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  • On February 22nd, 2023, the U.S. Supreme Court ruled in favor of an oil rig worker for overtime exemptions under the Fair Labor Standards Act (FLSA). Under the Helix Energy Solutions Group Inc. v. Hewitt case, the Supreme Court ruled that to be exempt from the requirement of being paid overtime after working over 40 hours a week, an employer must pay the employee their full salary in any week in which they perform work. In simpler terms, the recent ruling declared that highly compensated employees could be eligible for overtime pay if they are paid on a daily basis. If the employer does not follow that, the employee is entitled to overtime compensation regardless of their job duties or position.

    Understanding The Court Case

    During the Helix Energy Solutions Group Inc. v. Hewitt court case, the Supreme Court was asked whether an overtime exemption under the FLSA applied to non-salaried high-earning employees. The distinction, in this case, is whether a high-earning employee should be compensated on a salary basis when his paycheck is based on a daily rate. The Supreme Court declared the long-standing FLSA and Department of Labor regulations to be upheld and considered a salaried, overtime-exempt employee, the employee must receive his full weekly salary in any week in which the employee performs any work.

    What You Should Know As A Business Owner

    The new ruling makes it essential for business owners to implement the criteria within their businesses properly. If you don’t, you could face hefty penalties. Let’s break down what the ruling says and what you should know.

    • Employees are exempt from overtime under the FLSA if they earn at least $107,432 per year on a salary basis (now at least $684 per week) and perform executive, administrative, professional, or outside sales work
    • The predetermined salary level cannot vary based on the quality or quantity of work
    • Business owners may use nondiscretionary bonuses, incentive payments, and commissions to meet up to 10% of the standard level salary
    • To be considered an executive, the employee must manage the business, direct the work of at least two full-time employees, and have the authority to hire or fire employees
    • An administrative employee is considered an individual who performs office or nonmanual work directly related to management or general business operations
    • A professional employee is defined as one who must do work that requires advanced knowledge, is predominantly intellectual in character, and includes exercising discretion and judgment

    Additional information can be found here.

    Additional Measures To Take

    Everchanging rules and regulations is a constant battle you face as a business owner. You didn’t start your business to become a lawyer or one who understands and implements every single law associated with your business. That’s where Group Management Services (GMS) comes in to help you. Our team of HR experts ensures you remain compliant with every new law that can affect your business. Whether it’s creating a job offer that clearly states their compensation and overtime pay or working with you to implement these new laws and regulations, we’re here to help. Ready to alleviate some of the weight you’re carrying? Contact us today.

  • The U.S. Equal Employment Opportunity Commission (EEOC) published a proposed strategic enforcement plan for fiscal years 2023-2027 on January 10th, 2023. This is important for business owners as you will most likely see a shift in enforcement by the EEOC with a larger budget, the possibility of new leadership, and revised strategic priorities. In 2022, there were six strategic priorities which included the following:

    • Eliminating barriers in recruitment and hiring
    • Preventing systemic harassment
    • Protecting vulnerable workers
    • Ensuring equal pay protection for all workers
    • Preserving access to the legal system
    • Addressing selected emerging and developing issues 

    The Strategic Enforcement Plan (SEP)

    The latest strategic enforcement plan (SEP) would modify the 2022 enforcement priorities if approved by the commission by:

    • Expanding the category of vulnerable workers to include individuals with intellectual and developmental disabilities, individuals with arrest or conviction records, LGBTQI+ individuals, elderly employees, temporary workers, individuals employed in low-wage jobs, and workers with limited literacy or English proficiency
    • Enhances the recruitment and hiring priority to include limiting access to on-the-job training, pre-apprenticeship programs, temp-to-hire positions, internships, or other job training or advancement opportunities based on protected status
    • Recognizes employers’ increasing use of artificial intelligence (AI) to target job advertisements, recruit applicants, and make or assist in hiring decisions
    • Updates the emerging and developing issues priority to include employment discrimination associated with the COVID-19 pandemic and additional threats to public health, violations of the recently enacted Pregnant Workers Fairness Act, and technology-related employment discrimination
    • Focuses on overly broad waivers, releases, non-disclosure agreements, and non-disparagement agreements

    The SEP aims to do more to combat employment discrimination, promote inclusive workplaces, and respond to the national call for racial and economic justice. It ultimately will help guide the EEOC’s work through all the agency’s activities, including outreach, public education, technical assistance, enforcement, and litigation.

    Stay Proactive, Partner With GMS

    Alongside these changes, the EEOC will most likely continue to place more scrutiny on employers’ use of technology and AI in recruiting, screening, hiring, and performance reviews. As a business owner, there are many laws and regulations you must comply with. However, mistakes are bound to happen. It’s hard to manage your daily duties as a business owner, let alone worry about the appropriate ways to recruit and hire employees. Fortunately, when you partner with GMS, our HR experts take on the administrative burdens of hiring and recruiting employees for you. We create a job description that won’t infringe on the use of AI and ensure you’re creating an inclusive workplace. Contact us today to learn more.

  • As a business owner, it’s essential that you create a safe work environment for your employees. A safe and healthy workplace protects your workers from injury and illness while also doing the following: 

    • Lowers injury/illness costs
    • Reduces absenteeism and turnover
    • Increases productivity and quality 
    • Raises employee morale

    The number of preventable work deaths increased by nine percent in 2021, totaling 4,472. In addition, there were over two million non-fatal workplace incidents in 2020. As we near the end of the first quarter of 2023, consider your efforts to prevent workplace injuries and areas that need improvement.

    An Example For Reference

    What better way to spread awareness for workplace safety than sharing a story of a company that was unfortunately faced with hefty penalties? Three workers at Wright Tool Company, a leading tool manufacturer in Barberton, Ohio, suffered injuries from unguarded machinery. These incidents triggered an Occupational Safety and Health Administration (OSHA) inspection, which led to $164,742 in proposed fines. Wright Tool Company has forged to finish the highest quality hand tools by hardworking Americans for even harder working professionals.

    The latest injury occurred on October 26th, 2022, when an employee suffered a thumb amputation when hand-feeding parts into a drill press using air-activated clamps. The other injuries occurred in December 2020 and June 2022 when both workers performed similar job duties and suffered laceration injuries. The company was cited for one willful violation of machine guarding standards, two serious, and one other-than-serious violation. On top of that, Wright Tool Company also failed to do the following:

    • Conduct hazard assessments to identify personal protective equipment needs and other requirements
    • Did not test energy control procedures at least annually
    • Did not train every employee to ensure they understood hazardous energy control procedures 
    • Enclose shafting

    What Now?

    Unfortunately, Wright Tool Company will have to pay $164,742 to OSHA for failing safety protocols. If they had taken proactive steps and improved their safety measures, these accidents could have been prevented. Partnering with a professional employer organization (PEO) like GMS will ensure that an accident similar to this won’t happen within your business. Many small business owners struggle to stay ahead of the risks associated with workers’ compensation and workplace hazards. Employers don’t need to settle for high compensation costs and issues from OSHA. When you partner with us, we simplify your administrative needs and create a culture of workplace safety, all while helping you save money. You ultimately gain a partner that enables you to take a proactive approach to address immediate issues and prevent potential problems in the future.

    Scott Lenigan, GMS’ Safety Coordinator III, expressed, “You gain a partner with a safety staff with a wealth of experience in all industries. Our services include safety program audits, workplace training, job site visits, accident and injury investigations, and help with required recordkeeping. In addition, our team has vast experience in the OSHA investigation process, being your advocate from the initial investigation to an informal conference to appeal any citations. Our team provides you with the tools to take a proactive approach to address immediate issues and prevent potential problems in the future.”

    Let’s not make the same mistakes this company made. Contact us today!

  • With the state in which the economy is, employees and employers are struggling significantly. Whether it’s keeping up with the rise in prices for necessities or the labor shortage business owners are facing, these are challenging times. Employees need the support of their manager now more than ever to overcome these obstacles we’re all facing.

    As a business owner, the head of a company, or a manager with an organization, take a minute to think about whether you bring a positive impact on your employees’ mental health. Do you check in with your team regularly? You don’t have to discuss every detail of life outside of work. However, it’s essential that you let your employees know that you’re there for them if they need someone to talk to. Effective managers check in with their direct reports’ emotional state, are nurturing and ready to help, keep track of their direct reports’ goals, and offer constructive feedback.

    The Workforce Institute at UKG surveyed 3,400 individuals across 10 countries to spotlight the critical role our jobs, leadership, and managers play in supporting mental health in and outside work. Let’s see what they discovered.

    Survey Results

    Managers impact their employees’ mental health 69% more than doctors (51%) or therapists (41%) and even the same as a spouse or a partner (69%). More than 80% of employees would rather have good mental health than a high-paying job, and two-thirds would take a pay cut for a job that provides better support for mental wellness. In addition, work stress negatively impacted 71% of employees’ home life, 64% of their well-being, and 62% of their relationships. Finally, one in three employees said their managers fail to recognize their impact on their team’s mental well-being.

    Help Your Employees

    In an effort to avoid violating the Americans with Disabilities Act, non-discrimination laws, and confidentiality laws, leaders were previously taught to avoid discussing mental health with employees. However, in recent years, that’s no longer the case. Leaders are encouraged to check in with employees who appear distracted, tired, or stressed. To model work/life balance for your team, managers should share their challenges and stress-coping strategies. Managers who openly discuss stress convey the message that they can discuss their problems without feeling stigmatized. 83% of U.S. employees suffer from work-related stress, which causes around one million workers to miss work every day. Workplace stress typically makes up a substantial amount of the general mental health crisis. This could then lead to significant drops in productivity and burned-out employees.

    Consider Partnering With GMS

    Have you considered outsourcing your HR functions to a professional employer organization (PEO) like Group Management Services (GMS)? We take on the administrative burdens you don’t have the time or expertise to manage effectively. If you have employees that are struggling with their mental health, how can you help them? An easy step to help your employees is to enhance your benefits package. We work with you to create a unique benefits package that your employees want and need. Whether it’s adding mental health benefits or simply providing you access to telemedicine, we’ve got you covered. Telemedicine gives your employees free access to physicians around the clock, allowing them to connect via phone, video, or over the internet 24/7. It’s just one of the many benefits of our group health coverage. Interested in learning more about how you can help your employees? Contact us to learn more.

  • Any private employer with 100 or more employees and federal contractors with 50 or more employees are required to file an employment information report called the EEO-1 report every year. The EEO-1 Component 1 report is a mandatory data collection of demographic workforce data, including data by race/ethnicity, sex, and job categories. As a business owner that must submit this information, you must know when you should submit it. This year, it’s slightly different than usual. The EEO-1 reporting for 2022 data is scheduled to begin in mid-July.

    More updates will be made available here.

    What You Need To Know

    Employers are asked to denote the gender identity and sexual orientation of employees. With that being said, there are challenges employers might face. The form currently does not have a box for designating nonbinary individuals. However, you can manually enter the number of workers who identify as nonbinary in the comments section. Why are employers required to fill this out? The purpose of this is the following:

    • Support enforcement actions
    • Facilitate research on employment patterns 
    • Encourage self-assessment by employers

    If you fail to comply, you may be subject to fines, back pay, corrective action, or even civil suits against employers. Federal contractors could lose their contracts if they don’t submit this information.

    Additional Steps That Need To Be Taken

    For all employers who must submit the EEO-1 reports, it’s essential that you keep track of all of this data throughout the year, so it’s accurate. You must gather all up-to-date information about your employees’ gender identity and sexual orientation. Not sure where to start? When you partner with Group Management Services, our HR experts ensure you remain compliant and stay up to date. We help you meet certain deadlines so you can focus on other areas of your business. Contact us to learn more.

  • For the most part, all industries across the world have experienced disturbances within their business operations since the COVID-19 pandemic. During the pandemic, businesses had to scale back operations because of the decrease in demand, or they were forced to furlough or lay off employees. However, plumbing and heating, ventilation, and air conditioning (HVAC) companies were some of the few that experienced a spike during the pandemic because their demand increased. Even with the increase in demand for HVAC services, they still face challenges, including a labor shortage and an aging workforce.

    Labor Shortage

    Similar to most companies, many HVAC companies are struggling to attract employees. However, this has been a challenge before the COVID-19 pandemic. Every type of business is looking to retain employees while workers are quitting their jobs at record levels. Low-interest rates, government stimulus checks, and a greater emphasis on home improvement (as many individuals were forced to stay home) drove new business for HVAC companies. The increased demand has put pressure on the existing workforce, leading to a shortage of skilled technicians. In addition, this industry is facing challenges in attracting younger workers, as many students and recent graduates are unaware of career opportunities in the blue-collar market, such as HVAC or plumbing.

    An Aging Workforce

    The aging workforce has been challenging for HVAC and plumbing contractors for almost a decade. However, the pandemic and Great Resignation heightened these challenges. Many companies’ experienced technicians are retiring, and there aren’t enough younger workers entering the industry to replace them. The Air Conditioning Contractors of America estimates that the average age of an HVAC worker is 55. Experts estimate that the shortfall of qualified HVAC workers is more than 115,000 individuals.

    Have You Considered Outsourcing Your HR Functions To A PEO?

    The economic downturn has made it challenging for HVAC and plumbing companies to offer competitive salaries, alluring benefits packages, and attract and retain top employees. More and more companies have looked to outsource these administrative tasks they don’t have the time or expertise to manage effectively. Have you considered outsourcing your HR functions to a professional employer organization (PEO)?

    Let’s start by understanding what a PEO is. A PEO is an organization that enters into a joint-employment relationship with an employer by co-employing the clients’ workforce, allowing the PEO to share and manage many employee-related responsibilities and liabilities.

    While a PEO can help you combat the labor shortage and aging workforce you may be faced with, a PEO can do much more than that. Everything is under one roof, from tracking employee performance to creating a fleet management program to an online payroll service. You can finally focus on your core competencies while you leave the HR responsibilities to professionals who specialize in that area. This can improve efficiency and accuracy in HR processes such as recruitment, benefits, and compliance with labor laws. In addition, you also gain access to a wider pool of HR talent and expertise which can result in better decision-making and overall HR strategy.

    Has an employee filed a claim because of an injury on the job? 

    A PEO takes a proactive approach to workplace safety by providing you with the following:

    • Onsite consulting
    • Jobsite inspections
    • Accident and injury investigations
    • Training
    • And so much more

    In addition, if you struggle to stay ahead of the risks associated with workers’ compensation and workplace hazards, a PEO can help protect your business. You now have a partner that enables you to take a proactive approach to address immediate issues and prevent potential problems in the future.

    Are you struggling to attract and retain top talent? 

    You’re not alone if you’re struggling to attract and retain top talent. Offering a quality benefits package is one of the best ways to retain and attract top talent. However, offering a quality benefits program is becoming increasingly expensive and takes too much time. A PEO works with business owners to help them decide which benefits make the most sense for their business operations, employees, and bottom line. In a time when your workforce is beginning to retire, it’s essential that you take every step possible to ensure you are attracting the next generation of employees. However, it’s also vital that you take proactive steps to retain your talent. Offering a competitive benefits program can help you stand out from your competition and help you succeed during these unprecedented times.

    Do you spend countless hours doing payroll each payroll period?

    As an HVAC or plumbing company owner, you don’t have the time to manage the payroll process anymore, especially with your demand at an all-time high. Your partnership with a PEO saves you time and gives you peace of mind. Think about the sleep you could get if your payroll is all managed online. Payroll software streamlines the payroll process, creating less paperwork and giving users access from anywhere with an internet connection.

    Are you having trouble hiring and recruiting employees? 

    Recruiting, training, and retaining employees has never been more challenging for small and mid-sized businesses in a tightening labor market. Luckily, when you partner with a PEO, this heavyweight is carried off your shoulders. You now have access to the tools and resources necessary to take on these responsibilities while improving your overall recruiting, hiring, and training efforts. This partnership can strengthen your business and let you focus on other responsibilities. In a market where your services are in high demand, it’s a great time to partner with a PEO to find you the talent your business wants and needs to thrive.

    Consider Group Management Services (GMS)

    From creating a competitive benefits package and streamlining your payroll process to creating safety programs to ensure you have a safe work environment to hiring and recruiting top talent, Group Management Services (GMS) does it all. We make employee management simpler, safer, and stronger. We save you time and money while you retain full control over your employees and regain the opportunity to focus on growing your business.

    Andrew Szczesniak, Senior Sales Strategist, expressed, “GMS helps companies in the plumbing and HVAC industries by reducing their administrative costs regarding workers’ compensation and health care. By lowering costs in those areas, businesses are now more competitive in bidding jobs and can attract and, as importantly, retain their existing employees.”

    Leave the HR details to us. Contact us today so we can help you thrive in today’s economy.

  • Business owners in today’s economy stress over the uncertainty of what’s to come. Let’s face it, COVID-19 took a toll on just about everyone but especially small business owners. Interest rates are rising, inflation is through the roof, and talk of a recession is all at the forefront of our minds. However, small business owners continue to hire additional employees. Over the last three months, over one million jobs were added within the U.S. Alongside this, you see companies such as Zoom, Dell, PayPal, and Hubspot lay off a significant amount of their workforce. As a business owner, you may think do I add more employees, or do I need to cut back?

    What The Experts Are Saying

    Mass layoffs have been a reality for many workers worldwide, especially since the COVID-19 pandemic. The pandemic forced many businesses to shut down or scale back operations, resulting in significant job losses in all industries. While the economy is slowly working on getting back to life before the pandemic, businesses still struggle to survive, forcing business owners to lay off workers and cut costs. The major companies making layoff announcements are those within the technology, accounting, and engineering industries. More than 77,000 workers in U.S.-based technology companies have been laid off in mass job cuts in 2023.

    However, the job market remains stronger than expected despite the ongoing recession fears and constant news regarding mass layoffs. The health care industry is growing rapidly, with more than two million job openings. In addition, the following industries are increasing their hiring efforts:

    • Restaurants
    • Hotels
    • Hospitals
    • Sports
    • Civil engineering
    • Dental

    Have You Considered Partnering With A PEO? 

    The job market is complex and ever-changing, as mass layoffs and hiring booms are happening within different industries. As the economy recovers and adapts to new circumstances, consider partnering with a professional employer organization (PEO) like Group Management Services (GMS). Between recruiting and retaining employees to payroll and tracking vacation time, there are many functions we can help with. When you partner with GMS, you gain HR experts that help you attract and retain top talent, create enticing job descriptions that get you the talent you need to grow, create a competitive benefits package, and so much more. Contact us today to learn more.

  • Illinois Governor JB Pritzker signed Bill 3146, an amendment to the One Day Rest In Seven Act (ODRISA), on May 13th, 2022. On January 1st, 2023, it became effective for all employers in Illinois. ODRISA requires employers in Illinois to provide most full-time, non-exempt employees with one day of rest during each workweek and meal and rest breaks during daily shifts. ODRISA took effect on January 1st, 2023, which included a modified definition of “work period” to assess when a day of rest is required. In addition, it requires employers to provide further meal breaks in the event an employee works more than 12 hours and provide employees with notice of the amendments of ODRISA.

    Let’s Take A Deeper Dive Into The Act

    All covered employees are now eligible for at least 24 hours of rest in every consecutive seven-day period. This act requires employers to provide eligible employees with at least 24 consecutive hours of rest in every “calendar week.” The following are additional requirements business owners should be aware of:

    • All covered employees who work in excess of seven and a half hours will be entitled to additional unpaid meal breaks of at least 20 minutes
    • Employers must provide employees with sufficient notice of the amendments to ODRISA
    • Employers are subject to increased penalties and damages for non-compliance (between $250 to more than $500 for each offense)

    This law allows employers to secure permits from the Illinois Department of Labor for employees to work on the seventh day, given that the employees have voluntarily agreed to work and are paid at the appropriate overtime rate if they’re working over forty hours in that week.

    For frequently asked questions, click here.

    How Partnering With GMS Can Help

    As laws and regulations change, they become more complex. Keeping up with the changes and adjusting your business operations accordingly is challenging. At GMS, we understand. Our HR experts are here to make your job simpler. You don’t have the time or money to deal with the hefty penalties that come your way by not staying compliant. At GMS, we take a proactive approach to ensure you don’t face these penalties. Interested in learning more? Contact us today.

  • Along with the federal omnibus spending bill President Biden signed into law the Pregnant Workers Fairness Act (PWFA) and the Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP Act). Both of these laws expand federal protections for pregnant and nursing workers. The PUMP for Nursing Mothers Act was signed into law on December 29th, 2022. This stemmed from the landmark legislation, The Break Time for Nursing Mothers law, which passed in 2010. It required employers to provide reasonable break time and a private, non-bathroom space for breastfeeding employees to pump during the workday. This was the first step in helping nursing mothers. However, improvements still needed to be made, as one in four women was not covered by the Break Time Law.

    Understanding The PUMP Act

    The Pump Act made the following changes to the Break Time Law:

    • Provides the right to break time and space to pump breast milk at work to millions of other workers, including teachers and nurses
    • Makes it possible for workers to file a lawsuit to seek monetary remedies if their employer fails to comply
    • Clarifies that pumping time must be paid if an employee is not completely relieved from duty

    This legislation was enacted immediately after it was signed on December 29th, 2022. However, the enforced provision included a 120-day delay, making the effective date for that provision April 28th, 2023. There’s also a three-year delay in implementing the protections for railway workers. This act is the first standalone breastfeeding bill to receive a recorded vote on the House and Senate levels.

    Your Responsibilities As A Business Owner

    The new law entails quite a few changes that all business owners should be aware of. This act covers all employees, not just non-exempt workers. Your exempt employees should be paid their full weekly salary required by federal, state, and local law, regardless of if they take a break to breastfeed. Employees must provide notice of an alleged violation to the employer and give the employer a 10-day cure period before filing a claim. Employers with fewer than 50 employees can rely on the small employer exemption if compliance with the law would cause undue hardship because of significant difficulty or expense.

    Partner With GMS To Stay Compliant

    Complying with the ever-changing rules and regulations of your business is challenging. At GMS, we understand. That’s why our business model helps small business owners by taking on the administrative burdens you don’t have the time to manage. The most crucial step in complying with all laws and regulations is educating yourself and your employees. When you partner with GMS, you gain access to our learning management system (LMS), where you can create or participate in various courses. Whether your soon-to-be mothers need a refresher on their rights when they have a child or a new law needs to be enforced within your business, an LMS gives you access to resources to help you implement them. Contact us today to learn more.

  • On February 3rd, 2023, the Office of Administrative Law (OAL) approved the Cal/OSHA COVID-19 regulation. It will remain in effect until February 3rd, 2025, with recordkeeping obligations remaining in effect through 2026. Alongside this, the Emergency Temporary Standard (ETS), which California employers have been following for the past three years, will come to an end.

    As a business owner, it’s essential that you understand what this regulation entails and what your responsibility is. For more information, click here. In addition, a fact sheet that the California Department of Industrial Relations released should also be utilized.

    Implement Changes With GMS

    With this new regulation in full effect, it’s essential that you take all steps necessary to ensure you comply. When you partner with GMS, we help you stay up to date with all rules and regulations. When new laws are enforced, we help you make the necessary changes to keep your business thriving. Contact us today.