Bob Halagan - Halagan Law Firm, LTD.

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 will be getting a letter or a lawsuit from a lawyer claiming retaliation. Worker’s compensation claims are a big industry. Oftentimes, there are very close connections between physicians, care providers, claims handlers, rehabilitation specialists and…

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 stays around; or (2) the owner or owners are beginning to look for an exit and want to find their successor who can maybe take them out of the business at some point. The Rainmaker…

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 there less costly, quicker and more effective solutions? In the past I’ve written about ways to control your lawyer and your legal fees:  Leveraging Attorney’s Fees to Avoid Litigation; Is There a Lawsuit in Your…

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 need of counseling or discipline. Why can’t I just fire the bum? Minnesota, like most states, still employ the “at-will” rule of employment law, meaning that an employer can terminate an employee at any time…

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 form.  Qualified buyers will want to know they can rely upon your financial snapshot and you should expect them to want to dig into the detail of those finances. DON’T think you can hide all…

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; stating that if you are there for X number of years you get paid a certain amount more than less senior employees.  Both of these approaches ignore actual performance or skills and fail to reward…

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 Cooperative was coming off of an 18 month wage freeze and felt it had some ability and need to fund a wage increase for its staff.  The union had just been elected as the representative…

Recently I was involved in a business deal where the principals met to negotiate the terms and then brought the lawyers to the table to “document” the deal.  Sounds like the cheapest way to handle a transaction, right?  Not quite. The lawyers saw issues the principals didn’t anticipate and a significant amount of time was spent going back and forth over issues necessary to fill in the blanks on the deal the principals had negotiated.  It wasn’t until the parties arrived at closing that it became clear that one party’s…

The starting point for an employment relationship in Minnesota is “at-will,” meaning that an employer is free to terminate an employment relationship at any time for any reason (as long as it’s not an unlawful reason) and an employee is free to quit their job and go to work elsewhere, at any time and for any reason, even directly in competition with their former employer.  Those terms can change however if the parties agree that the relationship should be different than that.  The best practice for modifying the employment relationship…

As we crawl out of the wreckage of this last recession and look around, we can see the world will in fact survive.  While we have lost many businesses in our communities in the past two years, the survivors are likely to have significant opportunities as our economy recovers.  If you are one of the survivors and are looking to sell your business when the economy gets stronger, here are a few things you should be doing right now in order to increase your sales price in the future. Take…

One of the worst predicaments for an employer is to face a lawsuit from a former employee alleging a wrongful termination.  Once an employee has found a lawyer willing to take his case, an employer will need to be prepared for a new budget item:  legal fees and settlement costs which can easily exceed $50,000.  Employment lawsuits are depressingly unpleasant for employers. You are faced with paying more money to an employee you’ve already determined you don’t want, or at best, paying an attorney to defend you in the hope…

Some of the most challenging and complex decisions a business owner can make involve when and how to sell a part of their business to an employee.  The decision to sell a portion of your business to an employee may be motivated by the desire to raise capital, or as an effort to retain a key employee or as a part of succession plan to begin transitioning out of a business.  Whatever the motivation, as an owner, you should make sure you consider whether bringing in a partner is the…