• Employers must stay ahead of evolving employment laws to ensure compliance and adaptability. One of the latest regulations impacting employers is Los Angeles County’s Fair Chance Ordinance (FCO). The ordinance, which took effect on September 3rd, introduces strict rules for criminal background checks that are more stringent than those at the state or city level. Compliance with these rules is essential, as failure to do so can result in significant penalties. 

    What Is The Fair Chance Ordinance? 

    The FCO applies to employers located in or doing business in the unincorporated areas of Los Angeles County. If your business employs five or more workers, including temporary staff, contractors, or freelancers, and operates within these areas, you are subject to the FCO’s rules. This ordinance aims to provide opportunities for individuals with criminal histories by regulating how employers handle job postings, offer letters, and hiring procedures. 

    Key Requirements For Employers 

    Employers subject to the FCO must make several changes to their hiring and employment practices, including: 

    • Job postings: Employers cannot discourage candidates with a criminal history from applying. Instead, they must explicitly state that applicants with arrest or conviction records will be considered, in compliance with both the FCO and California’s Fair Chance Act (FCA). Additionally, employers must list any specific laws or regulations that may prevent them from hiring individuals with a criminal background. 
    • Offer letters: Employers are prohibited from asking about criminal histories until a conditional offer of employment has been made. If a background check is required, the offer letter must outline all the background checks that will be conducted, such as education, employment history, or social media activity. 
    • Consideration of criminal history: The FCO prohibits employers from inquiring about specific types of criminal records, including arrests not followed by conviction, sealed or expunged convictions, and convictions that are more than seven years old. Any adverse action based on criminal history must involve an individualized assessment and proper notification to the applicant. 
    • Adverse actions: If you intend to take an adverse action based on criminal history, you must provide the applicant with a written assessment of how their criminal record relates to the job. You must also give the candidate time to respond to this preliminary decision before finalizing any adverse action. 

    Penalties For Non-Compliance 

    The consequences for failing to comply with the FCO are severe. Fines range from $5,000 for the first violation to $20,000 for subsequent violations, and these penalties are assessed per violation. Beyond fines, the county’s Department of Consumer and Business Affairs may recommend the suspension or revocation of your business license. Additionally, employees can file complaints with both the county and the California Civil Rights Department if they believe their rights have been violated. 

    How GMS Can Help You Navigate Compliance 

    Navigating the complexities of the FCO can be overwhelming, especially when you consider that regulations vary across California’s different regions. Fortunately, GMS is here to support your business. Our HR and compliance experts, particularly those familiar with the Los Angeles area, are well-versed in local, state, and federal laws. We offer comprehensive services to ensure your hiring processes and policies fully comply with the FCO and other relevant regulations. 

    Here’s how GMS can help: 

    • Policy reviews and updates: We can audit your current hiring practices, job postings, offer letters, and record retention policies to ensure they meet FCO requirements. 
    • Custom compliance solutions: Whether you need to update your background check procedures or implement proper documentation for individualized assessments, our experts can help you create tailored solutions that align with the FCO’s rules. 
    • Training and education: GMS offers training programs for your HR team to stay informed about the latest legal requirements, including how to handle criminal background checks under the FCO and FCA. 
    • Ongoing support: As new laws and regulations are introduced, GMS will keep you updated and ensure your policies are always current and compliant. 

    Stay Ahead Of Changing Regulations With GMS 

    Los Angeles County’s Fair Chance Ordinance is just one example of how rapidly employment laws can change. To avoid costly fines and protect your business, it’s essential to stay proactive. At GMS, we provide the expertise and resources needed to help businesses comply with complex regulations, so you can focus on what matters most; running your company. Contact our team today to learn more about how we can assist you! 

  • As we move into the fourth quarter of the year, U.S. employers remain optimistic about hiring trends. Despite global economic uncertainties, the labor market has shown resilience, with unemployment and layoffs staying relatively low across many regions. Jonas Prising, the CEO of ManpowerGroup states, “The global labor market is holding steady as we move into the fourth quarter, with relatively low unemployment and layoff activity in many countries.” 

    This positive hiring outlook creates opportunities for businesses, but it also presents new challenges, especially when it comes to finding the right talent and ensuring workplace safety. The U.S. Department of Labor (DOL) has recently announced $12.7 million in grants awarded to 102 nonprofits nationwide. These funds are aimed at promoting education and training initiatives that foster safer working environments. 

    At GMS, we understand the dual importance of recruitment and safety. As businesses strive to grow, it’s crucial to not only bring in the right people but also maintain a secure workplace for all employees. Here’s how our recruitment services and risk management services can help your business succeed in Q4 and beyond: 

    How GMS Can Support Your Hiring Needs 

    Our recruitment services are designed to simplify the process of finding top talent, saving you time and resources. Whether you’re seeking temporary workers, full-time employees, or specialists, our team works closely with you to understand your unique needs and source qualified candidates. With the U.S. labor market in good shape, now is the time to optimize your recruitment strategy to ensure you’re hiring the right people to drive your business forward. 

    In addition to our recruitment services, GMS offers guidance on maintaining compliance with safety regulations. The recent grants from the DOL highlight the growing importance of workplace safety, and GMS can assist your company in navigating these requirements.  

    The Importance Of Workplace Safety 

    Workplace safety is not just about compliance; it’s about protecting your employees and ensuring your business runs smoothly. Safer workplaces lead to higher employee morale, reduced injury-related downtime, and lower costs related to accidents or legal issues. By partnering with GMS, we help you foster a culture of safety while providing the tools and resources to support employee well-being and reduce risks. 

    Why Partner With GMS? 

    With the positive hiring outlook and new initiatives to promote workplace safety, businesses need a partner who can help manage these areas effectively. At GMS, we’re more than just a service provider: we’re your partner in growth. Our recruitment solutions are tailored to meet the specific needs of your industry, while our safety services ensure you remain compliant with regulations that keep your employees safe. Let us handle the complexities of hiring and safety so you can focus on what matters most: growing your business. 

    As the fourth quarter approaches, it’s a perfect time to reevaluate your hiring and workplace safety strategies. Whether you’re looking to expand your team or enhance workplace safety, GMS is here to help your business thrive. Reach out to us today to learn how we can make your business simpler, safer, and stronger! 

  • In February 2024, the U.S. Occupational Safety and Health Administration (OSHA) conducted an investigation on Strauss Feeds LLC, an animal feed manufacturer based in Watertown, Wisconsin. This investigation, prompted by reports of unsafe working conditions, revealed significant workplace safety hazards that put employees at risk. As a result, OSHA issued multiple citations and imposed penalties on the company, highlighting the need for immediate corrective action. 

    Incident Details 

    The OSHA inspection uncovered various safety issues at Strauss Feeds LLC, particularly related to dust hazards and respiratory risks. OSHA cited the company for 19 “serious” violations and five “other-than-serious” violations, leading to proposed penalties totaling $161,332. The violations stem from inadequate housekeeping practices, a failure to evaluate spaces for dust-related hazards, and a lack of engineering controls to manage combustible and airborne dust. 

    These conditions created a serious risk of explosion and fire, potentially endangering the plant’s workers. In addition to these hazards, OSHA found that Strauss Feeds had not developed a proper respiratory protection program, further increasing the health risks faced by employees due to inhalation of harmful dust particles. 

    OSHA’s Actions 

    In response to these findings, OSHA gave Strauss Feeds 15 business days to either contest the citations and proposed penalties or comply by addressing the violations. The company is now faced with the task of implementing necessary safety measures to prevent future accidents from occurring and protect its workforce from hazardous conditions. 

    Violations Identified 

    Among the key violations identified by OSHA are the following: 

    • Poor housekeeping practices that led to an accumulation of combustible dust. 
    • Failure to assess work areas for dust-related hazards. 
    • Lack of engineering controls to minimize dust buildup and exposure. 
    • Absence of a written respiratory protection program, endangering employees exposed to airborne contaminants. 

    These issues, left unaddressed, significantly increase the likelihood of fire, explosion, and respiratory illnesses, emphasizing the importance of workplace safety and compliance with OSHA standards. 

    Protect Your Business With GMS 

    The safety violations at Strauss Feeds LLC serve as a stark reminder of the dangers posed by inadequate workplace safety measures. Companies can proactively mitigate risks and ensure compliance by partnering with a professional employer organization (PEO) like Group Management Services (GMS). A PEO provides expert assistance in developing comprehensive safety programs tailored to each organizations unique needs, allowing businesses to protect their workers and avoid costly fines and citations from OSHA. 

    Investing in workplace safety is essential to creating a healthy and productive workforce. Let GMS help safeguard your business and create a culture of safety that prevents accidents before they occur. Reach out to our safety experts today! 

  • No matter the size of your company, effectively managing human resources (HR) is essential for business success. But as your company and workforce grow, managing and scaling your HR efforts can become more difficult. From recruiting the right candidates to maintaining employee satisfaction, proper HR management can take a lot of time and energy away from running your business. That’s why we’ve compiled a list of strategies to help you adapt your HR efforts to your business growth.  

    Assess Current HR Needs And Future Growth 

    Before you start making changes to your HR processes, it’s crucial to evaluate your current HR tools, needs, and processes. By identifying what is working well and what needs improvement, you can update your processes and make updates that align with your future goals and objectives. For example, if you are experiencing a high turnover rate, it might be time to reassess and update your current recruitment and hiring strategies. This can involve conducting exit interviews, revising interview questions, or updating job descriptions. These reviews can lead to more actionable improvements and potentially reduce your turnover rate.  

    It’s also important to identify what your company’s needs will be in the future. By considering your growth trajectory and estimating the number of employees you’ll need in the coming years, you can better plan for future hiring and recruitment efforts. 

    Invest In HR Technology  

    In today’s business environment, streamlining workflows and managing employees can be challenging without technology. One effective way to enhance your company’s HR efforts is by investing in and implementing HR software. A cloud-based human resources information system (HRIS) allows you to effectively manage processes such as payroll, benefits administration, performance management, and leave management all in one place. Utilizing HR technology significantly improves operational efficiency, reduces the chance of manual error, helps you manage your growing workforce, and saves you time, allowing you to focus on developing more strategic HR initiatives.  

    Another way to adapt your HR initiatives to your growing company is by implementing an employee self-service portal. By providing employees with a self-service portal for tasks like updating their personal information, accessing their pay stubs, and requesting time off, you can empower your employees to take charge of their information while reducing the HR workload. The portal also provides employees with the flexibility to manage their information and complete tasks on their own time.  

    Focus On Data Protection And Compliance  

    As your company grows, the volume of sensitive employee data increases. To prevent data breaches and ensure compliance, it’s essential to invest in security measures. This can include implementing multi-factor authentication, single sign-on, and providing employee cybersecurity training. 

    Additionally, staying updated on the latest labor laws and regulations is critical. As your workforce grows, the risk of noncompliance rises, potentially leading to costly fines and penalties. To avoid these, it’s vital to train your workforce on proper procedures and policies. 

    Provide Training And Support 

    As your company expands, training your workforce becomes increasingly crucial. Training and reskilling your employees not only increases their satisfaction and productivity but also contributes to your company’s long-term success. Employee training programs can enhance morale by making employees feel valued and prioritized. Continuous support throughout their tenure will improve their performance, strengthen your company’s reputation, and simplify HR management for your team. 

    GMS: The HR Solution 

    Whether your company is growing steadily or rapidly, effective HR management is key to long-term success. Regularly monitoring key HR metrics such as employee turnover, time-to-hire, and employee satisfaction helps identify areas for improvement. As a business owner, it’s important to be open to feedback and continuously seek ways to optimize your HR processes and tools to support your company’s growth. Scaling HR tools effectively is essential for small to midsize companies aiming for sustainable growth. However, managing this process alone can be challenging. That’s where Group Management Services (GMS) comes in. 

    GMS is a professional employer organization (PEO) that helps business owners reduce the administrative burden of running a business and effectively manage HR and recruitment efforts. With our HR software, learning management system (LMS), employee performance management services, and the expertise of our HR professionals, we can simplify and strengthen your HR processes, allowing you to focus on growing your business. Contact us today to learn more! 

     

  • The competitive job market today makes it increasingly important to retain top talent. While employees may be staying in their current roles longer than they have before, businesses still face significant challenges when it comes to developing their workforce. Upskilling and reskilling have become top priorities for businesses of all sizes, but many are finding it difficult to implement these initiatives effectively. According to Springboard’s State of the Workforce Skills Gap 2024, over 63% of leaders say that upskilling is the top priority for solving their company skills gap in the next year, and 43% plan to invest in reskilling. 

    For organizations looking to stay competitive and ensure long-term success, it’s essential to have a clear strategy in place for reskilling and upskilling employees. At Group Management Services (GMS), we specialize in equipping businesses with the expertise and tools to identify skill gaps, train employees, and cultivate a culture of learning that fuels growth and innovation. 

    Identifying Skills Gaps And Strategic Planning 

    One of the biggest hurdles companies face is determining which skills their employees need to develop. Many businesses are unsure where to start, which can lead to a generalized approach that fails to address the most pressing skill gaps. The key to successful upskilling is narrowing down the critical skills your business will need for future success and then aligning those needs with current employee capabilities.  

    At GMS, we work with business leaders to help them identify these key skills and develop targeted training programs. Our employee management services include performance management systems that track progress and ensure that your workforce is evolving to meet the demands of tomorrow. Whether it’s tech skills, leadership development, or industry-specific training, GMS can help you build a reskilling roadmap tailored to your business’s unique needs. 

    Training That Works For Your Team 

    Once you’ve identified the skills your team needs to continue developing, it’s important to provide the proper training opportunities. However, finding relevant training is only part of the solution. Employees need the time and resources to take full advantage of these opportunities. At GMS, we understand that the logistics of upskilling can be complicated. From taking employees off the production line to giving them the flexibility to attend virtual workshops, we can help you create an environment where learning thrives without sacrificing productivity. 

    Our comprehensive human resources solutions provide access to training programs and other learning resources, all while ensuring your workforce can maintain a balance between learning and job responsibilities. We help you implement strategies to minimize short-term performance dips that can occur when employees are learning new skills, so your business stays on track. 

    Recruiting With Learning In Mind 

    It’s not just about training current employees; hiring the right talent plays a crucial role in your company’s long-term success. It is imperative to recruit candidates who not only have the necessary skills but also the motivation and ability to learn. At GMS, our recruiting services ensure that you’re hiring individuals who are both capable and adaptable. 

    Given the rapid pace of industry changes, hiring employees with the ability to learn quickly can be more valuable than finding someone who meets every technical requirement from the start. Our recruiting strategies emphasize finding individuals with the drive to continuously improve, ensuring your workforce remains adaptable. 

    How GMS Can Help You Succeed 

    At GMS, we know that upskilling and reskilling are more than just buzzwords; they’re essential strategies for retaining talent and staying competitive. Our team of experts provides the guidance and tools you need to effectively train your employees and fill the skills gaps in your workforce.  

    With GMS’s employee management services, you can navigate the complexities of workforce development and create a learning culture that promotes business success. Partner with us to enhance your recruiting, training, and performance management processes, ensuring that both your employees and your business are prepared for the future. 

  • The workplace of 2025 is prepared to look vastly different from the pre-pandemic world. As businesses adapt to new challenges and trends, the workplace shifts toward greater flexibility, technological advancements, and a renewed focus on employee well-being and diversity. These changes are not just temporary responses to the global crises of the past few years but are instead shaping the future of work. By understanding these trends, companies can stay ahead of the curve and better position themselves for long-term success. Here are a few trends to note for 2025:

    Hybrid Work Models Are Here To Stay

    The most visible change in the workplace is the increased prevalence of remote work. While many businesses initially turned to remote work as a necessary solution during the COVID-19 pandemic, this trend has become a permanent fixture for many organizations. By 2025, a significant number of employees will continue to work remotely, either full-time or in a hybrid model that combines remote work with occasional in-office days.  

    This transition offers both opportunities and challenges for businesses. By hiring remote employees, companies can tap into a broader talent pool, including individuals from various regions or countries. However, maintaining a unified company culture and collaboration among remote teams will necessitate careful planning and the adoption of new communication strategies. Flexibility is key, with many businesses redesigning office spaces to accommodate a more dynamic workforce.

    A Focus On Employee Health And Safety

    The pandemic heightened awareness around health and safety in the workplace, and this focus will only intensify in the coming years. Employers will continue to prioritize the well-being of their employees with investments in advanced health and safety protocols. Companies are also expected to implement more comprehensive mental health support programs, recognizing the toll that stress and anxiety have taken on employees over the past few years. 

    Additionally, the growing importance of health and wellness benefits will lead businesses to increase their offerings, from expanded employee assistance programs (EAPs) to virtual wellness services. By focusing on both physical and mental health, companies can create a supportive environment that helps employees thrive.

    Technology Integration And Automation

    The rapid acceleration of digital transformation during the pandemic has permanently changed how businesses operate. By 2025, companies will rely even more on advanced technologies like artificial intelligence and automation to streamline operations and enhance productivity. These tools will be essential for managing a dispersed workforce, as well as for training, collaboration, and customer service. 

    However, with increased automation comes the need for reskilling. As some tasks become automated, employees must develop new skills to stay relevant in the evolving job market. Companies that invest in reskilling programs will not only support their current workforce but will also ensure they have the talent needed to compete in an increasingly digital workplace.

    The Future Of Leadership

    The traditional command-and-control leadership style is being replaced by a more empathetic approach that prioritizes emotional intelligence. In 2025, expect to see leaders who are more attuned to their employees’ emotions, needs, and concerns. This trend will require leaders to be more self-aware, adaptable, and compassionate. By building strong team relationships, leaders can boost innovation, creativity, and growth, leading to greater success. 

    To support this shift, organizations will need to invest in training programs that help managers develop these skills. Embracing continuous learning and development is essential for creating an environment where employees can thrive. One effective way to achieve this is through a learning management system (LMS), which provides a structured platform for training and development. An LMS can offer a variety of courses and resources to help managers enhance their emotional intelligence and leadership capabilities. 

    The Importance of Looking Ahead 

    As these trends continue to shape the workplace, businesses must take proactive steps to prepare for the future. Planning for the coming years, rather than reacting to changes as they happen, is essential for maintaining a competitive edge. By adopting the right technologies, cultivating a flexible and inclusive culture, and prioritizing employee well-being, companies can position themselves for success in 2025 and beyond. 

    How GMS Can Help Your Business Navigate Workplace Changes 

    At GMS, we understand that staying ahead of these workplace trends can be challenging. That’s why we offer comprehensive HR solutions to help your business adapt to the evolving changes. From managing remote work policies to enhancing health and safety protocols, GMS provides the tools and expertise needed to ensure your company is prepared for the future. 

    Our services include: 

    • Human resources support: We help you create a flexible, diverse, and inclusive workplace while ensuring compliance with ever-changing regulations. 
    • Payroll and benefits administration: GMS simplifies your payroll processes and offers competitive benefits packages that support employee well-being. 
    • Workplace safety solutions: We assist in developing and implementing safety programs that protect your employees’ physical and mental health. 

    As you look ahead to 2025, now is the time to start planning for the future. Contact GMS for a quote and learn how we can help your business thrive in 2025! 

  • As the year draws to a close, businesses often focus on wrapping up key projects, finalizing budgets, and preparing for the upcoming year. One important aspect of employee management should not be overlooked: performance reviews.  

    Many companies treat performance reviews as a formal, once-a-year obligation, but this traditional approach can be outdated and ineffective. Instead, reevaluating and restructuring your performance review process can lead to better employee development, clearer communication, and overall improved business outcomes. In fact, companies that implement regular employee feedback have 14.9% lower turnover rates than those that do not. Additionally, 92% of employees want feedback more often than just once a year. 

    Why Performance Reviews Matter 

    At their core, performance reviews serve several vital functions: 

    • Clarifying expectations: Employees need to understand what’s expected of them to succeed in their roles. 
    • Identifying areas for improvement: A review is an opportunity to provide constructive feedback and help employees grow. 
    • Setting developmental goals: Performance reviews offer a space to outline specific, actionable goals for employee progress. 

    However, waiting an entire year to offer feedback or address concerns can make the process feel forced and less impactful. Employees may be unaware of how they are performing in real-time, making it harder for them to improve. The feedback also tends to be less relevant, as it may focus on events or actions from months earlier, missing the opportunity for ongoing growth and relationship-building. 

    Reevaluate Your Performance Review Process 

    One of the key reasons companies should consider revisiting their performance review structure is to create more timely and effective conversations between employees and managers. Traditional reviews often lead to a feeling of dread, stress, and inefficiency. Instead of waiting for year-end or mid-year check-ins, a more frequent review process—whether monthly, quarterly, or after significant milestones—can help streamline feedback and goal setting. 

    More frequent performance evaluations allow managers to: 

    • Provide timely feedback: Employees benefit more from immediate feedback rather than waiting months to hear how they performed on a specific project or task. 
    • Address issues early: Ongoing reviews can help identify issues early, making it easier to adjust behaviors or strategies before they negatively affect performance. 
    • Promote continuous growth: Shorter, more focused reviews help managers guide employees in real-time, improving overall performance and productivity. 

    Structuring Reviews For Success 

    A performance review is only as effective as the preparation and structure behind it. Here are some best practices to follow: 

    • Consistent documentation: Keep detailed notes on employee performance throughout the year. This avoids the common pitfall of only focusing on recent actions or projects, ensuring a well-rounded review that highlights both strengths and areas for improvement. 
    • Standardized questions: Make sure to ask consistent questions across reviews to maintain fairness and transparency. This approach avoids biases and ensures that all employees are being evaluated on the same criteria. 
    • Active listening: Performance reviews should be a conversation, not a one-way critique. Give employees the space to express their thoughts and provide their own feedback on their performance and goals. 

    Start Preparing Now With GMS 

    As the end of the year approaches, now is the perfect time to reevaluate your performance review process. Moving away from outdated, annual reviews to a more frequent and structured approach not only improves employee satisfaction but also helps your business grow and thrive.  

    With the right tools, support, and guidance, GMS can help you optimize your performance management strategy, ensuring your team is set up for success in the coming year. GMS can help your company by: 

    • Streamlining the review process: We assist in setting up structured, consistent review schedules and processes tailored to your business needs. 
    • Providing performance management tools: Our services include performance tracking and management tools, ensuring that you and your managers can easily document and review employee performance throughout the year. 
    • Training managers: GMS offers training for managers on best practices for conducting performance reviews, giving feedback, and setting goals that drive employee success. 
    • Ensuring compliance and fairness: With GMS’s support, you can ensure your reviews are conducted fairly, legally, and in a way that promotes employee development and growth. 

    At GMS, we understand that managing employee performance reviews can be a daunting task for any business, especially when you’re trying to balance day-to-day operations. Let GMS assist in making your employee reviews a streamlined and productive process that supports both your employees and your business objectives. Reach out to us today to learn how we can partner with you in building a stronger, more efficient workforce. 

  • Significant updates are coming to 401(k) plans affecting employees across various industries. These changes, part of the SECURE 2.0 Act, are designed to enhance retirement savings opportunities and make retirement planning more accessible for all. Passed in late 2022, the SECURE 2.0 Act builds on the 2019 SECURE Act and includes over 90 provisions, some of which have already taken effect. The 401(k) updates for 2025 are particularly notable, offering expanded enrollment options, increased contribution limits, and greater flexibility for part-time workers. 

    Whether you’re just starting to save for retirement or already have a plan in place, it’s important to stay informed. Here’s a breakdown of the most significant changes to 401(k) plans coming in 2025: 

    Automatic Enrollment For New 401(k) Plans 

    Starting in 2025, all newly established 401(k) plans will automatically enroll eligible employees unless they opt-out. This provision aims to simplify the enrollment process and encourage more workers to begin saving for retirement as soon as they are eligible.  

    Employers with fewer than 10 employees or businesses under three years old are not required to automatically enroll. Government and church plans are also exempt from this rule.  

    Employers can set an initial contribution rate between 3% and 10% of an employee’s salary, with many opting for a rate around 6%. Each year, the contribution rate will automatically increase by 1% until it reaches the employer’s predetermined cap, which could be as high as 15%. This means that employees will have the chance to gradually increase their retirement contributions without needing to take any action. 

    Faster 401(k) Eligibility For Part-Time Employees 

    Currently, part-time employees need to work 500 hours over three consecutive years or 1,000 hours in one year to qualify for their employer’s 401(k) plan. However, beginning in 2025, that eligibility window will be shortened to two years instead of three. 

    This adjustment is excellent news for part-time workers, especially those who juggle multiple jobs. Keep in mind if you contribute to multiple 401(k) plans with different employers, your total contributions across all plans must not exceed the annual limit, which is set at $23,000 for 2024. 

    Higher Catch-Up Contributions 

    The SECURE 2.0 Act acknowledges the financial concerns of older workers, many of whom worry they haven’t saved enough for retirement. Starting in 2025, employees aged 60 to 63 will have the opportunity to make larger catch-up contributions than those in their 50s. The new limit will be set at either $10,000 or 50% more than the standard catch-up contribution limit, whichever is greater.  

    For example, if the catch-up contribution limit for 2025 remains at $7,500, workers between the ages of 60 and 63 can contribute up to $11,250. These limits will be adjusted annually to account for inflation, ensuring that employees can continue to maximize their retirement savings as costs rise. 

    How GMS Can Help 

    401(k) plan requirements are constantly changing, and with the new SECURE 2.0 provisions, businesses must stay on top of compliance while offering competitive benefits. At Group Management Services (GMS), we understand the importance of providing attractive retirement plans for your employees. Our team of retirement experts is here to help you navigate these changes, ensuring that your 401(k) offerings are compliant, competitive, and designed to meet the needs of your workforce. 

    Whether you’re looking to enhance your current retirement plans or want to explore new options, GMS can provide the guidance and support you need. Contact us today, and let us help you build a plan that works for both your business and your employees’ future.  

  • With open enrollment quickly approaching for many businesses, it’s important to take the time to review your current health care offerings and benefits plans. Regardless of your team’s size, investing in health care is essential as it significantly impacts the health, wellness, and happiness of your most valuable asset: your employees. Choosing the best health plan and benefits can be overwhelming, but it doesn’t have to be.  

    Open Enrollment 

    Open enrollment occurs annually, providing individuals the opportunity to enroll in or change their health care plan or other benefits. Individuals can review or update their existing coverage to meet their current needs; they can enroll in a new health care plan, modify their coverage levels, adjust their contributions, add beneficiaries, and more. Common benefits that individuals update are dental, retirement, vision, and more.  

    Open enrollment is a crucial period for employers and employees, as it is the only time when changes to health care plans and benefits can be made. There are some exceptions to this rule, such as experiencing a qualifying life event like having a child, getting married, or getting a divorce.  

    With rising health care costs, individuals are prioritizing utilizing affordable health care and benefits plans. This trend enhances the appeal of employers who offer comprehensive benefits packages to potential employees. In fact, 57% of U.S. workers have taken a new job if it provided better family and reproductive benefits.  

    Tips For Open Enrollment Season 

    As an employer, reviewing current policies or selecting the right health care plan for your employees during open enrollment can be overwhelming. However, there are a variety of strategies that can help you prepare and streamline the open enrollment process. 

    Make a schedule 

    Due to the hard cut-off date of the open enrollment period, marking your calendar with important dates and deadlines is essential. This year, open enrollment for HealthCare.gov begins on November 1, 2024, and ends on January 15, 2025. Consistently communicate with your employees about your important dates to ensure they are well-prepared and ready to submit their information to secure coverage for the upcoming year.  

    Offer personalized benefits options 

    As an employer, transparency and open communication are vital to a seamless open enrollment process. While there are many different coverage options and plans for your employees, it’s important to understand your employees’ priorities, their thoughts on their current plans, and updates or changes they’d like to see made. This can be done with an employee survey, a meeting, or a company-wide email. Offering a benefits plan that satisfies your employees will likely result in a more engaged, productive, and happy workforce. 

    In recent years, employees have been more strategic and thoughtful about their benefits selections. Employees are taking a more holistic perspective toward their health, and they want a strong, comprehensive benefits package to mirror that. Seventy-nine percent of employed individuals express interest in receiving support to maximize their workplace benefits dollars across retirement savings, health savings accounts (HSAs), health care insurance, and voluntary benefits.  

    Research coverage options 

    To ensure you are offering the best plans to your employees, it’s important to review your current coverage options and research potential alternatives. It’s crucial to check available providers and ensure they match your employees needs in terms of cost, services, and amount of coverage. To enhance your research process, consider the following steps: 

    Conduct employee surveys 

    By conducting an employee survey about your current coverage offerings, you’ll gain a greater understanding of what your employees are looking for with their health care options. When you utilize this feedback, you’ll be able to choose the best coverage that align with your employees’ wants and needs, potentially improving employee happiness and retention.  

    Compare coverage 

    As an employer, it’s crucial to benchmark health care coverage with federal standards to ensure that employees receive comprehensive and competitive benefits. It can also be helpful to compare your health care offerings with other companies in the same industry, to determine how your company’s current coverage compares to competitors or if any changes need to be made.  

    Keep your employees educated 

    As an employer, you need to make sure your employees understand their available coverage options, potential updates they can make, and possible costs. Open enrollment can be challenging, and providing resources to help employees better understand the process and the benefits available to them can significantly enhance their satisfaction with their plans. Providing resources like webinars, emails, guides, and insurance marketplace updates is a great way to keep your employees informed about the latest open enrollment information. 

    Open Enrollment Assistance 

    It’s never too early to start thinking about open enrollment. Ensuring your employees have a seamless enrollment process may seem daunting, but it doesn’t have to be. With a professional employer organization (PEO) like Group Management Services (GMS), you gain access to a dedicated HR team to help answer questions about open enrollment. GMS can also help reduce costs and administrative burdens while providing your employees with quality medical coverage. With our in-house master health plan, you can also avoid large swings in usage and renewal rates.  

    For more information about how GMS can help you navigate open enrollment, contact us today! 

  • Understanding CalSavers: A Mandate For Employers 

    California’s CalSavers Retirement Savings Program is a state-mandated initiative designed to ensure that employees across the state have access to retirement savings options. All California employers with five or more employees must either offer a private retirement plan or facilitate access to CalSavers for their employees.  

    With CalSavers, small businesses can keep employees engaged and attract new talent without incurring the overhead and administrative costs of a retirement plan. This law also aims to address the growing retirement savings gap, especially among workers who do not have access to employer-sponsored retirement plans. 

    How CalSavers Works 

    CalSavers is an automatic enrollment program, meaning eligible employees are automatically enrolled unless they opt-out. Contributions are made through payroll deductions, and employees can choose to save a portion of their wages into a Roth IRA. The program is designed to be simple for both employers and employees, without employer fees or fiduciary responsibilities. Employers are required to register with CalSavers and upload their employee roster, after which employees are notified of their enrollment. 

    Key Features Of CalSavers 

    • Automatic enrollment: Employees are automatically enrolled but have the option to opt-out. 
    • Roth IRA contributions: Employees contribute post-tax dollars, with a default contribution rate of 5%, though they can adjust this rate. 
    • Portability: The account is tied to the individual, not the employer, meaning employees can take their savings with them if they change jobs. 

    Newly mandated businesses with five or more employees must register by the end of the calendar year in which they become subject to the mandate. Business size is based on the average number of employees reported to the Employment Development Department on the four DE9C filings from the previous year. 

    Beyond California: Similar Programs In Other States 

    California isn’t alone in implementing a state-mandated retirement savings program. Several other states, including Oregon, Illinois, Colorado, and New York, have launched or are in the process of launching similar initiatives.  

    These programs share a common goal: to increase retirement savings among workers and reduce the burden on public assistance programs. For employers operating in multiple states, these varying requirements can become complex and challenging to manage. Each state’s program may have different deadlines, contribution rates, and administrative requirements, making compliance a potential headache for businesses. 

    How GMS Can Help  

    Navigating the intricacies of state-mandated retirement programs like CalSavers can be challenging, especially for businesses operating in multiple states. GMS is here to simplify the process. Our experts stay up-to-date with the latest regulatory changes across the country, ensuring that your business remains compliant no matter where you operate. We can help you implement and manage retirement savings programs that meet state requirements, so you can focus on growing your business while we handle the complexities of compliance. 

    Whether your business is in California, Colorado, New York, or any other state with similar mandates, GMS provides the support you need to stay ahead of these changes. Contact us today to learn more about how we can assist you in navigating retirement savings laws and ensuring your business remains compliant nationwide.