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  • Running a small business gives you the freedom to set the rules, but that doesn’t mean you’re free from laws and regulations. From employment laws to safety standards, staying on the right side of compliance is crucial. These continuously evolving laws aim to ensure fairness, safety, and accountability in business operations. Failure to meet compliance can result in severe consequences such as fines, legal liabilities, and reputational damage.

    It can be difficult to keep track of every single law and avoid non-compliance fines on top of handling the other responsibilities necessary to run your business. Investing in human resource outsourcing through a professional employer organization (PEO) can save you time and money, allowing you to maintain focus on operating your business. By managing HR functions, a PEO can help your business stay in line with complicated laws and regulations.

    The following dives into how non-compliance can cost your business money and how a PEO can help manage these essential tasks.

    Non-compliance Risks And PEO Solutions

    Workplace safety

    Workplace safety is a crucial aspect of sustaining a healthy work environment, as these practices and procedures protect employees and prevent accidents. The Occupational Safety and Health Administration (OSHA) takes safety seriously and will issue significant fines if your workplace is not compliant. According to the OSHA Penalties list, serious violations can cost a business $16,131 per violation. It’s 10 times that amount for willful or repeated penalties.

    Partnering with a PEO for risk management services can provide resources and expertise to uphold safety standards and keep your business compliant. A PEO can complete regular risk inspections and catch hazards before an incident occurs, saving your company from potential fines. In addition to helping you steer clear of expensive OSHA fines, workplace inspections and guidance on compliance can make your work environment safer and minimize the risk of workplace incidents.

    Hiring

    Hiring employees can be a costly experience if you aren’t compliant with appropriate policies and practices. With several laws enforced by the Equal Employment Opportunity Commission (EEOC), companies must stay informed to avoid legal pitfalls. Missteps during the hiring process can lead to lawsuits from disgruntled applicants over improper job applications, discrimination, or other issues. These lawsuits are not only costly, but they can tarnish your business’s reputation.

    Acquiring HR services through a PEO can help you avoid these hiring mistakes and possible lawsuits. From cohesive hiring and onboarding to HR auditing, a PEO like GMS offers plentiful solutions to streamline your HR processes. With expertise in HR regulations, a PEO can ensure compliance and safeguard your business against legal liabilities.

    Health care

    Under the Affordable Care Act (ACA), businesses with 50 or more employees or full-time equivalents (FTEs) are required to offer health insurance coverage. Failure to offer coverage under current legislation could end up costing a business thousands of dollars each month, depending on the number of employees at your company and how or if you have offered employees coverage in the past. Since the specifics can get complicated, use this simple guide from The Henry J. Kaiser Family Foundation to see where you fall.

    One of the best ways to maintain compliance is by collaborating with a PEO to find a group health insurance plan that makes the most sense for your business and employees. A PEO can negotiate with insurance providers for competitive rates so you can receive premium care at a reduced cost. PEOs also handle administrative tasks associated with managing health insurance, including keeping up with health care compliance regulations.

    Payroll

    Managing payroll comes with a host of tax obligations for businesses. Mishandling payroll or filing inaccurately can result in hefty penalties due to non-compliance with tax regulations. In fact, if there’s negligence or disregard for rules or regulations, the accuracy-related penalty stands at 20% of the tax underpayment attributed to these actions. Failing to file on time can also be costly, with fees increasing for each month overdue. The Failure to File penalty is 5% of the unpaid taxes for each month that a tax return is late, capped at 25% of your unpaid taxes. These penalties highlight the importance of timely and accurate payroll management practices to ensure compliance and avoid financial setbacks.

    By optimizing payroll management, a PEO can efficiently handle responsibilities such as strategic planning, processing payroll, benefits administration, and more. A PEO like GMS not only offers payroll administration services but also provides payroll tax management. With a PEO, businesses can benefit from expert assistance navigating complex tax regulations, ensuring accurate tax filings, and avoiding expensive penalties.

    Stay Compliant Through Changing Regulations With GMS

    Some businesses need help remaining compliant with every existing rule and regulation. It gets even more complex when laws are created or updated. A PEO like GMS has a dedicated team of HR specialists who can help you stay up-to-date on the legislation and regulations, keeping your business compliant and avoiding penalties.

    With a PEO, you don’t have to spend hours trying to make sense of every little detail concerning laws and regulations that may affect your business. Our experts handle the complexities of compliance, so your business is safer and stronger in the long run. Contact us today to talk about how GMS can help your business!

  • In recent years, the United States has seen the introduction of federal and state clean slate laws and initiatives to address the challenges faced by individuals with criminal records. These laws, such as the Clean Slate Act of 2023 and the Fresh Start Act, can significantly impact millions of Americans by providing a pathway to clear federal records and supporting the implementation of state-level record clearance laws.

    While Pennsylvania was the first state to pass a clean slate law in 2018, there have been other states that have passed a clean slate law, including:

    • California
    • Colorado
    • Connecticut
    • Delaware
    • Michigan
    • Minnesota
    • New Jersey
    • New York
    • Oklahoma 
    • Utah
    • Virginia 

    The Need For Clean Slate Laws

    According to Jason Cooper, Vice President of Programs for The Clean Slate Initiative, approximately one in three people in the U.S. – about 70 million to 100 million individuals – have some form of record, with majority of these records being for arrests, acquittals, and nonviolent misdemeanors. The consequences of having a criminal record extend beyond the individual, as nearly half of U.S. children have at least one parent with a criminal record, leading to negative impacts on school performance and future employment opportunities.

    Understanding Clean Slate Laws

    While most states allow for the petitioning of expungement or sealing of certain types of criminal records, the process is often complex, expensive, and poorly understood by those who are eligible. As a result, only a fraction of eligible individuals obtain relief through this process. Clean slate laws offer a solution by automating the record-clearing process once individuals remain crime-free for a specified period of time, providing a more accessible and equitable path to clearing their records.

    An example of the practical application of clean slate laws is New York’s Clean Slate Act, which calls for the sealing of eligible misdemeanor convictions after three years and eligible felony convictions after eight years from the satisfaction of a sentence. However, certain serious felonies and convictions requiring registration as a sex offender are not eligible for sealing.

    Clean Slate Laws Vs. Ban-The-Box Laws

    It’s essential to distinguish clean slate laws from ban-the-box laws, which are aimed at preventing employers from asking about an individual’s criminal history during the hiring process. While the ban-the-box laws focus on the hiring process, clean slate laws primarily target the sealing of certain criminal records, effectively wiping the slate clean for individuals who have served their sentences and satisfied the waiting periods.

    Compliance Challenges

    Compliance challenges may arise with the implementation of clean slate laws, particularly for employers who operate in multiple states. The combination of state laws and the potential for candidates to disclose sealed records out of caution present complexities for employers. Navigating these challenges requires careful consideration of local requirements, especially in the context of remote work and multistate hiring activities.

    Navigating Compliance With Clean Slate Laws

    Clean slate laws have the potential to positively impact millions of Americans by providing a more accessible pathway to clear criminal records, thereby improving opportunities for individuals with past convictions. However, successfully implementing these laws will require a concerted effort to navigate compliance challenges and ensure equitable treatment of individuals with criminal records in the workforce.

    Have you ever considered partnering with a professional employer organization (PEO)? PEOs offer valuable expertise in compliance with evolving legislation, including clean slate laws, and therefore assist small business owners in ensuring fair and equal employment practices. At GMS, our HR experts proactively address the implications of clean slate laws and foster inclusive hiring practices. Contact our experts today!

  • Offering competitive benefits is a crucial strategy for employers in a competitive job market, as it helps them meet the needs of a diverse workforce. Employers strive to pinpoint adaptable and attractive benefits to a diverse employee base while considering the related expenses.

    Employees often prioritize benefits such as health insurance, paid time off (PTO), retirement plans, and flexible work schedules. These are not perks, but essential elements that cater to their unique needs and significantly enhance their quality of life. Recognizing this, many forward-thinking employers are now incorporating lifestyle spending accounts (LSAs) into their voluntary benefits plans. This innovative benefit allows employees to personalize their perks, further enriching their work-life balance and overall job satisfaction.

    What Is An LSA? 

    A lifestyle spending account (LSA) is a new benefit that has caught the attention of many employers. LSAs are employer-sponsored accounts that enable employers to reimburse employees for merchandise and activities that promote physical, financial, and emotional well-being. Unlike health savings accounts (HSAs), LSAs are not tied to tax advantages and are free from similar constraints, offering a more flexible approach to employee well-being. 

    Why Should My Business Utilize This Account? 

    LSAs offer employers the flexibility to select the benefits they wish to provide, ranging from gym memberships and nutritional services to sports and dance classes. They can also cover home office necessities, technology needs, eco-friendly activities, and family support or pet care expenses. Employers allocate an annual contribution of $850 per employee to these accounts, but the funds are only disbursed when the employee uses them.

    LSAs Unique Appeal

    The rising popularity of LSAs can be attributed to the flexibility they offer employees in choosing benefits that align with their personal values. Employers, too, are finding these accounts to be a compelling tool for retaining high-quality talent and fostering employee satisfaction. The unique appeal of LSAs lies in their ability to empower employees with the choice of benefits that hold the most value for them compared to their peers. This customization makes LSAs a desirable plan. Employers have found that while the voluntary benefits they currently offer are valuable to those who use them, their overall utilization is low, leading to questions about where best to allocate resources.

    Allocation Of Resources 

    A growing number of employers are reevaluating their benefits portfolio, trimming back on offerings that they see limited use to accommodate the introduction of LSAs. This shift allows employers to focus on benefits that genuinely resonate with their employees. For instance, if a benefit such as adoption assistance is only utilized by two percent of your workforce, it might be time to reconsider your investment. LSAs, with their broad appeal, are likely to cater to a wider demographic within your employee base.

    LSAs see an impressive uptake, with about 80 percent or more employees using them. Employees enjoy the personalization and adaptability offered by these plans. Given the diverse lifestyles, family situations, and preferences of your workforce, LSAs present a unique opportunity for everyone to benefit. Redirecting your benefits expenditure could be the strategic shift your company needs to keep its top performers on board.

    Partner For Sucess

    At GMS, our comprehensive benefits package provides employers and their employees with a wide selection of benefits options. Our team of benefits specialists is dedicated to delivering the most appealing benefits packages, encompassing everything from employee assistance programs (EAPs) to health and wellness programs. Your employees are your biggest asset – provide them with resources and coverage that make them their happiest. 

    By leveraging the assistance of a professional employer organization (PEO) and integrating in-demand benefits, small business owners can draw in and retain exceptional talent, cultivate a positive work environment, and propel their organizations toward growth and success. Contact us today to discover how we can assist you in managing employee benefits for your expanding business.

  • Lawmakers in Pennsylvania have filed legislation to legalize recreational marijuana. The recent filing of House Bill 2210 marks a significant shift in the state’s approach to cannabis regulation. House Bill 2210 aims to regulate the personal use and possession of cannabis for recreational purposes. Since the state legalized marijuana for medical purposes in 2016, this proposal would allow medical marijuana patients in the state to cultivate a limited number of cannabis plants at home for personal use, a practice currently prohibited.

    The bill outlines specific workplace requirements concerning the use of marijuana by employees and job applicants. It grants employers the authority to establish zero-tolerance, drug-free workplace policies, enabling them to take disciplinary action, including termination, against employees found to be impaired by marijuana while on duty.

    Grounds For Legalization

    The sponsors of the legislation emphasize the move toward legalization is rooted in “safety and social equity.” State Representative Amen Brown, a prime sponsor of the bill, highlighted the potential loss of tax revenue and job opportunities to neighboring states such as New Jersey and New York, which have already implemented adult-use cannabis laws. He stressed the economic implications of not embracing legalization, stating that failing to do so “risks permanently ceding hundreds of millions of dollars of new tax revenue as well as thousands of jobs” to other states.

    Implication For Business Owners

    For business owners in Pennsylvania, the potential legalization of recreational marijuana brings several implications and considerations:

    • Workplace policies: If the legislation is passed, businesses can uphold zero-tolerance, drug-free workplace policies regarding marijuana use. This means they can take action against employees found to be impaired by marijuana while on the job.
    • Adaptation to change: Business owners must adapt their human resource policies and employment practices to align with the new regulations. This may involve updating employee handbooks, revising drug testing protocols, and providing training to management and staff on the updated policies.
    • Economic opportunities: With the legalization of recreational marijuana, there may be potential economic opportunities for entrepreneurs and business owners to enter the cannabis industry. This could include the development of cannabis-related products or services, retail opportunities, or participation in the cultivation and distribution aspects of the industry.

    Next Steps For Business Owners

    The potential legalization of recreational marijuana in Pennsylvania opens a new environment for business owners. As a business owner, you’re juggling numerous roles at once. Now, try adding cannabis compliance to the mix. There’s simply not enough time in a given day to handle it all on your own.

    Fortunately, that’s where a professional employer organization (PEO) can assist business owners and relieve them of the extra burden. A PEO like GMS offers tailored solutions to navigate the evolving regulatory landscape, revamp workplace policies, and ensure compliance with the dynamic legal framework. How does this benefit business owners? A partnership with GMS allows business owners to focus on driving their core business operations while receiving guidance from our HR experts on the changing dynamics of cannabis regulation. So, if you’re ready to roll with the highs and lows of the cannabis industry, contact us today, and let’s blaze a trail to success together.

  • Offering appealing employee benefits is critical to attracting and retaining top talent. In fact, 77% of employees tend to stay longer with a company if they receive a comprehensive benefits package. With living expenses and inflation continuing to rise, employees’ needs and expectations regarding benefits are evolving.

    As a small business owner, it’s your responsibility to keep up with industry trends and provide an extensive benefits package to keep your skilled employees satisfied. Not only does this enhance workforce morale and loyalty, but it also establishes your business as an employer of choice in a competitive market.

    Traditional Employee Benefits

    Employers offer benefits as extra perks and advantages beyond base salaries and wages to demonstrate a commitment to employee welfare and financial security. Traditionally, employers provide health insurance, retirement plans, and paid time off (PTO). While these benefits are an essential foundation to a comprehensive package, these perks alone no longer meet the expectations of the modern workforce. To keep up with evolving standards, you must supply more desirable and innovative benefits that surpass basic needs.

    Factors Contributing To The Changing Landscape

    In today’s economic uncertainty, the value of an inclusive benefits package has increased, leading employers to rethink their strategies to obtain and keep talented workers. Various elements have caused this shift in attitude towards employee benefits. These factors include:

    • Millennials and Generation Z: The preferences of younger professionals are a significant factor influencing employee benefits trends. These generations prioritize flexibility, work-life balance, and opportunities for personal development.
    • Competitive job market: Businesses must set themselves apart from competitors by offering more than just attractive salaries. Benefits packages should address the diverse and aspirational needs of potential employees.
    • Impact of COVID-19: The pandemic has accelerated the change in trends, highlighting the importance of benefits such as remote work options, mental health support, and financial wellness programs.

    Current Trends In Employee Benefits

    As a small business owner, you must stay up to date on what trends are currently attracting employees. Although every business has differing priorities and strategies, consider adding the following to boost employee satisfaction and productivity:

    Flexibility in work arrangements

    Encouraged during the COVID-19 pandemic, the option to work remotely and choose flexible hours remains a desirable benefit. Offering employees the opportunity to work from home or anywhere with internet access can aid in cultivating a healthy work-life balance. In addition, adopting flexible hours allows employees to manage their work schedules based on their individual needs, adjusting hours for personal commitments and peak productivity times. By embracing these flexible work arrangements, small businesses can foster a more inclusive and accommodating workplace culture.

    Focus on health and wellness

    Many modern employee benefits include initiatives to support employee health and wellness. Businesses are increasingly offering resources and programs to support their employees’ emotional and mental well-being, reflecting the growing focus on mental health in recent years. Benefits can include support systems such as counseling services, hotlines, and educational materials to promote better stress management. Employee Assistance Programs (EAPs) are another way employees can receive counseling along with referrals to external resources. In addition, employers can encourage healthy lifestyles through wellness programs such as fitness challenges, health screenings, nutrition training, and more. Providing benefits that support health and wellness can create a positive and thriving work environment.

    Emphasis on financial well-being

    With 80% of employees experiencing some degree of financial stress, it’s imperative for businesses to offer benefits that help employees improve their financial well-being. Small business owners can empower employees to make informed financial decisions by supplying a range of financial literacy resources, including workshops, online courses, and planning tools. Contributing tuition reimbursement or assistance with student loans is another effective method while also supporting their education. Benefits that equip employees with the necessary tools and knowledge to navigate their finances can help them develop better economic stability.

    Diversity, equity, and inclusion initiatives

    Improving diversity, equity, and inclusion (DEI) is a main priority for many employers to raise awareness and cultural competence among employees. One key component of a successful DEI program is ensuring all your employees have access to benefits that suit their needs. These inclusive benefits packages include expanded health care coverage, flexible paid holidays, comprehensive parental leave policies, and more. Catering to various unique needs through extensive benefit options helps attract and retain diverse talent.

    Strategies To Stay Ahead

    To outpace competitors, employers must develop strategies to meet the evolving needs of their workforce. Regular employee surveys and feedback sessions are essential for obtaining valuable insights regarding employee preferences and areas for improvement. These findings empower you to tailor your benefits package to better meet your employees’ specific needs. Regularly researching industry trends and staying informed about emerging best practices will also help ensure your benefits offerings are relevant and attractive to potential and current employees.

    Overcoming Challenges When Implementing New Benefits

    Implementing new benefits policies and procedures can present its own set of challenges. Budget constraints can pose a significant hurdle as businesses may have limited financial resources to allocate towards new benefits initiatives. Ensuring compliance with ever-changing legal requirements regarding benefits adds another layer of complexity. Moreover, employees may resist change, feeling hesitant toward new benefits programs or initiatives.

    As a small business owner, you can overcome these challenges by developing creative solutions and keeping employees involved. To address budget constraints, consider reallocating resources from less critical areas, such as non-essential equipment upgrades or extra office supplies, and prioritize benefit initiatives based on their potential impact and cost-effectiveness. In addition, stay in line with regulations by remaining current on legal requirements and investing in compliance training for relevant staff.

    Openly communicating and engaging employees in the decision-making process can ease employee concerns about new benefit initiatives. Proactively handling these challenges can help ensure a successful rollout of updated benefits, contributing to the success of your business and your employees in the long run.

    Manage Your Employee Benefits With GMS

    A professional employer organization (PEO) like GMS can help you find a benefits package that meets the diverse needs of your workforce and serves your business’s best interest. From group health insurance coverage to supplemental plan options, we have various employee benefits for you to explore and choose from. Along with finding a plan that makes sense for your goals, we can also support you in managing and administering benefits so that you can concentrate on operating and growing your business. Contact us today to learn more about our comprehensive benefits solutions!

  • Navigating HR responsibilities is a complex task, and while there isn’t a perfect approach to managing them, several courses could land you in hot water. Employers often overlook their HR duties, setting up policies and procedures only to leave them for long periods without review.

    As a small business owner, you have a lot on your plate, and though you may not be intentionally neglecting your HR responsibilities, things slip through the cracks. Creating and implementing a plan for your company’s HR needs is the best way to ensure your business is protected and compliant.

    But what’s the right choice for your company – building an in-house team of HR experts or partnering with a professional employer organization (PEO) to tackle your HR needs? While only you can answer that question, we’ve compiled a short comparison of your options to help you make the best decision for you and your business.

    Cost Of A PEO VS. In-House HR

    It’s essential to understand the cost of each option to determine the best option for your business. While PEOs can offer access to various benefits, they may not be the best choice depending on your goals, business size, and current needs.

    Economies of scale vs. variable cost

    One of the most compelling financial arguments for partnering with a PEO is the benefit of economies of scale. The co-employment model allows PEOs to pool employees from multiple client companies, creating a larger collective workforce. This scale enables PEOs to negotiate better rates for health insurance, retirement plans, and other benefits compared to what a small or medium-sized business could achieve on their own. If you’re struggling to offer competitive benefits due to high costs, a PEO could be a game-changer, providing access to premium benefits packages that attract and retain top talent.

    Depending on your size and complexity, you may need to outsource certain services to third parties, such as legal counsel for compliance issues or specialized payroll services, if you opt for an in-house HR team. These variable costs can fluctuate significantly, making budgeting for HR more challenging.

    While larger companies may absorb these costs more easily, small to medium-sized enterprises (SMEs) must carefully consider these potential expenses, as they can significantly impact the cost-effectiveness of maintaining an in-house HR department.

    Fee structure vs. salaries and overhead

    PEOs typically charge businesses a percentage of the overall payroll or a per-employee per month (PEPM) fee. This structure allows PEO services to scale seamlessly with your business as it grows, with the key advantage being the bundling of services. However, for some companies, particularly smaller ones with minimal HR needs, the cost of partnering with a PEO might exceed the expense of maintaining a small, in-house HR team.

    Opting for an in-house HR department introduces different costs, primarily the salaries for your HR professionals, in addition to the overhead associated with supporting these functions internally. This includes the cost of HR software platforms, ongoing training and development for HR staff, and other resources necessary to maintain an effective HR department.

    Services Provided By PEOs Vs. In House HR

    PEOs offer comprehensive HR services, including managing payroll, administering benefits, handling workers’ compensation claims, and overseeing risk management. In other words, PEOs are a one-stop shop where the complexities of HR management can be outsourced to a team of specialists, allowing your company leaders to focus on core business strategies and growth. The breadth of services offered by PEOs can be particularly appealing if you want to streamline operations and reduce the administrative burden associated with HR tasks.

    In addition, partnering with a PEO can help ensure compliance with federal and local labor laws and implement best practices in HR management. As rules and regulations are subject to change, PEOs can give you peace of mind that your policies are up-to-date, and your business is safeguarded. PEOs offer the support needed to manage a workforce effectively, avoiding common pitfalls and legal risks, particularly for SMEs.

    Unlike the co-employment model used by PEOs, traditional HR management means that all employment tasks, responsibilities, and liabilities remain solely within your company. If you prioritize a unique company culture or have specific HR management needs, in-house HR provides the flexibility to implement customized solutions. This direct relationship between employer and employee can facilitate a closer connection and potentially more personalized management of your team’s concerns and needs. However, it also means that your business retains all legal responsibilities and risks associated with employment – so you’ll need to stay vigilant to protect your team and your business.

    Value Of PEOs Vs. Traditional HR

    Beyond the day-to-day management of HR tasks, PEOs bring a strategic edge to human resources planning. With access to extensive data analytics and industry insights, PEOs can guide businesses in making decisions that enhance HR functions. This strategic approach can lead to higher employee retention rates and increased job satisfaction, as initiatives are backed by solid data and tailored to meet your team’s and your company’s needs.

    Having an on-site HR team means employees can access HR support whenever needed. An in-house team is also deeply integrated into a company’s culture and daily operations. This proximity allows HR professionals to develop a nuanced understanding of your company’s ethos, values, and interpersonal dynamics, enabling them to tailor HR strategies and initiatives that align closely with your business goals.

    Ultimately, a thorough cost-benefit analysis should guide you in choosing between partnering with a PEO or hiring in-house HR professionals. Your decision should not only fit within your financial framework but also align with your long-term business objectives. In other words, consider the immediate costs and savings in addition to the broader impact this decision will have on your company’s operations, culture, and growth potential.

    How GMS Can Help

    GMS provides comprehensive HR solutions to small, medium, and large companies throughout the United States. As HR professionals, we take on the administrative burdens that companies don’t have the time or expertise to manage effectively, including:

    If you haven’t made up your mind and are still turning over that question of which option is the best one for you, GMS can help. Our primary goal is to help you navigate your options with clarity and confidence. Contact us today, and let us help you make the most informed decision possible.

  • The U.S. Citizenship and Immigration Services (USCIS) recently made a significant announcement that is crucial for small business owners to understand. The agency has temporarily increased the automatic extension period of expiring work permits for thousands of renewal applicants. Small business owners must be aware of the details and the potential impact on their business. Continue reading to learn more.

    Extending Work Permit Validity

    The temporary final rule published in the Federal Register on April 8, 2024, states the validity of employment authorization documents (EADs) will be extended from 180 days to 540 days from the EAD’s stated expiration date. U.S. employers must ensure all employees, regardless of citizenship or national origin, are authorized to work in the United States. Having an EAD is one way to prove that an individual is authorized to work in the U.S. for a specific period of time.

    This extension applies to eligible EAD renewal applicants who have properly filed renewal applications on or after October 27, 2023, as long as these applications remain pending on April 8, 2024, and the applicant’s current EAD or 180-day auto-extension period has not expired. In addition, eligible EAD renewal applicants who file their Form I-765 renewal application between April 8, 2024, and September 30, 2025, will also benefit from this extension.

    Impact On Work-Authorized Individuals And Employers

    This measure aims to prevent work-authorized individuals from experiencing a lapse in their employment authorization while waiting for USCIS to resolve pending EAD renewal applications. USCIS Director Ur Jaddou emphasized the importance of this temporary rule in ensuring continued work access for eligible individuals, acknowledging the impact of the record number of employment authorization applications on renewal mechanisms.

    Business Implications

    Small business owners should consider the potential impact of this announcement on their operations. The temporary extension will provide relief to work-authorized individuals, preventing disruptions in their employment due to processing delays. Furthermore, approximately 60,000 to 80,000 employers would have been negatively impacted if not for this extended validity period, highlighting the significant impact on businesses.

    Future Considerations

    The USCIS has also sought public comments on whether to permanently implement the maximum 540-day auto-extension or consider alternative solutions for eligible EAD renewal applicants. Small business owners should monitor these developments as they can have long-term implications for their workforce and operations.

    Biden Administration’s Prior Actions

    This is the second time the Biden administration has announced a 540-day EAD extension, reflecting the ongoing efforts to address processing delays and support work-authorized individuals. In addition, the USCIS’s shift to granting five-year EADs to eligible workers since September 2023 may mitigate future challenges related to expiring work authorization.

    Addressing Regulatory Changes With A PEO

    As small businesses adapt to the recent USCIS announcement regarding work permit extensions, the role of a professional employer organization (PEO) can step in to help. PEOs offer tailored solutions to navigate the intricacies of immigration compliance and workforce management. A partnership with GMS, a certified PEO (CPEO), allows businesses to confidently address the complexities of employment authorization, ensure adherence to regulatory changes, and optimize their operational efficiencies. With GMS’ support, businesses can proactively address the implications of the USCIS announcement, enabling them to focus on driving growth and innovation while entrusting immigration-related matters to seasoned professionals. Interested in learning more? Contact us today.

  • In February, the Los Angeles County Board of Supervisors passed an ordinance aimed at promoting fair employment practices and ensuring that criminal history is not an obstacle to securing employment. The ordinance added several compliance requirements to the California Fair Chance Act for employers considering the criminal history of applicants and employees in making employment decisions.

    The Fair Chance Ordinance (FCO) applies to employers with five or more employees in unincorporated areas of Los Angeles County and is set to take effect on March 28, 2024, and become operative on September 3, 2024.

    Let’s dive into a summary of the key requirements of the Fair Chance Ordinance and understand its implications for employers and job applicants.

    Background Checks

    The FCO places specific requirements on employers regarding the timing and conduct of background checks. The key points to note include the following:

    • Conditional offer requirement: Covered employers are prohibited from inquiring about criminal history before extending a conditional offer of employment unless legally required.
    • Written notice: If conducting a background check after a conditional offer, the employer must provide written notice outlining the reasons for the review and the types of information, background, or history that will be reviewed in addition to the applicants’ or employees’ criminal history.

    Employers are not allowed to ask applicants or employees to provide information regarding their criminal history before the employer’s receipt of the criminal background check report.

    Job Postings

    Under the FCO, employers must be transparent in their job postings. The following are critical requirements related to job postings:

    • Inclusive language: Employers must include language in all job postings stating that qualified applicants with arrest or conviction records will be considered for employment.
    • Legal restrictions: Job postings must specify any local, state, or federal laws that impose restrictions or prohibit hiring individuals with a specified criminal history.
    • Intention to review criminal history: Employers must specify their intention, if any, to conduct a review of an employee’s criminal history in connection with a conditional offer and include a list of all material job duties of the specific job position that may be affected by the criminal history.

    Employers are prohibited from including statements in job postings that exclude individuals with a criminal history from consideration for employment.

    Preliminary Notice And Adverse Action

    The FCO mandates a structured process if an employer intends to take adverse action based on an individual’s criminal history after the initial individualized assessment. The process includes:

    • Preliminary notice: If the employer intends to withdraw or rescind a conditional offer of employment or take any other adverse employment action, a preliminary notice must be provided to the applicant or employee, along with an explanation of their right to respond to the notice before the decision becomes final.
    • Consideration of response: The employer must consider all information and documents submitted by the applicant or employee before making a final decision or taking an adverse action.
    • A copy of the initial individualized assessment
    • Notice of the disqualifying convictions
    • A copy of the criminal background check report

    The employer must provide applicants or an employee five business days to respond to the preliminary notice of adverse action before making a final decision. In addition, the applicant or employee must be given at least 10 additional business days to either:

    • Respond to the preliminary notice if they dispute the accuracy of the background check and need time to obtain evidence for rehabilitation or mitigating circumstances
    • Present evidence of rehabilitation or mitigating circumstances orally at a meeting between the applicant or employee and the employer

    Following the applicant’s response and any submission of additional information or evidence, the employer must consider all the information and documents, whether written or oral, before making a final decision or taking an adverse action. Then, the employer must complete a second individualized assessment. If, after this second assessment, the employer makes the final decision to withdraw the conditional offer or take adverse employment action, the employer must notify the applicant or employee by regular mail and electronic mail. This notice should include the following:

    • Notice of the final decision to withdraw the conditional offer
    • A copy of the second individualized assessment
    • Notice of the disqualifying conviction
    • Information regarding existing procedures for the applicant to challenge the decision or request reconsideration
    • Notice of the applicant’s or employee’s right to file a complaint with the Los Angeles County Department of Consumer & Business Affairs

    It’s also important to note that the employer must provide the final notice of adverse action within 30 calendar days after the applicant or employee responds timely to the preliminary notice. Failure to do so may be presumed as an untimely delay and in violation of the section. To rebut this presumption, the employer must provide a written explanation justifying the delay.

    In addition, employers must maintain and preserve all records relating to the FCO for a minimum of four years after receiving an application. 

    Next Steps

    The FCO’s new requirements in Los Angeles County may make it worthwhile for business owners to consult an outside party such as a professional employer organization (PEO). A PEO like GMS can offer valuable expertise and resources to help business owners understand and adhere to the FCO, ensuring that their hiring practices align with the ordinance’s stipulations. With the support of GMS’ HR experts, business owners can confidently implement fair and inclusive hiring processes, mitigate compliance risks, and focus on fostering a diverse and talented workforce, contributing to a thriving business environment. Contact us today to learn more!

  • When it comes to creating a safe and productive workplace, ensuring the well-being of your employees is a top priority. Despite efforts to mitigate risks, workplace injuries still occur, resulting in harm to employees and inflicting significant financial burdens. The average settlement for a workers’ compensation claim is around $20,000, but this cost can vary based on the complexity of the injury. Shouldering a substantial portion of injury-related costs, employers bear the responsibility of providing workers’ compensation to employees injured on the job.

    Since most incidents are preventable, investing in enhanced occupational health can minimize the occurrence of workplace injuries and reduce associated costs. By implementing safety protocols and providing hazard identification and prevention training, you can control risks and establish a safer work environment.

    As a small business owner, you hold the power to prevent injuries in your workplace and cut down on worker’s compensation costs. Improving occupational health not only protects your employees from harm but also aids in securing your business’s financial stability.

    What Is Occupational Health?

    Occupational health focuses on keeping workers safe and healthy while on the job. It refers to the care for workers’ overall well-being, including their physical, mental, and social health, across all professions. This requires attention to a wide range of tasks related to health and safety, including detecting and addressing workplace hazards, as well as providing health education and training. Occupational health isn’t just about avoiding injuries at work; it’s also about supporting employees’ overall health and wellness. It’s crucial for you to take proactive safety measures and provide your workers with resources to care for their health.

    Understanding Workers’ Compensation

    Workers’ compensation aims to protect your employees and your business. Paid for by employers, workers’ compensation is a type of insurance that provides benefits for workers who are injured or become ill from their jobs. An employee must report their injury or illness to their employer and submit a claim to receive workers’ compensation benefits. These benefits typically cover medical expenses, replacement wages if employees can’t work due to injury, rehabilitation services, and compensation for permanent disabilities.

    Most states mandate employers provide workers’ compensation insurance; however, laws vary by state. Small businesses have the option to become self-insured or obtain workers’ compensation insurance through a third-party provider. If you live in a monopolistic state, you are required to purchase workers compensation insurance from a state fund. Although you can still choose to be self-insured, monopolistic states restrict employers from seeking third-party insurance options. As you consider your coverage options, you need to know your state’s specific requirements to support the well-being of your workers and assure compliance.

    How Occupational Health And Workers’ Compensation Are Related

    The relationship between occupational health and workers’ compensation is quite simple. While most incidents are preventable, overlooking occupational health can lead to more injuries on the job and an increase in employee claims. The frequency of claims filed directly impacts your cost for workers’ compensation.

    Properly paying attention to occupational health and workplace safety can prevent incidents and, therefore, lower your workers’ compensation rates in the long run. The following components you should consider to improve your business’s occupational health strategy:

    Early intervention and prevention

    When it comes to health and safety, it’s always best to be proactive. Catching hazards early on can prevent incidents from occurring, reducing the number of claims filed. By frequently conducting risk assessments, you can help mitigate workplace hazards and safeguard your workforce. In addition, it’s essential to track patterns in the injuries that occur to identify and address areas that need improvement. Remaining vigilant and noting trends prompts early intervention to prevent incidents before they happen.

    Injury and illness management

    If an incident occurs, it should be reported and documented immediately to ensure the injured or ill employee receives prompt care. Effective treatment and rehabilitation programs can help employees recover quicker and return to work sooner, resulting in lower workers’ compensation costs. When employees return to work, support them by providing accommodations, such as adjusting schedules or assigning lighter duties, as needed to encourage a smooth transition. Return-to-work programs can also assist in reintegration, backing employees as they recover and return to their roles at work.

    Long-term health and wellness

    To promote employee health, small business owners should consider how they can support comfort and wellness and their workplace. Disregarding the ergonomic element of workstations and equipment can negatively affect employees’ long-term health, potentially leading to more claims. You can treat this by ensuring employees are comfortable and aren’t experiencing excessive strain while doing their jobs. In addition, health and wellness programs, such as mental health support, biometric screenings, disease management, and more, can make a difference. These initiatives can encourage employees to prioritize their well-being and develop healthier lifestyles, minimizing the likelihood of injury or illness.

    The Benefits Of Integrating Occupational Health In Workers’ Compensation Management

    Making occupational health a part of your workers’ compensation management strategy benefits your workforce and your business. Investing in proper health and safety initiatives for your employees boosts morale, saves money, and gives your business a positive reputation. Your commitment to improving occupational health shows your employees you care, instilling confidence and promoting productivity. It also helps prevent workplace injuries and illness, keeping your employees safe and reducing workers’ compensation claims. In today’s competitive market, having a strong focus on occupational health sets your business apart and attracts top talent. Your workers’ compensation rates benefit from creating a workplace where employees feel safe and confident performing their jobs.

    Workplace Safety And Workers’ Compensation Management With GMS

    Maintaining all aspects of occupational health can be challenging for a small business owner. If you need help managing your workplace safety strategy, partner with a professional employer organization (PEO) like GMS. We have safety experts who can provide advice and help you identify potential risks in your workplace. We also offer comprehensive training courses that educate you on ways to prevent injuries and support a culture of safety.

    In addition to providing workplace safety services, GMS can help you save money on workers’ compensation insurance. We partner with businesses to manage workers’ compensation insurance rates and protect them from costly claims. Overseeing the claims management process, GMS helps with reporting, investigations, claims certifications, and more. Our strategies for cost containment and loss prevention can also assist in managing workers’ compensation rates.

    GMS is committed to supporting you in prioritizing your employees’ well-being and providing appropriate coverage. Contact us today to learn how to navigate workers’ compensation insurance options and find the best solution for your business!

  • Are you a business owner considering selling your business? Selling a business can be daunting, especially when it comes to the administrative burden and HR management. However, with the right support in place, such as a partnership with a professional employer organization (PEO), the process can be streamlined, allowing potential buyers to see the true value of your business without getting bogged down by administrative complexities.

    Understanding A PEO

    Let’s start with the basics—understanding what a PEO is. A PEO is a strategic partner who helps businesses navigate the complexities of human resources and employment management. Think of a PEO as your one-stop shop for HR solutions. By teaming up with a PEO, businesses can outsource essential HR tasks such as payroll processing, benefits administration, and compliance management. Beyond administrative support, PEOs offer expertise, resources, and guidance to help businesses thrive.

    A PEO provides business owners access to a team of HR professionals who understand the nuances of employment regulations and industry best practices. In layman’s terms, a PEO allows business owners to focus on what they do best – growing their bottom line – while leaving the HR heavy lifting to the experts.

    Diving Deeper Into The Value Of A PEO

    When you sell your business, utilizing a PEO adds more value than you think. So, consider this analogy for clarity: selling your business that utilizes a PEO is like selling a furnished house. Just as a furnished house presents a more attractive and convenient option for potential buyers, a company with a PEO partnership offers a streamlined and well-managed operation ready for the new owner to step in and start generating revenue without the hassle of handling administrative tasks.

    Streamlined operations

    A business that partners with a PEO experiences streamlined operations, much like a furnished house saves a buyer the trouble of buying and arranging furniture. The administrative and HR functions are well-organized, making the business more appealing to potential buyers due to its operational efficiency and ease of takeover.

    Administrative simplicity

    Just as a furnished house eliminates the need to handle multiple vendors for furniture, a business with a PEO in place reduces the need for the buyer to coordinate and understand various administrative vendors. A PEO handles HR, payroll, benefits administration, and compliance, all under one roof, simplifying the administrative burden for the seller and the potential buyer.

    Financial efficiency

    A furnished house often commands a higher price due to the added convenience it offers. Similarly, a business with a PEO is more attractive to buyers due to the cost savings and operational efficiency it provides. The buyer can see the potential for financial efficiency and reduced operational costs, making the business a more appealing investment opportunity.

    The Benefits Of A PEO When Selling Your Business

    A PEO brings professional HR expertise to the table, ensuring that the HR aspect of a business is well-managed and compliant with regulations. This expertise adds significant value to a company, making it an appealing prospect for potential buyers looking for a well-structured and compliant acquisition.

    Risk mitigation

    By partnering with a PEO, business owners can mitigate risk and ensure compliance with employment laws and regulations. This reduces the potential liabilities for the buyer, making the acquisition more attractive and less risky.

    Focus on core business

    With a PEO handling administrative tasks, the business owner can focus on the core aspects of the business, such as growth strategies, customer relationships, and product development. This hands-off approach to administrative tasks makes the business more appealing to potential buyers looking for a well-organized and efficient operation that allows them to focus on business growth.

    Cost savings

    A PEO can help businesses save on administrative costs by streamlining processes and providing access to cost-effective benefits packages. This ultimately increases the business’s value and makes it a more appealing investment opportunity for potential buyers looking for a financially efficient acquisition.

    Meet GMS

    If you’re considering selling your business, the benefits of partnering with a PEO are unmatched. Let us welcome you to Group Management Services (GMS), a certified PEO (CPEO), who can help you during this time of change. At GMS, we understand that selling your business comes with challenges; however, don’t let that be the stopping factor. By simplifying the process, we reduce the burden on business owners. Our experts are here every step of the way. Look no further and contact our team today to get your journey started.