ABC-SEMI Issue, 3 2020

Southeast Michigan Contractors  Issue 3 2020 9 LAWSUIT The Associated Builders and Contractors of Michigan recently won a lawsuit over Gov. Gretchen Whitmer’s orders requiring them to take actions to protect workers from the spread of coronavirus, saying they are unconstitutional and exceed her authority. A Michigan Court of Claims judge has ruled that Gov. Gretchen Whitmer exceeded her authority when she set possible felony penalties for employers that violate orders related to creating workplaces safe from the coronavirus. In response to a lawsuit brought by the Associated Builders and Contractors of Michigan, Judge Christopher Murray ruled that the most severe penalty that can be imposed on companies violating Whitmer’s emergency orders is a misdemeanor, which brings with it a fine of much less than the maximum $70,000 fine and 3-years in jail in Whitmer’s order. This means that the penalties referenced in Whitmer’s May 21 order are unenforceable. “It was obvious that the Governor exceeded her authority when it came to determining fines for contractors if they violate the orders,” said ABC of Southeastern Michigan President and CEO Keith Ledbetter. “There is a process in place to determine those amounts that cannot simply be ignored. It is essential that contractors have a seat at the table when determining these things and she violated that process. We did away with this type of ‘taxation without representation’ long ago. I am pleased that the judicial system agrees.” In addition, Ledbetter pointed out that the fines that the Governor was attempting to impose also are not covered under her emergency powers and were never authorized by the state Legislature under laws giving the governor authority to respond to emergencies or approved through the state’s regulatory process. ABC State Director Jeff Wiggins said Whitmer’s rule “threatened the safe jobs of Michigan workers” and that ABC and their members “deserve to have a voice in the rules process. Instead, they are threatened by the arbitrary, unclear and unconstitutional enforcement methods set to be dispatched throughout the state to intimidate good, honest workers.” While state law made violation of a governor’s emergency order a misdemeanor—potentially punishable by a $500 fine and 90 days in jail—in her orders, including one issued recently, she said violation of the work rules could be considered a violation of Michigan Occupational Safety and Health regulations. Those are potentially punishable by fines of up to $70,000 a day and 3-years in prison for a company in willful violation. “The Governor simply cannot increase penalties without legislative approval,” said ABC Chairman Robert Clancy, owner and operator of Robert Clancy Construction. “In addition, her egregious attempt to wrest enforcement power from local elected officials, such as sheriffs and prosecutors, giving it to unelected bureaucrats under her control stepped all over local government control rights. I applaud our court system for maintaining the rule of law even in a crisis.” As a result of this lawsuit, all the MIOSHA penalties threatened under Whitmer’s emergency powers are void. ABC Defends Contractors in Lawsuit Against Governor COURTS VOTE IN ABC FAVOR