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  • Employee retention is a critical aspect of any successful organization. High employee turnover can be costly regarding financial resources and the loss of valuable talent and institutional knowledge. In today’s competitive job market, creating a work environment that attracts and retains top talent is more critical than ever.

    After you’ve finished the recruitment process and you’ve hired your employees, keeping them happy on the team is essential. In addition to the cost benefits of employment continuity, there are also morale and productivity benefits.

    What Is Employee Retention? 

    Employee retention refers to an organization’s ability to retain its employees for a significant period of time – its aptness to keep employees engaged, motivated, and committed to their goals, mission, and vision.

    Just because you hire a new employee doesn’t mean the recruitment process is over; rather, it’s time to switch your focus to retention. Retention is a holistic approach involving a comprehensive plan to create a positive work environment that not only attracts top talent but encourages them to stay.

    Why Is Employee Retention Important? 

    Employee retention is crucial because it impacts every organization’s bottom line, productivity, and overall success. Thus, it is not something you should overlook. Here are just a few of the many reasons why you need to take the time to retain your workforce:

    High employee turnover can be costly for organizations. 

    The cost of hiring and training new employees can be substantial, in fact, the average cost of employee turnover is 33% of the worker’s annual salary. Plus, the loss of valuable talent and institutional knowledge can negatively impact your business’ productivity and performance. Retaining employees can help reduce these costs and ensure you maintain a stable and experienced workforce.

    Improves employee productivity and performance. 

    Employees who feel valued and engaged are more likely to be motivated and committed to the organization’s goals, mission, and vision. This can lead to increased productivity, improved quality of work, and better customer service.

    Helps to build a positive organizational culture. 

    Employees who are rewarded and recognized for their hard work are more likely to have a positive attitude toward their work and their colleagues, fostering a more collaborative and supportive work environment.

    Improves the organization’s reputation. 

    Word of mouth continues to be one of the most authentic and influential forms of recruiting and referrals. Happy and engaged employees are more likely to speak positively about the organization to others, including potential customers and job candidates. This can attract top talent and improve your brand’s image.

    Support the organization’s long-term success. 

    Long-time employees develop a deep understanding of your culture, values, and operations. Their commitment to your business is valuable as it can lead to increased innovation, improved decision-making, and better problem-solving from your team.

    How Do You Retain Top Talent? 

    In today’s fast-paced job market, retaining top talent is crucial for any organization looking to maintain a competitive edge, and there are several strategies that can be implemented to achieve this goal. We’ve compiled a list of effective tactics worth considering to keep your employees happy and your team strong.

    Train your managers.

    The majority of the time, employees do not leave organizations—they leave managers. You may have excellent managers that can perform many functions of the job, but if they don’t know how to manage, motivate, and treat employees fairly and effectively, you will face employee dissatisfaction and turnover.

    Offer extrinsic and intrinsic rewards.

    Ensure you are offering an equitable salary and bonuses within your geographic area and industry. Additionally, benefits such as health insurance, retirement plans, and other perks, including flexible work arrangements and paid time off (PTO), should be equitable (extrinsic rewards).
    Employees don’t stay just for the pay. They also need to know that their work makes a positive difference to the goals of the company, their managers, customers, and fellow employees (intrinsic rewards).

    Consider company culture during the hiring process.

    A positive work environment is essential for employee retention. This should include promoting a culture of respect, open communication, and teamwork, as well as providing a safe and comfortable physical environment.

    While a candidate may possess all the skills necessary to perform the job, if they are not a good fit with your company culture and fellow employees, they are not a good fit for the company. Hiring them anyway will result in increased turnover.

    Promote from within.

    When employees have the opportunity to create a career path within their company, they are motivated to stay. Employees want to feel that they are growing and developing in their careers. If you pass over suitable, qualified employees for promotions or even desired lateral moves, they will leave and go to a company that recognizes and rewards their efforts.

    Give frequent feedback.

    Don’t wait until review time to give feedback. Your employees want to know how they are doing and how they can improve their performance. Give clear examples and specific tactics they can use to improve their performance. Set goals together. Engage your employees by asking how they can resolve performance issues. Don’t forget to give positive feedback to those doing a good job. Nobody wants to hear about their performance from their manager strictly when it’s negative.

    Listen to employee feedback.

    It’s essential to listen to employee feedback and take action to address their concerns. Conducting employee satisfaction surveys, holding focus groups, and providing opportunities for open communication can help identify improvement areas and demonstrate that the organization values employee input. After all, they are performing the job every day and can give you the best feedback and offer great suggestions for improvements or changes.

    Encourage executive conversations.

    Employees want to hear from executive-level management about what’s happening in the company—the good and the bad. Did you have a really good year? Let your employees know and thank them for their part in that success. Take time to share your goals for your company’s future with your employees and help them understand their role in meeting these goals. If your organization has significant changes, your employees need to hear that from you because adaptations can often cause fear and stress. You need to address these changes and alleviate your employees’ concerns.

    Recognize employee successes.

    Employees want to feel valued and appreciated. Recognizing and rewarding employees for their hard work and contributions can go a long way toward building loyalty and retaining top talent.
    Recognition does not have to be complicated. Let your employees know if they are consistently doing a great job or excelling on a particular project. Send an e-mail, write a letter. Even a high five and “great job!” from you can mean a lot. Be specific when you express your recognition. This can be incredibly influential when it comes from top management.

    Offer autonomy.

    Employees want direction from their manager but also value a certain degree of autonomy in their jobs. Employees need a clear job description, and their manager must clearly express what their expectations are from an employee for their overall performance and day-to-day responsibilities. With this clarity, employees can direct their workflow and performance without being micromanaged. Employees can take ownership of their roles and responsibility for their performance.

    Facilitate teamwork.

    People spend most of their time at work and with their fellow employees. It’s crucial to build strong, functional, well-led teams. Successful teams communicate, are respectful of other team members, and are focused and committed to their organization and to achieving goals. Good teamwork facilitates positive relationships with coworkers. It helps bond them together as they work to achieve common goals—an important factor in retaining employees.

    Offer work-life balance.

    Work-life balance is becoming increasingly important to employees, particularly younger generations. Offering flexible work arrangements, such as telecommuting and flexible schedules, can help to attract and retain employees who value work-life balance.

    Investing In Your Employees

    Your employees are the backbone of your company. When your employees are happy, it shows in their performance—and it will be one the most important factors in retaining your customers and increasing the overall profitability of your organization. Investing in employee retention strategies can create a workplace in which employees want to stay, leading to increased innovation, growth, and success.

    Trust GMS as your HR partner for the complete employee lifecycle – from hire to retirement. By outsourcing your recruiting efforts to us, our highly trained recruiters will deliver the candidates you deserve, especially for those hard-to-fill positions. Once you’ve found the perfect match and an offer has been accepted, our paperless onboarding, benefits enrollment, and learning management system will help your new hire get acclimated to your organization and their new career.

    As their career continues and they grow with your company, we’ll be there to assist with employee management and development – from handbooks to employee surveys and even performance management.

    Make no mistake, investing in your employees is not a one-and-done ordeal; it’s an ongoing effort that has a direct correlation with your attrition. We’re here for you every step of the way – contact us today to learn more about what we can do for you and your business.

  • Pay discrimination has been the source of workplace conflict for decades. However, the pressure for pay transparency has recently reached new levels. People are now aware of the disparities that exist in wages based on gender, race, and other protected classes and demand action. Employees want fair compensation for their work, and top talent flocks to companies that are transparent with their salaries and benefits to the public.

    However, in several states across the country, pay transparency is not just encouraged but mandatory. New laws and regulations require companies to share salary information upfront in job postings and prohibit employers from requesting an applicant’s salary history.

    Wage transparency is necessary for all businesses to establish employee trust, attract new talent, and benefit your business’s reputation. It’s a compliance issue employers must take seriously to avoid potential litigation.

    What Is Pay Equity?

    Pay equity is the compensation approach ensuring employees are paid fairly for their work, regardless of gender, race, ethnicity, or other protected classes. The process goes beyond removing biases related to personal factors, but includes the analysis of other employee aspects, such as education and previous work experience, to determine fair pay.

    Regulations surrounding pay equity first went into law in the early 1960s. One of the most well-known regulations is the Equal Pay Act of 1963 which prohibits pay differences between men and women who have equal work at the same business. The following year, Title VII of the Civil Rights Act of 1964 strengthened pay equity by barring pay discrimination based on race, color, and national origin.

    While legislation has made significant strides to protect workers, discrimination is still prevalent. By implementing policies within your company, you can guarantee wage equality for your employees.

    Why Does Pay Equity Matter? 

    Pay equity is crucial as it directly reflects how you treat your employees and affects their well-being. It’s a matter of fairness; employees who perform the same work should receive the same pay. Discrimination based on personal beliefs or backgrounds is simply unacceptable in the workplace.

    While fair, transparent wages should be the standard, it also benefits you as the employer as it attracts and retains top talent. Open communication between upper management and employees about pay establishes trust. Your employees are more likely to stay with a company that pays them fairly and offers opportunities for growth and advancement. A happy workforce leads to a decrease in turnover and an increase in both productivity and overall morale.

    Pay equity can be equally harmful as it is beneficial if you ignore new regulations. These laws vary from state to local government and range in severity, so you must stay current on legislation in your area. Presently, states including Colorado, Maryland, California, and New York are among the handful of states taking severe action to implement transparency measures. Some of the most popular regulations include:

    • Mandating the inclusion of minimum and maximum salary ranges in job listings 
    • Prohibiting employers from requesting an applicant’s salary history
    • Prohibiting the discrimination of applicants who request salary information or refuse to provide their salary history 
    • Requiring employers to provide the salaries of similarly positioned employees
    • Requiring the disclosure of employer benefits for each job opening 

    How Do Raises Relate To Pay Equity?

    Salaries don’t start and end after onboarding; annual bonuses and raises continuously affect wages and, therefore, must be a part of your pay equity policies. They help motivate and retain employees by providing opportunities for growth and advancement, increasing the likelihood of staying with a company.

    Equity increases would be a raise in salary after finding a discrepancy in an employee’s compensation in an effort to reconcile the issue. These can come directly from conducting a pay equity analysis which examines your current pay practices to discover any disparities.

    How To Implement Pay Equity And Raises Effectively 

    Promoting pay equity in your workplace requires a commitment to fairness and a willingness to examine your current pay practices. Implementing pay equity and raises effectively requires careful planning and communication. Here are some tips for implementing pay equity and raises effectively:

    • Conduct a pay equity analysis: You must understand where you stand before implementing pay equity. Conduct a pay equity analysis to identify any disparities in pay based on gender, race, ethnicity, or other protected classes. This analysis helps identify any areas where pay equity may be lacking and provides a roadmap for addressing these disparities. 
    • Develop a pay equity policy: Once you’ve conducted a pay equity analysis, it’s crucial to develop a pay equity policy that outlines your commitment to pay equity and how you will achieve it. When giving out raises, it’s important to communicate clearly with employees about why they are receiving a raise and how much it will be. This helps build trust and transparency with employees. 
    • Review your job descriptions: Review your job descriptions to ensure they accurately reflect the work to ensure that employees who perform the same responsibilities receive equal salaries. 
    • Provide training: Train managers and employees on pay equity and how to promote it in the workplace. This helps build awareness and understanding of the importance of pay equity. 
    • Monitor and adjust: Finally, it’s important to monitor your pay equity and raise policies and adjust as needed to maintain pay equity and attract and retain top talent. 

    Steps To Perform A Pay Equity Analysis 

    Performing a pay equity analysis is significant in promoting pay equity in your workplace. It involves examining your current pay practices to identify any disparities in pay based on gender, race, ethnicity, or other protected characteristics. Here are the steps to perform a pay equity analysis:

    1. Identify the scope of the analysis: The first step in performing a pay equity analysis is to identify the size of the investigation. The scope includes identifying the job titles, departments, and locations included in the analysis. You should have a clear purpose for what you hope to identify through this process. 
    2. Research your pay policies: It’s particularly important to collect historical pay rates to help you understand how current rates were determined. All data collected must be in a way that protects employee privacy and confidentiality. 
    3. Collect data: Depending on the purpose of your audit, you collect different information. While this step is time-consuming, it’s essential as all analysis connects back to these data points. In general, this will include:
      • Job title 
      • Job level 
      • Department 
      • Education level 
      • Gender 
      • Age
      • Race
      • Hire date
      • Starting salary 
      • Current salary 
      • Overtime or bonuses
    4. Analyze the data: Using statistical analysis, you can compare the pay of employees who perform the same or comparable work, considering the factors that impact pay. Similar work can include positions across departments, and states have defined what counts as comparable work. This analysis can help identify any pay disparities based on illegal discrimination. 
    5. Identify areas for improvement: Based on the results of the analysis, you can identify areas where pay equity may be lacking and develop a plan to address these disparities. It’s important to note that pay differences between employees performing similar work can be legally justified. Earnings based on seniority, merit, or production measuring system are all legal by federal law. On the contrary, any discrepancies found on sex, race, color, religion, or national origin are illegal and must be corrected immediately. 
    6. Communicate and take action: Finally, it’s important to communicate the results of the pay equity analysis to finance or human resources to get approval on wage increases. Then you should implement the salary increase and inform the employee(s) accordingly. Moving forward, the results of the pay analysis help establish payment policies for future hiring or wage decisions. 

    Performing a pay equity analysis requires careful planning and attention to detail. By following these steps, you can identify any disparities in pay and develop a plan to address them, promoting fairness and equity in your workplace.
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    Managing Payroll With Pay Equity In Mind

    Pay equity and raises are important topics for both employees and employers. Pay equity ensures that employees are paid fairly for their work, while raises help to motivate and retain employees. Implementing pay equity and raises effectively requires careful planning and communication, but doing so effectively will help you attract and retain top talent while reducing legal risks.

    As a business owner, you have enough on your plate, and while you want the best for your employees, you don’t always have the time. By partnering with a professional employer organization (PEO), we help you with all your HR needs, from recruiting a qualified workforce to ensuring fair compensation for your employees.

    At GMS, we manage the time-consuming task of payroll, so you have one less thing to worry about, and your employees will remain motivated knowing their employer cares about them. Instead of spending your time on administrative tasks, pass them off to us. We offer an extensive range of services, including:

    • Ensuring your business stays compliant with new regulations 
    • Developing an equitable pay structure 
    • Writing job descriptions
    • Conducting competitive pay analyses 

    Additionally, our advanced payroll software, GMS Connect, streamlines the payroll process to simplify timekeeping and give users access on the go. Contact us today to learn more about how our payroll services benefit both you and your team.

  • California legislators are at it again! Education has long been the key to personal growth and professional success. However, the soaring costs of higher education often pose a significant hurdle for individuals and employers. Recognizing the importance of fostering a skilled workforce and promoting lifelong learning, California has put forth a new bill that could revolutionize the landscape of employer-sponsored education benefits.

    The proposed legislation, AB 509, aims to grant employee tax deductions for tuition benefits, paving the way for a more prosperous and educated workforce. It would allow employees to deduct up to $5,250 from their state income taxes for educational assistance provided by their employers. The tax deduction would apply to any payment made by an employer on or after January 1st, 2024, and before January 1st, 2026, for a qualified education loan incurred by the employee for their continued education.

    Qualified education loans include all federal student loans and many private student loans. It’s a loan you took out solely to pay qualified higher education expenses that were:

    • For you, your spouse, or a person who was your dependent when you took out the loan 
    • For education provided during an academic period for an eligible student 
    • Pair or incurred within a reasonable period of time before or after you took out the loan 

    This bill would be beneficial for both the employer and employees. Let’s take a deeper look into what that means. 

    Affordability Breeds A Learning Culture

    California, known for its vibrant economy and diverse industries, has always been at the forefront of innovation. However, the rising education costs have become a significant barrier to entry for many individuals seeking to upskill or pursue advanced degrees. By granting employee tax deductions for tuition benefits, this bill aims to make education more accessible and affordable, encouraging a culture of continuous learning. Employees will now have the chance to further their education without the burden of tuition expenses, ultimately leading to a more knowledgeable and competitive workforce.

    Empowering Employees For Career Advancement 

    In today’s rapidly evolving job market, where skills become obsolete in the blink of an eye, professional growth and development are paramount. The proposed tax deduction for tuition benefits will empower employees to:

    • Pursue higher education
    • Acquire new skills
    • Expand their knowledge base 

    This, in turn, will enable them to enhance their job performance, qualify for promotions, and unlock new career opportunities. With a well-educated and skilled workforce, California can bolster its position as a global leader across industries such as technology, health care, manufacturing, entertainment, construction, and more.

    Enhanced Talent Acquisition And Retention

    The bill’s impact on talent acquisition is significant. Prospective employees are increasingly drawn to organizations that prioritize growth opportunities. With the promise of tax deductions for educational pursuits, companies become more appealing to top-tier talent. By fostering a culture of continuous learning and development, employers are creating a loyal and highly competent workforce that drives long-term success.

    A Win-Win Situation For The Economy 

    The benefits of the proposed bill extend beyond individuals and businesses – it has the potential to spur economic growth. A well-educated workforce is the foundation of a prosperous economy, driving innovation, entrepreneurship, and productivity. California business owners can create a highly skilled workforce by making education more affordable and incentivizing employer investment, increasing business attraction, entrepreneurship, and sustainable economic growth.

    How A PEO Can Help 

    While we wait to hear if this bill passes, have you considered partnering with a professional employer organization (PEO)? A PEO can play a vital role in supporting the implementation of the California bill granting tax deductions for tuition benefits. Here’s how a PEO like GMS can help:

    • Expert guidance: Our experts at GMS specialize in managing various aspects of human resources, including employee benefits. We provide guidance on designing and implementing a tuition assistance program that aligns with the requirements of this bill. We take on administrative tasks for managing tuition benefits, such as program communication, enrollment, tracking, and reporting.
    • Compliance and legal support: Navigating the complex landscape of employment laws and regulations can be challenging, especially when introducing new benefits programs. We help business owners stay up to date with employment laws and can provide compliance support to ensure that tuition assistance programs align with the requirements of the California bill. Our experts offer help in navigating tax implications, eligibility criteria, documentation, and reporting requirements. This ultimately minimizes the risk of non-compliance and potential penalties.
    • Enhanced employee engagement and retention: Offering tuition reimbursement benefits demonstrates a company’s commitment to employee development and growth. This can significantly boost employee engagement, job satisfaction, and loyalty, increasing retention rates. Partnering with GMS provides you with assistance to effectively communicate the value of tuition assistance programs to employees, promoting awareness and utilization of these benefits. This, in turn, contributes to a skilled and motivated workforce that drives success within your business.

    If you’re not convinced yet, contact our HR experts today to see how else we can bring value to your business.

  • As a small business owner in Ohio, you understand the importance of a well-functioning workforce for the success of your business. Your employees are the backbone of your business operations, ensuring your daily tasks run smoothly and the overall growth of your business. Running a small business comes with numerous responsibilities, one being properly navigating workers’ compensation. Though insurance programs aim to protect employees in case of work-related injuries or illnesses, what if there was an invisible threat within your business, silently draining your resources and jeopardizing your hard-earned success? If you’re unfamiliar, an alarming issue plagues businesses, especially in Ohio – workers’ compensation fraud.

    Detecting warning signs of workers’ compensation fraud is crucial for small business owners in Ohio to safeguard their interests and maintain a fair and safe work environment. Continue reading to explore critical indicators that can help you identify potential fraud.

    What Is Workers’ Compensation Fraud? 

    Let’s start with the basics – what is workers’ compensation fraud? Workers’ compensation fraud occurs when someone willfully makes a false statement or conceals information to receive workers’ compensation benefits or prevents an individual from receiving benefits to which they might be entitled. It’s more than just an employee exaggerating their medical condition or working while supposedly disabled. While these things occur within the workplace, employers are committing fraud by underreporting their payrolls to receive lower premiums, and health care providers are billing for services they’ve never performed. This can take various forms, ranging from exaggerated claims to staged accidents, ultimately leaving businesses burdened with inflated insurance premiums, legal situations, and a compromised work environment.

    However, states have different criteria for workers’ compensation fraud. Specifically in Ohio, an injured employee who does one of the following is considered to have committed fraud:

    • Receive workers’ compensation benefits the employee is not entitled to get
    • Enters into an argument for conspiracy to defraud the state Bureau of Worker’s Compensation or a self-insuring employer by making false claims for disability benefits
    • Makes false or misleading statements with the purpose of securing goods and services under the workers’ compensation act
    • Alters, falsifies, destroys, conceals, or removes documents necessary to establish the validity of a claim or needed to establish the nature of goods and services for which reimbursement is requested

    According to the Ohio Bureau of Workers’ Compensation, in Ohio alone, an estimated $80 to $320 million in fraudulent medical and compensation payments are made each year.

    Detecting Warning Signs Of Fraud

    According to the National Insurance Crime Bureau, one in 10 small business owners fears employees will fake an injury, and one in five owners do not know how to identify workers’ compensation scams. Understanding the warning signs to prevent these concerns and protect your business is critical. Let’s dive into these warning signs.

    Delayed reporting:

    If an employee consistently delays reporting an injury or accident, it could be a red flag. Fraudulent individuals may wait to report the incident to avoid scrutiny or make it seem like the injury occurred at work when it didn’t.

    Inconsistent descriptions:

    Employees involved in fraud may provide inconsistent or vague descriptions of the accident or injury. They might struggle to recall specific details or change their story when questioned. Inconsistencies between their statements and witness accounts or medical reports should raise suspicion.

    Having no witnesses:

    Legitimate workplace accidents often have witnesses who can support the injured employee’s account. However, employees involved in fraud may avoid involving witnesses or claim that no one else was present when the incident occurred.

    Late claims:

    Fraudulent claims often occur on Monday mornings or are reported late on Fridays. This timing is strategic, as it allows fraudsters to make it seem like the injury happened at work, even if it occurred outside of working hours or over the weekend.

    Lack of cooperation:

    Employees engaged in fraudulent activities may lack cooperation during the investigation process. They may be evasive, unresponsive, or hesitant to provide additional information. Genuine claimants are usually cooperative and willing to assist in the investigation.

    Conflicting medical reports:

    When reviewing medical reports, pay attention to any inconsistencies or discrepancies between the reported injury and the employee’s statements. Fraudulent individuals may exaggerate symptoms or provide misleading information supporting fraudulent claims.

    History of suspicious claims:

    Keep track of employees with a history of suspicious or frequent workers’ compensation claims. If an employee repeatedly files claims for minor incidents or has a high number of claims compared to their peers, it could indicate potential fraud.

    Lifestyle inconsistencies:

    Be mindful of any lifestyle inconsistencies or activities contradicting the claimed injury’s severity. For instance, an employee with a severe back injury claiming complete disability but regularly engaging in physically demanding activities outside of work raises suspicion. “It’s important for employers to know who their employees are and participate in good hiring practices. Knowing what your employees do for extracurricular activities (sports, groups, personal circumstances, and more) can always help investigate a claim,” emphasized Dani Terry, GMS’ Workers’ Compensation Claims Specialist Manager.

    Remember, it’s crucial to approach these warning signs with care and conduct a thorough investigation before making any conclusions. If you suspect workers’ compensation fraud, consult legal professionals and work closely with your insurance provider to gather the necessary evidence.

    Combatting Workers’ Compensation Fraud With A PEO

    Being aware of these warning signs of workers’ compensation fraud is essential for small business owners in Ohio to protect their businesses and maintain a fair working environment. By diligently recognizing these red flags, you can proactively address potential fraud, safeguard your employees’ well-being, and maintain the integrity of your workers’ compensation program.

    However, navigating the complexities of workers’ compensation can be challenging for small businesses. Fortunately, a professional employer organization (PEO) like GMS can help! We provide small business owners with comprehensive HR solutions, including workers’ compensation administration, claims management, and fraud prevention strategies. Partnering with us allows business owners to tap into expert knowledge, gain access to resources, and ensure compliance with Ohio Workers’ compensation regulations. You can finally focus on growing your business while having peace of mind knowing that your workers’ compensation program is effectively managed and protected against fraud.

    Dani added, “At GMS, we take the concerns from our employers very seriously regarding employees’ potentially filing a fraudulent workers’ compensation claim. Some of the immediate red flags that are common when dealing with a potential fraudulent case include the following:

    • Unwillingness to cooperate with employers and/or answer questions related to the circumstances surrounding the injury
    • Doctor shopping when they are released to return to work
    • Copycat claims
    • Filing a claim after paid time off (PTO) is denied
    • Alleged injury occurred right after clocking in on Monday morning

    If you ever feel that a situation is not right, do not be afraid to speak up. When you partner with GMS, you have a designated claims specialist that is there to help you.”

    GMS experts are here to protect your business. Contact us today to learn more!

  • In a groundbreaking ruling, a federal court jury has recently ordered East Penn Manufacturing Co. to pay a staggering $22.25 million for violating wage and hour regulations. This decision marks the highest recorded jury verdict under the Fair Labor Standards Act (FLSA), declared by the U.S. Department of Labor (DOL). The implications of this case are significant, as the DOL now seeks not only to secure an equal amount in liquidated damages for the affected workers but also to obtain a court order mandating future compliance with the FLSA by the manufacturer.

    East Penn Manufacturing Co.

    Diving into the backstory, East Penn Manufacturing Co. was founded in 1946 by DeLight Jr., an Air Force Veteran who embarked on a battery business venture with his father. During the war, battery materials were scarce, but the demand for rebuilt batteries was high, particularly among returning soldiers in need of functioning vehicles.

    Fast forward seven decades, and East Penn has evolved from a modest one-room shop with five automotive battery offerings to a global powerhouse. Today, the company boasts an impressive workforce with over 10,500 full-time employees, 515 product designs, worldwide operations, and hundreds of awards for industry excellence.

    The Allegations 

    However, a troubling legal battle has damaged East Penn’s success story. The DOL has filed a lawsuit against the company, alleging that it failed to compensate 11,400 employees who worked at its battery plants in Lyons Station, Pennsylvania, between November 2014 and September 2021. The root of the issue revolves around East Penn’s failure to pay workers for the time spent putting on protective clothing before their shifts and the time spent undressing and showering after their shifts. According to the DOL’s claims, instead of paying employees based on their actual clock-in and clock-out times, the company manipulated the timesheets to only account for scheduled shifts, resulting in withheld wages.

    Timekeeping Systems And Discrepancies 

    East Penn had two timekeeping systems in place to track employee attendance. The first system, the time and attendance system, recorded when employees swiped in and out of their shifts. The second system, the Human Machine Interface (HMI), logged the precise moment when an employee started work on the production line. The company calculated hourly pay rates, overtime, and bonuses by utilizing the HMI data. Employees were instructed to swipe in no more than 14 minutes before the start of their shift and within 14 minutes following their shift.

    Compensation For Changing Clothes And Showering

    To account for the inherent risks associated with exposure to hazardous chemicals, East Penn granted its employees a five-minute grace period at the beginning of each shift to change into their uniforms. Similarly, they were given a 10-minute grace period to change clothes and shower at the end of their shifts. However, despite these allowances, the FLSA specifies that any activities deemed “integral and indispensable” to an employee’s principal duties must be compensable. Consequently, the DOL argued that East Penn should be obliged to pay workers for the actual time spent on these tasks at the worksite.

    How A PEO Can Be The Solution

    In the wake of high-profile cases such as East Penn Manufacturing Co.’s recent wage and hour violations, small businesses must take proactive measures to avoid similar costly mistakes. This is where a professional employer organization (PEO) such as Group Management Services (GMS) can prove invaluable. By partnering with us, small businesses gain access to comprehensive HR expertise and resources that can ensure compliance with complex employment laws and regulations.

    A PEO specializes in managing payroll, benefits administration, timekeeping, employee relations, and more, ultimately relieving businesses of these burdensome tasks. Our experts deeply understand labor laws, allowing us to help small businesses navigate potential pitfalls, implement accurate timekeeping systems, and establish proper compensation practices.

    Hannah Shoemaker, GMS’ HR Account Manager, expressed, “Partnering with GMS not only offers efficient timekeeping systems options and advanced payroll software but also the HR knowledge to keep you compliant and focusing on what you know best, your business! We start every relationship with an FLSA audit to ensure proper pay practices and classification of your workers. Then, ongoing collaboration with our hands-on HR and payroll experts reduces your liability for wage and hour errors that could cost you millions of dollars in fines or back pay.”

    By entrusting HR responsibilities to GMS, small business owners can safeguard their operations, protect their employees, and avoid the devastating consequences of wage and hour violations. Contact us today to learn more.

  • New York lawmakers have introduced a new bill, S.B. 5081, to strengthen safety measures for warehouse workers. This bill builds upon the existing Warehouse Worker Protection Act (S.B. 8922) that was passed in December 2022. The new bill requires companies with workers engaged in manual materials handling tasks to develop an injury reduction plan to minimize the risk of musculoskeletal injuries and disorders such as tendonitis, arthritis, sprains, and strains.

    This plan includes hiring a certified ergonomist to evaluate the worksite and gather input from workers. An ergonomist is a professional who studies, designs, and evaluates human work systems with the goal of optimizing the performance and safety of those systems. The bill also includes protections against retaliation to protect any worker who reports any issues. Furthermore, employers must promptly address any risk factors that have caused or could potentially cause musculoskeletal injuries and disorders.

    Partner With Us!

    If this bill that requires safety initiatives for warehouse workers to pass, a professional employer organization (PEO) like GMS can assist small business owners in a variety of ways. Our experts help you navigate complex employment laws and regulations. We will help you understand the requirements of this bill and ensure compliance with its provisions, including developing and implementing the necessary safety initiatives and injury reduction plans.

    In addition, our safety experts can conduct comprehensive risk assessments of the workplace to identify potential hazards and areas of non-compliance and implement measures to mitigate them effectively. Ultimately, we’re here to provide ongoing HR support to small business owners. We help you stay updated on any changes to laws or regulations, provide guidance on best practices for maintaining a safe workplace, and assist with resolving any safety-related issues that may arise. Contact us today to learn how we can help your business thrive.

  • Employee orientation and employee onboarding are often confused, but they serve different purposes in the hiring process. Orientation typically involves a one-time introduction to the company, while onboarding is a longer-term process that helps new hires become productive and engaged members of the team.

    Understanding the distinction between the two can enable employers to create a stronger first impression, enhance employee engagement, and better prepare new hires for long-term success.

    Key Takeaways

    • Employee orientation is a one-time introduction to the company’s policies, culture, benefits, and expectations.
    • Employee onboarding is an ongoing process that helps new hires learn their role, build relationships, and become productive team members.
    • A structured onboarding strategy can help businesses create a more positive employee experience from day one.

    What Is Employee Orientation?

    Employee orientation serves as the formal introduction to your organization, typically taking place on the employee’s first day. This process familiarizes new hires with the company, its culture, and essential workplace policies.

    Consider orientation as the foundation of the employee experience. It provides new employees with the information they need to understand how the organization operates and what they can expect in the future.

    During orientation, employers often introduce:

    • Company mission, vision, and values
    • Workplace policies and procedures
    • Benefits information
    • Company leadership and team members
    • Technology and workplace resources
    • Security and workplace access requirements

    Many businesses also use orientation as an opportunity to reinforce company culture and explain how employees contribute to broader organizational goals.

    What Is Employee Onboarding?

    While orientation introduces employees to the organization, onboarding focuses on helping them succeed in their specific role. Onboarding is a longer-term process that often extends through the employee’s first 30, 60, or 90 days and beyond.

    The purpose of onboarding is to ensure that new hires feel productive, confident, and connected to their team. This process typically involves job-specific training, clear performance expectations, regular manager check-ins, mentorship opportunities, and ongoing support.

    What Is the Biggest Difference Between Orientation and Onboarding?

    The simplest way to understand the distinction between orientation and onboarding is that orientation introduces employees to the company, while onboarding integrates them into their specific roles.

    Orientation focuses on providing broad organizational information, answering the “who,” “what,” and “why” of the business. In contrast, onboarding concentrates on the “how.” It helps employees understand how to perform their jobs, collaborate with their teams, and contribute to the company’s goals.

    Employee Orientation

    Employee orientation is generally:

    • A one-time event
    • Completed during the first day or first few days
    • Focused on company-wide information
    • Led by HR or company leadership
    • Designed to introduce culture, policies, and expectations

    Employee Onboarding

    Employee onboarding is generally:

    • An ongoing process
    • Completed over several weeks or months
    • Focused on role-specific training and integration
    • Led by managers and team leaders
    • Designed to improve productivity and employee success

    Together, these processes create a more complete experience for new hires and help establish a strong foundation for future performance.

    Why Are Orientation and Onboarding Important?

    A positive employee experience often begins even before a new hire completes their first task. Orientation helps employees feel welcomed and informed, while onboarding equips them with the knowledge, skills, and confidence necessary to contribute effectively. When these processes are integrated, organizations are better positioned to enhance employee engagement and retention.

    Organizations that intentionally invest in orientation and onboarding often benefit from:

    • Faster time to productivity
    • Greater employee engagement
    • Improved communication
    • Stronger workplace culture
    • Better long-term retention

    How Can Employers Improve Their Orientation and Onboarding Programs?

    Developing a successful onboarding experience involves more than just completing paperwork and providing training materials. Employers should aim to create a clear and consistent environment that helps employees feel supported from their first day. Some best practices include:

    Spread Learning Over Time

    New employees are often introduced to a significant amount of information in a short period. Breaking training into manageable steps can improve information retention and reduce overwhelm.

    Communicate Expectations Clearly

    Employees are more likely to succeed when they understand role expectations, performance goals, and available resources.

    Encourage Feedback

    Onboarding should be a two-way conversation. Gathering employee feedback can help organizations improve future orientation and onboarding experiences.

    Prepare Employees Before Day One

    Providing information about the first day, including schedules, parking details, technology requirements, and points of contact, can help reduce anxiety and create a smoother transition.

    Build Better Employee Experiences With GMS

    Employee orientation and onboarding are crucial for setting up new hires for success. Orientation introduces employees to the organization, while onboarding engages them and helps them become productive members of the team.

    When businesses invest in both processes, they often enhance employee experiences, improve retention, and boost productivity.

    GMS assists employers in streamlining recruitment, onboarding, employee training, and workforce development through comprehensive HR solutions and learning management tools. Whether you are developing a new onboarding program or seeking to enhance an existing one, our experts can help create a strategy that promotes long-term employee success.

    Are you ready to strengthen your onboarding process? Contact GMS today to learn how our HR experts can help you create a better experience for every new hire.

    Frequently Asked Questions

    Is employee orientation the same as onboarding?
    No. Orientation is typically a one-time event focused on introducing new hires to the organization. Onboarding is a longer-term process that helps employees learn their role and integrate into the company.
    Who is responsible for onboarding?
    Successful onboarding typically involves HR, managers, team leaders, and coworkers. While HR often coordinates the process, ongoing employee development and integration are usually manager-driven.
    Why is onboarding important for retention?
    Employees who receive proper onboarding often feel more confident, connected, and prepared for success. A positive onboarding experience can help improve employee engagement and reduce turnover.

  • The Internal Revenue Service (IRS) has responded to rising inflation by raising the contribution limits for health savings accounts (HSA). An HSA is a savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. Starting in 2024, individuals can allocate more funds towards their HSAs, offering a powerful way to save for medical expenses.

    What To Expect In 2024

    In 2024, the annual HSA contribution limit for self-only coverage will surge to $4,150, representing a remarkable seven percent increase from 2023. This means you can set aside even more money on a pre-tax basis, significantly boosting your health care savings potential. But that’s not all; for those with family coverage, the HSA contribution limit is increasing to $8,300 in 2024, a substantial rise from the previous limit of $7,750. This adjustment allows families to allocate more funds towards their health care expenses, ensuring comprehensive coverage and financial peace of mind. Additionally, individuals aged 55 and older can take advantage of being able to contribute an extra $1,000 to their HSAs.

    High-deductible health plans (HDHPs) are also subject to updates in 2024, ensuring a balance between affordability and comprehensive coverage. An HDHP is a plan with a higher deductible than a traditional insurance plan. The monthly premium is usually lower, but you pay more health care costs yourself before the insurance company starts to pay its share (your deductible). In 2024, HDHPs must have a minimum deductible of $1,600 for self-only coverage and $3,200 for family coverage. The annual out-of-pocket expense maximum cannot exceed $8,050 for self-only coverage in 2024 or $16,100 for family coverage, representing significant increases.

    What Employers Should Know

    Apart from individual benefits, the IRS has introduced updates that benefit employers as well. The IRS announced that in 2024, it will also raise the maximum amount employers may contribute to an excepted-benefit health reimbursement arrangement (HRA) to $2,100. An HRA is an account an employer can set up to reimburse employees for out-of-pocket health care expenses. This means you can provide your employees with even more financial support for their out-of-pocket health care costs. Show your team you care by offering enhanced benefits that truly make a difference.

    Boost Your Benefits For Your Team

    As we recognize the IRS’s boosts to HSA and HDHP limits in 2024, it’s important to remember that navigating these changes can be complex. As a business owner that has made it through unprecedented times, such as the COVID-19 pandemic and the intense labor market, you understand how important it is to stay ahead of the curve. This is where a professional employer organization (PEO) like GMS enters the picture to become a small business owner’s best friend.

    When you partner with GMS, you gain access to our comprehensive group health coverage plan that ensures compliance with the latest regulations and provides cost-effective solutions tailored to your unique needs. GMS represents more than 45,000 employees, which allows us to help small businesses purchase group health insurance for an average of a 24% lower cost for employee premiums and 21% lower for family premiums than the U.S. average.

    Allow us to guide you through these transformative times, empowering you to focus on what you do best – growing your business while securing the well-being of your employees. With GMS by your side, you can confidently embrace the future of health care and thrive in an ever-changing business landscape. Interested in learning more? Contact us today.

  • In the ever-changing landscape of employment regulations, one critical aspect that demands the utmost attention is I-9 compliance. The U.S. Immigration and Customs Enforcement (ICE) announced important changes regarding I-9 compliance flexibility. As of July 31st, 2023, employers will no longer have the option for remote verification of I-9 documents. Instead, employers will be required to inspect these documents physically.

    With a deadline of August 30th, 2023, looming, employers need to understand the implications and take proactive measures to ensure compliance. Let’s explore the significance of I-9 compliance, highlight the upcoming changes, and provide guidance on how employers can smoothly navigate this transition.

    The Importance Of I-9 Compliance

    Before we dive into the forthcoming changes, let’s reiterate the significance of I-9 compliance. The I-9 form, also known as the Employment Eligibility Verification form, serves as an essential tool for employers to confirm their employees’ identity and work eligibility. Compliance with I-9 requirements is not just a legal obligation, but it also helps businesses adhere to immigration laws, protect against unauthorized employment, and promote a fair and level playing field for all employees. Sara Worthing, PHR, GMS’ Senior HR Account Manager, added, “I-9 compliance is important now more than ever. The I-9 form helps employees’ identities and confirms their employment authorization.”

    Why Is I-9 Flexibility Expiring?

    The decision to end the I-9 compliance flexibility, which allowed remote verification of documents, stemmed from the gradual return to pre-pandemic work environments. The temporary relaxation measures were implemented to accommodate remote work arrangements during the COVID-19 pandemic. However, with the circumstances improving and businesses resuming on-site operations, ICE has deemed it appropriate to reinstate the physical inspection requirement.

    Adapting To The Change

    Employers must be aware of the August 30th, 2023, deadline and make necessary preparations to ensure a smooth transition. The following are a variety of practical steps to help employers navigate the change effectively:

    Internal communication and training: It’s essential to ensure that all relevant personnel, including HR departments and hiring managers, are informed about the upcoming change. Consider conducting training sessions to familiarize them with the revised procedures and emphasize the importance of meticulous document inspection.

    Review and update policies: Take this opportunity to review your existing I-9 policies and procedures. Update them to reflect the change in requirements and communicate any modifications to employees. Having clear and concise policies will facilitate a seamless transition and mitigate potential compliance risks.

    Establish an efficient record-keeping system: For I-9 compliance, maintaining accurate and organized records is critical. Consider implementing an electronic I-9 system that integrates with your existing HR software. These systems can streamline document management, automate reminders for re-verification, and enhance record-keeping accuracy.

    Conduct internal audits: Perform internal audits to ensure existing I-9 forms are completed correctly, properly stored, and comply with all legal requirements. Identify any errors in a timely manner. Regular self-audits promote ongoing compliance and help mitigate potential penalties in case of government audits.

    Seek professional assistance if needed: Navigating the complexities of I-9 compliance can be challenging. Consider seeking guidance from professional compliance services such as a professional employer organization (PEO) to ensure your organization remains in full compliance with the law.

    Leveraging The Expertise Of A PEO

    The expiration of I-9 compliance flexibility on July 31st, 2023, and the subsequent requirement for physical inspection of documents present a significant challenge for employers. However, there is no need to face this transition alone. Partnering with a PEO can be a game-changer in navigating the complexities of I-9 compliance. A PEO can provide expertise in immigration laws, maintain record-keeping systems, and offer guidance on policy updates and internal audits. By leveraging the knowledge and support of a PEO, employers can ensure a seamless transition, mitigate compliance risks, and focus on their core business operations. Sara further explained, “At GMS, our team is constantly working to ensure our clients are compliant with the help of E-Verify. GMS handles this process from beginning to end, which allows our clients to worry about one less thing.”

    As the deadline approaches, take proactive steps and consider utilizing the services of a trusted PEO like GMS to navigate the changing landscape of I-9 compliance with confidence. Get a quote from us today!

  • Tennessee’s Governor signed HB 1181, the Tennessee Information Protection Act (TIPA), into law on May 11th, 2023. This bill established a framework for controlling and processing consumers’ personal data in the state. It makes Tennessee the eighth state to pass consumer privacy statutes alongside the following states:

    • California 
    • Colorado 
    • Connecticut 
    • Indiana 
    • Iowa
    • Utah 
    • Virginia 

    Legislation

    Let’s unravel the details of this groundbreaking legislation that puts consumers first!

    Unraveling The Key Provisions Of This Bill

    TIPA is a game-changer for anyone doing business in the state of Tennessee. If you control or process personal data for at least 100,000 Tennessee residents, or if you handle personal data for at least 25,000 residents and derive 50% of gross revenue from the sale of personal data, this law is for you.

    But hold on; it’s not just about businesses. TIPA is a big win for consumers as well. Picture this: you have access to your personal data, the power to make corrections, request deletion, and even access your data in a portable format. In addition, you can request what categories of your information are being sold or disclosed. For those that are not a fan of your data being pushed around, you can opt out of the sale of your data altogether.

    Now, let’s talk about responsibilities. If you’re a data controller under TIPA, listen up. You must respond to consumers’ requests within 45 days (unless qualifying circumstances arise) and provide the requested info for free, not once but twice a year for each consumer. If a consumer doesn’t like your response, they’ve got an appeals process on their side. But wait, there’s more! TIPA puts serious constraints on how you handle data. It’s all about collecting what you truly need, keeping it secure, and never processing it for purposes that don’t align with the specified goal. Steer clear of any discrimination issues or unauthorized access; sensitive data needs explicit consumer consent. Let’s not forget that you must ensure that contracts and agreements do not waive or limit consumers’ data rights. Privacy notices must be clear as day, leaving no room for confusion.

    What More? 

    Here’s the kicker: the state attorney general means business. TIPA empowers them to enforce the law, handing out penalties of up to $15,000 per violation and even treble damages for those who knowingly and willfully break the law. If a TIPA violation has been discovered, the attorney general gives the data controller written notice and will have 60 days to fix the alleged violation before the attorney general can file a suit.

    If you’re a business owner in Tennessee, mark your calendars for July 1st, 2024. Now the question is, what will you do to stay ahead of the game? How will you prepare yourself and your business for these groundbreaking changes that protect consumer privacy?

    Stay Ahead Of The Curve – Partner With A PEO

    It’s time to take action and ensure you’re on the right side of the law. You might be wondering how to navigate this new law effectively. Luckily, there’s a solution that can make your journey smoother and ensure compliance from day one – partner with a professional employer organization (PEO) like GMS.

    When you partner with GMS, we provide the expertise, resources, and support needed to implement TIPA seamlessly. From handling data requests and privacy notices to establishing robust data security measures, we have your back. Don’t wait until July 1st, 2024 – start preparing today by considering a PEO partnership and proactively safeguarding your business and customers’ privacy. Together, let’s pave the way for a secure and successful future. Get in touch with us today.