The newest private equity firm in Grand Rapids is looking to shake up the market. Looking to raise $50,000,000.00, Auxo Investment Partners is hoping to invest in 10 to 15 companies over the next 5 years. This may sound like a traditional PE firm model (raise money and then invest it) but Auxo looks to differentiate itself from the others.
Jeff Helminski and Jack Kolodny (both formally with Blackford Capital) along with Fred Tedori, will be the managing partners of Auxo. They look to add transparency between the firm and their investors as well as provide a different option for businesses trying to choose between a family office and a traditional PE firm.
Many Grand Rapids businesses are asking a lot of questions about the new overtime laws, but the number one question being asked is, “How do I deal with the changes to the overtime laws?”
The “new” rules are not actually new. The Fair Labor Standards Act (FLSA) has always required that employees be paid at least the Federal Minimum Wage and receive overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a work week.
The impact on many small businesses is the change to the section of the FLSA that is commonly referred to as the “white collar” exemption. Under the current rules, any employee receiving a salary over $23,660 a year could be considered exempt and employers do not have to pay overtime. After December 1, 2016, if an employee earns less than $47,476 a year, he or she is eligible for overtime. (It should also be noted that the employee must perform executive, administrative or professional duties in order to fully qualify for the “white collar” exemption.)
So with thousands of employees about to become eligible for overtime (and wages that most small businesses cannot afford), what are some of the ways that a small business can legally avoid paying overtime?