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  • It’s no surprise that it’ll take a lot of questions to determine whether a job candidate is the right fit for your company. However, you may not know that there are quite a few interview questions that can land your company in trouble. 

    One example of this is the city of Cincinnati’s new Salary Equity Ordinance, a measure that passed in 2019 and will take effect in March 2020. At that time, it will be illegal for employers in Cincinnati to ask about a job candidate’s pay history. This measure impacts any step of the hiring process, ranging from job ads to employee interviews.

    While Cincinnati employers must adjust to the Salary Equity Ordinance, there are many other types of questions that are disallowed from the interview process across the country. An illegal question can lead to a variety of consequences, including a discrimination lawsuit or an investigation by the U.S. Equal Employment Opportunity Commission (EEOC). This means you’ll want to brush up on which interview questions can lead to EEOC complaints.

    HR managers after asking an illegal job interview question. 

    Problematic Topics for Job Interviews

    Some illegal interview inquiries are clear – you shouldn’t ask questions about a job candidate’s race or sexual identity. While those two topics pose apparent discrimination problems, others dangerous questions are not as apparent. 

    Even questions asked with the best of intentions can be flagged as illegal. What you may see as an innocuous attempt at small talk can be interpreted as a topic that’s off limits. As a result, here are some topics that should be addressed carefully or avoided altogether.

    National origin and citizenship

    Any question regarding a candidates’ national origin can be an issue. The Immigration Reform and Control Act of 1986 (IRCA) makes it illegal for employers to base hiring decisions on a person’s citizenship or immigration status. Even a question asking about a candidate’s accent can be misconstrued as an attempt at discrimination. However, it’s acceptable to ask whether a candidate can legally work in the U.S., provide the required documentation if hired, and read, write, and speak English if required by the job.

    Religion

    If a question involves a candidate’s potential religion, you should probably leave it unsaid. Even roundabout questions like whether a candidate will need time off for religious holidays can be seen as non-job related and an attempt to discriminate against a person for his or her beliefs. According to the Yale Center for International and Professional Experience, the only employers allowed use religious affiliation as a basis for hiring are those “whose purpose and character is primarily religious.”

    Pregnancy status

    It’s not acceptable to ask about their pregnancy – even if the person interviewed is clearly pregnant. Not only does this violate set pregnancy discrimination laws, it can also potentially appear as gender discrimination since male candidates won’t have to answer the same questions. General questions about any future planned leave is acceptable if the question isn’t tied to the pregnancy. Also, feel free to ask other neutral job-related questions involving certain work responsibilities to see if the candidate can perform necessary tasks.

    Marital status or number of children

    Like pregnancy, you aren’t permitted to ask job candidates whether they’re married or have any children. Asking about these may lead an employer to discriminate against a candidate because they may need some time to take care of their current or future children. Instead, ask about specific job-related responsibilities to see if they can perform these tasks, such as travel requirements or set work hours.

    Disability

    The Americans with Disabilities Act (ADA) makes it illegal for employers to ask a range of questions that “are likely to reveal the existence of a disability before making a job offer.” That means any questions regarding how many sick days an applicant took in the past year or what drugs they take.

    It’s also generally disallowed to ask if an applicant will need a reasonable accommodation for a job unless “the employer knows that an applicant has a disability, and it is reasonable to question whether the disability might pose difficulties for the individual in performing a specific job task” For example, the EEOC writes that it’s fine to ask about reasonable accommodation if the applicant voluntarily revealed his or her disability or there’s a clear visual sign, such as if the applicant uses a cane for a severe limp.

    Age or genetic information

    It’s only acceptable to ask about an applicant’s age if it’s directly tied to their job. For example, someone who works at a bar or some other age 21-plus environment will need to provide proof of their age. Even a question like when an applicant graduated from high school can be viewed as an attempt to identify a person’s age.

    Arrest record

    According to the EEOC, there is no federal law preventing employers from asking candidates about their criminal history – although “Using criminal history information to make employment decisions may violate Title VII of the Civil Rights Act of 1964.” It’s important to note that while there’s no federal law against asking about arrest records, many states ban the practice. As such, make sure to check your state’s laws before asking candidates about their criminal history.

    Protect Your Company During the Hiring Process

    Adding a new employee is an exciting step for any business, but it’s important to make sure that your business proceed with caution. Fortunately, there are many steps that you can take to avoid illegal interview questions. These include:

    • Establishing set interview questions for every candidate
    • Treat every candidate the same during the interview process
    • Take notes and document the results
    • Have more than one interviewer in the room

    Another way to help your business is to hire a Professional Employer Organization that can not only oversee employee hiring and training, but also help you shoulder the administrative burden created by key HR functions. The GMS team can help you stay up to date on the latest rules and regulations while managing everything from your company’s payroll to employee benefits plans.

    Whether you need HR services in Cincinnati or in some other location, GMS can help. Contact us today to talk to one of our experts about what we can do to help you protect your company now and prepare for the future.

  • Determining pay frequency can be challenging for business owners. While most employees prefer to be paid more often, a higher pay frequency can cost employers. Not to mention, there are federal and state laws that set standards for how employees are paid. That’s why exploring the different pay period options and federal and state payday laws is critical to help you choose the right pay frequency for your business and employees.

     Pay day.

    Pay Periods

    A pay period is a recurring length of time that determines how often employees are paid. Depending on your state, there are several to choose from, and each has its pros and cons (but we’ll get to that later). The typical options for paying employees are:

    • Weekly: This is usually on the same day of the week, like Friday, for the previous week’s work. Employees are paid 52 paychecks a year.
    • Biweekly: Employees are paid every other week, either for the previous two weeks or the two weeks before that. This pay period results in 26 paychecks a year.
    • Semimonthly: Workers are paid twice a month, usually on the first and 15th each month, receiving 24 paychecks a year.
    • Monthly: This is typically either on the last day of the month or the first day of the following month. Employees receive 12 paychecks a year.

     

    Federal Pay Frequency Laws

    Federal law does not set requirements for how often you have to pay employees—that’s left up to the states. However, federal laws do say that employers must keep a reliable and consistent pay frequency. This means that, for example, you can’t pay employees weekly one month and then biweekly the next.

    Under certain circumstances, you may be allowed to change your pay frequency. In order to do, so the following must apply:

    • You have a legitimate business reason.
    • The change is permanent.
    • You are not avoiding overtime or minimum wages.
    • You don’t unreasonably delay payment.

     

    State Pay Frequency Laws

    Almost every state has pay frequency laws indicating how often you should pay employees. Many states require a monthly, semimonthly, biweekly, or weekly payroll as the minimum frequency for paying employees. Keep in mind, you can always pay employees more often than the state requires.

    For example, Ohio requires a semimonthly payroll, but that is not the only pay frequency you can choose in that state. You can also pay employees biweekly or weekly, as long as you at least pay employees semimonthly. Or, in New Jersey, you can pay executive and supervisory employees at least once a month but must pay all other employees semimonthly at minimum. Find your state in the map below to see what the minimum pay frequency is for your business.

     

     

    Choosing a Pay Frequency

    After looking at your state’s pay frequency laws, you’ll have to determine how often to pay employees. While employees typically prefer to be paid more frequently, you’ll also have to consider factors that affect your business.

    Payment methods

    Depending on the way your employees are paid, certain payment methods are more of a hassle than they’re worth. For example, if you’re still using outdated methods like checks or cash to pay employees, then upping your pay frequency means spending more money on printing supplies and more time on bookkeeping. Even with direct deposit, higher pay frequency can mean more transaction fees if you’re not utilizing online payroll software.

    Employee benefits

    You’ll also want to factor in benefits. Employee benefits like health insurance typically run on a monthly basis, so paying employees monthly or semimonthly makes calculating voluntary paycheck deductions easier than if you were to pay on a biweekly or weekly schedule.

    Overtime

    While overtime isn’t a factor for salaried employees, it can be difficult to track for hourly workers if they’re paid on a semimonthly or monthly basis when the pay date falls in the middle of the week. For example, if employees are paid on a Wednesday, it can be difficult to calculate overtime for that week because that week’s pay is split into two different pay periods.

    Business owners typically find it’s best to pay different employees at different times. Many choose to pay salaried employees on a semimonthly or monthly basis, and weekly or biweekly for hourly workers.

     

    Payroll Services

    For small business owners, managing payroll can be one of the most time-consuming and challenging tasks there is. Need assistance? Outsourcing payroll administration to a professional employer organization (PEO) like Group Management Services (GMS) can ensure your employees are paid on time, every time. From electronic payroll processing to software to taxes, GMS takes an active approach managing payroll, so you can spend the extra, time, money, and energy growing your business. In addition to payroll services, GMS offers a full suite of HR services that compliment payroll administration, including human resources, risk management, employee benefits, and more.

    Contact GMS today to see how we can help manage payroll at your organization.

  • As we approach the 2020 political season, healthcare remains an eternal “hot topic” issue; one that acts as an economist’s reoccurring bad dream. Much like a bad dream, the obvious warning signs of our domestic system’s atrophy disappear into the cognition of the economist’s mind and are forgotten by mid-morning. The economist, much like the rest of the country, has an eerie feeling due to this reoccurring healthcare nightmare, but can’t quite seem to pinpoint the root of their discomfort or begin to answer the lingering paradox of “How can we make healthcare in the U.S. financially sustainable?”

    The answer to that question is a large, complex, and convoluted issue to tackle. An alternative approach is to look at our ongoing mistakes as an industry and start to peel back some of the fraud, waste, and abuse at least long enough to get our collective head above water to propose a semi-legitimate long-term solution. 

    A doctor pocketing money from a staggering healthcare bill. 

    Diagnosing a Questionable Healthcare Diagnosis

    Individuals, facilities, insurance entities, CMS, and providers are just some of the key players necessary to stop the financial hemorrhaging. Not often enough do we evaluate the role of the physician from an economic standpoint and their direct effect on the industry. A recently released edition of “Bill of the Month,” a crowdsourced investigation of medical bills by Kaiser Health News and NPR, allows us to do just that. 

    To paraphrase the article: A New York City patient went to a PCP (Primary Care Physician) with symptoms of a head cold. About to leave on vacation, this individual thought nothing of a typical provider visit to address some minor discomforts before traveling. A throat swab, a quick round of antibiotics, and a $25 co-pay sends this patient (aka consumer, customer, client, etc.) seemingly out the door without a hitch. 

    Upon returning from vacation, this healthcare consumer has a staggering $28,395.50 bill from their provider relating to the previous “head cold” visit. This physician ultimately sent the throat swab (claiming to test strep, among a myriad of other unlikely diagnoses) to a non-network lab facility with which this patient’s insurer (BCBS) did not have an established contracted rate. Normally, these tests run through an in-network provider would run the same insurer about $653 – a 191 percent price difference coordinated through the discretion of this physician. 

    As I read through the article, a handful of painfully obvious questions came to mind. Namely:

    1. Why intentionally use an out-of-network lab service?

    a. The physician office had applicable and valid insurance info from the patient and could easily check for a list of in-network providers. They chose to use an out-of-network facility.

    2. Why were so many unnecessary tests run for likely influenza (common cold) diagnosis?

    a. “In my 20 years of being a doctor, I’ve never ordered any of these tests, let alone seen any of my colleagues, students, and other physicians, order anything like that in the outpatient setting,” said Dr. Ranit Mishori in Kaiser Health News. “I have no idea why they were ordered.”

    b. “There are about 250 viruses that cause the symptoms for the common cold, and even if you did know that there was virus A versus virus B, it would make no difference because there’s no treatment anyway.”

    3. Why were antibiotics prescribed for a viral infection? 

    a. There’s a lesser-known, but just as frightening scenario where continued unnecessary antibiotic use within the general population will lead to widespread antibiotic resistance that will affect not only our healthcare industry but veterinarian and agricultural industries as well. Antibiotics cannot effectively treat viral infections. 

    Here’s the kicker from Kaiser Health News: “The third reason for the high bill may be the connection between the lab and Kasdan’s doctor. Kasdan’s bill shows that the lab service was provided by Manhattan Gastroenterology, which has the same phone number and locations as her doctor’s office.”

    Undoubtedly, this physician or practice is getting a kickback from the lab’s profit by billing this patient’s insurer an absurd and unnecessary amount. Coincidentally, Kaiser Health News points out that “Manhattan Gastroenterology” (the out-of-network lab running these tests) “is registered as a professional corporation with the state of New York, which means it is owned by doctors.” Maybe this primary care doctor in particular? 

    Now the point of this blog isn’t to uncover fraudulent billing practices. Those occur every minute of every day within our healthcare system. Rather, its aim is to point out that if we want anything close to a sustainable system for the baby-boomer generation’s progress into older age, or for the generations that follow, we’re all responsible to do our part in turning this thing around. That means you too, physicians. 

    Regardless of which individual ends up settling the $28,000 bill from this PCP, the moral of the story is that billing tens of thousands of dollars to the healthcare system opposed to hundreds, by choice, are the decisions that, when multiplied and repeated over decades, gets us to where we are today: a seemingly insurmountable amount of debt. Furthermore, and most important to employers, high claims like these that could and should be otherwise avoided will ultimately lead to higher insurance premiums in future years for the employer and its employees. 

    What can we (healthcare consumers) do to mitigate national healthcare debt?

    Staying informed, asking the right questions, and taking ownership of our personal health habits are surefire ways to reduce the expenditure and volatility of our health system. Working with consultants from an employer-centric company like GMS can only help educate employers on the successes and failures within our system and how those points can be used towards the advantage of those offering benefits while mitigating unnecessary financial loss. 

    GMS is an employer for employers, constantly striving to provide transparency and sustainability for those we serve. Contact a local office today to begin your healthcare partnership with GMS.

  • With recent changes to the Fair Labor Standards Act (FLSA), many business owners – and their employees – are trying to figure out exactly who qualifies as exempt from overtime pay under the new rules. Unless you’re ready to dig into Department of Labor (DOL) fact sheets and other documents, it’s not always clear just what counts as white collar exemption these days. To help, we’ve put together a breakdown of these exemptions to help you properly classify your employees.

    A group of white collar exempt employees at a business.

    What Qualifies White Collar Employees to be Exempt?

    There are three tests that employees must pass in order to classify them as exempt.

    • The salary basis test – Exempt employees must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed
    • The salary level test – Exempt employees must meet the threshold for minimum weekly salary
    • The duties test – Exempt employees must primarily perform a list of set duties

    The thresholds for the salary level changed as of Jan. 1, 2020. In the past, the minimum salary threshold was $455 per week. The recent rule changes officially raised the threshold to $684 per week. That equates to a $35,568 annual salary, 10 percent of which can come via nondiscretionary bonuses, incentives, and commissions that are paid out each year or more frequently. 

    There are also separate stipulations for “highly compensated employees” (HCE). The salary threshold for this group raised from $100,000 to $107,432 per year. Unlike other employees classified as exempt, HCEs face a “relaxed” duties test according to the Society for Human Resources Management (SHRM).

    The Different Exempt Employee Classifications

    While the salary thresholds have changed, the employee classifications listed as exempt have not. These classifications are not based on job titles. Instead, certain types of duties are used to mark an employee for exemption. The DOL lists the following groups as exempt, each with their own duties tests.

    • Executive
    • Administrative
    • Professional
    • Computer
    • Outside sales

    Executive Exemption

    To be considered an executive employee, a person must manage an enterprise, or a recognized department or subdivision of that enterprise, as his or her primary duty. This definition also states that an executive employee must regularly oversee and direct at least two or more full-time employees (or the equivalent in part-time employees). In addition, this employee must have some influence on hiring or firing other employees, whether he or she can outright terminate employees or can influence decisions related to any other type of status change for other employees. There is also a stipulation that any employees who are actively engaged in management and own at least 20 percent equity interest in the enterprise in their place of employment are considered exempt.

    Administrative Exemption

    Administrative employees are judged by a pair of tests. First, the employee must primarily perform office or non-manual work that is directly related to management or general business operations. Second, administrative employees must “exercise of discretion and independent judgment with respect to matters of significance” which refers to the level of importance or consequence of their primary duties. This discretion and judgment implies that an administrative employee evaluates various courses of action and has authority to decide which is best for the business.

    Professional Exemption

    The DOL has guidelines for two different types of exempt professional employees: learned professionals and creative professionals. Learned professionals must primarily perform work that requires “advanced knowledge.” This knowledge involves work that requires consistent discretion and judgment and must be “predominantly intellectual in character.” The DOL also stipulates that this knowledge be in a field of science or learning. As for creative professionals, their primary work should require a form of invention, imagination, originality, or talent in a recognized artistic or creative field.

    Computer Exemption

    Employees classified under the computer exemption are those employed as a systems analyst, programmer, software engineer, or some other type of skilled individual who operates in the computer field (not including manufacturing or repair). The DOL also stipulates that these employees’ primary duties involve one or more of the following tasks.

    • The application of systems analysis techniques and procedures to determine hardware, software, or system functional specifications
    • The design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, including prototypes based on and related to user or system design specifications
    • The design, documentation, testing, creation, or modification of computer programs related to machine operating systems

    Outside Sales Exemption

    Unlike the other classifications, the FLSA’s salary requirements do not apply to outside sales employees. To be considered part of this exemption, an employee’s primary duty must involve either making sales or obtaining orders/contracts for either services or for the use of facilities. In addition, an outside sales exempt employee must regularly work outside of his or her employers place(s) of business.

    Why is it So Important to Correctly Classify Exempt Employees?

    Employee misclassification can lead to a series of issues. Not only can misclassification impact the compensation for certain employees, it can also affect benefit plan eligibility, payroll taxes, and other crucial details. Not only can these mistakes be a huge issue for your employees – Joe Schmo from the warehouse won’t be thrilled if he’s classified as exempt – you’re putting your business at risk with the law as well.

    There are serious financial consequences if the Bureau of Workers’ Compensation (BWC) finds out that you’ve misclassified employees. There are a variety of potential penalties you can face depending on the severity of the situation:

    • The collection of unpaid wages
    • Back taxes
    • Additional penalties for failing to deduct and withhold taxes for misclassified employees
    • Punitive damages from lawsuits for unpaid wages and taxes

    In addition to the initial penalties, you can bet that you’ll end up on the BWC’s radar. Businesses that misclassify employees are known as potential repeat offenders, which means that these penalties will make it more likely for the Department of Labor and OSHA to audit your business in the future, even if the initial misclassification was the result of a simple mistake.

    Protect Your Business from Misclassification Mistakes

    Proper employee classification is very important, but it’s not necessarily easy to make the right call for every employee if you haven’t spent the time necessary to learn all the appropriate classifications. Meanwhile, you still have a business to run even after you’re done trying to figure out tedious HR management tasks.

    While you may not have extensive HR expertise, the experts at GMS do. In addition to helping you avoid costly misclassification issues, we can help you simplify and strengthen your business through payroll management, employee benefits administration, and other crucial tasks. Contact GMS today to talk to us about how we can help you save precious time and protect your business through professional HR management.

  • After some big changes in 2019, it’s apparent that New Jersey takes wage theft very seriously. The state adopted the new Wage Theft Act (WTA) and amended its Wage and Hour Law back on Aug. 6, 2019, giving it some some of the toughest laws in the nation regarding wage and hour enforcement.

    The new WTA has a direct impact on business owners in New Jersey, but it’s important for those outside the state to be aware of the updates as well. The Garden State is a common testing ground for legislative changes, so other states may adopt similar laws over time. As such, let’s break down exactly what New Jersey’s wage and hour enforcement laws mean for business owners (and what they can do to avoid issues).

    How the WTA Impacts Business Owners

    The adoption of the WTA places a lot more pressure on employers when it comes to correctly paying wages to employees. Simply put, the new rules are clearly designed to discourage owners from committing wage theft – and severely punish those who do, unwittingly or not. There are a few notable takeaways that owners should know:

    The WTA increases how much employees can earn back

    Employers who owe workers will have to pay back more to the affected employees than in the past. These employees can claim increased damages for any missing overtime or other hours, which can total up to 200 percent of the unpaid wages in addition to the original pay. That means employers can be on the hook for three times back wages. Employers found guilty of wage theft may also have to pay reasonable costs and attorney fees for the affected employee, making the situation even more costly.

    The WTA increases the statute of limitations for back pay

    Previously, any claims for missing pay had to be made within two years of the incident. The WTA tripled that window, which means that aggrieved workers can now fight for back pay within a six-year time period.

    The WTA offers more protection against retaliation

    The new legislation makes a concerted effort to protect employees when they inquire about missing pay. Any adverse action – including discipline, demotion, or termination – made within 90 days of a complaint about their pay is automatically presumed to be a form of retaliation. The employer can appeal this presumption, but will need “clear and convincing evidence” to successfully argue that the adverse action was justified and not made in retaliation. Employers found guilty of retaliation must make right by the affected employee, which can include reinstating that person to his or her position if fired or demoted.

    The WTA enacts harsher financial and criminal penalties

    Not only does the WTA make it easier for employees to claim back pay, it also drops the hammer on businesses to deter them from making the same mistake again. Wage theft can result in both a notable fine and jail time, with increasing punishments for repeat offenders. The penalties are as follows:

    • First violation – $500 to $1,000 fine, imprisonment of 10 to 100 days, or both
    • Second violation – $1,000 to $2,000 fine, imprisonment of 10 to 100 days, or both
    • Third and subsequent violations – The employer is charged with a fourth degree crime and faces a $2,000 to $10,000 fine, imprisonment of up to 18 months, or both

    The WTA adds joint liability

    With the new rules, employers may also get in trouble even if they themselves didn’t commit wage theft. Violations committed by hired contractors make a business jointly responsible if any of these contractors commit anything deemed as wage theft or retaliation.

    Potential Danger Areas for Wage Theft

    Regardless of whether a discrepancy in an employee’s wages is a genuine accident or a purposeful act, New Jersey’s new rules are a clear indication that it’s more important than ever to accurately complete payroll. However, there are a couple instances where someone who isn’t a payroll professional could make a mistake. These can include:

    • Incorrectly paying the wrong rate for overtime hours
    • Not applying different hourly rates for employees who perform two different types of tasks
    • Making a mistake when calling or faxing in payroll numbers

    It’s also important to consider the potential aftermath of a wage theft violation. Not only would you have to deal with the WTA-mandated penalties, word of that violation can spread to other employees. Even an accidental case of wage theft can create distrust among your employees and cause employees to be hypervigilant in the future. People are very sensitive about their pay, and an upset workforce can lead to less motivated employees and can even force good talent to leave for what they perceive to be a safer workplace.

    Protect Your Business Against Accidental Wage Theft and Other Payroll Issues

    Whether your business is based in New Jersey or somewhere else, it’s crucial to carefully record and maintain payroll documentation and employee hours. Not only will proper payroll management help protect your business against costly penalties, it’ll also ensure that your employees get exactly what they should each pay period.

    Of course, accurate payroll administration is easier said than done for someone without an experienced background. Managing payroll and filing taxes is a time-consuming process even when done accurately, which can take time away from other key business functions. Fortunately, GMS can help you manage your company’s payroll while you focus on growing your business.

    At GMS, we have the experts and processes in place to diligently process your payroll, manage and file taxes, and protect your business from costly compliance issues. We’ll do an HR analysis and identify new policies and procedures to help you protect your business from any current or future issues. Contact our New Jersey office or one of our other locations today about managing payroll or any other critical HR function for your business.

  • Cybersecurity threats are real for businesses across the country, but one state is making an effort to make its citizens more knowledgeable about these dangers. Georgia Attorney General Chris Carr announced the release of Cybersecurity in Georgia to inform business owners and other individuals about potential cyber threats and how they can reduce the likelihood of these attacks. 

    While the 24-page guide was aimed at business in Georgia, its message is relevant for businesses all across the country. Here’s a breakdown of what you can do to protect your business from cyber threats.

    A small business owner in Georgia using a smart phone and computer set up with proper cybersecurity practices. 

    The Dangers of Cyber Attacks

    Just how common are cyber attacks? According to Cybersecurity in Georgia, “67 percent of small and medium-sized businesses in the United States were the victims of a cyber attack in 2018.” These attacks come in a variety of forms, as any of the following intrusions can result in the loss of valuable data and sensitive information.

    • Data breaches
    • System hacking
    • Email phishing
    • Malware/Ransonmware
    • Distributed denial-of-service (DDoS) attacks
    • Keylogging
    • Tech support scams

    In addition to the attacks above, cyber intrusions can be made possible by internal issues as well. Whether your software is out of date or a user error led to a misconfigured server, there are several ways that intruders can compromise your cybersecurity if you don’t take action against these threats.

    What You Can Do to Improve Your Business’ Cybersecurity

    A potential breach can come in many forms, but there are steps you can take to limit or prevent their effects. Here are some measures you can take to improve your business’ cybersecurity.

    Take inventory of sensitive information

    Over time, your business collects a lot of sensitive information. This data can come in several forms – credit card information, Social Security numbers, home addresses, tax documents, etc. – and all of it is at risk of being lost or stolen during an attack.

    Before you can protect this information, you’ll need to recognize where it is. The first step toward securing your data involves identifying where any sensitive details are stored. Cybersecurity in Georgia suggests taking stock of the following sources of information.

    • Computer systems
    • Backup and storage systems
    • Websites
    • Laptops
    • Employees’ home PCs (if used for work purposes)
    • Cell phones and tablets
    • Flash drives
    • Paper files
    • Information shared with third-party vendors

    Once you’ve determined all the places you store sensitive information, you’ll want to evaluate how it’s being used and streamline the number of places this information is stored. It’s also good practice to clean out any old software, apps, file folders, and other sources of information if you can. If you find that you have sensitive data on file and don’t need it, it’s best to destroy that data in a secure manner instead of holding onto it. 

    Improve your safeguards to control access to data

    It’s absolutely critical to make sure your passwords are secure. The new cybersecurity guide suggests using passwords with “at least 12 characters that combine upper and lowercase letters, numbers, and symbols.” It’s also good to change these passwords at regular intervals. If you want to add another layer of security, certain logins will allow you to set up multi-factor authentication. This will send you a text, an email, or some other message with another password or code to help ensure that the person logging in is really with your company.

    There are also occasions where certain information is accessed via physical devices such as a workplace laptop, flash drives, or paper backup files. In this case, it’s important to lock up any of these items so that they can only be accessed by an approved member of your team both during and after business hours.

    Protect your network beyond passwords

    In addition to passwords, there are many other ways to protect your overall network. To start, every network should have a firewall, anti-virus software, anti-malware software, and a pop-up blocker. Any other software, systems, or other devices you use should stay up to date with any required updates and patches – old versions can lead to ways into your system for cyber attacks. You should also consider the following:

    • Encrypt any devices that contain sensitive information
    • Protect your wireless network by ensuring that your router offers WPA2 or WPA3 encryption to prevent outsiders from reading your information
    • Create means for remote access to your company’s network through a corporate VPN access or some other secure connection
    • Invest in email authentication technology to prevent scammers from using your domain name
    • Use an online payment provider that complies with Payments Card Industry Data Security Standards if you have an ecommerce site
    • Vet any vendors for security concerns if you share any sensitive data with them

    Review employee access

    Another important consideration you’ll want to make is who has access to your data. In general, some employees shouldn’t be privy to sensitive information. Restrict that access only to people who have a specific business need for it to help limit the number of people who may – knowingly or not – create a security threat. 

    There may also be occasions where someone may not need complete access. For example, someone may need access to customer emails, but not financial documents. Restrict access where appropriate so that your employees only deal with the data they need. Regardless of access level, you should also provide some degree of cybersecurity training. Cybersecurity in Georgia suggests regular education about the following issues.

    • Password safety procedures and tips
    • Suspicious emails
    • Software downloading procedures
    • Proper use of mobile devices and other items
    • Handling sensitive data (both electronically and physically)
    • Social media policies
    • Visitor guidelines
    • Reporting suspicious activity

    It’s also important to have a plan in place for when you hire new employees and terminate old ones. If a potential new employee will have any access to sensitive data, it’s important to conduct background checks and call references to identify if there are any past concerns or other issues that may make them unsuitable for that responsibility. As for departing personnel, make sure to remove login privileges and change any necessary passwords to prevent them from accessing data in the future.

    Plan ahead for potential breaches

    As Attorney General Carr said during the release of Cybersecurity in Georgia, “In today’s world, it is not if, but when, an attempt will occur.” At some point, there will likely be some form of cyber attack against your business. The advice listed above can help you limit the chances of a successful attack, but you should still have a plan ready just in case.

    A good response plan will give you a guide to help you following a breach. Swift action can help you limit any losses or damages and can help the investigation process. The U.S. Department of Justice’s Cybersecurity Unit provides a cyber incident preparation, response, and reporting guide that offers some best practices following an attack.

    • Appoint decision makers for different elements of your organization’s cyber incident response (public communications, law enforcement engagement, etc.)
    • List a means of contact for critical personnel for all times of day (and provide next steps if a decision maker is unavailable)
    • Create a prioritized list of data, networks, or other information and assets that demand special attention during an incident
    • Maintain a list of other parties – commercial data centers, etc. – who host affected data and how to contact them
    • Keep a timeline of when and how to restore back-up data
    • Determine the criteria that will determine if customers, vendors, and other entities need to be notified about an intrusion
    • Have a guide on when and how to notify any necessary law enforcement or other government agencies

    Consider cyber insurance

    A data breach can have a significant financial impact on a company. From the time spent dealing with an incident to the potential for a lawsuit from an affected customer, an intrusion can deal severe damage to the wellbeing of your business.

    While general liability insurance policies may cover tangible property, that may not include electronic data and other important digital information. Cyber insurance can help you protect your organization from some of the financial ramifications of a breach. If interested, Cybersecurity in Georgia suggests investing in a cyber insurance policy that covers the following acts.

    • Data breaches (such as incidents involving theft of personal information)
    • Cyber attacks (such as breaches of your network)
    • Cyber attacks on your data held by vendors and other third parties
    • Cyber attacks that occur anywhere in the world (not only in the United States)
    • Terrorist acts

    Protect Your Business from Potential Threats

    There are countless hazards associated with running a business, including cyber attacks. The time it takes to protect your business can be substantial, which means less available time in your schedule to try and grow your company. Fortunately, you don’t have to carry the burden of protecting your business alone.

    As a Professional Employer Organization, GMS has the experts and means available to help simplify your various administrative needs, including risk management. We can help you identify ways to protect your company while also offering services like payroll administration and other time-consuming tasks. 

    Ready to prepare your business for the future? Contact GMS today to talk to us about how we can help you protect your business through professional HR management.

  • If you think bullying only affects children, guess again. According to a 2019 Monster.com survey, a whopping 94 percent of people said they were bullied in a workplace at some point. This trend has grown to the point where now states like Tennessee are implementing new statutes to combat the issue. Find out how Tennessee plans to tackle workplace bullying and what what you can do to protect your business.

    An employee being bullied at work.

    How Tennessee’s Anti-Bullying Statute Now Impacts Employers

    Tennessee’s efforts to have workplaces implement anti-bullying policies started back in 2014 with the adoption of the Healthy Workplace Act. This act incentivized employers to add these anti-bullying policies in exchange for some legal protection against potential litigation from bullied employees.

    The 2014 version of the statute only applied to state and local government agencies, but that changed on April 23, 2019 when Tennessee Gov. Bill Lee signed a bill that extended those protections to private employers in addition to government agencies. However, the statute doesn’t require employers to create an anti-bullying policy. Instead, it incentivizes them to do so for some legal protection.

    How does the statute protect Tennessee employers who add an anti-bullying policy? According the The National Law Review, “Employers that adopt a policy that complies with the act will be ‘immune from suit for any employee’s abusive conduct that results in negligent or intentional infliction of mental anguish.’”

    However, there are some stipulations for the adopted policy in order to gain the aforementioned legal protection, as the policy must meet one of two requirements. First, the employer can adopt the model policy published by the Tennessee Advisory Commission on Intergovernmental Relations (TACIR). Second, the employer can create its own policy as long as it:

    • Assists employees in recognizing and responding to abusive conduct
    • Prevents retaliation against employees who report abusive conduct

    What Small Businesses Can Do to Protect Themselves and Their Employees from Bullying Cases

    While Tennessee’s changes to the Healthy Workplace Act give employers some optional protections against litigation, it isn’t the only state to do so. According to The Healthy Workplace Campaign, 30 states have adopted some form of healthy workplace bill. Regardless of whether your state has some optional protections or not, it’s important to take steps to address the situation for your company.

    Not only can bullying cause stress and anxiety for your employees, it can also open you up to potential litigation from victimized workers. Even if you personally didn’t bully the employee, that worker could argue that you ignored the issue or enabled it by creating an environment that fostered bullying. When the potential costs of a lawsuit could reach hundreds of thousands of dollars, it’s important that you protect your business from these potential dangers. Here are some steps you can to prepare for the future.

    Create your own anti-bullying policy

    A good anti-bullying policy can help your workplace even if your state doesn’t offer immunities from potential lawsuits like Tennessee. Having a policy in an updated employee handbook will not only help show that you made an effort to make your stance on bullying clear, it can also helps protect against both people claiming you’re partially responsible for bullying and any employees you need to discipline – or even terminate – for bullying.

    The specifics of your policy can depend on the laws in your specific state, but the Society for Human Resource Management provides a good template for an anti-bullying policy as a basis. It’s also important to involve your lawyer and an HR compliance expert to make sure you use the proper verbiage in your policy.

    Educate employees

    In addition to having a policy in your handbook, it’s also good to take a more active approach toward teaching your employees about anti-bullying practices. One such option would be a training and development program where an HR expert could come in and educate your employees about the steps you’ve put in place to talk about and prevent bullying. Not only will this increase awareness of your efforts to everyone in the company, it can also give them the means of reporting an issue in case one ever occurs.

    Get liability insurance

    While the steps above can help you limit the chances of bullying and show your company’s efforts to create an open, healthy workplace, there is still a chance that an employee may still file a liability lawsuit. Employment Practices Liability Insurance (EPLI) can help protect you against the financial ramifications of these lawsuits whether or not they’re warranted.

    Protect Your Business from Bullying and Other Threats

    Whether you’re dealing with bullying, a workplace injury, or some other issue, it’s important to make sure that your business is prepared for any trouble. However, that’s not so easy when you have to spend so much time and effort running your business. That’s where GMS can help.

    As a Professional Employer Organization, GMS provides comprehensive HR services for businesses of every size. Whether you need help handling payroll, risk management, or some other key function, our experts can help you prepare for the present and the future while you focus your efforts on growing your business. Contact our Tennessee office or one of our other locations today to talk to one of our experts about how GMS can help your business today.

  • The holidays are typically a time of joy and celebration, but they also require business owners to make some additional considerations about holiday pay. This type of pay makes it possible for employees to stay home for a selection of holidays and still get paid for those days. However, this benefit isn’t always a guarantee depending on the needs of your business. 

    Are you unsure about how to handle holiday pay for your business? We broke down some common holiday pay questions to help you determine how holiday pay can affect your business and the best plan of action for your specific situation.

    A piggy bank with Christmas lights representing holiday pay. 

    Do Businesses Need to Provide Holiday Pay?

    While many businesses offer holiday pay, it is not a legal requirement. According to the Department of Labor, “The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations or holidays (federal or otherwise).” In essence, a holiday is treated just like any other workday. As such, employers would only pay non-exempt workers for the time they worked (exempt employees would simply receive their normal salary regardless of whether they had the holiday off or not).

    While holiday pay isn’t required, employers may opt to provide it to employees. The terms of the holiday pay is subject to an agreement between the employer and its employees, although you aren’t required to pay a premium rate specifically for holiday pay.

    Do Businesses Need to Provide Time Off for Holidays?

    As with holiday pay, employers are not required by federal law to provide time off on the holidays and may choose to close for certain holidays on their own. Holidays are considered regular workdays, so any employee who works those days is entitled to normal pay as opposed to overtime pay. 

    The one exception in regards to time off for certain holidays is that employers are expected to provide reasonable accommodation for any employees that observe a religious holiday. One way to accommodate this would be to provide floating holidays that allow workers to use their time off for an observed holiday. Other options include allowing employees to take a vacation day or unpaid time off for a specific holiday unless the employer can show that their absence would create undue stress for the business.

    What are the Benefits of Offering Holiday Pay?

    There are a couple reasons why you may decide to provide holiday pay. One reason is to give workers a chance to celebrate various holidays with their family and friends without having to worry about how that time off will affect their paychecks. By offering some of these days off along with holiday pay, you can show your employees some appreciation for their hard work throughout the year.

    Another reason why you’d offer some holidays off with pay is to make your company appear more competitive in the hiring process. While a holiday may be the same as any other day in terms of pay, they can feel a lot more important to your employees. Offering those days off with pay can help make a difference when trying to attract and retain talented people.

    Are All Employees Entitled to Holiday Pay if It’s Offered by the Company?

    If you decide to offer holiday pay, you don’t have to provide it to all your employees. As long as the basis of choosing who gets holiday pay isn’t discriminatory, you can provide the benefit to some employees and not others. For example, you can opt to provide holiday pay to only full-time employees or office workers if you so choose. However, you can’t base your decision on a protected classification such as age or race.

    How Should I Set up a Holiday Pay Policy?

    Since you dictate the specifics of your holiday pay policy, it’s important to include that policy in your employee handbook and communicate it to your employees. This will allow you to clearly list the exact details of your policy if you decide to provide certain holidays off and if you choose to provide holiday pay. The details of this policy should include:

    • A list of dates designated as holidays (whether it follows the list of federal holidays or a modified list)
    • Which employees are eligible for holiday pay
    • The rate for holiday pay or if there are any bonuses attached to working a holiday
    • How a paid holiday works if they fall on a weekend

    What’s the Right Call for My Business?

    Ultimately, the decision of whether you want to provide holiday pay or not is up to you. Some businesses that employ multiple non-exempt employees may not have the funds to provide pay for days off, while others may require people to regularly work on holidays. Each case is different, so it’s best to find an option that makes sense for your business.

    Running a business involves making several important decisions. This responsibility requires a lot of time and effort from any business owner, but you don’t need to handle this load alone. At GMS, our HR experts can help you manage a variety of key business functions ranging from payroll to benefits administration. When you need assistance, we can provide the services and expertise necessary to keep your business prepared for the future.

    Ready to talk to an expert about holiday pay or any other business need? Contact GMS today to talk to us about how we can help your make your business simpler, safer, and stronger.

  • It is no surprise, that many companies are currently hiring. With unemployment being at an all-time low, many employers are having a hard time finding quality employees.

    One industry that has faced scary headlines is the transportation industry. With the growth of self-driving technology, transportation companies, such as Atlanta-based UPS, one might think that the transportation industry would be hiring at a lower rate or possibly consider laying people off. This happens to be far from the truth. In fact, the transport sector is showing surprising growth.

    A line of trucks being driven by people hired into the transportation industry.

    The Numbers Behind Transportation’s Hiring Boom

    The U.S. Bureau of Labor Statistics reported that 16,000 workers were added in September to companies specializing in air freight, trucking, and warehouse operations. This makes transportation one of six top job magnets, alongside others such as tech and healthcare.

    The data doesn’t stop there either. According to a LinkedIn study, the transportation industry hasn’t just added driving jobs over the past five years, more than 50 percent of new jobs added are higher-paid specialized functions. This goes to show that the industry is showing no signs of slowing down anytime soon. With these added specialized jobs, this means more opportunities for salespeople.

    Another development worth mentioning is that jobs in the traditionally male-dominated field are now opening up to women as well. Women make up about 15 percent of the industry average, but at XPO Logistics, women now make up about a quarter of their global workforce. This year alone, 30 percent of new employees in transportation happen to be female.

    So which cities are benefiting the most from the surge? LinkedIn data shows that the majority of cities tend to be heartland U.S. metropolitan areas. The top five cities are Chicago, New York City, Dallas-Fort Worth, Atlanta, and Los Angeles.

    The Impact of the Hiring Trend on Transportation Businesses

    What does this mean for business owners? Growth. Employers are not only hiring new employees, but also hiring new employees for jobs that the company has not had in the past. An example of this can be seen in UPS where in the past they have only had one way to do returns. With “Returns-Plus” and other options they can offer to big customers, UPS now must hire for new positions. When the economy experiences rapid growth, it is imperative for businesses to keep up. Many employers will be hiring and looking for some of the best talent.

    For companies in this industry struggling to find quality talent, there are resources available to help you  with employee recruitment and hiring. When you partner with a PEO like GMS, we can help you navigate through the hiring process, along with the rest of your administrative burdens from payroll to human resources, and benefits. GMS stands with employers through their employees’ entire lifecycle. From helping companies search for talent to the interview process to setting up the employee’s benefits, GMS will be there. Business owners, your time is precious, so handing off these functions will allow you to focus on what really matters.

    Ready to make your business simpler, safer, and stronger? Contact our Atlanta office or one of our other locations today to talk with one of our experts about how we can help you with hiring and other key business functions.

  • As a business owner, you have to make countless decisions about the types of benefits your business offers. From health insurance plans to PTO, your benefits package impacts your employees and your bottom line. Deciding on the type of benefits you want to offer your employees, like maternity and paternity leave, can be a tricky situation.

    Two new parents with their baby while on maternity and paternity leave from their employers. 

    Is My Business Required to Offer Maternity and Paternity Leave?

    The answer to that question depends on the size of your company and its location. Maternity and paternity leave is regulated by U.S. labor law, which includes the Family and Medical Leave Act of 1993 (FMLA). This law applies to any employee who has worked for your company for at least 12 months and has logged at least 1,250 hours in that span. Any employee who meets FMLA criteria is then able to take up to 12 weeks of unpaid leave in a 12-month period for any of the following reasons.

    • The birth of a child and time to bond with that newborn child within one year of birth
    • The placement of a child for adoption or foster care and to bond with the newly placed child within one year of placement
    • A serious health condition that makes the employee unable to perform the functions of his or her job
    • To care for the employee’s spouse, son, daughter, or parent who has a serious health condition

    However, FMLA doesn’t affect every business. According to the Department of Labor, FMLA applies to “all public agencies, all public and private elementary and secondary schools, and companies with 50 or more employees” on a federal level. 

    There are some states with different rules in regards to which businesses are impacted by FMLA. For example, New Jersey updated its Family Leave Act to drop its threshold to 30 employees. In addition, New Jersey offers paid family leave. These individual state laws can differ dramatically from the federal norm, so you’ll want to check your local laws to see where your company stands in terms of your parental leave obligations. If your business does not meet the employee threshold for FMLA in your state, you are not required to provide paid or unpaid leave for maternity and paternity leave.

    Should I Offer Maternity and Paternity Leave Benefits Anyway?

    Even if FMLA doesn’t apply to your business, you may want to consider some form of maternity and paternity leave for your employees. There are advantages and disadvantages associated with your various parental leave options, so it’s important to identify some factors that may impact your decision.

    The costs of offering leave

    Your parental leave policy can have different financial impacts. Not offering a leave policy is the lowest cost option, at least in terms of how it’ll impact your day-to-day operations. Conversely, paid leave means that you’re still on the hook for paying your employees while they’re out of the office. In addition, the following factors can affect your bottom line whether you offer paid or unpaid leave:

    • The impact of lost productivity while your employee is on leave
    • The cost of a temp worker to pick up the extra work
    • The cost of covering benefits while an employee is gone

    All of these factors can add up, which can make the decision to offer some form of paid or unpaid parental leave a pricy policy. However, it’s important to also consider the financial impacts of not having a formal maternity or paternity policy.

    No maternal or paternal leave policy can be a big reason as to why an employee leaves your company – or why a potential job candidate accepts a job somewhere else. If a talented employee plans on having a child at some point, he or she may look for other opportunities to cut down on the amount of stress after childbirth and afford them more time to bond with that child. In fact, a study by the Center for Women and Work at Rutgers found that women are “93 percent more likely to be working nine to 12 months after giving birth than those who didn’t take leave.”

    Not only will that departure affect your business’ productivity, replacing that employee can cost as much as half of his or her salary. If you’re in a position where you want to avoid turnover, some form of parental leave policy may be the more cost-effective solution in the long run.

    Employees want paid leave

    Just how attractive is an opportunity for paid leave to a typical employee? BenefitsNews shared the results of a survey that asked workers about the most desirable benefits outside of health insurance and retirement plans. Paid family leave eked out flexible/remote work options as the most coveted option, which can make it a very desirable option to help you attract and retain talented employees.

    The growing desire for parental leave benefits hasn’t gone unnoticed. According to SHRM, more business have offered paid parental leave in recent years. The number of business offering paid maternity leave has nearly tripled between 2014 and 2018, rising from 12 percent to 35 percent. Paid paternity leave wasn’t far behind, increasing from 12 to 29 percent in that time.

    What are Some Parental Leave Options for a Small Business?

    Now that you’ve weighed a few factors that may impact your decision on whether you should or shouldn’t offer maternity and paternity leave. There are a few different options you can take based on the needs of your company.

    • No parental leave
    • Unpaid parental leave
    • Paid parental leave
    • A combination of paid and unpaid parental leave

    So which is the best choice? Ultimately, the decision lies with what’s right for you and your company. You’ll need to balance the financial implications along with how your policy can impact your employees, which requires an internal perspective from someone who knows and understands the company. 

    You’re the best person to judge which type of maternity and paternity leave policy works for your company, but you don’t have to make this call alone. At Group Management Services, we can help you determine which route may be best for your particular situation and put together a company policy to keep your employees informed (and protect you from potential claims). Contact GMS today to talk to one of our experts about how we can help you strengthen your business through employee benefits administration and other key HR functions.