Month: December 2024

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

  1. Court Blocks DOL’s FLSA Salary Threshold Increases Nationwide

A federal district court in Texas recently struck down the Department of Labor’s planned increases to minimum salary requirements for overtime-exempt employees under the FLSA. The ruling invalidates both the July 2024 increase to $43,888 annually and the planned January 2025 increase to $58,656, reverting the federal threshold back to $35,568 per year for employers nationwide.

Why it Matters: The ruling means the lower $35,568 annual salary threshold for determining overtime exemptions for white-collar workers under federal law is again applicable (at least for the time-being). However, employers should continue to monitor potential appeals or new federal rulemaking on this issue.

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

After you’ve launched your brand, your work isn’t over yet. Now comes the ongoing task of protecting your new brand. First and foremost, you need to monitor the marketplace. Keep an eye out for any businesses using names, logos, or other branding elements that are similar to yours. The earlier you catch potential infringement, the easier it is to address.

Why it Matters: But protection isn’t just about policing others—it’s also about maintaining your own rights. For example, use your trademarks consistently and properly. If you’ve registered a logo, make sure you’re using it in the form in which it was registered. Keep records of how and when you use your trademarks in commerce. Be proactive and make IP an important strategic consideration for your business. Read more.

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  1. Fraser Trebilcock Announces 2025 Board of Directors

The Shareholders of Fraser Trebilcock, one of Michigan’s long-established full-service law firms, have re-elected Thaddeus E. Morgan as President of the firm. Shareholder Ryan K. Kauffman was re-elected to the Board of Directors, where he will serve as Vice President & Treasurer. Shareholder Jared A. Roberts was elected to the Board of Directors, where he will serve as Secretary.

Why it Matters: When it matters in Michigan, we are the trusted advisor for businesses and individuals requiring planning and consulting services, or facing legal and regulatory challenges, and our capabilities extend to wherever clients require counsel. The annual election of the Board of Directors allows Fraser Trebilcock to continue its tradition of exceptional client service, dedicated community involvement and professional excellence. Read more.

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  1. Michigan CRA Publishes November ’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 November was $71.80, a decrease from $73.99 in October. This is a decrease from November 2023, where the average price was $97.51.

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. FinCEN Motion to Stay

On Wednesday, December 11, 2024, FinCEN filed its first substantive response to the nationwide injunction ordered by a United States District Court in Texas. The response, a “Motion to Stay Preliminary Injunction Pending Appeal” highlights the time and expense incurred by government in implementing the CTA, including the build out of the online reporting system, community outreach events, and an ad buy in excess of $4.3 million.

Why it Matters: Businesses and other would-be reporting companies are advised to keep a close eye on these proceedings, as the reporting requirements could be revived and enforcement resumed effective January 1, 2025. If that happens, it could be quite a scramble for the 20+ million reporting companies. Accordingly, FinCEN advises that online the reporting system remains open for “voluntarily” filings. Read more.

Related Practice Groups and Professionals

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

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

  1. USPTO Announces Fee Increases for 2025

The United States Patent and Trademark Office will implement broad fee increases averaging approximately 7.5% across their services, along with introducing several new fees, effective January 19, 2025.

Why it Matters: These fee increases will impact the cost of protecting intellectual property for Michigan businesses. Businesses should be aware of these pending increases and consider whether to adjust the timing of filings as appropriate.

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  1. FinCEN Motion to Stay

On Wednesday, December 11, 2024, FinCEN filed its first substantive response to the nationwide injunction ordered by a United States District Court in Texas. The response, a “Motion to Stay Preliminary Injunction Pending Appeal” highlights the time and expense incurred by government in implementing the CTA, including the build out of the online reporting system, community outreach events, and an ad buy in excess of $4.3 million.

Why it Matters: Businesses and other would-be reporting companies are advised to keep a close eye on these proceedings, as the reporting requirements could be revived and enforcement resumed effective January 1, 2025. If that happens, it could be quite a scramble for the 20+ million reporting companies. Accordingly, FinCEN advises that online the reporting system remains open for “voluntarily” filings. Read more.

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  1. Michigan CRA Publishes October ’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 October was $73.99, a decrease from $78.68 in September. This is a decrease from October 2023, where the average price was $97.62.

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. Fraser Trebilcock Attorney Robert D. Burgee Selected as a 
Member of Michigan Lawyers Weekly ‘Michigan’s Go to Lawyers Power List’

Fraser Trebilcock attorney Robert D. Burgee has been selected as a member of Michigan Lawyers Weekly ‘Michigan’s Go to Lawyers Powers List.’ The ‘Go to Lawyers’ program recognized top lawyers around the state in a given practice area for the second year, with Mr. Burgee being recognized as a 2024 ‘Michigan Go to Lawyer’ for Business Transactions.

Why it Matters: Mr. Burgee serves as Co-Chair of the firm’s Business & Tax Department. With over a decade of experience, Bob is a trusted advisor to businesses owners and entrepreneurs across the State of Michigan. Whether it’s a startup finding its feet, or an established company looking to expand, Bob provides expert counsel on all aspects of business law. Read more.

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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.

Related Practice Groups and Professionals

Intellectual Property | Andrew Martin
Business & Tax | Robert D. Burgee
Cannabis Law | Sean Gallagher

FinCEN Motion to Stay

On Wednesday, December 11, 2024, FinCEN filed its first substantive response to the nationwide injunction ordered by a United States District Court in Texas. The response, a “Motion to Stay Preliminary Injunction Pending Appeal” highlights the time and expense incurred by government in implementing the CTA, including the build out of the online reporting system, community outreach events, and an ad buy in excess of $4.3 million. FinCEN further argues that these efforts have resulted in an “exponential increase” in filed reports, noting that nearly 10 million reports have been filed to date, which is 20 million shy of the estimated number of expected reports.

Businesses and other would-be reporting companies are advised to keep a close eye on these proceedings, as the reporting requirements could be revived and enforcement resumed effective January 1, 2025. If that happens, it could be quite a scramble for the 20+ million reporting companies. Accordingly, FinCEN advises that online the reporting system remains open for “voluntarily” filings.

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

Robert D. Burgee is an attorney at Fraser Trebilcock with over a decade of experience counseling clients with a focus on corporate structures and compliance, licensing, contracts, regulatory compliance, mergers and acquisitions, and a host of other matters related to the operation of small and medium-sized businesses and non-profits. You can reach him at 517.377.0848 or at bburgee@fraserlawfirm.com.

FinCEN Issues Alert After Recent Ruling on the Corporate Transparency Act

FinCEN has recently released an update following the Tuesday, December 3, 2024, ruling from a federal judge in Texas issuing an order granting a nationwide preliminary injunction against the federal government’s enforcement of the Corporate Transparency Act (“CTA”).

Below is the alert from FinCEN.

In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

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The Corporate Transparency Act plays a vital role in protecting the U.S. and international financial systems, as well as people across the country, from illicit finance threats like terrorist financing, drug trafficking, and money laundering.  The CTA levels the playing field for tens of millions of law-abiding small businesses across the United States and makes it harder for bad actors to exploit loopholes in order to gain an unfair advantage.

On Tuesday, December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), a federal district court in the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction that: (1) enjoins the CTA, including enforcement of that statute and regulations implementing its beneficial ownership information reporting requirements, and, specifically, (2) stays all deadlines to comply with the CTA’s reporting requirements. The Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal on December 5, 2024.

Texas Top Cop Shop is only one of several cases in which plaintiffs have challenged the CTA that are pending before courts around the country. Several district courts have denied requests to enjoin the CTA, ruling in favor of the Department of the Treasury. The government continues to believe—consistent with the conclusions of the U.S. District Courts for the Eastern District of Virginia and the District of Oregon—that the CTA is constitutional.

While this litigation is ongoing, FinCEN will comply with the order issued by the U.S. District Court for the Eastern District of Texas for as long as it remains in effect. Therefore, reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect. Nevertheless, reporting companies may continue to voluntarily submit beneficial ownership information reports.

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

Robert D. Burgee is an attorney at Fraser Trebilcock with over a decade of experience counseling clients with a focus on corporate structures and compliance, licensing, contracts, regulatory compliance, mergers and acquisitions, and a host of other matters related to the operation of small and medium-sized businesses and non-profits. You can reach him at 517.377.0848 or at bburgee@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – December 6, 2024

  1. Michigan to Offer New R&D Tax Credit Starting 2025

Michigan has approved legislation creating a state income tax credit for qualifying research and development expenses conducted within the state. The credit, established through House Bills 5100 and 5101, will be available to both corporations and pass-through entities beginning January 1, 2025, with qualifying expenses defined according to federal tax standards.

Why it Matters: This new tax incentive provides Michigan businesses with an additional financial benefit for conducting in-state research and development activities, potentially making Michigan more competitive in attracting and retaining innovative companies.

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  1. Corporate Transparency Act Update – Federal Judge in Texas Issues Nationwide Injunction

On December 3, 2024, a United States District Court Judge in Texas issued a nationwide injunction against the federal government’s enforcement of the Corporate Transparency Act (“CTA”). The law, which mandates extensive new reporting requirements for over 35 million American businesses and other entities, was slated to take full effect in less than a month.

Why it Matters: The government is expected to appeal this ruling and is concurrently contesting challenges to the CTA’s enforcement in at least seven other jurisdictions. The expansive reach of the CTA, coupled with the potential for conflicting judicial opinions, will likely trigger further appeals and could ultimately result in an expedited review by the United States Supreme Court. Businesses and other entities subject to the CTA’s provisions are advised to closely monitor these legal proceedings, as the final outcome will directly impact their reporting obligations. Read more from your Fraser Trebilcock attorney.

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  1. Michigan Cannabis Exceeds $268 Million in October ‘24

Cannabis sales surpassed $266 million in October, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $267,603,528.23, while medical sales came in at $961,844.41, totaling $268,565,372.64.

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: 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. Fraser Trebilcock Named a Tier 1 Law Firm in Lansing in Six Practice Areas for 2025

Fraser Trebilcock has received a First Tier ranking in Lansing in six practice areas by U.S. News – Best Lawyers® “Best Law Firms” in 2025. Those practice areas are: Administrative/Regulatory Law, Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law, Commercial Litigation, Environmental Law, Litigation – Labor and Employment, and Utilities Law. In addition to the First Tier ranking in six legal practice areas, Fraser Trebilcock has been named a Tier Two firm in Lansing for four practice areas, and has also been named a Tier Three firm in Lansing for four practice areas. The Tier Two areas are: Closely Held Companies and Family Businesses Law, Litigation – Insurance, Real Estate Law, and Trusts & Estates. The Tier Three areas are: Bet-the-Company Litigation, Corporate Law, Litigation – Construction, and Litigation – Environmental.

Why it Matters: Firms included in the 2025 “Best Law Firms” list are recognized for professional excellence with persistently impressive ratings from clients and peers. Achieving a tiered ranking signals a unique combination of quality law practice and breadth of legal expertise. The 2025 rankings are based on the highest number of participating firms and the highest number of client ballots on record. Receiving a tier designation reflects the highest level of respect a firm has earned among other leading lawyers and clients in the same communities and in the same practice areas for their abilities, their professionalism and their integrity.

Related Practice Groups and Professionals 

Business & Tax | Robert D. Burgee
Cannabis Law | Sean Gallagher

Corporate Transparency Act Update – Federal Judge in Texas Issues Nationwide Injunction

On December 3, 2024, a United States District Court Judge in Texas issued a nationwide injunction against the federal government’s enforcement of the Corporate Transparency Act (“CTA”). The law, which mandates extensive new reporting requirements for over 35 million American businesses and other entities, was slated to take full effect in less than a month.

This decision follows a similar ruling from earlier this year, in which a federal judge in Alabama also barred the government from enforcing the CTA’s reporting requirements. However, the Alabama ruling was limited to the specific plaintiff in that case. The Texas court’s injunction is significantly broader in scope, largely due to the involvement of the National Federation of Independent Business (NFIB), which represents over 300,000 businesses nationwide, as a plaintiff.

With the January 1, 2025 deadline looming, many believed the CTA would proceed as planned. Consequently, millions of businesses preemptively filed their reports to avoid potential penalties, including jail time and substantial fines. This nationwide injunction now casts uncertainty over the CTA’s future.

The government is expected to appeal this ruling and is concurrently contesting challenges to the CTA’s enforcement in at least seven other jurisdictions. The expansive reach of the CTA, coupled with the potential for conflicting judicial opinions, will likely trigger further appeals and could ultimately result in an expedited review by the United States Supreme Court.

Businesses and other entities subject to the CTA’s provisions are advised to closely monitor these legal proceedings, as the final outcome will directly impact their reporting obligations.

You can view the order here.

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

Robert D. Burgee is an attorney at Fraser Trebilcock with over a decade of experience counseling clients with a focus on corporate structures and compliance, licensing, contracts, regulatory compliance, mergers and acquisitions, and a host of other matters related to the operation of small and medium-sized businesses and non-profits. You can reach him at 517.377.0848 or at bburgee@fraserlawfirm.com.