 1, 2026, offering up to 20 weeks of combined leave.
• Colorado will provide an extra 12 weeks for NICU-related parental leave.
• Delaware’s leave benefits begin in 2026 with up to 80% wage replacement.

What to do: Budget for these changes and update your policies and payroll systems to stay compliant.

Non-Compete Agreements Under Attack

More states are banning or restricting non-competes, especially for healthcare workers:

Arkansas, Indiana, Maryland, Pennsylvania, Montana, Texas and others are banning non-competes for physicians and licensed medical professionals.

Colorado now prohibits certain non-competes for healthcare providers and even restricts what they can communicate to patients post-employment.

Recommendation: Review all non-compete templates and consult legal counsel before issuing new ones.

Stay tuned for Part 2

In Part 2, we’ll look deeper at state-specific sick leave mandates, wage transparency laws, new worker protections (like for whistleblowers and nursing parents), and how employers can stay ahead of these fast-paced developments.

What Every Business Owner Should Know Before Signing

When purchasing or expanding a small business, real estate is often part of the equation-whether it’s a storefront, office, warehouse, or commercial lot. But while real estate can be a valuable asset, the contracts involved can carry major legal and financial risks if not handled properly.

At WFJ, we frequently help small business clients review real estate purchase agreements, leases, and sale-leasebacks tied to business acquisitions. Here’s what you need to know before entering into one of these deals.

Understand What You’re Really Buying

Not all real estate tied to a business is owned by the seller- it could be leased, encumbered, or shared with another entity. Before signing a contract:

• confirm who owns the property
• determine if the business use is allowed under zoning laws
• verify whether any liens, easements, or encroachments exist

Tip: Always request a copy of the title committment and survey during due dilligence.

Review Contingencies Carefully

Purchase agreements should inclue key contingencies to protect your interests, such as:

• Financing Contingency-Gives you the right to cancel if funding falls through
• Inspection Contingency-Lets you walk away if the building has structural or environmental issues
• Zoning/Use Contingency- ensures you can operate the business at that location

Without these clauses, you could be legally bound to complete a bad deal.

Pay Clost Attention to Lease Assignments

If you’re acquiring a business that leases its space, the landlord must usually approve the lease transfer or assignment to you. If the lease doesn’t permit assignments-or if the landlord won’t approve it-you could lose the space entirely.

Best Practice: Have an attorney review the ease terms before the sale and assist with any landlord negotiations.

Be Cautious of Seller Financing and Sale-Leasebacks

Some sellers offer to “carry the paper” (finance the property) or sell the property but lease it back as a tenant. While these can be viable options, they carry risk:

• What happens if the seller stops paying rent or defaults?
• Are the lease terms fair and market-based?
• Is the financing agreement properly secured?

A poorly structured deal could result in unexpected litigation-or leave you holding a property without reliable income.

Protect Yourself with Legal Review

Even the most straightforward real estate deals can involve complex legal language, hidden liabilities, or obligations that follow the property after closing.

Working with an experienced attorney-especially one who understands small business transactions-ensures that:

• the agreement is legally sound
• your liability is limited
• your rights are protected if the deal doesn’t go as planned

The Bottom Line

Real estate can be one of the most valuable assets in a business acquisition-or one of the riskiest. By understanding the key issues and involving legal counsel early in the process, you can move forward with confidence and avoid costly mistakes.

On July 4th, 2025, President Donald Trump signed the One Big Beautiful Bill-a sweeping federal tax package that includes two headline-grabbing provisions: a new deduction for qualified tips and another for qualified overtime pay.

While these deductions are marketed as middle-class tax relief, they bring significant payroll and compliance changes for employers. Here’s what your business needs to know now-and how to prepare for what’s next.

Tip Deduction: Up to $25,000 for Eligible Employees

Employees in jobs that customarily and regularly receive tips-think hospitality or food service-can now deduct up to $25,000 in qualified tips from their taxable income.

To qualify:

• The tip must be voluntary, non-negotiable, and determined by the customer. 
• It must be received in 2025 or later while the provision is in effect (2025–2028).
• The deduction is reduced for high earners: $100 less for every $1,000 earned over $150,000 ($300,000 if filing jointly).

However, not all tip-based professions qualify. Employees in fields such as law, medicine, finance, performing arts, and consulting are excluded from this deduction. * (see the end of the post for a more comprehensive list of included fields.)

What this means for employers:

• You must report both the amount of cash tips received and the employee’s qualifying occupation on their W-2.
• FICA withholding and employer obligations for tips still apply.
• The deduction applies retroactively, so 2025 tips are already in scope.

Overtime Deduction: Up to $12,500 Per Employee

Non-exempt employees under the FLSA who work more than 40 hours per week can now deduct up to $12,500 in qualified overtime pay from their taxable income ($25,000 on a joint return). As with tips, the deduction phases out at higher income levels.

“Qualified overtime” must exceed the employee’s regular rate and be mandated under federal law. It cannot be counted as a qualified tip.

Employer impact:

• You must separately report total qualified overtime on W-2s and possibly Form 1099.
• Updated IRS withholding tables will take affect starting 2026.
• Like the tip deduction, this rule is retroactive for 2025 pay.

Key Takeaways for Employers

These new deductions may increase employee interest in reporting overtime and tips-but that accuracy comes with added responsibility for your business.

Here’s what you’ll need to watch:

• Payroll reporting updates: new W-2 data fields will require software and process updates.
• Recordkeeping requirements: Detailed tracking of qualifying wages, occupations, and hours worked is essential.
• Expiration timeline: These provisions are set to end after 2028 unless extended, so employers should prepare for both implementation and sunsetting.
• Behavioral shifts: More employees may seek tipped or overtime work, which could ease staffing gaps but also raise overtime costs.
• State taxes: These are federal deductions only-your state tax obligations may not change.

What Comes Next from the Treasury

The law directs U.S. Treasury (via the IRS) to:

• Publish a list of eligible tipped occupations within 90 days.
• Issue regulations to prevent misclassification of wages as tips.
• Provide new withholding guidance starting in 2026.
• Allow employers to use reasonable estimation methods to comply during the 2025 transition period.

How WFJ Can Help

Industries like hospitality, healthcare, retail, construction, and service are likely to feel the biggest impact from these changes. But any business with tipped or non-exempt employees should take note.

The WFJ Compliance Center is monitoring IRS rulemaking closely and can help your business:

• Interpret the new federal requirements
• Adjust internal systems and payroll process
• Maintain compliance and avoid reporting errors

If your team is affected by these new provisions, now is the time to act. Contact us today to get ahead of these changes and ensure your reporting compliance practices are ready for what’s next.

*Additional fields excluded from tip deductions

• health
• law
• engineering
• architecture
• accounting
• actuarial science
• performing arts
• consulting
• athletics
• financial services
• any trade or business where the principal asset of such trade or business is the reputation or skill of 1 or more of its employees
• investing
• investing management
• trading
• dealing in securities partnership interests
• commodities

For too many businesses, compliance becomes a priority only after something goes wrong. Maybe it’s an employee complaint, a Department of Labor audit, or a lawsuit that lands on your desk with no warning. These moments often trigger a reactive approach-scrambling to hire a lawyer, conduct internal investigations, or settle claims to avoid deeper trouble.

At WFJ, we help businesses shift from costly reaction to strategic prevention. And we believe the smartest way to do that is by outsourcing legal support.

Reactive Compliance: The Cost of Waiting Too Long

Reactive compliance means responding to legal issues only after they’ve surfaced-when the damage is already done.

Common Characteristics:

Focus: Putting out fires instead of preventing them.

Cost: Legal fees, fines, and reputational hits can add up quickly.

Risk: Waiting until a lawsuit, audit, or complaint arises increases your exposure to penalties and public scrutiny. 

Example: A business responds to a discrimination lawsuit by hiring legal counsel after the claim is filed-often leading to a costly settlement, public relations fallout, and internal morale issues.

Why it’s a problem:

• Delayed response often limits your options
• You have little control over how the issue unfolds
• Trust with employees and the public may take years to rebuild

Proactive Compliance: A Legal Safety Net Built to Prevent

Proactive compliance focuses on identifying potential risks and putting policies in place to avoid them altogether. 

Common Characteristics:

• Focus: Prevention through education, documentation, and clear processes
• Cost: Requires an upfront investment-but far less than litigation
• Risk: Significantly reduced, because you’re not waiting for problems to arise

Example: A company performs a pay equity annually with attorney review, fixing disparaties before a complaint is ever filed.

The benefits of proactive compliance include:

• Fewer suprises and emergency legal costs
• Stronger employee relationships and retention
• A reputation for transparency and responsibility
• Peace of mind for your leadership team

 Final Thought: Don’t Wait for Trouble to Knock

Businesses that prioritize prevention over reaction aren’t just protecting themselves legally-they’re building a stronger, more resilient workplace.

If your company is still operating reactively, now is the time to rethink your strategy. Partner with WFJ and let us simplify the complex-so you can focus on what you do best: running your business. 

When extending credit, protecting your rights as a secured party is critical. One of the most effective tools for doing so is the Uniform Commercial Code (UCC) Financing Statement-commonly referred to as a UCC-1. This legal document serves as a public notice of your security interest in debtor’s personal property and is essential for preserving priority if a debtor defaults.

Below is a breakdown of the UCC-1 process that every finance and credit professional should understand. 

Step 1: Secure a Signed Security Agreement

Before filing a UCC-1, you must have a security agreement in place-this document proves that the debtor has agreed to give you a security interest in their collateral.

Where this agreement may appear:

• As a standalone security agreement signed by both parties.
• Included in the terms and conditions of a credit application-many credit professionals include a security clause in their standard application.
• Embedded in a promissory note or other loan-related documentation.

Be sure the agreement clearly identifies the collateral and is signed by the debtor.

Step 2: File the UCC-1 Financing Statement

Once you’ve secured the agreement, the next step is filing the UCC-1 to perfect your interest. This filing is typically done with the Secretary of State in the Debtor’s state of incorporation (for business) or residency (for individuals).

A valid UCC-1 must include:

1. Debtor’s full legal name and address
2. Creditor’s (secured party’s) name and address
3. A description of the collateral

Sample Language: 

“Debtor’s inventory, including all documents, books and records related to the inventory, now owned or herafter acquired by Debtor from Secured Party or its successors and/or assigns, and the proceeds therefrom, including all proceeds from any insurance payable by reason of loss, damage, or destruction of any item of the inventory.”

The collateral description can be general but must be specific enough to reasonably identify the property.

Step 3: Know the Filing Duration and Renewal Rules

A UCC-1 filing does not last forever. Here’s what you need to know about maintaining it:

• Initial filing is valid for five years from the date of filing.
• To keep your security interest active, you must file a continuation statement no earlier than six months and no later than the expiration date.
• Failure to renew within the window results in laps of your perfected security interest-leaving you exposed to risk.

Note: The exact filing process and renewal requirements may vary slightly by state, so always confirm with the appropriate Secretary of State. 

Why It Matters

If your customer files bankruptcy, defaults on payment, or liquidates assets, having a perfected UCC-1 filing could be the difference between being repaid-or not. As a secured creditor, you stand in a stronger position to recover what you’re owed.

Final Thoughts

Finance professionals should view UCC filings as a core part of risk management. Whether your security interest is part of a loan, a credit sale, or a consignment agreement, the steps above ensure you’ve taken proactive measures to protect your company’s financial position.

Need help reviewing your credit documents or drafting a security agreement that holds up in court? Don’t hesitate to consult your legal team or trusted legal partner.

Minnesota’s new Paid Family and Medical Leave program is set to significantly impact employers starting January 1, 2026. While most Minnesota employers will participate in the state-run paid leave program, there is an alternative: offering an equivalent private plan. For employers considering this option, it’s critical to understand the requirements, benefits, and compliance obligations.

What is Minnesota Paid Leave?

Minnesota Paid leave is a state-mandated insurance program providing eligible employees with partial wage replacement for qualifying medical and family reasons. The program is funded by premiums paid by both employers and employees and covers nearly all private and public employers in the state.

Can Employers Opt Out?

Generally, no. Minnesota employers are required to participate-unless they offer an approve priate plan that meets, or exceeds the benefits of the state-run program.

Key Benefits of a Private Plan Alternative

• No State Premium Payments: Employers with approved private plans do not have to submit premiums to the state but must continue submitting quarterly wage reports.
• Direct Benefit Payments: Under a private plan, the employer (or insurance carrier) determines eligibility and pays benefits directly to employees, potentially speeding up the process compared to the state.
• Flexibility: Employers can offer a fully or self-funded plan and may cover medical leave, family leave, or both.

Requirements for Equivalent Private Plans

Private plans must match or exceed the state’s coverage in all major areas, including:

• Benefit Duration: At least 12 weeks of medical leave and/or family leave, depending on the type of plan.
• Eligibility Standards: Cannot be more restrictive than the state program.
• Employee Costs: Premiums charged to employees cannot exceed what they would pay under the state plan.
• Job Protections: Must provide equal employment protections as those in the state program.
• Coverage Continuation: Coverage must continue for 26 weeks after employee separation or until they start a new job.
• Types of Leave: Private plans must cover the same qualifying reasons, including medical conditions, bonding with a child, care for a family member, military-related leave, and safety leave.

Additionally, the private plan must:

• Allow intermittent leave or reduced schedules.
• Not impose additional restrictions or conditions beyond those in the state plan.
• Continue benefits for former employees on approved leave.

Approval Process and Next Steps

The state plans to open private plan applications in July 2025. Employers can prepare by:

• Working with insurance providers to explore pre-approved plan options.
• Gathering required application materials, including policy numbers, coverage documents, and payment of applicable fees.
• For self-insured plans, securing a surety bond equal to the total annual premiums that would be due under the state program.

Employee Notice Requirements

Employers with approved private plans must provide written notice to employees within:

• 30 days of the employee’s start date, or
• 30 days before collecting premiums, whichever is later.

The notice must include:

• Confirmation that the private plan offers all rights and protections under the state law.
• Details of wage replacement and leave benefits.
• Eligibility and premium contribution processes.
• Appeal rights and claim procedures.

Recordkeeping Obligations

Employers must securely maintain records related to an employee’s private plan benefits and provide copies of relevant claim information within 10 business days of an employee’s request-at no cost to the employee.

Why Consider a Private Plan?

For some employers, a private plan could offer:

• Potential cost savings.
• Faster processing of leave requests and benefit payments.
• More control over the leave administration process.

However, private plans come with strict compliance obligations. Employers must carefully weigh the benefits against the adminstrative responsibilities.

Stay Compliant. Stay Prepared.

Minnesota’s Paid Leave program is evolving, and the private plan offers an alternative path that could benefit your workforce and your bottom line. If you’re considering this option, now is the time to start planning.

WFJ is here to help you navigate the complexities of Minnesota Paid Leave and ensure your private plan meets all legal requirements. Contact us with your questions or to get started.