Perspectives

If your business offers subscription services, auto-renewing memberships, or any type of recurring billing program-whether to consumers or other businesses-change is coming. And it’s coming fast. 

Starting July 14, 2025, the Federal Trade Commission’s (FTC) new Click-to-Cancel Rule will take effect, creating significant compliance obligations for companies that utilize what the agency calls “Negative Option Features”. This new rule is designed to make it just as easy for customers to cancel a subscription as it was to sign up in the first place-and failure to comply will lead to regulatory scrutiny.

At WFJ, we’re tracking developments because we understand how quickly evolving federal rules can impact your day-to-day operations. Below, we break down what the Click-to-Cancel Rule requires and what steps your business should be taking now to prepare.

What is a “Negative Option Feature”?

A Negative Option Feature is a provision in a contract where a customer’s silence or inaction is interpreted as acceptance or continuation of a recurring service or payment. Think of automatic renewals, continuity plans, or free-to-paid trial conversions.

The FTC’s new rule applies broadly-to both business-to-consumer (B2C) and business-to-business (B2) transactions.

What Does the Rule Require?

The rule has three core requirements, two of which go into effect on July 14, 2025. The third requirement is already enforceable.

1.Simple Click-to-Cancel Mechanisms

Effective July 14, 2025

If your business allows customers to sign up for a subscription online, you must also allow them to immediately cancel it online-with no unecessary hurdles.

• Online Cancellations must be easy to find and use. If a customer signed up without talking to a representative, they cannot be required to speak with one to cancel.
• Telephone cancellations must be handled promptly, during normal business hours, and can not cost more than the initial call.
• In-person cancellations can’t be the only cancellation method-even if the original sign-up was in person.

Bottom line: The cancellation process must be as easy as the sign-up process. 

2.Clear Disclosures of Material Terms

Effective July 14, 2025

Before you collect billing information, you must provide clear and conspicuous disclosures, including:

• That charges will occur and may increase after trial periods
• How and when customers can cancel
• The cost and frequency of recurring charges
• The cancellation method required under the new rule

These disclosures must appear immediately next to the consent mechanisms and before the customer agrees to the terms.

3.No Misrepresentations

Already in effect

The rule prohibits misrepresenting any material fact about your recurring service-including:

• The cost
• The cancellation process
• The nature or effectiveness of the service
• Any aspect likely to influence a customer’s purchasing decision

If it could affect someone’s choice to sign up or continue a service, it must be stated truthfully and clearly.

Why This Matters Now

Although some aspects of the rule won’t be enforceable until mid-2025, the FTC has already made it clear that transparency and fairness in subscription-based services are a top enforcement priority. With the July 14 deadline approaching, busineses should begin reviewing customer onboarding flows, updating cancellation procedures, and ensuring disclosures meet the new standards. 

It’s also important to note that state laws may impose stricter requirements, and complying with federal rules doesn’t guarantee compliance at the state level.

How WFJ Can Help

At Wagner, Falconer & Judd, our attorneys and Compliance Center team are dedicated to keeping businesses like yours ahead of the curve when it comes to legal and regulatory changes. We know that each business model is different-and compliance isn’t one-size-fits-all.

Whether you need a comprehensive reivew of your current subscription practices, help drafting compliance disclosures, or advice on how this rule interacts with your state’s laws, we’re here to guide you every step of the way.

Reach out to WFJ’s Compliance Center today to ensure your business is ready for the Click-to-Cancel rule and stays compliant.

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! 

It’s official-U.S. businesses are off the hook when it comes to the Corporate Transparency Act (CTA). In a major development, the Financial Crimes Enforcement Network (FinCEN) has announced an interim final rule that eliminates the requirement for U.S. companies to file a Beneficial Ownership Information (BOI) report. Instead, only entities formed under foreign laws must comply.

What Happened?

The CTA, which took effect in 2024, originally mandated that most U.S. businesses disclose ownership details to FinCEN as part of an effort to combat illicit financial activities. However, ongoing legal challenges questioning the constitutionality of the CTA led FinCEN to reconsider its stance. Rather than engaging in prolonged litigation, FinCEN has effectively withdrawn the requirement for U.S. businesses, leaving only foreign-formed entities subject to compliance.

What This Means for Employers and Business Owners

If you were preparing to submit a BOI report, you can take that off your to-do list. However, this doesn’t mean compliance requirements in other areas are going away. Employers and businesses should stay vigilant aout other regulatory obligations, such as tax filings, employment laws, and industry-specific reporting requirements. 

What’s Next? 

While this ruling brings relief to many businesses, regulatory landscapes can shift quickly. FinCEN may revisit aspects in the future or introduce alternative reporting measures. WFJ will continue monitoring any updates to keep business owners informed. 

For now, U.S. companies can breathe easier knowing they are not required to comply with the CTA. If you have any questions about corporate compliance, WFJ’s legal team is here to help. Stay informed, stay compliant and focus on what you do best-running your business.