Perspectives

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.

When it comes to securing payment on high-dollar construction and equipment projects, lien and bond rights are some of the most powerful tools available. However, protecting those rights isn’t automatic-it requires precision, proactive tracking, and strict adherence to deadlines. Missteps, even small ones, can completely forfeit your ability to collect.

Here’s how you can efficiently safeguard your interests and streamline the lien and bond process:

Start with Solid Documentation

To support a lien claim, you need factual, organized records. You should consistently maintain:

• The Contract
• Job Level Tracking
• Credit Supplement Sheets
• Notices (Preliminary, Notice of Intent, etc.)
• Individual Invoices
• Proof of Delivery to the Jobsite

Without this backup, you won’t have the documentation needed to sign the lien affidavit. In fact, missing required notices can invalidate your lien entirely.

Prioritize Timely Notices

Each state has its own strict deadlines and notice requirements that, if missed, can be fatal to your lien rights:

• Utah: Preliminary notice must be provided within 20 days from first furnishing. It must be filed through the state’s central registration office. Failure to do so waives lien rights.
• Missouri: A 10-day Notice of Intent to Lien must be served to the property owner before filing. If the request comes less than 7 days before the deadline, you may be out of time.

Recommendation: Always send notices via certified mail and keep receipts. This documents the delivery timeline and helps ensure your notices are legally valid.

Confirm Proof of Delivery

It’s not enough that materials are shipped-you need to prove they made it to the jobsite. Proof of delivery confirms the last furnishing date and supports your lien rates. Materials sitting at a customer’s warehouse or another offsite location won’t count.

Verify the Correct Owner

Sending preliminary notices to the wrong owner can cause you to lose your lien rights entirely. Before sending notices, confirm ownership records to ensure you’re sending them to the legal property owner.

Engage Legal Support Early

Working with your legal partner early in the process is key. Request lien and bond assistance from your attorney at least 14 days before the filing deadline. Gathering backup from branches or project managers should start at least 20 days before the deadline.

At WFJ, we encourage you to reach out as soon as you identify a potential issue. Even if you’re unsure of the next step or don’t fully understand what’s being requested, we’re here to help walk you through it. We can also assit with opinion letters and answer questions along the way.

Takeaway

Safeguarding your lien and bond rights requires proactive planning, meticulous recordkeeping, and attention to deadlines. When these steps become part of your regular credit and collections process, you’ll protect your right to payment and dramatically reduce your risk.

If you need help navigating the process, our team is always happy to get on a call and guide you through it.

The 2025 Minnesota legislative session brought a range of important updates to employment laws, focusing on rest and meal breaks, Earned Sick and Safe Time (ESST), and Minnesota Paid Leave. While these changes may not be sweeping, they significantly impact employer responsibilities and workplace policies. HR professionals and employers should take note and prepare to update their practices accordingly.

Rest and Meal Breaks: More Structure, More Liability

Starting January 1, 2026, Minnesota’s rest and meal break laws will have stricter requirements and new penalties.

Rest Breaks

Employers must now provide:

• At least 15-minute rest break for every four consecutive hours worked, or
• Enough time to access the nearest convenient restroom, whichever is longer.

What’s Changing?

Previously, employers were only required to give employees “adequate time” to use the restroom. The new rule sets a clear minimum of 15 minutes, offering more definitive protection for employees.

Meal Breaks

Employers must now allow a 30-minute meal break for employees who work six or more consecutive hours.

What’s Changing?

The old rule required employers to “permit” meal breaks after eight hours, without specifying the length. The new law lowers the threshold to six hours and requires employers to actively allow a 30-minute break.

New Penalties

If an employer violates these break requirements, the employee is entitled to:

• Back pay for the missed break time at their regular rate of pay, plus
• An additional, equal amount in liquidated damages

In other words, employers could face double the liability if they fail to comply.

🗓 Effective Date: January 1, 2026

Earned Sick and Safe Time (ESST) Updates

Several employer-friendly adjustments to ESST went into effect on July 1, 2025.

Notice for Unforeseeable Leave

Employees must now give advance notice as “reasonably required by the employer” for unforeseeable absenses, replacing the former standard of “as soon as practicable”.

Documentation Timeline

Employers can now request reasonable documentation after two consecutive scheduled workdays of ESST use. The previous rule allowed requests only after three consecutive days.

Shift Replacements

Employers remain prohibited from requiring employees to find a replacement worker, but the law now clarifies that employees can voluntarily trade shifts if they choose.

ESST Advancement

🗓Effective January 1, 2026:

Employers may advance ESST hours based on anticipated hours the employee will work for the remainder of the accrual year. If the advanced amount is less than what the employee would earned based on actual hours, employers must make up the difference.

MN Paid Leave: Premium Adjustments

The legislature made made a technical update to the maximum premium cap for Minnesota Paid Leave:

• 2026 premium rate: Remains at 0.88% of employee wages.
• Future cap: The annual premium cap may now be adjusted up to 1.2% (increased from the original 1.1%).

The Minnesota Department of Employment and Economic Development (DEED) can adjust future premiums based on the program’s financial performance and actuarial principles.

Key Takeaways for Employers

• Review and update rest and meal break policies by January 1, 2026.
• Update ESST policies now to reflect the July 1, 2025 changes.
• Stay informed on future premium adjustments under MN Paid Leave.

Although these changes may seem incremental, noncompliance-especially regarding rest and meal breaks-could lead to significant penalties.

Stay Ahead of Compliance

WFJ is here to help you review your policies, update your handbooks and ensure you’re fully prepared for these changes. Reach out to our team for support in navigating Minnesota’s evolving employment laws.

We’re excited to announce a significant milestone for Wagner, Falconer & Judd and our long-standing relationship with LegalShield. WFJ has taken the reins as Provider Law Firm for LegalShield members in British Columbia and Alberta.

This expansion marks an incredible opportunity to serve LegalShield members across new regions, broadening our footprint in the Canadian legal market, and continue our legacy of delivering accessible, high-quality legal services across North America.

WFJ has proudly served LegalShield members in Minnesota, Wisconsin, North Dakota, South Dakota, and Montana for more than 27 years. This new partnership not only strengthens our relationship with LegalShield but also enhances our connections with key Fortune 100 clients, many of whom we’ve supported in Canada for years.

We look forward to continuing to provide trusted legal solutions to individuals, families, and businesses, and we are honored to expand our services to LegalShield members in British Columbia and Alberta.

Creating a fair, respectful, and legally compliant workplace starts with understanding anti-discrimination and Equal Employment Opportunity (EEO) laws. These laws are designed to protect employees and job applicants from unfair treatment based on certain protected characteristics-and they’re more than just best practices; they’re legal requirements.

For HR professionals and employers, staying informed and compliant with these laws is essential to fostering a workplace culture built on trust, inclusion, and legal integrity. Here’s an overview of the key federal anti-discrimination laws and how they impact your hiring and employment practices.

What is Employment Discrimination

Employment discrimination occurs when an employer takes an adverse action-such as refusing to hire, denying a promotion, or terminating employment-based on individual’s membership in a protected class. This kind of conduct is often referred to as disparate treatment and is prohibited under a patchwork of federal, state, and local laws.

Key Federal Laws the Prohibit Employment Discrimination

Understanding these major federal statutes is a critical first step in building a compliant and inclusive workplace:

Title VII of the Civil Rights Act of 1964

Prohibits discrimination based on:

• Race
• Color
• Religion
• Sex (including sexual orientation, gender identity, and pregnancy)
• National origin

Americans with Disabilities Act (ADA)

Protects individuals with disabilities from discrimination and requires reasonable accommodations in most employment situations. This includes the ADA Amendments Act (ADAAA), which broadened the definition of disability.

Rehabilitation Act

Mirrors the protections of the ADA but applies to:

• Federal employers
• Federal contractors and subcontractors (with contracts over $10,000)
• Employers receiving federal funding

Age Discrimination in Employment Act (ADEA)

Prohibits discrimination against individuals aged 40 and over.

Genetic Information Nondiscrimination Act (GINA)

Protects employees from discrimination based on genetic information, including family medical history.

Uniformed Services Employment and Reemployment Rights Act (USERRA)

Prohibits discrimination based on past, present, or future military service.

Section 1981 of the Civil Rights Act of 1866

Ensures equal rights to make and enforce contracts, including employment contracts, regardless of race, color, or ethnicity.

Equal Pay Act (EPA)

Requires that men and women in the workplace be given equal pay for equal work.

Family and Medical Leave Act (FMLA)

Prohibits retaliation against employees who take unpaid job-protected leave for qualifying family or medical reasons.

Immigration Reform and Control Act (IRCA)

Prohibits employment discrimination based on citizenship status or national origin and governs the employment eligibility verification process.

Why Compliance Matters

Failing to comply with EEO and anti-discrimination laws can result in:

• Costly lawsuits and settlements
• Damage to your company’s reputation
• Decreased employee morale and engagement
• Increased turnover and recruitment challenges

What HR Departments and Employers Should Do

• Review and update your policies to reflect current federal and state anti-discrimination laws.
• Train hiring managers and supervisors on appropriate interviewing, accommodation, and disciplinary practices.
• Establish clear procedures for handling discrimination complaints and conducting internal investigations.
• Audit pay practices and job classifications to ensure compliance with equal pay laws.
• Document decisions related to hiring, promotion, and termination to demonstrate non-discriminatory practices.

WFJ Can Help

At WFJ, we understand how complex and ever-evolving employment laws can be. Our team is here to support your HR department with tailored legal guidance, policy reviews, training, and proactive risk management strategies. By partnering with us, you gain peace of knowing your practices align with the law-and your employees’ rights are protected.

Ready to build a compliant and inclusive workplace? Let’s talk.