Jaspers, Moriarty & Wetherille, P.A.
Seasoned Legal Judgment For The South Metro Area

July 2014 Archives

New Application for 501(c)(3) Status

It is getting easier to apply to become a 501(c)(3) charity. The IRS has released a new simplified form for charities having less than $250,000 in assets and having gross annual receipts of less than $50,000. This is a change from the standard 26 page which will still be utilized by larger charitable organizations.

Our attorneys can help you prepare the old or new forms, as well as set up the appropriate nonprofit corporation to handle the charity’s affairs. Call 952-445-2817 for more information.

Minimum Wage Increase

As a result of recent legislation, Minnesota’s minimum wage rates will rise according to the following chart:

  • Large employers (gross volume of sales made or business done of $500,000 or more per year) must pay at least $8 an hour
  • Small employers (gross volume of sales made or business done of less than $500,000 per year) must pay at least $6.50 an hour
  • Training wage rate is $6.50 an hour (90-day training rate paid to employees who are younger than 20 years of age)
  • Youth wage rate is at least $6.50 an hour (paid to employees younger than 18 years of age

These rates will rise each August 1 until the general minimum wage $9.50/hr. For many years Minnesota had a minimum wage of $6.15/hr. which was lower than the federal minimum wage of $7.25/hr. As of August 1, low wage workers can expect a raise of $0.75 if they were being paid the federal minimum wage. The law also changed the definition of “large employer” to be businesses with annual gross revenues of $500,000, which is lower than the prior threshold of $625,000. As a result, more businesses will be required to pay the higher wage rates. For more information see http://www.dli.mn.gov/LS/minwage.asp

These changes have  brought about a lot of discussion on the merits of minimum wage increases. They have also highlighted that Minnesota is one of eight states that prohibits so called “tip credits” where a tipped employee, like a waitress, can be paid the tipped employee minimum wage ($2.13) so long as their overall pay (wage + tips) is equal to or greater than the general minimum wage. Many states allow the employer to pay that $2.13/ hr. and apply the tip credit on the remaining $5.12 bringing the employee’s wage to at least $7.25, the federal minimum wage. A thorough examination of state laws on this subject can be found at http://www.dol.gov/whd/state/tipped.htm

Power of Attorney

As of January 1, 2014, there is a new Statutory Short Form Power of Attorney in Minnesota. The new form only affects documents signed after January 1, 2014, so if you have a power of attorney executed before that date, your document is still valid. However moving forward, all newly created Powers of Attorney must use the updated format. This change was made by the Minnesota Legislature in an effort to continue to provide consumer protection to the principal (the person who creates the Power of Attorney). As with the former Short Form Power of Attorney, the principal does not lose the right to control property or money matters; however, your attorney-in-fact can also act for you without your consent. For that reason, it is important to choose someone you trust to act on your behalf. The Legislature has added important notice provisions to the form in hopes that the notices will educate both the principal and the attorney(s)-in-act on the level of power conveyed with executing this document.

In particular, three changes were made to the new form:

1) The first paragraph of the form informs the parties that before executing the document, the parties must read the “Important Notice to Principal,” and the “Important Notice to Attorney(s)-In-Fact.” The Important Notice to Principal on pages four and five of the document is an explanation of the purpose of the document, the powers given to the attorney-in-fact, the duties of the attorney-in-fact, and how the document is terminated. One significant addition to the new form included under the powers section, informs the principal that the Power of Attorney does not give the attorney-in-fact the power to make health care decisions. A separate Health Care Directive that complies with Minnesota Statutes, Chapter 145C is necessary in addition to a Power of Attorney. Additionally, the Notice requires the principal to initial the Notice provision before executing the document. The Notice to the attorney(s)-in-fact outlines the duties and obligations when exercising the authority granted by the Power of Attorney.

2) The First section of the form includes a list of all of the powers of the attorney-in-fact. The Form lists out the potential powers, power (A) through (M), and then the last power listed, part (N), includes all of the powers listed in (A) through (M) above and all other matters, other than health care decisions under a health care directive that complies with Minnesota Statutes, chapter 145C. This addition provides further notice that the Power of Attorney does not give your attorney-in-fact the power to make health care decisions.

3) The Third section of the form now includes a more specific “self-dealing” gift provision. This provision allows the principal to decide whether the attorney(s)-in-fact may make gifts to the attorney(s)-in-fact, or anyone the attorney(s)-in-fact are legally obligated to support. Additionally, there is a second option allowing the principal to limit the gifting power to only the attorney(s)-in-fact specifically named in that section. Minnesota Statutes, section 523.24, subdivision 8, clause (2), limits the annual gift(s) made by attorney(s)-in-fact, or to anyone the attorney(s)-in-fact are legally obligated to support, to an amount, in the aggregate, that does not exceed the federal annual gift tax exclusion amount in the year of the gift, which is currently $14,000.

The newest amendments are meant to provide clarity for both the principal and the attorney(s)-in-fact. The lawyers at Jaspers, Moriarty & Wetherille, P.A. are happy to advise you specifically regarding these changes moving forward.

Can the Police Search My Cell Phone?

Being attorneys who have lived through a cocktail party or two, we often get questions about what an individual's rights are in certain situations. Frequently we have been asked what the police may search if you are arrested. This is a weekly blog, not a legal treatise, so we won't go through the entire analysis but just talk about the recent U.S. Supreme Court decision in Riley v. California. Riley provided some guidelines for what the police may do with your cell phone if you are arrested. Because a smartphone can hold an immense amount of personal information and almost everyone carries some type of cell phone, the Supreme Court acknowledged that a cell phone is not like a wallet, address book, or purse, therefore privacy interests in a cell phone are different. So how does the Riley decision affect you?

How do I find a lawyer?

For many people, lawyers are different from other professionals like dentists, doctors and accountants, because people don't often plan on needing a lawyer. I am often asked how to find a lawyer, and often ask my clients how they found me. Because of the internet, more and more people search for lawyers online; choosing one whose website has information that matches the client's need. In addition to standard Google or Yahoo searches, there are very good professional referral sites like www.findlaw.com that can help you find a lawyer that fits your need.

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