Five Stories That Matter in Michigan This Week – July 7, 2023

  1. NLRB’s Atlanta Opera Ruling Imposes Stricter Independent Contractor Test on Employers

On June 13, 2023, the National Labor Relations Board (“NLRB”) ruled in the closely watched The Atlanta Opera, Inc. case, restoring the multifactor common-law framework the NLRB established in 2014 for worker classification.

Why it Matters: The ruling is significant because it establishes the test for classifying workers as either employees or independent contractors under the National Labor Relations Act (“NLRA”); the test—a return to pre-2019 standards—makes it harder to classify workers as independent contractors, and independent contractors are excluded from the NLRA’s protections for labor organizing activities. Learn more on the subject.

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  1. New Federal Law Expands Rights for Pregnant and Nursing Mothers in the Workplace

The federal Pregnant Workers Fairness Act (“PWFA”) took effect on June 27, 2023, and requires employers with 15 or more employees to provide reasonable accommodations to pregnant workers, such as providing more frequent bathroom breaks.

Why it Matters: The PUMP Act requires employers to provide a private lactation space and break times during work for nursing mothers. Contact a Fraser Trebilcock employment law attorney with questions or for assistance.

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  1. U.S. Supreme Court Rules on Affirmative Action

The United States Supreme Court struck down affirmative action in a ruling recently, when they ruled against the admissions plans of two colleges, Harvard and the University of North Carolina.

Why it Matters: The ruling is causing higher education institutions to review their own admissions process in seeking out a diverse student body. Contact your Higher Education Fraser Trebilcock attorney for any questions.

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  1. $82 Billion State Budget Approved for Fiscal Year 2024

Last week, the Michigan State Legislature with some bipartisan support approved the $82 billion state budget that will take effect later this year on October 1.

Why it Matters: Looking into the budget, the Department of Natural Resources (DNR) will receive more than $36 million more in funding than last year, the public universities located across the state will receive $2.2 billion, including $482 million from the School Aid Fund under the School Bus budget bill. Community colleges will receive $544 million from the School Aid Fund.

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  1. Michigan’s New Distracted Driving Law Took Effect June 30

In an effort to mitigate the risks associated with distracted driving, Michigan recently enacted legislation meant to deter and punish instances of distracted driving. Michigan is the 26th state in the United States to pass a hands-free driving law, signifying the growing national consensus around the importance of focused driving.

Why it Matters: The new law, which took effect June 30, 2023, makes holding and using a mobile electronic device while operating a motor vehicle illegal. Learn more about the new law from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | Dave Houston
Higher Education | Ryan Kauffman
Business & Tax | Ed Castellani
Insurance Law | Gary Rogers

Five Stories That Matter in Michigan This Week – June 30, 2023

  1. Michigan’s New Distracted Driving Law Takes Effect June 30

In an effort to mitigate the risks associated with distracted driving, Michigan recently enacted legislation meant to deter and punish instances of distracted driving. Michigan is the 26th state in the United States to pass a hands-free driving law, signifying the growing national consensus around the importance of focused driving.

Why it Matters: The new law, which takes effect June 30, 2023, makes holding and using a mobile electronic device while operating a motor vehicle illegal. Learn more about the new law from your Fraser Trebilcock attorney.

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  1. Gain Peace of Mind Through Life’s Toughest Challenges

Family law involves deeply personal and often emotional issues – that can be as complicated as they are sensitive. A strong family law attorney understands the judicial processes and procedures, while also handling your case with care and compassion.

Why it Matters: Fraser Trebilcock attorney Paula C. Spicer has over a decade of experience assisting clients in family law matters. Paula compassionately and efficiently works with clients to help them understand their options and navigate the often challenging and emotional situations. Learn more how she may be able to assist.

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  1. 6th Circuit Decision Clarifies Rights of Schools to Discipline Students for Off-Campus Speech and Conduct

In a case that involved a student creating a fake Instagram account impersonating a teacher, and the student being suspended by his school, the U.S. Court of Appeals for the Sixth Circuit clarified that schools can regulate student speech—even off-campus speech—that causes or can reasonably be forecast to cause substantial disruption to the educational environment.

Why it Matters: As this case (Kutchinski v Freeland Community School District) demonstrates, off-campus speech can easily make its way onto school grounds given the widespread use of social networks and other digital means of communication by students. While every case of discipline for off-campus speech must be evaluated pursuant to its own unique facts and circumstances, the Sixth Circuit affirmed a school’s rights to take disciplinary action under appropriate circumstances.

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  1. Governor Whitmer Announces New Support Hubs for Small Businesses

On June 27, Governor Whitmer, along with the Michigan Economic Development Corporation, announced a new program aimed at supporting small businesses in the state by providing additional resources to them.

Why it Matters: The program is designed to allocate new and improved resources to small businesses through funding, direct support, and programming. Learn more about the new program.

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  1. City of Detroit Approves Second Round of Recreational Cannabis Applications

On June 27, the Detroit City Council approved a second of three rounds of recreational cannabis applications to open up for submission.

Why it Matters: The second round will see a maximum of 50 applications for cannabis operations, broken down into the following categories: 15 adult-use retailer licenses, 15 adult-use equity retailer licenses, five microbusiness licenses, five microbusiness equity licenses, five designated consumption establishment licenses, and five designated consumption establishment equity licenses.

Related Practice Groups and Professionals

Insurance Law | Gary Rogers
Family Law | Paula Spicer
Business & Tax | Ed Castellani
Cannabis Law | Sean Gallagher

Michigan’s New Distracted Driving Law Takes Effect June 30

In an effort to mitigate the risks associated with distracted driving, Michigan recently enacted legislation meant to deter and punish instances of distracted driving. The new law, which takes effect June 30, 2023, makes holding and using a mobile electronic device while operating a motor vehicle illegal. Michigan is the 26th state in the United States to pass a hands-free driving law, signifying the growing national consensus around the importance of focused driving.

Background

The journey to this legislation commenced in early May when the Michigan House and Senate passed House Bills 4250, 4251, and 4252. These bills sought to amend portions of the Michigan Vehicle Code, intending to curtail the surging number of distracted-driving mishaps and fatalities.

Texting while driving was already prohibited in Michigan. However, the no-texting law was instituted during an era when mobile phones were in their relatively nascent stage of adoption. With the current legislation, all mobile phone usage while driving is effectively deemed illegal, reflecting the pervasiveness of such devices and our current understanding of the risks of distracted driving. According to the National Highway Transportation Safety Administration (NHTSA), over 3,500 lives were lost due to distracted driving in 2021.

Understanding the New Law

At its core, the new law restructures Michigan’s Vehicle Code to make using a mobile electronic device for any task illegal, including, but not limited to, making or receiving telephone calls, sending, reading or receiving text messages, viewing, recording or transmitting videos, and accessing, reading, or posting to social networking sites.

Importantly, the law designates holding or using a cell phone while driving as a primary offense, allowing an officer to pull over and ticket someone solely for this violation. However, the legislation provides that police cannot search a driver based on this violation alone.

The Cost of Distracted Driving in Michigan

The legislation imposes penalties for distracted driving, ranging from monetary fines to community service.

    • For the first violation, drivers face a $100 fine or 16 hours of community service.
    • A second violation will result in a $250 fine or 24 hours of community service.
    • If three violations are committed within three years, the driver will be ordered to complete a driver-improvement course.

Stiffer penalties apply to commercial vehicle or school bus drivers, with the first violation attracting a $200 fine or 32 hours of community service, and subsequent violations drawing a $500 fine or 48 hours of community service. Notably, if an at-fault driver is found to be using a cell phone during a crash, any civil fines are doubled.

Potential Liability

A potential secondary cost is the fact that if a driver is involved in a crash causing injury or death while in any way in violation of the new law; the court at trial will instruct the jury that if the driver violated the new statute that the violation creates a prima facie case from which a jury may draw an inference of negligence. In other words, the burden will shift to the user of the mobile electronic device to show that he / she was not negligent. In a normal circumstance, without violation of a statute, the burden of proving negligence is on the Plaintiff, not the Defendant. Violation of the new statute will shift the burden of proof and make it easier for the Plaintiff to convince the Defendant driver was negligent.

Exceptions

The law includes several exceptions. Law enforcement, first responders, and other emergency workers are allowed to use a cell phone while performing their official duties. Similarly, anyone texting or calling 911 to report an emergency is exempted. All drivers, except those with a level 1 or 2 graduated license, may use their device in hands-free modes.

Drivers are allowed to utilize their GPS, provided it is hands-free. Mobile phones can serve as navigation systems if operated in a hands-free mode, for instance, by mounting it on the dashboard or using voice commands. Generally, using voice commands or hands-free modes to use mobile devices is allowed.

Conclusion

As we navigate the digital age, including on our roads, laws must keep pace with technological progress. Michigan’s new distracted driving law is an attempt to improve road safety in the era of smartphones. Get ready to go hands-free on June 30.

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


Fraser Trebilcock Shareholder Gary C. Rogers is recognized as one of the top civil defense attorneys in the area of automobile related cases, and he has co-written Michigan No-Fault Law-The Insurers’ Perspective, a handbook for handling claims under Michigan’s No-Fault Automobile legislation. Gary can be reached at grogers@fraserlawfirm.com or (517) 377-0828.

Five Stories that Matter in Michigan This Week – December 9, 2022

  1. Probate Court May Appoint Guardian Even Though Patient Advocate Already in Place

In the case In re Guardianship of Tyler J. Newland, the Michigan Court of Appeals held in an unpublished decision that a probate court may appoint a guardian for an individual who already has a patient advocate in place. The case involved a hospital that petitioned the probate court for the appointment of a guardian, alleging that a guardian was needed because the advocate for one of the hospital’s patients was not acting consistent with the patient’s best interests.

Why it Matters: This case highlights the need for experienced and effective estate planning legal counsel. For help with your estate planning needs, please contact a member of Fraser Trebilcock’s Trusts & Estates team.

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  1. Minimum Wage Set to Increase, With or Without Court Action

On Monday, December 5, 2022, the Michigan Department of Labor and Economic Opportunity announced the effective minimum wages for 2023, setting the standard minimum wage at $10.10 per hour.

Why it Matters: The Department’s notice cautioned that the announced rates were subject to change, pending a decision by the Michigan Supreme Court regarding the Michigan Legislature’s amendment to a successful 2018 ballot initiative. In any event, workers and employers can expect higher wage rates in the new year, just how much higher will be determined in the coming weeks and months. Learn more on the subject.

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  1. The Demise of the Open and Obvious Defense? (Michigan’s Evolution of Premises Liability Law)

Premises liability cases are often litigated in Michigan with considerable difficulty. In a premises liability claim, a possessor of land owes a duty to an invitee to exercise reasonable care to protect them from an unreasonable risk of harm caused by a dangerous condition on the land. However, plaintiffs frequently find difficulty in successfully making claims under a premises liability theory due to the “open and obvious” defense.

Why it Matters: Michigan courts have traditionally held that the hazards presented by snow, snow-covered ice, and observable ice are open and obvious and do not impose a duty on the premises possessor to warn of or remove the hazard. However, the courts appear to be slowly eroding this traditional approach. Learn more on the subject.

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  1. Tax Changes Coming for Research & Experimental Expenditures

For tax years beginning in 2022, research and experimental (R&E) expenditures are no longer immediately expensed but rather must be amortized over five years (15 years for foreign expenditures). This change to the tax treatment of R&E expenditures was included as a revenue raiser for the federal government to help pay for other tax breaks in the Tax Cuts and Jobs Act passed at the end of 2017.

Why it Matters: Guidance is needed immediately for the 2022 tax year, especially for corporations that must prepare financial statements. The post-2021 tax treatment of R&E expenditures is inconsistent with financial accounting principles that requires most research and development costs to be expensed immediately.

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  1. Judge Upholds CRA’s Decision to Suspend Licenses for Flint Marijuana Business

As we covered in a previous newsletter, the Michigan Cannabis Regulatory Agency suspended Green Culture’s medical and recreational licenses after they were found to have sold unregulated products that may have contained several contaminants, such as mold and/or bacteria. Following a two-day hearing, a judge sided with the state agency and upheld the suspension.

Why it Matters: Marijuana businesses should heed this as a warning, the CRA are cracking down on businesses that do not follow the strict guidelines and rules laid out by the state agency. Contact our cannabis law attorneys if you have any questions.

Related Practice Groups and Professionals
Trusts & Estates | Melisa M. W. Mysliwiec
Business & Tax | Robert Burgee
Insurance Law | Laura DeMarco
Business & Tax  | Paul McCord
Cannabis Law | Sean Gallagher

Five Stories that Matter in Michigan This Week – December 2, 2022

  1. New Michigan NIL Legislation Takes Effect December 31, 2022

Michigan House Bill 5217 which was passed into law in 2020, takes effect December 31, 2022 and sets new standards for how student-athletes can earn compensation for the use of their name, image, and likeness (“NIL”) in Michigan.

Why it Matters: Student-athletes, covered higher education institutions, and businesses must ensure that NIL deal comply not only with NCAA rules and regulations, but also with the new standards that will apply in the State of Michigan starting in 2023. For example, higher education institutions are prohibited from paying a student-athlete compensation directly for the use of their NIL rights, or revoking or reducing a student-athlete’s athletic scholarship because they earned compensation from an NIL deal.

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  1. FTC Safeguards Rule Deadline Extended, But Don’t Wait to Implement Data Security Compliance Protocols

The Federal Trade Commission recently extended the deadline, from December 9, 2022, to June 9, 2023, for compliance with the most stringent requirements of its latest rulemaking, revisions to the Safeguards Rule under the Gramm Leach Bliley Act (“the GLBA”).

Why it Matters: The GLBA, which was implemented over 20 years ago, defines how businesses gather, use, and share certain financial information about their customers. The Safeguards Rule establishes certain data security requirements for how a business stores that information. Learn more from our Fraser Trebilcock attorneys on the matter.

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  1. The Demise of the Open and Obvious Defense? (Michigan’s Evolution of Premises Liability Law

Premises liability cases are often litigated in Michigan with considerable difficulty. In a premises liability claim, a possessor of land owes a duty to an invitee to exercise reasonable care to protect them from an unreasonable risk of harm caused by a dangerous condition on the land. However, plaintiffs frequently find difficulty in successfully making claims under a premises liability theory due to the “open and obvious” defense.

Why it Matters: Michigan courts have traditionally held that the hazards presented by snow, snow-covered ice, and observable ice are open and obvious and do not impose a duty on the premises possessor to warn of or remove the hazard. However, the courts appear to be slowly eroding this traditional approach. Learn more on the subject.

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  1. Michigan Department of Technology, Management and Budget Prevailing Wage Policy Upheld by Court of Claims

On March 1, 2022, the State of Michigan began to require state contractors and subcontractors to pay prevailing wage on construction-based contracts issued by the Department of Technology, Management & Budget (“DTMB”). The directive established the following guidelines for when the payment of a prevailing wage is required.

Why it Matters: In October, the Michigan Court of Claims sided with the state and ruled that DTMB did not violate the law when it implemented its prevailing wage policy. The court granted DTMB’s motion for summary disposition, resulting in the dismissal of the case.

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  1. EEOC Issues New Workplace “Know Your Rights” Poster

The Equal Employment Opportunity Commission has issued an updated “Know Your Rights” workplace poster. Employers with more than 15 workers are required to display the poster, which can be found here, in their workplace. The updated poster identifies and summarizes laws that protect workers from discrimination and retaliation, and explains how employees or applicants can file a complaint if they believe that they have experienced discrimination.

Why it Matters: Employment law is a constantly evolving area, so it’s important for employers to stay abreast of new developments, such as this updated poster requirement from the EEOC. Contact a member of our Labor, Employment & Civil Rights team with any questions.

Related Practice Groups and Professionals

Higher Education | Ryan Kauffman
Business & Tax | Robert Burgee
Insurance Law | Laura DeMarco
Labor, Employment & Civil Rights | Aaron Davis

The Demise of the Open and Obvious Defense? (Michigan’s Evolution of Premises Liability Law)

Premises liability cases are often litigated in Michigan with considerable difficulty. In a premises liability claim, a possessor of land owes a duty to an invitee to exercise reasonable care to protect them from an unreasonable risk of harm caused by a dangerous condition on the land. However, plaintiffs frequently find difficulty in successfully making claims under a premises liability theory due to the “open and obvious” defense.

The open and obvious doctrine attacks the element of duty in a premises liability claim by stating that a premises possessor’s duty does not extend to open and obvious dangers. A condition is open and obvious if “an average user with ordinary intelligence [would] have been able to discover the danger and the risk presented upon casual inspection.” Novotney v. Burger King Corp., 198 Mich App 470, 475; 499 NW2d 379 (1993). The open and obvious defense has long been criticized by plaintiff personal injury attorneys as being overly harsh and depriving injured persons their day in court after being injured from a dangerous condition existing on the premises.

As with most legal theories, there are exceptions to the rule. When there are “special aspects” to the condition, the open and obvious defense will not be accepted. The courts have interpreted “special aspects” to mean when the danger is 1) unreasonably dangerous, notwithstanding the open and obvious nature of the risk or 2) effectively unavoidable. An example given by the court was “an unguarded thirty-foot deep pit in the middle of a parking lot.” Lugo v Ameritech Corp, 464 Mich 512, 518; 629 NW2d 384 (2001). Thus, if the open and obvious defense is properly asserted and the special aspect exception does not apply, a land owner will be found not liable for injuries incurred on their land and will completely escape a claim of premises liability.

The courts had been reluctant to apply the “special aspects” exception to typical hazards that are encountered regularly, such as snow and ice. Michigan courts have traditionally held that the hazards presented by snow, snow-covered ice, and observable ice are open and obvious and do not impose a duty on the premises possessor to warn of or remove the hazard. Slaughter v. Blarney Castle Oil Co., 281 Mich App 474, 481; 760 NW2d 287 (2008).

However, the courts appear to be slowly eroding this traditional approach. In 2021, in the case of Estate of Livings v Sage’s Investment Group, LLC, 507 Mich 328; 968 NW2d 397 (2021), the Michigan Supreme Court held that an “open and obvious condition can be deemed effectively unavoidable when a plaintiff must confront it to enter his or her place of employment for work purposes.” In assessing this question, it is still necessary to consider whether any alternatives were available that a reasonable individual in the plaintiff’s circumstances would have used to avoid the condition. The Court explained that this analysis focused “on whether a reasonable premises possessor in the defendant’s circumstances could reasonably foresee that the employee would confront the hazard despite its obviousness.” But if an employee could have avoided the condition through the use of due care, like using a safe alternative path, then the condition was not effectively unavoidable. However, because it is reasonable to anticipate that a person will proceed to encounter a known or obvious danger for purposes of their work, a court cannot conclude that a hazard was avoidable simply because the employee could have elected to skip work.

More recently, in the case of Nathan v. David Leader Mgmt. Inc, unpublished per curiam opinion of the Court of Appeals, issued August 4, 2022, (Docket No. 357420), the Michigan Court of Appeals seems to further distance itself from the classic approach of the open and obvious defense. The majority and concurring opinions appear to be directing the trial courts in the direction of pure comparative fault, meaning, that when the open and obvious defense is properly asserted, the landowner may still be held liable for their percentage of fault for not warning the visitor of the hazard or removing the condition even though it might be open and obvious to the casual observer.

In Nathan, the plaintiff was staying at her mother’s apartment for two nights in a caretaking role. While exiting the building owned by the defendant, the walkways were completely covered with ice. The plaintiff attempted to get to the street by walking in the snow-covered grass, but slipped and fell. The court concluded that the snow-covered grass was an open and obvious danger and that a reasonable person would have discovered the risk presented upon casual inspection. However, the court, looking to Estate of Livings, explained that a fact-finder could reasonably conclude that she was serving in an employment capacity and needed to exit the building. Thus it was possible to infer that no reasonable alternatives were available to avoid the condition. Accordingly, the court concluded that there was a question of fact for the jury regarding whether the snow-covered path was effectively unavoidable.

However, the concurring opinion by Judge Shapiro appears to be far more telling of the direction the court is headed. Judge Shapiro explained his belief that the open and obvious doctrine fails to provide a clearly defined and workable scope of duty for premises possessors. He further suggested that in snow and ice cases, the Supreme Court should consider returning to the rule that the duty of a premises possessor is to take reasonable measures within a reasonable time after a natural accumulation of snow or ice to diminish the hazard of injury. Shapiro goes on to suggest the Supreme Court should return to a straight comparative negligence analysis and eliminate the open and obvious doctrine altogether.

This holding by the Michigan Court of Appeals and Judge Shapiro’s concurring opinion may well be a forecast of what is to come when an open and obvious premises liability issue next appears before the Michigan Supreme Court. Given the opportunity, and given the current makeup of the Court, the Michigan Supreme Court may very well decide that the open and obvious defense is an overly harsh remedy and apply a comparative negligence scheme to premises liability claims, at least in the context of natural accumulations of snow and ice.

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


Fraser Trebilcock Shareholder Gary C. Rogers is recognized as one of the top civil defense attorneys in the area of automobile related cases, and he has co-written Michigan No-Fault Law-The Insurers’ Perspective, a handbook for handling claims under Michigan’s No-Fault Automobile legislation. Gary can be reached at grogers@fraserlawfirm.com or (517) 377-0828.


Attorney Laura M. DeMarcoFraser Trebilcock attorney Laura M. DeMarco concentrates her practice on insurance law and general business matters. Laura can be reached at ldemarco@fraserlawfirm.com or (517) 377-0834.

Five Stories that Matter in Michigan This Week – September 30, 2022

  1. House Bill Proposes to Establish a Version of the Telephone Consumer Protection Act in Michigan

The federal Telephone Consumer Protection Act seeks to stop unwanted telephone solicitation. Michigan House Bill 6307, the Michigan Telephone Solicitation Act (the “MTSA”), would enact similar restrictions on a state level.

Why it Matters: If enacted, Michigan would follow in the footsteps of other states, such as Florida, Oklahoma, and Washington, who have implemented similar protections for residents. The MTSA would exempt certain solicitation calls, such as those made with express authorization and those to existing customers. Violations, especially knowing violations and those impacting vulnerable individuals, would be subject to stiff civil penalties. The bill also proposes to establish a private cause of action for impacted individuals.

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  1. October 14 Deadline: Medicare Part D Notice of Creditable (or Non-Creditable) Coverage 

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 requires entities who offer prescription drug coverage to notify Medicare Part D eligible individuals whether their prescription coverage is creditable coverage. These notices of either creditable or non-creditable coverage are due for distribution prior to October 15 of each year.

Why it Matters: Failure to provide notice can result in a late enrollment penalty to those persons who go 63 days or longer without creditable coverage. Learn more here.

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  1. FDA Appoints Birenbaum as Senior Public Health Advisor on Cannabis Research and Regulatory Actions 

The U.S. Food and Drug Administration (the “FDA”) recently hired Norman Birenbaum, former cannabis program director for the state of New York, to serve as its senior public health advisor on cannabis research and regulatory actions.

Why it Matters: The appointment of Norman Birenbaum signals a turn for cannabis and cannabis-based products on the federal level. He brings experience in policy analysis as a founding president of a national cannabis regulatory association, and is anticipated to expand the FDA’s relationship with the healthcare community and patient advocate groups, as they look to gather more data on cannabis.

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  1. General Motors Co. Reverses Return to Office Plan Following Backlash 

Top executives from GM reportedly reversed course from last week’s reported plan to require salaried employees to return to company offices for at least three days a week, which would go into effect later this year.

Why it Matters: Following the outcry from employees who felt the plan was ushered in too quickly, executives have backed off the three-day in-office requirement this calendar year and instead continued to practice the “Work Appropriately” philosophy first adopted in 2020.

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  1. Michigan Car Insurance Rates Drop Nationally

With the introduction of new out-of-state car insurance companies into Michigan, the state has dropped from the nation’s top spot in cost of car insurance, to fourth. The 2019 auto insurance reform bill that passed is believed to be the major factor in reducing costs.

Why it Matters: Reduced costs for automobile owners is a positive sign for Michiganders. Elected officials are working towards providing consumers with a choice for their automobile insurance, which will help reduce costs for citizens.

Related Practice Groups and Professionals

Energy, Utilities & Telecommunication | Michael Ashton
Employee Benefits | Robert Burgee
Cannabis Law | Sean Gallagher
Labor, Employment & Civil Rights | Aaron Davis
Insurance Law | Emily Vanderlaan

Five Stories that Matter in Michigan This Week – September 9, 2022

  1. Report Shows Decline in Health Care Employment

The Michigan Health & Hospital Association, Michigan State Medical Society, and Michigan Osteopathic Association jointly issued a report showing that the number of health care jobs in Michigan declined in the first year of the COVID-19 pandemic, due in large part to burnout associated with the pandemic.

Why it Matters: If these trends aren’t reversed, access to care could ultimately be affected. And the health care industry is one of the largest employers in Michigan, so the economy could be impacted as well. There are steps being taken in Lansing to help address these issues. In February, legislation was passed allocating $300 million to help relieve the health care worker shortage.

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  1. Gilbert Foundation Commits $10 Million to Detroit Startups

The Gilbert Family Foundation recently announced the launch of Venture 313, a three-year, $10 million commitment to Detroit area startups and entrepreneurs.

Why it Matters: Venture 313 will, through various partners invest $500 to $250,000 into Detroit businesses, depending on the circumstances of each business. This is just the latest development in the story of robust growth for Michigan’s startup and venture capital environment, which is among the fastest growing in the country.

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  1. City of Detroit Moving Forward with Adult-Use Recreational Licenses

Following the news that Wayne County Circuit Court Judge Leslie Kim Smith dismissed the two lawsuits from House of Dank and JARS, respectively, the City of Detroit will start processing applications for adult-use recreational licenses.

Why it Matters: This is the latest development in a turbulent time for the city as they have yet to establish and begin selling recreational cannabis. However this appears to be the last roadblock for the city and they can begin processing applications. Fraser Trebilcock cannabis attorneys will continue to monitor the situation for updates.

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  1. NHTSA Compliance and Suspensions

The National Highway Traffic Safety Administration (“NHTSA”) has recently taken enforcement action against a number of Registered Importers (RI) whose import documentation does not strictly comply with NHTSA laws and Regulations. This enforcement action may include lengthy RI registration suspension or termination.

Why it Matters: RI’s are advised that all certifications to NHTSA must be completely accurate and not false or misleading. Critically, the dates of entry must be accurate and not false or misleading. RI’s are responsible for the actions of their employees, so employees must be trained on NHTSA laws and Regulations.

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  1. MDOT Seeks to Install Automated Cameras in Work Zones

Michigan HB 5750 would allow the Michigan Department of Transportation (MDOT) to install automated cameras in work zones to capture speeders. While the bill sits on the House floor, the road construction industry is getting behind the bill.

Why it Matters: If this bill passes, drivers will need to be aware of the resulting penalties for exceeding the posted speed by 10 mph or greater, which would range from a written warning to a $300 fine.


Related Practice Groups and Professionals

Labor, Employment & Civil Rights | Aaron Davis
Business & TaxEd Castellani
Cannabis Law | Sean Gallagher
Insurance Defense | Emily Vanderlaan

Five Stories that Matter in Michigan This Week – September 2, 2022

  1. President Biden Announces Student Loan Forgiveness

On Wednesday, August 24, President Biden announced the federal government will extend the current pause on monthly student loan payments. President Biden also stated that the federal government plans to forgive up to $20,000 worth of student loan debt for those who qualify.

Why it Matters: President Biden is relying on the HEROES Act of 2003 [20USC 1098bb] to extend the pause on student payments as well as forgive certain amounts of student loans for qualifying individuals. There may be challenges to the President’s reliance on this statute to forgive student loan debt in the future. Learn more here from our attorney covering the news.

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  1. How Michigan Car Insurance Rates Stack Up Nationally

Following an influx of new car insurance companies into the state, Michigan has dropped from being the nation’s leader in cost of car insurance to fourth. The major effort in reducing costs is attributed to the 2019 auto insurance reform, which saw prices for automobile premiums drop considerably.

Why it Matters: Reduced costs for automobile owners is a positive sign for Michiganders. Elected officials are working towards providing consumers a choice for their automobile insurance, which in turn will reduce costs across the board.

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  1. Term Limits Will Be Prop 1 on November Ballot

It was recently announced that changes to Michigan’s term limits and financial disclosure requirements will be on November’s ballot as Prop 1. In 1992, Michigan voters voted in favor of a constitutional amendment for term limits. Since then, Michigan House members have been limited to three two-year terms and Michigan Senate members to two four-year terms— a maximum of 14 years between the two chambers.

Why it Matters: If Prop 1 passes, it would permit lawmakers to serve 12 years in Lansing, and all of that time could be spent in the House or Senate, or it could be divided between the two chambers. Additionally, elected officials would have to disclose their assets, income and liabilities, and their involvement in any businesses, nonprofits, labor organizations or educational institutions. Learn more here.

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  1. Voting Rights Proposal Fails to Make November Ballot

A voting rights proposal that would make changes to Michigan’s elections—including establishing early voting—failed to make this fall’s ballot. Michigan’s Board of State Canvassers deadlocked on whether to certify the Promote the Vote amendment for the ballot.

Why it Matters: The amendment would have increased absentee ballot access and preempted efforts to enact stricter voter ID rules for those casting ballots in person and for absentee voters. Promote the Vote indicated it would challenge the decision in court.

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  1. Michigan to Receive $50 Million from Federal Government for Historic 2020 Flooding

The Federal Highway Administration said Wednesday it will provide $50 million in emergency relief funds to Michigan to reimburse the state for repairs it made to roadways and bridges following severe flooding that took place in mid-Michigan in 2020.

Why it Matters: The money comes as part of a $513 million package the federal government is distributing across different states and territories. Only California and Puerto Rico will receive more than Michigan.


Related Practice Groups and Professionals

Insurance Defense | Emily Vanderlaan

Election Law | Garett Koger

Trusts & Estates | Elizabeth Siefker

Five Stories that Matter in Michigan This Week – August 26, 2022

  1. Michigan Sees Unemployment Decrease as Jobs Increase

According to recent data released by the Michigan Department of Technology, Management, and Budget, the unemployment rate in the state dropped from 6.2% to 4.2% over a twelve-month period. Michigan also saw a bump in jobs last month, with 3,000 in July.

Why it Matters: Officials point to the increase in job growth and lower unemployment rates as a reflection of the hard work that the government, people, and businesses have put into the economy to shift to a more positive outlook.

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  1. Michigan to Deploy $72M in Federally Funded Small Business Loans and Investments

$72 million of funding Michigan received from the federal Small Business Credit Initiative 2.0 is being deployed for loans to small businesses through Michigan Economic Development Corporation capital and lending programs. The MEDC will also invest  up to $75 million in early-stage, technology-based businesses in Michigan through the Small Business Venture Capital Program.

Why it Matters: Michigan’s venture capital and startup ecosystem continues to grow. The amount of venture capital invested in Michigan reached an all-time high in 2021. According to the Michigan Venture Capital Association’s 2022 Impact Report, a record $1.38 billion into 155 companies last year through 161 deals.

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  1. MDOT Seeks to Install Automated Cameras in Work Zones

Michigan HB 5750 would allow the Michigan Department of Transportation (MDOT) to install automated cameras in work zones to capture speeders. While the bill sits on the House floor, the road construction industry is getting behind the bill.

Why it Matters: If this bill passes, drivers will need to be aware of the resulting penalties for exceeding the posted speed by 10 mph or greater, which would range from a written warning to a $300 fine.

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  1. Gas Prices Continue to Decrease Since Record June 2022 Highs

The American Automobile Association (AAA) reports that the average Michigander is paying just under $4 for a gallon of gas, down from the record high average of $5.22 in June.

Why it Matters:  While gas prices continue to decrease, Michiganders are still paying more per gallon when compared to 2021. Citizens and officials alike will look to continue seeing the downward trend. Spending less at the pump can increase spending in other areas of the economy.

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  1. U of M Study Finds that Wind and Solar Industries Could Fully Replace Jobs Lost at U.S. Coal-Fired Power Plants

A recent University of Michigan study found that the wind and solar industries could fully replace the number of lost jobs at U.S. coal-fired power plants that are expected to close to meet emission-reduction targets.

Why it Matters: The recently enacted Inflation Reduction Act includes substantial funding for wind and solar energy tax incentives. The bill is intended to spur growth and investment in clean energy projects across the country. Michigan has recently seen growth in jobs in the energy sector. In fact, the state ranked first in the nation for energy job growth in a recent U.S. Department of Energy report. Michigan added more than 35,000 energy-sector jobs from 2020 to 2021.


Related Practice Groups and Professionals

Business & Tax| Ed Castellani

Labor & Employment | Aaron Davis

Energy, Utilities & Telecommunication | Michael Ashton

Insurance Defense | Emily Vanderlaan