You complained. Then everything changed. The clearest retaliation case would include an email saying: “Fire her because she complained.”

That email almost never exists.

Under Minnesota law, retaliation occurs when an employer penalizes an employee for reporting a suspected legal violation (Minnesota Whistleblower Act, Minn. Stat. § 181.932) or for opposing discrimination (Minnesota Human Rights Act, Minn. Stat. § 363A). Protection is not limited to termination.

What Is Retaliation Under Minnesota Law?

Retaliation usually arrives disguised as ordinary management. An employee raises a concern. The employer says it takes the concern seriously. Then, over the following days or weeks, the workplace begins to change.

A supervisor who previously praised the employee’s work becomes sharply critical. Meetings disappear from the employee’s calendar. Minor mistakes suddenly become disciplinary issues. The employee is excluded from decisions, reassigned undesirable work, placed on a performance improvement plan, or told that a “reorganization” has eliminated the position.

Each event may be presented as unrelated to the complaint. But retaliation cases are rarely about one event viewed in isolation. They are about the sequence: what the workplace looked like before the complaint, what changed afterward, who made the decisions, and whether the employer’s explanations hold up under scrutiny.

Minnesota employees may have protection under two important statutes: the Minnesota Whistleblower Act and the Minnesota Human Rights Act.

The Minnesota Whistleblower Act

The Minnesota Whistleblower Act, Minn. Stat. § 181.932, protects employees who, in good faith, report an actual, suspected, or planned violation of federal or state law, common law, or a rule adopted pursuant to law. The report may be made internally to the employer. An employee does not necessarily need to report the concern to a government agency or law-enforcement official before receiving protection.

The Act also protects certain employees who participate in a government investigation or who refuse an employer’s order to perform an act they have an objective factual basis to believe would violate the law—provided they tell the employer that they are refusing for that reason.

A protected “report” may be verbal, written, or electronic. It may concern suspected unlawful conduct by the employer or by a third party. The statute’s good-faith requirement does not mean the employee must prove the legal violation before speaking up. But the report must genuinely concern conduct that could violate the law, and it cannot be knowingly false or made with reckless disregard for the truth.

That distinction matters. Complaining that a decision is unfair, unwise, unethical, or inconsistent with company policy does not automatically invoke the Whistleblower Act. The substance of the complaint must implicate an actual, suspected, or planned legal violation.

Employees do not need to write like lawyers. They ordinarily do not need to identify the correct statute by name. But the communication should make reasonably clear what conduct is being reported and why the employee believes it may be unlawful.

The Minnesota Human Rights Act

The Minnesota Human Rights Act, Minn. Stat. § 363A, addresses a more specific category of protected activity.

The MHRA prohibits intentional reprisal against a person because that person opposed a practice forbidden by the Act or filed a charge, testified, assisted, or participated in an investigation, proceeding, or hearing under the Act.

In the employment context, that commonly includes complaints about discrimination, discriminatory harassment, or other unlawful treatment based on protected characteristics such as race, color, creed, religion, national origin, sex, gender identity, disability, sexual orientation, marital status, age, or status with regard to public assistance.

Again, the substance matters more than legal terminology. An employee does not necessarily need to write “I am asserting my rights under the Minnesota Human Rights Act.” But a complaint about generic unfairness, favoritism, personality conflicts, or bullying may not be enough. The communication should connect the objection to discrimination, harassment, accommodation rights, or another practice prohibited by the MHRA.

The Minnesota Whistleblower Act and the Minnesota Human Rights Act are therefore related, but they are not interchangeable. Depending on what an employee reported, one statute may apply, both may apply, or neither may apply.

What Counts as Retaliation Under Minnesota Law?

Many employees assume they do not have a retaliation claim unless they are fired. Minnesota law is broader than that.

The Whistleblower Act prohibits an employer from discharging, disciplining, penalizing, interfering with, threatening, restraining, coercing, retaliating against, or discriminating against an employee with respect to compensation, terms, conditions, location, or privileges of employment.

The statute defines “penalize” as conduct that might dissuade a reasonable employee from making or supporting a report. That definition expressly includes certain post-termination conduct and conduct undertaken for the benefit of a third party.

The MHRA likewise states that reprisal includes intimidation, retaliation, or harassment. It identifies examples such as departing from customary employment practices, transferring an employee to a lesser position, reducing job security, or informing another employer that the employee engaged in protected activity.

  • A sudden disciplinary record after years of positive performance;
  • Heightened scrutiny that is not applied to similarly situated employees;
  • Removal of responsibilities, accounts, clients, or decision-making authority;
  • Exclusion from meetings, communications, training, or advancement opportunities;
  • An undesirable schedule, location, territory, or assignment;
  • A demotion, pay reduction, suspension, or performance improvement plan;
  • A hostile internal investigation;
  • Threats concerning future employment or professional reputation;
  • A negative reference or interference with another job opportunity; or
  • Termination presented as a restructuring, reduction in force, or performance decision.

Not every unwelcome change is retaliation. Employers remain free to make legitimate business decisions and address genuine performance or misconduct concerns. The question is whether the protected complaint caused or influenced what happened next.

The Before-and-After Evidence

Retaliation is usually proved through circumstantial evidence. The employer rarely admits its motive. Instead, the evidence is found in the differences between the workplace before the complaint and the workplace after it.

What did the employer think of the employee before the complaint?

Performance reviews, compensation decisions, promotions, awards, emails, and routine feedback can establish a baseline. A sudden claim that an employee has long been a serious problem may deserve closer examination when the employer’s own records tell a different story.

Who knew about the complaint?

Timing has limited value if the decision-makers did not know that protected activity occurred. Identifying who received the complaint, who discussed it, and when the relevant managers learned about it can be critical.

An employer cannot avoid scrutiny merely by assigning the final decision to someone who did not personally receive the complaint. The investigation may need to examine who supplied the information, recommended the action, selected the employee for discipline, or shaped the decision.

Did the standards suddenly change?

An employee may be accused of conduct that was previously accepted, routinely overlooked, or committed by others without consequence. A policy may be interpreted strictly for the complaining employee but flexibly for everyone else.

That does not automatically prove retaliation. But selective enforcement can be important evidence.

Was the investigation designed to learn the truth?

A legitimate investigation generally seeks relevant information before reaching a conclusion. Warning signs may include interviewing only witnesses who support management, ignoring documents that contradict the accusation, refusing to hear the employee’s explanation, mischaracterizing what witnesses said, or expanding the investigation until some basis for discipline is found.

A flawed investigation is not necessarily unlawful. But an investigation that appears designed to justify a predetermined result may support an inference of retaliation.

Did the employer’s explanation change?

The first explanation often matters most.

An employer may initially identify one reason for discipline or termination, only to add new reasons after the decision is challenged. Later explanations may be more detailed, more serious, or materially different from what the employee was originally told.

There may be innocent reasons for additional detail. But shifting, inconsistent, or newly created explanations can raise questions about whether the stated reason is the real one.

Timing Matters, but It Is Not the Whole Case

A short period between the complaint and the adverse action can be significant. But timing is usually most persuasive when combined with other evidence: a strong prior record, sudden criticism, departure from normal procedures, selective enforcement, a one-sided investigation, or explanations that do not match the documents.

The same is true when retaliation unfolds gradually. Some employers do not act immediately. Instead, they begin constructing a record before taking the final action, such as issuing warnings, assigning impossible goals, documenting minor issues, or removing support.

That is why the entire chronology matters. The relevant question is not simply, “How many days passed?” It is, “What began happening after the employer learned about the complaint?”

A Protected Complaint Is Not Immunity from Discipline

Employees sometimes misunderstand retaliation law as creating permanent protection from criticism or termination. It does not.

An employee who reports unlawful conduct may still be disciplined for legitimate reasons. Likewise, an employer does not automatically violate the law merely because it takes action after receiving a complaint.

But an employer cannot use ordinary management tools as a cover for retaliation.

Virtually every employer accused of retaliation will identify a supposedly legitimate reason for its decision. The existence of an articulated reason does not end the analysis. The important questions are whether the reason is supported by the contemporaneous evidence, whether it was applied consistently, whether the investigation was genuine, and whether the employer actually relied on that reason when it acted.

What Should an Employee Do When the Workplace Changes?

An employee who suspects retaliation should avoid reacting impulsively. The most useful steps are often practical and evidence-focused.


Create a chronology:
 Record when the underlying events occurred, when each complaint was made, who received it, what was said, and what changed afterward.


Preserve records lawfully:
 Relevant materials may include performance reviews, disciplinary documents, compensation records, emails, text messages, policies, job descriptions, meeting invitations, and communications concerning the complaint. Employees should not take privileged, trade-secret, customer, patient, or other confidential information they are not entitled to possess.


Track who knew what and when:
 Identify who received the complaint, who participated in discussions, and who made or influenced later decisions.


Keep communications factual:
 Exaggeration, speculation, and accusations that cannot be supported may distract from a legitimate concern. Clear descriptions of conduct, dates, witnesses, and documents are usually more useful than legal labels.


Seek advice promptly:
 The MHRA generally requires a civil action or administrative charge to be filed within one year after the discriminatory practice occurred. Other potentially applicable laws may impose different deadlines.

Minnesota law also gives an involuntarily terminated employee a short opportunity to request a written explanation. The employee may make the request within 15 working days after termination, and the employer must provide the truthful reason in writing within ten working days after receiving the request.

Remedies for Retaliation

The remedies available depend on the statute and the facts.

Under the Minnesota Whistleblower Act, an injured employee may seek damages, costs and disbursements, reasonable attorney’s fees, and appropriate injunctive or equitable relief. A court may also order reinstatement, back pay, restoration of lost service credit, compensatory damages, or expungement of adverse employment records.

The Minnesota Human Rights Act authorizes compensatory damages, including damages for mental anguish or suffering, in an amount up to three times the actual damages sustained. It may also permit punitive damages, attorneys’ fees, back pay, reinstatement, and other appropriate equitable relief.

The Complaint Is Often the Turning Point

Employees experiencing retaliation frequently describe the same basic pattern:

“I raised a concern. They said they would investigate. Then everything changed.”

That change does not automatically establish a legal claim. But it should not be dismissed simply because the employer has given each development a neutral-sounding label.

Retaliation law exists because punishment for speaking up is rarely announced openly. The evidence is usually found in the chronology, the changed treatment, the decision-making process, and the gap between the employer’s explanation and what the documents actually show.

When the workplace changes after an employee reports suspected illegality or opposes discrimination, the law looks beyond labels. It asks what really happened, and why.

Get Justice With Halunen Law

If you believe you’ve been retaliated against in the workplace, contact us to speak with an Intake Specialist about your unique situation. Your Intake Specialist will be your first point of contact and may refer you for a free consultation. Halunen Law exists to help protect the rights of people like you and to ensure you receive fair treatment.

Josh (1)
A Partner at Halunen Law, Joshua Newville is a tenacious attorney and skilled civil rights advocate. He handles high-profile cases on behalf of the firm, has won victories at the Minnesota Supreme Court and the U.S. Court of Appeals and he has secured millions of dollars for his clients. Learn more about Joshua Newville.

This article provides general information and is not legal advice. The application of Minnesota law depends on the specific facts and circumstances of each matter.

“We’re all familiar with that ubiquitous mantra, “If you see something, say something.” We usually hear that in the context of reporting suspicious or criminal activity in public — an unattended package left in a subway station, a person menacing or threatening others, or similar potential dangers.

But when employees discover their employers’ potentially dubious, unethical, or illegal conduct, there’s no 911 to call and no nearby police officer to flag down. Instead, those brave individuals who see something wrong at work and feel compelled to report and expose such misconduct — whistleblowers — face complicated choices and put themselves, their careers, and their reputations at risk.

That’s why it’s critical for potential whistleblowers to act thoughtfully, carefully, and deliberately before calling out their employers’ illegal activities. Doing so may optimize the possibility that the employer will change its conduct, but it may also be necessary to protect the whistleblower from the blowback that may come from their employers. Care also must be taken to preserve their right to recover compensation under any applicable federal or state law that rewards whistleblowers.

If you’re aware of illegal or wrongful conduct by your employer and are considering blowing the whistle, the most important thing you can do is meet with an experienced whistleblower attorney before doing so. A lawyer can inform you of your rights, advise you of actions to take, protect you from retaliation, and, in some instances, put you in a position to reap financial rewards for doing the right thing.

What Type of Conduct Do Whistleblowers Report?

A wide range of corporate activities can be the subject of a whistleblower claim. That’s partly because many laws and regulations govern the conduct of businesses in every sector of the economy. Consequently, companies can violate the law in countless ways.

Violations of an expansive range of laws and regulations can be the subject of a whistleblower claim, including:

  • Employment discrimination
  • Violations of health and safety laws
  • Government contracting and procurement fraud, including cybersecurity fraud
  • Defrauding Medicare, Medicaid, and related health care programs, including seeking reimbursement for unnecessary or unperformed procedures or improper medical coding and billing
  • Healthcare misconduct involving violations of the Anti-Kickback Statute and Stark Law (also called the “physician self-referral law”)
  • Financial, securities, and investment fraud
  • Tax fraud and evasion
  • Bank fraud
  • Customs fraud
  • Environmental and wildlife violations

What Evidence Is Needed for Whistleblowing?

Contacting a whistleblower lawyer as soon as possible after you discover and before you report illegal conduct is a wise first step. Here are other steps you should consider taking:

Gather Evidence

If you’ve learned about illegal or wrongful conduct by your employer, it’s likely because of something you saw, read, or heard at work. This is the evidence you’ll need to show authorities to support your assertions, and it’s the evidence they’ll use to take action against your employer that could lead to
money in your pocket.

Preserve emails, documents, photographs, or other materials that reflect or reveal the wrongdoing. Take notes of any conversations or incidents that relate to the conduct. It’s important to do so discreetly, not on work time or on work devices, and in a manner that doesn’t raise suspicion, violate company policies, or run afoul of the law. For example, you should only save documents to which you have access in the normal course of your work responsibilities. Your lawyer can advise you on how best to collect and preserve evidence.

Follow Internal Reporting Procedures

Many companies and organizations have established policies, procedures, and mechanisms through which employees can raise their concerns about their employers’ conduct. This may involve reporting to your immediate supervisor, the human resources department, or a designated ethics hotline or inbox. Ensure you maintain a record of all communications and actions taken.

Look for and Document Retaliation

In a perfect world, reporting illegal conduct through internal channels will result in your employer taking action to address the issue, including stopping the misconduct and holding wrongdoers accountable. But it’s not a perfect world. Employers often have less-charitable responses to a complaining or whistleblowing employee, and supervisors or other employees implicated in the misconduct can react viscerally to accusations made against them. An employer may engage in retaliation against you for your actions. This can take many forms beyond termination or demotion and can include receiving less-desirable assignments; being excluded from projects or meetings; receiving negative performance reviews; suffering harassment or abuse; and being placed on an unfair performance improvement plan.

Employer retaliation against whistleblowers is illegal under many circumstances, and employees subject to retaliation may have claims for compensation against their employers. Document instances of retaliation or any negative changes in your employment situation and share that information with your attorney.

Are Retaliation Claims Very Rare?

Unfortunately, whistleblower retaliation claims are not rare. However, employer retaliation against whistleblowers is illegal under many circumstances, and employees subject to retaliation may have claims for compensation against their employers. Document instances of retaliation or any negative changes in your employment situation and share that information with your attorney.

Work With Your Attorney to Report Misconduct to the Proper Authorities

When your attorney believes the time is right, he or she can help you report your employer’s illegal acts to the appropriate authorities. Many different whistleblower laws and programs apply to specific types of activities and industries. Your lawyer will know where to submit your information and how to do so in a way that makes you eligible to potentially recover a percentage of any amounts the government recoups from your employer, based on the information you provided. These rewards can be substantial. In fiscal year 2022 alone, whistleblowers who reported illegal activity under the False Claims Act (FCA) received $488 million. The FCA is only one of the many laws and programs through which whistleblowers can obtain compensation for their brave acts.

If you feel you’ve experienced illegal action in your workplace, we encourage you to submit a Case Review Form to our firm. After completing the form, one of our Intake Specialists will be your first point of contact. Well-versed in our firm’s practice areas, this professional will review your submitted form and direct your inquiry accordingly. There is no charge for this confidential process. And, if we take your case, as a contingency-based law firm, there is no cost unless we win.

We’re here to help you navigate your lawful rights and ensure you get the treatment you deserve. Together, we can hold employers accountable and create a fairer workplace for everyone.

Susan (1)
A Partner at Halunen Law, Susan Coler represents whistleblowers who challenge illegal corporate conduct, particularly fraud against the government. As an MSBA Labor and Employment Law Specialist, Susan has also brought successful retaliation claims in connection with FCA/qui tam cases and as stand-alone actions. Susan has consistently been named a “Super Lawyer” since 2008 and has been named several times on the Super Lawyer’s list of Top 50 Women Attorneys in Minnesota.

Halunen Law represented one of the class plaintiffs and was a class counsel in the case, Russo et al. v. Walgreens, alleging overcharges for certain prescription drugs in excess of Walgreens’ savings club prices. The class action settled for $100 million after being litigated for seven years, and is under the supervision of the federal district court in Illinois.

The federal district court in Illinois, which is overseeing the case, issued a recent order recently directing the processing of claims. In the next several months, the claims will be reviewed, deficiencies will be addressed, and payments will be issued.

If you have filed a claim, additional information is available at Walgreens Savings Club Settlement.

“Halunen Law is pleased that the case has settled, said class action attorney Susan Coler. “It has been a long haul, but Walgreens has ceased the challenged conduct and the persistence and patience of the class representatives has brought results for millions of Walgreen’s customers who filed claims.”

 

Susan (1)A Partner at Halunen Law, Susan Coler is a member of the Halunen Law False Claims Act (FCA)/Whistleblower Practice Group. She represents whistleblowers who challenge illegal corporate conduct, particularly fraud against the government. Susan represented a relator in an FCA claim against Abbott Laboratories that resulted in a civil settlement of $800 million (total settlement of $1.5 billion), the fifth-largest civil healthcare recovery ever achieved under the FCA. As an MSBA Labor and Employment Law Specialist, Susan has also brought successful retaliation claims in connection with FCA/qui tam cases and as stand-alone actions.

Halunen Law Logo Commentary

UnitedHealth Group, the nation’s largest health insurer, has confirmed it is under federal investigation by the U.S. Department of Justice for its Medicare Advantage practices. This follows growing scrutiny from media outlets like The Wall Street Journal and STAT News, which raised serious concerns about the company’s billing and care management practices. The DOJ is reportedly investigating possible criminal fraud, and UnitedHealth has now acknowledged receiving both civil and criminal investigative requests.

This is just the latest in a series of crises for UnitedHealth, which has seen the abrupt resignation of top executives, mounting public backlash over care denials, and a massive drop in shareholder value—losing over $277 billion in market capitalization in the past year.

At Halunen Law, we have deep experience representing whistleblowers who expose fraud against the government, including violations under the False Claims Act and retaliation under federal and state whistleblower protection laws. These types of Medicare fraud investigations are precisely the cases we are committed to pursuing.

If you are a current or former employee of UnitedHealth Group or one of its subsidiaries and have information about unlawful conduct—such as inflated billing codes, improper patient care denials, or other fraudulent Medicare practices—or if you’ve experienced retaliation for speaking up, contact Halunen Law immediately. Our attorneys can advise you confidentially about your rights, the risks, and how to proceed safely.

Your courage can make a difference—and we are here to help.

Read CNN’s coverage: UnitedHealth confirms federal investigation into its Medicare practices

In what is believed to be the largest ERISA settlement stemming from poorly performing investment options in a 401(k) plan, UnitedHealth Group will pay $69 million in a class action case filed by plaintiff and whistleblower Kim Snyder. A former employee, Snyder claimed UnitedHealth Group failed to remove investments from a poorly performing Wells Fargo 401(k) plan. In so doing, employees invested in the fund lost hundreds of millions of dollars in potential retirement savings, Snyder alleged. Minnesota District Court Judge John Tunnheim gave final approval to the class settlement on June 12, 2025.

Sanford Heisler Sharp McKnight was the lead counsel on the case. Minneapolis-based Halunen Law attorney Susan Coler served as local counsel, providing legal advice and assistance. The case alleged that UnitedHealth had violated its fiduciary duties under ERISA by prudently and disloyally selecting, retaining, and monitoring the poorly performing Wells Fargo Target Fund Suite.

“This outcome is impressive and gratifying,” said Coler. “Snyder and the legal team worked tirelessly for four years to achieve this result, which will offer a direct financial remedy to class members who have been impacted. It was a pleasure to work with them and contribute to that result.”

Read more about this historic case settlement:

Press Release: Sanford Heisler Sharp McKnight Wins Final Approval of Record-Breaking $69 Million Settlement on Behalf of More Than 35,000 Retirement Plan Beneficiaries 

Minnesota Star Tribune: Judge approves $69M class action settlement in UnitedHealth 401(k) litigation

Minnesota Star Tribune: UnitedHealth Group agrees to $69 million settlement over low-performing retirement plan options.

401k Specialist: UnitedHealth Group Agrees to Historic $69 Million 401(k) ERISA Settlement

USA Herald -UnitedHealth Settles $60M ERISA Suit

National Association of Plan Advisors: ‘Historic’ Excessive Fee Suit Strikes $69 Million Settlement

Law360 – UnitedHealth to pay $69M in Suit Over 401(k) Fund Roster

Susan (1)A Partner at Halunen Law, Susan Coler is a member of the Halunen Law False Claims Act (FCA)/Whistleblower Practice Group. She represents whistleblowers who challenge illegal corporate conduct, particularly fraud against the government. Susan represented a relator in an FCA claim against Abbott Laboratories that resulted in a civil settlement of $800 million (total settlement of $1.5 billion), the fifth-largest civil healthcare recovery ever achieved under the FCA. As an MSBA Labor and Employment Law Specialist, Susan has also brought successful retaliation claims in connection with FCA/qui tam cases and as stand-alone actions.

In the March 12 article “Dellinger Exit Deepens OSC Politicization as Workers LoseAlly,” Bloomberg Law writer Khorri Atkinson examines the Trump administration’s termination, without explanation, of Special Counsel Hampton Dellinger as part of the president’s broader effort to seize control of independent agencies, and the potentially wide-ranging impact of these actions.

Asked to provide his perspective on Dellinger’s departure and decision to drop his case, Halunen Law attorney Paul Schinner offered that unless the Supreme Court intervenes in a similar dispute and clarifies the president’s authority to dismiss the head or a member of an independent federal agency, Dellinger’s firing may have set a precedent that allows future presidents to exert greater control over these agencies. He added, “It will be interesting what they do; whether they’ll replace Dellinger with someone more aligned with” the purported objectives of Elon Musk and his Department of Government
Efficiency to weed out fraud and wasteful spending, “or dismantle the Office of Special Counsel because they think it’s unnecessary.”

Read the full article, “Dellinger Exit Deepens OSC Politicization as Workers Lose Ally”

Paul Schinner

As a member of Halunen Law’s legal team, attorney Paul Schinner offers years of experience in employment law, with keen legal insights, hard-nosed negotiation skills, and a proven record of obtaining successful outcomes. Paul also has extensive experience navigating False Claims Act litigation and has represented whistleblower clients in these complex federal cases across a range of industries.

In his “Whistleblowing 101” article, Halunen Law employment attorney Paul Schinner offers key steps for people to consider when blowing the whistle on illegal workplace activity. These include knowing the laws protecting whistleblowers, taking tangible actions to build your case, and seeing the value of having an experienced employment law attorney at the helm. Worth a read, this article offers valuable guidance for potential whistleblowers.

Read the full article as published in the Legal Reader (PDF)

Paul SchinnerAs a member of Halunen Law’s legal team, attorney Paul Schinner offers years of experience in employment law, with keen legal insights, hard-nosed negotiation skills, and a proven record of obtaining successful outcomes. Paul also has extensive experience navigating False Claims Act litigation and has represented whistleblower clients in these complex federal cases across a range of industries.

 

With a successful practice in employment law and False Claims Act cases, Halunen Law attorney Paul Schinner

represents whistleblowers who speak up against illegal actions in their workplace. His extensive experience provides real-world insights for his recently published article, “Whistleblower 101: Protection Laws to Know Before You Speak.” Readers will find a useful guide to the statutes that protect whistleblowers along with steps and strategies to consider before blowing the whistle.

Read the full article as published in Attorney at Law Magazine (PDF)

Paul SchinnerAs a member of Halunen Law’s legal team, attorney Paul Schinner offers years of experience in employment law, with keen legal insights, hard-nosed negotiation skills, and a proven record of obtaining successful outcomes. Paul also has extensive experience navigating False Claims Act litigation and has represented whistleblower clients in these complex federal cases across a range of industries.

In a recent Bloomberg Law article, “Trump’s DEI Order Creates Murky Fraud Risks for Contractors,” reporter Khorri Atkinson explores a number of issues including the possibility that the False Claims Act could be used against federal contractors if they do not comply with Trump’s recent executive order prohibiting diversity, equity and inclusion initiatives.

Halunen Law attorney Paul Schinner weighs in, offering the order is “riddled with ambiguities” and has “no definition section. What jumped out is that the order uses buzzwords that Republicans have used to attack DEI efforts,” and states “the FCA could potentially be litigants preferred legal route.” However, he adds, “It’s very possible to maintain some form of intentional effort to boost inclusivity without running afoul” of the new administration’s order and the law.”

Read the full article as it appeared in Bloomberg Law (PDF)

Paul SchinnerAs a member of Halunen Law’s legal team, attorney Paul Schinner offers years of experience in employment law, with keen legal insights, hard-nosed negotiation skills, and a proven record of obtaining successful outcomes. Paul also has extensive experience navigating False Claims Act litigation and has represented whistleblower clients in these complex federal cases across a range of industries.

 

Misclassification in Trucking, Courier, and Delivery Services
Employee misclassification is pervasive across the United States, particularly in the trucking, courier services, and delivery industries. Employers frequently classify workers as “independent contractors” (ICs) rather than employees. This allows companies to save millions annually by sidestepping their legal obligations to pay withholding taxes, provide workers’ compensation and unemployment insurance, pay overtime, and reimburse vehicle maintenance and fuel. It also makes it easier for companies to avoid paying benefits like health insurance and providing rest breaks. This practice denies workers the rights and protections they deserve and means less income and no access to critical protections like workers’ compensation or unemployment insurance.

Amazon Flex Drivers: Misclassification and Employee Status
Amazon Flex drivers have become a focal point in the national conversation on worker misclassification. Flex drivers use their personal vehicles to deliver packages, operating under Amazon’s control and policies. While Amazon classifies them as independent contractors, a growing body of legal and agency decisions have concluded otherwise.

Consistent with this trend, lawsuits have been filed, for example, in states such as California, Massachusetts, and Washington, where Amazon Flex drivers have alleged misclassification and sought damages for:

  • Unpaid Overtime: Drivers frequently work more than 40 hours per week without receiving overtime pay.
  • Denied Rest Breaks: In states like California, drivers allege Amazon violates laws requiring meal and rest breaks.
  • Unemployment and Workers’ Compensation Coverage: Misclassified drivers are excluded from these critical safety nets.
  • Expense Reimbursements: Flex drivers must cover the cost of fuel, vehicle maintenance, tolls, and other work-related expenses, which drastically reduces their earnings.

Other companies facing independent contractor issues, like Amazon, include FedEx, OnTrac, USPak, and Swift.

Good News for Minnesota Workers: New Protections Under Minnesota Law

Minnesota recently enacted one of the best, if not the best, statutes in the country protecting workers from being misclassified as independent contractors.  Effective July 1, 2024, Minnesota Statute § 181.722 substantially strengthened protections for Minnesota workers in industries where misclassification is prevalent, including trucking, courier, and delivery services.  The statute prohibits anyone from entering into an independent contractor agreement that misrepresents the true nature of the parties’ relationship. It also imposes a per-violation penalty of up to $10,000 for those seeking to cut costs by entering into illegal independent contractor agreements with potential workers.

Key Changes to the Law:

  1. Stricter Classification Standards: Employers must now prove that the independent contractors they employ are genuinely independent. That is, they must demonstrate that the independent contractor operates a business separate from the employer and free from the employer’s control.
  2. Expanded Enforcement: The Minnesota Department of Labor and Industry (DLI) now has enhanced authority to investigate and enforce misclassification claims. Workers can also bring private lawsuits to recover damages and injunctive relief, meaning actual changes in how the employer treats its workers.
  3. Increased Penalties: Employers who misclassify workers face substantial penalties, including liability for unpaid wages, benefits, and tax contributions.
  4. Transparency in Contracts: Independent contractor agreements must clearly outline the nature of the relationship and provide detailed disclosures about the worker’s rights and obligations.

These changes empower workers and create significant risks for employers who continue to misclassify employees.

Why This Matters

Misclassification deprives workers of basic rights and protections while allowing companies to cut costs unfairly. Minnesota’s strengthened law represents a critical step in holding employers accountable. Truck drivers, couriers, and delivery workers—especially gig workers like Amazon Flex drivers—are now in a stronger position to fight for fair treatment.

What You Can Do

If you’re a truck driver, courier, or delivery worker working under an independent contractor arrangement—whether you work for Amazon Flex or another company—it’s vital to evaluate whether your classification status is legal. Signs of misclassification include:

  • Being required to follow strict schedules and routes set by the company.
  • Covering all work-related expenses, such as vehicle maintenance, fuel, and insurance.
  • Being denied access to benefits like overtime pay, health insurance, and workers’ compensation.
  • Having a contract that labels you as an IC but closely resembles an employment relationship.

Our legal team has extensive experience litigating high-profile misclassification cases, including cases against industry giants like FedEx. If you suspect you’ve been misclassified, we can help you fight for the wages, benefits, and protections you deserve.

Contact Us Today

If you believe you’ve been misclassified, we encourage you to contact our firm. When you call us at 612-605-4098 or submit a Case Review Form, your first point of significant contact will be with one of our Intake Specialists. Well-versed in Halunen Law’s practice areas, these professionals will listen to your concerns or review your Case Review and direct your inquiry accordingly. There is no charge for this confidential process. And, if we take your case, as a contingency-based law firm, there is no cost unless we win.

We’re here to help you navigate your rights under Minnesota law and ensure you get the treatment you deserve. Together, we can hold employers accountable and create a fairer workplace for everyone.

 

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