(Note: this content was originally prepared for the Minnesota State Bar Association’s Labor & Employment Law E-Newsletter, Vol. 32) Introduction Several notable decisions in Minnesota state and federal courts regarding restrictive covenants and employment agreements were issued in 2019 and the overall trend continues to be increasing difficulty for plaintiffs to obtain injunctive relief or […]
The Minnesota Corporate Practice of Medicine Doctrine
Can a non-physician own all or part of a for-profit company that employs doctors to provide medical care in Minnesota? Pursuant to Minnesota’s corporate practice of medicine doctrine (“CPMD”) the answer is “no.” This legal doctrine is not found in a statute, regulation or rule. It comes from the common law of decisions by Minnesota […]
Minnesota Supreme Court Appoints V. John Ella as Chair of the Board of Legal Certification
TMB shareholder V. John Ella was appointed as Chair of the Minnesota Board of Legal Certification by Chief Justice Lorie S. Gildea of the Minnesota Supreme Court on January 6, 2020. Mr. Ella has served on the board for the past three years. The Minnesota State Board of Legal Certification oversees the process by which […]
Recent Changes to Minnesota CBD and Hemp Laws
The 2018 Farm Bill and Hemp Congress passed the 2018 Farm Bill on December 11, 2018, and, among other things, legalized hemp. Previously, hemp operated in a legal gray area. The 2014 Farm Bill permitted pilot programs to study the growth, cultivation, or marketing of “industrial hemp” (see 7 U.S.C. § 5940), but hemp remained […]
Recent Changes to Federal Tobacco Laws and Regulations
The Federal Age Limit to Purchase Tobacco Products, Cigarettes Increased to 21: Effective Immediately On December 20, 2019, President Donald J. Trump signed an amendment to the Federal Food, Drug, and Cosmetic Act (FD&C Act), Public Law 116-94, which raises the minimum age for the sale of tobacco products from 18 to 21. The new […]
Minneapolis Wage Theft Ordinance Takes Effect January 1, 2020
The City of Minneapolis enacted an ordinance intended to combat wage theft on August 17, 2019. This is in addition to the State of Minnesota’s wage theft law that took effect on July 1, 2019. The title of both law is misleading. These are not merely laws to punish employers who fail to pay employees. […]
Minimum Salary Requirement for Exempt Employees Increases January 1, 2020
Starting January 1, 2020, the minimum salary for exempt employees under the Federal Labor Standards Act (“FLSA”) increased to $684 per week or $35,568 per year, pursuant to the Final Rule of the U.S. Department of Labor. Pursuant to the rule, executive, administrative, and professional employees must be paid a salary of at least the […]
Corporate Officer may be Personally Liable for Defamation According to Minnesota Supreme Court
The Minnesota Supreme Court has held that a corporate officer may be personally liable for a defamatory statement made by the corporation where he allegedly “participated” in the publication of the statement. DeRosa v. McKenzie, 936 N.W.2d 342 (Minn. 2019). The plaintiff, William DeRosa, was appointed to the board of directors of Dakota Plains Holdings, […]
Back-Dated Non-Compete Ancillary to New Employment Does Not Require Independent Consideration
The Minnesota Court of Appeals, in Wells Fargo Insurance Services USA Inc. v. Galioto, A19-0175, 2019 WL 4409414 (Minn. Ct. App. Sept. 16, 2019), determined that a restrictive covenant ancillary to the defendant-employee’s offer of new employment did not require independent consideration, despite being retroactively dated. The Court of Appeals reversed the district court’s grant […]
How to Resolve a Non-Compete Dispute in Minnesota
The increasing use of non-compete agreements is choking the hiring process for many companies. But employers recruiting an otherwise perfect job candidate who is subject to a non-compete should not panic. Nor should the employer simply ignore the non-compete. Employers need to work calmly through the situation. Anecdotal evidence suggests that roughly nine out of […]
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