What we offer
Benefits
Human Resources
Risk Management
Payroll
Benefits Administration
HSA & FSA Stores
Who we serve
About us
Resources
Request a call Login

  • As we brace ourselves for undeniable regulatory changes within the healthcare industry, often we neglect conversation about the shortcomings of our current system to ensure we don’t repeat the same mistakes. Although many would agree that the intentions of the ACA (“Expand access to health insurance, protect patients against arbitrary actions by insurance companies, and reduce costs”) were created with social good in mind, experts are strident that the mechanisms used to create this social good have failed to correct the economic epidemic that currently infects our healthcare system. 

    If you think “economic epidemic” is a hyperbolic term to use in this context, think again. As referenced in my previous blog post about the continuing battle to repeal the ACA, the U.S. domestic healthcare system costs around $3.3 trillion to the American economy each year. What’s less known is that this figure is projected to continue rising as it has almost every year since the 1960s. 

    Chart of how total health expenditures have increased over time. 

    Some are projecting the U.S. to hit bankruptcy as early as the year 2035 if this trend continues to grow as exponentially as it has the past few decades. With baby boomers entering their elder years and both millennials and generation X set to surpass the population totals of the boomers by 2028 (Millennials in ’19 and Gen X in ’28), we can expect the requirements of our nation’s healthcare program to rise as well. Now is the time for change. As I alluded to earlier in this piece, we need to be cognizant of our past mistakes to ensure they aren’t repeated down the road with financially dire consequences. 

    The MLR Rule: Medical-Loss Ratio

    The MLR rule is a lesser known mandate to the public that was included in ACA implementation. Some will argue that it had positive intentions in how our insurers spend premium dollars, which isn’t incorrect in theory, but it has a troubling method in which it determines how the rule is executed. 

    In short, the MLR rule for small employers dictates that insurers must spend 80% of every premium dollar (it’s 85% for large employers) toward actual medical expenses, claims, and quality improvement. This percentage does not include items such as advertising, administrative costs, and profit to which the remaining 20-15% of premiums are spent. There are provisions in place that when insurers fail to satisfy at least an 80% loss ratio they must issue rebates back to consumers. These rebates totaled $469 million dollars in 2014, with 29.86% of those rebates attributed to the small group (under 500 employees) market. 

    Map of the average refund per family in the small group market. 

    Image via the Centers for Medicare & Medicaid Services

    Many insurers will build in features such as risk assessments, screenings, and coaching hotlines to ensure their “medical expenses” reach the MLR threshold regardless of whether their consumers are likely to use those enhancements or not. 

    The failings of this rule are relatively simple to point out in economic terms: if an insurer’s profits are dictated by a fixed percentage of product costs—in this case we’re speaking of “cost” as medical premiums—the business/insurer has every incentive to see the overall cost of its product rise, thus increasing profit margins. 

    As we diagnose some of the issues included in the ACA and what to avoid in future reform policies, I think this percentage based MLR rule must be exiled. Our economy can’t afford to maintain the rate of rising healthcare costs with large insurers incentivized to maintain a similar mantra. I think we can achieve a healthy balance between the two, but improved consumer-centric policies must serve as the catalyst.

    Current Solutions for Businesses: Self-Funding 

    Although the tone of this article may seem slightly cynical, I promise it’s not meant to be. However, I do think it’s necessary to be transparent of the flaws within our current system. There are alternative options for businesses looking to get ahead of the upcoming reform trend before it hits home in the coming years.

    One solution is self-funding, which was included in the ACA as an alternative funding source outside of fully funded group insurance and is immune to the MLR rule. The immunity to MLR and other provisions within the ACA allow self-funded groups to control healthcare spending by accessing live claims data, become risk rated, and earn back unused premium at the end of their policy year. Since most self-funded groups aren’t managed by a large carrier, but rather the business itself or a reinsurer with similar interests as the group, premium costs are more easily maintained to fit an appropriate fiscal trend without the controversial incentives found nestled within the ACA. 

    With GMS specializing in level-funding, a form of self-funding, we feel that the transparency of our healthcare consultants and creative product solutions align us with the goals of many employers. Continue to follow GMS benefit related blog posts to stay on top of current healthcare advances and reach out to your local office to learn more about the healthcare solutions we can create together.

  • A handful of GMS employees were honored to sponsor and participate in the 3rd Annual Rezod Construction Golf Outing, raising funds for Constructions Angels. It was heartbreaking to hear some stories from Construction Angels, but there was a sense of comfort in knowing an organization exists to help families on the back end of a work-site fatality and that there are ways that businesses can reduce workplace risks.

    Constructions workers working in a safe worksite of a businesses investing in risk management services.

    The Construction Angels Plan

    There are 14 fatalities each day in the United States in the construction industry. Construction Angels is a national non-profit organization created to facilitate access to financial services for immediate surviving family members of a construction worker who has lost his or her life while working on a job site. Founder Kristi Ronyak came from a family that was involved in the construction world and found herself in the same industry, but in a different capacity. Construction Angels is currently present in Florida (where it was established), Georgia, Ohio, and Michigan, but it continues to grow nationally. 

    REZOD’s Involvement

    When Rezod President Rich Mason found out about Construction Angels, he wanted to support the cause and help extend its presence in the state. Mason, and several employees at Rezod, have seen worksite claims and worked closely with GMS on risk management. Through the use of safety programs and risk specialists at GMS, Rezod has successfully worked to minimize exposure on each and every job and make safety part of the company’s culture. 

    GMS and the Construction Industry

    Currently, GMS has around 1,300 clients. Of those clients, 23 percent are in the construction industry. According to OSHA, there were 5,190 fatalities on the job in 2016, 991 or 21.1 percent of which were in construction. These stats show how significant it is to make safety a top priority. Construction Angels has done great work to aid these families after these tragic events, but we all have the same goal in working to address these safety issues on the forefront to minimize the risk of these events ever taking place. 

    What You Can Do to Manage Risk

    By working with GMS’ safety department, along with our HR and risk management specialists, companies can minimize exposure in the workplace and protect their most valuable assets. You can never predict the future, so it’s vital to ensure that your risk is under control each and every day. Contact GMS to see how we can help make your business simpler, safer and stronger.

  • Health insurance is one of the most valuable employee benefits a business can offer. However, many employers wonder whether they can decide which employees receive coverage and which employees do not.

    The answer depends on several factors, including your business size, employee classifications, and applicable benefits regulations.

    While employers generally cannot pick and choose individual employees to receive health insurance, there are situations where different groups of employees may receive different benefits based on legitimate classifications. Understanding these rules can help employers remain compliant while building a benefits package that fits their workforce.

    Key Takeaways

    • Small businesses with fewer than 50 full-time employees are generally not required to offer health insurance.
    • If an employer chooses to offer health insurance, coverage generally must be offered consistently to eligible employee groups.
    • Employers may be able to structure benefits differently for certain employee classifications.
    • Benefit decisions cannot be based on protected characteristics such as age, race, sex, disability, or other legally protected categories.
    • A well-designed benefits strategy can help businesses attract and retain employees while maintaining compliance.

    Do Small Businesses Have to Offer Health Insurance?

    For many small businesses, offering health insurance is optional.

    Businesses with fewer than 50 full-time employees are generally not required to provide health coverage. However, many employers choose to offer health insurance because it remains one of the most sought-after workplace benefits.

    In a competitive hiring environment, quality health benefits can help employers:

    • Attract qualified candidates
    • Improve retention
    • Enhance employee satisfaction
    • Strengthen workplace culture
    • Improve overall compensation packages

    While health insurance may not always be legally required, it is often an important business decision.

    Can Employers Offer Health Insurance to Only Certain Employees?

    In most cases, employers cannot simply select individual employees to receive health insurance while denying coverage to others in the same eligible group.

    Once an employer offers health insurance, coverage generally needs to be made available consistently to employees who fall within the same eligibility classification.

    For example, if an employer offers health insurance to one eligible full-time employee, that coverage generally should be available to other eligible full-time employees as well.

    This helps ensure fairness and reduces potential compliance concerns.

    Do Employers Have to Offer Coverage to Part-Time Employees?

    Not necessarily.

    The current article notes that employers are generally required to offer coverage to full-time equivalent employees, which are defined as employees averaging at least 30 hours per week or 130 hours per month.

    Part-time employees typically do not have to be included in an employer’s health plan.

    However, if an employer chooses to offer health coverage to part-time employees, that offering should generally be applied consistently across the part-time employee group.

    For many employers, this creates an important decision point when designing benefits programs.

    Can Employers Offer Different Health Benefits to Different Employee Groups?

    Yes, in certain situations.

    The current article explains that employers may be able to provide different levels of benefits based on legitimate employee classifications.

    Examples may include:

    Full-Time vs. Part-Time Employees

    Employers may structure eligibility differently for full-time and part-time workers.

    Geographic Location

    Employees working in different locations may have access to different plan options depending on local insurance availability and business needs.

    Length of Service

    Benefits may vary based on hire date or years of service when applied consistently within a classification.

    Job Classifications

    Some benefit structures may differ based on job title or employee class.

    The key is ensuring that distinctions are based on legitimate business classifications rather than discriminatory factors.

    What Benefit Decisions Are Considered Discriminatory?

    While employers may create different benefit structures based on certain employee classifications, those decisions cannot be based on protected characteristics.

    The current article identifies several factors that cannot be used as the basis for benefits decisions, including:

    • Race
    • Color
    • Sex
    • Religion
    • Health factors
    • National origin
    • Age
    • Disability
    • Genetic information

    Employers should carefully review benefits policies to ensure they comply with applicable employment and benefits regulations.

    Why Health Insurance Matters to Employees

    Health insurance continues to be one of the most valuable benefits employers can offer.

    Employees often evaluate prospective employers based on factors such as:

    • Medical coverage
    • Cost-sharing arrangements
    • Family coverage options
    • Prescription benefits
    • Access to care
    • Overall benefits value

    At GMS, we frequently work with business owners who want to offer competitive benefits but are concerned about rising costs and administrative complexity.

    Finding the right balance between affordability and employee value is often one of the biggest challenges employers face when designing benefits programs.

    How a PEO Can Help Manage Employee Benefits

    Many small business owners want to offer competitive health benefits but struggle with:

    • Rising premiums
    • Administrative responsibilities
    • Compliance requirements
    • Employee enrollment processes
    • Ongoing benefits management

    A Professional Employer Organization (PEO) can help simplify these responsibilities while providing access to quality group health plan options.

    The current article notes that GMS leverages the combined buying power of multiple small businesses to help employers access competitive health insurance offerings while also providing benefits administration support.

    Building a Competitive and Compliant Benefits Strategy

    Offering health insurance can play a significant role in attracting and retaining employees, but it’s important to understand the rules that govern eligibility and employee classifications.

    While employers may be able to structure benefits differently for certain employee groups, coverage decisions should always be applied consistently and in compliance with applicable regulations.

    By carefully evaluating benefits strategies and seeking expert guidance when needed, employers can create programs that support both their workforce and their business goals.

    Want to improve your employee benefits strategy? Contact GMS to learn how our benefits administration and group health insurance solutions can help your business remain competitive and compliant

    Frequently Asked Questions

    Can I offer health insurance only to managers?
    Benefit structures may differ based on legitimate employee classifications, but employers should ensure any distinctions comply with applicable benefits and employment regulations.
    Can I exclude part-time employees from health insurance?
    Generally, yes. The current article notes that employers are not typically required to offer health insurance to part-time employees.
    What happens if benefits decisions are considered discriminatory?

    Employers may face compliance and legal risks if benefit decisions are based on protected characteristics rather than legitimate business classifications.

    How can a PEO help with benefits administration?
    A PEO can help employers manage benefits enrollment, compliance, administration, and access to group health insurance options while reducing administrative burdens.

  • Even if you only follow on the fringes of healthcare reform, the inception of the ACA in 2010 may have shed light on the lack of bipartisan effort surrounding reform policies. Regardless of which side of the political spectrum you sit, the ACA (Patient Protection and Affordable Care Act) is widely regarded as the most impactful healthcare policy since the rollout of Medicare & Medicaid by President Lyndon B. Johnson in 1965. Irrespective of the clout this policy holds in the eyes of leaders within our domestic healthcare system, it has not operated within its short eight-year tenure without controversy.  

    The debate surrounding the longevity of this policy continued last Thursday (June 7, 2018) in unprecedented manner as the Justice Department filed a briefing recommending that the U.S. District Court of Texas (Fort Worth Division) rule the insurance reform provisions of the ACA unconstitutional.

    Book of recent updates in healthcare reform.

    How We Got Here

    To understand the severity of the proposed lawsuit, we must briefly glance at NFIB v. Sebelius, a previous legal decision surrounding the ACA which cleared a path for the above briefing to be filed.

    In 2012, a group of 13 states, a pair of individual plaintiffs, and the National Federation of Independent Businesses filed a motion (in the District court of Northern Florida) that the ACA was unconstitutional. According to Supreme Court multimedia archive Oyez, “The plaintiffs argued that: (1) the individual mandate exceeded Congress’ enumerated powers under the Commerce Clause; (2) the Medicaid expansions were unconstitutionally coercive; and (3) the employer mandate impermissibly interfered with state sovereignty.“ The conclusion of the suit resulted in the Supreme Court backing the ACA under the precedence that the individual mandate “is an appropriate use of Congress’ power under the taxing Clause and is, therefore, constitutional” according to a case brief for NFIB v. Sebelius.

    The important take away from this dispute is that the ACA was backed by Congress under the idea that the individual mandate was a tax and that it was “severable” from other provisions included in the ACA. This means that the judgement of one mandate within the ACA can be siloed and will not affect the policy as a whole. 

    The Filing at a Glance

    On Dec. 22, 2017, the individual mandate was repealed as a part of the Tax Cuts and Jobs Act of 2017 written in by President Trump and his administration. In ordinance with the repeal, many right-wing-leaning states have proposed the idea that an individual mandate (as of today, the requirement to have qualifying medical insurance still exists) without a penalty to do so (previously written in as a tax) is unconstitutional. The process of proving unconstitutionality within the ACA is based on “inseverability.” In short, if one mandate within the ACA is unconstitutional, the entire ACA is then unconstitutional and should be eradicated. 

    Now as defined above, the unique nature of this case is that the Department of Justice not only supports this idea but is urging the District Supreme Court to render the ACA invalid without reference to the previously approved filing of severability in 2012. The inconsistencies in the law from 2012 to current are unnerving to many analysts following this case. The provisions have been approved by Congress and signed into federal law and are not meant to be easily challenged or rehashed within a legal setting with such overarching consequences. In 2016, the domestic healthcare system within the U.S. reached $3.3 trillion dollars annually and accounted for 17.9 percent of the Gross Domestic Product. The security of such would be woefully undefined if the ACA (and mandates within it) were to be diminished without proper recourse or without a proper replacement. 

    Impacts of a Successful Repeal 

    The major concerns surrounding the impending decision are ones that largely propelled the positive social opinion of the ACA. Namely, the pre-existing conditions clause that prevented individuals with chronic illnesses from being denied coverage through ACA exchanges. The current “community rating” system of the ACA is also at risk if this motion goes without congressional defense.

    With or without the most polarizing and divisive reform policy of the last five decades, the future of our domestic healthcare system is cloudy at best. Only informed citizens having insightful conversations will spur positive change. If until now you’ve been asleep at the wheel regarding healthcare reform, this briefing should serve as a wake-up call.

    Small business owners are especially vulnerable to the ongoing healthcare uncertainty. It’s difficult to keep up with the ACA and other key policies that can affect your business. At Group Management Services, we provide owners with access to quality health insurance coverage at reasonable rates and keep them informed about changes in policies that can impact their business. Contact GMS today to talk to one of our experts about how we can help your business through these uncertain times.

  • Small businesses can pay employees electronically through methods such as direct deposit, payroll cards, digital payment platforms, and other electronic payroll solutions. Electronic payment methods can improve payroll efficiency, reduce administrative work, and help ensure employees receive their wages accurately and on time.

    As more businesses move away from paper checks, electronic payroll options continue to grow in popularity. However, employers must understand the advantages, limitations, and compliance requirements associated with each payment method before deciding which solution best fits their workforce.

    Let’s explore the most common electronic payroll options available to small businesses.

    Why Are Businesses Moving Away From Paper Paychecks?

    Traditional paper checks can create challenges for both employers and employees.

    Some common drawbacks include:

    • Printing and distribution costs
    • Risk of lost or stolen checks
    • Delayed delivery
    • Additional administrative work
    • Manual payroll processing

    Electronic payment methods often streamline payroll administration and provide employees with faster access to their wages.

    What Is Direct Deposit?

    Direct deposit is the most common electronic method for paying employees.

    With direct deposit, an employee’s wages are transferred electronically from the employer’s bank account directly into the employee’s designated bank account.

    Benefits Of Direct Deposit

    • Faster payroll processing
    • Reduced paperwork
    • Improved accuracy
    • Secure payment delivery
    • Convenient access to wages

    Many employees prefer direct deposit because funds are typically available on payday without requiring a trip to the bank.

    Are Payroll Cards A Good Alternative To Direct Deposit?

    Payroll cards can serve as an alternative for employees who do not have a traditional bank account.

    A payroll card functions similarly to a prepaid debit card. Each pay period, the employee’s wages are loaded onto the card electronically.

    Benefits Of Payroll Cards

    • Access to electronic wage payments without a bank account
    • Reduced payroll administration
    • Faster payment access
    • Convenience for employees

    Before implementing payroll cards, employers should review applicable state laws and disclose any fees that employees may incur.

    Can Businesses Use Digital Payment Apps To Pay Employees?

    Some businesses explore digital payment platforms and mobile payment apps as payroll solutions.

    While these tools may work well for certain business transactions, employers should carefully evaluate whether a platform complies with payroll, tax, recordkeeping, and wage payment requirements.

    Employers should also consider:

    • Employee access
    • Transaction limits
    • Processing timelines
    • Reporting capabilities
    • Compliance obligations

    Not every payment app is designed to handle payroll administration.

    What Is An Automated Payroll System?

    An automated payroll system uses payroll software to calculate wages, withhold taxes, process payments, and maintain payroll records.

    Many payroll platforms offer electronic payment capabilities as part of a broader payroll management solution.

    Automated payroll systems can help businesses:

    • Process payroll faster
    • Reduce errors
    • Improve compliance
    • Generate payroll reports
    • Manage employee records
    • Track payroll taxes

    For growing businesses, payroll automation often provides significant time savings.

    Which Electronic Payment Method Is Best For Small Businesses?

    The best payment method depends on factors such as workforce needs, business size, and payroll processes.

    Many businesses choose direct deposit because it offers convenience, reliability, and broad employee acceptance.

    However, businesses with employees who do not have bank accounts may benefit from offering payroll cards as an additional option.

    When comparing solutions, employers should evaluate:

    • Cost
    • Employee preferences
    • Security features
    • Compliance requirements
    • Administrative burden
    • Ease of implementation

    The right solution should support both business operations and employee needs.

    What Payroll Compliance Requirements Apply To Electronic Payments?

    Regardless of the payment method used, employers remain responsible for complying with wage and hour laws and payroll requirements.

    Employers should ensure:

    • Employees are paid on time
    • Payroll taxes are calculated correctly
    • Required payroll records are maintained
    • Wage statements are provided when required
    • State-specific payroll requirements are followed

    Electronic payroll methods do not eliminate compliance obligations.

    How Can Electronic Payroll Improve The Employee Experience?

    Employees often expect payroll processes to be fast, accurate, and convenient.

    Electronic payment methods can improve the employee experience by providing:

    • Faster access to wages
    • Greater payment security
    • Reduced risk of lost checks
    • Convenient access to payment records
    • Simplified banking and budgeting

    A smoother payroll experience can contribute to employee satisfaction and reduce payroll-related questions.

    What Are The Challenges Of Electronic Payroll Payments?

    While electronic payment methods offer many benefits, businesses should also be aware of potential challenges.

    Common considerations include:

    Employee Preferences

    Not all employees may want to receive wages electronically.

    Banking Access

    Some employees may not maintain traditional bank accounts.

    Technology Requirements

    Electronic payroll systems require software, security measures, and proper administration.

    Compliance Obligations

    State wage payment laws may affect which payment options employers can offer.

    Understanding these challenges can help businesses choose the right solution and avoid implementation issues.

    How Can Payroll Outsourcing Simplify Employee Payments?

    Managing payroll internally can become increasingly time-consuming as a business grows.

    Payroll outsourcing can help employers:

    • Process payroll accurately
    • Manage electronic payments
    • Calculate payroll taxes
    • Maintain records
    • Reduce compliance risks
    • Save administrative time

    By outsourcing payroll functions, business owners can focus on operating and growing their business rather than managing complex payroll processes.

    How GMS Helps Businesses Streamline Payroll Administration

    Selecting the right electronic payroll solution is only one part of managing employee payments effectively. Employers must also navigate payroll taxes, compliance requirements, reporting obligations, and ongoing payroll administration.

    GMS helps businesses streamline payroll processing through payroll administration services, tax support, compliance guidance, and workforce management solutions. Our experts help employers simplify payroll while improving accuracy and efficiency.

    Contact GMS today to learn how our payroll solutions can help your business manage employee payments more effectively.

    Frequently Asked Questions

    Can an employer require employees to use direct deposit?

    The answer depends on state law. Some states allow employers to require direct deposit under certain circumstances, while others require alternative payment options.

    Can employees split their paycheck between multiple bank accounts?

    Many payroll providers allow employees to allocate portions of their paycheck to multiple accounts, such as checking and savings accounts.

    What should a business do if an electronic payroll payment fails?

    Employers should investigate the issue immediately, communicate with the employee, and take prompt steps to ensure wages are paid in accordance with applicable laws.

    Do electronic payroll methods reduce payroll costs?

    In many cases, electronic payroll can reduce costs associated with printing, mailing, distributing, and replacing paper checks.

  • The last election cycle may have added to the number of states with legalized marijuana, but is your business ready for it? Michigan became the 10th state to legalize recreational marijuana this past midterm election, ushering in the creation of the Michigan Regulation and Taxation of Marihuana Act (MRTMA). As more states adopt these measures, it’s a good time to consider how legal marijuana affects your business and what you can do to protect yourself.

    A small business owner and an employee reviewing marijuana policies in the employee handbook.

    What Does Legalized Marijuana Mean for Small Business Owners?

    While MRTMA does legalize the use of recreational marijuana, it doesn’t do so at the expense of business owners. In fact, the new law doesn’t change much in terms of an employer’s ability to maintain the same drug and alcohol policy that was in place before the law. Per the MRTMA itself, the act still allows employers to do the following:

    • Ban conduct allowed by this act in any workplace or on company property
    • Discipline, discharge, or take other adverse employment actions against an employee for violations of a workplace drug policy or for working while under the influence
    • Refuse to hire a person after failing a pre-employment drug test or take adverse action against an existing employee in terms of tenure, terms, conditions, or employment privileges for working under the influence

    There’s also the fact that recreational marijuana is still illegal in terms of federal law, which has generally trumped state laws in marijuana-related cases so far. While Michigan’s new law and federal law in general doesn’t reign in an employer’s ability to maintain a drug-free workplace, that doesn’t mean that you shouldn’t takes steps to protect your business. It’s up to you to set clear guidelines that make your company’s policies are clear to your employees.

    What You Can Do to Protect Your Company

    Institute a Drug-Free Workplace Policy

    Regardless of whether you’re in a state like Michigan that has legalized recreational marijuana or not, it’s good to establish a written drug-free workplace policy (DFWP). This policy should make it clear that employees should never have any illicit substances on company grounds.

    Consider Drug Testing

    If you plan to test your employees for drug use, you need to have your policy carefully outlined to make sure that your employees have a clear understanding of your drug testing policy. This includes expectations and rules associated with each type of test, such as when they can happen, testing timelines and steps, and what’s expected of the employees. The types of drug test include:

    • Pre-employment tests for applicants
    • Probable cause tests for reasonable suspicion
    • Arbitrary tests on set dates (such as work anniversaries)
    • Random tests

    Of course, how you administer these tests can vary depending on your state. For example, Michigan has no law addressing drug testing regulations for private employers if your policies are not found to be discriminatory or violate any other legal provision. Other states may have set regulations for what types of test can be done and how those tests and conducted. OHS, Inc. provides abstracts of each state’s workplace drug testing laws, although it’s good to check local laws yourself to make sure you’re in compliance with any necessary rules and regulations.

    Set Discipline Standards

    In a way, marijuana can be treated the same way as alcohol; employees can’t come to work impaired, and they’ll be in trouble if they do. You’ll want to set firm policies to protect your business in case there are any incidents, but you should also consider whether your state has any protections in place for marijuana users, especially for places where medical marijuana is allowed.

    Of course, these potential protections can vary greatly based on your location. The Society for Human Resource Management notes that employers in Vermont and Minnesota “can’t fire someone for the first failed drug test if the employee agrees to complete a rehabilitation program.” The Small Business Association of Michigan highlights a Maine law that “prohibits adverse actions against employees for using marijuana outside of work.” Federal law may generally prevail, but adjusting your discipline standards to fit local laws can help you avoid costly legal battles while still affording your company some protection.

    It’s also crucial that, no matter how you decide to discipline employees for failed drug tests, you treat everyone equally. If you use a failed test as the basis for firing one employee but refrain from punishing a separate long-term employee, the fired employee could argue that your inconsistent application of your own rules was discriminatory. That could lead to litigation and a long, costly headache that could be avoided.

    Another good item to include is some language involving what it means if an employee attempts to delay a test or outright refuses to take one. If you decide to drug test employees, you should include a clear definition of “refusing to test” to offer you some protection. If you find that an employee is too evasive about drug testing and should be dismissed.

    Prepare Your Business for Marijuana Laws

    It’s not going to get any easier trying to figure out how marijuana laws will impact your business. Between new states adding legal marijuana and various regulations, it can be an absolute headache to keep track of everything your business should do to protect itself unless you’re an expert. If an employee gets hurt while under the influence of marijuana, the process can be even more complicated. Because of that, it’s best to turn to an expert to make sure you stay on top of federal and state marijuana laws.

    A Professional Employer Organization like GMS can help you navigate through confusing, ever-changing regulations and update your handbooks to protect your business. We have experts in multiple locations across the country, including at our Detroit office. Contact us today to talk to one of our experts about how we can help you prepare for marijuana regulation and strengthen your business in other ways.

  • What do you do when a worker gets injured on the job? It’s important to make sure your employees are protected in the case of a job-related injury, while also making sure that your business is protected. 

    Every company is susceptible to workplace injuries. In 2017, the U.S. Bureau of Labor Statistics reported about 2.8 million nonfatal workplace injuries, ranging from slips, trips, and falls to muscle strains.

    As an employer, finding ways to contain costs in all areas of your business are crucial, but there is a fine line between saving money and ensuring the health and recovery of your employees in these situations. One way to set yourself up for the best possible result of a workers’ compensation claim is to utilize a nurse case manager.

     A nurse case manager can help reduce the cost of worker’s compensation claims.

    Role of a Nurse Case Manager in Workers Compensation

    A nurse case manager helps address the medical needs of your employee, while keeping open communication between all parties involved. According to mPower by Mitchell, a group of technology leaders and insurance industry experts, “Engaging a nurse case manager on a claim can save an average of $6,100 in medical and indemnity costs, resulting in an 8:1 ROI.” 

    Group Management Services (GMS) understands the importance of having a nurse case manager who is closely involved in moving claims forward while focusing on your employee’s health and recovery. Here’s how our in-house nurse case manage can reduce costs:

     

    GMS In-House Nurse Case Manager Others
    Provides prompt medical review of complicated industrial injuries Take a “wait and see” approach
    Fast tracks claims on Day One to an in-house case manager dedicated toward a positive claim resolution Employees are misinformed by unqualified outside sources
    Spots “transitional duty opportunities” for a swift return to work Incur replacement labor costs
    Reduces likelihood of attorney involvement Open themselves up to “Ambulance Chasers”
    Focus on improving morale and encouraging positive outcomes for all parties Poor company morale leading to “copycat” claims
    Collaborates team approach in working hand-in-hand with GMS claim examiners Potential for errors in paperwork without a qualified professional
    Corresponds with medical personnel to improve efficiency of treatment in identifying all work-related conditions Delayed care drives costs and increases frustration
    Controls medical tests and coordinates care to improve Late diagnosis can lead to less efficient treatment and delayed recovery
    Identifies red flags for fraud and potential Rx abuse Increased costs and opiate addiction risks
     
    As you can see, when you have someone closely involved to moving the claim forward and focusing on your employee’s health and recovery, everyone wins. Helmsman Management Services, a subsidiary of Liberty Mutual Insurance, compiled the injury data from over 40,000 claims and found that claims involving a nurse case manager had:
    • 16 percent lower future medical costs
    • 15 percent lower overall claim costs
    • 12 percent faster claims resolution
    In addition to cost savings, when you partner with GMS for workers’ compensation claims management, you’ll be able to leave the details to us. GMS will oversee the process of claims management and work closely with carriers to ensure your best interests are always at the forefront. We’ll help with claims investigation, claims certification, hearing representation, and merit rate predictions, so you can keep the focus on growing your business.
     

    More Than a Risk Management Company

    An in-house nurse case manager is just one of the ways GMS can help save you time and money when it comes to the administrative functions of running your business and managing your employees. When you partner with GMS, our experts can assure you have everything covered when it comes to payroll, human resources, risk management, and employee benefits. Contact us today to learn more. 

  • As a small business owner, you’re in control of your business. However, things that you can’t control can impact your business as well. 

    Certain laws and executive orders can potentially require you to change certain processes and policies to protect your company. It’s important to keep an eye out for any news that can lead you to review current practices and make changes, such as when Michigan Gov. Gretchen Whitmer signed an executive order to increase protections that prohibit anti-LGBTQ discrimination in January of 2019. Whether your business is in Michigan or not, it’s a good time to consider how orders like these can impact your day-to-day operations.

    A job applicant being interviewed by a small business following non-discrimatory hiring practices. 

    What Does This Mean for Your Small Business?

    For most businesses, Whitmer’s order won’t change all that much. Outgoing Gov. Rick Snyder signed a directive in December of 2018 that, per the Detroit Free Press, “barred state contractors from discriminating against gay or transgender employees,” with exceptions for churches and religiously-affiliated organizations. The new order removes that exception, but that still puts most small business owners in the same spot as before.

    The bigger takeaway from this order is that it’s a part of a bigger trend across the U.S. to extend protections to people seeking employment, whether it’s because of sexual orientation and gender identity or another reason. In addition, LGBTQ and gender discrimination claims are expensive. The U.S. Equal Employment Opportunity Commission (EEOC) enforces discrimination laws on a federal level and has forced offending employers to pay out more than $3.3 million in monetary relief. As discrimination laws evolve across the country, it’s important to be proactive about potential changes instead of waiting for an issue to arise.

    How You Can Protect Your Business During the Hiring Process

    Discrimination is a matter of hiring–or not hiring–a candidate for reasons that aren’t based on an applicant’s qualifications. Each state’s anti-discrimination laws can differ, but the best way to avoid potential issues is to have a hiring process in place that treats everyone equally and documents interviews so that you can protect yourself from any anti-discrimination claims.

    Establish Set Interview Questions

    If you don’t already, create a regimented interview process with standard interview questions that you ask every candidate. This will help you give each applicant an equal opportunity to make their case for the job. You also need to be careful about the questions you ask. Making direct inquiries that impact gender, race, age, or other protected criteria can lead to trouble. 

    For example, the Yale Office of Career Strategy notes that inquiries about family information status are potentially illegal in a job interview. A question as simple as “Are you married?” can be viewed as a way to probe for personal information or to even determine a candidate’s sexual orientation, even if it was an innocent attempt at conversation.

    Don’t Treat Some Candidates Differently than Others During the Interview Process

    No matter the opening, it’s important to conduct every interview the same way no matter who sits in front of you. Use your set list of questions and provide the same type of feedback. Follow-up questions can certainly vary depending on certain responses or specific qualifications, but it’s good to give everyone the same chance to answer the same base list of questions.

    Take Notes and Document the Results

    As you go through the interview, make sure to write detailed notes about a candidate’s responses for future evaluation. Not only are these notes useful if you have to compare a couple of close candidates, it creates a record of what was said in case an applicant tries to make a discrimination claim. In this case, you can present information on why you hired one candidate over another based on their responses and your notes. 

    If possible, it’s also good to conduct interviews with another colleague so that he or she can take notes as well. Not only will this give you another person to help during the interview, it gives you a second set of recorded notes to use in case any claims are filed.

    Keep Your Hiring Practices Ahead of the Curve 

    Finding and hiring the right job candidates is stressful. When you add in anti-discrimination considerations and other potential pitfalls that you can face in the hiring process, it can be overwhelming. Rules and regulations will continue to change over time, but there is a way that you can be proactive and protect your business.

    As a Professional Employer Organization, GMS can be the partner you need to shoulder the administrative burden and strengthen your business’ HR functions. Our team of experts allow you to outsource everything from payroll administration to employee recruitment and training programs. In turn, you not only save the time necessary to run your business, you gain the advantage of working with a group that can keep you up to date on any issues that may impact your company.

    Ready to keep your business ahead of the curve? Contact our Detroit office or one of our other locations across the country to talk to one of our experts about how we can help you strengthen your business today.

  • Running a business comes with more responsibility than most people realize. The administrative requirements to stay compliant while growing a successful business can overwhelm most. Some business owners will hire office managers, an HR generalist, interns, etc., but some completely put off the HR needs of their company. This can cause major issues down the line with compliance issues, payroll dilemmas, job description disputes, and the list goes on.

    The Professional Employer Organization (PEO) industry exists to help business owners outsource their back-office functions to focus on the real reason they developed their company, which is to generate revenue. 

    A happy small business owner who outsources key business functions to a PEO. 

    Five Indicators That it Might be Time to Partner with a PEO

    The administrative functions of running your business have become overwhelming

    If you’re trying to find more hours in the day for you and your staff, using a PEO may be a good way for you to free up time. Many growing businesses find it hard to maintain efficient administrative processes as they expand. GMS can help streamline the payroll process, handle compliance issues, assist with employee recruitment, provide salary analysis, and much more.

    You aren’t 100 percent confident that your business is compliant with State and Federal regulations

    Face it, the business of being a business owner has become more and more complicated with rising costs and liabilities of having employees. Just through the Affordable Care Act alone, there have been about 900 new regulations enacted in recent years. Are you aware of all the changes? GMS provides the HR expertise with a designated and certified account manager attached to an HRIS platform to ensure compliance with all federal and state employment regulations.

    You lack the financial resources to develop a full HR department

    Building an HR department can be time-consuming and expensive. The median salary for a Human Resource Manager is $110,112 per the Bureau of Labor Statistics. Depending on the need, an in-house department can involve hiring an HR Director, using a payroll company, securing an EPLI policy, paying a 401(k) audit fee, and paying attorney fees, all of which can add up quickly. GMS can often provide a broad array of services and qualified experts without having to hire internally.

    You want to focus more on the growth of your business

    Outsourcing the daily administrative aspects of running your business frees you up to focus your attention on growing your business. You retain full control over decision-making, employee responsibilities, core job functions and requirements, hiring decisions, and the structure of your organization. While GMS can offer input in these areas, you remain in control of all final decisions. This is the foundation of the co-employment relationship that GMS creates with its clients.

    You’re in a high-risk industry

    Small businesses can be paralyzed by compliance requirements with labor laws, tax reporting, and workers’ compensation insurance. The list of acronyms – like FSLA, FMLA, EEOC, HIPPA, PPACA, FUTA, and SUTA – are enough to cover the entire alphabet while overwhelming any business owner. If you have employees, you must provide them with workers’ compensation insurance that will pay wages and medical expenses in the event of hours lost because of workplace injuries. By partnering with a PEO, you can rest assured that your business and your employees are protected.

    Ease Your Workload and Strengthen Your Business at the Same Time with a PEO 

    Businesses are created from a passion, and that passion doesn’t usually include handling all the administrative functions required to keep your business running. GMS takes those burdens off the business owner, so they can focus on the core functions of their business. Contact us today to see how we can make your business simpler, safer, and stronger!

  • In the 12 years that I’ve been working for GMS, I’ve met with thousands of business owners in hundreds of industries. While every company has their unique problems and issues, some issues tend to be universal.  In the 26 years that GMS has been in business, we have found that most business owners… 

    • Think they’re paying too much in worker’s compensation premiums and not getting enough in return for it.
    • Want to offer their employees great health insurance, but don’t want to pay the ridiculous premiums being charged.
    • Don’t fight their unemployment claims because “it’s just not worth it and they’re going to get it anyway.”
    • Hate the stupid bureaucratic paperwork they have to go through, keeping them from more important tasks.
    • Have trouble finding good employees.
    • Have a hard time keeping them when they do find them because they’re losing them to other companies with better wages and benefits.

    Did I miss anything?

    A small business growing with the help of a PEO serving as an outsourced HR department. 

    Why Do Big Competitors Have an Advantage?

    So now, small business owners often compete against bigger companies and are at a distinct disadvantage. Why? Because large companies tend to have a few things that small businesses don’t:

    • A payroll department that pays the employees, takes care of their W-2s, does all their quarterly filings, etc.
    • An internal benefits department that gets the best rates for them on their ancillary benefits and 401k, and is more often than not, self-insured for their healthcare, giving them the data they need to better manage their benefits and control those costs.
    • An internal risk department that manages all their workers’ comp and unemployment claims and has the legal power to contest claims that they feel are fraudulent.
    • An HR department that handles the entire lifecycle of an employee from the recruiting, either done internally or through a service, onboarding, training, and eventual separation by departure or retirement.

    How You Can Compete

    Fortunately, there are measures you can take to stand with the competition. If you’re like most companies your size, you can:

    • Hire an accountant or a payroll service to handle your payroll.
    • Use a broker for your benefits and rely on your accountant or financial advisor to set you up with the best possible retirement plan option.
    • Sign up with a TPA or insurance broker to manage your worker’s comp, hoping for the best possible discount and then pray you don’t lose it.
    • Waste your time fighting unemployment claims, or worse yet, don’t contest them at all.
    • Use a recruiter, word of mouth or a sign in your front yard trying to find help and then hope that you’re doing all the right things from a regulatory standpoint.

    Well, that’s why the PEO industry, Professional Employer Organization, was created back in the 1970s and has grown to a $176 billion industry and why GMS is rapidly becoming one of the largest PEOs in the country. By acting as an outsourced HR department, our clients get all the same benefits of a large company and you can get:  

    • An internal payroll department that takes on all the tax liability of your employees.
    • A benefits department that can get you the best rates and possibly even into a self-insured healthcare plan with minimal risk. You also have the option of a 401k plan that is low cost and relieves you of fiduciary responsibility.
    • A risk management department that is self-insured for worker’s comp, providing better rates as well as complimentary legal service on all claims, both for worker’s comp and unemployment.
    • An HR department that handles everything from the onboarding of employees to termination and everything in between as well as keeping you compliant with all government regulations.

    The best part is that you’re getting all these specialists for less than it would cost you to hire one of them in even a part-time capacity. At its basic level, a PEO consolidates your vendors, increases your buying power, and provides HR support and recruiting assistance to help you in that growth. How do we do that? Through the PEO relationship.

    We partner with our clients and mutually share or co-employ our clients’ employees. By adding their employees to our PEO, GMS is a 26,000-employee company that has the leverage to be self-insured for our worker’s comp and healthcare and get better rates on everything from 401k to vision, dental, life, disability, drug testing, background checks, etc.  Virtually everything necessary for employee management.

    Contact GMS today to talk to one of our experts about what we can do to level the playing field for your business.