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  • To safeguard businesses from potential scams, the Internal Revenue Service (IRS) has just announced a groundbreaking decision. Effective immediately, the IRS has pressed pause on processing new claims for the coveted employee retention credit (ERC) until at least December 31st, 2023. While previously filed ERC claims will be honored, brace yourselves for slightly extended processing times to protect your hard-earned dollars from the clutches of scammers.

    IRS’s Commitment To Combat Fraud

    The IRS is not just hitting the pause button; it’s gearing up to unveil a series of initiatives to rescue businesses that were victims of aggressive ERC promoter schemes. Among these initiatives, a groundbreaking settlement program will provide you with a lifeline to repay any improperly received ERC payments. In addition, for those who may have filed ERC claims incorrectly, a special withdrawal option is in the works. Stay tuned as the IRS is promising more details on these programs.

    What Business Owners Should Know

    So, what should business owners do during this critical period? If you’ve already filed and have an ERC claim in limbo, it’s time for a thorough eligibility check. The IRS has noticed an alarming trend of businesses incorrectly citing supply chain issues as grounds for an ERC claim – a tactic that rarely aligns with the eligibility criteria. If you’re on the fence about filing a claim, it’s wise to consult the updated ERC guidelines and consider postponing your submission. The IRS recommends that businesses take advantage of the processing delay to review the ERC guidelines meticulously.

    Assistance At Your Fingertips

    To aid you in understanding your eligibility, the IRS has taken the initiative to update its ERC FAQs and crafted an eligibility checklist. These resources are available to ensure you make the most informed decisions regarding your ERC claim.

    However, during these times of change and uncertainty, it’s time to take it a step further. Have you considered partnering with a professional employer organization (PEO) like GMS? Our HR experts offer advice on ERC eligibility, ensuring compliance with IRS guidelines, and helping you make the most of available tax credits. We not only streamline your HR processes but also act as a strategic partner to ensure that your business thrives amidst these changing dynamics. Together with the IRS, GMS can be your trusted partner in pursuing financial stability and success. Contact us today to learn more.

  • As a leader, you have to make many decisions that steer your business toward your strategic goals. However, inspiring your staff to align with your vision and perform accordingly, especially during high-pressure or stressful moments, can be challenging. While a motivational speech during an all-staff meeting can provide some inspiration, the true key to success lies in a deeper examination of your organizational culture.

    Organizational culture is not just a concept; it’s embodied by every member of your staff and guided by leadership. Though it may seem difficult to assess, several indicators, such as attrition and engagement rates, will help determine whether your work culture is positive or negative.

    What Is Organizational Culture?

    Organizational culture is the “personality” of your organization. It’s the shared set of values, beliefs, attitudes, customs, and behaviors that characterize how individuals within your organization interact with each other, as well as how they interact with external stakeholders such as customers, suppliers, and the community.

    Organizational culture heavily impacts the success of your business. Companies with positive cultures report a 72% higher employee engagement rate than companies with dysfunctional or negative cultures. A poor culture can lead to staffing, morale, and employee satisfaction issues, which can bleed over into productivity issues, impacting your bottom line.

    The good news is that organizational culture is not static; it can evolve and change over time due to various factors, including leadership changes, market condition shifts, mergers and acquisitions, and deliberate efforts to change the culture. Having a poor organizational culture doesn’t mean your business is doomed. There are tools you can implement that can make significant shifts throughout your business. The key is to remain vigilant.

    Why Does Organizational Culture Matter?

    Positive cultures exhibit greater resilience, reduced burnout, and lower attrition rates, leading organizations to prioritize culture and, therefore, consistently outperforming their counterparts. Additionally, investing in company culture saves time and money on recruiting and hiring. In the ever-competitive job market, attracting top talent can be difficult. As a business owner, to remain competitive, you’ll need to harness various strategies to attract and retain your team, and culture is a significant player. In fact, it’s so important that nearly half of the US workforce is willing to take a lower-paying position at an organization with a positive culture than a high-paying job at a company with a poor culture.

    In other words, work culture is critical in hiring and retention efforts, as employees who feel fulfilled and supported are more likely to stay at an organization. Prioritizing and cultivating a positive organizational culture is essential for enhancing employee well-being, performance, and a strategic advantage that can positively impact your company’s bottom line.

    What Makes A Good Organizational Culture? 

    A strong organizational culture is a culture that promotes a positive work environment, encourages collaboration and innovation, and supports the well-being of its employees. Fundamental elements that contribute to an excellent organizational culture include:

    Respect and trust

    Respect and trust go hand in hand. You can demonstrate both through various avenues, including regularly recognizing employees’ efforts and actively seeking their thoughts and input. Implementing workplace flexibility, which allows employees to set their schedules, work remotely, or offer unlimited time off, is another way to demonstrate respect and trust. This empowerment not only strengthens the bond between employees and your organization but also promotes a sense of autonomy and accountability that can lead to enhanced productivity and job satisfaction.

    Accountability

    A culture of accountability is a fundamental aspect of any successful organization. It extends to everyone in your company as individuals are held responsible for meeting their commitments. This fosters a sense of responsibility and trust among employees and across teams. When everyone is accountable for their own contributions, it promotes a healthy work environment where people can rely on each other to deliver on their promises. This, in turn, leads to increased efficiency, improved teamwork, and a greater likelihood of achieving organizational goals.

    Psychological safety

    Psychological safety in the workplace is vital to fostering a culture where innovation can thrive. Employees should feel empowered to take risks and get rewarded for generating new ideas that align with company objectives. Psychological safety encompasses creating an environment where open and honest feedback is not only encouraged but also valued, regardless of the direction it flows—from team member to team member, from team member to manager or leader, and vice versa. Cultivating these safe spaces enables employees to voice their concerns and share their ideas freely while fostering positive relationships. This, in turn, contributes to higher employee engagement and overall job satisfaction.

    Alignment with business objectives

    A strong culture has a clear set of values and a well-defined mission that guides the organization’s purpose and direction. Regularly communicating your values and mission to all employees through various channels is important. Use company meetings, internal newsletters, intranet platforms, and other communication tools to reinforce these messages.

    Performance driven

    Cultivating a high-performing culture is achieved by making strategic investments in your team. This involves prioritizing professional development, providing training opportunities, and recognizing and rewarding employees for their valuable contributions and achievements. When employees sense this investment in their growth and well-being, it naturally boosts their engagement, resulting in improved performance. Empowered employees who feel supported by leadership are more inclined to go the extra mile and exhibit resilience in the face of challenges. This empowerment ultimately contributes to enhanced overall performance within the organization. Creating and maintaining a good work culture requires consistent effort and attention. While some universal principles can serve as a solid foundation for a healthy and productive work culture, customization to fit your organization’s specific needs and values is crucial. Regularly assess your employees’ needs, engagement, and productivity levels to determine which areas need attention.

    How Leaders Influence Culture

    Leaders play a crucial role in shaping the culture of your organization. They ensure your employees understand your company’s mission, vision, and purpose and how their individual roles contribute to your business’ success. In addition, leaders act as beacons during challenging times or moments of distress. How you and your managers respond in high-pressure situations will significantly influence your team’s reactions. Put simply, whatever behavior your leadership engages in, positive or negative, your staff will follow suit.

    Leaders can effectively influence culture through a few core principles:

    • Integrity: Leaders must align words with actions. For instance, if you claim to trust your staff but micromanage or redo their work consistently, your words and actions don’t match, which can lead to frustrated and disengaged staff.
    • Fair treatment: Cultivating a culture of engaged employees necessitates setting aside any favoritism. While it’s important to recognize and reward good behavior and accomplishments, it’s equally crucial to prevent the formation of exclusive cliques within your organization.
    • Approachability: When your staff recognizes you as a dependable resource for support or guidance, they will be more likely to come to you with innovative ideas. Being approachable helps your team trust that you’ll take their thoughts, concerns, or issues seriously, which can significantly impact their overall engagement and job satisfaction.
    • Humanizing employees: Humanizing your staff is not only common sense but also crucial for building the rapport critical to a positive work culture. Treat your employees as individuals with unique backgrounds and aspirations. Taking a genuine interest in their well-being demonstrates that you care about them as people.

    These core ideas should guide you and your leadership team’s actions and behaviors, which the rest of your staff will adopt.

    HR Audits

    Assessing your company culture is no easy feat. Partnering with a professional employer organization (PEO) like GMS can help. Through our human resource audits, we can help you find areas that need assistance and even help create strategies for you to implement with your team. As your company grows, HR audits can help identify the strengths and weaknesses of your processes to ensure your efforts align with your organization’s strategic plan. Contact us today, and let us help you reach your business goals!

  • Your staff is your most vital asset when it comes to running a successful business. Investing in them is a no-brainer. However, finding the most effective ways to do so is a little more complicated. Incorporating a mentorship program as part of your employees’ professional development offers one highly effective way to help them achieve their career goals and unlock their full potential.

    Mentorship programs can come in many different forms, but to maximize the benefits, you must customize the program to align with your unique goals and the needs of your staff. There are several components to consider when building a mentorship program. However, before we delve into those aspects, let’s first explore some of the advantages.

    Why Mentorship Is Important

    Employee development programs prioritizing mentorship are some of the most effective ways of helping employees develop and achieve their goals while prepping them for the skills needed in the future. In fact, employees who have mentors are promoted five times more often than their counterparts.

    Mentorship is an incredible catalyst for personal and professional growth. It connects individuals with experienced leaders who provide invaluable knowledge and support. Through mentorship, individuals clarify their goals, gain fresh perspectives, and learn from the mistakes and triumphs of those who have walked similar paths. This transformative relationship empowers mentees and allows mentors to give back to their communities and industries, fostering a legacy of growth and development.

    Moreover, mentorship is not a short-term engagement; it often leads to long-lasting relationships. The bonds formed between mentors and mentees often extend beyond the mentorship period, providing a reliable support system and a sense of belonging.

    To determine the most suitable arrangement for your team, it’s crucial to assess their interests and individual goals and continually refine the program as you go. 

    What Makes Mentorship Effective?

    In short, mentorship helps find and unlock unused potential. Mentors can identify and nurture talents often overlooked in the day-to-day environment. In addition, they can help affirm and encourage employees, enhance their self-confidence, and enable them to take on more responsibilities or expand their comfort zones. This, in turn, assists in the overall productivity of your business; engaged employees are more efficient and likely to stay on long-term.

    Other factors that contribute to its effectiveness include the following:

    • Develop communication skills. Mentorship fosters the development of practical communication skills. Mentors provide mentees with the opportunity to articulate their thoughts, ideas, and goals. This practice in communication helps individuals express themselves more clearly and persuasively, a vital skill in any professional setting.
    • Helps employees overcome obstacles. Mentors play a crucial role in assisting mentees in overcoming obstacles. They offer advice based on their own experiences, helping mentees navigate setbacks, problem-solve, and persevere in the face of adversity.
    • Broadens perspective. Mentors often have diverse experiences and backgrounds, which can broaden mentees’ horizons and encourage them to think beyond their immediate circumstances. This broader outlook can lead to innovative solutions and more effective decision-making.
    • Accountability. Effective mentorship often includes setting goals and objectives. Mentors help mentees define clear milestones and hold them accountable for progress. This accountability encourages individuals to stay focused and motivated, driving their personal and professional growth.
    • Continuous learning opportunities. Mentorship promotes a culture of constant learning. Mentees are encouraged to seek knowledge and feedback and adapt to changing circumstances, fostering a growth mindset that benefits both individuals and your organization.

    Nine Steps To Build A Mentorship Program

    Building a mentorship program can be a rewarding and valuable endeavor for any organization. Not only will it support your staff in meeting their individual goals, but it’s also a great tool to assist with engagement and retention efforts.

    To build an effective mentorship program, consider the following steps:

    1. Define purpose and goals: Clearly outline the objectives of your mentorship program. What do you hope to achieve through the mentoring relationship? Examples include career development, skill enhancement, or fostering a sense of community.
    2. Identify stakeholders: Determine who will be involved in the program, including mentors, mentees, program coordinators, and other relevant parties.
    3. Establish structure: Decide on the program’s format, including the duration, frequency of meetings, and the number of participants.
    4. Recruit mentors and mentees: Reach out to potential mentors and mentees within your organization or community. Ensure mentors have the expertise and willingness to commit to the program.
    5. Training and orientation: Provide training and orientation sessions for mentors and mentees. This should cover program expectations, communication guidelines, and relevant skills or knowledge.
    6. Pair mentors and mentees: Carefully match them based on their goals, needs, and compatibility. Consider factors such as experience, industry, and personality.
    7. Set SMART goals: Encourage mentors and mentees to set specific, measurable, achievable, relevant, and time-bound (SMART) goals for their mentorship relationships.
    8. Track progress: Regularly check in with both mentors and mentees. Establish checkpoints where both parties can report their progress or ask for assistance.
    9. Iterate: Once you’ve established your program, collect participant feedback and use it to adjust future rounds of mentorships.

    Mentorship programs are incredible tools to engage your staff. Not only do they offer growth opportunities for each participant, but they are a great way to showcase your investment in your team. Employees who feel valued and supported tend to report higher levels of job satisfaction and are more likely to stay with your organization, contributing to higher retention rates.
    All in all, mentorship programs can be a valuable addition to your employee investment strategy.

    How GMS Can Help

    Between ongoing training and employee recruitment services, finding, hiring, and developing the right people for your organization takes time and effort. Professional employer organizations (PEOs) like GMS give you access to the tools and resources necessary to take on these responsibilities while improving your overall recruiting, hiring, and training efforts.

    Our learning management system is a web-based platform that can implement and monitor a learning process. Employee education is a tremendous opportunity for businesses trying to onboard new hires, tap into their workers’ potential, and support their teams. A learning management system allows employers to streamline and optimize the education process.

    Of course, it takes more than just software to maximize your business’ education efforts. Partnering with a PEO gives businesses access to cutting-edge technology and expert support so that your employees are set up to succeed. Contact us today to learn more about our services!

  • In the current HR landscape, one topic that’s generating substantial buzz is pay transparency. State and local governments are increasingly pushing organizations to open up about their pay practices when posting jobs and to regularly report on these practices. However, even beyond compliance requirements, many forward-thinking organizations voluntarily embrace pay transparency as a fundamental aspect of their HR strategy.

    This shift towards transparency, while commendable, poses significant challenges, especially for large organizations with intricate pay structures. Thankfully, technology is emerging as a vital ally in this endeavor, offering a range of benefits that go beyond just ensuring compliance.

    The Moral Imperative Of Pay Equity And Transparency

    In a job market characterized by fierce competition for talent, candidates hold a significant amount of power. They are not just seeking employment; they are seeking the right fit for their skills, experience, and financial expectations. When organizations are transparent about pay ranges, they empower candidates with essential information to make informed decisions.

    From a recruitment perspective, it makes sense to be transparent about pay ranges. One of the primary benefits of pay transparency during the recruitment process is the efficiency it brings. Without clear pay information, candidates may invest time and effort in pursuing job opportunities only to discover later in the process that the compensation offered falls short of their expectations. This can result in wasted resources for both the candidate and the hiring organization.

    Candidates who have access to pay ranges upfront can quickly assess whether the salary aligns with their financial goals and expectations. As a result, candidates who are genuinely interested in the position and its compensation are more likely to apply, streamlining the recruitment process.

    Furthermore, technology enables organizations to maintain internal and external pay equity effortlessly. Technology streamlines what was once a time-consuming and manual process. However, it’s not just about the numbers; it’s about the actionable insights derived from them.

    Choosing The Right Vendor

    Selecting the right technology vendor is a critical decision. It’s essential to consider a vendor’s platform robustness and expertise in the pay equity domain. A reputable vendor offers tools for evaluating pay and opportunity gaps and provides guidance on changing legislation and best practices.

    It’s critical for business owners to have a clear understanding of the problem they want the platform to solve and what kind of HR and business knowledge they’re seeking through analytics. Involving various groups within the organization, such as legal, HR, and business leaders, can help define the vision for pay equity.

    Unlocking Pay Equity With A PEO

    Partnering with a professional employer organization (PEO) can be a game-changer in navigating the complex terrain of pay transparency and equity. PEOs are well-versed in HR best practices, compliance requirements, and cutting-edge technology solutions. At GMS, a certified PEO, we provide support in implementing transparent pay practices, from crafting fair compensation structures to leveraging advanced HR technology for real-time data insights. By partnering with GMS, businesses can streamline their HR processes and ensure that they stay ahead in the quest for pay equity, ultimately fostering a culture of transparency and fairness that attracts top talent and propels their success in the competitive business landscape. Interested in learning more? Contact us today to learn more.

  • Change is a constant in the world of taxation, and Indiana is no exception. Effective October 1st, 2023, the Indiana Department of Revenue (DOR) has made significant revisions to Departmental Notice No.1, How to Compute Withholding for State and County Income Tax. These changes affect residents and non-residents working in specific Indiana counties. Continue reading to dive into the details of these changes and the income tax rate adjustments in five Indiana counties.

    County Income Tax Rate Changes

    One of the most impactful changes introduced by the Indiana DOR pertains to the income tax rates in certain counties. These revisions aim to balance the fiscal needs of the local governments and maintain a favorable tax environment for residents and workers. Tax rates have been changed in the following Indiana counties:

    • Adams County: The income tax rate has decreased from 0.01624 to 0.016. This reduction may provide relief to taxpayers in the county.
    • Clinton County: The income tax rate has increased from 0.0245 to 0.0265. This change may require residents and non-residents working or residing in Clinton County to review their tax planning strategies.
    • Dearborn County: Dearborn County has also seen an increase in its income tax rate from 0.012 to 0.014.
    • Henry County: The income tax rate in Henry County has increased slightly, from 0.017 to 0.018. While the change is modest, it may impact individuals in the long run.
    • Vanderburgh County: The income tax rate has risen from 0.012 to 0.0125. This increase, while small, can contribute to various local initiatives aimed at improving the quality of life in the county.

    New Tax Exemption For First-Time Qualifying Children

    Aside from the county income tax rate changes, the Indiana DOR has introduced a noteworthy tax exemption for first-time qualifying children that went into effect on September 15th, 2023. This exemption aims to provide relief to growing families. It aligns with Indiana’s commitment to family support and financial well-being. It’s crucial for eligible families to explore the details of this exemption to ensure they can take full advantage of its benefits.

    Navigating These Changes With A PEO

    As October 1st, 2023, approaches, Indiana businesses need to be proactive in understanding and implementing these county income tax rates affecting residents and non-residents working within these counties. While some areas will see tax rate decreases, others will experience slight increases, which can impact your employees and your bottom line.

    This is where a professional employer organization (PEO) like GMS can play a pivotal role in helping your business navigate these tax changes effectively. The following is how we can help your business:

    • Expertise in tax compliance: Our experts have a deep understanding of tax regulations and can ensure that your business complies with the latest tax laws. We help you adjust your payroll and withholding processes to accommodate the changing tax rates.
    • Timely updates: We stay up-to-date with regulatory changes, such as the new tax exemption for first-time qualifying children introduced early this month. Our experts ensure your business takes advantage of these exemptions, reducing your overall tax liability.
    • Streamlined payroll management: With changes in tax rates, your payroll calculations may become more complex. PEOs have robust payroll systems that can handle these changes seamlessly, reducing the administrative burden on your HR and finance teams.
    • Cost control: We help you effectively manage your labor costs and consider the impact of tax rate changes by providing you with valuable insights into workforce optimization and compensation strategies.

    While this proactive approach will help you navigate the changes, it also enables your business to thrive in Indiana’s ever-changing business landscape. Contact us today to learn more.

  • In a move to support freelance workers, Illinois recently enacted the Freelance Worker Protection Act (FWPA), a comprehensive piece of legislation set to take effect on July 1st, 2024. This landmark law ushers in a new era of protection and fairness for freelance professionals in the state.

    Defining Freelance Workers

    The FWPA sets clear criteria for freelance workers, defining them as “natural persons” hired as independent contractors by non-governmental entities, whether in Illinois or for entities located in Illinois, with a minimum payment of $500 (either in a single contract or the aggregate of multiple contracts within a 120-day period). The definition excludes traditional employees and individuals engaged by construction contractors or subcontractors.

    A New Standard: Written Contracts

    One of the most significant aspects of the FWPA is its requirement for written contracts between freelance workers and contracting entities. These contracts must contain essential details, including:

    1. Contact information for both parties, along with the hiring party’s mailing address
    2. An itemized list of products and services provided, including their value and the compensation rate and method
    3. The due date for payment, which cannot exceed 30 days after services or products are provided
    4. The date by which the freelance worker must submit this list if the hiring party demands a list of services for timely compensation 

    The Illinois Department of Labor (IDOL) will provide model contracts for public use at no cost to make compliance easier. Contracting entities must provide a copy of the written contract to the freelance worker and retain it for at least two years, making it available to the IDOL upon request.

    Prohibitions To Ensure Fairness

    Once freelance work commences, the FWPA imposes several crucial prohibitions, including:

    • No conditioning of payment: Hiring parties are forbidden from linking timely payment to the freelance worker’s acceptance of lower compensation than initially agreed upon. 
    • Protection from retaliation: The FWPA also shields freelance workers from any action by hiring parties designed to penalize or deter them from exercising their rights under the law. This encompasses threats, intimidation, discipline, harassment, discrimination, or retaliation. 

    Enforcement And Remedies

    The IDOL will enforce the FWPA, offering freelance workers two avenues for alternatives:

    1. Administrative complaints: Freelance workers can file administrative complaints with the IDOL within two years of the final compensation’s due date.
    2. Civil actions: Alternatively, freelance workers may initiate civil actions without first exhausting administrative remedies. Upon receiving a complaint, the IDOL will conduct an investigation, and a hiring party’s failure to timely respond will create a presumption of liability in any subsequent civil action.

    Penalties and damages for violations depend on the nature of the infraction:

    • Failure to timely pay: Freelance workers can claim double the underpaid amount, along with attorney’s fees and costs
    • Lack of written contract: Violations of the written contract requirement will result in a statutory damage award equivalent to the greater of $500 of the contract’s value
    • Discrimination violations: Actions violating discrimination prohibitions will lead to the recovery of the contract’s value for each offense, associated costs, and attorney’s fees.

    The Role Of The Illinois Attorney General

    Furthermore, the Illinois attorney general can be crucial in enforcing the FWPA. They may initiate or intervene in civil actions, seeking civil penalties not exceeding $5,000 for each violation or $10,000 for each repeat violation within five years. In addition, the attorney can seek monetary damages for the state, restitution, and various forms of equitable relief, including injunctions and temporary restraining orders.

    Ultimately, the Freelance Worker Protection Act indicates a new era of fairness and security for freelance workers in Illinois. With written contracts, prohibitions against unfair practices, and robust enforcement mechanisms, this legislation empowers freelancers to confidently pursue their careers while ensuring they receive fair compensation.

    Unlocking Your Business’s Potential With A PEO In Illinois

    Illinois’ Freelance Worker Protection Act (FWPA) changes how businesses engage with freelance talent. However, the transition to compliance should not be intimidating. Partnering with a professional employer organization (PEO) in Illinois can be your key to success. A PEO like GMS not only understands the intricacies of the FWPA but also streamlines your workforce management. They offer expert guidance in creating compliant contracts, ensuring timely payments, and protecting your business from potential penalties. Allow us to take on the administrative burdens while you focus on growing your business. Contact us today.

  • In a world marked by economic uncertainties, small business owners need to be attuned to their employees’ concerns and needs more than ever. As you gear up for the 2023 benefits open enrollment season, Voya Financial, a retirement, investment, and insurance company, released its consumer research survey, unveiling crucial insights that can empower you to make informed decisions.

    Inflation Concerns: A Growing Worry

    The shadow of inflation continues to loom over working Americans across the nation. Voya’s research highlights that 79% of working Americans are apprehensive that their workplace benefits will become more expensive during this open enrollment season due to inflation. This represents a significant increase from the 66% recorded in June of 2022 when inflation was at its peak.

    As a small business owner, this rise in inflation-related concerns should serve as a call to action. It’s time to consider benefits packages that help your employees navigate the financial strain caused by inflation, ensuring that their hard-earned money goes further.

    The Intersection Of Finances And Mental Health

    Voya’s research underscores the deep connection between financial stability and mental well-being. 57% of Americans surveyed agree that financial stability directly impacts their mental health. This revelation places mental health at the forefront of your employees’ concerns, particularly as they approach this year’s open enrollment season.

    In addition, the modern workforce is increasingly vocal about their expectations regarding mental health support. 55% of employed individuals believe that their employer is responsible for ensuring their mental and emotional well-being. This sentiment becomes even more apparent when 48% express their willingness to invest more in workplace benefits that offer enhanced mental health support and resources.

    Crafting Comprehensive Benefits Packages

    Traditional benefits such as medical and dental vision remain essential; however, Voya’s research illuminates the importance of evolving your benefits package. Your employees now expect a holistic approach that addresses financial and mental health needs. Employees are willing to commit to employers who offer mental health benefits, with half of employed Americans indicating they’re more likely to stay with their current employer if these resources are available.

    One positive development observed in today’s environment is that employees are becoming more thoughtful about their benefit selections, given the overarching financial concerns. 79% of employed individuals express interest in receiving support to maximize their workplace benefit dollars across retirement savings, health savings accounts (HSAs), health care insurance, and voluntary benefits.

    Prioritizing Financial And Mental Well-Being

    As you prepare for the 2023 benefits open enrollment season, you must address the concerns related to inflation, by offering comprehensive benefits that encompass financial and mental health needs. At GMS, a professional employer organization (PEO), we understand that the well-being of your employees is paramount, which is why we offer a comprehensive range of solutions to address your business needs. From employee assistance programs (EAPs) that provide crucial mental health support to a wide array of voluntary benefits and personalized guidance, we ensure that your workforce can make the most informed choices during open enrollment. With our expertise and commitment to your employees’ financial and mental well-being, we help your small business thrive while prioritizing what matters most – the health and happiness of your employees.

    Kristy Rittenour, GMS’ Benefits Account Specialist Manager, expressed, “Every year, GMS partners with our clients to enhance or change their benefit offerings, helping them recruit and maintain top talent. Based on mid-year utilization reporting, group size, and unique needs, GMS prepares the client in advance for their benefits renewal. An early evaluation of this information removes the guesswork and is critical to successful open enrollment.

    Contact us today to prepare yourself for the open enrollment season.

  • In a whirlwind of legislative action, Governor Kathy Hochul signed a series of groundbreaking bills that promise to reshape the state’s employment landscape and protect its citizens’ rights. From ending the practice of captive audience to categorizing wage theft as larceny and extending vital protections to interns based on gender identity and expression, these new laws are a testament to New York’s commitment to progressive change.

    Putting An End To Captive-Audience Meetings

    One of the most significant developments is the new law that ends captive audience. This law has far-reaching implications for workers’ rights and employer conduct in the state. In essence, this legislation prohibits employers from disciplining employees who refuse to attend meetings primarily designed to communicate the employer’s opinions on religious or political matters. This includes discussions about unionization, a hot-button issue in many workplaces. While the National Labor Relations Act (NLRA) once protected these meetings as employer speech, the newest New York law takes a decisive stance against the coercion of employees into attending these gatherings.

    Under the new law, it’s now unlawful for employers to refuse employment, discriminate against, or take adverse actions against individuals who decline to attend these meetings. It marks New York as the fourth state to take a stand against mandatory captive-audience meetings, with many states reevaluating the NLRA’s influence in this arena.

    Cracking Down On Wage Theft

    Another significant move by Governor Hochul and the New York Legislature is the amendment to the New York Penal Law to classify wage theft as larceny. This change was urgently needed to address the pervasive issue of employers failing to pay their workers minimum wage, overtime, or promised wage rates. The new law allows for the aggregation of these underpayments, making it easier to prosecute those who exploit their workforce.

    With this amendment in place, employers who engage in wage theft will now face criminal charges and penalties corresponding with the severity of their actions. This bold step sends a clear message that wage theft will not be tolerated in the Empire State.

    Extending Protections For Gender Identity And Expression

    New York has also taken strides to protect interns from discrimination based on gender identity or expression. Governor Hochul signed Senate Bill S7382, a bill extending the New York State Human Rights Law’s prohibitions on discrimination to cover interns. This law offers vital protections that mirror those already in place for employees.

    By including gender identity and expression as protected classes for interns, New York continues to be at the forefront of the fight for equal rights. It sends a powerful message that discrimination of any kind will not be tolerated within the state’s borders.

    Partner With A PEO

    With the prohibition of captive-audience meetings, the classification of wage theft as larceny, and the extension of protections for interns based on gender identity and expression, New York has shown its unwavering commitment to creating a fair and equitable environment. However, small businesses may find it challenging to navigate compliance and employee relations amidst these legislative changes in New York.

    This is where a professional employer organization (PEO) comes into the picture. PEOs like GMS specialize in HR management, offering expertise in navigating complex labor laws, wage compliance, and discrimination protections. By partnering with a PEO, small businesses can ensure they remain fully compliant with these new regulations while focusing on growing their business and supporting their employees. In an ever-evolving regulatory landscape, GMS provides the essential support needed to thrive in New York’s business environment. Contact us today to get started.

  • In a move that has been long-awaited by workers and advocates across New York, Governor Kathy Hochul has taken a decisive step to improve the lives of injured workers. She signed into law a bill that will not only increase the minimum weekly workers’ compensation benefit but also revolutionize the way these benefits are calculated, ensuring a fairer and more just system.

    A Boost In Workers’ Compensation Benefits

    The heart of this groundbreaking reform is the significant increase in the minimum weekly permanent and temporary partial disability benefits. As it stands, the minimum weekly benefit has remained stagnant since May 2013 at $150. However, with the signing of S1161/A2034, these benefits will see a remarkable transformation. In 2024, the minimum weekly benefit will rise to $275, providing immediate relief to workers who have long felt the weight of inadequate compensation.

    But that’s not all; the bill doesn’t stop at a one-time increase. In 2025, it will continue its upward trajectory, reaching $325 per week. These changes are not just about numbers; they’re about improving the lives of workers who depend on these benefits to make ends meet when faced with an injury.

    A Fairer And More Equitable Future

    The most transformative aspect of this reform is the indexing of minimum weekly benefits to the state’s average weekly wage, ensuring fair compensation for all injured workers. Beginning in 2026, these benefits will be linked directly to the state’s average weekly wage, the same metric used to adjust the maximum benefit.

    Under this new system, the minimum weekly benefit will be set at one-fifth of the average wage. This means that if an injured worker’s earnings fall below the threshold, they will receive full wages as compensation for their covered injury. This change is a game-changer for those who, in the past, were left with inadequate compensation due to lower incomes.

    This new law is a testament to the power of advocacy and the determination to create a more equitable society. It acknowledges the fundamental principle that every worker, regardless of their income, deserves fair compensation when faced with a work-related injury. Governor Hochul’s signature on this bill marks a historic moment for New York and a brighter future for its injured workers.

    Navigate The Future Of New York Labor Laws With GMS

    In light of these progressive changes in workers’ compensation benefits, the landscape of employment in New York is evolving rapidly. For businesses, this presents an excellent opportunity to demonstrate their commitment to their employees’ well-being while also staying compliant with the latest regulations. Partnering with a professional employer organization (PEO) like GMS is the key to confidently navigating these changes.

    PEOs offer guidance on navigating the intricacies of these new laws and provide tailored solutions to ensure your business is fully compliant. Partnering with us allows you to focus on what you do best – growing your business – while we handle the complexities of compliance, ultimately fostering a more productive, happier, and secure work environment for your employees. When you partner with us, we’ll lead the way by helping you embrace the future of workplace fairness. Contact us to learn more.

  • On September 1st, 2023, California Governor Gavin Newsom took a step toward bolstering employee rights by signing Senate Bill 699 into law. This legislation reaffirms and strengthens the state’s long-standing commitment to employee freedom in pursuing their chosen professions, trades, or businesses. The bill reiterates California’s Business and Professions Code Section 16600 and introduces new provisions that have far-reaching implications for employers and employees. Continue reading to delve into the details of SB 699 and explore the broader impact of this legislation.

    California’s Commitment To Employee Freedom

    California has long been a trailblazer in protecting the rights of its workforce. The cornerstone of this commitment is Business and Professions Code Section 16600, which boldly declares, “Every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” California courts have consistently upheld this provision, making it clear that contracts prohibiting post-employment noncompetition, nonsolicitation of customers, and nonsolicitation of employees are generally unenforceable, with only a few exceptions.

    SB 699: Strengthening Existing Protections

    While SB 699 reaffirms the existing law, it also extends the state’s protections. The following are critical aspects of the bill:

    1. Extraterritorial enforcement: SB 699 clarifies that any contract void under Section 16600 is unenforceable, regardless of where or when it was signed. This means that even if you signed a restrictive covenant outside of California or were employed elsewhere, you’re still protected by the state’s employee-friendly laws.
    2. Ban or noncompete clauses: This bill takes a firm stance against noncompete clauses and other restrictive covenants that violate Section 16600. Employers are now prohibited from entering into such contracts with employees or prospective employees.
    3. Enforcement rights for employees: One of the most significant changes brought by SB 699 is the explicit granting of enforcement rights to employees. This means that if an employer attempts to enforce a contract restricting an employee’s ability to pursue their lawful profession, trade, or business, the employee has a legal recourse to challenge it.

    Consequences For Employers

    Employers must take note of the implications of SB 699. Violations of this legislation could result in civil penalties. This means that businesses operating in California should review their existing contracts and employment practices to ensure compliance with the strengthened employee protection laws.

    The Effective Date

    SB 699 is scheduled to take effect on January 1st, 2024, with regard to the new enforcement rights it creates. This grace period allows employers and employees to adjust to the new legal landscape and ensure they comply with the law.

    How A PEO Can Be Your Small Business’s Strategic Partner

    In the midst of these changing legal landscapes, small businesses in California may find navigating the complexities of employment contracts and compliance challenging. If you’re a small business in California, have you considered partnering with a professional employer organization (PEO)? A PEO like Group Management Services (GMS) acts as a guiding light. GMS specializes in human resources, employee management, and compliance. By partnering with GMS, small businesses can access expertise that helps them stay on the right side of the law while focusing on growth and success. In this dynamic environment, where the protection of employee rights takes center stage, GMS acts as a valuable partner, ensuring that your business thrives while maintaining a steadfast commitment to the welfare of your employees. As the tides of employment law continue to shift, a PEO can be your anchor, providing stability and peace of mind for your business in California. Interested in learning more about how GMS can help your business? Get a quote from us today.