Are Retirement Accounts Protected in a Bankruptcy?
Since the Covid-19 pandemic-era relief programs are slowly expiring, bankruptcy cases are exponentially increasing in Minnesota. For bankruptcy cases, I often get asked, “will my retirement account(s) be exposed to the trustee? Are they protected?” The answer is almost always yes. Under both the state and federal exemptions an ERISA qualified plan is protected in full (barring some last-minute transfers). The plans are protected, not just because they are exempt, but because they never become property of the bankruptcy estate and do not need to be exempted. The language of the ERISA statute essentially creates a spendthrift trust. If you... Read More
Expungement of Eviction Records
In Housing & Redevelopment Authority of Duluth, MN v. Young, the Minnesota Court of Appeals held that district courts have the inherent authority to expunge judicially held eviction records. Young was evicted from an apartment. After his eviction, he became homeless and claimed resulting harm to his mental and physical health. Moreover, while housed, he had received care from a personal-care assistant, which he could no longer have without a home. Instead of seeking expungement of his record under various statutory criteria, he sought expungement under the court’s inherent authority. In holding that the district court had inherent expungement authority,... Read More
Just the FAQs: Minnesota’s Ban on Non-Compete Agreements
Non-Compete Agreements have always been disfavored in the eyes of the law. Now they are banned in Minnesota. Here is what you need to know: What is a Non-Compete Agreement? A Non-Compete Agreement is any agreement that prevents an employee from obtaining certain employment following termination. It includes prohibitions on working in a particular capacity or for particular employers/competitors in a specified geographic region and/or for a specified amount of time. Did Minnesota Ban Non-Compete Agreements? Yes. Employers may no longer enter into Non-Compete Agreements with their employees or independent contractors. When does the ban take effect? The new law... Read More
Just the FAQs: Earned Sick and Safe Time
Effective January 1, 2024, Minnesota employers must provide employees with paid time off, which can be used for certain reasons, such as sickness of the employee or a family member or to seek assistance if the employee or a family member has experienced domestic abuse. Here is an overview of the new law. Who must provide Earned Sick and Safe Time? All Minnesota businesses with one or more employees must provide their employees with Earned Sick and Safe Time. Who is eligible for Earned Sick and Safe Time? Any employee who performs work for at least 80 hours in a... Read More