Five Stories that Matter in Michigan This Week – November 25, 2022

  1. U.S. Supreme Court Declines Challenge to 2018 Seattle Hotel Health Insurance Law

The U.S. Supreme Court on Monday, November 14, 2022, turned away a challenge to a 2018 Seattle law requiring hotels to pay for health insurance for low-wage workers.

Why it Matters: The justices declined to hear an appeal by a group called the ERISA Industry Committee (ERIC) of a lower court’s ruling that upheld the law. The U.S. Supreme Court’s decision not to take up the challenge could encourage other cities and states to adopt similar requirements intended to address the widespread lack of health insurance among low-wage employees. (as reported by Reuters on November 21, 2022.)

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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.

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  1. Business Planning for the Future

A lot of small-to-medium size businesses devote time and focus on their near-term future but may not think of what 5-10 years will bring. The value of a business can often be in the ability to transition it to a new owner, but some business owners are unsure how to set themselves up to be successful in this arena.

Why it Matters: Capitalizing on the ability to plan for the long-term will aid your business in any transitions that may occur. Learn more here.

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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. Sixth Circuit Rules that Notice is Required to Terminate Contract for Successive Performances

Under Section 440.2309(2) of Michigan’s Uniform Commercial Code, a contract that “provides for successive performances but is indefinite in duration” may be terminated at any time (without cause). However, as a U.S. Court of Appeals for the Sixth Circuit decision points out, reasonable notice of such termination must be provided, unless the requirement of notice is waived via the contract.

Why it Matters: The court’s ruling in the case of Stackpole International Engineered Products v. Angstrom Automotive Group is a reminder for buyers and sellers, especially in the manufacturing industry, who enter into contracts that provide for successive performances to work with experienced legal counsel in the drafting, review and enforcement of commercial contracts to avoid contractual disputes and litigation.

Related Practice Groups and Professionals

Employee Benefits | Sharon Goldzweig
Labor, Employment & Civil Rights | Aaron Davis
Business & Tax | Mark Kellogg
Business & Tax | Robert Burgee

Five Stories that Matter in Michigan This Week – November 18, 2022

  1. Proposed Modifications to Michigan Court Rules Seek to Make Pandemic-Inspired Changes Permanent, Making it Harder to Evict Tenants

During the COVID-19 pandemic, Michigan’s court rules related to landlord-tenant eviction procedures were modified in some ways to utilize video conferencing and to make certain proceedings more efficient, and modified in other ways that made it more difficult for landlords to evict residential and commercial tenants.

Why it Matters: Pursuant to recently proposed amendments to Michigan Court Rule 4.201, Michigan’s State Court Administrative Office has taken steps to make many pandemic-era changes to minimize evictions permanent. Some of the proposed rules are allowing a judge to adjourn trial for at least seven days if a default judgment is not entered, and staying an eviction case if a tenant has applied for rent assistance. Learn more from our Fraser Trebilcock real estate attorneys on the matter.

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  1. Michigan Small Business Growth Remains Strong

According to a recent report from the small Business Association of Michigan, Michigan’s entrepreneurial economy continues to grow. Among other things, SBAM’s Entrepreneurship Score Card shows that Michigan small businesses have outperformed U.S. averages in terms of the percentages of businesses being opened and revenue.

Why it Matters: Small businesses have always been the backbone of economic growth in Michigan and across the country. This report highlights the resilience of Michigan entrepreneurial economy.

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  1. Business Planning for the Future

A lot of small-to-medium size businesses devote time and focus on their near-term future but may not think of what 5-10 years will bring. The value of a business can often be in the ability to transition it to a new owner, but some business owners are unsure how to set themselves up to be successful in this arena.

Why it Matters: Capitalizing on the ability to plan for the long-term will aid your business in any transitions that may occur. Learn more here.

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  1. CRA Issues Michigan Consumer Advisory

Earlier this week, CRA issued a bulletin giving notice to consumers that a marijuana business that operates as both a state-licensed medical and adult-use recreational, Green Culture, sold unregulated products that may have contained several contaminants, such as mold and/or bacteria.

Why it Matters: Following the investigation, the CRA suspended both of Green Culture’s licenses. 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.

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  1. IRS Announces 2023 Cost-of-Living Adjustment for Retirement and Health and Welfare Benefit Plans

The Internal Revenue Service recently announced 2023 cost-of-living adjustments for retirement and health and welfare benefit plans. The significant adjustments reflect the increase in inflation over the last year. The adjustments are detailed in IRS Notice 2022-55. For example, the contribution limit for a Simple 401(k) will increase to $15,500 in 2023 from $14,000 in 2022, and for a Health FSA, limits will increase to $3,050 in 2023 from $2,850 in 2022.

Why it Matters: Business owners and employers should be aware of these adjustments and share this information with employees as we approach the new year. If you have any questions regarding these adjustments, please contact our Employee Benefits team.

Related Practice Groups and Professionals

Real Estate | Jared Roberts
Business & Tax | Mark Kellogg
Cannabis Law | Sean Gallagher
Employee Benefits | Robert Burgee