Posts by Bob Halagan, Halagan Law Firm, LTD.
The New Minnesota LLC Act
Effective August 1, 2015, the Minnesota Legislature adopted a new law governing Limited Liability Companies (“LLC”). This law has the greatest impact on new LLCs but also has implications for existing LLCs and the relationship between their member/owners. The adoption of the new law is intended to reduce the formality associated with operating an LLC. …
Read MoreHow to Prepare for an Unemployment Hearing
If you have terminated an employee or are in a business with regular personnel turnover, you have probably been faced with the prospect of attending an unemployment hearing. Here are some tips on how to get ready for a hearing. Do you need to participate? The first question is whether to contest a claim for…
Read MoreHow High Trust In Organizations Leads To Improved Performance
The author and leadership expert Warren Bennis has said, “Trust is essential to all organizations.” Yes, organizations that operate in an environment of high trust eliminate barriers to performance and stimulate employees to hone their skills and step up their game. You won’t be surprised to know that when your employees trust and have open…
Read MoreWatch Out For The Worker’s Compensation Retaliation Claim!
One of the “growth” areas in employment litigation is retaliation claims, and in particular retaliation claims relating to worker’s compensation. Close ties between organizations representing employees in worker’s compensation claims and attorneys who handle plaintiffs’ employment retaliation claims, make it very likely that if you terminate an employee with an outstanding worker’s compensation claim, you…
Read MoreEmployee or Partner: How to Decide When to Make a Key Employee an Owner in Your Business
In most small to mid-sized businesses, the question arises at some point in the life of the business whether to bring in a new or additional partner to the company. Usually the question arises under one of two circumstances: (1) the employee is a dynamic rain-maker and you want to make sure he or she…
Read MoreShould Arbitration Be a Part of Your Contracts?
The cost of legal fees in resolving disputes remains one of the biggest challenges in managing your business. Disputes that are over the minimum you can bring in conciliation court (generally $7,500 – $10,000 depending on the court) and less than $50,000 can net you a legal bill higher than the amount you recover. Are…
Read MoreEffective Employee Discipline (Or How to Fire an Employee Without Getting Sued)
One of the most unpleasant tasks for a business owner is confronting the non-productive or misbehaving employee. Employees are a company’s most valuable resource but they can also be a sinkhole of wasted costs, time and resources if the “rotten apple” isn’t quickly pruned. Here are some approaches to consider when handling the employee in…
Read MoreDo’s and Don’ts for Business Sellers
If you are thinking that about selling your business, there is a long checklist of things to do to get ready for a sale. Here is a list of some of the things you should consider: Packaging Your Business for Sale DO spend time with your accountant to make sure your financials are in acceptable…
Read MoreBuilding Performance Pay Into a Union Contract
One of the biggest criticisms of unions is the concept that they reward the poorest performer while failing to adequately compensate the best performers. Union contracts typically have a one-size fits all pay scale that applies to everyone in particular classification (ex. every mechanic gets paid the same wage). Some union contracts focus on seniority;…
Read MoreDesigning an Effective Compensation Plan that Rewards Performance
I recently negotiated a labor agreement on behalf of an electric cooperative in which all of the compensation was based on achieving certain performance standards. This type of compensation plan is extremely rare for a unionized company and reflects an approach to compensation that can serve as a model for non-union employers as well. The…
Read More