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  • The U.S. Department of Labor (DOL) has introduced a new rule under the Fair Labor Standards Act (FLSA) set to take effect on March 11, 2024. This rule could potentially lead to significant changes in how contract workers are classified, with potential implications for employers regarding benefits, insurance coverage, and exposure to employment-related lawsuits.

    The New Rule

    The Employee or Independent Contractor Classification Under the Fair Labor Standards Act rule, which replaces a rule established during the Trump Administration, aims to provide a clearer analysis for employers to determine a worker’s employment status. It re-adopts an enhanced economic realities test for worker classification that was previously in effect under an Obama administration rule. The new rule introduces a six-factor test to guide employers in determining a worker’s employment status under the FLSA, as opposed to the two-factor test under the Trump administration.

    The six factors in determining worker status under the new rule include the following:

    • Opportunity for profit or loss depending on managerial skill
    • Investments by the worker and potential employer
    • Degree of permanence of the work relationship
    • Nature and degree of control
    • Extent to which work performed is an integral part of the business
    • Skill and initiative

    Concerns With The New Rule

    Employers have expressed concerns about the broader impact of the new rule, fearing that it may have consequences beyond just minimum wage and overtime pay protections. While the DOL insists that the change is tailored and limited, some experts and industry professionals believe otherwise.

    In addition, the change in worker classification may have significant implications for various industries, particularly the construction sector. However, the National Electrical Contractors Association has expressed support for the new rule, citing its potential to address the widespread misclassification of workers across industries.

    The new rule faces court challenges, with concerns raised about potential confusion arising from workers being classified differently under various statutes and across different states. This confusion could lead to increased employment-related litigation, as highlighted by pending lawsuits challenging the rule.

    Implications For Workers And Employers

    While some labor unions and advocates support the reclassification of workers as employees for wage and hour purposes, certain groups, such as app-based gig workers and business advocates, are concerned about the potential loss of opportunities and flexibility if gig workers were to be classified as employees.

    In addition, the new rule may prompt employers to rethink their insurance coverage. This could lead to more confusion about the coverage of certain claims and the need for additional insurance, such as employment practices liability insurance (EPLI) or directors and officers (D&O) liability insurance.

    How A PEO Can Help

    In light of the changes stemming from the DOL’s new rule on employee classification, businesses may find value in seeking the support of a professional employer organization (PEO) like Group Management Services (GMS). PEOs offer expertise in navigating complex employment regulations, providing guidance on worker classification, and assisting in the management of benefits and insurance coverage. Through a partnership with GMS, businesses can proactively address the challenges posed by the new rule, ensuring compliance while maintaining their focus on core business operations. As the regulatory landscape continues to evolve, leveraging the resources and expertise of a PEO can empower businesses to adapt effectively and thrive in the face of changing employment practices and legal requirements. If you’re interested in learning more about what a partnership looks like with GMS, contact us today.

  • Picture this: you’ve identified two ideal candidates for a job vacancy. They check all the boxes for qualifications and appear to be a perfect match for your company culture. During the final stage of the interview process, an employee asks Candidate A in passing about their marital status and whether they have children. This inquiry seemed harmless at the time, and you let it pass without much thought, however, when your company opts to hire Candidate B, you face a discrimination lawsuit from Candidate A.

    It’s no surprise that it takes a lot of questions to determine whether a candidate is the right fit for your company. However, you may not know that there are quite a few interview questions and topics that can land your company in trouble. Under the U.S. Equal Employment Opportunity Commission (EEOC), the supposed conversational question on marital and family status in the above scenario was illegal – and Candidate A was within their rights to follow legal action.

    Hiring is a stressful time for many reasons, and preparing your hiring team with the knowledge they need is one way to ensure compliance with federal laws and regulations.

    Employment Laws And Regulations

    Employment laws extend beyond federal regulations. There are several local, state, and city laws that your business is required to follow. One example of this is the city of Cincinnati’s Salary Equity Ordinance, a measure that took effect in March 2020. This ordinance made it illegal for employers in Cincinnati to ask about a job candidate’s pay history. California Labor Code 432.3, a state-wide law, similarly makes questions surrounding salary history illegal.

    While this ordinance relates to Cincinnati employers, there are many state and city laws across the country, so it’s crucial you fully understand your local regulations. Unlawful questioning can lead to various consequences, including discrimination lawsuits or an investigation by the EEOC, which can be frustrating and challenging to recover from.

    Problematic Topics For Job Interviews

    To safeguard your business, it’s crucial to understand illegal interview questions before you start the interview process. Typically, when you’re ready to fill a vacant position, you’re under time pressure, making it too late to meticulously review your questions for legal compliance. At this point, your business becomes vulnerable to potential lawsuits.

    Some illegal interview inquiries are clear – you shouldn’t ask questions about a job candidate’s race or sexual identity. However, there are several less obvious questions that are also illegal. In addition, as with the marital and familial status example, what you may see as a casual attempt at small talk can be interpreted as a topic that’s off-limits. This means that beyond reviewing your prepared interview questions, it’s crucial to equip your hiring team with guidance on safe conversational topics to avoid inadvertently broaching illegal subjects.

    To help you get started, here are some topics to avoid or proceed with severe caution:

    National origin and citizenship

    Any question regarding a candidate’s national origin can be an issue. The Immigration Reform and Control Act of 1986 (IRCA) makes it illegal for employers to base hiring decisions on a person’s citizenship or immigration status. Even a question about a candidate’s accent could be interpreted as an attempt at discrimination. You are, however, allowed to ask whether a candidate can legally work in the U.S., provide the required documentation if hired, and read, write, and speak English if needed.

    Religion

    Avoid questions that involve a candidate’s religion. Even roundabout questions like whether a candidate will need time off for religious holidays can be seen as non-job related and an attempt to discriminate against a person for their beliefs.

    Pregnancy status

    Even if the person interviewed is pregnant, it’s illegal to ask about their pregnancy. Not only does this violate set pregnancy discrimination laws, but it can appear as gender discrimination since male candidates won’t have to answer the same questions. General questions about any future planned leave are acceptable if the question isn’t tied to pregnancy. Focus the interview on other neutral job-related questions involving work responsibilities to see if the candidate can perform the necessary tasks.

    Disability

    The Americans with Disabilities Act (ADA) makes it illegal for employers to ask questions that “are likely to reveal the existence of a disability before making a job offer.” That means any questions regarding how many sick days an applicant took in the past year or what prescriptions they take.

    In addition, do not ask if an applicant will need reasonable accommodation unless you know the candidate has a disability. According to the EEOC, it’s acceptable to ask about reasonable accommodations if the applicant voluntarily reveals their disability or there is a clear visual sign, such as if the applicant uses a cane for a severe limp.

    Age or genetic information

    It’s only acceptable to ask about an applicant’s age if it’s directly tied to their job. For example, an individual working at a bar or other 21-plus environments will need proof of age. Even a question such as when an applicant graduated from high school can be viewed as an attempt to identify a person’s age.

    Arrest record

    According to the EEOC, no federal law prevents employers from asking candidates about their criminal history – although “Using criminal history information to make employment decisions may violate Title VII of the Civil Rights Act of 1964.” It’s important to note that while there’s no federal law against asking about arrest records, many states, such as California, Connecticut and Massachusetts, ban the practice. As such, check your state’s regulations before asking candidates about their criminal history.

    Protect Your Company During The Hiring Process

    Adding a new employee is an exciting step for any business, but it’s essential to ensure your business remains compliant throughout the process. Fortunately, there are many steps that you can take to avoid illegal interview questions. These include:

    • Establishing set interview questions for every candidate
    • Treat every candidate the same during the interview process
    • Take notes and document the results
    • Have more than one interviewer in the room

    Another way to help your business is to hire a professional employer organization (PEO) that can not only oversee employee hiring and training but also help you shoulder the administrative burden created by crucial HR functions. The GMS team can help you stay current on the latest rules and regulations while managing everything from your company’s payroll to employee benefits plans.

    Contact us today to learn more about what we can do to help you protect your company now and prepare for the future.

  • As a small business owner, the day-to-day can feel like an endless cycle of putting out fires and being pulled in conflicting directions, leaving you with little to no time to work on the aspects of your business you’re most passionate about. However, HR can’t be ignored; it involves intricate and time-consuming tasks that demand ongoing attention. If mismanaged, your company could face harsh penalties and reputational harm that could take months or years to recover.

    While handling it all yourself may seem doable, as your business grows, it may not be possible to juggle the many moving pieces that make up successful and compliant HR policies and procedures – even with the best intentions, mistakes and oversights happen. Professional employer organizations (PEOs), such as GMS, help ensure nothing falls through the cracks.

    What Is A PEO?

    PEOs manage various HR tasks, such as benefits administration, payroll processing, recruitment, risk management, and other operations responsibilities. PEOs help safeguard your business against potential legal and reputational pitfalls. They specialize in maintaining compliance, ensuring that your HR policies align with federal and local employment regulations.

    In addition to compliance, they serve as a partner in the strategic management of HR functions. Through optimizing processes and introducing best practices, PEOs can significantly enhance your overall efficiency and productivity, which help attract and retain top talent.

    PEOs act as an extension of your business and provide the support needed to navigate the complexities of HR. While PEOs take on the administrative burdens of HR, they follow your lead. This arrangement ensures that your business’ core identity and operational direction remain firmly in your hands. In other words, PEOs don’t take over your business. Instead, they free up your time and energy by taking over the administrative aspects of HR processes so you can focus on core business activities such as strategic planning, business development, and customer engagement.

    Benefits Of Working With A PEO

    PEOs allow you to offer exceptional and competitive benefits to your team. PEOs pool their buying power and can negotiate with insurance and benefits vendors, giving you access to broader and more competitive benefits packages. These can include health insurance, dental and vision plans, retirement savings plans, and even wellness programs, which might not be possible for you to offer as a smaller business on your own.

    The ability to offer top-tier benefits packages can significantly impact your company’s recruitment and retention efforts. In a competitive job market, attractive benefits packages stand out to high-performing talent, making them more likely to join and stay with your company long-term.

    In addition, partnering with a PEO can lead to the following:

    • Financial savings: One way PEOs can save money is by reducing employee turnover costs. Not only is hiring simplified and faster, but partnering with a PEO can help refine your HR processes, helping with overall job satisfaction and retention.
    • Technology system access: Partnering with a PEO provides access to several technology platforms, including human resources information systems (HRIS), online payroll solutions, and more. These user-friendly platforms can seamlessly integrate with your existing systems, enabling straightforward access to employee information, report generation, and data storage capabilities.
    • Scalability: As your business grows, a PEO can quickly adapt to your changing needs, from adding new employees to expanding into new cities or states. This scalability can be a significant advantage for rapidly growing businesses.
    • Enhanced recruitment: PEOs equip you with the necessary tools and expertise for efficient employee recruitment, onboarding, and ongoing training processes. From creating a job posting to screening various candidates, PEOs free up your time so you only interview qualified applicants. Beyond screening talent, PEOs help establish a complete onboarding process, ensuring new hires are effectively integrated into your company and receive the training they need to succeed.
    • Employee development and training: Ongoing training is necessary to ensure your team is well-versed in their responsibilities and the company’s procedures. PEOs can help facilitate this through learning management systems (LMS), enabling you to establish and track employee training programs.

    Is A PEO Right For My Business?

    There are many factors to consider when deciding if a PEO is right for your business. First, it’s crucial to take inventory of your specific pain points. Are you looking for help with payroll, compliance, employee benefits, workers’ compensation, or all of the above? Understanding your needs will help you choose if a PEO is right for you.

    Additionally, consider the cost of a PEO. PEOs will save you time and money in the long run; however, it’s crucial to understand the pricing structure and compare it against the potential cost savings to ensure it’s truly the best decision for you.

    Overall, PEOs offer an excellent solution for small businesses aiming to develop and sustain a strong workforce. Securing top talent involves more than just an appealing job title; employees seek organizations that provide competitive benefits and have comprehensive processes and policies in place.

    HR With GMS

    Our goal is to help employers make their business simpler, safer, and stronger through dedicated HR support. We provide comprehensive HR solutions to companies small, medium, and large throughout the United States, allowing them to increase operational efficiencies, save money, and enhance the overall employee experience.

    With GMS, is a one stop shop, you won’t have multiple vendors providing multiple services. You get one team with years of experience managing HR, payroll and tax, benefits, and risk management. We provide:

    • Expertise: GMS offers a wide range of services and customized support. For the best fit, explore our offerings to ensure our capabilities align with your needs.
    • Peace of mind: GMS is a certified professional employer organization (CPEO), meaning we meet the requirements set by the IRS and can provide specific financial protections and tax benefits.
    • HR in a crisis: Are you ready to handle an HR crisis? GMS can help your business navigate various challenges, from handling sexual harassment complaints to managing workers’ compensation claims. We can ensure your policies remain current and your team is well-equipped to address any challenges. We are always ready to provide support during crises.

    Whether you know exactly what you need help with or aren’t sure where to start, our team is ready to help. Contact us today to connect with one of our experts!

  • In the dynamic landscape of small businesses, owners often find themselves juggling multiple roles, from managing operations to ensuring compliance with labor laws. With limited resources and personnel, handling HR tasks can be daunting, time-consuming, and prone to errors. However, partnering with a professional employer organization (PEO) can offer substantial benefits. Let’s dive into why outsourcing to a PEO could be a game-changer for businesses, even those with as little as five employees.

    Expertise At Your Fingertips

    Small businesses often lack dedicated HR departments or personnel with extensive HR expertise. PEOs bring seasoned professionals to the table who specialize in various HR functions, including the following:

    • Payroll processing
    • Benefits administration
    • Compliance management
    • And more

    By outsourcing to a PEO, small businesses gain access to knowledge and experience without the overhead costs of hiring full-time HR staff.

    Enhanced Benefits Package

    Attracting and retaining top talent is a constant challenge for small businesses, especially when competing against larger corporations with robust benefits packages. PEOs pool together employees from many companies (the PEOs clients), creating economies of scale that enable access to high-quality benefits at competitive rates. From health care and retirement plans to wellness programs and employee assistance services, PEOs empower small businesses to offer comprehensive benefits that are competitive with larger businesses.

    Streamlined Compliance

    Navigating the ever-evolving landscape of employment laws and regulations can be daunting for small business owners. Non-compliance can result in hefty fines, legal liabilities, and reputational damage. PEOs specialize in staying on top of these changing regulations, ensuring their clients remain compliant with federal, state, and local laws. By outsourcing compliance management to a PEO, small businesses can mitigate risks and focus on growth initiatives with peace of mind.

    Time-Saving Solutions

    Time is precious for small business owners wearing multiple hats. Handling HR tasks, such as payroll processing, employee onboarding, and performance management, can eat into valuable time that could be spent on strategic initiatives. PEOs automate these mundane HR processes, streamline workflows, and provide self-service tools that empower employees to manage their information more efficiently. This frees up valuable time for small business owners to focus on driving innovation, expanding market reach, and nurturing client relationships.

    GMS – The One-Stop Shop For Your Outsourcing Needs

    In an increasingly competitive business landscape, small businesses must leverage every available resource to thrive and succeed. Partnering with a PEO offers small businesses a strategic advantage by providing access to expertise, cost-efficient solutions, enhanced benefits packages, streamlined compliance, and time-saving tools.

    At Group Management Services (GMS), a certified PEO (CPEO), we’re here to help businesses in all different industries with as few as five employees to hundreds. If you’re that small business owner hanging on by a thread, look no further – we’re your one-stop shop. Let us unlock your full potential, maximize operational efficiency, and position your business for sustainable growth in the marketplace. Contact our HR experts to get started!

  • A Texas district court judge has postponed the effective date of the National Labor Relations Board’s (NLRB’s) joint employer rule by two weeks, shifting it from February 26, 2024, to March 11, 2024. This move has created heated discussions and raised questions about its potential implications across various industries.

    Unpacking The New Rule’s Far-Reaching Standard

    The NLRB’s joint employer rule introduces an expansive standard, requiring that companies should be considered joint employers of contract and franchise workers. This will require them to engage in collective bargaining with unions if they exert control over critical working conditions such as pay, scheduling, discipline, and supervision, regardless of the nature of this control – whether direct, indirect, or unexercised.

    In response to the delay, the court indicated that “an opinion with the court’s reasoning will be issued forthwith.” This decision came on the heels of a lawsuit filed by the U.S. Chamber of Commerce and other business groups. They claimed that the rule runs against federal law and could disrupt numerous industries reliant on temporary and contract labor.

    Potential Implications Of The New Rule

    The implementation of the broader standard under the new rule has sparked concerns about its potential to significantly impact the franchise industry and disrupt business-to-business arrangements for outsourced labor. Critics of the rule caution that its expanded scope could potentially unsettle established business practices and lead to operational challenges for various industries.

    Previous Delays

    It’s important to note this delay isn’t the first for the NLRB’s joint employer rule. Initially slated to take effect on December 26, 2023, it was then rescheduled to February 26, 2024, following the Government Accountability Office’s determination that the original effective date violated the Congressional Review Act. In addition, the U.S. House of Representatives passed a proposal in January to overturn the rule, which is currently awaiting consideration by the Senate. President Joe Biden has made it clear that he will veto the resolution if it gains approval in both houses of Congress.

    Considerations For Business Owners

    With the potential enactment of the NLRB’s new joint employer rule pending, businesses must evaluate their contractual and operational landscapes. The pivotal question for businesses to think about is whether they anticipate the need to control another employer’s workers. Depending on their assessment, they may need to re-evaluate their contracts, policies, and practices to ensure alignment with the new rule or consider adjustments to sidestep a joint employer relationship.

    Leveraging HR Expertise And Compliance Support

    As we navigate this uncertain regulatory terrain, businesses might find reassurance in considering alternative solutions to address the potential impacts of the NLRB’s joint employer rule. Partnering with a professional employer organization (PEO) like GMS could offer a valuable advantage, providing access to HR expertise, compliance support, and tailored employment practices. By partnering with a PEO, businesses can strengthen their position in the face of regulatory changes, gain valuable insights, and ensure their workforce management strategies remain adaptable and compliant, regardless of the outcome of the NLRB’s joint employer rule. Contact our HR experts today to learn more.

  • As a small business owner, you wear many hats – manager, leader, and mentor. When faced with an employee who isn’t meeting expectations, it’s essential to handle the situation constructively. Enter the performance improvement plan (PIP) – a structured approach that benefits your business and employees.

    What Is A PIP?

    A PIP is a written document that outlines an employee’s performance gaps and provides a roadmap for improvement. Whether job-specific skills or soft skills such as leadership and professionalism, a PIP identifies where an employee falls short. Interestingly, PIPs aren’t just for underperforming employees; they can also guide high-performing individuals seeking career advancement.

    Why PIPs matter for small businesses

    1. Legal protection: PIPs protect your business from potential legal issues. By documenting performance concerns and providing clear expectations, you create a paper trail that safeguards your decisions.

    2. Productivity boost: Addressing underperformance promptly prevents productivity losses. A well-executed PIP can turn things around, benefiting the employee and the company.

    3. Positive company culture: PIPs reinforce a positive work environment. Employees appreciate knowing where they stand and receiving support when needed.

    4. Employee retention: Instead of resorting to termination, a PIP gives employees a chance to improve. Retaining talent is critical for small businesses.

    Creating An Effective PIP

    Crafting an effective PIP is a pivotal step for small business owners in fostering employee development, enhancing productivity, and maintaining organizational performance standards. To make it easy, we’ve created a step-by-step guide for you to follow to implement a PIP within your business:

    1. Assess the situation:

    • Determine if a PIP is appropriate for the specific employee
    • Consider the employee’s role, performance history, and potential for growth

    2. Develop a plan:

    • Collaborate with the employee’s supervisor to create a customized PIP
    • Specify areas for improvement, whether it’s technical skills, communication, or teamwork
    • Set clear expectations and realistic goals

    3. Meet with the employee:

    • Schedule a one-on-one meeting to discuss the PIP
    • Be empathetic and supportive – focus on improvement rather than blame
    • Involve HR if necessary

    4. Monitor progress:

    • Regularly check in with the employee
    • Provide constructive feedback and celebrate small wins
    • Adjust the plan if needed

    5. Evaluate results:

    • Assess progress within the specified timeframe (typically 30 to 120 days)
    • Determine if the employee has met the expectations outlined in the PIP
    • Decide on the following steps: continued improvement, termination, or other actions

    The Assistance Of A PEO

    PIPs are not punitive; they’re a lifeline for employees needing more support. Small business owners should embrace PIPs as a tool to foster growth, retain talent, and maintain a positive workplace. While we’ve provided you with the basics of creating a PIP, implementing it within your business is the next step. Fortunately, our HR experts at GMS are here to help; you don’t have to navigate this alone. Leveraging their expertise in performance management, employee development, and compliance, they assist you in crafting tailored PIPs and ensuring best practices. Ultimately, they’re here to drive performance improvement, foster employee success, and propel organizational growth. Contact us today to learn more.

  • In October 2023, Representatives Raja Krishnamoorthi, D-Illinois, and John James, R-Michigan, introduced the bipartisan Opportunity to Compete Act, a groundbreaking legislation designed to address the challenges faced by job seekers without bachelor’s degrees. The act aims to ensure fair consideration for these individuals in the hiring process, emphasizing skills-based evaluation over traditional educational qualifications.

    The Need For Change

    The current hiring landscape is heavily influenced by automated recruitment systems, which often utilize degree requirements as a primary filtering mechanism. A 2021 study revealed that over 90% of employers rely on such systems, with half using education level as a decisive filter. This approach inadvertently excludes a significant portion of the workforce, as approximately two-thirds of U.S. workers do not hold a bachelor’s degree.

    Addressing Bias And Promoting Diversity

    The Opportunity to Compete Act seeks to rectify this imbalance by mandating that large employers using automated degree requirement settings disclose the expected years of experience applicants need. In addition, it allows for the substitution of relevant work experience for a four-year degree. This shift in evaluation criteria would amend the Fair Labor Standards Act (FLSA) to eliminate bias against individuals who have acquired valuable skills through alternative routes such as military service, community college, or training programs.

    Advocacy And Support For The Act

    Industry experts and advocates have strongly supported the Opportunity to Compete Act, emphasizing its potential to foster diversity and inclusion while expanding access to job opportunities. Chief Executive Officer (CEO) of YUPRO Placement Michelle Sims highlighted the legislation’s role in diversifying the evaluation criteria during the initial stages of hiring, thereby promoting fairer consideration for all candidates.

    In addition, this bill emphasizes the significance of the millions of workers who have honed their skills through alternative educational paths such as community college, apprenticeships, and on-the-job experience. The act is positioned as a critical enabler for these individuals to showcase their capabilities and contribute meaningfully to the workforce.

    Empowering Alternative Educational Routes

    The proposed legislation acknowledges the value of alternative educational pathways, which provide accessible and affordable means for individuals outside traditional talent pools to develop skills relevant to various early and mid-career roles. By recognizing the value of these non-traditional routes, the act supports a more inclusive and equitable approach to evaluating job candidates.

    Hiring And Recruiting With A PEO

    Should this bill go into effect, small business owners will need to remain compliant. However, you didn’t start your business to stay on top of laws and regulations or spend countless hours hiring and recruiting top talent that will help your business grow. That’s why small and medium-sized companies turn to a professional employer organization (PEO) like GMS for help. A PEO provides comprehensive HR services to its clients, including payroll, benefits, compliance, and more. This partnership allows businesses to outsource the administrative and legal aspects of hiring and recruiting. In addition, at GMS, our HR experts can access a larger pool of qualified candidates, offer competitive compensation and benefits packages, and reduce your turnover and hiring costs. If you want to learn more about how GMS can help your business grow, contact us today. We’re here to help you and your business thrive.

  • Employee handbooks are not just an easy-to-access resource for your team but an essential component of your company’s infrastructure. They provide employees with a clear understanding of company policies, expectations, and culture, making it crucial to have a comprehensive and up-to-date handbook. However, the value of an employee handbook diminishes if it’s not regularly reviewed and updated.

    Leaving your handbook unattended on the shelf year after year without revisions can result in several negative outcomes, such as reinforcing outdated and potentially non-compliant laws and regulations. Employment laws, workplace safety standards, and industry regulations evolve. Failing to update your handbook accordingly can leave your business vulnerable to legal challenges, financial penalties, and damage to your business’ reputation.

    What Is An Employee Handbook?

    Employee handbooks are an excellent tool for business owners to share relevant information with employees. Separate from an employee agreement, which details salary, job title, job description, etc.; employee handbooks are an opportunity to provide easy-to-understand explanations of your policies and procedures, including company programs such as paid time off (PTO), sick leave, and more. While you should regularly share reminders with your team regarding specific policies and company programs, employee handbooks allow staff to review information whenever needed.

    Benefits Of Having An Employee Handbook

    Handbooks are a foundational tool for everyone on your team, from your newest hire to senior leadership and managers. They ensure everyone operates from the same set of standards, which is essential for creating a cohesive company culture. In addition, they help set expectations and provide clarification when challenging questions or situations arise.

    For new hires, employee handbooks are an excellent resource for learning about your company’s mission and values. Onboarding is an overwhelming time for new employees; providing them with a handbook can help them review important information later when they are more comfortable in their new position.

    Furthermore, a well-structured employee handbook can significantly enhance decision-making by providing a clear framework for managers and employees. This clarity reduces the time spent on deliberations and increases the efficiency of resolving issues, allowing for more focus on productive work and innovation.

    Why Update Your Handbook?

    As your business grows and develops, so should your employee handbook. As laws evolve and new technologies emerge, your internal policies must adapt accordingly. Since your handbook is a key reference point, outdated information could lead to unintentional non-compliance. It’s essential to inform your team about these updates and incorporate them into your handbook. This ensures that everyone is in sync with your policies and procedures.

    In addition, updating your handbook helps:

    • Adapt to organizational growth: As your business grows, it may become subject to new regulations. For example, exceeding 20+ full-time or full-time equivalent (FTE) employees will bring your business under the purview of the Age Discrimination in Employment Act (ADEA). It’s crucial to regularly review and revise your policies to ensure compliance with applicable laws as your business evolves.
    • Health and wellness: Policies must stay current to reflect the changing health landscape and societal needs. The COVID-19 pandemic highlighted the need for flexibility in policymaking, as companies had to introduce or revise policies concerning leave, remote work, and bereavement to accommodate unprecedented circumstances. Your handbook should be responsive and allow for quick policy changes when needed.
    • Align with the current company mission: As your business develops, your core mission and goals may shift. Ensuring your handbook is updated will help keep your managers and employees aligned with your mission. This alignment is essential not only for internal work but also for presenting a consistent message to your clients and stakeholders. 
    • Ensure fair treatment: An updated handbook ensures you have proper policies to address potential issues. This includes establishing clear protocols for dealing with harassment and outlining the steps to take when employees do not comply with established guidelines. Such measures are crucial for maintaining a workplace where every team member is subject to the same rules and expectations, which in turn help promote a culture of fairness and respect.
    • Hold your team accountable: A handbook can safeguard your business. Having a paper trail of your policies and their updates in your handbook shows that you communicated them to your team. It keeps your staff aligned with your goals, and should any situation escalate to the point of employee termination, this documentation provides solid justification for the action taken due to non-compliance.

    When And What To Update

    Most information in your employee handbook won’t need updating very frequently, but it’s good practice to review your handbook on at least a yearly basis. Delaying this review can result in a backlog of necessary changes, significantly extending the time required to update the handbook. Unless your organization is experiencing rapid growth or undergoing shifts in its mission and values, an annual review will be enough to keep your handbook current and relevant.

    During your review, be sure to examine the following:

    • Federal and local laws and regulations
    • Wage and hour policies
    • Staff training and processes
    • Leave and benefits
    • Employee conduct policies
    • Technology and systems policies

    Reviewing your employee handbook will take time and can be done internally; however, it’s essential that an HR professional checks it. If you don’t have a designated HR professional on staff, partnering with a professional employer organization (PEO) is one way to ensure you’re up to date with best practices and are compliant with legal regulations.

    HR Outsourcing With GMS

    As a business owner, you may discover that you no longer have the capacity to manage administrative tasks or keep up with the ins and outs of HR. That’s where we come in. PEOs like GMS can manage a range of responsibilities for your business. By outsourcing aspects such as payroll tax to employee benefits and more, we save you time and money while ensuring your business’ compliance with local and federal laws. We focus on administrative work so you can focus on what matters most in your business.

    Our HR professionals are ready to help make your business simpler, safer, and stronger. Contact us today!

  • It’s time to dust off your HR processes and give them a thorough review. HR laws and guidelines are subject to change, and your HR policies must reflect those changes. Though auditing your HR procedures may seem like a hassle or something that can wait, if found noncompliant, you could incur significant penalties and reputational damage that can take months or years to set right. HR can be complicated and confusing to understand. We’ve compiled a short guide to help you start your audit.

    Why Are HR Audits Necessary?

    HR audits aren’t mandatory, but they can help protect your business and save you time and money in the long run. HR audits carefully examine your business policies and procedures as they relate to federal, state, and local laws such as the Fair Labor Standards Act (FLSA) and the Americans with Disabilities Act (ADA). They help find outdated policies misaligned with current laws or practices, and also identify areas negatively impacting employees that need improvement.

    In addition, HR audits can:

    • Help improve your processes and policies. HR audits can highlight inefficiencies by thoroughly examining existing HR procedures, from recruitment and onboarding to performance evaluations and compliance with labor laws. Audits can help organizations foster a more engaging and responsive workplace environment, ensuring policies are not only compliant but also aligned with the strategic goals and expectations of employees.
    • Reduce turnover. HR audits can help you identify reasons employees are leaving and assist in developing a plan to boost retention. These audits examine various aspects, including job satisfaction, management practices, career development opportunities, and workplace culture. By gathering and analyzing exit interview data, employee surveys, and other relevant information, you can identify patterns and pinpoint specific areas for improvement.
    • Address and prevent harassment. Creating a safe and respectful workplace is a non-negotiable for modern organizations. HR audits can help ensure you have proper policies to prevent harassment or bullying affecting team morale, productivity, and more. They review existing policies, complaint procedures, and how past incidents are handled to assess their effectiveness. Through reviewing compliance with current laws and best practices audits can help determine areas for improvement and develop new strategies to better protect employees.
    • Improve workplace safety. HR audits can provide a comprehensive review of safety practices, incident reports, and compliance with occupational health and safety regulations. By analyzing data on common workplace injuries, such as when and where they happen; you can identify any underlying safety hazards, such as faulty equipment, fatigue, understaffing, etc.

    HR audits can drastically improve areas of your business while ensuring you avoid lawsuits, fines, and reputational harm. Think of them as preventative care that keeps your organization healthy and capable of recovering from potential setbacks.

    Types Of HR Audits

    Beyond a general HR compliance audit, there are a few other audits to choose from: best practices, strategic, and function-specific. Each is helpful and can help safeguard your business.

    Best practices audit

    This audit examines your HR practices holistically and compares them to proven best practices. It helps identify areas for improvement while assessing your competitive advantage.

    Strategic audit

    Strategic audits are particularly helpful if your business is growing. They help identify strengths and weaknesses in your HR processes and ensure they align with your business’s strategic plan.

    Function-specific

    These audits focus on one or a few areas within your HR practices, such as payroll, hiring, and onboarding.

    How To Conduct An HR Audit

    Once you’ve selected the right audit for your business, there are a few critical steps to consider. First, determine who will be conducting the audit. While internal audits are possible, and you can run them yourself, partnering with a professional employer organization (PEO) can save you time and energy, ensuring you don’t miss any vital elements.

    After determining who will conduct the audit, start planning the details, when it will take place, the type of audit, and your goals. Inform your team, including information about audit meetings, what to expect, questions they will be asked, or information they will need to locate.

    Now that you’ve laid the groundwork to conduct your audit, consider the following:

    1. Check federal and local laws and industry regulations 
    Start by reviewing employment laws. Ensure you thoroughly understand them and employee forms such as W-2, I-9, etc. Stay updated with your industry’s specific regulations and review your department’s practices for potential risks. This foundational step ensures your audit is grounded in the latest legal requirements and industry standards.
    2. Evaluate current processes  
    Audits not only evaluate your policies and procedures but also their implementation. Technically speaking, your practices could be compliant and efficient; however, you could still have issues if poorly implemented. 
    3. Secure sensitive information
    Audits go beyond reviewing employee handbooks; they often require examining employee paperwork. This means handling sensitive information, and you’ll need to ensure it stays protected, digitally or otherwise, throughout the process. 
    4. Create your audit report
    Write up your findings. Include the specific areas you examined, any areas that need to be addressed, and the plan to manage them. Give this report to senior leadership and key stakeholders who must stay involved.
    5. Communicate changes with your team
    Transparency and communication are crucial to implementing changes effectively. Keep your staff informed about any policy or process adjustments resulting from the audit. Early and frequent communication helps to secure team buy-in, which is vital for successful implementation.

    HR Audits With GMS

    HR audits can get complicated quickly; you risk overlooking critical elements when handled internally. Partnering with a PEO like GMS can help. You’re an expert in your field but probably not an expert in HR. Our HR professionals stay up to date on employee laws and regulations. No matter what type of HR audit you need, with GMS, you’ll gain access to a dedicated HR specialist who:
    • Takes the time to learn how your HR functions are currently being handled
    • Drafts a comprehensive report that outlines your current HR status
    • Provides recommendations on how you can improve your internal HR processes
    • Offers recommendations on HR functions that can be outsourced

    Contact us today, and let us take the administrative HR burdens off your plate.

  • Governor Kathy Hochul of New York unveiled an ambitious proposal to extend the state’s Paid Family Leave (PFL) program to incorporate prenatal leave, marking a significant stride towards supporting working parents. This initiative aims to provide expecting parents the essential flexibility and financial security to attend prenatal medical appointments without compromising their income or utilizing their existing leave entitlements.

    The Proposal

    Under the proposed expansion, employers in New York would be obligated to provide their employees with 40 hours of paid leave specifically designated for attending prenatal medical appointments. Governor Hochul emphasized this move would position New York as the first state to institute prenatal leave as part of its paid family leave provisions. The plan would only become law if it were in a bill passed by both houses of the state legislature and signed by the governor.

    Addressing A Critical Gap

    New York’s existing PFL program mandates a waiting period of seven days and only becomes accessible four weeks before the expected birth of a child. By incorporating prenatal care as a distinct qualifying event within the PFL framework, pregnant workers would be empowered to prioritize their medical requirements without depleting their leave allocation for post-birth leave.

    PEOs: A Smart Solution For Small Businesses Facing New Labor Regulations

    In the wake of Governor Hochul’s visionary proposal to expand New York’s PFL program to include prenatal leave, small business owners in the state may find themselves navigating new obligations and complexities. During this transformative period, a professional employer organization (PEO) is here to help small business owners. A PEO like GMS offers expertise in navigating evolving labor regulations, managing compliance intricacies, and facilitating seamless implementation of the expanded PFL program. A partnership with a PEO allows business owners to adapt to these changes while ensuring compliance. As a business owner, your main goal is to grow your business and attract and retain top talent, not worry about laws and regulations constantly changing; let GMS’ experts handle that. Get a quote from us today.