Five Stories That Matter in Michigan This Week – January 31, 2025

  1. Michigan Marihuana Administrative Rules Proposed Changes Available for Review

The Michigan Cannabis Regulatory Agency has published proposed changes to the administrative rules (R 420.1 to R 420.1005). A public hearing on these proposed changes is, according to the CRA, supposed to take place early this year.

Why it Matters: The proposed changes (which are summarized by the CRA here) are extensive and, if enacted, will affect licensing, financial compliance, monitoring, and other important issues.

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  1. Michigan Senate Still Reviewing Bills on Minimum Wage, Paid Sick Leave

Last week, the Michigan House of Representatives passed HB 4001 and 4002, which addressed the coming changes to the minimum wage law and the Earned Sick Time Act (ESTA), respectively, which are set to go into effect on February 21, 2025. The bills were sent to the Senate for consideration, which at this moment, has yet to act on them.

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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  1. Michigan Cannabis Eclipses $10 Billion to Date

Michigan cannabis sales have exceeded $10 billion to date, since the state began selling adult-use marijuana in December 2019. In 2024 alone, the state made over $3 billion in sales of adult-use marijuana.

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. Governor Whitmer Signs New Law Requiring Businesses to Display Resources Poster for Veterans

This week, Governor Whitmer signed into law a new act, called, “veteran’s employee resources act,” that now requires businesses to display a poster in a conspicuous place that has information related to veterans’ services, such as military/veterans’ affairs, mental health and substance abuse services, and tax benefits.

Why it Matters: This act will go into effect April 2, 2025. Businesses will need to display the proper information poster, or face repercussions if they do not.

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

Last week, the United States Supreme Court granted the government’s request to lift the nationwide injunction that had been preventing enforcement of the Corporate Transparency Act (“CTA”). However, in response to the Supreme Court’s order, 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.

Related Practice Groups and Professionals 

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

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

  1. 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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  1. 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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  1. 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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  1. 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.

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: 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

Five Stories That Matter in Michigan This Week – January 17, 2025

  1. Michigan House to Form Committee to Address Tipped Wage and Sick Leave Policies

The Michigan House of Representatives is set to create the Select Committee on Protecting Michigan Employees and Small Businesses, with the intention of addressing upcoming changes to the state’s minimum wage and paid sick leave requirements.

Why it Matters: The committee formation comes in response to a significant Michigan Supreme Court ruling from last summer, which found that the Legislature’s 2018 “adopt and amend” strategy – where they adopted citizen-led initiatives only to substantially weaken them – was unconstitutional. This decision mandated the implementation of the original ballot initiatives, including raising minimum wage to $15 by 2028 and eliminating the tipped minimum wage system, unless new legislative action is taken.

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  1. Michigan CRA Publishes December ’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 December was $69.20, a decrease from $71.80 in November. This is a decrease from December 2023, where the average price was $95.08.

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. Michigan CRA Files New Formal Complaint Against Adult-Use Marijuana Processor Business

On January 7, 2025, the Michigan Cannabis Regulatory Agency filed a new formal complaint against Sky Labs, LLC, an adult-use marijuana processor, alleging multiple counts of violations ranging from illegally combining marijuana and marijuana product into another marijuana product in addition to not providing the proper certificate of analysis (COA), to handling marijuana product outside of a licensed facility and not registering product into the state’s tracking system.

Why it Matters: The CRA intends to impose fines and/or other sanctions against Sky Labs, LLC, which include suspension, restriction, or revocation, of the business’s license.

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  1. 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.

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  1. 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.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – November 8, 2024

  1. New Approval Procedures for Large-Scale Renewable Energy Projects to Take Effect on November 29, 2024

The Michigan Public Service Commission and other state regulators have recently finalized procedures for approval processes for large-scale solar and wind projects to implement a 2023 law that transfers decision-making authority, in some cases, from local governments to the state. The new procedures will take effect on November 29, 2024.

Why it Matters: Renewable energy project approval processes will, in most instances, still need to begin at the local level. However, the law allows developers to seek state approval from the Public Service Commission if a project is denied by a local government.

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  1. Business Education Series: Referral Generation: Avoid Peaks & Valleys in Your Sales Funnel

Every business owner prefers a referral to a cold lead. Referrals have a basis of trust and understanding that makes the sales process simpler to execute and winning easier to achieve. Referrals can’t be generated intentionally however, right? On Tuesday, December 17, Ian Richardson, BBA, CSAP, MCSA, Principal Consultant, Fox & Crow Group LLC & Managing Partner, Richardson & Richardson Consulting, LLC, will discuss how this is incorrect.

Why it Matters: Learn how to structure an intentional referral generation pipeline from existing clients while minimizing the risk of client churn. Three takeaways include preparing conversations with clients, retention efforts for clients who are not ready to refer, and review of how to prepare a referral list for clients. Full information and to register.

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  1. Two House Bills Introduced Aimed at Amending Minimum Wage, Earned Sick Time Leave Act

House Bills 6056 and 6057 were introduced into the Michigan House this week, seeking to amend the Earned Sick Time Leave Act, and keep the tipped wage at the current 38%.

Why it Matters: The bipartisan legislation aims to keep the tipped wage at 38%, while slightly accelerating the minimum wage increase, as well as providing a clearer definition of an employee, and how employers can manage benefits. This legislation comes as the state is preparing for the February 21, 2025 deadline, where the minimum wage and paid sick time leave laws will be altered.

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  1. Michigan Court of Appeals Confirms Commercial Roof Replacement Qualifies as “New Construction” for Property Tax Purposes

In a recent decision that clarifies the scope of property tax “additions” under Michigan law, the Court of Appeals held that installing a new roof on a commercial building constitutes “new construction” that can trigger increases in taxable value beyond the standard legislative cap.

Why it Matters: By confirming that even basic building improvements like roof replacements constitute “additions” that can trigger increased tax assessments, the ruling clarifies a power that local tax assessors have long possessed but may not have consistently exercised.

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  1. FTC Overhaul of Hart-Scott-Rodino Act Pre-Merger Notification Rules

On October 10, 2024, the Federal Trade Commission (FTC) unveiled extensive modifications to the Hart-Scott-Rodino Act (HSR) pre-merger notification regulations. These changes, set to take effect in January 2025, significantly expand disclosure requirements for mergers and acquisitions.

Why it Matters: The Act applies to transactions that meet specific size thresholds, which are adjusted annually. Generally, in 2024, transactions where one party has a size of at least $239 million; the other party has a size of at least $23.9 million; and the size of the transaction is at least $119.5 million, must be reported. The Act aims to give regulators the opportunity to review potentially anticompetitive deals before they are consummated.

Related Practice Groups and Professionals 

Energy, Utilities & Telecommunication | Sean Gallagher
Business & Tax
Labor, Employment & Civil Rights | David Houston

Five Stories That Matter in Michigan This Week – September 13, 2024

  1. AG Nessel Asks Michigan Supreme Court to Clarify Minimum Wage Ruling

Attorney General Dana Nessel recently sought clarification from the Michigan Supreme Court as to 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. With many businesses scrambling to prepare for the impact, the Court may provide some helpful clarity to those businesses as well as the state in administering and enforcing the law.

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  1. Attorney Douglas J. Austin Honored as “Lawyer of the Year” in Real Estate Law in Lansing

Fraser Trebilcock attorney Douglas J. Austin has been named the Best Lawyers in America® 2025 Real Estate Law “Lawyer of the Year” in Lansing. “I am honored to be recognized by Best Lawyers® as a 2025 ‘Lawyer of the Year’ for Real Estate Law in Lansing,” said Mr. Austin.

Why it Matters: This is a high distinction, as only one attorney in each practice area in each community is identified as “Lawyer of the Year.” Mr. Austin has been at the center of real estate law for over 45 years. In addition to being a shareholder at Fraser Trebilcock, he is also the past chair of the firm’s Real Estate Law department.

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  1. Michigan CRA Publishes August ’24 Data: Average Price Increases

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sale of an ounce of cannabis in August was $80.14, a minor increase from $79.70 in July. This is a decrease from August 2023, where the average price was $94.16.

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. 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.

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  1. Fraser Trebilcock Lawyers Selected Among “The Best Lawyers in America©” 2025 Edition in Lansing

Fraser Trebilcock is proud to announce that 12 attorneys from the firm have been selected for inclusion in The Best Lawyers in America© 2025 edition in Lansing. Those selected include: Michael S. Ashton, Administrative / Regulatory Law; Litigation – Regulatory Enforcement (SEC, Telecom, Energy); Utilities Law; Douglas J. Austin, Real Estate Law; Michael E. Cavanaugh, Administrative / Regulatory Law; Bet-the-Company Litigation; Commercial Litigation; Litigation – Labor and Employment; Michael P. Donnelly, Commercial Litigation; Sean P. Gallagher, Environmental Law; Litigation – Environmental; Jennifer Utter Heston, Administrative / Regulatory Law; Mark E. Kellogg, Closely Held Companies and Family Business Law; Corporate Law; Hon. Paula J. Manderfield (Ret.), Mediation; Thaddeus E. Morgan, Commercial Litigation; Litigation – Construction; Michael H. Perry, Environmental Law; Gary C. Rogers, Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law; Litigation – Insurance; and Marlaine C. Teahan, Trusts and Estates.

Why it Matters: “These twelve attorneys are proven leaders in their field, and practice at a very high level. We congratulate them on this recognition by  Best Lawyers®,” said Thaddeus E. Morgan, President of Fraser Trebilcock. Read more.

Related Practice Groups and Professionals

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