Five Stories that Matter in Michigan This Week – March 3, 2023

  1. DOL Issues Telework Guidance to Employers

On February 9, 2023, the U.S. Department of Labor (DOL) issued a Field Assistance Bulletin (Bulletin) addressing several questions related to compliance with the Fair Labor Standards Act (FLSA) and Family and Medical Leave Act (FMLA) when a business employs teleworkers.

Why it Matters: The Bulletin provides that the protections under the FLSA apply equally to employees who telework as to employees working at an office, factory, construction site, retail outlet, or any other worksite location. Learn more.

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  1. How Trademarks Protect Your Business

Trademarks operate to distinguish your business, build consumer goodwill and solidify your reputation as a source for the goods or services. In most cases, a trademark is a distinctive word, phrase, logo or design that is associated with or applied to a category of goods or services.

Why it Matters: If you are in the business of providing goods or services, then it is strongly recommended that you consult with an intellectual property lawyer to get the best protection in a timely manner. Learn more.

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  1. $35 Million in Grants Available for Small Nonprofits

The State of Michigan, Department of Labor and Economic Opportunity (LEO) and Michigan Nonprofit Association (MNA) have teamed up to help Michigan charities whose operations were impacted by the COVID-19 pandemic.

Why it Matters: Under this initiative, called the MI Nonprofit Relief Fund, grants in amounts between $5,000 and $25,000 will be awarded to selected entities with annual revenues total under $1 million. In addition, eligible entities must be based in Michigan and recognized by the IRS under Section 501(c)(3). Learn more.

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  1. Michigan Cannabis Sales Over $200 Million in January

Marijuana sales surpassed $200 million in January, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $196,008,634, while medical sales came in at $11,295,443.

Why it Matters: Marijuana sales remain strong in Michigan, particularly for recreational use. However, there still are significant concerns about profitability and market over-saturation that the industry is contending with.

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  1. The Ins and Outs of Cottage Succession Planning in Michigan (Part One)

When purchasing a cottage, it’s often the intent of the owner to pass the cottage on to future generations to enjoy. Unfortunately, that vision may not become a reality due to challenges such as high property taxes, differing objectives among heirs and resulting family disputes that result in the cottage being sold upon the owner’s death.

Why it Matters: Common issues that prevent the passing of a cottage to future generations in Michigan can be addressed through careful cottage succession planning. Learn more from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | Aaron Davis
Intellectual Property | Jared Roberts
Business & Tax | Robert Burgee
Cannabis Law | Sean Gallagher
Cottage Law | Mark Kellogg

DOL Issues Telework Guidance to Employers

As the modern workforce evolves, more and more employees are enjoying the flexibility of working from home, teleworking, or working away from the employer’s premises. These arrangements allow for greater work-life balance, increased productivity, and cost savings. However, as these teleworking arrangements become more common, it is important for both employers and employees to understand the protections and rights available under the law.

On February 9, 2023, the U.S. Department of Labor (DOL) issued a Field Assistance Bulletin (Bulletin) addressing several questions related to compliance with the Fair Labor Standards Act (FLSA) and Family and Medical Leave Act (FMLA) when a business employs teleworkers. While Field Assistance Bulletins do not have the effect of law, they are nonetheless important statements of DOL policy and statutory interpretation.

The Bulletin explains that under the FLSA, employees who telework are entitled to compensation for all hours worked, including short rest breaks. In qualifying circumstances, employees are also entitled to take breaks to express breast milk free from intrusion and shielded from view. The Bulletin provides that the protections under the FLSA apply equally to employees who telework as to employees working at an office, factory, construction site, retail outlet, or any other worksite location. This means that teleworking employees are entitled to the same compensation and protection as employees working at a traditional worksite.

Similarly, under the FMLA, all hours worked are counted for purposes of determining an employee’s eligibility for leave. The Bulletin provides that when an employee teleworks from home consistently or in combination with working at another or various worksites, all of those hours count towards determining eligibility for FMLA leave. However, the determination of the worksite for an employee who teleworks is fact-specific and will be based on factors such as where the employee reports to work or the location where the employee’s assignments are made.

In conclusion, teleworking arrangements provide numerous benefits to both employees and employers. However, it is important to remember that these arrangements do not exempt employees from the protections and rights afforded to them by the FLSA and FMLA. While the Bulletin doesn’t have the force of law, it’s an important indicator of DOL policy regarding FLSA and FMLA enforcement. Employers and employees must be mindful of the protections and rights the DOL describes are due to telework employees to ensure that teleworking arrangements are fair and equitable for all parties involved.

For questions or assistance, please contact your Fraser Trebilcock attorney.

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


Aaron L. Davis is Firm Vice President and Treasurer, and Chair of Fraser Trebilcock’s labor law practice. You can reach him at adavis@fraserlawfirm.com or (517) 377-0822. 

Five Stories that Matter in Michigan This Week – February 24, 2023

  1. $35 Million in Grants Available for Small Nonprofits

The State of Michigan, Department of Labor and Economic Opportunity (LEO) and Michigan Nonprofit Association (MNA) have teamed up to help Michigan charities whose operations were impacted by the COVID-19 pandemic.

Why it Matters: Under this initiative, called the MI Nonprofit Relief Fund, grants in amounts between $5,000 and $25,000 will be awarded to selected entities with annual revenues total under $1 million. In addition, eligible entities must be based in Michigan and recognized by the IRS under Section 501(c)(3). Learn more.

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  1. Michigan Cannabis Regulatory Agency Suspends Licenses, Issues Advisory

The Michigan Cannabis Regulatory Agency (CRA) recently suspended the licenses of a marijuana processor and issued a safety advisory for items manufactured with “illicit product.”

Why it Matters: This action is an important reminder to marijuana businesses in Michigan that the CRA is active in regulating businesses and taking enforcement action when appropriate. TAS Asset Holdings is the second processor to have its license suspended by the CRA this month. The CRA also announced disciplinary action against 10 marijuana businesses on February 10.

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  1. CRA Publishes January 2023 Data, Average Price Drops

Per recent monthly data published by the Cannabis Regulatory Agency, the average retail flower price of an ounce of cannabis is $80.16, an all-time low, and almost a 50% decrease compared to last year’s average price of $152.74.

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. Contact our cannabis law attorneys if you have any questions.

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  1. DOL Issues Telework Guidance to Employers

On February 9, 2023, the U.S. Department of Labor (DOL) issued a Field Assistance Bulletin (Bulletin) addressing several questions related to compliance with the Fair Labor Standards Act (FLSA) and Family and Medical Leave Act (FMLA) when a business employs teleworkers.

Why it Matters: The Bulletin provides that the protections under the FLSA apply equally to employees who telework as to employees working at an office, factory, construction site, retail outlet, or any other worksite location.

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  1. ERISA Health and Welfare Plan Voluntary Audit Service

Fraser Trebilcock is excited to introduce our Health and Welfare Plan Voluntary Audit Service to help businesses ensure their health and welfare plans are compliant with the Employee Retirement Income Security Act (ERISA).

Why it Matters: ERISA is a complex set of regulations that governs employee benefit plans, including health and welfare plans. Failure to comply with ERISA can result in costly fines and penalties, not to mention damage to your company’s reputation. Learn more from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Business & Tax | Robert Burgee
Cannabis Law | Sean Gallagher
Labor, Employment & Civil Rights | Aaron Davis
Employee Benefits | Robert Burgee

$35 Million in Grants Available for Small Nonprofits

The State of Michigan, Department of Labor and Economic Opportunity (LEO) and Michigan Nonprofit Association (MNA) have teamed up to help Michigan charities whose operations were impacted by the COVID-19 pandemic. Under this initiative, called the MI Nonprofit Relief Fund, grants in amounts between $5,000 and $25,000 will be awarded to selected entities with annual revenues total under $1 million. In addition, eligible entities must be based in Michigan and recognized by the IRS under Section 501(c)(3).

At this time, interested nonprofit organizations are being invited to complete an “Intent to Apply” form at MiNonprofitRelief.org, a website managed by MNA, who is responsible for managing the fund. Complete applications will be made available in March 2023.

Contact your Fraser attorney for further information and assistance in applying for this exceptional funding opportunity.

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


Attorney Robert D. BurgeeRobert D. Burgee is an attorney at Fraser Trebilcock’s Lansing office 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. He can be reached at bburgee@fraserlawfirm.com, or at 517.377.0848.


Headshot of attorney Edward J. CastellaniEdward J. Castellani is an attorney and CPA with Fraser Trebilcock with over three decades of experience handling business transactions. He may be contacted at ecast@fraserlawfirm.com or 517-377-0845.

Name, Image, Likeness Law for Student-Athletes Takes Effect in Michigan

Michigan House Bill 5217, which was passed into law in 2020, took effect on December 31, 2022. The new law set standards for how student-athletes can earn compensation for the use of their name, image, and likeness (“NIL”) in Michigan. The NCAA also has its own NIL policy, which took effect on July 1, 2021.

It’s important that Michigan student-athletes, covered higher education institutions, and businesses ensure that NIL deals comply not only with NCAA rules and regulations, but also with the new standards that will apply in the State of Michigan.

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.

The law also places certain limitations and obligations upon student-athletes, including:

  • Prior to entering into any endorsement agreement, the student-athlete must disclose the proposed opportunity to a university-designated official at least seven days prior to committing to the opportunity or contract.
  • Student-athlete endorsers are prohibited from entering into an apparel contract if that contract or promotional relationship conflicts with any provision of their school’s existing apparel contract.
  • Restrictions on the use of the name, trademarks, service marks, logos, symbols, or other intellectual property of their university in conjunction with the student-athletes use of their name, image or likeness.

This is an evolving area of the law in Michigan and throughout the country. There is some speculation that a new federal law will be passed standardizing how NIL works throughout the country. Currently, however, the restrictions and obligations on parties participating in NIL deals must be discerned from a patchwork of NCAA rules and regulations, state laws, and university policies. For questions or assistance, please contact Ryan Kauffman.

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


Ryan K. Kauffman is a Shareholder at Fraser Trebilcock with more than a decade of experience handling complex litigation matters. You can contact him at rkauffman@fraserlawfirm.com or 517.377.0881.

Five Stories that Matter in Michigan This Week – February 3, 2023

1. Michigan Legislature Expands EITC Credit

The Michigan legislature recently passed a bill expanding Michigan’s Earned Income Tax Credit (EITC). The approved legislation retroactively increased the state’s EITC to 30% of the federal credit, where it is estimated to impact over 700,000 low-income workers.

Why it Matters: Per the Michigan League for Public Policy, upping the state’s EITC credit means that for individuals and their families who are eligible can receive an average of $750 credit per family.

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2. CRA Publishes December 2022 Data, Average Price Drops

According to recent monthly datapublished by the Cannabis Regulatory Agency, the average retail flower price of an ounce of cannabis is $90.68, an all-time low and more than a 50% decrease compared to last year’s December 2021 average price of $184.90.

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. Contact our cannabis law attorneysif you have any questions.

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3. Michigan Legislature Approves $1.1 Billion Supplemental Spending Bill

The Michigan Legislature on Thursday approved a supplemental spending bill totaling $1.1 billion over two years. The spending includes $150 million to deposit into the state’s Strategic Outreach and Attraction Reserve Fund, which the state has used to pay major incentives to manufacturers with plans to build batteries and electric vehicles, and $150 million to develop a tax credit program to reduce housing costs.

Why it Matters: The bill, one of the first acts of the Democrat-controlled legislature, generated some controversy. Republicans complained that there was insufficient time to review the bills, and raised questions about how some of the spending is to be allocated.

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4. Upcoming Changes to 529 Plans Following SECURE Act 2.0

President Biden signed the SECURE Act 2.0 into law on December 29, 2022. Under certain conditions, Section 126 of the Act will amend the IRS Code to allow tax and penalty free rollovers from 529 accounts to Roth IRAs.

Why it Matters: There has been a decline in 529 accounts because families are worried about needing to take non-qualified withdrawals of leftover funds within the account, thus incurring a penalty. Section 126 will provide individuals with an option to make better use of leftover funds within a 529 account. Section 126 will become effective with respect to distributions after December 31, 2023. Learn more on the topic.

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5. What You Need to Know About Pet Trusts

A pet trust is a legal document that allows you to provide for the care of your beloved pet if you become incapacitated and after you pass away. A pet trust can be created as a standalone document, or as part of a revocable (living) trust or will. In addition, a durable power of attorney can provide instructions to an agent for the care of a pet during your lifetime.

Why it Matters: Estate planning with pets in mind is an increasingly popular way for pet owners to ensure that their furry companions are taken care of, even when the owners can no longer care for themselves. Learn more about how to effectively care for your pets if you become incapacitated or pass away.


Related Practice Groups and Professionals

Business & Tax | Ed Castellani
Cannabis Law | Sean Gallagher
Labor, Employment & Civil Rights | Aaron Davis
Trusts & Estates | Elizabeth Siefker

SECURE Act 2.0 and Changes to 529 Accounts

President Biden signed the SECURE Act 2.0 into law on December 29, 2022. Under certain conditions, Section 126 of the Act will amend the IRS Code to allow tax and penalty free rollovers from 529 accounts to Roth IRAs.

Under this Section, a beneficiary of a 529 account is permitted to rollover up to $35,000 over their lifetime from any 529 account in their name to a Roth IRA.  These rollovers will be subject to Roth IRA annual contribution limits, and the 529 account must have been open for more than 15 years.

There has been a decline in 529 accounts because families are worried about needing to take non-qualified withdrawals of leftover funds within the account, thus incurring a penalty. Section 126 will provide individuals with an option to make better use of leftover funds within a 529 account. Section 126 will become effective with respect to distributions after December 31, 2023.

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


Attorney Elizabeth M. Siefker

Elizabeth M. Siefker is an attorney at Fraser Trebilcock in the trusts and estates practice group focusing on estate planning, elder law, and business planning. You can reach her at esiefker@fraserlawfirm.com, or at 517.377.0801.

Canada’s Ban on Foreign Homebuyers

As of January 1, 2023, Canada has restricted the purchase of residential property by non-Canadians. The Government of Canada has enacted the Prohibition on the Purchase of Residential Property by Non-Canadians Act in an effort to stabilize the Canadian housing market and help make homes more affordable for Canadian citizens and those living in Canada. Passed by the Canadian Parliament in June of 2022, this new legislation prevents non-Canadians and corporations controlled by non-Canadians from purchasing, directly or indirectly, any residential property in Canada for two years.

The Act defines residential property as any real property that is a detached home or similar building which contains no more than three dwelling units, as well as semi-detached homes, rowhouses, or condominiums, and vacant land zoned for residential and mixed-use. Thus, the legislation does not explicitly ban the purchase of larger buildings with multiple units.

A key parameter in the Act’s accompanying Regulations notes that this legislation will only apply to properties located in a “Census Metropolitan Area” or a “Census Agglomeration.” A census metropolitan area has a total population of at least 100,000, with at least 50,000 living in its core, while a census agglomeration has a core population of at least 10,000 people, based on data from the previous Census of Population Program. Thus, homes and recreational properties, such as cottages and lake houses, located outside of Census Metropolitan Areas or Census Agglomerations will not be considered residential property and not subject to the ban.

The Act further lays out exceptions to specific categories of individuals who will be allowed to purchase residential properties in the two-year period. There is no ban on the purchase of property by Canadian citizens, persons registered under the Indian Act, and permanent residents. Refugees, buyers with Canadian spouses or partners, and temporary residents studying or working in Canada, all meeting specific criteria, are not subject to the ban. Additionally, the new legislation will not affect individuals who acquire an interest or a real right resulting from death, divorce, separation, or a gift.

Banned individuals who violate the prohibition may be subject to a penalty of up to $10,000 CDN and may be forced to sell the property purchased, “receiving no more than the purchase price paid.” In addition, those who knowingly assist a non-Canadian in “contravening the prohibition” may also be subject to the fine.

The prohibition does not apply if a non-Canadian becomes liable or assumes liability under an agreement of purchase and sale of residential property prior to January 1, 2023.

To learn more about how this may affect your potential of purchasing of a home or vacation property in Canada, please contact us.

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


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.

FTC Proposes Rules Banning Non-Compete Agreements for Workers

On January 5, 2023, the Federal Trade Commission (FTC) published a proposed rule that would effectively ban the use of non-compete clauses in most employment agreements. The FTC’s guidance in proposing the rule says that 1-in-5 American workers are bound by some form of non-compete clause or agreement.

While the rulemaking may be a new step for the FTC, its purpose is in step with the Agency’s recent decisions; an example of which is included in the press release announcing the rulemaking, “This [rulemaking] aligns with the FTC’s recent statement to reinvigorate Section 5 of the FTC Act, which bans unfair methods of competition. The FTC recently used its Section 5 authority to ban companies from imposing onerous noncompetes on their workers. In one complaint, the FTC took action against a Michigan-based security guard company and its key executives for using coercive noncompetes on low-wage employees.”

These regulations (if adopted) will have wide-ranging impacts across many sectors of the economy. Employers should keep a close eye on these rules and be prepared to amend or revise their employment agreements accordingly. The attorneys at Fraser Trebilcock will continue to monitor this situation and provide updates as the rulemaking process unfolds.

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


Attorney Robert D. BurgeeRobert 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 6, 2023

  1. The Federal “Speak Out Act” Takes Effect

The Speak Out Act took effect on December 7, 2022, which prohibits employers from requiring employees to sign pre-dispute agreements that contain nondisclosure clauses or non-disparagement clauses that would have the effect of silencing employees concerning claims of sexual harassment or sexual assault.

Why it Matters: Requiring employees to sign such agreements is now a violation of federal law. Employers should review their current employee confidentiality agreements and revise them as necessary, keeping in mind that many state laws also limit what terms can be included in an NDA or similar agreements.

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  1. IRS Announces 2023 Standard Mileage Rates

The IRS announced the 2023 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Beginning on January 1, 2023, the rate for business use is 65.5 cents per mile, an increase of 3 cents from the 2022 midyear rate.

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.

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  1. FTC Proposes Rules Banning Noncompete Agreements for Workers

On January 5, 2023, the Federal Trade Commission (FTC) published a proposed rule that would effectively ban the use of non-compete clauses in most employment agreements. The FTC’s guidance in proposing the rule says that 1-in-5 American workers are bound by some form of non-compete clause or agreement.

Why it Matters: These regulations (if adopted) will have wide-ranging impacts across many sectors of the economy. Employers should keep a close eye on these rules and be prepared to amend or revise their employment agreements accordingly.

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  1. Fed Issues Final LIBOR Replacement Rule

The United Kingdom’s Financial Conduct Authority (FCA), announced that the U.S. dollar LIBOR will cease after June 30, 2023. On December 16, 2022, the Federal Reserve Board issued its final rule governing the replacement of LIBOR as an interest rate benchmark.

Why it Matters: The final rule is complex. Businesses using LIBOR as a benchmark or index should make note of this upcoming change. Fraser Trebilcock attorneys will continue to monitor the situation and provide updates. Contact your Fraser Trebilcock attorneys if you have any questions.

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  1. Estate and Lifetime Gift Tax Exemption Update

Per the IRS, the 2023 Estate and Lifetime Gift Tax Exemption has increased from $12.06 million to $12.92 million. Additionally, the use of electronic signatures for Estate and Gift Tax forms has been extended to October 31, 2023.

Why it Matters: Individuals should take note of the increase in 2023 and plan accordingly. If you have any questions, please contact your Fraser Trebilcock estate planning attorney.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | Aaron Davis
Business & Tax | Mark Kellogg
Business & Tax | Robert Burgee
Business & Tax | Norb Madison
Trusts & Estates | Marlaine Teahan