Minnesota Paid Leave Program: Update!

10.18.2024 Written by: Henningson & Snoxell, Ltd.

As you may know, Minnesota passed a Paid Leave program in 2023, which goes into effect January 2026. However, beginning in July 2024, most employers are required to begin submitting quarterly wage detail reports to the Paid Leave program; although, no premiums are paid until after the Paid Leave program becomes effective in 2026.

The first wage detail report is due October 31, 2024, and will be based on wages paid between July 1, 2024, and September 30, 2024.

Reporting

Employers must submit wage detail reports every quarter using the Unemployment Insurance (UI) Online system. The wage detail report is the same report required for UI; therefore, employers already utilizing the UI Online system can submit a single wage detail report that will satisfy the reporting requirement for both programs. Your UI accounts for each employee have been automatically converted into a joint UI/Paid Leave account.

For employers with employees not covered by the UI program, you will need to set up a “Paid Leave Only” account (now available) for each employee not covered by UI. Instructions for setting up your account are now available on the Minnesota Paid Leave website and linked below.

Required Information in Wage Detail Report

Employers must include (1) the first and last name, (2) the Social Security number, (3) wages paid during the specified quarterly period, and (4) hours worked for each employee. Again, this is the same information required under the Unemployment Insurance program.

What do employers need to do at this point?

Create Employee Accounts, if necessary: The “Paid Leave Only” accounts are available here. If you do not have an Unemployment Insurance account for each of your employees, you will need to create a Paid Leave Only account for them. If you already have Unemployment Insurance accounts for your employees, you do NOT need to create any new accounts for them. Your quarterly reports will serve both UI and Paid Leave.
Prepare For the Administrative Obligation: We recommend putting in place administrative procedures for quarterly wage detail reports (i.e., who will be responsible for submitting the wage detail report, if not already in place for UI). Failure to submit the required wage detail reports for each employee is subject to a late fee of $10 per employee, with a minimum late fee of $250; administrative service fee of $25 per employee whose information is incomplete; or 2 percent of the total wages for an omitted employee.
Determine Which Employee’s Wage Reports Are Required: Only covered employees in covered employment are required to have reports filed. “Covered employees” include:
1. Employees who performed at least 50 percent of their employment during the past calendar year in the state of Minnesota;
1. Employees who did not perform 50 percent or more of their employment during the past calendar within any single state or Canada, but who resided within Minnesota for at least 50 percent of the past calendar year; and
1. Employees who did not perform 50 percent or more of their employment during the past calendar year within any single state or Canada, but whose employment is controlled and directed from within Minnesota.

“Covered employment” includes any employment, except for (1) self-employed individuals; (2) independent contractors; or (3) seasonal employees.

Also note, while MN employers are required to participate in the Paid Leave program, they may seek an exemption by applying for a private plan exemption beginning in 2025. The private plan must include at least the same rights, protections, and benefits as those provided to employees under the Paid Leave law. However, at this time, employers are still required to file wage reports until an exemption is approved.

We will continue to update you as more information becomes available. Please contact us with any questions about your obligations as an employer under the wage detail reporting requirements or the new Paid Leave program. We are here to help!

FTC’s Non-Compete Ban is blocked!

09.16.2024 Written by: Henningson & Snoxell, Ltd.

The Federal Trade Commission (FTC) published a final rule banning nearly all non-compete agreements, nationwide, on May 7, 2024, to be effective September 4, 2024. However, a recent lawsuit in the United States District Court for the Eastern District of Texas challenged the final rule’s lawfulness. On August 20, 2024, the Court held that the FTC’s non-compete rule was unlawful, and that the FTC lacks any substantive rule making authority with respect to unfair methods of competition. As such, the rule was blocked and non-compete agreements are still available to the extent allowable under Minnesota noncompete law.

Appeals by the FTC from this ruling are expected. Such appeals would be heard by the Fifth Circuit Court of Appeals and possibly even the U.S. Supreme Court, both of which have issued recent decisions reducing the power of federal agencies.

H&S is here to assist you with your questions and concerns regarding non-compete agreements. Give us a call to learn how we can help you continue to protect your business interests.

The Real Goal of Incapacity Planning: Preserving Autonomy

07.30.2024 Written by: Henningson & Snoxell, Ltd.

Whenever we think about incapacity or incompetency, our tendency is to think of the worst disaster we can conjure up in our minds, such as a medical emergency that leaves someone in a hospital for a prolonged recovery or the sudden loss of a person’s mental faculties that requires in-home or long-term care. These are the typical disasters that pop into our heads. We do not think about the more mundane—but no less important—aspects of incapacity. Can my spouse sign for the both of us when I am unavailable to sign? Can a trusted friend assist with a local Minnesota bank transaction while wintering in Arizona? Can a parent still look after a child’s finances after that child has just turned 18?

Often, the disasters that we play out in our heads about incapacity are the ones that are the least likely to happen. The fact is: adults at any stage of life can make a sound plan that takes their own life circumstances into account. But to effectively make those plans, we have to know what incapacity planning is. Typically, incapacity planning includes a Health Care Directive and a Power of Attorney document. Health Care Directives authorize someone (called an “agent”) to make medical decisions on behalf of the person signing the Health Care Directive. These documents can include simple or complex instructions to the agent about what decisions should be made for different diagnoses and prognoses. But a Health Care Directive authorizes the agent to do more than make health care decisions. An agent can helpfully obtain medical records to inform new attending physicians of important past medical history. The Health Care Directive can even provide legal authority for the agent in a healthcare setting, allowing the agent to sign waivers or releases as needed. The abilities of an agent are useful at any time, even for relatively non-life threatening medical health problems, like surgeries that require general or local anesthesia or temporary mental health concerns. Health Care Directives help you make decisions in advance, making sure that you are the decision-maker even when you could not make the decision otherwise.

Powers of Attorney authorize someone (called an “attorney-in-fact,” which is not the same thing as an “attorney-at-law” or lawyer) to make financial decisions on behalf of the person signing the Power of Attorney document. Most people think that a Power of Attorney will give complete control to someone else, which can be a daunting proposition. But Powers of Attorney may be limited in scope, only authorizing certain types of transactions for a limited time. Powers of Attorney may last through incapacity (known as “durable”) or become effective only at the moment of incapacity (known as “springing”). Powers of Attorney can be fine-tuned for any occasion. For example, if a new high school graduate wants to still rely on her parents’ financial know-how and assistance while she heads to college or a new job, she can ask her parents to assist in limited ways by using a Power of Attorney. She can ask her parents to assist at her bank or with selling old personal property that she left at home.

For adults with minor children, there are additional steps to plan around incapacity. Many will be familiar with nominating a guardian to look after minor children in a Will, but Minnesota law allows a temporary delegation of custodial powers by a parent or legal guardian to another person. This can be useful in the event that parents decide to go on a vacation together and need an extended family member to look after their minor child(ren). These types of situations are not medical emergencies or unexpected crises; these events are just the normal course of life. Incapacity does not have to be dire doom and gloom. In fact, the most useful aspects of incapacity planning are usually just to make our lives more simple and stress-free, knowing that we have someone we trust to look out for us in the event some unlikely tragedy does befall us.

Even in those more urgent circumstances, the goal is not to focus on the morose. The goal is to focus on preserving your own self-determination. The decisions we make when preparing documents; the instructions we give to our agent; those are the things that will be carried forward. People focus far too often on the potential loss of their decision-making capabilities. Instead, we should focus on the fact that we get to maintain our autonomy by giving guidance to others acting in our best interests.

To help you think through these topics, rely on Estate Planning and Elder Law Attorneys at Henningson & Snoxell. An attorney has the legal know-how to complete these documents legally and properly. For any topics that may require advance planning, a lawyer can advise the client about the best way to navigate future occurrences. Each and every client will have a unique perspective, and Henningson & Snoxell’s attorneys will take your circumstances into account when advising you. Contact Henningson & Snoxell for an appointment today!

Corrective Legislation Relating to Transfer on Death Deeds

07.26.2024 Written by: Henningson & Snoxell, Ltd.

Illustration portraying the extended coverage of transfer on death deeds.

On August 1, 2024, new Minnesota legislation that addresses insurance coverage on real estate subject to a Transfer on Death Deed (TODD), will take effect. A Transfer on Death Deed is a deed that beneficiary-designates an interest in real estate and is effective upon the death of the property owner.

This new law is a product of a 2019 federal district court case, Strope-Robinson v. State Farm Fire and Cas. Co. (429 F. Supp. 3d 634 (D. Minn. 2019), aff’d by 844 Fed. Appx. 929 (8th Cir. 2021)). In the Strope-Robinson case, the property owner conveyed a house to a beneficiary via a TODD, the property owner died, and then the house burned down. State Farm denied the beneficiary’s claim for coverage because the policy was the property owner’s, and not the beneficiary’s. The court ruled that State Farm was not responsible for covering the damage to the dwelling.

The new law extends temporary insurance coverage under the property owner’s policy to TODD beneficiaries under certain circumstances, where: 1) the property owner provides proper notice to the insurer of the existence of the TODD and the names and contact information of all beneficiaries; 2) the property owner gives the name and contact information of the insurer to the beneficiaries; and 3) required proofs are provided by the beneficiaries to the insurance company. The beneficiaries’ temporary coverage terminates the soonest of: 1) 30 days after the property owner’s death, 2) when the property owner’s policy expires, or 3) when the beneficiary purchases a replacement policy.

Introducing Our New Hearing Amplifier and Signature Guides

07.03.2024 Written by: Henningson & Snoxell, Ltd.

To assist our clients and facilitate clients’ experience, Henningson & Snoxell is pleased to provide a hearing amplifier for the hearing-impaired and a signature guide for the sight-impaired.

The innovative and revolutionary hearing amplifier by Trihear is made for comfort and convenience. The wearer simply wears a headset, clips the amplifier to the front of his or her shirt (or attaches it to a complementing lanyard around his or her neck) and presses the amplifier’s “on” button. The adjustable headset hooks up with the amplifier, which can also be adjusted by the wearer. The amplifier is designed to produce crystal-clear sound quality at a customized volume level so the wearer does not miss a word of the conversation.

In addition, our signature guides offer invaluable support for sight-impaired clients. To use a signature guide, the guide is placed over the signature block, and the signer feels the guide and signs within it. The guide makes it easy for the signer to sign his or her documents independently, comfortably, and with confidence. Whether you are seeking to hear more clearly or looking for an assist in signing your documents with ease, these tools will facilitate your experience at Henningson & Snoxell, Ltd.

Medical Assistance Renewals Return to Pre-COVID Rules

05.08.2024 Written by: Rachell L. Henning

Older woman researches medical assistance.

During the COVID-19 pandemic, Minnesota’s Department of Human Services (DHS) temporarily paused processing Medical Assistance renewals. The Department resumed processing renewals in 2023 and has been utilizing an unwinding period to complete them more quickly. This unwinding period has allowed participants the option of not providing verification of their assets during the renewal process. This option will no longer be available for renewals due starting in July of 2024.

Starting in July, individuals who have a renewal for their Medical Assistance benefits will be required to provide verification of their assets with their renewal paperwork. DHS will also be requesting updated and signed AVS (Account Validation Service) forms. This enables the county to utilize the participant’s Social Security number to ping banks nationwide to check for any open or closed accounts in the participant’s name, the other account owners on the account, and the balance of the account on the first of the month.

It is important to complete and return the renewal notice by the deadline. Failure to do so could result in termination of eligibility for Medical Assistance and a need to reapply for Medical Assistance. Be sure to maintain bank statements and other documentation of assets to be able to timely provide documentation with the completed renewal to avoid unnecessary interruptions in eligibility.

The elder law attorneys at Henningson & Snoxell, Ltd. are knowledgeable in Medical Assistance applications and renewals and can help you navigate the process based upon your individual needs.

James Snoxell, CEO of Henningson & Snoxell, Retires April 30, 2024

05.01.2024 Written by: Henningson & Snoxell, Ltd.

James Snoxell retired from Henningson & Snoxell, Ltd. on April 30, 2024. Jim has seen the firm grow in size, capability, and culture since joining in 1982. But its goal, shared by attorneys, paralegals, and support staff alike, has remained constant: to serve clients with integrity, responsibility, and utmost concern for their needs.

Creating a Culture That Cares

Jim joined with partner L. David Henningson at the one-year-old firm in 1982. The pair shared a vision for an ethical law firm that put clients’ needs first, and they quickly set about searching for likeminded individuals to bring aboard. For Henningson & Snoxell, strength of character has always been valued alongside technical skills and experience.

Jim and David also sought to build a full-service firm that could meet the varied needs of all their clients, from individuals to large businesses. They brought in proficient attorneys who focused on specific areas of law, meaning a client could always speak with a knowledgeable professional, no matter their needs. Every team member played to their strengths, collaborating to ensure the best results. This team-oriented, client-focused environment continues to this day.

Growing Beyond

Jim has seen the firm adapt to many changes in technology and the evolving needs of clients over the past 42 years. But he is especially pleased with the positive changes Henningson & Snoxell has achieved in the workplace. Interaction in the office is more causal than it was originally, leading to a culture of camaraderie where everyone is encouraged to do their best work.

“I genuinely like and enjoy being with each of the other attorneys in the firm,” Jim said. “I respect them, and I trust them.”

Henningson & Snoxell has also grown beyond the strict hierarchical structure that was once the norm for law firms. Paralegals, support staff, and attorneys alike are respected and expected to contribute their thoughts, knowledge, and suggestions for improving the firm’s services. Clients routinely meet with different people, taking advantage of the wide range of expertise the firm offers.

“It’s made for a very level environment,” Jim said. “I can be critiqued by a law clerk or by the newest attorney in the firm if they see me doing something that’s not as good as it could be. And that has been a tremendous benefit for the firm, and it increases collegiality as well as the end result.”

Looking to the Future

Jim is confident in the firm’s future and the leadership that is in place for the coming years. Henningson & Snoxell has expanded greatly in size, sophistication, and the range of clients it is able to help, but there is always room for further growth.

“We still have the desire to continue to grow, continue to improve, and continue to be the best possible law firm that we can and do the best job we can for our clients,” Jim said. “That objective has never changed.”

He expects and encourages his colleagues to continue to honor the fundamental principles that have always guided the firm—to treat everyone well and to provide the best service possible.

In his retirement, Jim looks forward to having a little more time and flexibility to enjoy his hobbies and spend time with his community, church, and family. He is also excited to watch Henningson & Snoxell continue to grow and has nothing but hope and confidence in the firm’s ability to deliver excellent service to clients.

Mitigating the Medical Assistance Emergency: What to Do When It is Too Late to Plan

04.26.2024 Written by: David T. Estle

A nurse offers medical assistance to an older woman in a wheelchair.

One misfortune, such as a sudden disability or diagnosis, can change the financial outlook of a person or married couple in a drastic way. The typical reason for applying for Medical Assistance for Long-Term Care Services, a program that pays for an eligible applicant’s nursing facility or community-based healthcare services, often includes an unforeseen circumstance that precipitates a need for this level of care. Suddenly, a person’s (or couple’s) plans and visions he or she had for himself or herself have become completely untenable.

For families deciding what to do, it can feel like their world has been flipped upside down in a single moment. There are so many unanswered questions that were not ever a concern before: How will I pay for this? What will happen if I run out of money before being approved for services? Will my spouse have anything left to live on? Will I be left impoverished just for needing this service?

Single persons, couples, or families grappling with these issues—especially when time is of the essence—need answers to these questions quickly. One of the first issues that people considering a Medical Assistance application will face is whether they will apply for the general Long-Term Care program to stay at a skilled nursing facility/nursing home or whether to seek eligibility for a waiver program that allows the applicant to stay in-home or at least at an assisted living facility/care unit. Although both programs fall under the Medical Assistance umbrella, there are important distinctions between the programs that affect people’s choices.

Waiver-Based Medical Assistance vs. General Long-Term Care

Most people prefer to receive community-based services outside of a nursing home. When it becomes apparent that a person may need to apply for Medical Assistance, even eventually, that individual or both spouses often plan a move to an assisted living facility, where they will pay their own way as long as possible, often selling their home or condo to begin paying for services themselves. This may not be the best financial or legal decision available to them. This is because the currently owned home or rental property is often still the most cost-effective place to receive care.

Seeking a waiver-based Medical Assistance program pays for care services, not room and board. The assistance covers broad needs that help an applicant with their needs for daily life, including bathing and dressing, and even chores and cleaning services. However, when moving to an assisted living facility, the waiver program fails to cover the rent; that will be left to the personal funds of the waiver recipient or the recipient’s family. Many people go all-in intending to qualify for the waiver program, only to find that they will still be on the hook for rent at the facility they were desperate to live in and that they sold everything else to get to. This comes as an incredibly unwelcome surprise.

Sometimes, getting into an assisted living facility is difficult in its own right. Assisted living facilities typically require potential residents to prove that they can afford to live there for two years. And because of high demand for assisted living facilities (and difficulty staffing these facilities in recent years), facilities want to assess whether they are even equipped to meet a person’s care needs. It used to be commonplace that residents of assisted living who were able to initially finance their stay privately would always have continuity of care and a place to stay once waiver services were paying for them. That is not necessarily the case anymore. The facility may move a person who has recently gone on waiver services to a different room or claim that there is no space or ability to provide continued service at all.

By contrast, a general Long-Term Care application will entitle the applicant to room and board expenses being paid, but only if a nursing home level of service is required. Therefore, that application requires proof of need for skilled nursing care that is beyond the capabilities of an assisted living facility. As you can see, there are many issues to consider, and the best thing a person can do is consider them with an Elder Law Attorney who practices in this area.

A budget may be the first order of business. People often put a great deal of weight on the large assets that they own, focusing on things like homes, brokerage or retirement accounts, and the like. These funds are what people think of when having to pay for the large costs of care that have only been increasing astronomically in recent years. However, you can least afford to get tunnel vision when it comes to considering your every option. Sometimes, it is helpful to focus on income and expenses because that is what we live on. If one option appears to provide more stability from a financial perspective, that may be the best option going forward.

The discussions you will have with an Elder Law Attorney will be very forthright and will often require finding a way to budget with your utmost goals in mind. These are difficult discussions, but they have an aim and outcome in mind: getting the best, needs-specific care for a client or client’s family member while qualifying for the most appropriate program available.

Trust Henningson & Snoxell

Although it appears like there is no opportunity to plan, it makes sense to proceed thoughtfully. None of these goals can be reached without the knowledge necessary to make a roadmap to get there. Even when there seems to be no room to maneuver, one of our Elder Law Attorneys can make sure you take your next best step forward. Contact us today to get started.

New Shareholder Announcement: Adam Kaufman & Kelly Eull

03.11.2024 Written by: Henningson & Snoxell, Ltd.

Henningson & Snoxell, Ltd. is pleased to announce that attorneys Adam J. Kaufman and Kelly M. Eull are now shareholders of the firm. Adam and Kelly have been with the firm for several years, consistently providing knowledgeable assistance to clients in the areas of estate planning and family law, respectively.

Adam is part of our Estate Planning department, where he advises clients in the preparation of wills, trusts, incapacity plans, guardianships, conservatorships, and prenuptial agreements. He enjoys working with clients throughout their lives and helping them plan for their futures. Adam is licensed to practice in Minnesota and Wisconsin.

Kelly is chair of the Family Law department and handles matters involving dissolution of marriage, paternity, custody, and child support. Kelly strives to achieve the best outcomes for her clients by applying her extensive experience in family law to help them make informed decisions.

Please join us in congratulating Adam and Kelly on becoming shareholders of Henningson & Snoxell, Ltd.

Want to learn more about Adam and Kelly? Visit our Attorney Profiles here!

DHS Assisted Living Report Card

02.14.2024 Written by: Henningson & Snoxell, Ltd.

On January 29, 2024, the Minnesota Department of Human Services launched the much-anticipated Assisted Living Report Card. The information will help families when they are investigating assisted living options for their loved ones and will enable families to search for a facility by name or by geographic area. This will help provide families with a centralized location to begin their search for an assisted living facility while gathering objective information about whether the facility can support a loved one with dementia, and to know how the facility performs on certain key indicators, such as quality of life, resident health, safety, and staffing. While the database is continuing to gather information, the Assisted Living Report Card site will provide families with a solid starting point when they begin their search for an assisted living facility in Minnesota.

The Assisted Living Report Card can be found at: https://alreportcard.dhs.mn.gov/.

For families who are beginning the journey and find themselves in need of assistance or guidance, our elder law attorneys at Henningson & Snoxell can provide valuable insight into the process and provide resources to help with covering care costs. Contact us today!

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