Can an Out-of-State Patent Attorney Represent Me?

Securing a patent for an innovative idea involves maneuvering through a complex, multifaceted process. And having the right guide—patent legal counsel—is an essential part of the process.

A common misconception is that a party hoping to secure a patent must turn to a local attorney for help. This belief, while understandable considering that many legal matters require local expertise and licensing, overlooks the dynamics of how things work with patent law.

The truth is, in the digital age, the geographical location of your patent attorney matters less than their expertise, experience, and ability to navigate the United States Patent and Trademark Office’s (“USPTO”) requirements.

Understanding Legal Representation at the USPTO

When it comes to securing a patent, the role of registered patent attorneys is pivotal. Unlike the localized nuances of general legal practices, such as commercial litigation or employment law, patent law operates under a unified federal legal framework, overseen by the USPTO. This means that any attorney registered to practice before the USPTO can represent inventors nationwide, regardless of their physical location.

Becoming a registered patent attorney isn’t a simple feat. It requires specific qualifications that are vetted by the USPTO. Candidates must pass the Patent Bar Exam (a notoriously difficult test), and have a background in science or engineering. This helps ensure that registered patent attorneys have not only a deep understanding of patent law, but also the technical grounding necessary to comprehend the complexities of the invention for which a patent is sought.

This combination of legal acumen and technical expertise positions registered patent attorneys as specialized guides through the patent application process. Accordingly, when selecting a patent attorney, their registration status with the USPTO is a necessity, ensuring they possess the expertise necessary to represent your interests.

Dispelling Myths about Local Patent Representation

The belief that effective patent representation requires a local attorney is a myth rooted in traditional views of legal counsel, and the ways clients typically hire attorneys. However, when it comes to patent law, harboring this belief often limits inventors’ access to the best possible expertise. The digital age has transformed how we communicate and collaborate, making physical proximity to a service provider, such as a patent attorney, less critical than ever. In the specialized field of patent law, where the expertise of a registered patent attorney is paramount, regardless of their geographic location, this shift is particularly relevant.

One of the biggest advantages of looking beyond local options is the potential for cost savings—often referred to as “geographic arbitrage.” The fees charged by patent attorneys can vary significantly depending on their location, often reflecting the cost of living in their area. Attorneys working at big firms in metropolitan areas with higher living costs typically charge more—much more—than those in regions where the cost of living is lower. For someone like myself, who practices patent law in Lansing, Michigan, it can be shocking to see what some patent lawyers practicing in larger markets charge. Living in a lower cost of living area, allows me to charge much more reasonable rates in comparison to large markets like Chicago or D.C.

This discrepancy provides an opportunity for inventors and businesses to engage highly qualified legal representation at a more budget-friendly rate without compromising on the quality of service or expertise. By expanding the search for a patent attorney nationwide, clients can leverage these geographical cost differences to their advantage.

Moreover, the specialized nature of patent law means that finding the best match for your specific technological or industrial sector is crucial. Limiting your search to local attorneys could mean missing out on working with a professional who not only understands the intricacies of your invention but also has a proven track record of success with similar patents. The goal is to secure the most competent and effective representation for your patent application, ensuring it stands the best chance of approval by the USPTO.

Criteria for Selecting the Right Patent Attorney

Selecting a competent and qualified patent attorney is a critical step toward securing your intellectual property rights. The process can be difficult, but by focusing on a few key criteria, you can ensure that you’re making an informed decision.

    • USPTO Registration: Confirm the attorney is registered to practice before the USPTO.
    • Technical Expertise: Look for experience in your specific field of invention. An attorney with a relevant technical background may understand the technology of your invention quicker.
    • Responsiveness: The attorney should be accessible for questions and updates, and proactively keep you apprised as to the status of your matter.
    • Collaborative Approach: Seek an attorney who shows genuine interest in understanding your invention and business goals. A collaborative attorney-client relationship fosters a stronger patent strategy.
    • Value and Cost Savings: Consider the attorney’s fee structure and the potential for cost savings by selecting someone based in a smaller market.

Conclusion

A patent is not just a legal document—it’s an invaluable asset that can significantly impact the success and competitive edge of your innovation. Securing this asset with the right legal counsel is paramount. The lingering myth that effective patent counsel must be local limits your options and potentially the quality of your patent protection. In reality, the right attorney, one who brings a blend of expertise, value, and a deep understanding of your technology, may not be just around the corner. By focusing on important factors beyond proximity, you can secure representation that not only safeguards your patent but also supports your broader business objectives.

If you are interested in discussing your patent questions and legal needs, please contact Fraser Trebilcock registered patent attorney Andrew Martin.

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

Andrew G. Martin is an experienced registered patent attorney with history working in the automotive, electrical, and agricultural industries. He regularly advises startups and small businesses on the patent and trademark prosecution process, assisting clients from start to finish. You can reach him at 517.377.0834 or at amartin@fraserlawfirm.com.

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

  1. CDC Says Five Days Isolation No Longer Necessary for COVID-19

The CDC recently updated its COVID-19 guidelines, stating that Americans who test positive for COVID-19 no longer need to stay in isolation for five days. The new guidelines provide that that people can return to work or regular activities if their symptoms are mild and improving and it’s been a day since they’ve had a fever.

Why it Matters: The change will impact COVID-19-related policies of employers who still adhere to CDC guidance for their return-to-work rules.

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  1. Fraser Trebilcock Adds Cavanaugh to Firm Name

Law firm Fraser Trebilcock Davis & Dunlap, P.C. is pleased to announce that its legal name has been changed to Fraser Trebilcock Davis Dunlap & Cavanaugh, P.C. This name change reflects the addition of the surname of member Michael E. Cavanaugh, in recognition of his long tenure and significant contributions to the firm. The firm’s trade name will continue to be Fraser Trebilcock.

Why it Matters: Mr. Cavanaugh’s list of accolades is as long as it is well-deserved. Perhaps at the very top, is recognition of his leadership in the Lansing legal community. Mike has been a trusted member of Fraser Trebilcock’s Board of Directors, and he is heavily involved in the State Bar of Michigan and the Ingham County Bar Association, for which he has served as a past-president. Read more.

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  1. Corporate Transparency Act ‘Unconstitutional’ says Federal District Judge

A U.S. District Court in Alabama has determined that Congress overstepped its constitutional authority in passing the Corporate Transparency Act (“CTA”) (see National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)). The CTA requires the disclosure of the Beneficial Ownership Information (“BOI”) of millions of American corporations, limited liability companies, and other entities.

Why it Matters: In the wake of this decision, FinCEN seems to have accepted the decision but only insofar as it affects its enforcement of the CTA against the named plaintiffs. The reporting obligations for the remaining 30 million or so entities is unchanged. Time will tell if FinCEN will appeal the decision and/or how it will deal with the seemingly inevitable series of similar cases that will start filling up courts across the country. Read more from attorney Bob Burgee.

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  1. A Health Professional’s Guide to Navigating the Disciplinary Process: What to Expect if You Are Facing a Professional Licensing Investigation or Administrative Complaint

Health professionals are committed to caring for patients with expertise, compassion, and integrity. However, in the heavily regulated healthcare field, those professionals can sometimes find themselves navigating not just the medical challenges of their patients but licensing issues of their own as well. Licensing issues can arise unexpectedly, and, when they do, they can cause tremendous stress and uncertainty.

Why it Matters: As an attorney with years of experience handling professional licensing matters for health professionals, Robert J. Andretz has witnessed firsthand how professional licensing investigations and Administrative Complaints can disrupt health professionals’ careers and their ability to provide patient care. He will explore how to navigate the disciplinary process in Michigan so that you can know what to expect if you are ever faced with a threat to your license. Learn more.

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  1. Navigating the Cost and Process of Hiring a Trademark Attorney

In the fast-paced world of business, protecting your brand is paramount. Whether you’re a startup or a large corporation, safeguarding your trademarks is essential for maintaining your identity and reputation in the market. However, navigating the legal intricacies of trademark registration and enforcement can be complex and overwhelming. This is where a skilled trademark attorney can be your greatest ally.

Why it Matters: Without adequate protection, your trademarks are vulnerable to infringement, dilution, and misappropriation, which can result in lost revenue, brand erosion, and legal disputes. By securing federal trademark registration and enforcing your rights, you establish a legal foundation that empowers you to safeguard your brand and its value. Read more from attorney Andrew G. Martin.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | Michael E. Cavanaugh
Business & Tax | Robert Burgee
Professional Licensing | Robert Andretz
Intellectual Property | Andrew Martin

Corporate Transparency Act ‘Unconstitutional’ says Federal District Judge

A U.S. District Court in Alabama has determined that Congress overstepped its constitutional authority in passing the Corporate Transparency Act (“CTA”) (see National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)). The CTA requires the disclosure of the Beneficial Ownership Information (“BOI”) of millions of American corporations, limited liability companies, and other entities.

In the wake of this decision, FinCEN seems to have accepted the decision but only insofar as it affects its enforcement of the CTA against the named plaintiffs. The reporting obligations for the remaining 30 million or so entities is unchanged. Time will tell if FinCEN will appeal the decision and/or how it will deal with the seemingly inevitable series of similar cases that will start filling up courts across the country.

At present, we encourage businesses and other entities to continuing collecting the information necessary to complete their BOI report. Especially, as we approach the earliest deadline for filing a BOI report at the end of this month (for entities that were created on January 1, 2024, the 90-day filing deadline would be March 31, 2024). As always, businesses and business owners should consult with knowledgeable counsel prior to taking (or not taking) any action that carries the threat of criminal penalties, such as the CTA’s $10,000 fine and up to two years in jail.

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 – March 1, 2024

  1. Growing Marijuana in Michigan – No Matter the Amount – is a Misdemeanor

Late last week, the Michigan State Police shut down an illegal marijuana growing facility in Highland Park, seizing 4,000 marijuana plants and processed weed worth $6.3 million. It may surprise readers to know that, pursuant to a Michigan Court of Appeals ruling in October, 2023, the unlicensed growers may only face misdemeanor charges. In another case involving an illegal growing operation, the court ruled that violations that previously were subject to felony punishments should now be prosecuted under the Michigan Regulation and Taxation of Marijuana Act (the “Act”).

Why it Matters: Under the Act, it’s legal to store up to 10 ounces of marijuana, possess 2.5 ounces and grow up to 12 plants. Violations for exceeding those amounts range from civil infractions to misdemeanors. It will be interesting to see if these provisions will be revisited given that black market sales have been blamed for increased competition and falling prices for legal sales.

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  1. Navigating the Cost and Process of Hiring a Trademark Attorney

In the fast-paced world of business, protecting your brand is paramount. Whether you’re a startup or a large corporation, safeguarding your trademarks is essential for maintaining your identity and reputation in the market. However, navigating the legal intricacies of trademark registration and enforcement can be complex and overwhelming. This is where a skilled trademark attorney can be your greatest ally.

Why it Matters: Without adequate protection, your trademarks are vulnerable to infringement, dilution, and misappropriation, which can result in lost revenue, brand erosion, and legal disputes. By securing federal trademark registration and enforcing your rights, you establish a legal foundation that empowers you to safeguard your brand and its value. Read more from attorney Andrew G. Martin.

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  1. Fraser Trebilcock Attorney Michael E. Cavanaugh Named in Michigan Lawyers Weekly Class of 2024 Hall of Fame

Fraser Trebilcock attorney Michael E. Cavanaugh has been selected as a member of Michigan Lawyers Weekly “Hall of Fame Class of 2024.” This special award recognizes esteemed members of the legal profession who have been in practice for at least 30 years.

Why it Matters: Michigan Lawyers Weekly’s annual “Hall of Fame” award recognizes only twenty-one lawyers each year. These lawyers truly are legends, making their mark in the courtroom or the boardroom, in their firms and with community organizations, and with local, state and national bar associations. With their guidance and mentorship, they have launched hundreds of thriving legal careers and have left an indelible imprint on the profession through precedent-setting cases, high dollar outcomes and successful resolutions for their clients.

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  1. A Health Professional’s Guide to Navigating the Disciplinary Process: What to Expect if You Are Facing a Professional Licensing Investigation or Administrative Complaint

Health professionals are committed to caring for patients with expertise, compassion, and integrity. However, in the heavily regulated healthcare field, those professionals can sometimes find themselves navigating not just the medical challenges of their patients but licensing issues of their own as well. Licensing issues can arise unexpectedly, and, when they do, they can cause tremendous stress and uncertainty.

Why it Matters: As an attorney with years of experience handling professional licensing matters for health professionals, Robert J. Andretz has witnessed firsthand how professional licensing investigations and Administrative Complaints can disrupt health professionals’ careers and their ability to provide patient care. He will explore how to navigate the disciplinary process in Michigan so that you can know what to expect if you are ever faced with a threat to your license. Learn more.

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  1. Increase in the Small Business Property Tax Exemption

Eligibility for the so-called “Small Business Property Tax Exemption” has expanded. Legislation passed last October 2023, expands the exemption by increasing the eligibility limit to from the $80,000 true cash value limit to $180,000.

Why it Matters: The exemption is only for commercial and industrial personal property (residential/individuals are not subject to personal property taxes). Once filed, and if granted, the exemption will remain as long as the small business still qualifies. In other words, there is no need to file an exemption claim every year. Read more.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Intellectual Property | Andrew Martin
Labor, Employment & Civil Rights | Michael E. Cavanaugh
Professional Licensing | Robert Andretz
Business & Tax | Paul McCord

Navigating the Cost and Process of Hiring a Trademark Attorney

In the fast-paced world of business, protecting your brand is paramount. Whether you’re a startup or a large corporation, safeguarding your trademarks is essential for maintaining your identity and reputation in the market. However, navigating the legal intricacies of trademark registration and enforcement can be complex and overwhelming. This is where a skilled trademark attorney can be your greatest ally.

The Importance of Trademark Protection

Before delving into the process and costs of hiring a trademark attorney, let’s underscore the significance of trademark protection. A trademark is more than just a logo or a slogan; it’s the embodiment of your brand’s goodwill and reputation. Trademarks are source identifiers that distinguish your products or services from competitors and help consumers identify and trust your brand.

Without adequate protection, your trademarks are vulnerable to infringement, dilution, and misappropriation, which can result in lost revenue, brand erosion, and legal disputes. By securing federal trademark registration and enforcing your rights, you establish a legal foundation that empowers you to safeguard your brand and its value.

The Role of a Trademark Attorney

Trademark law is a specialized field that requires expertise and experience to navigate effectively. An attorney who specializes in trademark matters can provide invaluable guidance throughout the trademark lifecycle. Their services often include:

  1. Trademark Search and Clearance: Conducting comprehensive searches to ensure your proposed trademark is available for use and registration, minimizing the risk of conflicts with existing trademarks.
  2. Trademark Application: Assisting with the preparation and filing of trademark applications with the United States Patent and Trademark Office (USPTO) or relevant authorities in other jurisdictions, ensuring compliance with legal requirements and maximizing the chances of successful registration.
  3. Prosecution and Responses: Handling communications with trademark examiners, responding to office actions, and overcoming objections to secure trademark registration.
  4. Trademark Enforcement: Monitoring for potential infringement, sending cease-and-desist letters, and pursuing legal action against infringers to protect your trademark rights.
  5. Trademark Portfolio Management: Advising on trademark maintenance, renewal, licensing, and assignment to optimize the value of your trademark assets.

The Cost of Hiring a Trademark Attorney

The cost of hiring a trademark attorney can vary depending on several factors, including the attorney’s experience, the complexity of the matter, and the scope of services required. Trademark attorneys typically offer various fee structures, such as hourly rates, flat fees for specific services, or retainer arrangements.

For trademark registration, the fees may range from a few hundred to several thousand dollars, depending on factors such as the number of classes of goods/services, the complexity of the mark, and whether any office actions or objections are encountered during the process.

While hiring a trademark attorney entails upfront costs, it’s an investment in protecting your brand’s intellectual property rights and mitigating the risk of costly disputes and legal challenges down the line. Moreover, engaging a knowledgeable attorney can streamline the process, enhance the likelihood of successful outcomes, and provide invaluable peace of mind.

Conclusion

In the competitive landscape of modern business, safeguarding your brand is non-negotiable. Hiring a trademark attorney is a strategic decision that empowers you to navigate the complexities of trademark law with confidence and expertise. By enlisting the support of a skilled attorney, you not only protect your trademarks but also lay the foundation for long-term brand success and resilience in the marketplace. If you have any questions, contact attorney Andrew G. Martin or your Fraser Trebilcock attorney.

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

Andrew G. Martin is an experienced registered patent attorney with history working in the automotive, electrical, and agricultural industries. He regularly advises startups and small businesses on the patent and trademark prosecution process, assisting clients from start to finish. You can reach him at 517.377.0834 or at amartin@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – February 23, 2024

  1. Michigan Awarded Nearly $23 Million for Electric Vehicle Infrastructure

The State of Michigan recently announced that nearly $23 million has been awarded to multiple locations across Michigan for electric vehicle infrastructure. The funds are being allocated via the U.S. Department of Energy’s National Electric Vehicle Infrastructure Formula Program.

Why it Matters: Electric vehicle growth and EV infrastructure is an important clean energy and economic growth priority in Michigan. However, recent reports suggest the market for EVs is slowing, and the issue has become a hot-button topic in this year’s presidential campaign. A New York Times article discussed the contentiousness of the issue in a story this week titled, “For Michigan’s Economy, Electric Vehicles are Promising and Scary.”

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  1. Increase in the Small Business Property Tax Exemption

Eligibility for the so-called “Small Business Property Tax Exemption” has expanded. Legislation passed last October 2023, expands the exemption by increasing the eligibility limit to from the $80,000 true cash value limit to $180,000.

Why it Matters: The exemption is only for commercial and industrial personal property (residential/individuals are not subject to personal property taxes). Once filed, and if granted, the exemption will remain as long as the small business still qualifies. In other words, there is no need to file an exemption claim every year. Read more.

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  1. Michigan CRA Publishes January 2024 Data: Average Price Decreases

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sales of an ounce of cannabis in January was $93.20, a decrease from $95.08 in December 2023. This is an increase from January 2023, where the average price was $80.16.

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. Contact our cannabis law attorneys if you have any questions.

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  1. Michigan’s Repealed “Right-to-Work” Law Takes Effect

On Tuesday, February 13, 2024, Michigan’s repeal of the prior “right-to-work” law governing private-sector workers went into effect.

Why it Matters: The result of the repeal is that private-sector unions may permissibly negotiate to impasse, and enforce, “union security” provisions requiring membership in, or financial support through “Beck Objector” fees, of those unions. Read more.

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  1. Retroactive PPT Exemption

Some Michigan manufacturers who were not able to claim their 2021 ESA-PPT exemption due to COVID-19, have until March 14 to request approval from the State Tax Commission.

Why it Matters: The ESA is a State specific tax on personal property that is exempt from property taxes at the local level because the property meets certain eligibility requirements, such as being qualified manufacturing or industrial personal property. In order to elect out of local personal property taxes and into the ESA regime, manufacturers must file the required forms with their local assessing office by February 20th of each year. Learn more.

Related Practice Groups and Professionals

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

Increase in the Small Business Property Tax Exemption

Eligibility for the so-called “Small Business Property Tax Exemption” has expanded. Generally, all personal property used by businesses in Michigan is subject to property taxation. Beginning with calendar year 2014, however, an exemption was created for the personal property owned by businesses if the “True Cash Value” or, in other words, market value of their personal property either owned, leased, or possessed by a related party is less than $80,000 within any city or township. This exemption has become known as the “Small Business” exemption.

The exemption is only for commercial and industrial personal property (residential/individuals are not subject to personal property taxes). Legislation passed last October 2023, expands the exemption by increasing the eligibility limit to from the $80,000 true cash value limit to $180,000.

In order to claim the exemption, eligible small businesses must file a Form 507 no later than February 20, 2024, with their local assessor. Late filed claims are not accepted. Once filed, and if granted, the exemption will remain as long as the small business still qualifies. In other words, there is no need to file an exemption claim every year.

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

Headshot of Fraser Trebilcock attorney Paul V. McCordFraser Trebilcock attorney Paul V. McCord has more than 20 years of tax litigation experience, including serving as a clerk on the U.S. Tax Court and as a judge of the Michigan Tax Tribunal. Paul has represented clients before the IRS, Michigan Department of Treasury, other state revenue departments and local units of government. He can be contacted at 517.377.0861 or pmccord@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – February 16, 2024

  1. Michigan Eliminates Pharmaceutical Company Immunity

Governor Whitmer recently signed Senate Bill 410 into law, which repeals the provision under Michigan’s Product Liability Act which granted immunity to pharmaceutical companies. A rebuttable presumption of non-liability and caps on non-economic damages remain intact.

Why it Matters: Pharmaceutical companies have had near-total immunity from product liability claims in Michigan for approximately 30 years. The law took effect on February 13, 2024.

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  1. Retroactive PPT Exemption

Some Michigan manufacturers who were not able to claim their 2021 ESA-PPT exemption due to COVID-19, have until March 14 to request approval from the State Tax Commission.

Why it Matters: The ESA is a State specific tax on personal property that is exempt from property taxes at the local level because the property meets certain eligibility requirements, such as being qualified manufacturing or industrial personal property. In order to elect out of local personal property taxes and into the ESA regime, manufacturers must file the required forms with their local assessing office by February 20th of each year. Learn more.

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  1. Michigan’s Repealed “Right-to-Work” Law Takes Effect

On Tuesday, February 13, 2024, Michigan’s repeal of the prior “right-to-work” law governing private-sector workers went into effect.

Why it Matters: The result of the repeal is that private-sector unions may permissibly negotiate to impasse, and enforce, “union security” provisions requiring membership in, or financial support through “Beck Objector” fees, of those unions. Read more.

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  1. Michigan Cannabis Exceeds $242 Million in January ‘24

Cannabis sales surpassed $242 million in January, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $240,289,360.60, while medical sales came in at $2,523,333.56, totaling $242,812,694.16.

Why it Matters: Marijuana sales remain strong in Michigan, particularly for recreational use. However, there still are significant concerns about profitability and market oversaturation that the industry is contending with.

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  1. Client Alert/Reminder: Form W-2 Reporting Due for Employer-Provided Health Care / Disclosure Due to CMS for Medicare Part D

Unless subject to an exemption, employers must report the aggregate cost of employer-sponsored health coverage provided in 2023 on their employees’ Form W-2 (Code DD in Box 12) issued in January 2024. Please see IRS Notice 2012-09. Additionally, group health plans offering prescription drug coverage are required to disclose to all Part D-eligible individuals who are enrolled in or were seeking to enroll in the group health plan coverage whether such coverage was creditable.

Why it Matters: The filing deadline is 60 days following the first day of the plan year. If you operate a calendar year plan, the deadline is the end of February. If you operate a non-calendar year plan, please be sure to keep track of your deadline. Contact your Fraser Trebilcock attorney for any questions.

Related Practice Groups and Professionals

Business & Tax | Paul McCord
Labor, Employment & Civil Rights | David Houston
Cannabis Law | Sean Gallagher
Employee Benefits | Bob Burgee
Employee Benefits

Michigan’s Repealed “Right-to-Work” Law Takes Effect

On Tuesday, February 13, 2024, Michigan’s repeal of the prior “right-to-work” law governing private-sector workers went into effect. The result of the repeal is that private-sector unions may permissibly negotiate to impasse, and enforce, “union security” provisions requiring membership in, or financial support through “Beck Objector” fees, of those unions. See NLRB FAQ’s.

Michigan’s “Freedom to Work” law enacted under Republican Governor Rick Snyder became effective in 2013. That law prohibited public and private sector employees from being required, as a “condition of employment,” to belong to a labor union or to pay a “service fee” in lieu of membership. The 2013 law invalidated any collective bargaining provision to the contrary, and prohibited enforcement of such unlawful provisions.

In 2023, Governor Gretchen Whitmer signed into law legislation repealing the Freedom to Work law insofar as it applies to private-sector employees. Governor Whitmer also signed a separate bill that would similarly repeal this prohibition as to public sector workers in the event the U.S. Supreme Court reverses a 2018 decision that essentially adopted similar “right-to-work” principles with respect to public sector employees and unions, which reversal has not occurred.  So, the present change does not affect the current prohibition of a membership requirement in a public sector collective bargaining agreement.

Per data collected by researchers available at unionstats.com, in 2022, close to 39,000 private sector workers in Michigan were covered by a collective bargaining agreement but were not union members paying dues or service fees. Now, those individuals may permissibly be required to pay dues or fees if “union security” provisions are bargained into, or “suspended” in, applicable collective bargaining agreements. In that event, affected employers could be required to fire bargaining unit workers who refuse to pay dues or fees under the enforcement of a lawful union security clause.

Employers with unionized workforces should anticipate attempts by unions to enforce “suspended” union security clauses or negotiate such provisions into future collective bargaining agreements, and plan accordingly. If you have questions about the new law or require assistance, please contact David J. Houston or your Fraser Trebilcock attorney.

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

Attorney David J. HoustonFraser Trebilcock Shareholder Dave Houston has over 40 years of experience representing employers in planning, counseling, and litigating virtually all employment claims and disputes including labor relations (NLRB and MERC), wage and overtime, and employment discrimination, and negotiation of union contracts. He has authored numerous publications regarding employment issues. You can reach him at 517.377.0855 or dhouston@fraserlawfirm.com.

Retroactive PPT Exemption

February is for lovers, and who doesn’t love a tax exemption? Some Michigan manufacturers who were not able to claim their 2021 ESA-PPT exemption due to COVID-19, have until March 14 to request approval from the State Tax Commission.

Eligible Michigan manufacturers can elect out of the personal property taxes and instead pay an Essential Services Assessment (ESA) at the state level. The ESA is a State specific tax on personal property that is exempt from property taxes at the local level because the property meets certain eligibility requirements, such as being qualified manufacturing or industrial personal property. In order to elect out of local personal property taxes and into the ESA regime, manufacturers must file the required forms with their local assessing office by February 20th of each year.

During calendar year 2021, some manufacturing businesses were not able to file the required paperwork by the due date as a result of COVID-19 restrictions.

On November 14, 2023, the Governor signed 211 PA 2023. As the legislation was not given immediate effect, that law went into effect February 13, 2024. The legislation allows manufacturers who did not elect out of local personal property taxes and into ESA due to the COVID-19 pandemic to retroactively claim eligible manufacturing personal property exemption for 2021.

If you have any questions as to whether your business can claim a retroactive 2021 ESA/PPT exemption, please contact your Paul McCord or your Fraser Trebilcock attorney.

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

Headshot of Fraser Trebilcock attorney Paul V. McCordFraser Trebilcock attorney Paul V. McCord has more than 20 years of tax litigation experience, including serving as a clerk on the U.S. Tax Court and as a judge of the Michigan Tax Tribunal. Paul has represented clients before the IRS, Michigan Department of Treasury, other state revenue departments and local units of government. He can be contacted at 517.377.0861 or pmccord@fraserlawfirm.com.