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 – October 4, 2024

  1. With Election Looming, it’s Important to be Informed About Michigan’s AI Election Communications Law

A little less than a year ago, in November, 2023, Michigan became the fifth U.S. state to pass a law regulating artificial intelligence use in election communications. The legislation requires a disclaimer on political advertisements created using A.I.-generated content.

Why it Matters: Under the law, a person who knowingly violates this section is guilty of a misdemeanor punishable by a fine of not more than $1,000.00 or imprisonment for not more than 93 days, or both. You can access more information about the law here.

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  1. Michigan Sales Tax Applies to Credit Card Surcharges

Recently, the Michigan Department of Treasury provided guidance on the application of a Michigan sales tax on credit card “surcharges” for businesses. The Michigan Department of Treasury considers the surcharge added to a customer’s bill a “service cost” or “other expense of the seller” under the General Sales Tax Act, making it part of the taxable “sales price” of a transaction.

Why it Matters: Compliance with this guidance is important. Failure to do so may result in underpayment of taxes due to the State of Michigan, potentially subjecting your business to penalties and interest. If you have any questions about how this guidance applies to your specific situation, please contact Paul McCord or your Fraser Trebilcock attorney. Read more.

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  1. Update: Michigan Supreme Court Clarifies its “Adopt and Amend” Minimum Wage and Tipped Worker Ruling

The Michigan Supreme Court recently issued a clarification of its July 31, 2024 ruling on minimum wage and paid sick leave standards. This update, released on September 18, 2024, comes in response to a request from the State of Michigan and its attorney general, addressing several key points of confusion that arose from the original decision.

Why it Matters: Employers should remain vigilant for any further updates or guidance from state authorities. The complex nature of these changes underscores the importance of staying informed and seeking experienced legal counsel to ensure full compliance with Michigan’s evolving wage laws. Read more from your Fraser Trebilcock attorney.

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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. Fraser Trebilcock Attorney Secures Victory for Firm Client

Fraser Trebilcock attorney Danielle Lofton was successful in securing a victory for the firm’s client in an insurance matter. A mother of an eight-year-old daughter in Florida had been sued over an accident that occurred in Michigan involving her daughter having caused a serious injury to a cousin while driving an ATV.

Why it Matters: The mother’s insurance company in Florida had gone into insolvency, leaving the mother on her own to defend herself in the civil lawsuit. Although she was initially faced with many roadblocks, Attorney Lofton was successful in convincing the Florida Insurance Bureau to not only settle the underlying claim, but to reimburse the firm’s client for the defense costs she incurred. Read more.

Related Practice Groups and Professionals

Business & Tax | Paul McCord
Labor, Employment & Civil Rights | David Houston
Insurance Law | Danielle Lofton