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 – June 23, 2023

  1. Client Alert: PCORI Fees Due by July 31, 2023!

In Notice 2022-59 the Internal Revenue Service set forth the PCORI amount imposed on insured and self-funded health plans for policy and plan years that end on or after October 1, 2022, and before October 1, 2023.

Why it Matters: Notice 2022-59 sets the adjusted applicable dollar amount used to calculate the fee at $3.00. Specifically, this fee is imposed per average number of covered lives for plan years that end on or after October 1, 2022, and before October 1, 2023. For self-funded plans, the average number of covered lives is calculated by one of three methods: (1) the actual count method; (2) the snapshot method; or (3) the Form 5500 method. Learn more from your Fraser Trebilcock attorney.

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  1. Michigan Legislation Aims to Make it Easier to Hire Teachers and Counselors

On Thursday, the Michigan House passed legislation—which cleared the Michigan Senate in April—that aims to reduce barriers for out-of-state teachers and school counselors to work in Michigan’s schools. Senate Bill 161 would change Michigan’s teacher certification requirements, and Senate Bill 162 would similarly ease the way for out-of-state counselors to work with Michigan students.

Why it Matters: Michigan schools, like many in other parts of the country, have faced staffing shortages similar to those other employers have struggled with.

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  1. 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.

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  1. New Distracted Driving Law Goes into Effect June 30

Beginning June 30, Michigan motorists will be prohibited from using any mobile electronic device while operating a motor vehicle, even if at a stop sign or red light. This includes sending/receiving texts, accessing social media, or recording videos.

Why it Matters: First time offenders will face a $100 fine and/or 16 hours of community service, in addition to one point being added to the individual’s driving record. Penalties will increase for repeated violations, and on the third offense, individuals may be required to take a drivers improvement course.

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  1. Fraser Trebilcock Attorney Obtains Dismissal for Firm Client

Fraser Trebilcock attorney Jared Roberts recently obtained a dismissal in a circuit court case brought against a brokerage and salesperson.

Why it Matters: In this case, which involved interpretation of transaction documents, a county “Time of Sale” well and septic inspection ordinance and water quality issues, Mr. Roberts obtained dismissal in the first responsive document. Learn more about their practice and how they may be able to assist.

Related Practice Groups and Professionals

Employee Benefits | Bob Burgee
Employee Benefits
Trusts & Estates | Elizabeth Siefker
Real Estate | Jared Roberts

Five Stories That Matter in Michigan This Week – June 9, 2023

  1. Michigan House Approves Bills to Protect Domestic and Sexual Violence Victims

The Michigan House of Representatives, in bipartisan fashion, voted on June 7 to approve a series of bills that aims to increase support services and add privacy protections for victims and survivors of domestic and sexual assault. For example, House Bill 4421 would allow photos and videos of crime victims to be blurred if they are viewable in court proceedings that are made public.

Why it Matters: Lawmakers who introduced the bills argue that the legislation will increase access to support services for domestic and sexual violence victims, and also will protect their privacy and shielding them from additional harassment.

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  1. Michigan Cannabis Sales Exceed $245 Million in May

Cannabis sales surpassed $245 million in May, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $238,867,535.00, while medical sales came in at $7,051,723.96, altogether totaling $245,919,258.96.

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. Client Alert: IRS Announces 2024 Adjustments for HSAs & Excepted Benefit HRAs

The IRS has released its 2024 annual inflation adjustments for Health Savings Accounts (“HSAs”) as determined under Section 223 of the Internal Revenue Code. Specifically, IRS Revenue Procedure 2023-23 provides the adjusted limits for contributions to a HSA, as well as the high deductible health plan (“HDHP”) minimums and maximums for calendar year 2024.

Why it Matters: HSA contributions for an individual will increase in 2024 to $4,150 from $3,850 in 2023, and the minimum deductible on a HDHP for an individual will increase to $1,600 in 2024 from $1,500 in 2023. Read more from your Fraser Trebilcock attorney.

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  1. NLRB General Counsel Issues Memo on Non-Competes

On May 30, NLRB General Counsel Jennifer Abruzzo issued a memo that non-compete provisions in employment contracts and severance agreements violate the National Labor Relations Act except in limited circumstances.

Why it Matters: The memo details that non-compete agreements hinder the ability of the employee from exercising their rights to take collective action to improve their working conditions, making these non-competes unlawful under Section 7 of the National Labor Relations Act.

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  1. Anti-Distracted Driving Laws Enforced June 30

Beginning June 30, Michigan motorists will be prohibited from using any mobile electronic device while operating a motor vehicle, even if at a stop sign or red light. This includes sending/receiving texts, accessing social media, or recording videos.

Why it Matters: First time offenders will face a $100 fine and/or 16 hours of community service, in addition to one point being added to the individual’s driving record. Penalties will increase for repeated violations, and on the third offense, individuals may be required to take a drivers improvement course.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Employee Benefits | Robert Burgee
Labor, Employment & Civil Rights | Dave Houston

Five Stories that Matter in Michigan This Week – July 1, 2022

Five Stories that Matter in Michigan This Week – July 1, 2022; Legal, Legislative, and Regulatory Insights


  1. Bills Easing Regulations on Michigan Child Care Providers Signed Into Law

Governor Whitmer recently signed into law Michigan House Bills 5041-5048, which increase the number of children family child care and group care homes can serve, and also lowers the minimum age for workers at such businesses.

Why it Matters: Many families struggle to find quality, affordable child care, which is partly to blame for the difficulty businesses in Michigan, and across the country, have had in finding workers over the last several years. In a statement, Governor Whitmer described child care as “the backbone of our economy.” The signing of this package of bills is also significant because it had support from Republicans and business groups, which may be a sign that more bipartisan legislation is on the way in the runup to the November elections.

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  1. Michigan Senate Judiciary Committee Approves Texting While Driving Bills

The Michigan Senate Judiciary Committee recently approved a package of bills expanding the scope of Michigan’s texting while driving laws, which would make requirements more stringent and penalties for violations more costly. The bills explicitly address social media use and live streaming.

Why it Matters: Distracted driving is dangerous. In 2020, according to the National Highway Traffic Safety Association, 3,142 people were killed in motor vehicle crashes involving distracted drivers. Distracted driving is also costly for drivers, as those who violate distracted driving laws tend to see their insurance rates shoot up.

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  1. Marijuana Prices Plummet 41% in Michigan

In a recent public meeting, Michigan Cannabis Regulatory Agency Director Andrew Brisbo stated that legal marijuana prices fell 41% over the past year in Michigan.

Why it Matters: With inflation surging across the economy, falling prices in the marijuana industry mean that profits may be hard to come by. One of the secondary effects of price deflation is the risk of what is called “potency inflation.” In general, marijuana that is more potent—higher THC levels—is more expensive. That can lead to “lab shopping,” which involves producers trying to find a testing lab that will deliver high THC results so that more can be charged to the consumer.

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  1. Housing Market Cools Following Historic Run-Up

The National Association of Realtors recently reported that existing-home sales in May dropped 3.4% from April (four consecutive months of declining sales) and by 8.6% since May of last year. The latest S&P CoreLogic Case-Shiller Index also shows home price growth slowing, as well as a jump in the inventory of homes for sale.

Why it Matters: The residential real estate market is an important indicator of, and driver of, economic vitality across the broader economy. The early signs of a slowdown in the real estate market correlates to increases in mortgage rates due to inflation. Rates for a 30-year mortgage have rocketed higher, from around 3% earlier this year to over 6%, which has significantly reduced buying power for many people.

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  1. Sixth Circuit Draws the “State Action” Line at a City Manager’s Personal Facebook Page

The Sixth Circuit issued an opinion earlier this week in a case involving a city manager who shared both personal and city-related content on his personal Facebook page. After the city manager deleted comments made by a disgruntled citizen on posts about city policies, the citizen sued alleging that his First Amendment rights were violated. The lower court dismissed the citizen’s lawsuit, and the Sixth Circuit affirmed, ruling that under the facts of this case the city manager’s actions did not constitute “state action.”

Why it Matters: In this 21st Century digital era, where there are virtually no barriers to communication, it’s said that we are all “publishers,” especially on social media. This case helps draw the line for municipalities and their employees as to what communications they engage in may constitute personal action vs. state action.


Related Practice Groups and Professionals

Insurance Defense | Emily Vanderlaan

Real Estate | Jared Roberts

Cannabis | Klint Kesto

Labor, Employment & Civil Rights | Aaron Davis