Quarterly Compass 1/1/25
Welcome back to “The Quarterly Compass,” the email newsletter of True North Legal Group. This resource is designed for entrepreneurs, small business owners, executives, and business-minded professionals in Northern Michigan.
Every quarter, we’ll head in four directions. First, the “East” section (directly below) will be dedicated to legal updates from TNLG that may be relevant to your venture. Then head “South,” where we’ll highlight a local business or entrepreneur doing great things in Northern Michigan. Out “West,” you’ll find information about future events or developments that may soon impact you, your business, or your employees. Finally, True “North” will include a short, actionable insight for personal or business growth.
No matter your bearing, we hope you’ll find “The Quarterly Compass” to be a helpful resource along the way.
Overtime Expansion Blocked by Federal Judge
With much still in flux as the newly elected Trump administration transitions to the White House, it remains to be seen how many recent changes on the federal level will continue in 2025 and beyond. However, one recent development is likely to remain under the new administration.
In 2019, the original Trump administration set the salary threshold for overtime eligibility at $35,568. The salary threshold refers to the minimum salary an employee must earn to qualify for exemption from overtime pay under the Fair Labor Standards Act (FLSA) in the United States. Employees earning less than this threshold are typically entitled to overtime pay—at least 1.5 times their regular hourly rate—for any hours worked over 40 in a workweek, regardless of their job duties.
In April 2024, the Biden administration introduced a rule aimed to increase the salary threshold to $43,888 as of July 1, 2024, with a further rise to $58,656 scheduled for January 1, 2025. This change was projected to extend overtime protections to approximately 4 million additional workers.
However, on November 15, 2024, a federal judge in Texas issued a nationwide injunction, effectively nullifying the overtime expansion rule. The judge concluded that the Biden administration had exceeded its statutory authority by placing undue emphasis on salary levels over job duties in determining overtime eligibility. He asserted that the elevated salary threshold diminished the significance of employees' actual job functions, contrary to the FLSA's intent in originally creating overtime pay entitlements.
Although the future remains uncertain, the Trump administration seems poised to:
- Preserve the Status Quo: Continue with the 2019 threshold ($35,568), citing a balanced approach that protects businesses from excessive costs while maintaining fairness for workers.
- Scale Back Regulations Further: This could involve introducing additional flexibility for businesses by revisiting other provisions of the Fair Labor Standards Act (FLSA) related to overtime or exempt status.
- Promote Employer Autonomy: We expect federal policies that allow businesses more discretion in defining overtime rules, aligning with a pro-business agenda.
True North Legal Group continues to monitor federal litigation and administrative changes as we help small businesses successfully navigate into 2025 and beyond.
Flabocce: NoMi’s Game of the Future
The day I met Jack Rutkowski, he unpacked his bag, handed me nine rubber-like discs, and challenged me to a game of “Flabocce” — short for “flat bocce.” There we stood, inside NoBo Market on Eighth Street, chucking “flabs” among curious coffee drinkers. Jack handily defeated me and then told me all about his inspiring business — from original design to local manufacturing, to growing customer loyalty. Now, TNLG is happy to be working with Jack as he expands Flabocce into 2025 and beyond.
Learn more in this Q&A:
1. What drew you to Northern Michigan and Traverse City in particular? Prior to the pandemic, my wife and I were living and working in Los Angeles. That summer, to escape city life, we came to stay for a few weeks to have some space and enjoy the perfect summer weather. Northwest Michigan was a happy place for me growing up, as we would come to a small cabin resort here every summer with the whole extended family. Revisiting that summer, we realized how much promise Northern Michigan offered. My wife and I were looking ahead to starting a family, and we saw how Traverse City had been evolving since the small summer town of my youth. This just felt like a place with the promise of growth, freedom, and opportunity.
2. What are the key characteristics of our community that inspired you to start a new venture? Well, it’s simply the spirit of Northern Michigan — this is a place of connection and recreation that dovetails perfectly with the leisure sport segment. The lynchpin for starting Flabocce was being able to work with a small local plastics shop, E&C Plastics. Working directly with a local manufacturer offers me the ability to be hands-on throughout the process, be able to iterate faster, run smaller batches to avoid over-buying inventory, and save on shipping costs as we are basically shipping direct from factory. The second element has been the Office of Possibilities. Will Kitchen really started something amazing in building a weekly gathering for local entrepreneurs to connect. I have met some amazing people there that I would never have discovered on my own.
3. What excites you about the next twelve months of your business? Well, 2024 was our launch, but we weren’t in full production until Labor Day. I am looking forward to being fully operational for the 2025 summer season. Recent customer feedback has been great, so 2025 is all about getting more people to know about Flabocce! I will be present at community events and hosting tournaments with the North American Flat Bocce Association, which is open to players of all ages and skill levels. Our second production run is taking place right now, and I am excited to be trying some new colors to add to the library, as well as developing the process for customization. We may not have Shark Tank numbers just yet, but for something that was just an idea in March, I can only marvel at the progress we have made! Jack Rutkowski calls Northern Michigan “the home of gathering.” His locally manufactured Flabocce game is about “inspiring community and play anywhere.”
Get your Flabocce kit now! They are great fun — easy to learn, simple to pack, and enjoyable for everyone. We even play around the True North Legal Group office! Learn more and buy at flabocce.com, and connect with Jack — jack@flabocce.com.
Increasing Minimum Wage in Michigan
Michigan’s minimum wage is set to undergo several changes in the first quarter of 2025, beginning with an increase TODAY (January 1). The standard minimum wage will rise from $10.33 to $10.56 per hour, while the tipped employee wage will increase from $3.93 to $4.01 per hour. Additionally, a second major adjustment is expected on February 21, 2025. These changes represent a significant shift for small businesses, particularly in industries with a high proportion of hourly and tipped employees, such as hospitality, retail, and food service. Employers must proactively update their payroll systems, employee agreements, and pricing models to accommodate these increases while ensuring compliance with Michigan labor laws. Communication with employees about these changes will also be crucial to fostering transparency and trust. True North Legal Group continues to work with our member businesses to navigate these adjustments effectively, avoid penalties, and strategically plan for the higher labor costs these changes will bring.
Annual Goal Setting and Theme Establishment
Every year, I dedicate a full day to goal setting in the four most important areas of my life - health, marriage, fatherhood, and business. For me, goal setting is the foundation of personal and professional growth. I begin by reflecting on the past year. What went well? What challenges did I face? What lessons did I learn? I then use this reflection to inspire a vision for the year ahead and set goals for all areas of life. Finally, I identify a one-word theme for the year that encapsulates my focus and aspiration.
With the new year upon us, take the time to engage in this exercise. Look back on 2024 and identify the challenges and opportunities. Then picture where you want your business to be and how you want it to grow in 2025. Finally, identify your one-word theme; for example, Launch might inspire bold new initiatives, while Flourish could focus on nurturing and expanding what you’ve already built.
For True North Legal Group and I, 2025’s theme is set — Ascend.
Happy New Year!
Thank you for reading “The Quarterly Compass,” the email newsletter of True North Legal Group designed to help small business owners, entrepreneurs, executives, and business-minded professionals in Northern Michigan.