Five Stories That Matter in Michigan This Week – June 13, 2025

  1. Supreme Court Eliminates Higher Burden for “Reverse Discrimination” Claims

The U.S. Supreme Court unanimously ruled in Ames v. Ohio Department of Youth Services that employees claiming workplace discrimination face the same burden of proof regardless of whether they belong to a majority or minority group. The decision overturned the “background circumstances” rule that required straight employees and other majority group members to meet a higher standard when proving discrimination under Title VII.

Why it Matters: This ruling creates a uniform standard for Title VII discrimination cases and may lead to increased reverse discrimination claims in the workplace. Employers should prepare for potential challenges to diversity, equity, and inclusion initiatives, as majority group members can now more easily assert discrimination claims without having to prove unusual circumstances that suggest their employer discriminates against the majority.

———

  1. Right to Withhold Rent for Repairs Bills Head to Senate Floor

Legislators have introduced the “Tenant Empowerment Package” which includes Senate Bills 19 through 22. In the package, it would require landlords to begin repairs on defective appliances or hazardous situations within 24 hours upon written notice from the renter. If the repairs have not started within 24 hours, the renter has the ability to withhold rent until the repairs are done, or they’re able to start repairs themselves, and deduct the costs from their rent.

Why it Matters: The bills would have a direct fiscal impact on the State, local governments, or local court systems. They could reduce evictions for local systems, which would have indirect benefits related to homelessness, productivity, and tax revenue.

———

  1. Michigan CRA Publishes April ’25 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 April 2025 was $62.23, a decrease from $65.14 in March 2025. This is a decrease from April 2024, where the average price was $86.61.

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. Duty to Defend and Indemnify

When an insurer receives a claim, the question of whether it will defend and/or indemnify is easier to answer in some cases than others. When interpreting an insurance policy, there are two questions involved: (1) Does the policy provide coverage?; and (2) If the policy provides coverage, is there an exclusion that negates the coverage?

Why it Matters: Although an insurer may deny coverage and in turn, decline to provide a defense, it should not do so unless it is very clear that none of the allegations are covered under the policy at issue. It is also important for insurers to consider whether the policy language might be governed by the laws of a different state. Read more from your Fraser Trebilcock attorney.

———

  1. Ensuring Your Business is Protected Through Copyright

Whether it is a symbol that you use for branding or a formula that makes your product unique, your intellectual property assets need to be protected. Some of the most recognizable forms of intellectual property fall under copyrights, patents, and trademarks.

Why it Matters: A copyright is the exclusive legal protection that covers an original work of authorship, and it can be difficult to enforce your copyright if the work is not registered with the U.S. Copyright Office. Our copyright law attorneys can help you think through the issues and take the actions necessary to ensure your work and business are protected. Learn more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Real Estate | Jared Roberts
Cannabis Law | Sean Gallagher
Insurance | Dakota Larson
Intellectual Property | Andrew Martin

Five Stories That Matter in Michigan This Week – May 30, 2025

  1. Michigan Proposes Real-Time Cannabis Business Monitoring Requirements

Michigan regulators are considering new adult-use cannabis regulations that would require businesses to provide real-time access and live monitoring through web-based portals, according to MLive. The proposed rules would mandate that cannabis operations maintain comprehensive records of sales, shipping, and access activities, while storing at least 30 days of footage that must be readily available to regulators upon request.

Why it Matters: These enhanced monitoring requirements represent a significant expansion of regulatory oversight that could increase compliance costs and operational complexity for cannabis businesses.

———

  1. Michigan Cannabis Industry Seeks Regulatory Reform Amid Market Crisis

Michigan’s cannabis industry continues to struggle with profitability, with flower prices falling 77% since legalization in 2019, dropping from $512 to under $65 per ounce. At a recent Michigan Senate Regulatory Affairs Committee hearing, Cannabis Regulatory Agency Director Brian Hanna warned of industry consolidation and business failures without significant changes. The hearing identified three critical areas for reform: implementing a moratorium on new grower licenses, addressing unregulated hemp-derived THC products, and reducing excessive regulatory fines.

Why it Matters: With nearly 40,000 industry employees and more than $300 million generated in state tax revenue, the stakes for Michigan’s cannabis market are high. According to testimony at the hearing, without these proposed reforms, the industry faces potential widespread consolidation, reduced product variety, and diminished opportunities for social equity licensees, among other implications.

———

  1. NLRB Establishes Standard for Workplace Rules

The National Labor Relations Board (NLRB) has issued a ruling in Stericycle Inc., adopting a new legal standard for evaluating the lawfulness of employer work rules. Under the previous standard, an employer was not required to narrowly tailor its rules to promote its legitimate and substantial business interests without unnecessarily burdening employee rights.

Why it Matters: Workplaces may need to review existing policies to their employee handbooks to ensure compliance, and tailor their workplace rules to service legitimate business interests. Read more from your Fraser Trebilcock attorney.

———

  1. Fraser Trebilcock Attorneys Secure Victory for Firm Client

The litigation team of ​Thaddeus E. Morgan and ​Andrew G. Martin obtained dismissal of a case for the firm’s client.

Why it Matters: The litigation team obtained dismissal of a case alleging assumption of a contract as part of a business acquisition rejecting plaintiff’s claim of the “mere continuation” doctrine. Learn more.

———

  1. Thaddeus E. Morgan Recognized as a ‘Michigan Go To Lawyer’ for Construction Law in 2025 by Michigan Lawyers Weekly

Fraser Trebilcock Shareholder Thaddeus E. Morgan has been recognized by Michigan Lawyers Weekly as a ‘Michigan Go To Lawyer” in 2025 for Construction Law. “I am honored to have been recognized by Michigan Lawyers Weekly as a ‘Michigan Go To Lawyer’ for Construction Law,” said Mr. Morgan.

Why it Matters: Mr. Morgan is President of Fraser Trebilcock and has over 30 years of litigation experience in both state and federal courts in a wide variety of areas, including, commercial and business disputes, employment and shareholder litigation, construction, health care, real estate, insurance, and intellectual property. He is a former assistant prosecutor and assistant attorney general. Read more.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Labor, Employment & Civil Rights | David Houston
Litigation | Thad Morgan
Litigation | Andrew Martin
Construction Law | Thad Morgan

Five Stories That Matter in Michigan This Week – May 23, 2025

  1. Thaddeus E. Morgan Recognized as a ‘Michigan Go To Lawyer’ for Construction Law in 2025 by Michigan Lawyers Weekly

Fraser Trebilcock Shareholder Thaddeus E. Morgan has been recognized by Michigan Lawyers Weekly as a ‘Michigan Go To Lawyer” in 2025 for Construction Law. “I am honored to have been recognized by Michigan Lawyers Weekly as a ‘Michigan Go To Lawyer’ for Construction Law,” said Mr. Morgan.

Why it Matters: Mr. Morgan is President of Fraser Trebilcock and has over 30 years of litigation experience in both state and federal courts in a wide variety of areas, including, commercial and business disputes, employment and shareholder litigation, construction, health care, real estate, insurance, and intellectual property. He is a former assistant prosecutor and assistant attorney general. Read more.

———

  1. Fraser Trebilcock Attorneys Secure Victory for Firm Client

The litigation team of ​Thaddeus E. Morgan and ​Andrew G. Martin obtained dismissal of a case for the firm’s client.

Why it Matters: The litigation team obtained dismissal of a case alleging assumption of a contract as part of a business acquisition rejecting plaintiff’s claim of the “mere continuation” doctrine. Learn more.

———

  1. NLRB Establishes Standard for Workplace Rules

The National Labor Relations Board (NLRB) has issued a ruling in Stericycle Inc., adopting a new legal standard for evaluating the lawfulness of employer work rules. Under the previous standard, an employer was not required to narrowly tailor its rules to promote its legitimate and substantial business interests without unnecessarily burdening employee rights.

Why it Matters: Workplaces may need to review existing policies to their employee handbooks to ensure compliance, and tailor their workplace rules to service legitimate business interests. Read more from your Fraser Trebilcock attorney.

———

  1. Organizing Your Business: A Step-by-Step Guide for Michigan LLCs

Starting a business involves critical choices that shape your success and safeguard your financial future. In Michigan, forming an LLC offers entrepreneurs a powerful way to protect personal assets, simplify taxation, and maintain management flexibility.

Why it Matters: Forming and maintaining an LLC in Michigan provides valuable liability protection and flexibility for your business. By maintaining proper governance, your LLC can serve as a solid foundation for your business ventures. Read more from your Fraser Trebilcock attorney.

———

  1. Navigating Bad Faith Claims: What Defense Attorneys Need to Know

Under the Michigan Uniform Trade Practices Act, an insurer is liable for penalty interest if it fails to timely pay a claim. “The purpose of the penalty is to penalize insurers for dilatory practices in settling meritorious claims, not to compensate a plaintiff for delay in recovering benefits to which he or she is ultimately determined to be entitled.”

Why it Matters: While it is important for insurers to train their claims professionals in background knowledge regarding bad faith law, including the factors above, there is no need to lead with fear. The biggest takeaway is that the opposite of “bad faith” is “good faith.” Therefore, claims professionals should be encouraged to utilize their best judgment with the information at the given time. Read more from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Construction Law | Thad Morgan
Litigation | Thad Morgan
Litigation | Andrew Martin
Business & Tax | Andrew Martin
Labor, Employment & Civil Rights | David Houston
Insurance | Dakota Larson

NLRB Establishes New Standard for Workplace Rules – What Employers Need to Know

The National Labor Relations Board (NLRB) has issued a ruling in Stericycle Inc., adopting a new legal standard for evaluating the lawfulness of employer work rules. This decision overturns the previous standard set by Boeing Co. (2017), later refined in LA Specialty Produce Co. (2019).

Case Background

In Stericycle, the NLRB explained that the primary problem with the Boeing and LA Specialty Produce standard was that it permitted employers to adopt overbroad work rules that chill employees’ exercise of their rights under Section 7 of the Act. Under that standard, an employer was not required to narrowly tailor its rules to promote its legitimate and substantial business interests without unnecessarily burdening employee rights. The NLRB also rejected Boeing’s categorical approach to work rules, under which certain types of rules were held to be always lawful, regardless of how they were drafted or what interests a particular employer cited in defense of the rule.

Key Changes

      • A workplace rule is now presumptively unlawful if it has a reasonable tendency to chill employees from exercising their rights.
      • Employers may counter the presumption by proving the rule advances a legitimate and substantial business interest and that they’re unable to advance that interest with a more narrowly tailored rule.

What This Means for Employers

Following this, the NLRB is in favor of case-specific consideration of work rules. Employers may need to review existing policies to their employee handbooks to ensure compliance, and tailor their workplace rules to service legitimate business interests.

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


Attorney David J. HoustonFraser Trebilcock Shareholder Dave Houston has over 40 years of experience representing employers in planning, counseling, and litigating virtually all employment claims and disputes including labor relations (NLRB and MERC), wage and overtime, and employment discrimination, and negotiation of union contracts. He has authored numerous publications regarding employment issues. You can reach him at 517.377.0855 or dhouston@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – May 16, 2025

  1. Federal Government Sues to Block Michigan’s Climate Lawsuits Against Fossil Fuel Companies

The federal government has filed a preemptive lawsuit against Michigan to prevent the state from pursuing litigation against fossil fuel companies for climate change damages. Michigan had announced plans to join approximately similar lawsuits already pending in courts nationwide but was sued by the federal government before it could file.

Why it Matters: This unusual procedural move specifically references President Trump’s recent executive order on American energy production that criticizes climate-focused state actions.

———

  1. Governor Whitmer Signs Two Bills Into Law Revolving Around Financial Transparency for Public Officers and Candidates

Michigan Governor Gretchen Whitmer signed Senate Bills 99 and 100 into law this week, which focused on increasing transparency within the Michigan legislature, requiring public officers and candidates to report and specify any unearned income and/or securities they receive.

Why it Matters: Senate Bill 99 amends the Public Officers Financial Disclosure Act, including specifying that reporting requirements for unearned income and securities would have to include the origin and address of the sources and securities, and require the public officer to include the name of the lobbyist or lobbyist agent that made the gift payment. Senate Bill 100 amends the Candidate for Office Financial Disclosure Act, including specifying the reporting requirements for unearned income and securities would have to include the origin and address of the sources and securities.

———

  1. Organizing Your Business: A Step-by-Step Guide for Michigan LLCs

Starting a business involves critical choices that shape your success and safeguard your financial future. In Michigan, forming an LLC offers entrepreneurs a powerful way to protect personal assets, simplify taxation, and maintain management flexibility.

Why it Matters: Forming and maintaining an LLC in Michigan provides valuable liability protection and flexibility for your business. By maintaining proper governance, your LLC can serve as a solid foundation for your business ventures. Read more from your Fraser Trebilcock attorney.

———

  1. Navigating Bad Faith Claims: What Defense Attorneys Need to Know

Under the Michigan Uniform Trade Practices Act, an insurer is liable for penalty interest if it fails to timely pay a claim. “The purpose of the penalty is to penalize insurers for dilatory practices in settling meritorious claims, not to compensate a plaintiff for delay in recovering benefits to which he or she is ultimately determined to be entitled.”

Why it Matters: While it is important for insurers to train their claims professionals in background knowledge regarding bad faith law, including the factors above, there is no need to lead with fear. The biggest takeaway is that the opposite of “bad faith” is “good faith.” Therefore, claims professionals should be encouraged to utilize their best judgment with the information at the given time. Read more from your Fraser Trebilcock attorney.

———

  1. NLRB Establishes Standard for Workplace Rules

The National Labor Relations Board (NLRB) has issued a ruling in Stericycle Inc., adopting a new legal standard for evaluating the lawfulness of employer work rules. Under the previous standard, an employer was not required to narrowly tailor its rules to promote its legitimate and substantial business interests without unnecessarily burdening employee rights.

Why it Matters: Workplaces may need to review existing policies to their employee handbooks to ensure compliance, and tailor their workplace rules to service legitimate business interests. Read more from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Insurance | Dakota Larson
Business & Tax | Andrew Martin
Labor, Employment & Civil Rights | David Houston

Five Stories That Matter in Michigan This Week – May 2, 2025

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

This week, the Michigan Cannabis Regulatory Agency filed a formal complaint against Pure Roots LLC, alleging the adult-use marijuana processor purchased marijuana from a non-licensed marijuana establishment, and that they failed to properly transport the marijuana in a secure transporter.

Why it Matters: The CRA is intending on imposing fines and/or other sanctions against Pure Roots LLC license, which may include the suspension, revocation, restriction, and/or refusal to renew their license.

———

  1. Ensuring Your Business is Secure Through Patent Protection

Whether it is a symbol that you use for branding or a formula that makes your product unique, your intellectual property assets need to be protected. Some of the most recognizable forms of intellectual property fall under copyrights, patents, and trademarks.

Why it Matters: A patent is a legal monopoly for protecting a utilitarian device, system, machine, composition or process. When should you file? Timing is of the essence to prevent a competitor from winning the race to the Patent Office. Our patent law attorneys can help you think through the issues and take the actions necessary to ensure your work and business are protected. Learn more.

———

  1. Senate Labor Committee Hears Testimony Over Independent Contractor Proposal

The Senate Labor Committee heard testimony this week regarding proposed legislation over independent contractors.

Why it Matters: A few changes SB 67 would make include implementing an ABC test, and requiring three years of wage information for similar roles. Additionally, fines and penalties for misclassification would increase, and in some cases, may lead to prison sentences for business owners.

———

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

When facing charges of any kind, criminal law experience matters most. You need someone on your side with inside knowledge to provide guidance for a solid defense. We have extensive experience representing individuals and businesses in all stages of criminal proceedings.

Why it Matters: Helping clients for more than two decades, Rob is an experienced criminal defense and professional licensing attorney who has successfully represented clients in both state and federal courts in felony and misdemeanor cases in more than 50 counties across the state of Michigan. He is passionate about what he does, and, understanding the direct and collateral consequences that a criminal conviction or professional licensing sanction can bring, he compassionately works with his clients to focus on what matters most to them. Learn more.

———

  1. CRA to Hold Public Hearing and Receive Comments on New Package of Rules

The Michigan Cannabis Regulatory Agency has scheduled a public hearing for the purpose of receiving public comment on a proposed omnibus rule-making package on Tuesday, May 6, beginning at 9:00 a.m.

Why it Matters: The proposed rules are meant to address a number of important policy issues, including accounts receivable and hemp-derived products. Once the public hearing has concluded and the public comment period has ended, the CRA’s final rules will be sent to the Legislative Service Bureau for formal certification. The draft rules can be found here.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Intellectual Property | Andrew Martin
Labor, Employment & Civil Rights | David Houston
Criminal Law | Robert Andretz

Five Stories That Matter in Michigan This Week – February 28, 2025

  1. Reviewing the Changes on ESTA and Minimum Wage Laws

Last week, Governor Whitmer signed bills HB 4002 and SB 8, which amended the Earned Sick Time Act (ESTA) and the tipped minimum wage law standards that were set to go into effect February 21, 2025. Now, employers will need to adjust their policies to reflect the changes set forth in the bills.

Why it Matters: Employers with 11 employees or more must offer 72 hours of paid sick leave, employers with 10 or fewer employees must offer 40 hours of paid sick leave, and employers are now allowed to frontload sick time. Minimum wage was increased to $12.48 beginning February 21, 2025, $13.71 on January 1, 2026, $15 on January 1, 2027, respectively. Beginning January 1, 2028, and each following year, the minimum wage will increase by the rate of inflation, provided unemployment remains below 8.5%. Read more from your Fraser Trebilcock attorney.

———

  1. FinCEN Update: CTA Reporting Requirement Back On

February 18, 2025, the United States District Court in Texas that had ordered the injunction that had paused enforcement of the Corporate Transparency Act’s (“CTA”) Beneficial Owner Information Reporting (“BOIR”) requirements has granted the government’s request for a stay of that injunction pending appeal.

Why it Matters: This means that FinCEN is authorized to enforce the BOIR requirements, yet again. However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply with their BOI reporting obligations, FinCEN is generally extending the deadline 30 calendar days from February 19, 2025, for most companies. Read more.

———

  1. Fraser Trebilcock Welcomes Dakota A. Larson to the Firm

We are pleased to announce the hiring of Dakota A. Larson who will primarily work in the firm’s Lansing office.

Why it Matters: Ms. Larson focuses on insurance defense and business matters. She has experience handling complex liability, coverage, and bad faith claims in multiple lines of insurance and in multiple jurisdictions. Learn more.

———

  1. Sixth Circuit Upholds Employment Arbitration Provisions Without Explanation Requirement

The U.S. Court of Appeals for the Sixth Circuit recently ruled in Gavette v. United Wholesale Mortgage, LLC that employment arbitration provisions are binding even when employers don’t explain them to an employee or suggest seeking legal advice before signing.

Why it Matters: This decision reinforces that employees are responsible for documents containing arbitration provisions, regardless of their understanding of the terms, giving Michigan employers greater certainty that their arbitration agreements will be enforced without additional procedural requirements.

———

  1. Michigan Cannabis Exceeds $247 Million in January ‘25

Cannabis sales surpassed $247 million in January 2025, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $246,615,619.35, while medical sales came in at $710,061.91, totaling $247,325,681.26.

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.

Related Practice Groups and Professionals

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

Governor Whitmer Signs Bills Amending ESTA and Minimum Wage Laws

Minimum Wage & Tip Credit

Summary of Senate Bill No. 8[1]

Under this legislation, Michigan workers, including employees who receive gratuities within the course of their employment (“tipped workers”), will see an immediate increase in the minimum hourly wage $12.48, effective immediately. The minimum wage will then increase to $13.73 on January 1, 2026, and then to $15.00 on January 1, 2027, respectively. Beginning January 1, 2028, and each following year, the minimum wage will increase by the rate of inflation, provided unemployment remains below 8.5%.

For tipped employees, the minimum wage beginning February 21, 2025 is 38% of the minimum wage, and will increase by 2% incrementally each year through 2031.

Earned Sick Time

Summary of House Bill No. 4002[2]

Under this legislation, nearly all Michigan employers will be required to provide paid sick leave to covered employees. Employees of the United States government, set their own schedules, or work without pay[3], are excluded. However, each individual performing work on a full-time, part-time, or a temporary basis and those made available to work through the services of a temporary services or staffing agency is each counted as an employee; there is no accounting or consideration for full-time-equivalence.

Employee sick time accrual began immediately on February 21, 2025, or upon commencement of employee’s employment if occurring after that date. Employers with 10 or fewer employees are considered “small business” and are required to permit employees to accrue and use at least 40 hours of paid sick time. Employers with 11 or more employees are required to permit employees to accrue and use at least 72 hours of paid sick time. Accrual for both employees of both employer types is at the rate of 1 hour for every 30 hours worked; and employees are permitted to roll over accrued but unused time from year to year (note that workers may only use 72 hours of paid sick time each year, regardless of accrual of more time due to roll overs).

As an alternative to accrual and uncapped roll overs, employers can choose to “front load” employee sick time at the beginning of each year, provided the employees are front loaded the total amount of time they would accrue during the year and are permitted to begin using the sick time immediately.

Finally, the legislation expands the purposes for which earned sick time may be accrued or provided to include, diagnosis, care, or treatment of an employee (or their family member’s) mental or physical illness, injury, or health condition, as well as for certain domestic violence related absences, and public health emergencies. Advance notice of taking sick time may be required under employer policies in certain circumstances where the need is foreseeable.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions. When it matters in Michigan, we are the trusted legal advisors for businesses and individuals.


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.


Attorney David J. HoustonFraser Trebilcock Shareholder Dave Houston has over 40 years of experience representing employers in planning, counseling, and litigating virtually all employment claims and disputes including labor relations (NLRB and MERC), wage and overtime, and employment discrimination, and negotiation of union contracts. He has authored numerous publications regarding employment issues. You can reach him at 517.377.0855 or dhouston@fraserlawfirm.com.


Jennie Brooks is a law clerk at Fraser Trebilcock, currently 2L at Michigan State University College of Law.


[1] https://www.legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0008.

[2] https://www.legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4002.

[3] An individuals is not considered an “employee” under the act if they are engaged in service to an employer as an unpaid trainee or unpaid intern, or is employed in accordance with the youth employment standards act under MCL 409.101 to 409.124 or employed in accordance with an employer policy that both (a) allows the individual to schedule the individual’s own working hours and (b) prohibits the employer from taking adverse personnel action against the individual if the individual does not schedule a minimum number of working hours.

Five Stories That Matter in Michigan This Week – February 21, 2025

  1. Governor Whitmer Signs ESTA Bills Into Law

This morning, Michigan Governor Whitmer signed bills HB 4002 and SB 8, which amended the Earned Sick Time Act (ESTA) and the tipped minimum wage law standards that were set to go into effect February 21, 2025.

Why it Matters: Employers with 11 employees or more must offer 72 hours of paid sick leave, employers with 10 or fewer employees must offer 40 hours of paid sick leave, and employers are now allowed to frontload sick time. Minimum wage was increased to $12.48 beginning February 21, 2025, $13.71 on January 1, 2026, $15 on January 1, 2027, respectively. Beginning January 1, 2028, and each following year, the minimum wage will increase by the rate of inflation, provided unemployment remains below 8.5%. Read more from your Fraser Trebilcock attorney.

———

  1. FinCEN Update: CTA Reporting Requirement Back On

February 18, 2025, the United States District Court in Texas that had ordered the injunction that had paused enforcement of the Corporate Transparency Act’s (“CTA”) Beneficial Owner Information Reporting (“BOIR”) requirements has granted the government’s request for a stay of that injunction pending appeal.

Why it Matters: This means that FinCEN is authorized to enforce the BOIR requirements, yet again. However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply with their BOI reporting obligations, FinCEN is generally extending the deadline 30 calendar days from February 19, 2025, for most companies. Read more.

———

  1. Sixth Circuit Expands FMLA Coverage to Include Care for Adult Siblings

In Chapman v. Brentlinger Enterprises, the Sixth Circuit Court of Appeals ruled that employees may be eligible for FMLA leave to care for a seriously ill adult sibling if they can establish an “in loco parentis” relationship, reversing a lower court decision that had categorically excluded such care from FMLA coverage.

Why it Matters: This decision directly impacts Michigan employers by expanding potential FMLA obligations beyond traditional familial relationships to adult sibling care.

———

  1. Michigan CRA Publishes January ’25 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 January 2025 was $66.50, a decrease from $69.20 in December 2024. This is a decrease from January 2024, where the average price was $93.20.

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: Anatomy of a Data Breach

Data breaches can wreak havoc on your company and almost always lead to litigation. With each new breach, we gain valuable insight into what companies could have done better. Your legal, contractual, and business obligations can sometimes be confusing and in conflict with each other.

Why it Matters: During the March Business Education Series facilitated by Nate Steed and Kelly R. Hollingsworth, this session will examine recent cases and best practices to protect your company from a breach including: lessons learned from recent data breaches; proactive strategies to insulate your business. Learn more.

Related Practice Groups and Professionals

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

Five Stories That Matter in Michigan This Week – February 7, 2025

  1. Update: FinCEN – Supreme Court – CTA Injunction

FinCEN has given notice of its appeal in the Smith case: the lawsuit that led to the current nationwide injunction that makes Beneficial Ownership Information (BOI) reporting voluntary under the Corporate Transparency Act (CTA). If the court grants FinCEN’s appeal and lifts the injunction, BOI reporting would again become mandatory.

Why it Matters: In that event, the government has informed the court that FinCEN plans to implement a 30-day filing extension and “assess whether it is appropriate to modify the CTA’s reporting requirements to alleviate the burden on low-risk entities.” Read more.

———

  1. Michigan Cannabis Grower Wins $32M Verdict in Contract Dispute

A federal court jury awarded Michigan-based Hello Farms $32 million last week after finding that Curaleaf, a large cannabis company, breached its purchase agreement from 2020-2021. The dispute arose when Curaleaf, after purchasing only 2,000 of the contracted 16,000 pounds of cannabis, demanded to renegotiate the agreement due to rapidly falling market prices.

Why it Matters: This case highlights the significant challenges facing Michigan’s cannabis industry as it grapples with volatile market conditions and plummeting prices. Particularly for those operating under long-term purchase agreements, this verdict underscores the importance of carefully considering the various business and legal risks of making significant purchase production commitments in an unstable market environment. It’s crucial to seek out experienced legal counsel in such situations.

———

  1. U.S. Supreme Court’s Decision on TikTok

On January 17, 2025, the Supreme Court delivered a landmark decision in TikTok Inc. v. Garland, upholding the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act. TikTok argued that the law infringed upon its First Amendment rights, claiming that it was being unfairly targeted as a foreign adversary-controlled application and that the divestiture requirement placed an unconstitutional burden on free speech. However, the Supreme Court disagreed, ultimately finding that the Act was a content-neutral law that was not in violation of the First Amendment.

Why it Matters: This Supreme Court decision marks a pivotal moment in the ongoing struggle between the protection of technology-based free speech and national security concerns. When or if Congress considers applying the Act’s prohibitions to other social media platforms, how the Court addresses the constitutionality of those future challenges will be crucial to watch. Read more.

———

  1. Michigan CRA Issues Product Recall on Vapes Due to MCT Oil

The Michigan Cannabis Regulatory Agency recently released a bulletin on a voluntary product recall on certain vapes that were found to contain Medium Chain Triglyceride (MCT) Oil, which had been banned for use in 2024.

Why it Matters: The products affected are from the brand Platinum Vapes. MCT Oil is commonly used in inhalable cannabis products, such as vapes, and may pose dangers to respiratory health when inhaled. The CRA banned the use of MCT Oil starting October 1, 2024.

———

  1. Business Education Series: Anatomy of a Data Breach

Data breaches can wreak havoc on your company and almost always lead to litigation. With each new breach, we gain valuable insight into what companies could have done better. Your legal, contractual, and business obligations can sometimes be confusing and in conflict with each other.

Why it Matters: During the March Business Education Series facilitated by Nate Steed and Kelly R. Hollingsworth, this session will examine recent cases and best practices to protect your company from a breach including: lessons learned from recent data breaches; proactive strategies to insulate your business. Learn more.

Related Practice Groups and Professionals

Business & Tax | Robert D. Burgee
Cannabis Law | Sean Gallagher
Intellectual Property | Andrew Martin