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  • California employers are facing a significant compliance challenge with the state’s recently enacted Senate Bill 553 (SB 553). Last year, California Governor Gavin Newsom signed SB 553 into law, which requires employers with at least 10 employees in California to develop and implement a Workplace Violence Prevention Plan (WVPP) by July 1, 2024.

    Employers will likely have to coordinate with multiple internal stakeholder groups, making it challenging to comply with the new law. California is the first state in the nation to pass such a sweeping WVPP law, setting the precedent that other states are expected to follow.

    Understanding The Mandate

    The law mandates that employers provide thorough training to all employees, covering a range of critical elements. The training must include instructing employees how to report concerns to their employer and to law enforcement. The training must also cover:

    • The statute’s definition of workplace violence.
    • The four types of workplace violence – criminal intent, customer/client, worker-on-worker, and personal relationship.
    • The employer’s plan.
    • The workplace violence hazards specific to the employees’ jobs.
    • How employees can protect themselves in the event of a workplace violence incident.
    • Employees may request to review or copy the employer’s records relating to the workplace violence prevention plan, including the violent incident log that the statue requires. The log must include a detailed description of each workplace violence incident and be maintained for five years.

    What This Means For Managers

    Managers will need guidance on the breadth of conduct covered by the law and the necessary reporting procedures. Managers must ensure that employees fully understand the meaning of workplace violence, including but not limited to the four workplace violence types:

    1. Criminal intent: This type of violence generally won’t have a legitimate relationship with the business or its employees.
    2. Customer/client: Involves a customer, client, patient, or visitor becoming violent towards an employee, often due to disputes over service, products, or perceived mistreatment.
    3. Worker-on-worker: Violence between coworkers, including bullying, frequently manifests as verbal and emotional abuse that is unfair, offensive, vindictive, and/or humiliating.
    4. Personal relationship: The perpetrator has a personal relationship with the employee outside of work, such as a domestic partner, and brings that violence into the workplace.

    Tracking Incidents

    Employers must also maintain detailed logs of all workplace violence incidents for at least five years, which employees can request to review. Employers should also consider whether workplace violence concerns can be incorporated into their existing reporting procedures for safety issues. Ensuring clear communication around this requirement will be key to encouraging reporting without deterring employees.

    Include Your Employees

    Employees should also have a role in the planning process because they are the ones who will bring the issues to HR. Every employee has a role in keeping the workplace safe and that should be the focus of the training.

    More Laws To Come

    Beyond the WVPP, California employers will need to prepare for other new employment laws taking effect in 2024, such as the increase in paid sick days and the new bereavement leave policy. Managers will likely require training on navigating these bills as well.

    Need Support Managing These Mandates?

    Navigating the complexities of workplace violence prevention and government mandates is a significant challenge for employers. GMS can provide expert guidance on ensuring compliance with these new laws and mandates. With GMS, you can remove the time spent worrying about missing legislative updates that may affect your business. Our team will help you create a combative strategy to ensure your operations continue running smoothly and safely. Contact GMS to learn more!

  • In a significant move to empower employees and safeguard their rights, New York City has unveiled a mandatory new workplace poster as part of its commitment to fostering a transparent and fair working environment. This initiative, rooted in the city’s “Workers’ Bill of Rights,” ensures that every employee is well-informed about their rights at work. Continue reading to learn what you need to know about this pivotal development.

    The new poster can be found by clicking here.

    Understanding The “Workers’ Bill Of Rights”

    The “Workers’ Bill of Rights” is a comprehensive effort by New York City to provide its workforce with a clear understanding of their entitlements and protections under state and federal law. Recognizing the diverse linguistic landscape of the city, the newly released poster by the New York Department of Consumer and Worker Protection (DCWP) captures the spirit of inclusivity and accessibility. The poster embodies the city’s commitment to reaching every worker by featuring “Know your rights at work” in 12 different languages.

    The Role Of QR Codes In Promoting Accessibility

    A standout feature of the poster is its large quick-response (QR) code, which serves as a digital gateway to a wealth of information. By scanning this QR code, workers are directed to a dedicated page on the DCWP website titled “Workers’ Bill of Rights.” This page not only outlines state and federal workplace laws but also provides links to relevant enforcement agencies, ensuring that employees have on-the-go access to essential resources and support mechanisms.

    Implementation Timeline And Employer Responsibilities

    Beginning July 1st, 2024, employers across New York City are required to distribute this multilingual poster to all existing employees and new hires. The mandate extends beyond just distribution; employers are obligated to prominently display the poster within the workplace and through any online platforms commonly used to engage with their employees. This dual approach of physical and digital posting is aimed at maximizing visibility and ensuring the message reaches every corner of the workforce.

    Compliance And Penalties

    The city has taken a firm stance on compliance, signaling that adherence to these new requirements is not optional. Following an initial violation, employers may face civil penalties, underscoring the seriousness with which New York City views the protection of workers’ rights. This move is indicative of a broader trend towards increased accountability and transparency in the employer-employee relationship, with the city leading the charge in setting new standards for workplace fairness.

    Where GMS Comes Into Play

    In the dynamic and evolving landscape of New York City’s business environment, a professional employer organization (PEO) like GMS stands out as a valuable partner for businesses looking to navigate the complexities of compliance, HR, and employee management. GMS’ expertise and resources allow business owners in New York City to offload the burden of administrative tasks, access comprehensive HR support, and ensure adherence to the latest regulations, including the implementation of initiatives such as the “Worker’s Bill of Rights” poster. With the guidance of GMS, businesses can focus on their core objective while fostering a workplace culture that prioritizes employee well-being and compliance, ultimately contributing to their long-term sustainability and success in New York City. Contact our experts today to learn more.

  • The U.S Equal Employment Opportunity Commission (EEOC) issued final regulations for implementing the Pregnant Workers Fairness Act (PWFA). PWFA went into effect on June 27, 2023, and requires employers with 15 or more employees to provide reasonable accommodations for known limitations related to pregnancy, childbirth, or related medical conditions, unless the accommodation would cause the employer undue hardship.

    The PWFA only applies to accommodations such as temporary suspension of an essential job function if the employee can resume the essential function in the future. Other laws that the EEOC enforces make it illegal to fire or discriminate against employees or applicants on the basis of pregnancy, childbirth, or related medical conditions.

    Qualified Employees

    The EEOC’s regulations aim to clarify the definition and limitations of the PWFA. For example, the law only applies to qualified employees with limitations directly related to pregnancy, childbirth, or related medical conditions. Whether a condition qualifies will be determined based on the existing Title VII precedent.

    The regulations provide examples of possible reasonable accommodations under the PWFA, such as:

    • The ability to sit or drink water
    • Closer parking
    • Flexible work hours
    • Appropriately sized uniforms and safety gear
    • Additional break time for bathroom use, eating, and resting
    • Leave to recover from childbirth
    • Reassignment from strenuous or unsafe activities 

    A recent federal court ruling in Texas found that Congress lacked the required quorum to implement the PWFA, meaning the EEOC cannot enforce the law against the state. The PWFA does not replace any existing federal, state, or local laws that provide greater protections for pregnant or nursing workers.

    Partner With A PEO

    As most small business owners spend their days wearing many hats trying to grow their business, they don’t often have the time to stay on top of every government regulation change. This is where GMS can make all the difference. GMS employs a team of HR experts who closely monitor legislative updates and can provide you with the guidance you need.

    If you are interested in learning more about how GMS can help keep your business stay compliant with the changing government regulations while also lowering your risk management and benefit costs, contact us today! Let us be your trusted partner in navigating the complexities of employment law so that you can spend your time growing your business.

  • In today’s fast-paced and increasingly demanding work environments, managing leave of absence requests is crucial for maintaining operational efficiency and employee well-being. However, balancing your business needs with your team’s health and satisfaction is often difficult.

    Leave of absence, separate from paid time off (PTO), allows employees to take extended time off to address personal matters. Leave of absence can be unpaid; however, employees will continue to receive their healthcare package and have guaranteed job security.

    A leave of absence, whether for health reasons, family care, or personal development, is not just a logistical issue—it’s a critical component of an employee’s relationship with their workplace. How you handle these requests can deeply influence employee morale, trust in management, and your company’s reputation as a caring employer. In addition, with rising awareness of the importance of mental health and work-life balance, businesses are under increasing scrutiny to adopt leave policies that support their employees’ well-being.

    Beyond these factors, as a business owner, you also have legal responsibilities regarding employee leave. Employees are protected by laws such as the Family Medical Leave Act (FMLA), and failure to address leave requests appropriately or retaliating against an employee who takes leave can result in lawsuits, penalties, and reputational damage that will be difficult to recover from. While a leave of absence can be stressful, we’ve gathered some resources to help you navigate them with your team while ensuring compliance.

    Creating A Leave Of Absence Policy

    One of the most significant concerns among employees is the fear that taking leave might hinder their job security or career progression. This fear can discourage employees from applying for leave, even when they genuinely need it, damaging morale, productivity, and more. By establishing a clear leave policy, communicating it effectively, and fostering an environment of open communication, you can empower your team to prioritize their health without fear of negative repercussions. Your leave policy should include:

    • Request and approval procedures: Detail the process for requesting leave, including advance notice requirements, the use of official forms, and whom employees should notify regarding their absence. In addition, describe how leave requests are evaluated and approved, including who can grant or deny leave and under what circumstances.
    • Eligibility criteria: Clearly define who is eligible for leave of absence, including full-time, part-time, and temporary employees, as well as any specific conditions or probationary periods.
    • Reintegration outline: Outline and communicate a reintegration plan with your team. Return-to-work programs help employees ease back into their job roles, potentially starting with part-time hours or adjusted duties.
    • Anti-discrimination policy: Explicitly prevent discrimination in performance evaluations due to leave. This can help reassure employees that their absence will not hinder their career progression.
    • Documentation requirements: Specify any documentation employees need to provide when requesting leave, such as medical certificates for sick leave or proof of eligibility for parental leave.
    • Employee responsibilities: Communicate employees’ duties during leave, such as staying in touch with supervisors, adhering to company policies, and providing updates on their status.
    • Consequences of policy violations: Explain the consequences of violating the leave policy, including disciplinary action, loss of benefits, or termination of employment.

    Preemptively establishing a leave of absence policy not only protects employees but also contributes to a more loyal and productive workforce. Though it takes time and effort to generate, being caught without a plan can lead to stress and internal confusion that will impact your bottom line.

    Managing Workloads During A Leave Of Absence

    It’s crucial to have strategies to ensure operational continuity during leave. In certain situations, detailed planning may not be feasible, such as an unforeseen injury to a loved one that requires an employee’s leave for caregiving. Conversely, in cases such as parental leave, there may be more lead time to organize workloads. Regardless, ensuring you have a detailed plan will help ensure your team remains productive. You can do this through:

    Cross-training employees

    Cross-training your team is a practical approach to mitigate the risk of being caught without adequate coverage. It requires your team to learn the roles and tasks that may not be part of their day-to-day. By ensuring that every team member possesses a broad range of skills and knowledge, critical tasks can still be completed regardless of when leave is taken. This proactive measure safeguards against disruptions and fosters a collaborative and supportive company culture.

    In addition, cross-training promotes skill development and empowers team members to take on new challenges and responsibilities. It encourages flexibility and adaptability within the workforce, ultimately enhancing your organization’s overall resilience and productivity.

    Contract or temporary hires

    Another way you can ensure your team continues to operate at peak efficiency is by leveraging contract workers or temporary hires. Bringing in additional support can prevent existing team members from becoming overburdened with extra responsibilities and potentially burning out – particularly for longer leaves such as parental leave, which can extend up to three months or more.

    Delegate and communicate

    Leave can be a stressful time for employees. To mitigate employee stress, your leadership team should make a detailed plan and delegate important tasks to the remaining staff. After delegating tasks, establish regular check-ins with the team. These check-ins can assess not only task progress but also accurately gauge team morale and identify signs of burnout or discontent.

    Pitfalls To Avoid

    When an employee takes leave for an extended period, it’s essential to ensure you have your paperwork in order. Details such as payroll should be worked out ahead of time if possible. Mishandling payroll during an employee’s absence can result in over or underpayment, which can be difficult to fix later. Take the time to review and adjust payroll calculations accordingly, factoring in any changes to hours worked, leave entitlements, and benefits.

    In addition, keeping accurate records of employee leave dates is crucial for managing schedules and ensuring adequate coverage. Without proper tracking systems, you risk scheduling conflicts, understaffing, or overstaffing, which can impact productivity and workflow.

    Lastly, don’t forget about your employees on leave. Neglecting to support and communicate with your staff during their leave can impact their morale and loyalty to your organization. Don’t overload them with messages; a card or a quick message can go a long way. Showing empathy and understanding and providing necessary support where possible can boost employee engagement upon return.

    GMS Services

    Managing leave is complicated; from workloads to legal obligations, it’s stressful for your whole team. Professional employer organizations (PEOs) like GMS offer a range of services that help simplify your HR tasks.

    One of the services GMS offers is employee training and recruitment. Our human resources experts work closely with you, offering expert guidance on recruitment and training strategies. We alleviate the administrative burdens associated with the entire employee life cycle, allowing you to maintain complete control over hiring decisions while we simplify the process. Contact us today, and let us help you navigate the complexities of being an employer.

  • For small business owners, sometimes the need for extra hands sneaks up unexpectedly. Whether it’s a sudden rush of customers, a seasonal demand, or a taxing project, the need for additional labor can be undeniable at times. Despite the necessity for extra help, it’s not always the right time or best financial decision to hire and onboard a new long-term employee.

    As your business faces the demand for more support, it’s essential to assess the situation carefully and explore alternative options such as leased employees. Hiring leased employees is a flexible and cost-effective way to address short-term staffing needs without committing to permanent hires.

    What Is A Leased Employee?

    A leased employee is contracted to work for a business through a staffing agency. While a leased employee performs tasks and duties for their assigned business, a staffing agency assumes responsibility for their salaries and associated HR administration. Leased employees offer flexibility and access to specialized skills without needing to go through the full hiring process. By improving efficiency and adaptability, employee leasing allows small businesses to remain competitive and keep up with industry demands.

    The Advantages Of Leased Employees For Small Businesses

    Leased employees offer numerous benefits for small businesses, serving as a strategic solution to address various operational challenges. When you opt for leasing employees, you have the ability to:

    Adapt to staffing fluctuations

    Leasing arrangements can vary from temporary to long-term based on your business’s needs. Temporary leased employees can resolve immediate staffing needs, addressing heightened demands during peak seasons, special projects, or sudden increases in workload. For businesses requiring a more permanent solution while still retaining flexibility, long-term leased employees are a favorable option. They can provide the skills needed or fill ongoing positions without the administrative burden of traditional hiring.

    Tap into expert skills without long-term contracts

    Employee leasing allows you to tap into a diverse talent pool with a wide range of skills and knowledge, all without the need to hire a full-time employee. This flexibility allows you to find a qualified leased employee that suits your exact project or need. Whether you’re in search of a temporary sales representative or a more long-term IT analyst, the flexibility of leased employment empowers you to acquire the exact skills you need precisely when you need them.

    Save on hiring costs

    Leasing employees is a cost-effective alternative to hiring full-time employees. With leased employees, you can save time and money on the recruitment process since this is handled by a staffing agency. You can also avoid the additional financial obligation of providing benefits like health care, retirement plans, and paid time off (PTO) because leased employees are not full-time employees. Additionally, you don’t need to worry about the associated financial burdens such as layoffs or severance packages.

    Lighten your HR load

    Since leased employees are managed by a staffing agency, you have fewer HR responsibilities on your plate. An agency takes care of HR tasks associated with leased employees, including processing salaries, administering benefits, and more. By entrusting experts to take care of staffing and HR duties, you can free up your own team’s time and resources. Plus, staffing agencies know the best practices and solutions for hiring, ensuring small businesses maximize the benefits of employee leasing.

    Comparing Leasing Employee To Traditional Hiring

    While leasing employees can offer numerous benefits for small businesses, it’s essential to consider all options. Before deciding on whether you want to lease employees, reflect on the following benefits of traditional hiring:

    • Stronger company culture: A part-time or full-time employee will become fully immersed in the company’s mission and values, fostering more loyalty and commitment. This cohesion enhances morale and cultivates a sense of unity among all employees.
    • Efficient integration of new hires: Traditional hiring allows for a smoother onboarding process, helping new employees quickly acclimate to company processes and dynamics. Bringing on a permanent employee can lead to better overall collaboration and teamwork.
    • Reduced legal and compliance risks: With traditional hiring, businesses have greater control over employment classification and compliance with labor laws. This reduces the risk of violating employment regulations, helping your business stay legally compliant.

    Deciding What Is Right For Your Business

    Leasing employees can be an advantageous decision for some businesses, but it’s crucial to identify your goals and assess compatibility with your business model beforehand. To start, evaluate your staffing demands and consider how a leased employee would fit in with your current employees. Think about what tasks or projects they could tackle and how their expertise could complement your existing team’s skills.

    Furthermore, determine whether employee leasing fits your budget and aligns with your long-term business goals. Compare the costs and weigh the benefits of all staffing options including contracting, part-time, full-time, as well as leasing. Contemplate how this position functions short-term and how it could evolve over time. If you’re debating between leasing an employee or hiring a full-time employee, consider the possibility of offering a leased employee a more permanent role in the future.

    How To Control Risks And Maximize Benefits

    When you decide leasing an employee is suitable for your business, set yourself up for success by adhering to the following:

    1. Establish clear communication and expectations: Encourage open communication with your leased employee to build trust and collaboration. Ensure you’re both on the same page regarding responsibilities and expectations as well as project goals and timelines.
    2. Monitor performance and provide feedback: Track and assess how your leased employee is fulfilling their role. Regularly check in and supply constructive feedback to promote improvement and growth.
    3. Offer targeted training and ongoing support: Provide specialized training sessions to enhance the skills related to their role. Give continuous support as your leased employee learns and adapts to the expectations of their role.

    Optimize Hiring With GMS

    If you’re considering expanding your team, a PEO like GMS can help you determine the best staffing option. From recruiting top talent to smooth onboarding, we make the hiring process simple and efficient. GMS can support your staffing needs and handle numerous HR responsibilities related to new employee management. Contact us today to discuss how GMS can enhance your hiring process!

  • As a small business owner, it’s crucial to understand the distinction between Forms 1099 and W-2, as they have significant implications for tax and compliance purposes. Misclassifying employees can lead to costly penalties and legal issues, making it essential to navigate these forms correctly.

    Let’s Start With The Basics: Understanding Form 1099

    A Form 1099 is a crucial tool for reporting income paid to independent contractors, freelancers, or self-employed individuals for tax and compliance purposes. Tax payments should not be reported on the 1099 Form. The most common type is the 1099-MISC, which reports miscellaneous income such as fees, commissions, rent, prizes, and awards. The second type of 1099 is Form 1099-NEC (Non-Employee Compensation), which is specifically used to report non-employee compensation paid to independent contractors and other self-employed individuals.

    Who qualifies as a 1099 worker?

    A 1099 worker is often referred to as an independent contractor. Some types of workers who would receive a Form 1099 may include:

    • A consultant who is hired for a set amount of time to complete a project
    • A freelancer who works on a per-assignment basis and uses their own computer
    • An electrician contracted a few times a year to repair power outages in an office building.

    These workers have more control and flexibility over when, where, and how they perform their work. They are responsible for paying their own self-employment taxes.

    When to use a Form 1099

    You would issue a Form 1099 to individuals or other businesses that provided a service but are not employees of your business. Companies must issue a 1099-MISC to any individual or unincorporated business that is paid $600 or more during the tax year for services rendered.

    Understanding the Form W-2

    Form W-2, on the other hand, reports wages, salaries, and tips paid to employees. It shows the total income earned by an employee and the amount of taxes withheld from their paychecks throughout the year, including federal income tax, Social Security tax, and Medicare tax.

    How does someone qualify as a W-2 employee?

    A W-2 employee is an individual who is paid through their employer’s payroll and has their payroll taxes withheld throughout the year. Every year, by January 31st, they will receive their Form W-2 detailing their taxable compensation, tax withholding, and deductions for employer-sponsored benefits like health insurance or 401(k). They use this information to file their annual taxes.

    These employees typically have scheduled hours, ongoing work, and company-provided equipment and may receive employer benefits. Being a W-2 employee establishes an official working relationship with an employer who has the right to control when, where, and how the employee performs their job duties. Examples include office workers, warehouse supervisors, and administrative assistants with set responsibilities and hours.

    When to use a Form W-2

    Employers must provide Form W-2 to all employees who receive wages, salaries, or tips during the tax year, regardless of the amount earned. Generally, having W-2 employees means that individuals have been given ongoing work, use company equipment, have set hours, and have a direct manager.

    Now that we understand Forms 1099 and W-2, let’s discuss their differences and reporting requirements.

    • Purpose: Form W-2 reports an employee’s taxable compensation and tax withholding. A Form 1099 lists the gross payments made to independent contractors.
    • Employer status: Form 1099 is for independent contractors, while Form W-2 is for employees. The distinction lies in the employer’s level of control over the worker and the worker’s ability to control their own work.
    • Tax withholding: Employers are required to withhold income taxes, Social Security, and Medicare taxes from the wages of W-2 employees. Independent contractors receiving 1099 income are responsible for paying their own taxes, including self-employment tax.
    • Benefits eligibility: W-2 employees are typically eligible for employer-sponsored benefits such as health insurance, retirement plans, and paid time off. Independent contractors receiving 1099 income do not qualify for these benefits.
    • Reporting requirements: Employers must report the income paid to 1099 workers on Form 1099-MISC if the amount exceeds $600 in one year. W-2 wages must be reported regardless of the amount.
    • Deadlines: Form 1099 must be provided to recipients and filed with the IRS by January 31st of the following year. Form W-2 must be provided to employees by January 31st and filed with the Social Security Administration by January 31st (if filing electronically) or February 28th (if filing by paper).

    Misclassification Risks And Penalties

    Having different types of employees within your business can be challenging. Should you accidentally misclassify an employee as an independent contractor (a 1099 employee), your business could experience hefty penalties. The Internal Revenue Service (IRS) and state agencies closely monitor worker classification and penalties for misclassification, including back taxes, interest, and fines. Additionally, misclassified workers may be entitled to retroactive benefits, such as unemployment insurance, workers’ compensation, and overtime pay, which can result in significant financial liabilities for the employer.

    How GMS Can Help With Tax And Compliance

    GMS has a comprehensive payroll tax management solution that can assist businesses in ensuring compliance with tax regulations and the proper classification of employees and independent contractors. The following is how GMS can help:

    • Payroll integration: GMS integrates with our payroll systems (GMS Connect), ensuring accurate tax withholding and reporting for W-2 employees.
    • Contractor management: GMS can help track and manage independent contractors, ensuring proper 1099 reporting and compliance with relevant laws and regulations.
    • Compliance monitoring: GMS can provide alerts and reminders for tax filing deadlines, helping businesses meet reporting requirements for 1099 and W-2 forms.
    • Audit support: In the event of an audit, GMS can provide comprehensive records and documentation to support worker classification and the accuracy of tax reporting.
    • Worker classification guidance: GMS can offer guidance and best practices for properly classifying workers as employees or independent contractors, minimizing the risk of misclassification.
    • Centralized record keeping: GMS provides a centralized platform for storing and managing all worker-related records, including contracts, timesheets, and payment records, ensuring easy access and organization during audits or legal proceedings.

    By leveraging the expertise GMS provides to small businesses, business owners can streamline their workforce management processes, maintain compliance with tax regulations, and ensure proper classification of employees and independent contractors, minimizing the risk of penalties and fines. Ready to streamline your payroll processes? Contact us today to talk to one of our experts about how we can help your business.

  • New York has always been at the forefront of progressive legislation, and this time, it has set a benchmark poised to change the landscape of working families’ lives. April 19, 2024, marked a historic moment for pregnant employees in New York state. Governor Kathy Hochul signed into law an unprecedented amendment to the New York Labor Law  § 196-b, establishing a standalone entitlement to paid prenatal leave, the first of its kind in the United States.

    Understanding The Paid Prenatal Leave Amendment

    Under this new law, expectant mothers can now use up to 20 hours of paid leave within a 52-week period to attend prenatal medical appointments and procedures. This initiative is part of New York’s final budget for fiscal 2025 and is a significant stride in supporting prenatal health and well-being.

    Key Features Of The Law

    • Immediate availability: The 20 hours of paid prenatal leave is immediately available upon employment, ensuring that pregnant employees don’t have to accrue this benefit over time.
    • Hourly increments: Leave can be taken in hourly increments, offering flexibility to pregnant employees.
    • Compensation: Employees will be compensated at their regular pay rate or the applicable minimum wage, whichever is greater, for the duration of the leave.
    • Additional leave: This paid prenatal leave is in addition to existing paid sick and family leave entitlements.

    The Impact On Employers And Employees

    Employers must update their leave policies to reflect this change by January 1, 2025. This law not only benefits employees but also encourages employers to cultivate a supportive workplace culture that values family and health.

    Employers should revise their leave policies to incorporate the new paid prenatal leave. In addition, it’s crucial for HR and benefits teams to be well-informed about the law and its implications. Pregnant employees now have a more robust safety net for their prenatal care without worrying about financial repercussions. This law emphasizes the importance of health and family, enabling expectant mothers to prioritize prenatal care.

    The Sunset Of COVID-19 Paid Sick Leave Law

    Coinciding with this development, the final budget also sets July 31, 2025, as the end date for the COVID-19 Paid Sick Leave Law that has been in effect since March 2020. The COVID-19 Paid Sick Leave Law provides employees who are subject to a COVID-19 mandatory, precautionary quarantine, or isolation order, with immediate paid or unpaid time off specific to the current crisis. Initially, Governor Hochul proposed that it end a year earlier, but the extension provides a transition period for employers and employees to adjust to post-pandemic norms.

    Looking Ahead: A Progressive Future For Work And Family

    New York’s paid prenatal leave law is not just a legislative win; it’s a societal advancement. It reflects a growing understanding that the health of future generations starts with the care we provide today. Employers and employees are stepping into a future where work-life balance is not just an ideal but a practical reality that supports family planning and prenatal health.

    On top of all the other hats you wear as a small business owner, it’s important to stay on top of ever-changing laws and regulations. Fortunately, GMS, a certified professional employer organization (CPEO), is here to help. GMS’ HR experts ensure that small business owners not only comply with the new paid prenatal leave mandate but also thrive under it. By managing human resources, employee benefits, regulatory compliance, and payroll, GMS provides the expertise and peace of mind that allows business owners to focus on their core operations. We offer a buffer against potential administrative pitfalls and inform businesses of evolving legislation. In essence, a partnership with GMS equips small businesses with the tools and support necessary to foster a supportive work environment that values the health of employees and their families, all while maintaining the business’s bottom line. With the assistance of GMS, small businesses in New York can seamlessly integrate this new law into their policies. Interested in learning more? Contact us today to learn more.

  • The digital landscape has become an integral part of our everyday lives, providing access to essential services and information. In a significant move towards inclusivity, the U.S. Department of Justice (DOJ) issued a final rule requiring state and local governments to ensure the accessibility of their websites and mobile applications. This rule, with its far-reaching implications, is set to transform the digital experience for millions of Americans with disabilities across the country.

    Understanding The Rule’s Application

    The final rule ensures state and local governments make their digital content accessible to those with disabilities. Attorney General Merrick Garland highlighted that this rule is a testament to the Justice Department’s commitment to upholding the Americans with Disabilities Act (ADA) by ensuring equal participation in society for people with disabilities.

    The significance of this rule extends to a wide array of public services, including emergency information, health care, education, transportation updates, and more. Non-compliance with these accessibility standards could hinder individuals with disabilities from accessing these essential services, highlighting the critical importance of this regulatory development.

    Technical Standards And Exceptions

    The rule adopts the Web Content Accessibility Guidelines (WCAG) Version 2.1, Level AA, as the technical standard for state and local governments’ web content and mobile applications. However, certain exceptions exist for specific types of content, such as archived web content, pre-existing electronic documents, and content posted by third parties under certain circumstances, ensuring a balanced approach to compliance.

    Significance And Impact

    The impact of this rule extends beyond mere regulatory compliance. Tony Coelho, an original sponsor of the ADA, emphasized the evolving nature of accessibility, particularly in the digital realm. He highlighted the importance of extending the ADA’s reach to the online sphere, ensuring equal participation for all individuals in an increasingly digital society. The rule’s significance is underscored by its potential to level the playing field and foster inclusivity in the digital space, aligning with the evolving needs of a society that’s increasingly reliant on digital activities.

    Distinct Employment Obligations

    It’s crucial to note that while state and local employees must be well-versed in these regulations, compliance with the rule does not guarantee Title I requirements of the ADA for state and local entities in their capacity as employers. This distinction emphasizes the multifaceted nature of ADA compliance and the unique obligations it entails in different contexts.

    Timeline For Compliance

    The effective dates of the rule are staggered based on the size of the covered entity. Localities with a population of over 50,000 have a two-year window to ensure compliance, while areas with smaller populations are granted a three-year timeline. This phased approach aims to facilitate a smooth transition towards digital accessibility, allowing entities to align with the regulatory requirements effectively.

    Presidential Endorsement

    In a post on X, President Joe Biden emphasized the far-reaching impact of the proposed web accessibility rule, highlighting its potential to improve online accessibility to state and local services for nearly 50 million individuals with disabilities. His endorsement reflects the administration’s commitment to fostering a more inclusive and accessible country through regulatory measures that address the evolving needs of its citizens.

    Partnering With A PEO: Your Strategic Advantage In Digital Accessibility Compliance

    As business owners grapple with the complexities of adhering to the DOJ’s new digital accessibility regulations, partnering with a professional employer organization (PEO) can be a strategic move. A PEO, like GMS, does more than offer support with HR tasks or payroll processing; we stand as a pillar of expertise in regulatory compliance, including the nuanced terrain of ADA standards.

    When you partner with GMS, you’re ensuring compliance and fostering an inclusive environment, demonstrating a commitment to all clients and employees. Ready to elevate your business in a world of digital advancement? Together, we can build a future where every individual has the keys to unlock the full potential of the digital world. Contact our HR experts today to get started!

  • The U.S. Department of Labor’s (DOL’s) has implemented a new overtime rule that will significantly increase the salary threshold for white-collar exemptions to overtime requirements in two phases, including the following:

    • Effective July 1, 2024, the Fair Labor Standards Act’s (FLSA’s) annual salary-level threshold for white-collar exemptions to overtime requirements will increase from $35,568 to $43,888. 
    • Effective January 1, 2025, the annual salary threshold will rise to $58,656 – nearly a 65% increase from the current level. 

    The Fair Labor Standards Act (FLSA) mandates overtime pay for the majority of employees, but it also provides exceptions for certain job categories. Those employees who qualify for overtime pay are labeled as “nonexempt,” while those who do not qualify are termed “exempt.” The most frequently seen exemptions from overtime, commonly known as the “white-collar exemptions,” encompass roles such as executive, administrative, professional, outside sales, and specific computer-related jobs.

    Who Is Affected

    To qualify for white-collar exemptions, employees must be paid a salary of at least the threshold amount and meet certain duties tests. If they are paid less than the threshold or do not meet the tests, they must be paid 1.5 times their regular hourly rate for hours worked in excess of a 40-hour work week. FSLA’s white-collar executive, administrative, and professional exemptions are not eligible for overtime pay.

    The new rule is expected to expand overtime protections to lower-paid salaried workers, which could provide meaningful financial relief for some employees. However, the changes may also burden small businesses, potentially forcing them to cut jobs or raise prices.

    Proceed With Caution

    Employers will need to carefully review their exempt employees’ salaries and decide whether to raise them to maintain the exemption or to reclassify them as non-exempt and pay overtime. This process should be approached cautiously, as the rule is likely to face legal challenges.

    Employers will need to:

    • Budget for increases in salary and overtime expenses. 
    • Plan for communication or reclassification decisions. This will include training reclassified employees on timekeeping requirements and rules against off-the-clock work. Employers must also manage concerns that employees might raise if they are upset about losing their salaried status. 
    • Considering the 2025 salary-level thresholds and the interim, employers must determine whether to accomplish this in two steps or jump straight to the 2025 threshold. 
    • Be mindful of state, local, and wage and hour laws that may impose additional requirements for exempt status beyond federal requirements under the FLSA. 

    How To Navigate This Rule

    GMS can help your company stay compliant with the DOL’s new overtime rule and manage the associated challenges. Our team of HR experts can assist with analyzing your workforce, determining the appropriate classification for each employee, and implementing any necessary salary adjustments or reclassifications.

    We can also provide guidance on navigating the legal uncertainties, training programs for managers and employees on the new requirements and ensuring your payroll and timekeeping systems are updated to comply. By partnering with GMS, you can confidently navigate these complex regulatory changes and avoid penalties or disruptions to your business. Contact us today!