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Pentastar Aviation Named No. 1 FBO in the Americas for Fourth Consecutive Year

Pentastar Aviation, a trusted partner in global private aviation services, was once again crowned the No. 1 FBO in the Americas by Aviation International News (AIN), retaining the top place of the highly competitive industry survey for the fourth consecutive year.

“Our entire team is dedicated to providing exceptional service to our customers, and the commitment we’ve made to exceed expectations in our operations has paid dividends with this latest recognition from AIN and its readers, who trust us to deliver an outstanding experience with every trip,” said Brad Bruce, Pentastar President and CEO. “We are proud to receive this honor and retain our place as the leading, most awarded FBO in the U.S.”

AIN readers evaluated hundreds of aircraft handling facilities on a 1 to 5 scale in five categories—line service, passenger amenities, pilot amenities, facilities, and CSRs—awarding Pentastar an overall score of 4.81, an improvement of 0.03 points from 2023. Pentastar is also the only facility to be ranked among the top 10 locations in all five categories for the second straight year. The AIN FBO Survey 2024 results are viewable here.

Founded in 1964 and located at Oakland County International Airport in Waterford, Michigan, Pentastar has serviced both regional and global travelers to create an ease of access into southeast Michigan and the surrounding areas for personal travel and corporate flyers alike. In addition to its award-winning FBO with detail-oriented, high-end service, Pentastar also provides private charter flights, comprehensive aircraft management services, full MRO services, and advisory and consultative guidance.

For more about Pentastar Aviation, visit pentastar.aero.

Just Lead: Advancing Racial Equity Leadership Awards – Nominations Open

New Detroit Inc., the nation’s first racial justice coalition that works toward racial equity and dismantling systemic racism, has announced it is accepting nominations for its inaugural “Just Lead: Advancing Racial Equity 2024 Leadership Awards.” Just Lead is New Detroit’s annual leadership conference that celebrates and informs leaders in racial equity. The awards are open to leaders in Michigan with an emphasis on impact in Southeast Michigan.

New Detroit will choose one recipient from the following categories:

•Lifetime Achievement: With this award, we celebrate a leader whose lifetime efforts have made a lasting impact on advancing racial equity.

•Young Leader (up to age 30): This award recognizes a young leader who has demonstrated leadership in advancing racial justice in their communities, schools, workplaces or other institutions.

•Just Lead Racial Equity in Leadership: This award will be given to an individual in a leadership role in business, municipal or nonprofit organizations who has made an impact towards racial equity.

•Just Care® Racial Equity in Healthcare: This award will recognize an individual or organization that has demonstrated commitment to correcting health disparities within minority populations.

•Just Place® Racial Equity in Public Space: With this award, we celebrate an individual or organization that has demonstrated significant leadership and impact for ensuring our public spaces are vibrant, welcoming and accessible for all

New Detroit will recognize five leaders from the above categories at its annual Just Lead Conference on October 17, 2024 at a luncheon at the Icon, Detroit. The awardees will also participate in a fireside chat with New Detroit’s CEO, Michael Rafferty at the Conference.

Ford’s First-Quarter Profits Down 28 Percent

Ford Motor Co. said Wednesday it made $1.3 billion in net income in the first quarter of 2024, a 28% decrease year-over-year.

That profit, the automaker said, came on $42.8 billion in revenue, which was up 3.1%. Analysts, Yahoo Finance had been reporting, were projecting the Dearborn automaker to land around $37.63 billion in revenue and 40 cents for earnings per share.

Ford’s shares in post-market trading were up 2% to $13.31 per share, the Detroit News reported.

“Customers want vehicles that they’re passionate about, choices in how they’re powered, quality that’s constantly getting better and great value,“ CEO Jim Farley said in a statement. “With Ford+, we’re increasingly giving them all those things in ways that others don’t and creating a company that will lead for the long haul.”

For the January-through-March quarter, Ford posted adjusted operating earnings of $2.8 billion, down 18% year-over-year, from January through March.

Ford’s U.S. sales were up nearly 7% in the first quarter, though F-Series trucks were down 10%. The automaker now has a full lineup of the refreshed F-150 full-size trucks, including the Lightning all-electric model, and the new midsize Ranger being shipped, the News reported.

The loss posted by Ford Model e, the business unit dedicated to electric vehicles, was $1.32 billion compared to $722 million a year ago. Lightning shipments were held up starting in early February over an undisclosed quality issue.

Ford maintained its guidance for full-year adjusted operating income of $10 billion to $12 billion. The company increased adjusted free cash flow upward: $6.5 billion to $7.5 billion from the initial outlook of $6 billion to $7 billion. Additionally, Ford anticipates capital expenditures for the year of $8 billion to $9 billion, narrowing the $8 billion-to-$9.5 billion original estimation.

The company also remains on track to cut $2 billion in areas like materials, freight and manufacturing, according to the News’ report.

AARP Study: Older Americans Don’t Think They’ll Be Able to Retire

A new AARP survey finds that 20% of adults ages 50+ have no retirement savings, and more than half (61%) are worried they will not have enough money to support them in retirement.

The findings also reveal a decline in overall sense of financial security among men, 42% of whom describe their financial situation as “fair” or “poor,” up from 34% in the beginning of 2022. However, roughly 40% of men who are regularly saving for retirement believe they are saving enough, compared to just 30% of women.

In a release posted to the organization’s website, AARP Senior Vice President Indira Venkateswaran said every adult “deserves to retire with dignity and financial security,” but that many don’t expect to be able to.

“Far too many people lack access to retirement savings options and this, coupled with higher prices, is making it increasingly hard for people to choose when to retire,” Venkateswaran said. “Everyday expenses continue to be the top barrier to saving more for retirement, and some older Americans say that they never expect to retire.”

Nearly one-third (30%) of older adults who carry over a credit card balance from month-to-month report carrying a balance of $10K or more, while 12% described their balance as $20K or more, up from 8% roughly a year ago.

Despite this, 33% of respondents ages 50+ believe their finances will be better 12 months from now, but the lingering effects of inflation and high costs are still apparent:

  • More than one-third (37%) are worried about covering basic expenses, such as food and housing.
  • More than a quarter (26%) are worried about covering family caregiving costs.
  • Seven in 10 (70%) are worried about prices rising faster than their income.
  • Over a quarter (26%) of people who are not yet retired say they expect to never retire.


“America is facing a serious retirement crisis. AARP has a long history of supporting legislation to expand access to retirement savings, but Congress must act more swiftly to provide the financial support older Americans need and deserve,” said Nancy LeaMond, AARP Executive Vice President and Chief Advocacy & Engagement Officer. “We have worked with 19 states to create programs to make it easier for people whose employers don’t offer a retirement plan to be able to save for their future. But about two-thirds of states have yet to act, and we await action from the federal government.”

Americans are 15 times more likely to save for retirement when they have access to a workplace plan. Yet nearly 57 million people do not have access to a retirement plan at work.

Congress is currently considering different pieces of legislation that would expand retirement security, including the bipartisan Retirement Savings for Americans Act of 2023, which would provide retirement savings accounts to eligible workers without employer-sponsored retirement plans, and the Automatic IRA Act of 2024

Eight states have auto-IRA programs up and running: California, Colorado, Connecticut, Illinois, Maine, Maryland, Oregon, and Virginia, while Massachusetts has a multiple employer plan in place. Ten other states have passed legislation and are at various stages of implementation, including Washington, where auto-IRA legislation was signed into law last month.   To view the full Financial Security Trends Survey and methodology, visit aarp.org/financialtrends. And learn more about AARP’s ongoing efforts to make it easier for everyone to save for retirement.

U.S. Growth Slowed Sharply Last Quarter to 1.6% Pace

The consistent hikes in interest rates by the Federal Reserve – 11 increases since May 2022 – and the resulting higher-than-normal rates may be having an effect on the nation’s economy.

Reports show the nation’s economy slowed last quarter, growing at an annual rate of 1.6%, indicating the rates may be affecting borrowing and spending.

Thursday’s report from the Commerce Department said the gross domestic product — the economy’s total output of goods and services — decelerated from its brisk 3.4% growth rate in the final three months of 2023, according to a report from The Associated Press. Consumers continued to drive growth in the January-March quarter but slowed their spending.

Although inflation has slowed sharply, to 3.5% from 9.1% in 2022, prices remain well above their pre-pandemic levels.

The economy’s gradual slowdown reflects the much higher borrowing rates for home and auto loans, credit cards and many business loans.

Despite that, the United States has continued to outpace the rest of the world’s advanced economies. The International Monetary Fund has projected that the world’s largest economy will grow 2.7% for all of 2024, up from 2.5% last year and more than double the growth the IMF expects this year for Germany, France, Italy, Japan, the United Kingdom and Canada, the AP reported.

Kristalina Georgieva, the IMF’s managing director, cautioned last week that the “flipside″ of strong U.S. economic growth was that it was ”taking longer than expected” for inflation to reach the Fed’s 2% target, although price pressures have sharply slowed from their mid-2022 peak, according to the AP.

Unemployment Claims Drop to Lowest Level in 9 Weeks

The number of Americans filing for unemployment benefits has been on something of a roller-coaster lately.

This week, it was down.

Fewer Americans applied for unemployment benefits last week, according to figures released by the Labor Department, which showed that unemployment claims for the week ending April 20 fell to 207,000, a 5,000-claim drop from the previous week’s 212,000. That’s the fewest since mid-February.

The four-week average of claims, which smooths out some of the weekly up-and-downs, ticked down by 1,250 to 213,250.

Weekly unemployment claims have remained at historically low levels since the pandemic purge of millions of jobs in the spring of 2020.

Last month, U.S. employers added 303,000 jobs. The unemployment rate dropped slightly, from 3.9% to 3.8%, and has now remained below 4% for 26 straight months, the longest such streak since the 1960s.

A total of 1.78 million Americans were collecting jobless benefits during the week that ended April 13, 15,000 fewer than the previous week.

Southwest Airlines Dropping Four Airports, Cuts Hiring

Southwest Airlines is cutting operations at four airports after losing $231 million in the first quarter.

The Dallas-based airline on Thursday reported lower expectations for revenue to be down as much 3.5% and capacity growth is estimated to grow 4%, previously 6%. It’s also anticipating aircraft seats available and trip frequency to decline in the third and fourth quarters of 2024.

On Aug. 4, the airline will also cease operations at Bellingham International Airport, Cozumel International Airport, Houston’s George Bush Intercontinental Airport and Syracuse Hancock International Airport, according to a report from the Dallas Morning News. It’s also implementing capacity reductions in both Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport.

“While it is disappointing to incur a first quarter loss, we exited the quarter with healthy profits and margins in the month of March,” Bob Jordan, CEO of Southwest, said in a release. “We are focused on controlling what we can control and have already taken swift action to address our financial underperformance and adjust for revised aircraft delivery expectations. I want to thank our more than 74,000 employees…as we adapt to aircraft delivery constraints and adjust to slower than planned growth for this year and next.”

According to the release, the airline is implementing “cost control initiatives,” which include limiting hiring and offering voluntary time off. It expects to end the year with 2,000 less employees compared to the end of 2023.

Southwest has also lowered its expectations for aircraft deliveries from plane maker Boeing Co., where it now it expects 20 Boeing 737 Max 8 aircraft deliveries in 2024, when it previously anticipated 46. In March, a regulatory filing reported the airline lowered its expectations to 46, from previously 79.

“Achieving our financial goals is an immediate imperative,” Jordan said. “The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025.”

Massaron to headline Michigan Supreme Court Symposium

The appeal of a landmark eminent domain case in the city of Detroit’s storied Poletown neighborhood will be the focus of a symposium on May 9, featuring Plunkett Cooney appellate attorney Mary Massaron.

Massaron, who represented the plaintiffs in County of Wayne v. Hathcock, will lend her perspective to the panel discussion during the Michigan Supreme Court Advocates Guild’s symposium, which will also feature former Michigan Supreme Court Chief Justice Robert Young, the author of the Hathcock decision, and former Supreme Court Justice James Ryan, the author of the dissent in Poletown.

The symposium, titled: “The Story of Poletown – A Night of Hathcock, Eminent Domain and the Michigan Supreme Court,” will take place at 5 p.m. in the Partrich Auditorium at Wayne State University Law School. Billed as a night of fun, sophistication and the law, the free event is open to the public, but email registration is required by clicking here. A short reception will follow the panel discussion at 6:15 p.m.

“This was one of the most high-profile and high-stakes cases in my career,” said Massaron, a partner in Plunkett Cooney’s Bloomfield Hills office and one of the firm’s most accomplished appellate attorneys. “I think it will be fun and insightful to discuss this case with two former Supreme Court justices who played pivotal roles in the decision.”

A former law clerk to Justice Patricia J. Boyle of the Michigan Supreme Court, Massaron has handled or supervised the handling of over 400 appeals, resulting in approximately 150 published opinions, including over 100 appeals in the Sixth Circuit Court of Appeals. Ms. Massaron’s appellate advocacy is widely known. She has won numerous victories before the Michigan Supreme Court for public- and private-sector clients, overturning multi-million-dollar judgments and establishing new legal principles.

Labor Department Rule Would Grant Overtime Pay to Salaried Workers

The U.S. Department of Labor announced a final rule that expands overtime protections for millions of the nation’s lower-paid salaried workers by increasing the salary thresholds required to exempt a salaried bona fide executive, administrative or professional employee from federal overtime pay requirements. 

Effective July 1, the salary threshold will increase to the equivalent of an annual salary of $43,888 and increase to $58,656 on Jan. 1, 2025. The July 1 increase updates the present annual salary threshold of $35,568 based on the methodology used by the prior administration in the 2019 overtime rule update.

On Jan. 1, 2025, the rule’s new methodology takes effect, resulting in the additional increase. In addition, the rule will adjust the threshold for highly compensated employees. Starting July 1, 2027, salary thresholds will update every three years, by applying up-to-date wage data to determine new salary levels.

“This rule will restore the promise to workers that if you work more than 40 hours in a week, you should be paid more for that time,” said Acting Secretary Julie Su. “Too often, lower-paid salaried workers are doing the same job as their hourly counterparts but are spending more time away from their families for no additional pay. That is unacceptable. The Biden-Harris administration is following through on our promise to raise the bar for workers who help lay the foundation for our economic prosperity.”

The department conducted extensive engagement with employers, workers, unions and other stakeholders before issuing its proposed rule in September 2023, and considered more than 33,000 comments in developing its final rule. The updated rule defines and delimits who is a bona fide executive, administrative and professional employee exempt from the Fair Labor Standards Act’s overtime protections. 

“The Department of Labor is ensuring that lower-paid salaried workers receive their hard-earned pay or get much-deserved time back with their families,” said Wage and Hour Administrator Jessica Looman. “This rule establishes clear, predictable guidance for employers on how to pay employees for overtime hours and provides more economic security to the millions of people working long hours without overtime pay.”

Key provisions of the final rule include the following:

  • Expanding overtime protections to lower-paid salaried workers.
  • Giving more workers pay or valuable time back with their family: By better identifying which employees are executive, administrative or professional employees who should be overtime exempt, the final rule ensures that those employees who are not exempt receive time-and-a-half pay when working more than 40 hours in a week or gain more time with their families.
  • Providing for regular updates to ensure predictability. The rule establishes regular updates to the salary thresholds every three years to reflect changes in earnings. This protects future erosion of overtime protections so that they do not become less effective over time.

The rule’s effective date is July 1, 2024. Learn more about the department’s efforts to restore and extend overtime protections

The decision has its detractors. Critics argue the new regulation could saddle companies with new costs and add to persistent labor challenges. In a statement, U.S. Rep. Virginia Foxx, a North Carolina Republican and chair of the House Education and the Workforce Committee, said that employers “are staring down the barrel of billions in annual costs to comply with the rule” while calling the regulation “excessive and heavy-handed.”

Meanwhile, an Associated Press report said that advocates are applauding the administration’s rule — with some noting that such a move is overdue. The Economic Policy Institute, according to the AP report, says that the overtime threshold has not been updated properly for almost 50 years — leaving millions without such federal protections.

“The rule is an important step toward correctly valuing one of the most precious resources workers have — their time,” EPI president Heidi Shierholz said Tuesday, according to the AP. “This rule is an essential milestone in creating a stronger, fairer economy.”

GM’s First Quarter Topped Profit Expectations

General Motors has reported a first-quarter net income of $3 billion on revenue of $43 billion.

The world’s largest automaker increased its guidance for the year of adjusted earnings to be in a range of $12.5 billion to $14.5 billion, up from $12 billion to $14 billion, company said in releasing the figures. GM expects a net income for the year in the $10.1 billion to $11.5 billion range. That would place it above its previous guidance of $9.8 billion to $11.2 billion.

GM’s first-quarter 2024 net income increased from last year’s $2.4 billion. GM’s adjusted earnings per share of $2.62 was above the average Wall Street estimate of $2.14. GM’s revenue also beat the average estimate of $41.88 billion.

Overall, GM saw a 1.5% decline in overall sales year-over-year in the first quarter, with fleet deliveries slipped 23%, the Detroit News reported. GM’s U.S. dealers sold 594,233 new vehicles in the first quarter, compared with 603,208 a year ago. The automaker said its retail sales, or sales to individual customers, increased 6%. “Our consumer has been remarkably resilient in this period of higher interest rates,” CFO Paul Jacobson said on a conference call, according to The News. “And we’ve seen that in all of our transaction prices and our strong go-to-market strategies. It’s been a strategy that’s worked for us and we think in this environment that we can continue to perform.”

Operation Breast Density launches funding campaign to cover cost of life-saving cancer screenings

Dr. Shoshana Hallowell

A Michigan nonprofit aimed at breast cancer awareness has launched a GoFundMe campaign that will help women with dense breasts afford the extra level of screening needed to properly check for a potential cancer diagnosis.

Operation Breast Density — which helps educate and raise awareness related to a particular problem in mammogram reporting — seeks to provide 100 women at high risk for breast cancer with free Whole Breast Ultrasounds and/or Rapid/Fast MRI screenings. The goal is raising $50,000 by June 30 to start the screenings.

The standard cost for a Whole Breast Ultrasound averages around $300 and a Rapid Breast MRI is approximately $500. Insurance often doesn’t cover this additional level of breast cancer screening.

Dr. Shoshana Hallowell, founder of Operation Breast Density, is a breast cancer survivor who promotes accurate screening and risk assessment for women with dense breast tissue. She says regular mammograms can miss a cancer diagnosis up to 50 percent of the time for women with dense breast tissue, who should receive additional imaging for a complete diagnosis.

Research shows that 45 percent of all women have dense breast tissue and 95 percent of women are unaware if they have dense breast tissue or not.

“It is so important that women understand the risks associated with dense breasts and work with their doctors to make sure they are being screened properly,” Hallowell says. “The cost of necessary imaging should never be a barrier to an accurate cancer assessment. This GoFundMe campaign can help save lives by catching cancer at an earlier and treatable stage.”

To donate to the Self Defense For Women With Dense Breasts campaign, visit www.gofundme.com and type Shoshana Hallowell in the search bar. For more information about Operation Breast Density, see www.operationbreastdensity.org.

Madison Heights Company Opens Applications For 2024 Business Scholarship

Shelving Inc., a second-generation family-owned provider of innovative storage solutions for industrial, commercial, and residential spaces, is excited to announce the launch of its highly anticipated tenth annual Shelving.com Business Scholarship contest on Monday, April 22.

This coveted scholarship opportunity is open to hard working Michigan residents who are actively pursuing a major in a business-related field of study. Showcasing its commitment to supporting education, Shelving Inc. is proud to offer the largest prize amounts yet, with a $4,000 first place scholarship, $2,500 second place scholarship, and $1,500 for the second runner-up. President of Shelving Inc., Michael Schodowski, made the official announcement.

“As a family-owned business in Michigan, we feel honored to be able to support the students of our community in their academic journey,” said Schodowski. “Given the rising costs of living, we made the decision to increase this year’s prize amounts to allow for further impact. Throughout the ten years of running this scholarship, we have been consistently amazed by the unwavering determination and dedication shown by students who harness their degrees to create a tangible positive impact within their area.”

The scholarship program welcomes applications from Michigan residents who are currently enrolled in an accredited university or college, as well as high school seniors who have already enrolled or intend to enroll in college no later than the Fall 2024 semester. Eligible candidates should be pursuing a major in business or a related field of study, maintaining a minimum cumulative GPA of 2.8. To apply, applicants must submit a copy of their transcript, resume, and an essay that showcases their passion and commitment.

The application period for the scholarship closes on July 4, 2024. The winners of the scholarship will be officially announced on July 22, 2024. To apply, visit Shelving.com.

Lawyers for Civil Justice Add Hanchett to 2024 Class of Fellows

Michael D. Hanchett

Plunkett Cooney attorney Michael D. Hanchett was recently selected by the Lawyers for Civil Justice (LCJ) as a member of the organization’s Fellows Class of 2024.

The LCJ executive committee unanimously voted to include Hanchett in the three-year program based on his extensive experience and expertise in governmental law and employment liability.

Since 1987, LCJ has promoted excellence and fairness in the civil justice system by working to meet the needs of its corporate and defense counsel members and confronting the challenges of business litigation. The LCJ Fellows program works to identify potential future leaders and rising defense bar talent with emphasis on those who offer a unique and fresh perspective to civil justice and civil litigation rules advocacy. During the Fellowship, Hanchett will engage in policy and rule reform alongside some of the leading defense and corporate counsel in the country.

Hanchett, who works in Plunkett Cooney’s Bloomfield Hills office, is a member of the firm’s Governmental Law and Labor & Employment Law practice groups. He defends public-sector clients in a variety of litigation with particular expertise in police liability, including searches and seizures, use of force and corrections law. His practice also includes the defense of employment law disputes involving such issues as alleged discrimination, retaliation and civil rights claims brought under state and federal statutes. Hanchett also serves as a Special Assistant Attorney General for the state of Michigan.

Hanchett is a member of the Federal Bar Association for the Eastern District of Michigan, where he co-chairs the civil rights section and serves on the newsletter committee. He is also a member of the DRI’s Construction Law, Insurance Law and Young Lawyers committees. Hanchett is also active in the Oakland County and American bar associations, as well as the State Bar of Michigan’s Government Law and Labor and Employment sections.

FTC Announces Rule Banning Noncompetes

The Federal Trade Commission issued a final rule Tuesday it says will promote competition by banning noncompetes nationwide and allowing workers to change jobs, including positions with competitors.

FTC officials believe banning noncompetes will increase innovation and foster new business formation.

“Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once noncompetes are banned,” said FTC Chair Lina M. Khan. “The FTC’s final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market.”

The FTC estimates that the final rule banning noncompetes will lead to new business formation growing by 2.7% per year, resulting in more than 8,500 additional new businesses created each year. The final rule is expected to result in higher earnings for workers, with estimated earnings increasing for the average worker by an additional $524 per year, and it is expected to lower health care costs by up to $194 billion over the next decade.

In addition, the final rule is expected to help drive innovation, leading to an estimated average increase of 17,000 to 29,000 more patents each year for the next 10 years under the final rule.

In a press release announcing the decision, FTC officials said noncompetes are a “widespread and often exploitative practice imposing contractual conditions that prevent workers from taking a new job or starting a new business.” Noncompetes, they said, often force workers to either stay in a job they want to leave or bear other significant harms and costs, such as being forced to switch to a lower-paying field, being forced to relocate, being forced to leave the workforce altogether, or being forced to defend against expensive litigation. An estimated 30 million workers—nearly one in five Americans—are subject to a noncompete.

Under the FTC’s new rule, existing noncompetes for the vast majority of workers will no longer be enforceable after the rule’s effective date. Existing noncompetes for senior executives – who represent less than 0.75% of workers – can remain in force under the FTC’s final rule, but employers are banned from entering into or attempting to enforce any new noncompetes, even if they involve senior executives. Employers will be required to provide notice to workers other than senior executives who are bound by an existing noncompete that they will not be enforcing any noncompetes against them.

In January 2023, the FTC issued a proposed rule which was subject to a 90-day public comment period. The FTC received more than 26,000 comments on the proposed rule, with over 25,000 comments in support of the FTC’s proposed ban on noncompetes. The comments informed the FTC’s final rulemaking process, with the FTC carefully reviewing each comment and making changes to the proposed rule in response to the public’s feedback.

In the final rule, the Commission has determined that it is an unfair method of competition, and therefore a violation of Section 5 of the FTC Act, for employers to enter into noncompetes with workers and to enforce certain noncompetes.

The Commission found that noncompetes tend to negatively affect competitive conditions in labor markets by inhibiting efficient matching between workers and employers. The Commission also found that noncompetes tend to negatively affect competitive conditions in product and service markets, inhibiting new business formation and innovation. There is also evidence that noncompetes lead to increased market concentration and higher prices for consumers.

Alternatives to nocompetes
The Commission found that employers have several alternatives to noncompetes that still enable firms to protect their investments without having to enforce a noncompete.

Trade secret laws and non-disclosure agreements (NDAs) both provide employers with well-established means to protect proprietary and other sensitive information. Researchers estimate that over 95% of workers with a noncompete already have an NDA.

The Commission also finds that instead of using noncompetes to lock in workers, employers that wish to retain employees can compete on the merits for the worker’s labor services by improving wages and working conditions.

Under the final rule, existing noncompetes for senior executives can remain in force. Employers, however, are prohibited from entering into or enforcing new noncompetes with senior executives. The final rule defines senior executives as workers earning more than $151,164 annually and who are in policy-making positions.

Additionally, the Commission has eliminated a provision in the proposed rule that would have required employers to legally modify existing noncompetes by formally rescinding them. That change will help to streamline compliance.

Instead, under the final rule, employers will simply have to provide notice to workers bound to an existing noncompete that the noncompete agreement will not be enforced against them in the future. To aid employers’ compliance with this requirement, the Commission has included model language in the final rule that employers can use to communicate to workers. 

The Commission vote to approve the issuance of the final rule was 3-2 with Commissioners Melissa Holyoak and Andrew N. Ferguson voting no. Commissioners’ written statements will follow at a later date. 

The final rule will become effective 120 days after publication in the Federal Register.

Once the rule is effective, market participants can report information about a suspected violation of the rule to the Bureau of Competition by emailing [email protected]

The Federal Trade Commission develops policy initiatives on issues that affect competition, consumers, and the U.S. economy. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.

The rule is sure to be challenged in court. In fact, according to the Associated Press, the U.S. Chamber of Commerce has already said it will sue to block the measure, a process that could prevent the rule from taking effect for months or years.

The FTC is banning noncompetes on the grounds that they constitute an “unfair method of competition,” but chamber officials told the AP the law doesn’t authorize the agency to regulate on those grounds.

“If they were to start exercising that authority, you’re really opening a Pandora’s box,” Neil Bradley, executive vice president at the Chamber, told the AP. “There’s literally no limitations on what people one day can decide is an unfair method of competition.”

Beyond Basics and Nexus Sports Entertainment Network to Host Exclusive 2024 NFL Draft Party at Historic Detroit Club

Beyond Basics, in collaboration with Nexus Sports Entertainment Network, is thrilled to announce the highly anticipated 2024 NFL Draft Party at the historic, Detroit Club. Set to take place on Wednesday, April 24, from 6:00 PM to 10:00 PM, this exclusive event promises an evening of celebration, networking, and philanthropy.

Guests are invited to indulge in a luxurious experience, featuring complimentary libations, hors d’oeuvres, premium cigars, and tequila tastings. This unique gathering provides an exceptional opportunity to celebrate the NFL Draft while fostering connections with fellow Nexus Members, NFL personnel, and players.

Pamela Good, co-founder and CEO of Beyond Basics, expressed her enthusiasm for the event, stating, “We are delighted to partner with Nexus Sports & Entertainment Network for the 2024 NFL Draft Party. This event not only celebrates the excitement of the draft but also highlights the importance of community and philanthropy. By coming together in support of literacy initiatives, we can make a lasting impact on the lives of individuals in our community.”

Beyond Basics is dedicated to addressing literacy challenges in underserved communities, providing one-on-one tutoring, literacy enrichment programs, and access to resources. Through partnerships and events like the 2024 NFL Draft Party, Beyond Basics continues to empower individuals to unlock their full potential and thrive.

Media coverage of the event is welcome, with opportunities available for interviews and coverage. For media inquiries and RSVPs, please contact Rebecca Gallagher at [email protected] or 313-549-5804

Case Study: A Rapid Response to a Debilitating Workforce Shortage

Staffing is a key component to successful business operations. Strong and reliable staffing allows corporations to deliver timely and quality product. When a Chicago-based tier one auto supplier faced an extensive workforce shortage, it threatened its ability to fulfill crucial project requirements. To overcome the threat, the supplier focused on staffing strategy.

Challenge
A key player in Chicago’s industrial sector, the auto supplier was suddenly confronted with a significant labor deficit, prohibiting it from moving units to an offsite location. This unexpected workforce shortage threatened project timelines and associated deliverables, demanding urgent intervention to avert potential disruptions to operations and customer commitments.

Solution
To resolve the staffing issue and ultimately fulfill the requirements, the auto supplier utilized DQS Solutions & Staffing (DQS) to recruit the required staff members. Recognizing the urgency of the situation, DQS swiftly created a comprehensive solution to address the critical labor shortage. Leveraging its extensive network and operational capabilities, the staffing agency successfully recruited 112 skilled personnel from Detroit.

With just three days’ notice, DQS transported the workforce from Detroit to Chicago. Furthermore, DQS leveraged their own transportation to move the workforce more efficiently. This streamlined travel logistics, minimized downtime, and maximized productivity. Moreover, DQS secured housing in Chicago for the Detroit-based employees.

Outcome
DQS’s swift execution yielded remarkable results. In just 48 hours DQS successfully hired the more than 100 staff members required to supplement the client’s workforce, demonstrating agility and resourcefulness. The seamless integration of skilled personnel into the existing workforce underscored DQS’s capacity to deliver timely staffing solutions tailored to client needs.

SkillTree Strategic Consulting Uses Gaming Concept to Help Businesses

Darryl Odom (left), Jason Matthews and Leslie Mahlmeister are the co-founders of SkillTree Strategic Consulting, a metro Detroit-based business consulting firm. Photo by Andrew Lark.

Anyone familiar with the Skill Tree gaming concept knows the skill tree is a graphic representation of a character’s development in the game. The tree allows each character to unlock new abilities, strengthen abilities they already have and decide which to develop based on the character’s needs.

The founders of a brand new consulting business are using that concept to help businesses learn the same lessons.

Metro-Deroit based SkillTree Strategic Consulting, launched in early April by co-founders Darryl Odom, Leslie Mahlmeister and Jason Matthews, was conceived to provide strategic and operational support and consultation to small- and medium-sized businesses and non-profit organizations.

The firm’s mission: Help evolve these organizations into their next stage by helping clients “adopt and promote a culture of strategic decision making via the conscientious and customized application of methodologies” that promote the long-term health and sustained growth of their organizations, according to its mission statement.

“We want to support small businesses and small nonprofits with all of the activities that go on in a business that aren’t really related to their specific mission,” said Mahlmeister, who has a master’s degree in business administration and an undergraduate degree in marketing, both from Wayne State University. “We want to provide all of those supports they need in order to be more efficient.”

For instance, according to Odom, many small-business leaders are focused on the day-to-day operation of the business that they don’t necessarily learn the intricacies of compliance or IT and disaster management.

He said that fewer than 3% of entrepreneurships are led by people with business degrees, which he points out leaves a “skills gap” in those kinds of areas.

“People … are starting a business, they don’t necessarily have time to redirect their career path to getting a degree,” Odom said. “They might not stop to do a business plan for disaster recovery. They might not stop to do a policy plan for new hires. They have a business to run, a family to feed.”

That’s where SkillTree comes in.

“We see a gap we can fill,” Odom said. “We can bring our experience and business acumen and provide that direct support so they can focus on their mission.”

That’s where the skill tree comes into play. It’s a holistic view of an organization’s structure and growth paths, a customized tool to help optimize resource allocation, understand the company’s vision and make strategic decisions for future growth.

SkillTree uses the concept to put together a report designed to assess the various aspects of the business operation.

“The tree is your business and you try to make it grow,” said Matthews, who has a degree in finance from Wayne State. “You have your different branches are leaves … one could be IT, another could be operations, one could be policies and procedures, one could be compliance. That’s why we use the idea of a Skill Tree, so you can see it visually bloom.”

The three co-founders established SkillTree after the company for which all three previously worked was bought out. The three, who have a long history together – Odom and Matthews have partnered on several businesses – decided after that purchase it was time to strike out on their own.

Odom said the trio is “looking to apply our skills” on a more ground level with organizations where they feel the impact and have a “more positive outlook about the work they do.”

“One of my passions is helping people,” Matthews said. “People have these missions, and they may not know what they don’t know. They may not know there’s a compliance issue or a disaster management issue, or with onboarding and offboarding.”

To find their way in this niche – “The market is flooded with consultants,” Odom said – SkillTree is working networks, getting help from friends and using word of mouth to make contacts.

“We’re going to get out there and pound the pavement,” Mahlmeister said.

The glut of business consultants made the decision to strike out on their own a little tougher to make, according to Odom.

Getting businesses to answer the question “Why choose us” is a task Odom said he finds “intimidating.”

“If you have your own business, if you want a consultant, you’re not going to have trouble finding one,” he said. “Standing out in such a huge crowd has been an ongoing conversation. That part to me is intimidating.”

To find its way, SkillTree will focus largely on small businesses. One example: a startup telehealth business that has no infrastructure around what they’re doing. While they know how to conduct the telehealth and how to bill for it, the startup may not be as aware of compliance issues or how to protect their information from a cybersecurity attack.

Another example, Mahlmeister said, would be a nonprofit that gets caught up in the world of grant applications. It’s easy for nonprofits to “lose their mission,” she pointed out. They get grant money  and now have to create a program that fits with the grant.

After the grant is gone, the nonprofit has to try to find a way to keep those people or wind up laying them off. Then they see another grant and go after that one.

“You’ve got all these disparate programs going on, and maybe they align with your mission but maybe they don’t,” Mahlmeister said. “One of the things I tell nonprofit leaders is you can’t just grab grants. You’ve got to be thinking about how those grants support your mission.”

Odom said part of the inspiration for striking out on his own came during the pandemic, when he watched people he knew start businesses at home. While a vast majority of those failed, he said, a “significant number did great.”

The problem? Now they’re back in the real world and have no idea how to grow. They run into supply chain limitations and have to figure out shipping and distribution issues.

To help businesses straighten out their issues, Matthews said, SkillTree is banking on being able to build relationships.

“I tell people that ‘people invest in you,’” he said. “They may like the (business) idea, but they’re betting on you. If they like you, they’re willing to give you a chance. I think we have good social credit, and I think that will be one of the things that differentiate us.”

Bank of America Opens Rochester Hills Financial Center

DETROIT — Bank of America opened a new financial center in Rochester Hills that is part of the company’s plans to open more than 52 new financial centers in 2024 across 28 markets.

The new financial center at 3035 S. Rochester Rd. showcases the latest technology, private offices to assist clients one-on-one, and on-site financial specialists who provide personalized guidance to help clients achieve their unique financial priorities and goals.

“The opening of our new financial center in Rochester Hills underscores Bank of America’s commitment to serving local communities,” said Matt Elliott, President, Bank of America Detroit. “By offering retail banking, lending and small business services alongside investment expertise from Merrill, we’re delivering comprehensive support to our clients. With a blend of high-tech capabilities and our high-touch personalized approach, the opening of this new financial center is helping our team forge connections and foster growth within our community.”  

Nationally, Bank of America financial centers host around 450,000 client visits per day – up nearly 4% year-over-year – illustrating the ongoing value the network provides. In metro Detroit, Bank of America has renovated 55 financial centers since 2016, with 37 renovation projects scheduled to be completed by 2026. Bank of America currently serves Detroit area clients at 61 financial centers with 179 ATMs. It will add 12 ATMs at financial centers and two remote ATMS by 2025.

Clients in metro Detroit also have access to Bank of America’s industry-leading digital capabilities which serve the banking, lending and investing needs of more than 57 million verified digital clients. The bank’s digital leadership has been recognized with more than 120 digital-related accolades in 2023.  

Stubborn Inflation Rate Could Push Rate Cuts to Later in the Year

The hope for interest-rate cuts from the Federal Reserve early this year appear to be fading.

Fed Chair Jerome Powell is indicating that an inflation rate that stays stubbornly high could push any rate cuts until later this year.

Powell, speaking during a panel discussion Tuesday, said recent data has dimmed the Fed’s confidence that inflation is being brought under control.

“Recent data have clearly not given us greater confidence” that inflation is coming fully under control and “instead indicate that it’s likely to take longer than expected to achieve that confidence,” Powell said during a panel discussion at the Wilson Center, according to the Associated Press.  “If higher inflation does persist, we can maintain the current level of (interest rates) for as long as needed.”

Back in March Powell told a Senate committee that the Fed was “not far” from gaining the confidence it needed to cut rates. At a news conference on March 20, Powell appeared to downplay that assertion. But his comments Tuesday went further in dimming the likelihood of any rate cuts in the coming months, according to the AP report.

Data released by the government has shown inflation remains above the Fed’s 2% target and that the economy is still growing robustly. Year-over-year inflation rose to 3.5% in March, from 3.2% in February. And a closely watched gauge of “core” prices, which exclude volatile food and energy, rose sharply for a third straight month, according to the AP report.

U.S. Pledges $6.6 Billion for Taiwan Chip Manufacturer

The Biden administration has indicated on several occasions that bringing semiconductor production to the U.S. is a priority.

On Monday, the administration put its money where it’s push is.

The Biden administration pledged up to $6.6 billion so that a Taiwanese semiconductor giant can expand the facilities it is already building in Arizona, according to a report in the Associated Press. The move better ensures that the most-advanced microchips are produced domestically for the first time, the administration said.

Commerce Secretary Gina Raimondo said the funding — for Taiwan Semiconductor Manufacturing Co. — means the company can expand on its existing plans for two facilities in Phoenix and add a third, newly announced production hub.

“These are the chips that underpin all artificial intelligence, and they are the chips that are the necessary components for the technologies that we need to underpin our economy,” Raimondo said on a call with reporters, adding that they were vital to the “21st century military and national security apparatus,” according to the AP report.

The funding is tied to the CHIPS Act, passed in 2022 to revive U.S. semiconductor manufacturing. The $280 billion package is aimed at sharpening the U.S. edge in military technology and manufacturing while minimizing the kinds of supply disruptions that occurred in 2021, after the start of the coronavirus pandemic, when a shortage of chips stalled factory assembly lines and fueled inflation.

The Biden administration has promised tens of billions of dollars to support construction of U.S. chip foundries and reduce reliance on Asian suppliers, which Washington sees as a security weakness.

“Semiconductors – those tiny chips smaller than the tip of your finger – power everything from smartphones to cars to satellites and weapons systems,” Biden said in a statement. “TSMC’s renewed commitment to the United States, and its investment in Arizona represent a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day.”

Taiwan Semiconductor Manufacturing produces nearly all of the leading-edge microchips in the world and plans to eventually do so in the U.S.

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