The year 2024 brought a host of significant changes to business and employment laws throughout the Upper Midwest, leaving many professionals anxious about what lies ahead with the expected change in national leadership in early 2025. These updates Legislation affects businesses and their employees in many ways, presenting challenges and opportunities for strategic compliance and adaptation.
Karen Grandstrand, a shareholder at Fredrikson & Byron in Minneapolis and a nationally recognized authority on banking regulatory matters, mergers and acquisitions, and financial industry consulting, shared her perspective on the current business law environment.
/ Richard Fleischman Photography
“The biggest change I’ve seen is simply the unprecedented number of new laws and regulations and the number of court cases that question the legality and enforceability of those laws and regulations. Change and uncertainty are the enemies of business; to thrive, business needs stability and security,” she said.
Pregnant Workers Fairness Act
Among the most impactful recent changes is the implementation of the Pregnant Worker Fairness Act (PWFA), which took effect in December 2023. The PWFA bridges a critical gap between protections provided under the Americans with Disabilities Act (ADA). and the unique needs associated with pregnancy. This act requires employers to provide reasonable accommodations for recognized limitations related to pregnancy, childbirth, and related medical conditions.
/ Britta Trygstad
“In April 2024, the US Equal Employment Opportunity Commission (EEOC) issued final rules clarifying the application of the PWFA,” explained MacKenzie Hertz, an employment and labor law attorney at Vogel Law in Fargo, North Dakota. “These rules have raised some questions, particularly about the scope of conditions covered by the PWFA. The EEOC’s interpretation has been broad, including conditions such as menstruation, infertility treatments, miscarriage, and abortion, all of which are related to pregnancy and childbirth.
However, this broad interpretation is not universally accepted. The Attorney General of North Dakota, for example, has opposed the inclusion of abortion as a condition requiring workplace accommodation under the PWFA. These challenges may lead to further legal debate and adjustments to the scope of the act in the future.
Sickness Earned and Safe Time in Minnesota
In Minnesota, an important change for employers and employees in 2024 was the expansion of the Sick and Safe Time (ESST) law. This provision gives employees paid, job-protected leave for various qualifying reasons, including personal or family illness, weather-related closures, and public health emergencies. Employees accrue one hour of EST for every 30 hours worked, up to a maximum of 48 hours per year.
A significant amendment to the ESST Act in May 2024 added loss to the list of qualifying grounds for leave. Additionally, Minnesota Governor Tim Walz introduced a provision requiring employers with paid time off (PTO) policies that exceed ESST minimums to allow employees to use their PTO as protected ESST for illness or injury personal. This expansion underscores the state’s commitment to support workers during challenging times.
Corporate Transparency Act
The Corporate Transparency Act (CTA), effective January 1, 2024, introduced new compliance requirements for businesses to report their Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN). Businesses established before 2024 had until January 1, 2025 to comply, while those formed in 2024 and beyond must report within 90 days.
This legislation aims to combat money laundering and financial crimes by increasing transparency about the individuals behind corporate entities.
Lisa K. Cagle, a business and employment law attorney at Gunderson, Palmer, Nelson & Ashmore in Rapid City, South Dakota, highlighted the international pressures driving the act’s implementation.
“When they investigate a business, they want to be able to get the BOI and find out who the owners are and the key people behind the business,” Cagle explained.
Although there is speculation that changes in national leadership could soften or delay these requirements, Cagle believes the act is unlikely to be repealed, given its alignment with global anti-corruption initiatives.
Despite the intent of the law, challenges have emerged. A federal district court in Texas issued a temporary injunction against the CTA in December 2024, citing concerns about its implementation timeline. These legal proceedings may affect compliance timelines and implementation strategies in the coming year.
Artificial intelligence in the workplace
Artificial intelligence (AI) continues to reshape industries, including the legal profession and broader business operations. While initially met with resistance, AI is now being embraced as a tool for efficiency and innovation.
AnnaLisa Hamann, a junior law associate at Pemberton Law in Detroit Lakes, Minnesota, discussed the evolution of attitudes toward AI.
/ Photo by Jennifer Guenther
“I see law practice eager to use AI to help with efficiency, but sometimes it feels like it takes the humanity out of the job,” Hamann said. “There are still a lot of issues to solve with AI, and I think it should be used as a tool rather than the main driver of your work.”
Hertz echoed this sentiment, pointing to recent guidance from the US Department of Labor on the use of AI.
“Business leaders must establish clear AI policies in their workplaces. This includes deciding whether employees are allowed to use AI tools and ensuring that open source programs do not compromise confidential and proprietary information,” Hertz said.
These precautions are essential to harnessing the benefits of AI while mitigating risks.
Impact of Administrative Changes
The impending change in national leadership has brought additional uncertainty. Historically, administrative transitions result in shifts in policy focus and regulatory enforcement.
Grandstrand reflected on this dynamic, noting, “A change in administration usually has two outcomes. First, current government agency staff are slow to respond to pending issues, not knowing whether they will have new leadership and, if so, how that leadership would like them to decide on certain issues. . Second, a change in administration generally results in new leadership in government agencies, which significantly changes what issues they focus on and how.”
The current administration prioritizes employee-friendly policies, while the next party is expected to favor employer interests. These ideological shifts are likely to influence the direction of regulatory enforcement and legislative priorities, requiring careful monitoring by businesses and legal professionals.
Navigating legal trends and resources
Staying informed of these developments is essential for businesses trying to stay relevant and competitive. Several resources are available to help organizations navigate the evolving legal landscape. The Society for Human Resource Management (SHRM) provides comprehensive updates and guidance on employment law changes, while state bar associations in Minnesota, North Dakota, or South Dakota provide localized expertise. For specific advice, consulting with regional law firms or exploring their blogs can provide valuable insight.
As 2025 begins, businesses must remain nimble in adapting to these changes. By leveraging resources, seeking legal advice and proactively addressing new regulations, companies can position themselves for success in a rapidly changing environment.
