Quarterly Compass 4/1/25
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.
Major Policy Shifts for Small Business
Since January 1, 2025, Michigan small business owners have faced regulatory whiplash. from new state mandates to unexpected federal rollbacks. Here are three major developments to watch—expanded paid sick leave, the reversal of BOI reporting rules, and the phased-out tipped minimum wage—each with serious implications for how you operate and plan ahead.
Michigan Earned Sick Time Act (ESTA)
After months of legal back-and-forth, ballot proposals, and behind-the-scenes negotiations, Michigan’s amended Earned Sick Time Act (ESTA) took effect on February 21, 2025. The result is a compromise law that expands paid sick leave while giving small businesses (those with 10 or fewer employees) until October 1 to comply. Employees now earn one hour of paid sick time for every 30 hours worked—capped at 72 hours for larger employers and 40 for smaller ones. Businesses can frontload the full annual allotment to simplify tracking, though part-time employees must receive written notice of any prorated amount. If using accrual, unused time rolls over (up to the applicable cap).
The updated law brings added flexibility. Employers can impose a 120-day waiting period for new hires, allow sick time in hourly or standard increments, and request documentation for absences longer than three days. Pay only needs to reflect base wages—not bonuses, overtime, or tips. Importantly, the law limits legal exposure by eliminating private lawsuits and requiring administrative complaints to be filed within three years. Employers must provide written sick leave policies, so now’s the time to get your documentation in order.
FinCen/BOI Reporting
After all the panic, paperwork, and password resets small business owners endured in 2024 to avoid prison over BOI reporting—turns out, you didn’t need to do it after all. As of March 26, 2025, U.S. small businesses no longer have to file BOI reports under the Corporate Transparency Act—FinCEN scrapped the requirement for domestic entities. Only foreign companies registered to do business in the U.S. are now on the hook, with new deadlines in place. No action is needed for U.S. businesses, and earlier compliance guides are now outdated. That said, FinCEN is warning of scams demanding fake BOI submissions, so stay alert.
Michigan Tipped Minimum Wage
Finally, in a significant shift from earlier expectations, Michigan has backed away from fully eliminating the tipped minimum wage. A February 2025 legislative compromise preserves the tip credit system, phasing in gradual increases from 38% of the minimum wage in 2025 to 50% by 2031. At the same time, the standard minimum wage will reach $15/hour by 2027, and new provisions introduce stricter penalties for wage violations and expand overtime eligibility. Employers should update payroll systems accordingly and prepare for annual rate adjustments beginning each January starting in 2026. The revised structure offers more predictability for restaurants and hospitality businesses, with updated documentation requirements now in place to verify that combined wages and tips meet state thresholds.
Planning Forward
Taken together, these changes reflect a fast-moving and often unpredictable regulatory environment for Michigan employers. Staying compliant—and ahead—means tracking legislative shifts, adjusting internal policies, and not waiting until issues become problems. That’s why we publish The Quarterly Compass and provide real-time updates through True North Legal Group—so you always know what’s coming and how to respond. Make sure you're reading, following, and reaching out when you need support.
S2S Sugar 2 Salt: Community, Served Daily
If you’ve ever been greeted by Stephanie Wiitala’s warm smile at S2S Sugar 2 Salt in the Grand Traverse Commons, you’ve already felt the comfort and purpose that drives her breakfast and catering business. Born and raised in Northern Michigan, Stephanie and her team have spent the past eight years creating a seasonal, community-rooted dining experience that starts each day with intention. Now, as S2S continues to grow its wholesale, retail, and catering operations, we’re proud to welcome them as one of True North Legal Group’s member businesses.
Learn more in this Q&A:
This is home for you. What kept you in Northern Michigan and Traverse City all these years?
Northern Michigan is my favorite place on earth for endless reasons, from the four seasons to the abundance of natural resources. I can’t imagine a more perfect place than my favorite beach — Good Harbor Bay. But what has truly kept us here is the abundance of family and friends in the area. To me, it’s really special to be able to celebrate holidays and important occasions with family and friends. When my kids were younger, those close to us were super helpful with the kids during times when our business got busy, which was a huge part of our success as entrepreneurs. As a restaurateur and small business owner for most of my career, I have recognized my community is very supportive. There is a shared success in everybody doing well, and we have felt that time and time again in all aspects of our business.
What are the key characteristics of our community that inspired you to start Sugar 2 Salt eight years ago?
When my partner, Jonathan, and I decided to open a restaurant in Traverse City, we recognized there was a need for a daytime option in the area. With young kids in school, the hours aligned, and it was important to us to be home at the end of each day to spend time as a family. By the time we opened S2S, we had a local following and were excited to share our innovative ideas. Our dedication to local and seasonal ingredients has also been a great fit community-wise. We are so proud to have forged many friendships and partnerships over the years with other local producers. Working with seasonal ingredients challenges us every day to think outside the box, which is an important component to our success. In fact, our customers have come to expect and know that the menu can change almost daily. It’s fun to see their delight whenever something new is available to order, or purchase and take home.
What excites you about the next twelve months of your business?
2025 is going to rock! We are excited to pursue many of the strategic goals set out in our new three-year business plan, to include increasing our market share by growing the wholesale and retail side of our business — with packaged products, like our beloved English muffins and granola, available in retail and grocery locations throughout Northern Michigan. Another goal is boosting our presence on social media as a continuation of telling our story. This helps to promote a genuine connection with our customers and meet new guests who may be introduced to us in unexpected ways.
Over these next twelve months, we are excited to continue to grow our business in a safe and healthy way. We cherish the opportunity to contribute to our community by providing enjoyable dining experiences, where our customers and clients feel like they not only got their money's worth, but also their "memories worth" from the love and effort we put forth everyday at S2S Sugar 2 Salt.
Is your stomach already growling? Head to S2S Sugar 2 Salt this week (open 9-2 daily) — they’re in the Water Tower District at Grand Traverse Commons, next to Pure Pilates and Earthen Ales. Or learn more at www.sugar2salt.com.
New H-1B Rules Bring Opportunity and Oversight
H-1B visas allow U.S. employers to hire foreign workers in specialty occupations that typically require a bachelor’s degree or higher—think engineers, software developers, or architects. Beginning January 17, 2025, the H-1B Modernization Rule will streamline parts of the process while increasing compliance demands. The updated rule clarifies that a “logical connection” must exist between an employee’s degree and job duties, expands eligibility for startup founders to self-petition, and adds stricter documentation—especially for remote roles. Michigan small businesses, particularly in tech or engineering, may benefit from new flexibility in sponsoring global talent but will face shorter approval periods, increased site visits, and higher compliance costs. Employers must also update Labor Condition Applications (LCAs) for remote workers and be prepared to show tighter alignment between education and job responsibilities. On the plus side, renewing existing H-1B workers should be easier, thanks to the return of a critical deference policy.
Unplug to Refocus: Analog Quarterly Planning
Every quarter, soon after hitting send on The Quarterly Compass, I head to my favorite coffee shop, unplug from the digital noise, and sit down with a notebook and pen to reflect on my business—no screens, no devices, just space to think. I revisit our core values, check in on the goals we’ve set, and explore new ideas without distraction. This analog business planning session has become a key part of how I stay grounded, strategic, and aligned with what truly matters in our work at True North Legal Group.
For small business owners, the practice doesn’t have to be complicated. Block off a quiet hour each quarter, grab your favorite notebook, and give yourself permission to think without tech. Reflect on what’s going well, what feels off, and where you want to go next. Jot down ideas, questions, or themes—not a to-do list, but a space to reconnect with your purpose. It’s a simple habit that can lead to powerful clarity.
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.