FINCEN | Fraser Blog

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

CTA Update: Treasury Department Issues Statement

The United States Treasury Department recently issued a statement casting doubt on the future enforceability of the Corporate Transparency Act (CTA), at least in its current form. This is particularly relevant for US entities owned by US citizens. While not legally binding, Treasury’s guidance strongly signals that the rules enacting the CTA are likely to be rescinded or significantly revised before implementation. FinCEN has previously announced its intention to issue revised rules and updated reporting deadlines by March 21, 2025.

Why it Matters: Businesses that have already implemented CTA compliance processes, are advised to continue those efforts to ensure ongoing compliance. This recommendation remains in effect until FinCEN issues a new final rule or the law is formally amended. Read more from your Fraser Trebilcock attorney.

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Whitmer Proposes New Wholesale Tax on Marijuana Products in Road Funding Plan

Governor Whitmer’s $3 billion “MI Road Ahead Plan” proposes closing an alleged “loophole” by imposing a new wholesale tax on marijuana products, similar to taxes on tobacco, potentially generating $470 million for road repairs.

Why it Matters: While details remain scarce about what specific “loophole” is being addressed or how the tax would be structured and implemented, marijuana businesses in Michigan should stay apprised of new developments regarding this proposed tax.

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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.

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Keep Your Michigan Cottage in the Family

The family cottage is a place for fun and relaxation in Michigan. For many, the family cottage becomes the meeting place for generations and where lifelong memories are made. As a result, it’s often the intent of the owner to pass the cottage on to future generations to enjoy. Unfortunately, challenges such as high property taxes and family disputes can prevent that from happening. These obstacles can be overcome through careful cottage succession planning.

Why it Matters: If you own a cottage in Michigan, our Cottage Law team can help you think through the issues and take the actions necessary to create a cottage plan. A cottage plan usually addresses the concerns through the creative use of a limited liability company (LLC) or a trust to own the property. Learn more.

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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 April 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
Dakota Larson
Cottage Law | Mark Kellogg

CTA Update: Treasury Department Issues Statement

Important Update: The United States Treasury Department recently issued a statement casting doubt on the future enforceability of the Corporate Transparency Act (CTA), at least in its current form. This is particularly relevant for US entities owned by US citizens. While not legally binding, Treasury’s guidance strongly signals that the rules enacting the CTA are likely to be rescinded or significantly revised before implementation. FinCEN has previously announced its intention to issue revised rules and updated reporting deadlines by March 21, 2025.

Businesses that have already implemented CTA compliance processes, are advised to continue those efforts to ensure ongoing compliance. This recommendation remains in effect until FinCEN issues a new final rule or the law is formally amended.

Businesses that have not already filed Beneficial Owner Information Reports (BOIR) are advised to consult with legal counsel and monitor the rulemaking and legislative process for further developments. Foreign-owned entities doing business in the United States and US entities with foreign owners are advised to pay particular attention to such developments.

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.

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

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.

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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.

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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.

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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.

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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

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

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.

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FinCEN Update: CTA Reporting Requirement Back On

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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.

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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.

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Business Education Series: Anatomy of a Data Breach

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

FinCEN Update: CTA Reporting Requirement Back On

UPDATE: Beneficial Owner Information Reports Due by March 21, 2025 (click here for FinCEN Notice)

This means that FinCEN is authorized to enforce the BOIR requirements, yet again. However, in seeking the stay, government lawyers told the court that:

FinCEN intends to announce that it will extend the compliance deadline for thirty days. During that period, FinCEN intends to assess its potential options to prioritize reporting for those entities that pose the most significant national security risks while providing relief to lower-risk entities.

There is also legislation in Congress that would delay the enforcement of the CTA until January 1, 2026. That legislation unanimously passed the US House Of Representatives and is pending consideration in the US Senate.

Therefore, Reporting Companies, whether in existence prior to January 1, 2025, or created after that date, are advised to monitor this situation, and prepare to file their BOIR within the next thirty days.

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

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.

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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.

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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.

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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.

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Business Education Series: Anatomy of a Data Breach

Related Practice Groups and Professionals

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

UPDATE: FinCEN – Supreme Court – CTA Injunction

UPDATE: 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. 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.”

Given the U.S. Supreme Court’s prior decision to stay a similar injunction in Texas Top Cop Shop Inc., it would not be surprising if the Fifth Circuit Court of Appeals follows suit and grants the government’s request in this matter. But how FinCEN ultimately defines “low-risk entities” remains to be seen.

Therefore, as we have advised for several months, reporting companies should continue monitoring these proceedings, consult with legal counsel, and be prepared to file a BOIR when and if required.

Five Stories That Matter in Michigan This Week – January 24, 2025

Michigan House Passes Bills on Minimum Wage, Paid Sick Leave

This week, the Michigan House of Representatives passed HB 4001 and 4002, which address the coming changes to the minimum wage law and the Earned Sick Time Act (ESTA), respectively, and which are set to go into effect on February 21, 2025. Now the bills are sent to the Senate for consideration.

Why it Matters: This comes in response to a significant Michigan Supreme Court from last summer that reimplemented a citizen initiated law mandating raising minimum wage to $15 by 2028, phasing out the tipped minimum wage system, and requiring paid sick time for nearly every Michigan worker.

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Corporate Transparency Act Update – U.S. Supreme Court Lifts Nationwide Injunction –

On January 23, 2025, the United States Supreme Court granted the government’s request to lift one of the nationwide injunction that had been preventing enforcement of the Corporate Transparency Act (“CTA”). However, due to another similar injunction that was not addressed by the Court, FinCEN has provided the following guidance.

Why it Matters: As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports. Read more.

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Federal Court Strikes Down 2024 Title IX LGBTQ+ Protections

A federal judge in Kentucky recently invalidated the Biden administration’s 2024 Title IX regulations that would have expanded protections for LGBTQ+ students nationwide. The ruling found that the U.S. Department of Education exceeded its authority in attempting to broaden Title IX’s scope to include gender identity discrimination.

Why it Matters: While this ruling reverts federal standards back to 2020, Michigan schools must still comply with the state’s Elliott-Larsen Civil Rights Act, which protects students from discrimination based on gender identity, sexual orientation, and gender expression.

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Michigan Cannabis Exceeds $265 Million in December ‘24

Cannabis sales surpassed $265 million in December, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $264,689,198.93, while medical sales came in at $815,759.74, totaling $265,504,958.67.

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Business Education Series: Your Comprehensive Guide to Driving Employee Engagement

The workforce is facing challenges like talent shortages and quiet quitting, making it crucial to attract, engage, and retain employees. With 75% of turnover preventable, employers who create engaging environments focused on essential needs can better retain and attract talent.

Why it Matters: During the January Business Education Series, facilitated by Cheryl Kuch, Senior Consultant, Rehmann, discover what top organizations do to foster engagement and gain best practices to protect your most valuable asset—your people. Hosted at the Lansing Regional Chamber of Commerce. More information.

Related Practice Groups and Professionals

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

Corporate Transparency Act Update – U.S. Supreme Court Lifts Nationwide Injunction

UPDATE AS OF JANUARY 24, 2025

In response to the Supreme Court’s Order, FinCEN has provided the following guidance:

On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports. (Emphasis added). https://www.fincen.gov/boi

As a result of this guidance, Reporting Companies are advised to continue monitoring the situation and consult with legal counsel to determine next steps.

The United States Supreme Court today, January 23, 2025, granted the government’s request to lift the nationwide injunction that had been preventing enforcement of the Corporate Transparency Act (“CTA”). This continues a period of ping-ponging uncertainty for businesses and similar entities, the result of which is the restoration of the requirement for many companies (mostly small businesses and related entities) to file reports with the Financial Crimes Enforcement Network (FinCEN) disclosing their beneficial owners.

The injunction, originally issued by a U.S. District Court in Texas on December 5, 2024, had halted the CTA’s reporting requirements that were slated to begin on January 1, 2025. Subsequent conflicting orders from the Fifth Circuit Court of Appeals further complicated the matter and delayed the effective date.

What This Means for Businesses

With the injunction lifted, FinCEN can now enforce the CTA’s reporting requirements. “Reporting companies,” which include most small businesses and similar entities in the United States, must file Beneficial Ownership Information Reports (BOIRs) disclosing information about their beneficial owners.

Key Points for Businesses:

Gather Information: Businesses should immediately gather the necessary information about their beneficial owners to prepare for filing.
Consult with Counsel: Entities formed after January 1, 2025, that have not yet filed a BOIR should immediately consult with legal counsel, as they are subject to a 30-day filing deadline.
Filing Deadlines: FinCEN is expected to announce a new filing deadline for existing entities soon.

The lawyers at Fraser Trebilcock are closely monitoring this situation and will provide updates as they become available. We encourage businesses to contact us with any questions or concerns about complying with the CTA’s reporting requirements.

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

Five Stories That Matter in Michigan This Week – January 10, 2025

Michigan Minimum Wage Increase Reminder

On January 1, 2025, Michigan’s minimum wage increased from $10.33 to $10.56. On February 21, 2025, it will increase to $12.48. The minimum wage will continue to increase annually and reach $14.97 on February 21, 2028.

Why it Matters: Michigan employers will need to review and adjust their payroll systems, wage scales, and budgets to ensure compliance while considering potential compression issues with existing pay rates for more experienced workers.

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Michigan House Committee Advances Proposed FOIA Bills

The Michigan House Government Operations Committee recently advanced bills to the House floor that would, among other things, subject the legislature, governor, lieutenant governor and their executive offices the state’s Freedom of Information Act requirements.

Why it Matters: Only Michigan and Massachusetts currently have these types of exemptions in their FOIA laws. While the House Government Operations Committee’s actions keep the bills alive, it’s uncertain whether they will become law.

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13 Fraser Trebilcock Attorneys Honored by Leading Lawyers for 2025

Thirteen Fraser Trebilcock attorneys have been selected for inclusion in the list of Michigan’s Leading Lawyers for 2025, a distinction earned by fewer than five percent of all lawyers licensed to practice law in Michigan.

Why it Matters: Those selected include: H. Kirby Albright, Commercial Litigation; Land Use, Zoning & Condemnation Law; Real Estate Law: Commercial; Michael S. Ashton, Energy Law; Governmental, Municipal, Lobbying & Administrative Law; Public Utilities Law: Gas/Water/Electric; Douglas J. Austin, Land Use, Zoning & Condemnation Law; Real Estate Law: Commercial; Real Estate Law: Finance; Michael E. Cavanaugh, Commercial Litigation; Employment Law: Management; Governmental, Municipal, Lobbying & Administrative Law; Labor Law: Management; Michael P. Donnelly, Commercial Litigation; Jennifer Utter Heston, Energy Law; Governmental, Municipal, Lobbying & Administrative Law; Public Utilities Law: Gas/Water/Electric; David J. Houston, Employment Law: Management; Mark E. Kellogg, Closely & Privately Held Business Law; Tax Law: Individual; Trust, Will & Estate Planning Law; Thaddeus E. Morgan, Commercial Litigation, Construction Law; Melisa M.W. Mysliwiec, Elder Law; Michael H. Perry, Environmental Law; Gary C. Rogers, Bankruptcy & Workout Law: Commercial; Creditor’s Rights/Commercial Collections Law; Marlaine C. Teahan, Trust, Will & Estate Planning Law. Read more.

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IRS Announces 2025 Standard Mileage Rates

The IRS announced the 2025 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Beginning on January 1, 2025, the rate for business use is 70 cents per mile, an increase of 3 cents from 2024. However, the mileage rates for vehicles used for other purposes will remain unchanged from 2024.

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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FinCEN Petitions Supreme Court to Intervene

After a week and a half of yo-yoing federal court decisions affecting the implementation of the Corporate Transparency Act’s requirement for businesses and other entities to file Beneficial Owner Information Reports, the government has now petitioned the United States Supreme Court to weigh in.

Why it Matters: For now, the reporting requirement is once again “voluntary” per FinCEN’s guidance, but business owners and others are advised to pay close attention, as a decision by the Supreme Court could come swiftly. And if the injunction is lifted, any extension of the filing deadline is expected to be relatively short in light of the government’s arguments in the Application for a Stay and given the fact that FinCEN’s prior extension provided less than two additional weeks, moving the deadline from January 1, 2025, to January 13, 2025. Read more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Business & Tax | Robert D. Burgee