.

Tim works with employers to help them comply with the complex regulatory framework that governs employee benefits — from designing executive incentive and deferred compensation plans, to challenging IRS penalties with respect to Forms 1095-C and the ACA and correcting errors under retirement plan, so that a range of employers (including cooperatives, health care entities, and tax-exempt organizations) keep their plans in compliance and their liabilities in check.

Tim Goodman advises employers on the full spectrum of employee benefits and executive compensation, with a particular focus on advising cooperatives, agribusiness companies, hospitals and health care entities, and tax-exempt organizations. Tim goes deep into the tax code and ERISA — helping clients understand not just what the rules require, but what it costs when those rules are missed.

Health plan compliance and risk mitigation is a focus for Tim. Tim advises employers on ever-evolving legal landscape from the No Surprises Act to the Affordable Care Act (ACA), including employer shared responsibility obligations under section 4980H, Form 1095-C reporting, wellness plans, telemedicine arrangements, and employee assistance plans. Tim has assisted numerous clients in responding to IRS penalties under section 4980H and delinquent filings of Forms 1095-C and 1095-B. He helps clients work through the practical consequences of ACA penalties and mandates before regulators come knocking. HIPAA health privacy compliance is another area where Tim regularly works with employers — drafting plan amendments, policies and procedures, and privacy notices to keep health plan administration on the right side of federal requirements. Retirement plan work is a core part of Tim's practice. He helps employers review plan documents and operations, identify and correct errors through the IRS Employee Plans Compliance Resolution System (EPCRS), maintain the tax-qualified status of defined benefit plans, 401(k) plans, and 403(b) plans. He also advises on the deferred compensation rules under section 409A — a technically demanding area where documentation errors can trigger significant tax consequences for employees and employers alike. In addition to section 409A, Tim assists tax-exempt employers with section 457, including preparing 457(b) plans, 457(f) plans, and questions on substantial risk of forfeiture.

For health care entities and tax-exempt organizations, Tim structures executive employment agreements, severance arrangements, deferred compensation plans, and incentive programs. He advises on reasonable compensation requirements under section 4958, sign-on bonuses, and section 4960 excise taxes on excess executive compensation introduced by the Tax Cuts and Jobs Act. Tribal entities also turn to Tim for guidance on ERISA applicability and plan qualification questions unique to their circumstances.

Tim is a frequent speaker at national and regional forums on employee benefits, including the National Conference of Farmer Cooperatives HR Conference, Minnesota CLE conferences, and is a past contributor to the ERISA chapter of the Minnesota Practice Series.

Select Experience

  • Counseled employers on ACA employer shared responsibility obligations under section 4980H, including penalty response strategies and Form 1095-C and Form 1094-C reporting.
  • Advised employers on ACA penalties and excise taxes, including response to penalty assessments under section 4958 of the Internal Revenue Code.
  • Designed and reviewed wellness programs for compliance with HIPAA nondiscrimination rules, EEOC regulations, and other federal requirements.
  • Advised employers on telemedicine arrangements and employee assistance plans in connection with health benefit plan compliance.

Education

  • University of Minnesota Law School (J.D., 1998)
    • magna cum laude
    • Member, Minnesota Law Review
    • Director, National Moot Court
  • University of Minnesota (B.A., 1993)

Professional Affiliations

  • Past Chair, Employee Benefits Section, Minnesota State Bar Association
  • Past President, Minnesota Retirement Benefits Association (Midwest Pension Conference)
  • Past President, Minneapolis Pension Council
  • Member, Minnesota State Bar Association, Employee Benefits Section and Taxation Section
  • Member, Hennepin County Bar Association
  • Past President, Vice-President, Treasurer, Secretary, and 30-Year Member of Board of Directors, of the Minnesota Justice Foundation (a non-profit corporation that promotes pro bono opportunities for law students and fundraises to support clerkships at public interest agencies serving low-income individuals)
  • Past Adjunct Professor, University of Minnesota Law School

Bar Admissions

  • Minnesota

Accolades

  • Best Lawyers in America©, ERISA Law, Minneapolis, 2025-2027
  • Minnesota Monthly, "Top Lawyers in Minnesota," Employee Benefits Law, 2024-2025
  • Dorsey Pro Bono Champion
  • BTI Client Service All-Star Attorneys, 2020
  • MSBA North Star Lawyer

Select Presentations

  • “Paid Leave Panel,” National Conference of Farmer Cooperatives HR Conference, October 2024
  • “Benefits Update,” National Conference of Farmer Cooperatives HR Conference, October 2024
  • “Benefit Plans:  Developments and Best Practices,” Minneapolis Seminar, August 2024
  • “Best Practices for Benefit Plans and Payroll,” North Dakota Seminar, July 2024
  • “Benefit Plan Developments,” North Dakota Seminar, July 2024
  • “Benefit Developments, Opportunities, and Challenges,” National Conference of Farmer Cooperatives HR Conference, October 2023
  • “Employee Leaves:  Mastering the ADA and FMLA,” Fargo Seminar, May 2023
  • “Payroll Stories from the Twilight Zone – Intersection of HR, Benefits, and Compensation,” Fargo Seminar, May 2023
  • “COVID’s Legacy – End of Public Health Emergency and Impact on Employment and Benefits,” Fargo Seminar, May 2023
  • “Health and Welfare Plan Update,” Fargo Seminar, May 2023
  •  “Retirement Plan Update – SECURE ACT 2.0, Investment Guidance, and More,” Fargo Seminar, May 2023
  • “Ethical Considerations for Employee Benefits Attorneys,” Advanced Employee Benefits Workshop, Minnesota CLE, February, 2023 
  • “Benefits Update: Trending Topics and Overview of Developments,” National Conference of Farmer Cooperatives HR Conference, October 2022
  • “The Escalating Challenges of Remote Work,” Minneapolis Seminar, August 2022
  • “Health, Cafeteria, and Fringe Benefit Plan Developments,” Minneapolis seminar, may 2022 
  • “Top 10 List:  Benefit Plans To Dos,” Fargo Seminar, May 2022
  • “Remote Employees:  Tax, Payroll, Licensing, and More,” Fargo Seminar, May 2022
  • “COVID and Reasonable Accommodation,” Fargo Seminar, May 2022
  • “Taxing HR:  Compensation, Constructive Receipt, Section 409A and More,” Fargo Seminar, May 2022
  • "Cybersecurity:  HR and Benefits,” Fargo Seminar, May 2022
  • “Hot Topics,” Fargo Seminar, May 2022
  • “Benefit Plans and State Law Developments,” Minneapolis Seminar, February 2022
  • “Developments in Benefits Law,” National Conference of Farmer Cooperatives HR Conference, October 2021
  • “FSA Questions and Answers,” Minneapolis Seminar, June 2021
  • “What to do with $2.67 Billion Dollars (or Something Less): The Blue Cross Blue Shield Anti-Trust Settlement,” Minneapolis Seminar, June 2021
  • “Health, Cafeteria, and Fringe Benefit Plan Developments,” Minneapolis Seminar, June 2021
  • “At Work with COVID,” Fargo Seminar, May 2021
  • “Benefit Developments,” Fargo Seminar, May 2021
  • “2021 Legislative & Regulatory developments,” Minneapolis Seminar, April 2021
  • “ERISA 101: General Overview – ERISA and the Code, Benefit Claims, and ERISA Litigation,” MSBA Benefits Section, January 2021
  • “Regulators Knocking on Your (Home) Door: Employment and HR Issues Raised by Remote Work,” Minneapolis Seminar, April 2021
  • “Recent Changes in Benefits Law,” National Conference of Farmer Cooperatives HR Conference, October 2020
  • “Retirement Plan Developments & Coronavirus Impact on Plans,” Minneapolis Seminar, September 2020
  • “Coronavirus: Fringe Benefits, EAPs, and More,” Minneapolis Seminar, June 2020
  • “Health Plan Developments,” Minneapolis Seminar, June 2020
  • “Coronavirus: Employment & Benefit Impacts,” Fargo Seminar, May 2020
  • “FFCRA Emergency Leave,” Fargo Seminar, May 2020
  • “Benefits Update,” Fargo Seminar, May 2020
  • “Tax & Benefits Challenges Ahead,” Minneapolis Seminar, April 2020
  • “The SECURE Act,” Minneapolis Seminar, March 2020
  • “Retirement Plan Developments and Updates: New Laws, Regulations, and Guidance, Plus Case Law Developments,” Minneapolis Seminar, November 2019
  • “ERISA, Benefits, and Taxes:  New, Noteworthy, and More,” National Conference of Farmer Cooperatives HR Conference, October 2019
  • “Health Plan Litigation: More Risks and Employer response Planning Ahead for an Effective Defense,” Minneapolis Seminar, June 2019
  • “HR & Benefit development: Mobile Workforce, Marijuana & the Workforce, Parental Leave, DOL & IRS Plan Audits, & More,” Fargo Seminar, May 2019
  • “Cybersecurity: HR & Benefits,” Fargo Seminar, May 2019
  • “Retirement Plans & Benefit Plans Checklist,” Fargo Seminar, May 2019
  • “What’s New and Cutting Edge in the Employee Benefits World,” Minneapolis Seminar, April 2019
  • “Defined Benefit Retirement Plans: Challenges, Changes, and Benefits for Cooperatives,” Farmer Cooperatives Conference, St. Paul Seminar, November 2018
  • “Cybersecurity – It’s Not Only for Protecting Assets,” Midwest Pension Conference, October 2018 
  • “New Tax Law Changes to Affordable Care Act Requirements and Employee Benefits,” National Conference of Farmer Cooperatives HR Conference, October 2018 
  • “HR Hot Topics:  Mobile Workforce Developments, Law Changes, and Agency Actions,” MN CPA, October 2018
  • “Association Health Plans:  The Good (New Guidance), the Complicated (State Regulation), and the Unchanged (MEWAs),” Minnesota CLE, September 2018
  • “Regulators Never Rest:  New Benefit developments and Old Risks to Review,” ISCEBS, August 2018
  • “The New Federal Tax Law: Changes to Benefits, Compensation and Employment Settlements (and Payroll Matters Too),” Minnesota CLE, July 2018
  • “Disability Claims, Leaves and Accommodations Update,” Minneapolis Seminar, June 2018
  • “Fiduciary Liability Concerns,” Fargo Seminar, May 2018
  • “Retirement Plan Operation,” Fargo Seminar, May 2018
  • “Payroll Problems You Do Not Want (But May Have),” Fargo Seminar, May 2018
  • “Benefits Update,” Fargo Seminar, May 2018
  • “Payroll Problems You Do Not Want (But May Have),” Minneapolis Seminar, May 2018 
  • “Benefits Update,” Minnesota Rural Electric Association HR Network, April 2018
  • “Defined Benefit Retirement Plans:  Challenges, Changes, and Benefits for Cooperatives,” National Conference of Farmer Cooperatives Annual Meeting, February 2018
  • “The New Federal Tax Law:  Business Provisions,” Minnesota CLE, February 2018
  • “Health Care Reform Roundtable:  2017 Developments and Looking Ahead,” Minneapolis Seminar, February 2018
  • “Payroll Tax Risks:  Benefits, Bonuses, and Settlements,” Tax Law Institute, Minnesota CLE, November 2017
  • “The Mobile Workforce:  Is Your Company on the Road to Compliance?” Annual Not-For-Profit Conference, MN CPA, October 2017 
  • “What to Know Before Offering Employee Incentives,” Iowa Hospital Association, October 2017
  • “Employee Benefits – Limiting Risks and Exposure,” Agribusiness Interactive Dialogue, August 2017
  • “Health Care, the ACA, and the New Administration:  Changes So Far and Looking Ahead,” National Society of Accountants for Cooperatives Annual Meeting, August 2017
  • “ACA Repeal and Replace:  2017 So Far and Looking Ahead,” Minneapolis Seminar, June 2017
  • “ACA Developments: 2017 So Far and What to Expect,” 2017 Employee Benefits Seminar, Twin Cities Chapter of International Society of Certified Employee Benefit Specialists, May 2017
  • “Affordable Care Act Update,” Employment Law Institute, Minnesota CLE, May 2017
  • “The ACA and the New Administration:  Changes So Far and What to Expect,” Iowa Hospital Association Webinar, May 2017
  • “Employee Agreements:  Offer Letters to Severance Agreements,” Fargo Seminar, May 2017
  • “ACA: Repeal & Replace Developments to Date,” Fargo Seminar, May 2017
  • “Benefits:  Background & Developments,” Fargo Seminar, May 2017
  • “The ACA and the New Administration:  Changes So Far and What to Expect,” National Society of Accountants for Cooperatives Webinar, May 2017
  • “The Times (or Benefits Laws and Regulations) They Are a Changin’,” Minneapolis Seminar, April 2017
  • “Affordable Care Act Update,” Workers Compensation Institute, Minnesota CLE, April 2017
  • “ACA and Benefit Developments:  2017 So Far and What to Expect,” Cooperative Business Issues Conference, Cooperative Network, March 2017 
  • “Practical Guidance to Enhance Human Resource Compliance and Minimize Financial Risk,” Annual Not-For-Profit Conference, MN CPA, October 2016
  • “Giving the Tax Man His Due:  Taxing Employee Benefits, Perks & Awards,”  National Conference of Farmer Cooperatives HR Conference, October 2016
  • “New EEOC Regulations and More:  Is Your Wellness Program Ready for 2017?” Lorman Seminar, September 2016 
  • “Tribal Health Benefits – Sources of and Contracting on Benefits,” Health Law Institute, Minnesota CLE, June 2016
  • “The Gig is Up: Taxes, ACA Penalties, and Employment Law Risks of Contractor Misclassification and Joint Employer Status for Leased Employees,” Minneapolis Seminar, June 2016
  • “Penalties, Liabilities, and Risks: Misclassification of Employees and Joint Employment Consequences,” Employment Law Institute, Minnesota CLE, May 2016 
  • “The Affordable Care Act: Are We There Yet? (Answer: No),” Fargo Seminar, May 2016
  • “Taxing Benefits: Taxing Prizes, Awards, Gifts, Expenses, PTO, and More,” Fargo Seminar, May 2016
  • “Benefits Law Update,” Fargo Seminar, May 2016
  • “Penalties, Liabilities, and Risks: Misclassification of Employees and Joint Employment Consequences,” Fargo Seminar, May 2016
  • “Taxing Benefits: Properly Taxing Fringe Benefits, Gifts, and Paid Leave Plans,” Minnesota Rural Electric Association, April 2016 
  • “The Gig is Up:  Taxes, ACA Penalties, and Employment Law Risks of Contractor Misclassification and Joint Employer Status for Leased Employees,” Minnesota Rural Electric Association, April 2016 
  • “Benefits Check-Up – Preventing Unhealthy Reviews by the IRS, DOL, and EEOC,” Minneapolis Seminar, March 2016
  • “Wellness Program Update and Design,” Advanced Employee Benefits Workshop, Minnesota CLE, February, 2016 
  • “Designing Your Wellness Plan to Avoid Enforcement Action and Litigation Risks,” Lorman Seminar, February 2016
  • “ACA Reporting: Tackling Complex Form 1095-C Situations and Preparing for Form 1094-C,” National Society of Accountants for Cooperatives, February 2016
  • “ACA Reporting:  Are You Ready for Form 1095-C Reporting in January 2016?,” National Society of Accountants for Cooperatives – North Central Chapter, November 2015
  • “ACA Reporting:  Are You Ready for January 2016?,” National Society of Accountants for Cooperatives, November 2015 
  • “ACA Cadillac Tax,” National Conference of Farmer Cooperatives HR Conference, October 2015
  • “ACA Reporting:  Form 1095-C and Employer Shared Responsibility,” National Conference of Farmer Cooperatives HR Conference, October 2015
  • “ACA Reporting:  Preparing for January 2016, Form 1095-C, Form 1094-C, and More,” National Cooperative Business Association, October 2015
  • “Joint Employers, Leased Employees, and Independent Contractors:  Worker Classification Stakes Heat Up,”  Minnesota Society of Human Resource Professionals, October 2015
  • “ACA Cadillac Tax,” Fargo Seminar, September 2015
  • “ACA Reporting:  Form 1095-C and Employer Shared Responsibility,” Fargo Seminar, September 2015
  • “HIPAA Compliance,” North Dakota Rural Electric Cooperatives Office Managers and Accountants Association, September 2015
  • “ACA Cadillac Tax,” North Dakota Rural Electric Cooperatives Office Managers and Accountants Association, September 2015
  • “ACA Points Not to Miss,” North Dakota Rural Electric Cooperatives Office Managers and Accountants Association, September 2015
  • “ACA Reporting:  Form 1095-C,” North Dakota Rural Electric Cooperatives Office Managers and Accountants Association, September 2015
  • “Affordable Care Act:  What is Next?  Deadlines and Developments,” National Society of Accountants for Cooperatives and National Rural Electric Cooperative Association Annual Meeting, August 2015
  • “ACA Employer Shared Responsibility Payment and Tax Reporting,” National Society of Accountants for Cooperatives and National Rural Electric Cooperative Association Annual Meeting, August 2015
  • “Paid Time Off, Awards, Prizes, Gifts, and Turkeys – The Taxing World of Fringe Benefits,” LeadingAge Iowa, June 2015
  • “The ACA: Counting Hours, Court Cases, and Cadillac Taxes (and That is Just the Cs),” Employment Law Institute, Minnesota CLE, May 2015 
  • “Responding to the ACA: Fees, Forms, and Risks,” Business Law Institute, Minnesota CLE, May 2015 
  • “The Affordable Care Act: Checklist of Points Not to Miss,” Fargo Seminar, May 2015 
  • “Retirement Plans: Avoiding Costly Mistakes,” Fargo Seminar, May 2015 
  • “Handbooks: Best Practices,” Fargo Seminar, May 2015 
  • “HIPAA Compliance,” Fargo Seminar, May 2015 
  • “EEOC and DOL Challenges to Wellness Plans,” Fargo Seminar, May 2015 
  • “Responding to the ACA: Fees, Forms, and Risks,” Business Law Institute, Minnesota CLE, May 2015 
  • “Wellness Programs: EEOC Enforcement Actions and Complying with Federal and State Laws,” Lorman Seminar, April 2015 
  • “Challenging Times: NLRB Decisions on Joint Employers, EEOC Action on Wellness Plans, and ACA Risks,” Human Resources Executive Council, March 2015 
  • “Affordable Care Act: Implementation and Challenges (Fees, Forms, and Mandates),” National Council of Farmer Cooperatives Annual Conference, February 2015 
  • “Benefits – Penalties, Costs, and More: 2014 Recap and Looking Ahead to 2015,” Minneapolis Seminar, February 2015 
  • “Wellness Programs: Impact of the New HIPAA Nondiscrimination Regulations and Other Federal Laws and Guidance,” Lorman Seminar, October 2014
  • “Affordable Care Act: Implementation and Challenges,” National Council of Farmer Cooperatives Human Resources Conference, October 2014 
  • “Timeline, Key Dates, and Mandates: ACA Business Application,” Cooperative Network, September 2014 
  • “Affordable Care Act Basics for the Non-Health Law Attorney,” Minnesota CLE, June 2014 
  • “The Affordable Care Act – What You Need to Know,” Employment Law Institute, Minnesota CLE, May 2014 
  • “The Affordable Care Act – What You Need to Know,” Business Law Institute, Minnesota CLE, May 2014 
  • “The Affordable Care Act – Countdown to Employer Taxes and Reporting,” Fargo Seminar, May 2014 
  • “Paid Time Off, Awards, Prizes, Gifts, and Turkeys – The Taxing World of Fringe Benefits,” Fargo Seminar, May 2014 
  • “Wellness Programs: Impact of the New HIPAA Nondiscrimination Regulations and Other Federal Laws and Guidance,” Lorman Seminar, April 2014 
  • “The Affordable Care Act: Tax, Reporting, and Other Provisions Affecting Employer Health Plans,” MSBA Tax Section, April 2014 
  • “The Affordable Care Act – Employer Shared Responsibility (4980H), 90-Day Waiting Period, and Reporting Under 6055 and 6056, Minneapolis Seminar, April 2014 
  • “Employment & Benefits - Review & Preview - A Look Back at 2013 and a Look Ahead to 2014,” Minneapolis Seminar, February 2014 
  • “Overview of Key Provisions Affecting Businesses and Individuals,” Minnesota CLE, January 2014 
  • “The Affordable Care Act – Collective Bargaining Considerations and FLSA Changes,” The 40th Annual Labor & Employment Law Institute, Minnesota CLE, November 2013 
  • “Wellness Programs: Impact of the New HIPAA Nondiscrimination Regulations and Other Federal Laws and Guidance,” Lorman Seminar, October 2013 
  • “DOMA's Demise: Same-Sex Spouses (and Domestic Partners), Employer Benefits, and Taxes,” Lorman Seminar, October 2013 
  • “Health Care Reform for Employers: Are You Prepared for 2014 and Beyond?” Iowa Hospital Association, October 2013 
  • “Top Benefit Concerns for 2013: DOMA, Health Care Reform, and HIPAA,” Minneapolis Seminar, September 2013 
  • “Impact of the Supreme Court’s Decision that DOMA is Unconstitutional: Employer Considerations and Action Steps on Benefits for Same-Sex Spouses,” Iowa Hospital Association, September 2013 
  • “The Supreme Court’s DOMA Decision: What it Means for Employer Benefits for Same-Sex Spouses,” Minneapolis Seminar, August 2013 
  • “HIPAA: Complying with the New Final Regulations and Preparing for Audits,” Agassiz Valley Human Resources Association, May 2013 
  • “Health Care Reform 2013 & 2014: Taxes, Fees, and More Requirements,” Fargo Seminar, May 2013 
  • “HIPAA: Complying with the New Final Regulations and Preparing for Audits,” Fargo Seminar, May 2013 
  • “Avoiding Costly Retirement Plan Mistakes,” Fargo Seminar, May 2013 
  • “Wellness Programs: Recent Regulatory Developments and the Matrix of Federal Laws Governing Efforts to Encourage Better Health,” Lorman Seminar, April 2013 
  • “In-Plan Roth Conversions,” Midwest Pension Conference, April 2013 
  • “Health Care Reform 2013 & 2014: Taxes, Fees, and More Requirements,” Minneapolis Seminar, March 2013 
  • “Health Care Reform Taxes and Fees: Employer Shared Responsibility, Patient-Centered Outcomes Research, and Transition Reinsurance Fees,” Minneapolis Seminar, March 2013 
  • “Same-Sex Marriages, Civil Unions, and Domestic Partnerships – From Benefits to Form W-2,” Lorman Seminar, February 2013 
  • “Labor, Employment, & Benefits Review & Preview: A Look Back at 2012 and a Look Ahead at 2013,” Minneapolis Seminar, February 2013 
  • “Impact of the Affordable Care Act,” Minnesota Closely Held Business Conference, Minnesota CLE, January 2013 
  • “Health Care Reform Update,” LeadingAge of Iowa, Des Moines Seminar, November 2012 
  • “Wellness Programs: Underlying Legal Requirements and Impact Developments,” Lorman Seminar, October 2012 
  • “Health Care Reform: Approaching Deadlines & Decisions – 2012, 2013, and 2014,” Minneapolis Seminar, October 2012 
  • “Health Care Reform Update,” LeadingAge of Iowa, September 2012 
  • “Health Care Reform Update,” Missouri Hospital Association Seminar, September 2012 
  • “Same-Sex Marriages, Civil Unions, and Domestic Partnerships – From Benefits to Form W-2,” Lorman Seminar, August 2012 
  • “Health Care Reform: The Supreme Court – Its Decision (or What We Think It Will Be),” TruSight Seminar, Minneapolis, June 2012 
  • “Wellness Programs: Underlying Legal Requirements and Impact Developments,” TruSight Seminar, Minneapolis, June 2012 
  • “Wellness Programs: Watching the Law While Promoting Health,” Health Law Institute, Minnesota CLE, June 2012 
  • “ERISA and Investment Professionals,” Minneapolis Seminar, June 2012 
  • “Do 401(k) Plans Provide Retirement Income for Life,” MSBA Employee Benefits Section Seminar, May 2012 
  • “Health Care Reform,” Fargo Seminar, May 2012 
  • “High Deductible Health Plans and Health Savings Accounts,” Fargo Seminar, May 2012 
  • “Wellness Programs: Underlying Legal Requirements and Impact Developments,” Lorman Seminar, April 2012 
  • “Debriefing: The Supreme Court Arguments on Health Care Reform,” Minneapolis Seminar, April 2012 
  • “Avoiding Top Retirement Plan Mistakes,” ISCEBS Seminar, Minneapolis, April 2012 

Insights

Client Alert

President’s Program Permitting Deferral of Employees’ 6.2% Social Security Tax for Four Months Presents Complexity and Risk for Employers and Uncertain Benefits for Employees

September 1, 2020

On August 8, 2020, President Trump signed a Presidential Memorandum entitled “Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster,” effective as of September 1, 2020 (the “Memorandum”). Late on Friday, August 28, 2020, in Notice 2020-65 (the “Notice”) the Secretary of Treasury provided the guidance that was directed by the Memorandum. As described in more detail below, the Memorandum and the Notice provide that employers may suspend withholding the employee portion of Social Security payroll taxes for eligible employees with respect to wages paid to them from September 1, 2020, to December 31, 2020, but that the deferred taxes generally must be paid over to the Internal Revenue Service ratably during the period January 1, 2021, to April 30, 2021. Employers are asking: Must employers stop withholding the employee portion of Social Security payroll taxes? Are there risks to employers if they do suspend the withholding of the employee portion of Social Security Taxes? The short answers are: No, employers are not required to suspend withholding (it is optional in the employer’s discretion). Yes, employers are at risk of owing additional amounts if they do suspend withholding; they are liable for any amounts not ultimately collected from the employee (for example, if an employee terminates employment before the amount is withheld from the employee the employer is liable). Based on this, and the complexity of adjusting payroll systems, we expect that many, if not most, employers will decide not to suspend withholding.This update provides more detail on the intent of the Memorandum, a few points to note surrounding the implementation of the Memorandum, and the options for responding to the Memorandum. The Presidential Memorandum On March 13, 2020, the President determined that the COVID-19 pandemic necessitated an emergency declaration under section 501(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121-5207. The President signed the Memorandum pursuant to that emergency declaration and in response to the breakdown in negotiations between Democrats and Republicans over the next phase of COVID-19 stimulus legislation. In the Memorandum, the President instructed the Secretary of the Treasury to use the Secretary’s authority pursuant to 26 U.S.C. 7508A to defer the withholding, deposit, and payment of the employee’s 6.2% Social Security tax on wages (or the Railroad Retirement tax equivalent) paid during the period of September 1, 2020, through December 31, 2020, subject to the conditions that (a) the deferral shall only be available for any bi-weekly payroll period for employees whose gross wages payable during the period are less than $4,000 (or the equivalent threshold amount if employees are paid for different pay periods than bi-weekly periods), and (b) the amounts deferred shall be without penalties, interest, additional amount, or addition to the tax. In providing for deferral of this tax, the President has sought to increase the take-home pay of every eligible worker for the last four months of the calendar year by 6.2%. This, as the Presidential Memorandum states, “will put money directly in the pockets of American workers and generate additional incentives for work and employment, right when the money is needed most.” Notice 2020-65 provides that employers must pay the deferred taxes to the Internal Revenue Service between January 1, 2021 and April 30, 2021, otherwise interest, penalties, and additions to tax will begin to accrue on May 1, 2021 with respect to any unpaid taxes. The Notice provides that employers must withhold and pay the deferred taxes ratably during the four-month “payback” period. The Notice also provides that if necessary, the employer may make “other arrangements” to collect the deferred taxes from employees, such as if the employee has left employment. It is important to note that the four-month payback period equals the four-month deferral period. Thus, roughly speaking at least, and subject to the complications discussed below, an employee who had 6.2% more take-home pay during the deferral period would have their net pay go down by twice that amount during the period the deferred taxes must be paid. Points to Note Regarding the Presidential Memorandum and the Notice First, a deferral of a tax obligation is not the same as forgiveness of, or exemption from, a tax obligation. Eliminating the tax obligation entirely would require Congress to pass legislation that retroactively establishes a tax “holiday” beginning on September 1, 2020. While possible, Congress has not shown an appetite to enact a payroll tax holiday for employees during their previous rounds of negotiation regarding COVID-19 relief bills. Second, the Notice defers the employer’s obligations to pay the portion of the employee’s taxes that is covered under the Memorandum. Neither the Memorandum nor the Notice provides any relief for employers that are unable to recover the deferred taxes through increased withholdings in 2021. Accordingly, if an employee were to terminate employment during the deferral period, or during the payback period before the employer had the opportunity to recover the deferred tax obligation, the employer would still be required to pay the employee’s taxes. Third, neither the Memorandum nor the Notice explicitly requires an employer to take action to discontinue withholdings. Indeed, Treasury Secretary Mnuchin has been widely quoted in numerous press reports as stating that an employer’s decision whether to participate in the four-month deferral program is entirely voluntary. Presumably, absent more explicit guidance, employers will be free to continue withholdings as provided for in statutory law. The decision to alter withholdings comes, for many employers, with an investment in retooling existing payroll systems. An employer may decide that the costs associated with implementing such a change, to decrease withholdings for four months, then to increase withholdings when the payback period begins, then to decrease withholdings back to ordinary levels when the appropriate amount is recovered from the employee, outweigh any short-term benefits to employees offered by the deferred taxes. Possible Approaches for Companies in Light of the Presidential Memorandum Three possible approaches for employers to respond to the Memorandum and Notice present themselves: (1) continue to withhold, (2) adopt the tax deferral pursuant to the Notice, either for all eligible employees or for employees who consent to participate and (3) wait and see. The simplest approach is to continue to withhold. This avoids the need to modify payroll systems and avoids the risk of liability if an employee terminates employment prior to the corrective amount being deducted from employees. It also avoids employees asking why additional amounts are being deducted from their pay during the first four months of 2021. If an employer wishes to adopt the tax deferral, the employer will no longer withhold the 6.2% Social Security tax from eligible employees (or from participating employees if the employer adopts tax deferral only for employees who wish to participate). This will provide an employee with increased cash during the deferral period, but will require a greater withholding during the beginning of 2021 to cover the deferred tax obligation. As mentioned above, the employer will still be obligated to pay the deferred taxes even if they are unable to be recovered from the employee during the payback period. This approach would require adjusting the employer’s payroll systems at least twice. There are further complications to this adjustment if an employee is hired during this period or the employee’s compensation changes during this period (complications in assuring that the correct amount is deducted to replace the amount that would have been deducted). An additional complication is only employees with gross pay less than $4,000 during a bi-weekly payroll period are eligible for the tax deferral for that period. A third approach may be available, but goes against the reason for the tax deferral outlined in the Memorandum (allowing employees to retain more pay during the remainder of 2020). Under the third approach, an employer may decide to take a “wait and see” approach to the Notice. This would mean that the employer continues to withhold the 6.2% of wages from the employee, but it does not remit the payment to the Internal Revenue Service until the payback period. If Congress enacts a payroll tax holiday, the employer may return the money to the employees as appropriate; if no further government action is taken, the employer will remit the withheld wages to the IRS during the payback period. This approach will not provide any extra cash to employees, but it would prevent any adverse consequences to the employees when the deferred tax obligations come due. This approach would require some retooling of the employer’s tax infrastructure, but the employer will not have to alter any systems that are in place to withhold from employees. Under this approach there is no risk to employers that they will be unable to recover deferred tax obligations from employees during the payback period, although there is a cursory suggestion in the Notice that failure to deposit penalties could be imposed as a result of the fact that taxes were, in fact, withheld from employees. For Further Discussion Many employers are receiving questions from employees about the payroll tax deferral provided for in the Memorandum. If you would like assistance in answering these questions or in determining what approach to take in response to the Memorandum and Notice, please contact any one of us or any of the Dorsey attorneys with whom you work.  

Client Alert

DOL and IRS Relief on Deadlines

May 7, 2020

The DOL and IRS have issued relief for employers, participants, and beneficiaries regarding a number of deadlines with respect to employee benefit plans.  This update reviews three recent pieces of guidance that provide relief. Background Section 518 of ERISA (as amended by section 3607 of the CARES Act) provides in the event of a Presidentially declared disaster or a public health emergency, the Secretary of Labor (DOL) may issue guidance suspending deadlines for affected plan administrators, participants, and beneficiaries for a period of up to one year.  In addition, section 7508A of the Internal Revenue Code provides in the event of a Presidentially declared disaster the Secretary of the Treasury may issue guidance suspending deadlines for affected plan administrators, participants, and beneficiaries for a period of up to one year.  In response to the coronavirus pandemic, the agencies have exercised this authority. DOL and IRS Final Regulations DOL and IRS final regulations (published in the federal register on May 4, 2020) suspend several employee benefit plan deadlines for the period from March 1, 2020 until 60 days after the announced end of the National Emergency (the “Outbreak Period”).  Much of the relief is for participants and beneficiaries.  The deadlines then commence (or resume) to run as of that date.  The affected plans and affected deadlines: Health plans – The HIPAA 30- or 60-day special enrollment period. Health plans – The COBRA 60-day election period. Health plans – The COBRA 45-day initial premium payment period. Health plans – The COBRA 30-day grace period for subsequent premiums. Health plans – The COBRA notification date for a qualifying event or disability determination. Health plans – External review:  The request for external review date by which a claimant is to file a request for an external review after receipt of an adverse determination. Health plans – External review:  The date within which a claimant may file information to perfect a request for external review upon a finding that the request was not complete. Health and retirement plans – ERISA claims. Health and retirement plans – ERISA claim appeals. The regulations contain examples that, when combined below, illustrate how COBRA premium payments work under the suspended deadlines.  The examples suppose a terminated participant (suppose terminated as of February 1, 2020) timely elects COBRA and makes the February COBRA premium payment.  Suppose the National Emergency ended April 30, 2020, in which case the suspension period would end June 29, 2020.  The participant is not required to make the COBRA premium payments for March, April, May, or June until July 29, 2020 (rather than the first day of each of these months).  Thus, the 30-day grace period for the payments for these months is July 29, 2020 (30 days after June 29, 2020).  The participant is entitled to coverage under the group health plan until the premium payments are due.  If by July 29, 2020 the participant has only paid two months of premium payments, these are applied to March and April 2020 and the participant is then not covered after April 2020. The regulations are available at: https://www.govinfo.gov/content/pkg/FR-2020-05-04/pdf/2020-09399.pdf. EBSA Disaster Relief Notice 2020-01 The DOL has issued EBSA Notice 2020-01 which provides relief from a number of deadlines. First, the notice provides relief for deadlines related to providing certain required notices or disclosures to participants and beneficiaries during the same Outbreak Period noted above if the employer has acted in good faith in working to provide the notices.  This relief does not mean that plan administrators are not required to provide the notices noted below, but rather that if they are unable to provide them due to the coronavirus.  This relief extends to the following ERISA disclosures: Annual funding notices required by ERISA section 101(f). Summary annual reports (SARs). Summary plan descriptions (SPDs) and summaries of material modifications (SMMs). QDRO notices. Periodic pension benefit statements required by ERISA section 105. General plan notices (such as plan fee disclosures). Qualified default investment alternative (QDIA) notices. Notices of adverse benefit determinations and appeals. Blackout notices. Note that the notice does not provide relief with respect to Form 5500 filings (IRS Notice 2020-23 provides some relief with respect to non-calendar year plans). Second, the notice indicates that the DOL will not take enforcement action in connection with a temporary delay in forwarding elective contributions and loan repayments to a retirement plan trustee during the Outbreak Period, if the failure is solely attributable to the coronavirus outbreak. Again, employers and plan administrators should work to forward the elective contributions and loan payments as soon as practicable. The notice ends with the DOL acknowledging that the coronavirus may cause problems with fiduciary compliance.  The DOL indicates it will focus on compliance assistance instead of enforcement during this time.  The notice is available at: https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/plan-administration-and-compliance/disaster-relief/ebsa-disaster-relief-notice-2020-01.pdf. IRS Notice 2020-23 The IRS has issued Notice 2020-23 which also provides relief. Notice 2020-23 extended retirement plan deadlines due on April 1 through July 14 to July 15, 2020, including the following: Plan loan repayments due during the period April 1, 2020 to July 14, 2020. The 60-day window to roll over an eligible rollover distribution received from an eligible retirement plan, so that the participant will have until the later of (i) 60 days after receipt of the distribution or (ii) July 15, 2020 to complete the rollover. The April 15, 2020 deadline for a plan to distribute employee deferrals in excess of the Internal Revenue Code section 402(g) limit (plus associated earnings) for calendar year 2019. The 90-day deadline to elect a permissible withdrawal from an eligible automatic contribution arrangement (EACA) after the date of the employee’s first elective contri¬bution under the EACA. The deadline for restating a retirement plan by the close of its remedial amendment period. Non-calendar year plans may also be able to use the extension with respect to the following deadlines: The 2½-month period after the close of the plan year deadline to distribute excess contributions (ADP testing) and excess aggregate contributions (ACP testing), and related earnings on both, to avoid the 10% excise tax imposed on such excess amounts. The end of the following plan year deadline to correct ADP and ACP test failures by distributing excess contributions and excess aggregate contributions to highly compensated employees. The Form 5500 series and the Form 8955-SSA filing deadline. The notice is at 2020-18 IRB 742 (April 27, 2020), which is available at: https://www.irs.gov/pub/irs-irbs/irb20-18.pdf. Next Steps With all of these extensions, the best course for plan administrators is to continue to comply with the timing requirements for distributing notices and to provide relief to participants with respect to the deadlines if they miss one of the deadlines.  The relief does not require employers to issue a broad-based notice about the suspension of the deadlines or to change forms.  Employers will need to review processes (for example, if an employer in the past sent a participant who had not paid a COBRA premium on time a communication that COBRA would be discontinued for failure to pay premiums within the grace period, the employer needs to modify this practice during the Outbreak Period).  Hopefully, the DOL and IRS will provide additional guidance on implementing the relief. Please contact the attorney you work with at Dorsey with questions and for further assistance. For further updates on the impact of coronavirus (COVID-19), please visit Dorsey's Coronavirus Resource Center.  

Legal Writings

  • Contributing Author, ERISA chapter of Employment Law and Practice, 3d ed., Minnesota Practice Series, West (2005-2017)
  • Author, numerous client updates

Firm Highlights

Insights

Minnesota Consumer-Fraud Enforcement: Disclaimers Won’t Cure Deception, and Penalties Can Add Up

Misleading advertising claims can lead to costly consequences. In State of Minnesota ex rel. Ellison v. Wall & Associates, Inc., No. A25-2064, 2026 WL 3118291 (Minn. App. Oct. 19, 2026), the Minnesota Court of Appeals recently affirmed a bench trial verdict against a tax-relief company and two executives for violations of the Minnesota Consumer Fraud Act (“MCFA”) and the Minnesota Deceptive Trade Practices Act (“MDTPA”). The decision, which affirmed a substantial restitution and civil penalty judgment, underscores the broad power of the Minnesota Attorney General to act against deceptive sales practices. The decision also offers practical lessons for businesses seeking to reduce liability risks in consumer-facing communications. Background Wall & Associates (“W&A”), a Virginia-based tax-relief company, marketed assistance to taxpayers seeking relief from outstanding federal and state tax liabilities, often with offers in compromise—agreements to settle tax liabilities for less than the amount owed. In its extensive advertising campaigns, W&A represented that its average client received a 90% reduction in their tax debt, that it was a local company with Minnesota offices, that it provided legal services, and that it would “Solve ALL Tax Problems.” In reality, W&A’s promises bore little resemblance to what many clients received. Most of W&A’s clients saw just a 9.5% reduction in federal tax debt and 1.2% in state tax debt. W&A had no permanent Minnesota offices. And W&A provided neither legal representation nor assistance with filing tax returns—those services required referrals to separate firms for an additional fee. All the while, W&A clients paid upfront and recurring fees, including during periods when W&A did no work on their cases. Minnesota Attorney General Keith Ellison sued W&A, its founder and owner Ernest Kenneth Wall, and its president and CEO Patrick Mark Yates, alleging violations of, among other laws, the MCFA and the MDTPA. Following a 12-day bench trial, the district court determined that W&A violated the MCFA and MDTPA through its false and embellished advertising. The district court also held Wall and Yates individually liable for those violations because they directed, participated in, and acquiesced in the violations. The district court ordered injunctive relief, $2.7 million in restitution (with Wall and Yates jointly and severally liable for $1.3 million), and civil penalties of $786,517 against W&A, $415,500 against Wall, and $207,750 against Yates. The district court also awarded over $2.5 million in attorneys’ fees and costs to the state. W&A, Wall, and Yates appealed to the Minnesota Court of Appeals, which affirmed the district court’s decision on October 19, 2026. Although W&A, Wall, and Yates challenged the judgment on numerous grounds, several highlights of the decision provide important takeaways for consumer-facing businesses. Individual Reliance Is Not Required for Statutory Liability W&A argued that Attorney General Ellison had to prove a causal nexus between each violation of the MCFA and MDTPA and the injury to a particular consumer to establish liability. In W&A’s view, this required proof that each injured consumer had personally relied on W&A’s false representation. The Court of Appeals rejected this argument based on the MCFA’s and MDTPA’s plain language, which requires no proof of actual deception or confusion by consumers. The Court of Appeals finally pointed to the Minnesota Supreme Court’s decision in State v. Minnesota School of Business, Inc., which held that when a defendant’s misrepresentations are directed at and affected “a broad group of consumers, proof of direct individual reliance is not required to establish a causal nexus between MCFA violations and the harm suffered by consumers.” 935 N.W.2d 124, 135 (Minn. 2019). The Court of Appeals affirmed, however, that a causal nexus is necessary to support an award of damages under the MCFA and MDTPA. In making that determination, district courts look to various factors, including whether the misrepresentations were “longstanding, pervasive, and widespread in communications directed to consumers,” whether the seller intended and understood that consumers would rely on the misrepresentations, and whether the information was of a kind on which consumers would typically rely. The Court of Appeals’ decision continues Minnesota School of Business’s broad interpretation of liability under the MCFA and the MDTPA. Coordinated marketing campaigns to a “broad group of consumers” may expose businesses to MCFA and MDTPA liability without customer-by-customer proof of injury. That said, a causal nexus remains an element of an MCFA and MDTPA claim, and businesses involved in litigation should build a clear record at trial and on appeal showing how each of the relevant factors bears on the causal-nexus inquiry. Contractual Disclaimers Are Not an Automatic Defense to a Misleading Pitch W&A next argued that disclaimers in its client contracts prevented consumers from claiming they had been misled by its advertising. Reiterating that individual reliance is not required under the MCFA and MDTPA, the Court of Appeals held that a contractual disclaimer does not necessarily defeat a claim based on a conflicting oral representation. And on the facts of this case, the Court of Appeals agreed with the district court that W&A’s contractual disclaimers were insufficient given the extensive misrepresentations by W&A and the unequal bargaining power between it and its customers. This holding confirms that contractual disclaimers are not a cure-all for misleading advertising or sales practices. Businesses should review the entire customer journey, including pre-contract representations, as those representations may survive a contractual disclaimer to the contrary. And if faced with litigation, businesses should build a strong record, both at trial and on appeal, showing why any disclaimer is effective in context. The State Has Broad Authority to Seek Restitution W&A also challenged Attorney General Ellison’s authority to seek restitution under the state’s parens patriae authority to protect residents’ collective interests, arguing that injury to only 228 Minnesotans did not affect a sufficiently substantial segment of the population. The Court of Appeals rejected a simple headcount approach, instead explaining that the state had a legitimate interest in protecting residents’ economic well-being as a whole. In any event, the Court of Appeals held that if restitution was not appropriate under the state’s parens patriae authority, then it would still be appropriate under the Attorney General’s enforcement powers under Minn. Stat. § 8.31. The decision reinforces that the broader and more sustained the deceptive advertising, the stronger the case for restitution to protect Minnesotans’ economic interests. Civil Penalties Accrue Per Violation, Not Per Defendant The Court of Appeals finally rejected W&A’s claim that the Attorney General’s enforcement powers under Minn. Stat. § 8.31 permit only civil penalties of up to $25,000 for each defendant. Rather, the Court of Appeals explained that penalties are limited to $25,000 per violation. Multiple violations can therefore produce substantially greater penalties. The Court of Appeals also rejected the argument that restitution made penalties unnecessary: repaying consumers does not eliminate the need to address gains from deceptive conduct and deter future violations. Final Takeaways Align every consumer-facing communication. Broad and extensive marketing campaigns can expose businesses to stronger enforcement standards under the MCFA and MDTPA, making it critical that consumer communications remain accurate and consistent from the first advertisement through the final sale. Plan for layered enforcement exposure. Penalties under the MCFA and MDTPA can add up quickly: W&A, Wall, and Yates ultimately faced more than $6 million in civil penalties, restitution, and attorneys’ fees. The decision continues a line of Minnesota cases recognizing the Attorney General’s broad consumer-protection authority. Details matter. Although the Attorney General’s enforcement power is broad, it is not boundless. As the Court of Appeals explained, issues of causation, the effectiveness of contractual disclaimers, and the availability of restitution and civil penalties all turn on the specific facts of the case. Effective advocacy at trial and on appeal is critical to developing the facts relevant to liability and damages.

Event/Resource

Corporate Counsel Symposium 2026 Materials Hub

Materials Symposium Agenda Sessions 8:30 am - 9:30 am CT Session A: The Corporate Compass: Finding True North When Ethical Duties Conflict Philip Kaplan, Senior Legal Counsel, Howden Re Lucia Suljic, Vice President, Corporate Legal, Canon USA Nicole Stanton, Partner & Deputy General Counsel, Dorsey & Whitney LLP This panel addresses ethical obligations of in-house counsel, including balancing obligations and duties that may conflict with each other. How should a responsible in-house lawyer deal with those challenging situations? Rather than stick to an academic discussion, this panel will revolve around a series of practical scenarios that are designed to be realistic and timely, including situations where counsel is asked to represent both the company and an individual, how and when to disclose uncomfortable facts and inconvenient documents, issues involving changing firms and companies, and multijurisdictional practice. The panel will feature discussion from two experienced in-house lawyers and Dorsey’s Deputy General Counsel. Session B: Managing Rapid Regulatory Change in International Trade and Cross-Border Investment Nathan Brower, Executive Vice President, General Counsel, Nature’s Sunshine Greg Ogunsanya, Senior Vice President, General Counsel and Corporate Secretary, H.B. Fuller Kathryn Wood, Senior Vice President & General Counsel, DecoPac, Inc. Dave Townsend and Lawrence Ward, Dorsey & Whitney LLP This program is designed for attorneys advising on cross-border transactions, international trade, regulatory compliance, and corporate governance matters. Panelists will examine recent developments in U.S. trade and investment law and policy, as well as their impact on international collaborations, corporate compliance, and mergers and acquisitions. The discussion will explore how general counsel and in-house legal teams assess and manage evolving trade-related risks within their organizations. Particular focus will be given to developments during the first two years of the second Trump Administration, including changes in tariff policy, tariff refunds, export controls, economic sanctions, and national security reviews of foreign investment. Through a discussion of regulatory trends and practical case studies, attendees will gain a deeper understanding of the legal risks and compliance obligations associated with cross-border business activities, and hear about practical strategies for advising clients and managing compliance obligations in a rapidly changing trade and investment environment. 9:45 am - 10:45 am CT Session A: The Elon Musk Cases: What Tesla and Twitter Can Teach Your Board of Directors Loren Unterseher, Managing Partner, Oxbow Industries, LLC Shulamite White, Chief Legal Officer and Head of People, Motive Technologies Kirsten Schubert, Tom Swigert, and Jonathan Van Horn, Dorsey & Whitney LLP Recent cases involving Elon Musk and his businesses have had significant impact on principles governing board of directors’ fiduciary duties and corporate processes. This panel will examine recent litigation involving Elon Musk, Tesla, and Twitter, and its effects on the law governing the duties of directors and executives, including the executive compensation and director compensation processes, conflicts that may arise when a single executive has control over multiple businesses, and the ramifications of tweets or other public statements by an executive. Session B: All Eyes on DEI: Managing Diversity Efforts Amid Regulatory Scrutiny and Potential Litigation Maggie Dalton, Senior Commercial Attorney, Cargill; Board Co-Chair, Twin Cities Diversity in Practice Laura A. Vannelli, Legal Counsel, Mayo Clinic Susan Lorenc and Jack Sullivan, Dorsey & Whitney LLP The legal and regulatory landscape surrounding diversity, equity, and inclusion (DEI) initiatives has changed dramatically over the past two years. Law firms and legal departments are continuing to grapple with how to recruit, retain, and develop talent from a wide range of personal backgrounds, in a world where previously accepted recruiting and employment practices are facing increased scrutiny and litigation. This program will provide a practical overview of the current legal regime, including recent federal enforcement actions and litigation trends associated with DEI initiatives. Panelists will discuss practical ways in which organizations can pursue and retain legal talent and increase inclusion while minimizing legal, business, and reputational risk. 11:00 am - 12:00 pm CT Session A: Governance in an Age of Increasing Unpredictability James Chosy, Senior Executive Vice President and General Counsel, U.S. Bancorp Todd Hartman, Executive Vice President and Chief Legal and Risk Officer, Best Buy Co., Inc. Alan Rosselot, Associate General Counsel & Assistant Secretary, Delta Air Lines, Inc. Cam Hoang and Robert Rosenbaum, Dorsey & Whitney LLP More than ever, ensuring that boards are well-informed and forward-thinking is critical to a company’s success. Join our panel of corporate governance experts as they share their experiences advising boards through crisis and unpredictable events; capitalizing on, but also checking, disruptive technologies; and positioning the company to succeed in an environment of shifting government priorities. Session B: A Day in the Life of a Trademark, Copyright & Advertising Attorney: A Hypothetical Case Study Alexander Kim, Vice President and General Counsel, Binks Nate Whitaker, Chief Legal Officer and General Counsel, Crumbl Cathy Dahl and Tiffany Shimada, Dorsey & Whitney LLP What issues are companies facing daily while developing rights in intellectual property, protecting those rights, and staying in compliance with myriad potential issues related to advertising, social media, relationships with influencers, and environmental or governmental claims? This panel will feature two in-house counsel who are navigating these issues, utilizing a hypothetical case study, with the support of two Dorsey attorneys helping to develop a roadmap for meeting business objectives and minimizing the risk of claims. 12:00 pm - 1:15 pm CT Keynote Address Dr. Rebecca Heiss, Stress Physiologist Dr. Rebecca Heiss is a stress physiologist, author, and sought-after speaker who helps audiences transform fear and stress into fuel for greater performance and resilience. Her research has been recognized as “transformative” by the National Science Foundation, and she is the author of two books, Springboard and Instinct. Through her Fear(less) message, Rebecca inspires audiences with practical, science-based strategies to train our brains to work for us – not against us – and navigate change and uncertainty with greater confidence.

News

Dorsey & Whitney Advises Beijing Xunzhong on Two Consecutive H Share Placings Raising HK$418.5 Million

International law firm Dorsey & Whitney LLP acted as Hong Kong legal advisors to Beijing Xunzhong Communication Technology Co., Ltd. (“Xunzhong”) as to Hong Kong law in connection with two consecutive placings of new H shares under general mandate (the “First Placing” and the “Second Placing”, respectively, and together, the “Placings”). Xunzhong’s H shares are listed on the Main Board of the Hong Kong Stock Exchange (Stock Code: 2597). Winbull Securities International (Hong Kong) Limited acted as sole overall coordinator and placing agent on both Placings. The First Placing of 11,190,000 new H shares at HK$28.20 each was completed on September 17, 2026, followed by the Second Placing of 3,550,000 new H shares at HK$29.00 each on October 30, 2026. The Placings raised approximately HK$315.56 million and HK$102.95 million in gross proceeds, respectively, or approximately HK$418.51 million in aggregate (approximately HK$415.96 million in aggregate net proceeds). Both Placings were conducted under the same general mandate granted by shareholders at Xunzhong’s 2025 annual general meeting, and each was completed within one week of the signing of its placing agreement. Completing placings in consecutive months is relatively uncommon in the Hong Kong market, and doing so called on the technical depth of Dorsey’s Hong Kong Capital Markets team. Working closely with Xunzhong to understand its business needs and prepare the transaction documents, the team addressed in quick succession the remaining capacity under the general mandate, disclosure of the use of proceeds and the maintenance of Xunzhong’s public float, enabling both Placings to be completed seamlessly. “We are pleased to have advised Xunzhong on both Placings,” said Rachel Han, Partner and Co-Head of Dorsey’s Asia Capital Markets practice. “We appreciate the trust placed in our team and the close collaboration among all parties involved. We look forward to supporting Xunzhong as it continues to execute its growth strategy and pursue future capital markets opportunities.” Xunzhong is principally engaged in cloud-based communications services and enterprise digitalization services in the PRC. As disclosed in its announcements, the net proceeds of the First Placing are allocated to developing Xunzhong’s new computing power operation services business, while those of the Second Placing will be used to integrate model-as-a-service (MaaS) and AI agent capabilities into its existing cloud communications platform-as-a-service (PaaS) platform and software-as-a-service (SaaS) products. Approximately 55% of the net proceeds of the Second Placing will be used for computing power equipment upgrades for the MaaS system, approximately 35% for MaaS, PaaS and SaaS platform upgrades, and approximately 10% for working capital and general corporate purposes. With a single MaaS platform and shared computing power supporting its PaaS and SaaS offerings, Xunzhong intends for its MaaS, PaaS and SaaS capabilities to complement and reinforce one another, and to address customer needs from multiple angles, from embedding AI in customer communications and business workflows to maintaining stable performance at scale and keeping customer data within controlled environments. Partner and Co-Head of Dorsey’s Asia Capital Markets practice Rachel Han and Of Counsel in the Capital Markets and Corporate Compliance group Carlton Ng, along with Associate Kristy Ting, led the Dorsey Hong Kong Capital Markets & Corporate Compliance group in advising Xunzhong on both Placings.

Insights

Observations on the SEC’s 2027 Examination Priorities

The SEC’s Division of Examinations (the “Division”) recently announced its examination priorities (“Exam Priorities”) for fiscal year 2027.1 Although many of the Division’s core areas of focus remain consistent with fiscal year 2026, the 2027 Exam Priorities include notable changes and refinements, which we discuss below, along with other key 2027 examination priorities. Dorsey Observations Renewed focus on economic conflicts of interest. After certain economic-incentive topics received less emphasis in the 2026 Exam Priorities2, the Division has again expressly identified economic conflicts as an examination focus. The 2027 Exam Priorities indicate that the Division will prioritize reviewing advisers’ fiduciary obligations relating to economic conflicts of interest raised by fee rebates, fee and expense calculations, cash management, quid pro quo arrangements, and deposits and withdrawals. Greater emphasis on private-fund practices. Building on the private-fund items in the 2026 Exam Priorities, the 2027 Exam Priorities indicate that the Division will assess private-fund disclosures and controls relating to investment allocations, leverage, affiliated service providers, and fees and expenses. The Division also identified investments in private companies through special purpose vehicles (“SPVs”) and loans provided by private funds and business development companies (“BDCs”) as products the Division will scrutinize. Advisers, particularly private-fund advisers, should evaluate whether their disclosures and compliance programs address these areas. Expanded focus on AI-related cybersecurity risks. While the 2026 Exam Priorities focused on advisers’ use of and representations regarding artificial intelligence (“AI”), the 2027 Exam Priorities specifically highlight AI-enabled cybersecurity threats, including AI-generated phishing and synthetic or “deepfake” voice and video used for social engineering. The shift signals that registrants should consider whether their cybersecurity policies and controls adequately address these evolving threats. New focus on proxy advisory firms. The 2027 Exam Priorities state that the Division will examine advisers that rely on proxy advisory firms, including how those advisers evaluate the firms’ recommendations, assess the bases for those recommendations, identify potential conflicts of interest, and determine whether that reliance satisfies applicable legal obligations. Advisers that rely on proxy advisory firms may wish to consider whether their compliance programs address these areas. Updated focus on Regulation S-P and Regulation S-ID. The 2026 Exam Priorities stated that the Division would engage firms during examinations regarding their progress in preparing incident response programs ahead of the compliance dates for the amendments to Regulation S-P and would examine compliance with the amended rule after those dates. The 2027 Exam Priorities indicate that examinations will focus on whether firms have developed, implemented, and maintained reasonably designed policies and procedures addressing administrative, technical, and physical safeguards to protect customer information and that, in accordance with the amended rule, staff will evaluate response program policies and procedures for unauthorized access to or use of customer information, including customer notification procedures and oversight of service providers. With respect to Regulation S-ID, the 2027 Exam Priorities indicate that examiners will assess whether firms are updating their Identity Theft Prevention Program to address emerging risks, such as those related to AI and stolen credentials. Advisers may wish to consider whether their compliance programs address these areas, as applicable. Summary of Other 2027 Examination Priorities Beyond the developments discussed above, many of the Division’s core examination priorities remain consistent with fiscal year 2026. These include investment adviser fiduciary obligations and compliance programs, examinations of never-examined and recently registered advisers, and cybersecurity and operational resiliency. The Exam Priorities are not exhaustive, and examinations will vary based on each registrant’s business, activities and risks. Advisers should consider the 2027 Exam Priorities in reviewing their compliance programs and preparing for potential examinations, including by: Reviewing risk disclosures and controls. The Division states that, when examining advisers to private funds, it will assess whether investment-related risk disclosures are consistent with fiduciary standards and whether compliance policies, procedures, and controls are designed to address both fund-level and investment-level risks. Reviewing disclosures on allocations, leverage, and affiliated service providers. The 2027 Exam Priorities identify disclosures related to certain investments and allocations, the use of debt and fund-level lines of credit, and the use of affiliated service providers as examples. Confirming the accuracy of fee and expense calculations. The Division states that it will assess the accuracy of fee and expense calculations at both the fund and investment levels, and it identifies fee rebates, cash management, quid pro quo arrangements, deposits, and withdrawals as areas in which economic conflicts of interest may affect the impartiality of advice. Reviewing recommendations of illiquid or hard-to-trade products. The Division states that it will prioritize advisers that recommend products that are difficult to trade, have unusual features, or are illiquid, including loans provided by private funds or BDCs and investments in private companies through SPVs. Confirming that the compliance program is implemented and reviewed. The Division states that it will review compliance program components such as marketing, valuation, and custody, as appropriate, and will typically analyze the annual compliance review. It will also focus on compliance practices when advisers have started advising new asset classes or clients or grown through mergers or acquisitions. 1 SEC Division of Examinations 2027 Examination Priorities. 2 See Dorsey’s Client Alert on the SEC’s fiscal year 2026 exam priorities.