Month: January 2025

Five Stories That Matter in Michigan This Week – January 31, 2025

  1. Michigan Marihuana Administrative Rules Proposed Changes Available for Review

The Michigan Cannabis Regulatory Agency has published proposed changes to the administrative rules (R 420.1 to R 420.1005). A public hearing on these proposed changes is, according to the CRA, supposed to take place early this year.

Why it Matters: The proposed changes (which are summarized by the CRA here) are extensive and, if enacted, will affect licensing, financial compliance, monitoring, and other important issues.

———

  1. Michigan Senate Still Reviewing Bills on Minimum Wage, Paid Sick Leave

Last week, the Michigan House of Representatives passed HB 4001 and 4002, which addressed the coming changes to the minimum wage law and the Earned Sick Time Act (ESTA), respectively, which are set to go into effect on February 21, 2025. The bills were sent to the Senate for consideration, which at this moment, has yet to act on them.

Why it Matters: This comes in response to a significant Michigan Supreme Court from last summer that reimplemented a citizen initiated law mandating raising minimum wage to $15 by 2028,  phasing out the tipped minimum wage system, and requiring paid sick time for nearly every Michigan worker.

———

  1. Michigan Cannabis Eclipses $10 Billion to Date

Michigan cannabis sales have exceeded $10 billion to date, since the state began selling adult-use marijuana in December 2019. In 2024 alone, the state made over $3 billion in sales of adult-use marijuana.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

———

  1. Governor Whitmer Signs New Law Requiring Businesses to Display Resources Poster for Veterans

This week, Governor Whitmer signed into law a new act, called, “veteran’s employee resources act,” that now requires businesses to display a poster in a conspicuous place that has information related to veterans’ services, such as military/veterans’ affairs, mental health and substance abuse services, and tax benefits.

Why it Matters: This act will go into effect April 2, 2025. Businesses will need to display the proper information poster, or face repercussions if they do not.

———

  1. Corporate Transparency Act Update – U.S. Supreme Court Lifts Nationwide Injunction

Last week, the United States Supreme Court granted the government’s request to lift the nationwide injunction that had been preventing enforcement of the Corporate Transparency Act (“CTA”). However, in response to the Supreme Court’s order, FinCEN has provided the following guidance.

Why it Matters: As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports. Read more.

Related Practice Groups and Professionals 

Cannabis Law | Sean Gallagher
Business & Tax | Robert D. Burgee
Labor, Employment & Civil Rights | David Houston

Five Stories That Matter in Michigan This Week – January 24, 2025

  1. Michigan House Passes Bills on Minimum Wage, Paid Sick Leave

This week, the Michigan House of Representatives passed HB 4001 and 4002, which address the coming changes to the minimum wage law and the Earned Sick Time Act (ESTA), respectively, and which are set to go into effect on February 21, 2025. Now the bills are sent to the Senate for consideration.

Why it Matters: This comes in response to a significant Michigan Supreme Court from last summer that reimplemented a citizen initiated law mandating raising minimum wage to $15 by 2028,  phasing out the tipped minimum wage system, and requiring paid sick time for nearly every Michigan worker.

———

  1. Corporate Transparency Act Update – U.S. Supreme Court Lifts Nationwide Injunction –

On January 23, 2025, the United States Supreme Court granted the government’s request to lift one of the nationwide injunction that had been preventing enforcement of the Corporate Transparency Act (“CTA”). However, due to another similar injunction that was not addressed by the Court, FinCEN has provided the following guidance.

Why it Matters: As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports. Read more.

———

  1. Federal Court Strikes Down 2024 Title IX LGBTQ+ Protections 

A federal judge in Kentucky recently invalidated the Biden administration’s 2024 Title IX regulations that would have expanded protections for LGBTQ+ students nationwide. The ruling found that the U.S. Department of Education exceeded its authority in attempting to broaden Title IX’s scope to include gender identity discrimination.

Why it Matters: While this ruling reverts federal standards back to 2020, Michigan schools must still comply with the state’s Elliott-Larsen Civil Rights Act, which protects students from discrimination based on gender identity, sexual orientation, and gender expression.

———

  1. Michigan Cannabis Exceeds $265 Million in December ‘24

Cannabis sales surpassed $265 million in December, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $264,689,198.93, while medical sales came in at $815,759.74, totaling $265,504,958.67.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

———

  1. Business Education Series: Your Comprehensive Guide to Driving Employee Engagement

The workforce is facing challenges like talent shortages and quiet quitting, making it crucial to attract, engage, and retain employees. With 75% of turnover preventable, employers who create engaging environments focused on essential needs can better retain and attract talent.

Why it Matters: During the January Business Education Series, facilitated by Cheryl Kuch, Senior Consultant, Rehmann, discover what top organizations do to foster engagement and gain best practices to protect your most valuable asset—your people. Hosted at the Lansing Regional Chamber of Commerce. More information.

Related Practice Groups and Professionals 

Labor, Employment & Civil Rights | David Houston
Business & Tax | Robert D. Burgee
Cannabis Law | Sean Gallagher

Corporate Transparency Act Update – U.S. Supreme Court Lifts Nationwide Injunction

UPDATE AS OF JANUARY 24, 2025

In response to the Supreme Court’s Order, FinCEN has provided the following guidance:

On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports. (Emphasis added). https://www.fincen.gov/boi

As a result of this guidance, Reporting Companies are advised to continue monitoring the situation and consult with legal counsel to determine next steps.

The United States Supreme Court today, January 23, 2025, granted the government’s request to lift the nationwide injunction that had been preventing enforcement of the Corporate Transparency Act (“CTA”). This continues a period of ping-ponging uncertainty for businesses and similar entities, the result of which is the restoration of the requirement for many companies (mostly small businesses and related entities) to file reports with the Financial Crimes Enforcement Network (FinCEN) disclosing their beneficial owners.

The injunction, originally issued by a U.S. District Court in Texas on December 5, 2024, had halted the CTA’s reporting requirements that were slated to begin on January 1, 2025. Subsequent conflicting orders from the Fifth Circuit Court of Appeals further complicated the matter and delayed the effective date.

What This Means for Businesses

With the injunction lifted, FinCEN can now enforce the CTA’s reporting requirements. “Reporting companies,” which include most small businesses and similar entities in the United States, must file Beneficial Ownership Information Reports (BOIRs) disclosing information about their beneficial owners.

Key Points for Businesses:

  • Gather Information: Businesses should immediately gather the necessary information about their beneficial owners to prepare for filing.
  • Consult with Counsel: Entities formed after January 1, 2025, that have not yet filed a BOIR should immediately consult with legal counsel, as they are subject to a 30-day filing deadline.
  • Filing Deadlines: FinCEN is expected to announce a new filing deadline for existing entities soon.

The lawyers at Fraser Trebilcock are closely monitoring this situation and will provide updates as they become available. We encourage businesses to contact us with any questions or concerns about complying with the CTA’s reporting requirements.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions.

Robert D. Burgee is an attorney at Fraser Trebilcock with over a decade of experience counseling clients with a focus on corporate structures and compliance, licensing, contracts, regulatory compliance, mergers and acquisitions, and a host of other matters related to the operation of small and medium-sized businesses and non-profits. You can reach him at 517.377.0848 or at bburgee@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – January 17, 2025

  1. Michigan House to Form Committee to Address Tipped Wage and Sick Leave Policies

The Michigan House of Representatives is set to create the Select Committee on Protecting Michigan Employees and Small Businesses, with the intention of addressing upcoming changes to the state’s minimum wage and paid sick leave requirements.

Why it Matters: The committee formation comes in response to a significant Michigan Supreme Court ruling from last summer, which found that the Legislature’s 2018 “adopt and amend” strategy – where they adopted citizen-led initiatives only to substantially weaken them – was unconstitutional. This decision mandated the implementation of the original ballot initiatives, including raising minimum wage to $15 by 2028 and eliminating the tipped minimum wage system, unless new legislative action is taken.

———

  1. Michigan CRA Publishes December ’24 Data: Average Price Decreases

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sale of an ounce of cannabis in December was $69.20, a decrease from $71.80 in November. This is a decrease from December 2023, where the average price was $95.08.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

———

  1. Michigan CRA Files New Formal Complaint Against Adult-Use Marijuana Processor Business

On January 7, 2025, the Michigan Cannabis Regulatory Agency filed a new formal complaint against Sky Labs, LLC, an adult-use marijuana processor, alleging multiple counts of violations ranging from illegally combining marijuana and marijuana product into another marijuana product in addition to not providing the proper certificate of analysis (COA), to handling marijuana product outside of a licensed facility and not registering product into the state’s tracking system.

Why it Matters: The CRA intends to impose fines and/or other sanctions against Sky Labs, LLC, which include suspension, restriction, or revocation, of the business’s license.

———

  1. Business Education Series: Your Comprehensive Guide to Driving Employee Engagement

The workforce is facing challenges like talent shortages and quiet quitting, making it crucial to attract, engage, and retain employees. With 75% of turnover preventable, employers who create engaging environments focused on essential needs can better retain and attract talent.

Why it Matters: During the January Business Education Series, facilitated by Cheryl Kuch, Senior Consultant, Rehmann, discover what top organizations do to foster engagement and gain best practices to protect your most valuable asset—your people. Hosted at the Lansing Regional Chamber of Commerce. More information.

———

  1. 13 Fraser Trebilcock Attorneys Honored by Leading Lawyers for 2025

Thirteen Fraser Trebilcock attorneys have been selected for inclusion in the list of Michigan’s ​Leading Lawyers for 2025, a distinction earned by fewer than five percent of all lawyers licensed to practice law in Michigan.

Why it Matters: Those selected include: H. Kirby Albright, Commercial Litigation; Land Use, Zoning & Condemnation Law; Real Estate Law: Commercial; Michael S. Ashton, Energy Law; Governmental, Municipal, Lobbying & Administrative Law; Public Utilities Law: Gas/Water/Electric; Douglas J. Austin, Land Use, Zoning & Condemnation Law; Real Estate Law: Commercial; Real Estate Law: Finance; Michael E. Cavanaugh, Commercial Litigation; Employment Law: Management; Governmental, Municipal, Lobbying & Administrative Law; Labor Law: Management; Michael P. Donnelly, Commercial Litigation; Jennifer Utter Heston, Energy Law; Governmental, Municipal, Lobbying & Administrative Law; Public Utilities Law: Gas/Water/Electric; David J. Houston, Employment Law: Management; Mark E. Kellogg, Closely & Privately Held Business Law; Tax Law: Individual; Trust, Will & Estate Planning Law; Thaddeus E. Morgan, Commercial Litigation, Construction Law; Melisa M.W. Mysliwiec, Elder Law; Michael H. Perry, Environmental Law; Gary C. Rogers, Bankruptcy & Workout Law: Commercial; Creditor’s Rights/Commercial Collections Law; Marlaine C. Teahan, Trust, Will & Estate Planning Law. Read more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – January 10, 2025

  1. Michigan Minimum Wage Increase Reminder

On January 1, 2025, Michigan’s minimum wage increased from $10.33 to $10.56. On February 21, 2025, it will increase to $12.48. The minimum wage will continue to increase annually and reach $14.97 on February 21, 2028.

Why it Matters: Michigan employers will need to review and adjust their payroll systems, wage scales, and budgets to ensure compliance while considering potential compression issues with existing pay rates for more experienced workers.

———

  1. Michigan House Committee Advances Proposed FOIA Bills

The Michigan House Government Operations Committee recently advanced bills to the House floor that would, among other things, subject the legislature, governor, lieutenant governor and their executive offices the state’s Freedom of Information Act requirements.

Why it Matters: Only Michigan and Massachusetts currently have these types of exemptions in their FOIA laws. While the House Government Operations Committee’s actions keep the bills alive, it’s uncertain whether they will become law.

———

  1. 13 Fraser Trebilcock Attorneys Honored by Leading Lawyers for 2025

Thirteen Fraser Trebilcock attorneys have been selected for inclusion in the list of Michigan’s ​Leading Lawyers for 2025, a distinction earned by fewer than five percent of all lawyers licensed to practice law in Michigan.

Why it Matters: Those selected include: H. Kirby Albright, Commercial Litigation; Land Use, Zoning & Condemnation Law; Real Estate Law: Commercial; Michael S. Ashton, Energy Law; Governmental, Municipal, Lobbying & Administrative Law; Public Utilities Law: Gas/Water/Electric; Douglas J. Austin, Land Use, Zoning & Condemnation Law; Real Estate Law: Commercial; Real Estate Law: Finance; Michael E. Cavanaugh, Commercial Litigation; Employment Law: Management; Governmental, Municipal, Lobbying & Administrative Law; Labor Law: Management; Michael P. Donnelly, Commercial Litigation; Jennifer Utter Heston, Energy Law; Governmental, Municipal, Lobbying & Administrative Law; Public Utilities Law: Gas/Water/Electric; David J. Houston, Employment Law: Management; Mark E. Kellogg, Closely & Privately Held Business Law; Tax Law: Individual; Trust, Will & Estate Planning Law; Thaddeus E. Morgan, Commercial Litigation, Construction Law; Melisa M.W. Mysliwiec, Elder Law; Michael H. Perry, Environmental Law; Gary C. Rogers, Bankruptcy & Workout Law: Commercial; Creditor’s Rights/Commercial Collections Law; Marlaine C. Teahan, Trust, Will & Estate Planning Law. Read more.

———

  1. IRS Announces 2025 Standard Mileage Rates

The IRS announced the 2025 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Beginning on January 1, 2025, the rate for business use is 70 cents per mile, an increase of 3 cents from 2024. However, the mileage rates for vehicles used for other purposes will remain unchanged from 2024.

Why it Matters: Self-employed individuals who operate an automobile for business use, as well as employers who reimburse employees who use their own vehicles to conduct business, should take note of these changes.

———

  1. FinCEN Petitions Supreme Court to Intervene

After a week and a half of yo-yoing federal court decisions affecting the implementation of the Corporate Transparency Act’s requirement for businesses and other entities to file Beneficial Owner Information Reports, the government has now petitioned the United States Supreme Court to weigh in.

Why it Matters: For now, the reporting requirement is once again “voluntary” per FinCEN’s guidance, but business owners and others are advised to pay close attention, as a decision by the Supreme Court could come swiftly. And if the injunction is lifted, any extension of the filing deadline is expected to be relatively short in light of the government’s arguments in the Application for a Stay and given the fact that FinCEN’s prior extension provided less than two additional weeks, moving the deadline from January 1, 2025, to January 13, 2025. Read more.

Related Practice Groups and Professionals 

Labor, Employment & Civil Rights | David Houston
Business & Tax | Robert D. Burgee

Five Stories That Matter in Michigan This Week – January 3, 2025

  1. FinCEN Petitions Supreme Court to Intervene

After a week and a half of yo-yoing federal court decisions affecting the implementation of the Corporate Transparency Act’s requirement for businesses and other entities to file Beneficial Owner Information Reports, the government has now petitioned the United States Supreme Court to weigh in.

Why it Matters: For now, the reporting requirement is once again “voluntary” per FinCEN’s guidance, but business owners and others are advised to pay close attention, as a decision by the Supreme Court could come swiftly. And if the injunction is lifted, any extension of the filing deadline is expected to be relatively short in light of the government’s arguments in the Application for a Stay and given the fact that FinCEN’s prior extension provided less than two additional weeks, moving the deadline from January 1, 2025, to January 13, 2025. Read more.

———

  1. Court Blocks DOL’s FLSA Salary Threshold Increases Nationwide

A federal district court in Texas recently struck down the Department of Labor’s planned increases to minimum salary requirements for overtime-exempt employees under the FLSA. The ruling invalidates both the July 2024 increase to $43,888 annually and the planned January 2025 increase to $58,656, reverting the federal threshold back to $35,568 per year for employers nationwide.

Why it Matters: The ruling means the lower $35,568 annual salary threshold for determining overtime exemptions for white-collar workers under federal law is again applicable (at least for the time-being). However, employers should continue to monitor potential appeals or new federal rulemaking on this issue.

———

  1. Michigan Cannabis Exceeds $276 Million in November ‘24

Cannabis sales surpassed $276 million in November, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $275,478,600.16, while medical sales came in at $884,669.59, totaling $276,363,269.75.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

———

  1. Michigan to Offer New R&D Tax Credit in 2025

Michigan has approved legislation creating a state income tax credit for qualifying research and development expenses conducted within the state. The credit, established through House Bills 5100 and 5101, will be available to both corporations and pass-through entities beginning January 1, 2025, with qualifying expenses defined according to federal tax standards.

Why it Matters: This new tax incentive provides Michigan businesses with an additional financial benefit for conducting in-state research and development activities, potentially making Michigan more competitive in attracting and retaining innovative companies.

———

  1. Fraser Trebilcock Announces 2025 Board of Directors

The Shareholders of Fraser Trebilcock, one of Michigan’s long-established full-service law firms, have re-elected Thaddeus E. Morgan as President of the firm. Shareholder Ryan K. Kauffman was re-elected to the Board of Directors, where he will serve as Vice President & Treasurer. Shareholder Jared A. Roberts was elected to the Board of Directors, where he will serve as Secretary.

Why it Matters: When it matters in Michigan, we are the trusted advisor for businesses and individuals requiring planning and consulting services, or facing legal and regulatory challenges, and our capabilities extend to wherever clients require counsel. The annual election of the Board of Directors allows Fraser Trebilcock to continue its tradition of exceptional client service, dedicated community involvement and professional excellence. Read more.

Related Practice Groups and Professionals 

Business & Tax | Robert D. Burgee
Labor, Employment & Civil Rights | David Houston
Cannabis Law | Sean Gallagher

FinCEN Petitions Supreme Court to Intervene

After a week and a half of yo-yoing federal court decisions affecting the implementation of the Corporate Transparency Act’s requirement for businesses and other entities to file Beneficial Owner Information Reports, the government has now petitioned the United States Supreme Court to weigh in. The Application for a Stay of the Injunction comes on the heels of a pair of conflicting decisions from two different panels of the Fifth Circuit Court of Appeals; the first which had (temporarily) revived the reporting requirement, and the second that upheld the lower court’s injunction against the implementation of the reporting requirement.

For now, the reporting requirement is once again “voluntary” per FinCEN’s guidance, but business owners and others are advised to pay close attention, as a decision by the Supreme Court could come swiftly. And if the injunction is lifted, any extension of the filing deadline is expected to be relatively short in light of the government’s arguments in the Application for a Stay and given the fact that FinCEN’s prior extension provided less than two additional weeks, moving the deadline from January 1, 2025, to January 13, 2025.

The lawyers at Fraser Trebilcock will continue to keep a close eye on these and other developments.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions.

Robert D. Burgee is an attorney at Fraser Trebilcock with over a decade of experience counseling clients with a focus on corporate structures and compliance, licensing, contracts, regulatory compliance, mergers and acquisitions, and a host of other matters related to the operation of small and medium-sized businesses and non-profits. You can reach him at 517.377.0848 or at bburgee@fraserlawfirm.com.