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  • With 2023 in full swing, business owners are still trying to combat the effects of the COVID-19 pandemic – hiring, recruiting, retaining employees, and more. However, employers may be so eager to get employees to work for them, they may be disregarding the potential cost of labor law violations. Labor laws are regulations that outline rights and liabilities in the workplace, notably those of the employees and the employer. They can be one of the trickiest issues you face as an employer if you don’t adhere to these laws and regulations.

    This is relevant now more than ever as the National Labor Relations Board (NLRB) came out with its newest rule. The new ruling states that employers who violate federal labor law must compensate workers to make up for the direct consequences of unfair labor practices. The board expressed that victims of labor law violations are entitled to be compensated for all “direct or foreseeable pecuniary harm” due to illegal labor practices.

    The National Labor Relations Act (NLRA)

    In 1935, Congress passed the National Labor Relations Act (NLRA), making it clear that it’s the policy of the U.S. to encourage collective bargaining by protecting workers’ full freedom of association. It ultimately protects workplace democracy by providing employees at private-sector workplaces the fundamental right to seek better working conditions and designation of representation without fear of retaliation. The NLRA prohibits employers from firing, demoting, or withholding benefits from employees due to their involvement in or support of a union.

    The following are examples of illegal discrimination under the NLRA:

    • Discharging employees because they urged other employees to join a union 
    • Refusing to reinstate employees when jobs they are qualified for are open because they took part in a union’s strike 
    • Demoting employees because they circulated a union petition among other employees asking the employer for an increase in pay 
    • Discontinuing an operation at one plant and discharging the employees involved, then opening the same operation at another plant with new employees because the employees at the first plant joined a union 
    • Refusing to hire qualified applicants for jobs because they belong to a union 

    What The Board Is Saying

    Recently, the board has been vocal in expressing updates to the current laws that are in place. In addition to the loss of earnings and benefits, victims of unfair labor practices may incur significant financial costs, including:

    • Out-of-pocket medical expenses
    • Credit card debt
    • Other costs that are a direct or foreseeable result of the unfair labor practices

    The NLRB determined that compensation for these losses should be a part of the standard, make-whole remedy for labor law violations. The board emphasized that employees aren’t made whole until they’re fully compensated for financial harm suffered from unlawful conduct. Common remedies imposed included reinstatement of employment, back pay, payment of dues and fines, stopping unlawful rules or practices, or a notice posted at the workplace. The NLRB’s latest law expands this list substantially for employers, holding them more accountable for their actions.

    The following are new make-whole remedies that the NLRB has cited:

    • Compensation for health care expenses that an employee incurs as a result of an unlawful termination of health insurance
    • Compensation for credit card late fees incurred
    • Compensation for the loss of a home or a car that an employee suffered resulting from an unlawful discharge
    • Employer sponsorship of work authorizations for the firing of undocumented workers

    In addition, for an employer’s unlawful failure to bargain with a union, remedies could include the following:

    • Compensation for losses sustained by employees
    • Bargaining schedules
    • Cease-and-desist orders
    • Reimbursement of collective bargaining expenses
    • Reinstatement of a one-year contract bar
    • Reinstatement of proposals that the board finds to have been unlawfully withdrawn
    • Submission of periodic detailed progress reports to the board

    What This Means For Employers

    The biggest takeaway from this is to minimize and avoid any violations of the NLRA. It’s essential that you and your leaders within your organization must understand the rules associated with the NLRA. When you partner with GMS, we take on that responsibility for you. Our HR experts ensure you remain compliant in all areas of your business, from payroll to benefits to risk management, we’re here to help. If you want to learn more, contact us today.

  • As 2023 is in full throttle, it’s time to start thinking about your new year’s business resolutions. Whether you’ve started prepping for this year’s goals or not, it’s time to consider how to enhance your business functions. As a small business owner, you may want to start by providing your employees with a retirement savings plan. This can be intimidating, and you might not know where to start. However, we’ve provided you with a variety of different ways in which you can offer your employees a retirement plan to set them up for success.

    Let’s Start With The Basics

    An individual retirement account (IRA) is a long-term savings account that individuals with earned income can utilize to save for the future while enjoying certain tax advantages. Money held in an IRA typically cannot be withdrawn before the age of 59 ½ without incurring a significant tax penalty of 10% of the amount withdrawn. In addition, there are a variety of IRAs individuals can utilize, including:

    • Traditional IRAs
    • Roth IRAs
    • Simplified Employee Pension (SEP) IRAs

    For a deeper dive into these various retirement plan options, click here. 

    Is The Safe Harbor 401(k) The Right Fit For Your Business?

    When it comes to retirement plans, not all are inexpensive to establish, nor are they easy to maintain. Recently, businesses have begun implementing a Safe Harbor 401(k). A Safe Harbor Plan 401(k) is similar to a traditional 401(k) plan; however, it must provide for employer contributions that are fully vested when made. These contributions may be employer-matching contributions that are limited to employees who accept, or employer contributions made on behalf of all eligible employees, regardless of whether they make elective deferrals. You can forgo annual nondiscrimination testing in exchange for required contributions, which ultimately helps reduce your duties as the plan administrator.

    While a Safe Harbor plan offers many benefits, it makes it easier to save for your own retirement while also helping your employees become ready for their retirement. Business owners may contribute up to $20,500 tax deferred, lowering their personal tax liability. On top of that, the employer-matching contribution you provide for your employees is a tax deduction.

    Partner With GMS

    Offering a retirement plan to your employees is essential to recruiting and retaining quality employees, but it’s a benefit with a lot of complexity and risk. Yes, all of these plans sound great, but do you really want to take the time out of your already busy schedule to implement this? Fortunately, when you partner with GMS, we’ve made it easy for you to give your employees what they want and need, all while doing what you do best – growing your business. Our partnership provides you access to our small business 401(k) plan administration services. You can also offer your employees a profit-sharing 401(k) plan!

    By implementing a profit-sharing plan, you can show employees they are critical to your company’s success by rewarding them for their hard work. Partnering with a PEO like GMS helps you with the following:

    • Cut costs and reduce stress
    • Save time
    • Offer benefits your employees want the most

    To learn more, contact us today. 

  • A new year comes with new laws and regulations. If you live in Indiana, you may want to listen up. On January 1st, 2023, the Indiana Department of Revenue issued a revised Departmental Notice No. 1, How To Compute Withholding for State and County Income Tax. Three counties in Indiana, including Greene, Montgomery, and Perry, have experienced tax rate changes. The following are the new rates for each county:

    • Greene: Increased to 2.15%
    • Montgomery: Increased 2.65%
    • Perry: Decreased to 1.4%

    In addition, the state withholding rate decreased to 3.15%, which also decreases the state supplemental wage and tax rate to 3.15%.

    Where GMS Comes Into Play

    While laws and regulations are constantly changing, it’s essential for all business owners to ensure they remain compliant. Running your business and ensuring your employees are also complying adds a whole new layer of responsibility to your daily job functions. When you partner with GMS, our experts keep up with all rules and regulations you must stay on top of. Let us handle the administrative burdens you don’t have the time to handle. Contact us today to learn more.

  • On December 22nd, 2023, in a bipartisan vote, the U.S. Senate approved the Pregnant Workers Fairness Act (PWFA) to be included in the 2023 federal spending plan. As the bill moved forward into the House of Representatives, it was then passed on December 23rd, 2022. The same day, President Joe Biden signed the bill into law. Continue reading to discover the mandated accommodations associated with PWFA.

    What Is The PWFA?

    The PWFA requires companies to provide pregnant workers with reasonable accommodations such as limits on heavy lifting and more frequent breaks. Currently, federal law only requires those accommodations if employers also offer them to workers with injuries or medical conditions. Under the PWFA, employers with 15 or more employees must accommodate applicants and employees with known limitations due to pregnancy, childbirth, or related medical conditions.

    The Biden Administration has continued to support the PWFA, stating that pregnant workers are often compelled to choose between their health and their jobs. Unless these accommodations are incorporated into law, pregnant women will not be protected. Due to this, many women have a difficult time proving pregnancy discrimination against their employers. The lack of protection for women who are expecting often leads to thousands of women losing their jobs each year. The implementation of the PWFA has mandated that reasonable accommodations must now be implemented into your business operations. Accommodations may include:

    • Assigning lighter work
    • Permitting frequent bathroom breaks 
    • Allowing water at workstations 

    Implementing Temporary Accommodations 

    Often, accommodations may be made for a pregnant employee with the expectation of removing it after the child is born. For example, if a woman needs to work from home for a certain period, then employers must decide if the position can be properly completed remotely. For employers, some positions can be challenging to accommodate. What happens when you can’t make accommodations for your employees? If pregnant workers can no longer complete the essential functions of their position, employers are allowed to provide indefinite leave. No one wants to lose an employee due to temporary circumstances; therefore, employers must consider whether they can create a new position for the time being. This will allow pregnant women in the workforce to have a healthy and safe pregnancy.

    Reaching ADA Accommodations 

    This legislation was modeled on the Americans with Disabilities Act (ADA). Currently, the ADA has laws in place to minimize discrimination against pregnant women. When it comes to women who are breastfeeding, federal law requires employers to provide reasonable time and clean space when necessary. However, due to the Affordable Care Act (ACA) in 2010, many salaried workers were excluded from this law. Through women’s pregnancies, many often work in physically demanding and low-wage positions. 

    Ease The Implementation Process 

    Ever-changing legislation can be overwhelming for a busy business owner to manage. When you partner with GMS, you don’t have to worry about missing legislative updates that may affect your compliance. Remove the consistent administrative burdens and get back to focusing on what’s important – growing your business. Contact GMS today to learn more.

  • On January 1st, 2023, the Internal Revenue Service (IRS) increased the standard mileage rate for paid transportation expenses. The new mileage rate will be 65.5 cents per mile which is up three cents from the second half of 2022. All miles driven for medical or moving purposes will remain at 22 cents per mile, and mileage for charitable purposes will remain at 14 cents per mile. For additional information regarding the updated business standard mileage rate, click here.

    Understanding Mileage Reimbursement

    In most businesses, employers would provide company cars to salespeople and executives who traveled often for business purposes. The employer would also pay for the car’s expenses, including gas, insurance, and maintenance. Nowadays, if a company doesn’t provide vehicles for their employees, they should reimburse employees’ car expenses with mileage reimbursement. With mileage reimbursement, employees receive a set dollar amount for every mile they drive for business purposes. While reimbursing your employees for using their personal vehicles is not a federal requirement, it’s essential that you adopt such practices to keep your employees from using their savings to fund business expenses.

    The following are considered qualified mileage reimbursement costs:

    • Business trips
    • Off-site meetings with clients and prospective clients
    • Running errands for business supplies
    • Deliveries

    Fortunately, the IRS makes it easy for business owners to determine how much they should be reimbursing their employees. The IRS sets a mileage rate for these costs, which are not taxable to your employees and are a deductible for your business. Should you choose a higher rate, you and your employees pay payroll taxes on the extra amount.

    Utilize GMS To Help With These Decisions

    While providing your employees with mileage reimbursement isn’t necessary, it’s a way to attract employees and let them know you care about them. When you partner with GMS, you gain access to our fleet management program. This allows business owners to organize and coordinate work vehicles to improve efficiency, reduce costs, and monitor unsafe driving habits. If you’re a small business owner and don’t have a fleet of cars, our HR experts work with you to set up a program so you can reimburse your employees for qualified mileage reimbursement costs. Contact us today to learn more.

  • On December 12th, 2022, Governor Kathy Hochul signed legislation establishing Carlos’ Law. Under this bill, corporate criminal liability for death or serious physical injury of an employee, whether a felony or misdemeanor, will be increased by a fine of up to $500,000.

    Carlos’ Law

    Carlos’ Law is named after Carlos Moncayo, a 22-year-old construction worker who tragically died at a New York City construction site in 2015. He was killed in the workplace because his employer ignored the repeated warnings of the dangerous conditions he was placed in.

    This law raises the financial penalties employers may face for workplace fatalities from a minimum of $5,000 and a maximum of $10,000 to a minimum of $300,000 and a maximum of $500,000. Under the new legislation, a corporation is guilty of criminal corporate liability for the death or injury of a worker when it negligently, recklessly, intentionally, or knowingly causes the death or serious physical injury of its employees while on the job.

    The law will do the following:

    • Impose criminal liability on a corporation when the conduct constituting the offense is committed by an agent of the corporation while acting within the scope of their employment and on behalf of the corporation, and the offense is “in relation to a crime involving the death or injury of a worker
    • Require a court to set restitution or reparations when a corporation is found guilty of an offense involving the death or injury of a worker
    • Impose a fine of not less than $500,000 nor more than $1 million when a corporation is convicted of a felony involving the death or injury of a worker
    • Impose a fine of not less than $300,000 nor more than $500,000 when a corporation is convicted of a misdemeanor involving the death or injury of a worker

    The ultimate goal of Carlos’ Law is to – “increase punitive measures so that corporations and their agents who ignore or fail to follow safety protocols and procedures and put workers at risk are less likely to write off serious workplace injuries as a minimal cost of doing business, and more likely to give workplace safety the serious attention it requires.”

    Stay Compliant, Partner With GMS

    As a business owner, it’s essential that you take all steps necessary to ensure the safety of your employees. The last thing you want is for an employee to get injured on the job. Add the hefty penalties you could face for not complying with the laws and regulations within each state. Whether you have a business in New York or not, there are always rules in place to ensure you provide a safe work environment for your workers. When you partner with GMS, our safety experts ensure you’ve created a culture of safety to minimize any risks your employees’ daily activities may carry. We help you take a proactive approach to workplace safety through various services, including:

    • Onsite consulting
    • Jobsite inspections
    • Accident and injury investigations
    • Training
    • Job hazard analysis and standard operating procedures
    • OSHA inspection and citation assistance

    Make your work environment a safer place, contact us today.

  • While COVID-19 continues to affect individuals worldwide, states and several counties have extended COVID-19 safety rules, California being one of them. On December 15th, 2022, the California Occupational Safety and Health Standards Board voted to enact new COVID-19 prevention regulations. These regulations will be effective in January 2023 following a 30-day review period and remain in effect for at least two years.

    Flashback To 2020

    Since the very beginning of COVID-19 in 2020, the California Division of Occupational Safety and Health (CalOSHA) had implemented a series of emergency temporary standards (ETS) to help regulate COVID-19 within the workplace. Under specific conditions, OSHA is authorized to set ETS that take effect immediately and are in effect until superseded by a permanent standard. Typically, these standards are intended to be temporary, with an expiration date of six months. However, California’s Governor, Gavin Newsom, has continued to extend various iterations of the California ETS since 2020, with the last ETS expiring at the end of 2022 per executive order.

    What California Employers Need To Know

    As the ETS expired at the end of 2020, California’s Standards Board passed a non-emergency regulation that can stay in place indefinitely. However, the new regulations are only set for two years after their effective date, 2025. While these regulations reflect similarities to the requirements found in the COVID-19 Prevention ETS, the new provisions aim to make it easier for employers to provide consistent protections to their employees. It also allows for more flexibility if changes are made to guidance in the future from the California Department of Public Health.

    The following are requirements of the new regulation:

    • Exclusion of COVID-19 cases from the workplace and return-to-work requirements
    • Providing notice of potential COVID-19 exposures and access to free testing to identify close contacts
    • Implementation of workplace safeguards to prevent the spread of COVID-19, including ventilation enhancements and policies to encourage sick employees to stay home
    • Training of employees on COVID-19 hazards and the requirements of the regulations
    • Additional safety protocols are required for outbreaks (three plus cases in 14 days) and significant outbreaks (20 plus cases in 30 days)
    • Maintaining records for COVID-19 cases among employees

    Employers are not required to provide paid leave to employees that can’t work due to testing positive for COVID-19 or have been in close contact with someone with COVID-19. Since the new regulation follows the same guidelines as the original ETS and is less strict, existing policies should meet the requirements of the regulations. You must be consistent with the guidelines set by the California Department of Public Health. Additional information will be announced here.

    Allow GMS To Help!

    If you’re a business owner that’s been operating since the COVID-19 pandemic in 2020, you are already aware of specific regulations you must follow and enforce to protect yourself and your employees. However, if you’re a business owner in California, additional regulations are going into effect until 2025. While they may be similar to regulations you already have in place, it’s critical that you’re following them correctly. When you partner with GMS, we ensure you remain compliant and have rules and procedures in place. Whether it’s in your handbook and/or on a workplace poster in your common area, we’re here to help you every step of the way. Contact us today to learn more.

  • During the rush of the holiday season, employers often turn to additional help – seasonal workers. However, as employers are feverishly hiring, they often make a variety of mistakes. According to the U.S. Department of Labor (DOL), employers who are unaccustomed to seasonal hiring may not be aware of the rules and regulations. Are you ready to focus on making your business thrive this holiday season? Continue reading to find out how to accurately add to your employee count.

    The Hiring Process

    Before you begin the hiring process, establish a well-planned strategy to comply with employment laws. Building a strategy will allow you to protect your business. It’s essential to ensure that new hires are aware that they are hired on a temporary basis. Furthermore, you should require any seasonal employee to acknowledge, in writing, that they will only be guaranteed employment for the specified duration. Another consideration is to utilize “at-will” employees. This type of employee gives employers the legal right to terminate the employee with or without cause.

    Employee Classification

    When classifying your employees, you want to ensure that the classification is appropriately documented. It might be easy to assume that due to the length of employment, these employees should be classified as independent contractors; however, this is not the case. Employers considering their seasonal workers as independent contractors should ensure that the classification meets the legal requirements.

    Wage And Exemption Pitfalls

    Common pitfalls employers often see when hiring seasonal workers are due to incorrect pay. Employers make the mistake of paying employees less than minimum wage or failing to comply with overtime requirements. The Fair Labor Standards Act (FSLA) requires seasonal employees to be paid one-and-a-half times the regular pay rate for any additional hour worked over the 40-hour week. However, under FLSA, seasonal workers may be exempt from receiving overtime pay working in establishments such as:

    • Recreational establishments
    • Organized camps
    • Religious groups
    • Non-profits
    • Educational institutions

    Company Size

    The size of your organization can create a barrier to the talent you need; however, employee thresholds often vary by state. Additional employees can put small business owners into a new size classification. Employers should determine whether additional workers will convert them into large employers under the Affordable Care Act (ACA).  However, if a company is already a large employer, health benefits are required to be provided to seasonal employees.  Failure to provide the required benefits can lead to expensive consequences for employers. Consider reviewing your benefits policies and health plans to establish whether these offerings are required.

    Simplify Seasonal Hiring With GMS

    With the holiday season in full swing, it’s vital for employers to properly hire their seasonal workers. With GMS as a partner, our team of HR professionals can ease the administrative burdens that come along with seasonal hiring. GMS will ensure you remain compliant, so you can focus on growing your bottom line. Contact us today to learn more.

  • The 5th U.S. Circuit Court of Appeals has upheld the injunction of executive order 14042, stating that government cannot enforce federal contractors to receive the COVID-19 vaccine. In a 2-1 vote, the court decided to block the mandate. Additionally, on December 19th, 2022, the hearing found that the Biden administration had overstepped its authority due to a breach of the tenth amendment.

    What Is The Mandate?

    On September 9th, 2021, President Joe Biden announced the executive order stating that all government contracts must implement a clause requiring federal contractors to be fully vaccinated unless legally accommodated. As a result, three states joined forces: Mississippi, Louisiana, and Indiana.

    The States Defense 

    A major argument amongst the states was that the vaccine mandate infringed on the right to regulate health and safety matters within their borders. The state believed that the implementation of this mandate would push far beyond federal contractors. Approximately one-quarter of the U.S. workforce, including the private sector, would be affected. 

    Defense Of The Mandate

    The U.S. Department defended the mandate with claims that the order was protected under the Procurement Act. Officials believed that the enforcement of the COVID-19 vaccine would enhance contractors’ day-to-day efficiencies by reducing productivity loss and schedule delays. Additionally, government officials hoped the mandate would decrease labor costs and employee absenteeism. 

    Your Strategy Partner 

    Government mandates and regulations are ever-changing. As a business owner, you already have enough on your hands. With GMS as a partner, you can remove the time spent worrying about missing legislative updates that may affect your business. Our HR professionals will keep you up to date on any changes that may impact your business. Our team will support you by creating a combative strategy to ensure your operations continue running smoothly. Contact GMS today to learn more.

  • In late December 2022, government officials announced changes coming to the U.S. retirement system. A collection of retirement-related provisions known as “Secure 2.0” includes a 4,100-page, $1.7 trillion spending that will fund the government for the 2023 fiscal year. The Secure Act 2.0 would require employers with 401(k) or 403(b) plans to automatically enroll all new, eligible employees at a 3% contribution rate, increasing by 1% each year until it reaches 10%.

    The current law allows individuals at least 50 years old to put an extra $6,500 annually in their 401(k). Secure 2.0 would increase the limit to $10,000 starting in 2025 for individuals ages 60 to 63. In addition, the following would also change:

    • Catch-up amounts would be indexed for inflation 
    • All catch-up contributions will be subject to Roth treatment (not pre-tax) except for workers who earn $145,000 or less

    These provisions are intended to build on improvements to the retirement system that were implemented under the 2019 Secure Act. The following are provisions for the new law:

    • Requires automatic 401(k) enrollment
    • Increases the age when required minimum distribution (RMD) would need to start
    • Creates bigger “catch-up” contributions for older retirement savers
    • Broadens employer 401(k) match options
    • Improves worker access to emergency savings 
    • Increase part-time workers’ access to retirement accounts
    • Boosts the contribution amount of a qualified longevity annuity contract
    • Changes the required minimum distribution amount
    • Broadens usage for unused college savings money

    In addition to all these benefits, it also includes a variety of incentives for small businesses to set up retirement savings plans for their employees, encourages individuals to set aside long-term savings, and makes it easier for annuities to be an income option for retirees.

    What This Means For Small Business Owners

    These provisions are intended to help employees save more for their retirement. Whether you want to attract more employees or find ways to retain current employees, providing your employees with a retirement plan is critical. When you implement a retirement plan, you show your employees that they are critical to your company’s success. Partnering with a professional employer organization (PEO) like GMS will help you and your business with 401(k) plans by doing the following:

    • Cut costs and reduce stress
    • Save time
    • Offer benefits your employees need the most

    Contact GMS today to learn more.