Five Stories That Matter in Michigan This Week – April 25, 2025

  1. Michigan Supreme Court Rules that Vehicle Search Based on Smelling Marijuana Alone is not Allowed

In early April, the Michigan Supreme Court, in a 5-1 decision, ruled that the smell of marijuana cannot be the sole reason for police to search a car without a warrant.

Why it Matters: The court’s ruling struck down a 25-year-old precedent. The court explained: “[I]n light of the voters’ intent to legalize marijuana usage and possession, the smell of marijuana, standing alone, no longer constitutes probable cause sufficient to support a search for contraband.”

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  1. Michigan CRA Scheduling Public Hearing Over Proposed Rule Changes

The Michigan CRA is scheduling a public hearing for the purpose of receiving public comment on the proposed rule set2023-25 LR (Marihuana Rules).

Why it Matters: Some of the proposed rule changes include requiring licensees to notify the CRA prior to making a change to their business structure (for example LLC to a C-Corp), requiring licensees to provide up to date contact information for their business, and requiring applicants to notify the CRA within 10 days if there are any new lawsuits, legal proceedings, charges, etc., related to the applicant.

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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. Business Education Series: From Inbox to Impact – Optimize Email Marketing and Website Performance

Creating impactful email campaigns using 2025’s best practices while keeping your subscribers engaged and avoiding outdated pitfalls is essential for businesses in this day and age. On top of that, you need to make sure that your website and digital presence is up to date and active.

Why it Matters: During the May Business Education Series facilitated by Jacki Krumnow of Now Marketing and Joe Ford of Netvantage SEO, this session will help you measure website health and digital campaign performance effectively, as well as creating impactful email campaigns. Whether you’re starting fresh or refining your approach, this session is packed with actionable insights, tools, and insider advice to boost your marketing efforts. Learn more.

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  1. How to Calculate Post Judgment Interest Rates in Michigan

Michigan post judgment interest rates are often considered a confusing aspect of determining the value of a final judgment.

Why it Matters: If an attorney does not understand how to determine the value of a post judgment interest, they are leaving money on the table that could otherwise be in their client’s pockets. Read more from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Trusts & Estates | Elizabeth Siefker
Business & Tax | Andrew Martin

Five Stories That Matter in Michigan This Week – April 11, 2025

  1. Michigan Supreme Court Declines to Fast-Track Legislative Dispute

The Michigan Supreme Court has rejected a request to bypass the Court of Appeals in a constitutional clash between the Michigan Senate Democratic Majority Leader and Republican House over nine bills. The dispute centers on the decision to withhold bills passed by the previous Legislature from reaching Governor Whitmer’s desk, with Democrats arguing this violates the state constitution.

Why it Matters: While the Court of Claims ruled in February that the bills should go to the governor, it declined to enforce this decision, highlighting the delicate balance between judicial oversight and legislative independence in Michigan’s governance structure as partisan tensions continue to impact policy implementation.

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  1. Michigan Supreme Court Rules Cannabis Odor Insufficient Probable Cause for Vehicle Search

The Michigan Supreme Court in a 5-1 decision ruled that cannabis odor alone is insufficient probable cause to search a vehicle when police officers are conducting traffic stops or other situations.

Why it Matters: This ruling stems from a 2020 case where police officers were conducting a compliance check observed a vehicle parked on the side of the street and smelled burnt cannabis odor, leading them to question the two individuals who were in the car. It led to the officers asking the individuals to get out of the car, which led to an officer noticing a handgun on the passenger seating, resulting in an arrest of one individual.

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  1. Michigan CRA Publishes March ’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 March 2025 was $65.14, a decrease from $65.21 in February 2025. This is a decrease from March 2025, where the average price was $90.70.

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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  1. Business Education Series: From Inbox to Impact – Optimize Email Marketing and Website Performance

Creating impactful email campaigns using 2025’s best practices while keeping your subscribers engaged and avoiding outdated pitfalls is essential for businesses in this day and age. On top of that, you need to make sure that your website and digital presence is up to date and active.

Why it Matters: During the May Business Education Series facilitated by Jacki Krumnow of Now Marketing and Joe Ford of Netvantage SEO, this session will help you measure website health and digital campaign performance effectively, as well as creating impactful email campaigns. Whether you’re starting fresh or refining your approach, this session is packed with actionable insights, tools, and insider advice to boost your marketing efforts. Learn more.

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  1. Fraser Trebilcock Attorney Obtains Complete Dismissal for Firm Client

Fraser Trebilcock Shareholder and Firm Secretary Jared A. Roberts recently obtained complete dismissal of a Bureau of Professional Licensing Complaint for the firm’s client.

Why it Matters: In this instance, the real estate salesperson’s meticulous preservation of all documents, emails, and text messages were key to establishing a timeline that disproved the allegations. Mr. Roberts advises real estate salespeople to preserve everything and move every scrap into their digital deal file after closing. Read more.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Real Estate | Jared Roberts

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

  1. Corporate Transparency Act BOI Reporting Requirements Deadline is Here

Friday, March 21, 2025, is the deadline for most reporting companies to file their beneficial ownership information (BOI) reports as required by FinCEN under the Corporate Transparency Act (CTA).

Why it Matters: While there is pending legislation that would delay the enforcement of the CTA until January 1, 2026, companies should adhere to the reporting requirements now to avoid any fines or penalties. Contact your Fraser Trebilcock attorney if you have any questions or need assistance.

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  1. Elizabeth M. Siefker Selected as a Member of Michigan Lawyers Weekly “Up & Coming Lawyers Class of 2025”

Fraser Trebilcock attorney ​Elizabeth M. Siefker has been selected as a member of Michigan Lawyers Weekly’s “Up & Coming Lawy​ers Class of 2025.” This special award recognizes those who have excelled in the profession and are standouts among their peers — all in their first 10 years of practice.

Why it Matters: Ms. Siefker focuses her practice on estate planning, elder law, guardianships and conservatorships, probate litigation, and tax planning. With experience assisting clients in every aspect of the estate planning process, she understands that each plan will be unique to the client’s situation. Ms. Siefker is included in Super Lawyers® as a “Michigan Rising Star” in Estate & Probate, and received the American Jurisprudence Award for civil procedure, contracts, first amendment, and torts. She is an active member of several legal organizations, having previously served on the Board of Directors of the Women Lawyers Association of Mid-Michigan as the Regional Representative. Read more.

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  1. Michigan Cannabis Industry Faces Price Pressure Despite High Sales Volume

According to the Michigan Cannabis Regulatory Agency, Michigan cannabis sales reached $241.3 million in February, down 7.6% year-over-year, with adult-use sales decreasing 4.7% to $246.6 million while medical sales fell 71.1% to just $0.6 million. The average flower price hit a new low of $1,043 per pound, falling 29.1% from last year and 2.0% from January.

Why it Matters: While Michigan’s cannabis market maintains substantial sales volume (despite a slight 3.0% decline in early 2025), the continuing downward trend in prices is creating significant profitability challenges for industry operators. Expanding supply and competition are forcing cannabis businesses to adapt to thinner margins and more challenging business conditions.

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  1. Michigan Supreme Court Upholds Victory for Firm’s Client

Fraser Trebilcock attorneys Michael P. Donnelly and Laura S. Faussié successfully represented a fiber optic company before the Michigan Supreme Court. On January 24, 2025, the Court, after hearing oral argument from the parties, denied an application for leave to appeal in a case involving the firm’s client, a fiber optic company, effectively upholding the lower courts’ decisions in the client’s favor. The case addressed whether a fiber optic or other telecommunication company was required to obtain permission from, and pay large fees to, a railroad company before installing fiber optic cables under their tracks located at public crossings.

Why it Matters: In a 5-1 decision, with one justice not participating, the Supreme Court left in place the Michigan Court of Appeals’ ruling that the fiber optic company could proceed with installing underground cables beneath railroad tracks at public road crossings after obtaining necessary municipal permits, without requiring additional permission from or fees to the railroad company. Read more.

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  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 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
Elizabeth Siefker
Cannabis Law | Sean Gallagher
Litigation | Michael Donnelly
Litigation | Laura Faussié

Five Stories That Matter in Michigan This Week – March 14, 2025

  1. Michigan Federal Court Rules that CTA is Unconstitutional 

Shortly after the U.S. Department of Treasury announced a suspension of enforcement the Corporate Transparency Act (CTA), the U.S. District Court of the Western District of Michigan ruled in Small Business Association of Michigan, et al v. Yellen, et. al. that the CTA’s reporting requirements violated the Fourth Amendment of the U.S. Constitution.

Why it Matters: While the ruling applies only to plaintiffs who brought the case (such as members of the Small Business Association of Michigan), it may influence other courts’ considering similar constitutional challenges to the CTA throughout the country.

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  1. Michigan Supreme Court Upholds Victory for Firm’s Client

Fraser Trebilcock attorneys Michael P. Donnelly and Laura S. Faussié successfully represented a fiber optic company before the Michigan Supreme Court. On January 24, 2025, the Court, after hearing oral argument from the parties, denied an application for leave to appeal in a case involving the firm’s client, a fiber optic company, effectively upholding the lower courts’ decisions in the client’s favor. The case addressed whether a fiber optic or other telecommunication company was required to obtain permission from, and pay large fees to, a railroad company before installing fiber optic cables under their tracks located at public crossings.

Why it Matters: In a 5-1 decision, with one justice not participating, the Supreme Court left in place the Michigan Court of Appeals’ ruling that the fiber optic company could proceed with installing underground cables beneath railroad tracks at public road crossings after obtaining necessary municipal permits, without requiring additional permission from or fees to the railroad company. Read more.

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  1. Thaddeus E. Morgan Selected as a Member of Michigan Lawyers Weekly “Hall of Fame Class of 2025”

Fraser Trebilcock Shareholder Thaddeus E. Morgan has been selected as a member of Michigan Lawyers Weekly’s “Hall of Fame Class of 2025.” 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.

Why it Matters: This special award recognizes esteemed members of the legal profession who have been in practice for at least 30 years. These lawyers truly are legends, making their mark in the courtroom or the boardroom, in their firms and with community organizations, and with local, state and national bar associations. Read more.

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  1. Michigan Treasury to Distribute Nearly $100 Million from Marijuana Tax

The Michigan Treasury Department announced in February its plan to distribute nearly $100 million to 302 local entities and tribes as part of the Michigan Regulation and Taxation of the Marijuana Act.

Why it Matters: 108 cities, 36 villages, 80 townships, 74 counties, and 4 tribes will receive these payments. According to the state, this means for every licensed store and microbusiness in their respective jurisdiction, they will receive over $58,200.

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  1. 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.

Related Practice Groups and Professionals

Business & Tax | Robert D. Burgee
Litigation | Michael Donnelly
Litigation | Laura Faussié
Thaddeus Morgan
Cannabis Law | Sean Gallagher
Cottage Law | Mark Kellogg

Five Stories That Matter in Michigan This Week – September 20, 2024

  1. Michigan Supreme Court Clarifies Minimum Wage Ruling

The Michigan Supreme Court released an order following Attorney General Dana Nessel’s recent request for clarification from the Court on certain issues, including a precise start date for calculating inflations, related to the Court’s recent “adopt and amend” minimum wage and sick leave ruling in the case of Mothering Justice v Attorney General.

Why it Matters: Per the Court’s ruling, increases to the state’s minimum wage and tipped wage laws, and the expansion of the state’s earned sick time laws, will go into effect February 21, 2025. The Court’s order clarified the tipped minimum wage and date of annual increases, as well as specified new minimum wage rates. You can find the order here.

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  1. Michigan Cannabis Sales Grow Despite Ohio Starting Recreational Sales

According to the Detroit Free Press, Ohio cannabis dispensaries sold nearly $55 million in recreational cannabis in August—the state’s first month of legal recreational sales. Michigan recreational sales increased 3% month over month, and 9% year over year, in August.

Why it Matters: There has been quite a bit of speculation about what impact Ohio’s recreational sales would have on Michigan’s cannabis marketplace. So far, Michigan seems to be continuing its growth trajectory.

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  1. Michigan Cannabis Exceeds $295 Million in August ‘24

Cannabis sales surpassed $295 million in August, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $294,151,545.18, while medical sales came in at $1,260,707.52, totaling $295,412,252.70.

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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  1. Business Education Series: Avoid the Five Business Dangers

On Wednesday, October 30, Tom Hamp, Hamp Business Coaching, will delve into the critical issues of poor leadership skills and their impact on organizational success, explore strategies to overcome underperforming sales, and discuss the consequences of ineffective marketing. Additionally, we will examine the importance of robust human capital management and the detrimental effects of financial mismanagement. This seminar is designed to provide practical solutions and actionable insights to help you navigate and resolve these common business problems effectively.

Why it Matters: Learn how to understand your business’s financials, understand profit and loss and use it to your advantage. Also learn how leadership impacts staff and how to manage employees better by increasing leadership skills. Full information and to register.

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  1. Intellectual Property and Rebranding: What Business Leaders Need to Know

Rebranding a business is exciting. It’s often done at a time of growth and transformation, such as a merger or acquisition, when a business is launching an important new product, entering a new geographic market, or trying to appeal to a new customer demographic. Whether you’re updating your logo, changing your company name, or overhauling your entire brand identity, it’s a big step that can lead to great opportunities.

Why it Matters: But before you dive into the creative process, it is crucial to consider the intellectual property (IP) law implications of a rebrand. Your brand is one of your most valuable assets, and rebranding involves important legal considerations that can impact your business’s future. In this article, we’ll walk you through some key IP issues you need to consider when rebranding. These considerations will help you protect your new identity and avoid costly legal pitfalls along the way. Read more.

Related Practice Groups and Professionals 

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

Five Stories That Matter in Michigan This Week – August 16, 2024

  1. Student Can’t Bring an ELCRA Hostile Environment Claim Against School Due to Harassment from Another Student

In Doe v Alpena Public School District, the Michigan Supreme Court recently ruled that a school cannot be held liable on a theory of vicarious liability under the Elliott-Larsen Civil Rights Act for student-on-student misconduct.

Why it Matters: The Court’s ruling draws a distinction between the employment context, where such vicarious liability claims are permitted, and the school context for actions taken by non-employees, such as students.

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  1. Michigan Supreme Court Rules on Adopt and Amend: What Businesses Need to Know

In Mothering Justice v Attorney General, a 105-page, 4-3 party-line decision, the Michigan Supreme Court ruled that the state Legislature lacked the authority to “adopt and amend” two employment-related ballot initiatives in 2018. In its ruling, the Court ordered that increases to the state’s minimum wage and tipped wage laws, and the expansion of the state’s earned sick time laws will go into effect February 21, 2025.

Why it Matters: Employers will need to educate their staff on these changes, adjust payroll systems, and ensure their company’s policies are updated to reflect the new laws before the February 21, 2025, deadline to remain compliant. Learn more.

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  1. Michigan Cannabis Exceeds $287 Million in July ‘24

Cannabis sales surpassed $278 million in July, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $286,388,987.71, while medical sales came in at $1,354,084.70, totaling $287,743,072.45.

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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  1. Comment Period Ends for Federal Cannabis Rescheduling

On May 20, the U.S. Department of Justice and the Drug Enforcement Administration issued a Notice of Proposed Rulemaking to initiate the proposed rescheduling of cannabis from Schedule I to Schedule II under the Controlled Substance Act. A 60-day public comment period then began, which ended in late July.

Why it Matters: Following the end of the public comment period, the DEA will review the public comments, may incorporate comments as appropriate, and then finalize the rescheduling rule. Typically, a final rule becomes effective 30 days after being published in the Federal Register.

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  1. IRS Resumes Processing Some Employee Retention Credit Claims: What Business Owners Need to Know

The Internal Revenue Service (IRS) recently announced the resumption of processing some Employee Retention Credit (ERC) claims, with a focus on those considered “low risk.” This move comes after a 10-month moratorium implemented to investigate fraudulent activity surrounding these claims. In the same announcement, the IRS communicated its plans to deny tens of thousands of improper high-risk ERC claims.

Why it Matters: According to the IRS, between 10% and 20% of the claims it analyzed fall into what the agency considers the highest-risk group. An estimated 60% to 70% of claims show what the IRS terms an “unacceptable level of risk.” The remaining claims, approximately 10% to 20%, are considered low-risk, and according to the IRS, “some of the first payments in this group will go out later this summer.” Read more.

Related Practice Groups and Professionals

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

Five Stories That Matter in Michigan This Week – August 9, 2024

  1. Michigan Supreme Court Rules on Adopt and Amend: What Businesses Need to Know

In Mothering Justice v Attorney General, a 105-page, 4-3 party-line decision, the Michigan Supreme Court ruled that the state Legislature lacked the authority to “adopt and amend” two employment-related ballot initiatives in 2018. In its ruling, the Court ordered that increases to the state’s minimum wage and tipped wage laws, and the expansion of the state’s earned sick time laws will go into effect February 21, 2025.

Why it Matters: Employers will need to educate their staff on these changes, adjust payroll systems, and ensure their company’s policies are updated to reflect the new laws before the February 21, 2025, deadline to remain compliant. Learn more.

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  1. IRS Resumes Processing Some Employee Retention Credit Claims: What Business Owners Need to Know

The Internal Revenue Service (IRS) recently announced the resumption of processing some Employee Retention Credit (ERC) claims, with a focus on those considered “low risk.” This move comes after a 10-month moratorium implemented to investigate fraudulent activity surrounding these claims. In the same announcement, the IRS communicated its plans to deny tens of thousands of improper high-risk ERC claims.

Why it Matters: According to the IRS, between 10% and 20% of the claims it analyzed fall into what the agency considers the highest-risk group. An estimated 60% to 70% of claims show what the IRS terms an “unacceptable level of risk.” The remaining claims, approximately 10% to 20%, are considered low-risk, and according to the IRS, “some of the first payments in this group will go out later this summer.” Read more.

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  1. Comment Period Ends for Federal Cannabis Rescheduling

On May 20, the U.S. Department of Justice and the Drug Enforcement Administration issued a Notice of Proposed Rulemaking to initiate the proposed rescheduling of cannabis from Schedule I to Schedule II under the Controlled Substance Act. A 60-day public comment period then began, which ended in late July.

Why it Matters: Following the end of the public comment period, the DEA will review the public comments, may incorporate comments as appropriate, and then finalize the rescheduling rule. Typically, a final rule becomes effective 30 days after being published in the Federal Register.

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  1. Michigan Cannabis Regulatory Agency Set to Ban MCT Oil

In a recent technical bulletin from the CRA, effective October 1, 2024, “MCT (medium-chain triglyceride) oil will be added as a target analyte for marijuana vape cartridges as part of the Sampling and Testing Technical Guidance for Marijuana Products.

Why it Matters: MCT oil is commonly used in inhalable cannabis products, such as vapes, and may pose dangers to respiratory health when inhaled. Businesses will need to adhere to the new testing parameters and begin to eliminate MCT oil from their products before October 1, 2024, if not sooner in a proactive manner.

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  1. DOL Issues Bulletin to Wage and Hour Field Staff Regarding AI Use in Workplace

The United States Department of Labor recently issued a Field Assistance Bulletin to its Wage and Hour Division field staff regarding the application of the Fair Labor Standards Act (FLSA) and other federal labor standards as employers increasingly use artificial intelligence (AI) and other automated systems in the workplace. For example, the bulletin advises that, “Reliance on automated timekeeping and monitoring systems without proper human oversight, however, can create potential compliance challenges with respect to determining hours worked for purposes of federal wage and hour laws.”

Why it Matters: As AI use becomes more pervasive across businesses, employers must be aware that their use of AI can create legal compliance challenges, and that regulatory agencies are paying attention to these issues.

Related Practice Groups and Professionals

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

Michigan Supreme Court Rules on Adopt and Amend: What Businesses Need to Know

Background:  Adopt and Amend Unauthorized 

In Mothering Justice v Attorney General, a 105-page, 4-3 party-line decision, the Michigan Supreme Court ruled that the state Legislature lacked the authority to “adopt and amend” two employment-related ballot initiatives in 2018. In support of the legislature’s authority, the minority noted that there is nothing in the Michigan constitution limiting that authority. The majority found the legislature’s action to have been a usurpation of the right of the voters to initiate and effectively implement new legislation. The ruling reinstates two ballot initiative measures affecting Michigan workers. Much more will be written about this aspect of the decision, however, the bottom-line for Michigan employers is: Employees are going to be more costly and more difficult to manage within the law.

What This Means for Businesses

The case involved the “Wage Act” proposing changes to minimum wage and overtime laws, and the “Earned Sick Time Act.” In its ruling, the Court ordered that increases to the state’s minimum wage and tipped wage laws, and the expansion of the state’s earned sick time laws will go into effect February 21, 2025. The “standard” minimum wage for non-tipped employees will increase to an adjusted rate, calculated by the state treasurer, of more than $12 per hour. Tipped workers, the percentage that businesses pay will increase to 48%. By this formula, the minimum wage will increase each year until 2029, when the tipped and non-tipped minimum wages will be the same.

Earned sick time leave will also see an overhaul for both large and small employers. Employers with more than 10 employees must provide 72 hours of paid sick time leave, and employers with less than 10 employees must provide 40 hours of paid sick time leave annually and 32 hours of unpaid leave. Employees, including part-time and seasonal, will receive one hour of paid medical leave for every 30 hours worked, up to 72 hours per year. This is an increase from the previous maximum of 40 hours per year. Additionally, employers with less than 50 employees are no longer exempt from having to offer earned sick time leave.

Employers will need to educate their staff on these changes, adjust payroll systems, and ensure their company’s policies are updated to reflect the new laws before the February 21, 2025, deadline to remain compliant.

If you’re concerned about these changes or have questions, please contact David J. Houston or your Fraser Trebilcock attorney.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions. You can read the full Opinion here.


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.

Michigan Supreme Court Rules that Condo Association Owes Duty of Care to Co-Owners for Premises Liability

In a ruling on July 11, 2024, in the case of Janini v. London Townhouses Condominium Association, Docket No. 164158, the Michigan Supreme Court overturned previous case law and redefined the legal relationship between condominium associations and their co-owners with respect to premises liability. The Court ruled that when using common areas of the condominium, a co-owner is deemed to be an invitee. This classification requires the condominium association to exercise reasonable care to protect co-owners from hazardous conditions in these shared spaces.

Background

The case began when Daoud Mousa Janini, a co-owner and resident of a condominium unit managed by London Townhouses Condominium Association, suffered injuries after falling on a snow- and ice-covered sidewalk within the common area of the condominium complex. Janini and his co-plaintiffs filed a lawsuit against the association, which is responsible for managing and maintaining the common elements of the complex, including sidewalks and parking lots.

The trial court initially allowed the premises liability claim to proceed, but the Michigan Court of Appeals reversed this decision, following the precedent set in Francescutti v Fox Chase Condo Ass’n. 312 Mich. App. 640 (2015). However, the Michigan Supreme Court took a different view, ultimately overturning both the Appeals Court ruling and the Francescutti precedent.

The Supreme Court’s Decision

The Supreme Court determined that a co-owner of a condominium unit should be considered an invitee when using the common elements of the condominium. This classification is crucial in premises liability law, as it imposes a higher duty of care on the property possessor. As a result, the Court ruled that condominium associations have a duty to exercise reasonable care in protecting co-owners from dangerous conditions in common areas.

The Court emphasized that the critical factor in premises liability cases is not land ownership (co-owners have a shared property interest in condo common elements) but rather who has possession and control over the property. In condominium settings, co-owners cede control of common elements to the association, justifying the association’s duty of care to a co-owner as invitee, according to the Court.

Implications of the Ruling

Co-owners now have a path to pursue premises liability claims against their condominium associations for injuries sustained in common areas, significantly strengthening their legal position in such disputes. Conversely, condominium associations now face an expanded duty of care towards co-owners, necessitating a reevaluation of their operational practices, including enhanced maintenance and safety protocols.

There are also important implications for insurance companies who provide coverage for condominium associations. They will need to reassess their coverage policies and premium structures for condominium associations. The increased potential for liability claims may necessitate higher coverage limits to adequately protect associations from the financial risks associated with premises liability lawsuits. This expanded liability exposure could potentially lead to increased premiums, as insurers adjust their risk calculations to account for the new legal standard.

The Bottom Line

The Janini v. London Townhouses Condominium Association decision marks a significant shift in Michigan condominium law by recognizing co-owners as invitees in common areas and imposing a corresponding duty of care on associations.

This Supreme Court decision represents a continuation of the obvious intent of this State’s highest Court (given its current make-up) to increase the ability of persons injured to pursue lawsuits. In the end, the Janini decision will result in higher insurance premium costs to condominium associations which in turn will be passed along as increased condominium dues to individual condominium owners.

The Plaintiff’s bar will likely benefit the most from our Supreme Court’s current efforts to open the door to personal injury lawsuits which had previously been barred.

If you have any questions or require assistance, please contact Andrew J. Moore or your Fraser Trebilcock attorney.

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


Attorney Andrew J. Moore

Andrew J. Moore is an attorney at Fraser Trebilcock with experience covering a range of practice areas, from auto and property insurance defense, commercial, construction, and probate and trust litigation, and general civil litigation, including business and family matters. You can reach him at 517.377.0848 or at amoore@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – May 24, 2024

1.Michigan Supreme Court Endorses Third-Party Retaliation Claims

On May 10, 2024, in Miller v. Dep’t of Corrections, the Michigan Supreme Court endorsed third-party retaliation claims under the Elliot-Larsen Civil Rights Act. This decision aligns Michigan with the 2011 U.S. Supreme Court ruling that Title VII’s anti-retaliation provision covers third-party retaliation claims, even though the statute does not explicitly recognize such a theory.

Why it Matters: This ruling significantly expands the potential number of retaliation claimants to include third parties. As a result, employers in Michigan may face an increased number of retaliation claims. The exact parameters of what constitutes a sufficient connection for these claims will need to be clarified by lower courts in future cases.

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2.DEA Recommends Cannabis Rescheduling: Developments and Implications for the Industry

The industry may soon experience a major shift, as the Drug Enforcement Administration (DEA) moves to reschedule cannabis to Schedule III. This decision follows a recommendation from the Department of Health & Human Services (HHS), which is supported by scientific evidence reviewed by the FDA.

Why it Matters: The expected rescheduling of cannabis to Schedule III will have notable implications for cannabis businesses. The removal of cannabis from I.R.C. Section 280E will provide significant tax relief for state-legal cannabis operators, and the possibility of increased banking access could enhance the industry’s financial stability and growth potential. Nevertheless, cannabis companies will continue to face certain limitations stemming from the persistent federal prohibition of cannabis. Read more from your Fraser Trebilcock attorney.

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3.Michigan CRA Publishes April ’24 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 was $86.61, a decrease from $90.70 in March. This is a decrease from April 2023, where the average price was $87.76.

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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4.June Business Education Series

Most entrepreneurs and business leaders face similar frustrations – employee conflicts, lack of sales, profit woes and inadequate growth. Decisions never seem to get made, or, once made, they fail to be properly implemented. There is a solution, and it is not complicated or theoretical.

Why it Matters: The Entrepreneurial Operating System (EOS) is a practical method for achieving the business success you have always envisioned. More than 100,000 companies have discovered what EOS can do. Learn more and to register.

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5.Fraser Trebilcock’s Growth Continues with Grand Rapids Office Relocation

Fraser Trebilcock Davis Dunlap & Cavanaugh, P.C., one of Michigan’s well established law firms with a history of providing excellent legal services, is pleased to announce it has relocated its Grand Rapids office. This move is a testament to the firm’s continued ability in taking a proactive approach in providing comprehensive legal solutions across a wide range of practice areas, helping clients capitalize on potential opportunities.

Why it Matters: In late April, Fraser Trebilcock’s Grand Rapids office moved to 300 Ottawa NW Suite 810, located within walking distance of all downtown restaurants, entertainment venues, museums, municipal buildings, and the Medical Mile. The office offers the full range of the firm’s legal services, including litigation, business, tax, real estate, trusts and estates, and other areas of specialty. Clients can expect the same level of professionalism and personalized attention that Fraser Trebilcock is known for. Read more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston

Cannabis Law | Sean Gallagher