Tag: minimum wage increase

Five Stories That Matter in Michigan This Week – November 24, 2023

  1. Michigan Minimum Wage Set for Small Increase for 2024

Michigan’s minimum wage is set to increase on January 1, 2024, per the Improved Workforce Opportunity Wage Act of 2018 which establishes the annual schedule of increases. The minimum hourly wage will increase to $10.33 per hour; the 85% rate for minors aged 16 and 17 will increase to $8.78 per hour; the tipped employee rate of hourly pay increases to $3.93 per hour; and the training wage of $4.25 per hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged.

Why it Matters: As we approach the new year, t’s important to be aware of new laws, and changes to existing laws, that are set to take effect as of January 1, 2024. Contact us with any questions.

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  1. Streamline Corporate Transparency Act Reporting with a FinCEN Identifier

The Financial Crimes Enforcement Network (FinCEN), announced and elaborated on the use and availability of FinCEN identifiers. Under this new guidance, FinCEN identifiers may be crucial for business owners, particularly for those managing multiple entities.

Why it Matters: A FinCEN identifier is a unique number assigned by FinCEN to individuals and reporting companies, streamlining the reporting process under the CTA. Businesses will need to be prepared come 2024 for the new reporting requirements. Learn more from your Fraser Trebilcock attorneys.

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  1. Michigan Cannabis Sales Exceed $262 Million in October

Cannabis sales surpassed $262 million in October, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $258,474,612.51, while medical sales came in at $4,416,590.58, totaling $262,891,203.09.

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. Package of Clean Energy Bills Head to Governor’s Whitmer’s Desk

A package of bills, including one that would require companies to make 100% of their energy through renewables such as solar and wind by 2040, and also seeks to reduce energy waste, among other objectives, is on its way to Governor Whitmer’s desk for signature after passing both the Senate and House.

Why it Matters: Clean energy legislation is a major priority for Michigan Democrats but is opposed by Republicans and has received pushback from many business groups, who argue the legislation would increase energy costs.

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  1. CRA Issues Bulletin for Product Recall

On November 20, the Cannabis Regulatory Agency (CRA), issued a bulletin for a voluntary product recall, after it was discovered that the product exceeds the maximum dosage of 10mg of THC per serving.

Why it Matters: It is important for cannabis producers to adhere to the rules and regulations when handling medical and adult-use cannabis, otherwise they can face product recalls and fines and/or penalties.

Related Practice Groups and Professionals

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

Five Stories that Matter in Michigan This Week – December 9, 2022

  1. Probate Court May Appoint Guardian Even Though Patient Advocate Already in Place

In the case In re Guardianship of Tyler J. Newland, the Michigan Court of Appeals held in an unpublished decision that a probate court may appoint a guardian for an individual who already has a patient advocate in place. The case involved a hospital that petitioned the probate court for the appointment of a guardian, alleging that a guardian was needed because the advocate for one of the hospital’s patients was not acting consistent with the patient’s best interests.

Why it Matters: This case highlights the need for experienced and effective estate planning legal counsel. For help with your estate planning needs, please contact a member of Fraser Trebilcock’s Trusts & Estates team.

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  1. Minimum Wage Set to Increase, With or Without Court Action

On Monday, December 5, 2022, the Michigan Department of Labor and Economic Opportunity announced the effective minimum wages for 2023, setting the standard minimum wage at $10.10 per hour.

Why it Matters: The Department’s notice cautioned that the announced rates were subject to change, pending a decision by the Michigan Supreme Court regarding the Michigan Legislature’s amendment to a successful 2018 ballot initiative. In any event, workers and employers can expect higher wage rates in the new year, just how much higher will be determined in the coming weeks and months. Learn more on the subject.

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  1. The Demise of the Open and Obvious Defense? (Michigan’s Evolution of Premises Liability Law)

Premises liability cases are often litigated in Michigan with considerable difficulty. In a premises liability claim, a possessor of land owes a duty to an invitee to exercise reasonable care to protect them from an unreasonable risk of harm caused by a dangerous condition on the land. However, plaintiffs frequently find difficulty in successfully making claims under a premises liability theory due to the “open and obvious” defense.

Why it Matters: Michigan courts have traditionally held that the hazards presented by snow, snow-covered ice, and observable ice are open and obvious and do not impose a duty on the premises possessor to warn of or remove the hazard. However, the courts appear to be slowly eroding this traditional approach. Learn more on the subject.

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  1. Tax Changes Coming for Research & Experimental Expenditures

For tax years beginning in 2022, research and experimental (R&E) expenditures are no longer immediately expensed but rather must be amortized over five years (15 years for foreign expenditures). This change to the tax treatment of R&E expenditures was included as a revenue raiser for the federal government to help pay for other tax breaks in the Tax Cuts and Jobs Act passed at the end of 2017.

Why it Matters: Guidance is needed immediately for the 2022 tax year, especially for corporations that must prepare financial statements. The post-2021 tax treatment of R&E expenditures is inconsistent with financial accounting principles that requires most research and development costs to be expensed immediately.

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  1. Judge Upholds CRA’s Decision to Suspend Licenses for Flint Marijuana Business

As we covered in a previous newsletter, the Michigan Cannabis Regulatory Agency suspended Green Culture’s medical and recreational licenses after they were found to have sold unregulated products that may have contained several contaminants, such as mold and/or bacteria. Following a two-day hearing, a judge sided with the state agency and upheld the suspension.

Why it Matters: Marijuana businesses should heed this as a warning, the CRA are cracking down on businesses that do not follow the strict guidelines and rules laid out by the state agency. Contact our cannabis law attorneys if you have any questions.

Related Practice Groups and Professionals
Trusts & Estates | Melisa M. W. Mysliwiec
Business & Tax | Robert Burgee
Insurance Law | Laura DeMarco
Business & Tax  | Paul McCord
Cannabis Law | Sean Gallagher