Five Stories That Matter in Michigan This Week – January 5, 2024

  1. Reminder: Michigan LLCs Must File Annual Report by February 15

With the new year upon us, we want to remind you that limited liability companies formed with the Michigan Department of Licensing and Regulatory Affairs must file their annual report (called an Annual Statement) by February 15.

Why it Matters: LLCs that fail to file are subject to fines. More importantly, failure to file an annual report after two consecutive years results in an LLC falling out of good standing with the state of Michigan, which may lead to the dissolution of the entity. Contact a Fraser Trebilcock lawyer if you require help with corporate filing and reporting requirements.

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  1. Michigan Minimum Wage Increased After New Year

Now that we’re into calendar year 2024, Michigan’s minimum wage has increased per the Improved Workforce Opportunity Wage Act of 2018 which establishes the annual schedule of increases. The minimum hourly wage increased to $10.33 per hour; the 85% rate for minors aged 16 and 17 increased to $8.78 per hour; the tipped employee rate of hourly pay increased 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: It’s important to be aware of new laws, and changes to existing laws, that have taken effect as of January 1, 2024. Contact us with any questions.

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  1. Fraser Trebilcock Announces Department Chairs for 2024

Fraser Trebilcock announces new Department Chairs for 2024: Sean P. GallagherAdministrative LawRobert D. Burgee and Paul V. McCordBusiness & TaxRobert D. BurgeeEmployee Benefits: Welfare/HealthDavid J. HoustonLabor, Employment, and Civil RightsMichael P. DonnellyLitigationJared A. RobertsReal Estate; and Marlaine C. Teahan and Mark E. KelloggTrusts and Estates.

Why it Matters: A new year brings a renewed commitment to leadership within our firm. 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. Read more.

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  1. Reminder: Prevailing Wage Act Being Reinstated in Michigan in 2024

It’s important for businesses to be aware of laws that will take effect in 2024. One is the reinstatement of Michigan’s Prevailing Wage Act (the “Act”), which will require contractors and subcontractors in Michigan to pay the prevailing wage and benefit rates to employees working on most state funded construction projects.

Why it Matters: A prevailing wage law was in effect in Michigan from 1965 until 2018 when the law was repealed. On March 24, 2023, Governor Whitmer signed the Act into law. It will take effect in March of 2024.

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  1. How do you Defend an Amazon Neutral Patent Evaluation?

Amazon’s Neutral Patent Infringement Program (NPE) is Amazon’s version of a quasi-judicial court to resolve patent infringement disputes between sellers. It is akin to an arbitration or mediation overseen by an experienced and vetted patent practitioner. NPE is not a court of law, so any of the rulings are not prejudicial on any platform or marketplace other than Amazon.com. However, it aims to provide a more cost-effective method to resolve patent disputes between sellers.

Why it Matters: The program is initiated once a patent holder submits a complaint to Amazon through Amazon’s seller portal. The accused product is immediately removed from its Amazon listing and the accused infringer is notified. The accused infringer then may negotiate a settlement directly with the rights holder or agree to participate in the NPE program. Learn more from your Fraser Trebilcock attorney.

Related Practice Groups and Professionals 

Business & Tax | Robert Burgee
Labor, Employment & Civil Rights | David Houston
Intellectual Property | Andrew Martin

Five Stories That Matter in Michigan This Week – December 22, 2023

  1. Reminder: Prevailing Wage Act Being Reinstated in Michigan in 2024

As we prepare for the calendar to turn to 2024, it’s important for businesses to be aware of laws that will take effect in the new year. One is the reinstatement of Michigan’s Prevailing Wage Act (the “Act”), which will require contractors and subcontractors in Michigan to pay the prevailing wage and benefit rates to employees working on most state funded construction projects.

Why it Matters: A prevailing wage law was in effect in Michigan from 1965 until 2018 when the law was repealed. On March 24, 2023, Governor Whitmer signed the Act into law. It will take effect in March of 2024.

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  1. How do you Defend an Amazon Neutral Patent Evaluation?

Amazon’s Neutral Patent Infringement Program (NPE) is Amazon’s version of a quasi-judicial court to resolve patent infringement disputes between sellers. It is akin to an arbitration or mediation overseen by an experienced and vetted patent practitioner. NPE is not a court of law, so any of the rulings are not prejudicial on any platform or marketplace other than Amazon.com. However, it aims to provide a more cost-effective method to resolve patent disputes between sellers.

Why it Matters: The program is initiated once a patent holder submits a complaint to Amazon through Amazon’s seller portal. The accused product is immediately removed from its Amazon listing and the accused infringer is notified. The accused infringer then may negotiate a settlement directly with the rights holder or agree to participate in the NPE program. Learn more from your Fraser Trebilcock attorney.

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  1. Fraser Trebilcock Announces 2024 Board of Directors

The Shareholders of Fraser Trebilcock, one of Michigan’s long-established full-service law firms, have elected Thaddeus E. Morgan as President of the firm. Shareholders H. Kirby Albright and Ryan K. Kauffman were re-elected to the Board of Directors. Mr. Albright will serve as Vice President & Treasurer, and Mr. Kauffman 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 Cannabis Exceeds $260 Million in November

Cannabis sales surpassed $260 million in November, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $256,677,143.52, while medical sales came in at $3,808,138.68, totaling $260,485,282.20.

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. Cass County Circuit Court Rules that Growing Cannabis is an “Agricultural Operation” Under Michigan’s General Property Tax Act

HRP Cassopolis, LLC (“HRP”) owns real property located in LaGrange Township, located in Cass County, Michigan. The property, which consists of two parcels, is leased to a cannabis grower and retailer. LaGrange Township’s assessor classified both parcels as “Commercial” under the Michigan General Property Tax Act (“GPTA”). In response to the classification, HRP submitted a petition to the board of review, which denied the petition. HRP then appealed to the State Tax Commission, which also upheld the decision to classify the parcels as commercial. HRP then filed a Claim of Appeal with the Cass County Circuit Court.

Why it Matters: On appeal, the appellee argued that the assessor properly classified the property as commercial because HRP did not establish that growing cannabis is an “agricultural operation” under the GPTA. The GPTA defines an agricultural operation as “growing and harvesting any agricultural, horticultural, or floricultural commodity.” The Circuit Court rejected the appellee’s arguments and ruled in favor of HRP. The court explained that caselaw requires it to give the words in a statute their plain and ordinary meaning, and in this case, according to the court, “cannabis cultivation falls squarely within [GPTA’s] definition of an agricultural operation.”

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Intellectual Property | Andrew Martin
Cannabis Law | Sean Gallagher