Who's ready for spring? Probably everybody, but definitely all of us in Minnesota. Well, it's almost here. Technically, that is. Onward and upward!
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Minnesota Business Magazine Names FMJ One of the "100 Best Companies to Work For" for the Third Consecutive Year
Now in its third year, the "100 Best" event honors Minnesota companies that set the
standard for employee well-being. "The 100 Best" are chosen using data gathered from an anonymous employee satisfaction survey administered by an independent research group. The survey addresses areas such as work environment, employee benefits, employee happiness and leadership.
See the complete list of the "100 Best" here.
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FMJ Earns Victory at the United States Supreme Court 
Earlier this year, the High Court ruled in favor of our client Air Wisconsin in the case of
Air Wisconsin Airlines Corp. v. Hoeper, creating significant and positive implications
for the safety of the flying public and airline industry.
Read more about the case in this Twin Cities Business article for which FMJ founding shareholder and lead counsel for Air Wisconsin Donald Chance Mark, Jr. was interviewed.
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 When does a Business Need E&O and D&O Coverage?
As the trend in increased exposure to businesses and rise in lawsuits against employers continues, errors and omissions insurance (E&O) and directors and officers insurance (D&O) may prepare your business for the costs associated with a lawsuit.
FMJ attorney Heather Diersen recently wrote a guest column for Finance & Commerce that can help you determine if your business needs E&O and D&O insurance. Read her article here.
Four Questions with Pat Shriver  Does it surprise you to know that manufacturers don't automatically own the rights to inventions that their employees develop on the job?
Pat Shriver gave an interview on this topic for the "Four Questions" feature in Enterprise Minnesota. Read the whole article here to learn about "shop rights" and "assign all inventions" clauses.
Banning the Box  We mentioned in our January e-newsletter that, effective as of the beginning of 2014, all Minnesota employers are prohibited from inquiring about, considering, or requiring disclosure of an employment applicant's criminal record or history at the start of the application and hiring process.
For a deeper understanding of the new law, you can read FMJ shareholder Mary
Rice's article here that she wrote for Minnesota Business magazine (February issue).
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With Attorney Matt Jensen
Getting Started on your Business Succession Plan
One of the most difficult aspects of succession planning is simply getting started. With the multitude of tasks required just to keep a business in operation, planning for the future often gets pushed to the back of the to-do list.
While beginning this process can seem daunting, there are many benefits of developing and maintaining a business succession plan. Just to name a few, the company owner can establish parameters whereby they maintain control of the organization, successors can be groomed to lead for a longer period of time, and substantial tax savings can be realized. Below are a few points to consider as you begin the process of business succession planning.
Talking with Potential Successors
One of the first things to consider is seemingly the most obvious, but can be easily overlooked. Who are your potential successors when it comes to running your company? Are your children interested in the business? Is a current employee interested and/or capable in running the company? Simply engaging in a 10 minute conversation with these individuals can give you a more clear and realistic idea of the desires and dreams of any potential successors.
Transitioning Control
Many small business owners often equate business succession planning with giving up control of the company. However, it is possible to develop a succession plan that transfers ownership without losing control or income. There are many ways to gift or sell ownership shares of the company without relinquishing control. Ownership shares may be gifted throughout a period of years, or a stock purchase plan can be developed whereby a successor gradually increases their ownership share in the company. The earlier a transition plan is established, the more options the business owner has available to them.
Estate Planning
For many business owners, their greatest asset is their business. Comprehensive estate planning can thus be extremely valuable for business owners as they look to work less, sell the business, or fully retire. If a business is going to be left to the children of the owner, gifting ownership shares over an extended period of time can be a tax-efficient method of transferring ownership. Strategies that make effective use of federal gift and estate tax exclusions and exemptions can result in substantial tax savings.
Business succession planning shouldn't be looked at as a burdensome task to be grudgingly completed, but rather, an opportunity for a business owner to capture, maintain, and retain the value of the business. By developing a plan, a business owner can establish long-term goals and objectives that fulfill the needs of both the business and the personal needs of the owner. Every business owner is fully aware of the work required to start and run a successful business, and they're encouraged to view business succession planning as an opportunity to continue to manage their business into the future.
With Attorney David Ness
Must-Have Estate Planning Documents
Every adult needs to prepare a core set of estate planning documents to plan for incapacity or death. Failure to properly plan for the unexpected can have adverse consequences to you, your family and your estate.
Planning for Incapacity
1. Durable Power of Attorney for Financial Affairs. This is a legal document where you appoint another individual to handle your financial affairs should you become incapacitated. Without this document, your family is forced to obtain court authority.
2. Advanced Medical Directive. In Minnesota, this document is referred to as a Health Care Directive with two primary functions: first, to outline your medical preferences should you be unable to communicate; next, this document appoints the agent to make medical decisions on your behalf should you be unable to express your wishes.
Planning for Death 3. Last Will and Testament. A will designates the administrator of your estate, outlines the distribution of your estate, and, if applicable, nominates a guardian for minor children. To be effective, a will must be filed in probate court after your death. Probate court is a judicial process where the court oversees the administration of your estate.
4. Revocable Living Trust. A living trust serves as an alternative to a traditional will and probate court administration. By transferring your property to your trust during your lifetime, the property passes free of probate court upon death. Avoiding probate court can provide a less costly and more efficient settlement of the estate - especially those owning property in several states.
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Employer Gets $80,000 Employment Settlement Thrown Out After Teen Daughter's Facebook Post
Patrick Snay, the former headmaster of the private Gulliver Preparatory School in Miami, Florida, brought an age discrimination and retaliation lawsuit against the school when it failed to renew his contract. The former headmaster eventually settled with the school and signed an agreement containing a confidentiality provision. The confidentiality provision prohibited the former headmaster and his spouse from disclosing the terms or even the existence of the settlement agreement to anyone other than their attorney or other professionals. The agreement specifically stated that a breach of the confidentiality provision would result in disgorgement of a significant portion of the settlement proceeds ($80,000) - still paying the former headmaster's attorneys' fees and $10,000 in back pay.
Despite this agreement, Snay told his daughter about the settlement. She promptly posted a status on Facebook stating, "Mama and Papa Snay won the case against Gulliver. Gulliver is now officially paying for my vacation to Europe this summer. SUCK IT." The daughter's 1,200 Facebook friends included current and former Gulliver students. Just days after the settlement agreement was executed, the school's attorneys notified the former headmaster it would not pay him the settlement proceeds due to his breach.
The headmaster sought to enforce the settlement and won in district court. However, on February 26, 2014, the Florida Court of Appeals found that the headmaster violated the confidentiality agreement and refused to enforce the $80,000 settlement. Despite the former headmaster's plea that he had to tell his daughter something because, as a student during the case, she suffered "psychological scars which forced [Snay] to put [his daughter] in therapy," he never told his daughter that he "won" the case, and that his daughter did not, in fact, go to Europe that summer, the appellate court was not persuaded. The appellate court wrote: "Snay violated the agreement by doing exactly what he had promised not to do. His daughter then did precisely what the confidentiality agreement was designed to prevent..." The court's opinion focused on the fact that the agreement prohibited disclosure of "any information" "either directly or indirectly."
The case and its fallout is an encouraging example to employers of the potential ability to enforce confidentiality provisions in their settlements with former employees. Business owners may also be encouraged that confidentiality in any dispute resolution should be taken seriously. But perhaps it is even a greater lesson to everyone to beware of disclosures of confidential information in a technology-fueled era - particularly when teenagers with Facebook accounts are involved.
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Terri Ulku
Terri has been with FMJ for almost a decade and is the assistant to Bob Fafinski, our CEO, and Sharon Johnson, our COO. In addition to assisting two key, very busy individuals at the firm, Terri plays a large role in billing. She grew up in the southwest metro of Minnesota and still lives there, residing in Minnetonka.
Q: What's something about you that people would be surprised to know? 
A: I was a costume designer for 15 years and had 25 seamstresses sewing for me.
Q: What's your favorite band?
A: Earth Wind and Fire! Yes, I am that old.
Q: What TV show or movie are you ashamed to admit that you love?
A: Lately, it has been Alaska - The Last Frontier, and before that, it was Dexter.
Q: What's the most embarrassing fashion trend that you've embraced?
A: I used to perm my hair - YIKES!
Q: What's your personal motto?
A: My kids can tell you this one! Be kind. People may forget what you said to them, but they will always remember the way you made them feel.
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Want us to write on a particular topic or answer specific questions? Send your ideas to FMJ's public relations and marketing manager Heather Morrison at [email protected].
Sincerely, Your friends at FMJ |
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