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

  1. 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.

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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  1. 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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  1. 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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  1. 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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  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 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