Employer’s Guide to Form I-9 Compliance and Audit Preparation

02.17.2026 Written by: Business Law Department

While immigration enforcement activity in Minnesota may be shifting, employer obligations under federal Form I-9 requirements remain unchanged. Being prepared for federal immigration inspections allows business owners to respond professionally and confidently if U.S. Immigration & Customs Enforcement (ICE) or Department of Homeland Security (DHS) agents arrive at their workplace. Here are practical steps employers can take to prepare for a potential federal inspection.

1. Before Anyone Arrives: Conduct an Internal Form I-9 Audit

Performing an internal Form I-9 audit is an essential first step in preparing your business for potential federal scrutiny. Federal regulations state you must retain a Form I-9 for each person you hire for three years after the date of hire, or one year after the date employment ends, whichever is later.

A proactive audit helps you identify errors early and reduce compliance risks. An internal audit allows you to:

Review all employee Form I-9s for completeness and accuracy
Ensure supporting documentation is accessible
Verify all forms are stored in a centralized, secure location (separate from individual personnel files)

For more guidance and best practices for conducting an internal audit, visit: https://www.ice.gov/doclib/guidance/i9Guidance.pdf.

2. If ICE or DHS Arrives: Understanding the Inspection Process

If you receive a Notice of Inspection from a federal agency, you generally have three business days to compile all documentation requested in the Notice. After the review, ICE or DHS may issue several types of notices—some administrative, others indicating potential violations.

Important: An employer who knowingly hires or continues to employ unauthorized individuals will be required to cease the unlawful activity immediately. Failure to do so may result in civil fines and/or criminal prosecution.

3. After a Formal Inspection: Maintaining Compliance

Following an inspection, take the following steps to ensure ongoing compliance:

Ensure you receive all Form I-9s and supporting documentation back from federal agents
Be aware of any follow-up interactions or requirements you must fulfill
Verify that your hiring personnel understand how to properly complete Form I-9, verify employee documents, and maintain Form I-9s and supporting documentation in accordance with federal requirements

Regular internal audits and properly maintained Form I-9s are essential to minimizing risk during a federal inspection. If your business wants to proactively address compliance issues or prepare for a potential ICE audit, Henningson & Snoxell can assist with internal audits, compliance reviews, and ongoing support.

Contact our team today to ensure your organization is protected.

Are Your Meal and Rest Break Policies Ready for January 1, 2026?

11.11.2025 Written by: Business Law Department

Effective January 1, 2026, meal and rest break law changes may require Employers to revise their Employee Handbooks. Under the current law, employers were required to provide employees with restroom time and time to eat a meal; however, the amount of time was left to the employer’s discretion. The only additional guidelines are that if the break was less than 20 minutes in duration, it must be counted as hours worked and paid. Any unpaid breaks require the employee to be completely relieved of work duties.

The amendments to the statute now mandate more specific requirements. Employers must provide at least a 15-minute rest break—or enough time to use the nearest convenient restroom, whichever is longer—within each four (4) consecutive hours worked. Additionally, employees working six (6) or more consecutive hours must receive a meal break of at least 30 minutes.

It is important to note that meal and rest break requirements fall under the Minnesota Fair Labor Standards Act (MFLSA), and not all workers meet the definition of “employee” under this law. The MFLSA definition excludes certain agricultural workers, individuals employed in bona fide executive, administrative, or professional capacities, and certain seasonal day camp staff members, to name a few.

With January 1, 2026, approaching quickly, it is important to ensure your employee policies comply with these new amendments. We encourage you to contact us to discuss how these changes affect your current policies and what updates may be necessary.

Minnesota Secure Choice: What Employers Need to Know Before the 2026 Deadline

11.04.2025 Written by: Business Law Department

a jar with coins and a clock demonstrating saving for retirement.

The State of Minnesota enacted the Minnesota Secure Choice Retirement Program (the “Program”) in 2023, with an original launch date of January 1, 2025. While that deadline has passed, the Program’s new implementation date is now set for January 1, 2026.

Who Must Participate?

The Program requires Minnesota employers with five (5) or more employees to participate if they do not currently offer a qualified retirement plan. This requirement applies regardless of whether employees reside in Minnesota.

How the Program Works

The Program is structured as an employee-funded retirement savings initiative:

Contributions are deducted directly from employee paychecks and deposited into individual Roth IRA or traditional IRA accounts.
A Roth IRA will be automatically established for each employee unless they elect pre-tax contributions through a traditional IRA.
The proposed initial contribution rate is 5% of wages, with automatic annual increases of 1% until reaching a maximum of 8%.
Employees may opt out of participation at any time.

Employer Responsibilities

While employers cannot contribute to employee accounts under this Program, they do have specific obligations:

Facilitate payroll deductions and remit contributions to the Program’s service provider.
Bear administrative costs associated with processing and remitting contributions.
Provide Program information and enrollment materials to employees.
Note: There are no setup fees for establishing employee accounts.

Importantly, employers who do not offer a qualifying retirement plan cannot opt out of the Program once their compliance date arrives.

Implementation Timeline

The Program features a phased rollout based on employer size. Employers should note they are not required to implement the Program until their designated compliance date:

https://securechoice.mn.gov/

Next Steps

Even if your compliance date is not immediate, we recommend familiarizing yourself with the Program requirements well in advance. This preparation ensures smooth implementation and gives you adequate time to communicate the new benefit to your employees.

For more information, visit the official Program website: https://securechoice.mn.gov/.

Please contact us with any questions regarding the Program. We will continue to provide updates as additional information becomes available.

Minnesota Paid Family and Medical Leave—Employers’ Next Steps

10.28.2025 Written by: Business Law Department

A woman uses paid leave to take care of her elderly mother.

January 1, 2026, is approaching quickly, and employer obligations under Minnesota Paid Family and Medical Leave continue to ramp up. This new law requires employers to provide employees with access to up to 12 weeks of family leave and 12 weeks of medical leave per 52-week benefit year for qualifying events. However, employees can only utilize a capped 20 weeks if claiming under both family and medical leave.

Critical December Deadline

By December 1, 2025, employers must inform employees of their rights and benefits under Paid Leave through two required actions:

Display the official Paid Leave poster in a conspicuous location in the workplace.
Provide each employee with written notice of their new benefits.

The Minnesota Department of Employment and Economic Development (DEED) has prepared and made available both the required poster and a sample written notice to help employers comply.

Key Compliance Dates and Requirements

December 1, 2025 – Employee Notice Deadline

Inform all employees of their rights and benefits via the workplace poster and individual written notices.
Provide notices in English and in any other language that is the primary language of five (5) or more employees.
IMPORTANT: Employees hired after December 1, 2025, must receive individual notice within 30 days of their start date.
PENALTY WARNING: Failure to provide required notices may result in penalties of $50 per employee for a first violation and $300 per employee for subsequent violations.

January 1, 2026 – Paid Leave Program Launches

Benefits become available to eligible employees.
Employers may begin deducting the employee’s share of premiums from paychecks.

April 30, 2026 – First Premium Payment Due

Employers must remit the first quarterly premium payment.
This payment covers wages paid from January 1, 2026, through March 31, 2026.

We encourage you to reach out with any questions regarding Minnesota Paid Leave compliance. Our team is ready to help make this transition as seamless as possible for your organization.

Minnesota Paid Leave: Equivalent Plans

07.18.2025 Written by: Henningson & Snoxell, Ltd.

Minnesota’s Paid Family and Medical Leave program launches in approximately six months. Employers now have approved alternatives to the state program, with the Minnesota Department of Employment and Economic Development (DEED) publishing its list of compliant private plans and self-insurance options.

Alternative Options to State Plan

Employers have two alternative options to utilizing the state program: self-insure or private insurance carrier plans. Regardless of your choice, you must provide paid family and medical leave that offers the same or better coverage to all employees, costs employees no more than the state program, and provides equal job protection.

Self-Insured Plans

Employers may choose to self-insure for paid family and medical leave, which means you manage paid leave requests and payments directly to employees. However, self-insured plans must be backed by a surety bond to ensure payment capability. The surety bond must be:

Issued by a surety company authorized to do business in Minnesota, and
Equal to your total annual premiums under the state plan.

To calculate the required bond amount, use the DEED Paid Leave calculator: https://mn.gov/deed/paidleave/employers/premiums/index.jsp

Insurance Carrier Plans (Private Plans)

The second option is enrolling in a private plan sold by an approved insurance carrier. DEED has published the list of approved carriers with compliant plans at: https://mn.gov/deed/assets/approved-equivalent-plans_tcm1045-695686.pdf

How to use the alternative plans?

You may choose either alternative at any time, but you must request an Equivalent Plan Substitution through DEED. The process involves setting up required accounts, submitting documentation, and paying a nonrefundable fee (between $250–$1000 depending on employer size).

Even with approved alternative plans, employers remain subject to certain state requirements. You must continue submitting wage detail reports to the state each quarter and comply with all employee notification requirements.

All employees must be informed of their rights and benefits under Paid Leave by December 1, 2025. These notices must be provided in employees’ native language, and workplace posters must be displayed in English and any language spoken by five or more employees. For employees hired after December 1, 2025, you must provide the required notice within 30 days of their start date. DEED will be providing a model notice for Employers to follow. Contact us with any questions regarding Minnesota Paid Leave.

Earned Sick and Safe Time Amendment

04.10.2025 Written by: Henningson & Snoxell, Ltd.

As of January 1, 2025, the Earned Sick and Safe Time (ESST) statute has been amended with new requirements for additional paid leave. When employers offer paid time off (PTO) or other paid leave beyond the minimum ESST hours required by law, this additional leave must comply with all ESST statutory requirements (except for accrual requirements) whenever it is used for ESST-qualifying purposes.

For example, if the employer offers 25 hours of PTO in addition to the minimum requirement of 48 hours per year under ESST law, the employer must provide the same notice, documentation, anti-retaliation, replacement workers, etc. as required under ESST if the additional PTO hours are used for an ESST-qualifying purpose. In other words, whenever an employee uses PTO for an ESST-qualifying purpose, the employer must follow the ESST rules regarding notice, documentation, anti-retaliation, replacement workers, etc. Please contact us if you have any questions about the new amendment.

Minnesota Paid Leave Update: Premium Rates

03.24.2025 Written by: Henningson & Snoxell, Ltd.

Two parents and their baby benefitting from MN Paid Leave.

The Minnesota Paid Family and Medical Leave, effective January 1, 2026, provides paid time off for qualifying employees to take care of themselves or their families, for certain military-related events, or certain personal safety issues (“Paid Leave Program”). Family Leave provides payments and job protection for 1-12 weeks for (a) bonding with a new child, (b) caring for a loved one, (c) managing military leave, and (d) certain personal safety issues. Medical Leave provides payments and job protection for 1-12 weeks for an employee’s own serious health condition. However, the employee can only take a maximum of 20 weeks combined under the Paid Leave Program in one (1) year if the employee qualifies for both medical and family leave.

The Paid Leave Program is funded by both employers and employees by contributing premiums to the Paid Leave Program fund. The premium rate is the percentage of an employee’s wage reported each quarter that will be collected and paid to the Paid Leave Program fund. For most employers, the premium rate is 0.88 percent for 2026. For employers who employ thirty (30) or fewer people and the average employee wage is less than 150% of the statewide average weekly wage (less than $2,058 weekly and approximately $105,000 annually), the premium rate for the first year of the program is 0.66 percent of wages, of which two-thirds (2/3) or (0.44%) may be charged to the employee (“Small Employer”).

Employers must pay at least 0.44% (or 0.22% if a Small Employer) of the premium rate but may choose to pay up to 100% of the premium for their employees. The remaining 0.44% or the remaining amount not paid by the employer shall be deducted from the employee’s pay. The first premium payment is due April 30, 2026, based on the wage detail report from January 1, 2026, to March 31, 2026. Employers may deduct the employee’s portion of the Paid Leave premium from their paychecks beginning January 1, 2026. Moving forward, premium rates will be set annually by July 31 for the following year; however, the premium rate will not exceed the maximum rate set by state law (1.2%). To calculate an estimate of your Minnesota Paid Leave premium contribution, visit: https://info.paidleave.mn.gov/employers/premiums/index.jsp.

When an employee wants to use the benefits of the Paid Leave Program, the employee must apply to the Minnesota Paid Leave Program, which will process their claim and pay benefits out of the state fund. The fund pays a wage replacement rate, which is a percentage of the employee’s income on a progressive scale (i.e., lower-income workers receive a higher percentage of their income, and as the employee earns more, the percentage will decrease). However, benefits will be capped at the state average weekly wage (SAWW), which as of October 1, 2024, was $1,372.00 per week (adjusted annually). The employee has 12 months from the first date of absence under the Paid Leave Program to use the Leave time. If the employee does not use the full 20 weeks of absence in a benefit year, the employee does not get to carry over any unused time or receive any money for the unused time. In the new year, the benefits will renew, and the employee will again have up to 20 weeks of benefits available. In the upcoming months, the Minnesota Department of Employment and Economic Development (DEED) will be releasing an estimated benefits calculator similar to the one at the link above.

We encourage you to begin planning, if you have not already, for this obligation to ensure your business is financially and administratively prepared. Please contact us if you have any questions regarding the Minnesota Paid Leave.

Stay tuned for more information and blogs about Minnesota Paid Leave!

Employer Rights & U.S. Immigration and Customs Enforcement (ICE)

02.26.2025 Written by: Henningson & Snoxell, Ltd.

When U.S. Immigration and Customs Enforcement (ICE) conducts a workplace visit, both the federal agents and the business owners have obligations to ensure that proper law enforcement procedures and business protections are respected. ICE officers must present their credentials, which employers have the right to examine, along with any warrants. While ICE officers may freely enter any “public area” of the business (such as lobbies or parking lots), access to “private areas” (like employee offices or break rooms) requires either employer consent or a judicial warrant signed by a judge. It is crucial to understand that administrative warrants (Form I-200 or I-205) require employer consent for entry into private areas, while judicial warrants provide broader authority.

The interaction between businesses and ICE involves established protocols that balance law enforcement objectives with business operations. The employer has the right to have a business representative present during any employee interviews and the right to contact legal counsel. For Form I-9 Audits, ICE must provide prior notification, and employers have three (3) days to produce the forms. If unauthorized employees are identified during an audit, employers have ten (10) days to become compliant. Throughout any ICE visit, both parties should maintain documentation of the interaction. Business owners should understand that they may exercise their rights while also complying with valid legal obligations, ensuring both proper law enforcement procedures and business protections are respected.

We encourage you to contact us regarding any questions or concerns you may have related to this topic. H&S is here to help you and your business comply with your legal obligations. If an employee requires legal assistance related to an ICE workplace visit, please seek legal assistance from an immigration attorney. If you do not know of one or would like a recommendation, please contact us for a referral.

Looking to hire? Make sure your job posting complies with new MN law.

01.08.2025 Written by: Henningson & Snoxell, Ltd.

Effective January 1, 2025, Minnesota employers with 30 or more employees must include wage ranges and descriptions of any benefits that may be offered, including but not limited to health or retirement benefits, in any job postings, including those posted on Indeed, internally, or through a third-party recruiting agency. The wage range should be a “good faith estimate” of the minimum and maximum annual salary or hourly wage range for the posted position. If the wage range is unknown, employers will still need to list the fixed pay rate for the job. However, the salary range cannot be open-ended. Feel free to contact us to review your job postings before you post to ensure compliance.

Minnesota Paid Leave Program: Update!

10.18.2024 Written by: Henningson & Snoxell, Ltd.

As you may know, Minnesota passed a Paid Leave program in 2023, which goes into effect January 2026. However, beginning in July 2024, most employers are required to begin submitting quarterly wage detail reports to the Paid Leave program; although, no premiums are paid until after the Paid Leave program becomes effective in 2026.

The first wage detail report is due October 31, 2024, and will be based on wages paid between July 1, 2024, and September 30, 2024.

Reporting

Employers must submit wage detail reports every quarter using the Unemployment Insurance (UI) Online system. The wage detail report is the same report required for UI; therefore, employers already utilizing the UI Online system can submit a single wage detail report that will satisfy the reporting requirement for both programs. Your UI accounts for each employee have been automatically converted into a joint UI/Paid Leave account.

For employers with employees not covered by the UI program, you will need to set up a “Paid Leave Only” account (now available) for each employee not covered by UI. Instructions for setting up your account are now available on the Minnesota Paid Leave website and linked below.

Required Information in Wage Detail Report

Employers must include (1) the first and last name, (2) the Social Security number, (3) wages paid during the specified quarterly period, and (4) hours worked for each employee. Again, this is the same information required under the Unemployment Insurance program.

What do employers need to do at this point?

Create Employee Accounts, if necessary: The “Paid Leave Only” accounts are available here. If you do not have an Unemployment Insurance account for each of your employees, you will need to create a Paid Leave Only account for them. If you already have Unemployment Insurance accounts for your employees, you do NOT need to create any new accounts for them. Your quarterly reports will serve both UI and Paid Leave.
Prepare For the Administrative Obligation: We recommend putting in place administrative procedures for quarterly wage detail reports (i.e., who will be responsible for submitting the wage detail report, if not already in place for UI). Failure to submit the required wage detail reports for each employee is subject to a late fee of $10 per employee, with a minimum late fee of $250; administrative service fee of $25 per employee whose information is incomplete; or 2 percent of the total wages for an omitted employee.
Determine Which Employee’s Wage Reports Are Required: Only covered employees in covered employment are required to have reports filed. “Covered employees” include:
1. Employees who performed at least 50 percent of their employment during the past calendar year in the state of Minnesota;
1. Employees who did not perform 50 percent or more of their employment during the past calendar within any single state or Canada, but who resided within Minnesota for at least 50 percent of the past calendar year; and
1. Employees who did not perform 50 percent or more of their employment during the past calendar year within any single state or Canada, but whose employment is controlled and directed from within Minnesota.

“Covered employment” includes any employment, except for (1) self-employed individuals; (2) independent contractors; or (3) seasonal employees.

Also note, while MN employers are required to participate in the Paid Leave program, they may seek an exemption by applying for a private plan exemption beginning in 2025. The private plan must include at least the same rights, protections, and benefits as those provided to employees under the Paid Leave law. However, at this time, employers are still required to file wage reports until an exemption is approved.

We will continue to update you as more information becomes available. Please contact us with any questions about your obligations as an employer under the wage detail reporting requirements or the new Paid Leave program. We are here to help!

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