2025 W-2 Forms are now available in your GMS Connect employee portal here.

  • According to a workforce trend report, employee retention has become the top priority for operations and HR in 2023. One of the most effective strategies to achieve this is investing in employee development programs. These programs not only enhance employees’ skills and knowledge but also foster a sense of loyalty and commitment to the organization.

    Sixty-one percent of HR professionals state that lack of development and career advancement is the second most common reason for employee turnover, behind inadequate compensation. Twenty-one percent of HR professionals report lack of development as the number one factor influencing retention. 

    The Importance Of Career Development For Employees

    Employee development programs are attractive to employees because they provide opportunities for personal and professional growth, increase job satisfaction, and boost confidence in their abilities. When employees feel they are excelling in their careers, they are more enthusiastic about doing them. Instead of being stagnant in a job, employees would like to progress towards something more significant, such as a promotion or a leadership position. Employees who feel valued and supported in their careers are more likely to remain with the company for the long term.

    Why Should Employers Invest In Employee Development? 

    Investing in employee development leads to a more skilled and productive workforce. Employees who receive continuous training and education are better equipped to handle challenges, adapt to changes, become leaders, and contribute to innovative ideas. This can give your company a significant competitive advantage in your industry.

    Sometimes, employers believe that development is expensive and risky. They don’t want to invest money in development only for their employees to take that knowledge to a new job. However, employees leaving will always be a risk. If you choose not to invest in employee development, there will be widening knowledge and skill gaps, diminished engagement, and a lack of innovation.

    Investing in development also helps you recruit top-tier candidates who want to join a company that is committed to growth. Happier and more engaged employees tend to be more productive and motivated to do better work. By focusing on continued learning, you can encourage a culture of innovation and adaptability that gives your business a reputation for being forward-looking, relevant, and fresh.

    It’s also essential to advance employees’ knowledge and skills so that eventually, they can be promoted to leadership roles. Promoting from within is almost always easier than recruiting from outside. This also contributes to a future-ready workplace that can keep up with evolving trends and stay ahead of the industry.

    Create A Retention-Boosting Employee Development Program

    To craft an engaging and practical training program that aligns with employees’ daily workflows and piques their interest in learning, consider incorporating the following elements into your plan:

    Continuous learning

    As a small business owner, it’s essential to promote a continuous learning culture. Due to the constant evolution of industries, there’s always something new to learn. You can promote your company’s commitment to learning through your core values, employee handbook, employee training, company meetings, and day-to-day employee conversations.

    Personalized development

    Involve your employees in the planning process by asking them about their short and long-term goals, which skills they are interested in learning, and how they enjoy learning. Take these factors into account when you create your development program to ensure it’s a meaningful, engaging, and fulfilling experience for your employees.

    Day-to-day operations

    Your development program should be easily implemented in daily operational activities and the company’s goals. Employees must feel what they are learning is valuable to their daily working lives and enable them to make a positive impact on the organization.

    It’s also important to create short and more frequent bursts of micro-training focused on singular topics that employees can complete on their own time. If the training is short and easy to digest, it will be easier to implement as a frequent activity that fits into their busy day-to-day schedules. As a result, learning will be incorporated into the workplace culture more often, be more effective, and occur more often.

    Make it simple

    Development programs can involve attending conferences and going on trips, but it can also be simple. Learning can be as convenient as:

    • Reading an article in an industry publication
    • Listening to a podcast
    • Completing a short e-learning module
    • Attending a lunch-and-lean session
    • Engaging in a coaching session with a manager

    Your employees do not always have to go elsewhere to achieve professional growth. Growth can happen right within your organization, including mentorships with someone in higher positions, peer collaboration, and cross-training. Leaders should lead by example and actively support employee development initiatives.

    Monitor and reward

    Sometimes, employees need an extra push to complete development programs. Reward employees for mastering new skills, from anything to a bonus, extra paid time off (PTO), a gift, or a promotion from within. Recognizing and rewarding employees who demonstrate mastery of new skills can motivate others to engage in development opportunities.

    It’s also essential to monitor the effectiveness and appeal of your development programs and what works and what doesn’t. Ask for feedback from employees on what they would prefer and how to improve. Study your turnover rates, survey employees about the development opportunities you’ve offered, ask about development opportunities during exit interviews and have managers talk with employees in one-on-one meetings.

    Your Partner In Employee Development And Retention

    In today’s rapidly changing environment, investing in employee development is no longer an option but a necessity. Your employees are your greatest asset. However, ongoing employee management and training are significant challenges, especially when there’s only so much time in the day.

    That’s why GMS works with businesses to help them retain top talent. Our comprehensive suite of services is designed to support businesses in creating and implementing effective employee development programs.

    Our HR experts work closely with clients to assess their unique needs and develop customized solutions. Contact us today to learn how we can support your organization’s commitment to development.

  • California employers are facing a significant compliance challenge with the state’s recently enacted Senate Bill 553 (SB 553). Last year, California Governor Gavin Newsom signed SB 553 into law, which requires employers with at least 10 employees in California to develop and implement a Workplace Violence Prevention Plan (WVPP) by July 1, 2024.

    Employers will likely have to coordinate with multiple internal stakeholder groups, making it challenging to comply with the new law. California is the first state in the nation to pass such a sweeping WVPP law, setting the precedent that other states are expected to follow.

    Understanding The Mandate

    The law mandates that employers provide thorough training to all employees, covering a range of critical elements. The training must include instructing employees how to report concerns to their employer and to law enforcement. The training must also cover:

    • The statute’s definition of workplace violence.
    • The four types of workplace violence – criminal intent, customer/client, worker-on-worker, and personal relationship.
    • The employer’s plan.
    • The workplace violence hazards specific to the employees’ jobs.
    • How employees can protect themselves in the event of a workplace violence incident.
    • Employees may request to review or copy the employer’s records relating to the workplace violence prevention plan, including the violent incident log that the statue requires. The log must include a detailed description of each workplace violence incident and be maintained for five years.

    What This Means For Managers

    Managers will need guidance on the breadth of conduct covered by the law and the necessary reporting procedures. Managers must ensure that employees fully understand the meaning of workplace violence, including but not limited to the four workplace violence types:

    1. Criminal intent: This type of violence generally won’t have a legitimate relationship with the business or its employees.
    2. Customer/client: Involves a customer, client, patient, or visitor becoming violent towards an employee, often due to disputes over service, products, or perceived mistreatment.
    3. Worker-on-worker: Violence between coworkers, including bullying, frequently manifests as verbal and emotional abuse that is unfair, offensive, vindictive, and/or humiliating.
    4. Personal relationship: The perpetrator has a personal relationship with the employee outside of work, such as a domestic partner, and brings that violence into the workplace.

    Tracking Incidents

    Employers must also maintain detailed logs of all workplace violence incidents for at least five years, which employees can request to review. Employers should also consider whether workplace violence concerns can be incorporated into their existing reporting procedures for safety issues. Ensuring clear communication around this requirement will be key to encouraging reporting without deterring employees.

    Include Your Employees

    Employees should also have a role in the planning process because they are the ones who will bring the issues to HR. Every employee has a role in keeping the workplace safe and that should be the focus of the training.

    More Laws To Come

    Beyond the WVPP, California employers will need to prepare for other new employment laws taking effect in 2024, such as the increase in paid sick days and the new bereavement leave policy. Managers will likely require training on navigating these bills as well.

    Need Support Managing These Mandates?

    Navigating the complexities of workplace violence prevention and government mandates is a significant challenge for employers. GMS can provide expert guidance on ensuring compliance with these new laws and mandates. With GMS, you can remove the time spent worrying about missing legislative updates that may affect your business. Our team will help you create a combative strategy to ensure your operations continue running smoothly and safely. Contact GMS to learn more!

  • In a significant move to empower employees and safeguard their rights, New York City has unveiled a mandatory new workplace poster as part of its commitment to fostering a transparent and fair working environment. This initiative, rooted in the city’s “Workers’ Bill of Rights,” ensures that every employee is well-informed about their rights at work. Continue reading to learn what you need to know about this pivotal development.

    The new poster can be found by clicking here.

    Understanding The “Workers’ Bill Of Rights”

    The “Workers’ Bill of Rights” is a comprehensive effort by New York City to provide its workforce with a clear understanding of their entitlements and protections under state and federal law. Recognizing the diverse linguistic landscape of the city, the newly released poster by the New York Department of Consumer and Worker Protection (DCWP) captures the spirit of inclusivity and accessibility. The poster embodies the city’s commitment to reaching every worker by featuring “Know your rights at work” in 12 different languages.

    The Role Of QR Codes In Promoting Accessibility

    A standout feature of the poster is its large quick-response (QR) code, which serves as a digital gateway to a wealth of information. By scanning this QR code, workers are directed to a dedicated page on the DCWP website titled “Workers’ Bill of Rights.” This page not only outlines state and federal workplace laws but also provides links to relevant enforcement agencies, ensuring that employees have on-the-go access to essential resources and support mechanisms.

    Implementation Timeline And Employer Responsibilities

    Beginning July 1st, 2024, employers across New York City are required to distribute this multilingual poster to all existing employees and new hires. The mandate extends beyond just distribution; employers are obligated to prominently display the poster within the workplace and through any online platforms commonly used to engage with their employees. This dual approach of physical and digital posting is aimed at maximizing visibility and ensuring the message reaches every corner of the workforce.

    Compliance And Penalties

    The city has taken a firm stance on compliance, signaling that adherence to these new requirements is not optional. Following an initial violation, employers may face civil penalties, underscoring the seriousness with which New York City views the protection of workers’ rights. This move is indicative of a broader trend towards increased accountability and transparency in the employer-employee relationship, with the city leading the charge in setting new standards for workplace fairness.

    Where GMS Comes Into Play

    In the dynamic and evolving landscape of New York City’s business environment, a professional employer organization (PEO) like GMS stands out as a valuable partner for businesses looking to navigate the complexities of compliance, HR, and employee management. GMS’ expertise and resources allow business owners in New York City to offload the burden of administrative tasks, access comprehensive HR support, and ensure adherence to the latest regulations, including the implementation of initiatives such as the “Worker’s Bill of Rights” poster. With the guidance of GMS, businesses can focus on their core objective while fostering a workplace culture that prioritizes employee well-being and compliance, ultimately contributing to their long-term sustainability and success in New York City. Contact our experts today to learn more.

  • The U.S Equal Employment Opportunity Commission (EEOC) issued final regulations for implementing the Pregnant Workers Fairness Act (PWFA). PWFA went into effect on June 27, 2023, and requires employers with 15 or more employees to provide reasonable accommodations for known limitations related to pregnancy, childbirth, or related medical conditions, unless the accommodation would cause the employer undue hardship.

    The PWFA only applies to accommodations such as temporary suspension of an essential job function if the employee can resume the essential function in the future. Other laws that the EEOC enforces make it illegal to fire or discriminate against employees or applicants on the basis of pregnancy, childbirth, or related medical conditions.

    Qualified Employees

    The EEOC’s regulations aim to clarify the definition and limitations of the PWFA. For example, the law only applies to qualified employees with limitations directly related to pregnancy, childbirth, or related medical conditions. Whether a condition qualifies will be determined based on the existing Title VII precedent.

    The regulations provide examples of possible reasonable accommodations under the PWFA, such as:

    • The ability to sit or drink water
    • Closer parking
    • Flexible work hours
    • Appropriately sized uniforms and safety gear
    • Additional break time for bathroom use, eating, and resting
    • Leave to recover from childbirth
    • Reassignment from strenuous or unsafe activities 

    A recent federal court ruling in Texas found that Congress lacked the required quorum to implement the PWFA, meaning the EEOC cannot enforce the law against the state. The PWFA does not replace any existing federal, state, or local laws that provide greater protections for pregnant or nursing workers.

    Partner With A PEO

    As most small business owners spend their days wearing many hats trying to grow their business, they don’t often have the time to stay on top of every government regulation change. This is where GMS can make all the difference. GMS employs a team of HR experts who closely monitor legislative updates and can provide you with the guidance you need.

    If you are interested in learning more about how GMS can help keep your business stay compliant with the changing government regulations while also lowering your risk management and benefit costs, contact us today! Let us be your trusted partner in navigating the complexities of employment law so that you can spend your time growing your business.

  • In today’s fast-paced and increasingly demanding work environments, managing leave of absence requests is crucial for maintaining operational efficiency and employee well-being. However, balancing your business needs with your team’s health and satisfaction is often difficult.

    Leave of absence, separate from paid time off (PTO), allows employees to take extended time off to address personal matters. Leave of absence can be unpaid; however, employees will continue to receive their healthcare package and have guaranteed job security.

    A leave of absence, whether for health reasons, family care, or personal development, is not just a logistical issue—it’s a critical component of an employee’s relationship with their workplace. How you handle these requests can deeply influence employee morale, trust in management, and your company’s reputation as a caring employer. In addition, with rising awareness of the importance of mental health and work-life balance, businesses are under increasing scrutiny to adopt leave policies that support their employees’ well-being.

    Beyond these factors, as a business owner, you also have legal responsibilities regarding employee leave. Employees are protected by laws such as the Family Medical Leave Act (FMLA), and failure to address leave requests appropriately or retaliating against an employee who takes leave can result in lawsuits, penalties, and reputational damage that will be difficult to recover from. While a leave of absence can be stressful, we’ve gathered some resources to help you navigate them with your team while ensuring compliance.

    Creating A Leave Of Absence Policy

    One of the most significant concerns among employees is the fear that taking leave might hinder their job security or career progression. This fear can discourage employees from applying for leave, even when they genuinely need it, damaging morale, productivity, and more. By establishing a clear leave policy, communicating it effectively, and fostering an environment of open communication, you can empower your team to prioritize their health without fear of negative repercussions. Your leave policy should include:

    • Request and approval procedures: Detail the process for requesting leave, including advance notice requirements, the use of official forms, and whom employees should notify regarding their absence. In addition, describe how leave requests are evaluated and approved, including who can grant or deny leave and under what circumstances.
    • Eligibility criteria: Clearly define who is eligible for leave of absence, including full-time, part-time, and temporary employees, as well as any specific conditions or probationary periods.
    • Reintegration outline: Outline and communicate a reintegration plan with your team. Return-to-work programs help employees ease back into their job roles, potentially starting with part-time hours or adjusted duties.
    • Anti-discrimination policy: Explicitly prevent discrimination in performance evaluations due to leave. This can help reassure employees that their absence will not hinder their career progression.
    • Documentation requirements: Specify any documentation employees need to provide when requesting leave, such as medical certificates for sick leave or proof of eligibility for parental leave.
    • Employee responsibilities: Communicate employees’ duties during leave, such as staying in touch with supervisors, adhering to company policies, and providing updates on their status.
    • Consequences of policy violations: Explain the consequences of violating the leave policy, including disciplinary action, loss of benefits, or termination of employment.

    Preemptively establishing a leave of absence policy not only protects employees but also contributes to a more loyal and productive workforce. Though it takes time and effort to generate, being caught without a plan can lead to stress and internal confusion that will impact your bottom line.

    Managing Workloads During A Leave Of Absence

    It’s crucial to have strategies to ensure operational continuity during leave. In certain situations, detailed planning may not be feasible, such as an unforeseen injury to a loved one that requires an employee’s leave for caregiving. Conversely, in cases such as parental leave, there may be more lead time to organize workloads. Regardless, ensuring you have a detailed plan will help ensure your team remains productive. You can do this through:

    Cross-training employees

    Cross-training your team is a practical approach to mitigate the risk of being caught without adequate coverage. It requires your team to learn the roles and tasks that may not be part of their day-to-day. By ensuring that every team member possesses a broad range of skills and knowledge, critical tasks can still be completed regardless of when leave is taken. This proactive measure safeguards against disruptions and fosters a collaborative and supportive company culture.

    In addition, cross-training promotes skill development and empowers team members to take on new challenges and responsibilities. It encourages flexibility and adaptability within the workforce, ultimately enhancing your organization’s overall resilience and productivity.

    Contract or temporary hires

    Another way you can ensure your team continues to operate at peak efficiency is by leveraging contract workers or temporary hires. Bringing in additional support can prevent existing team members from becoming overburdened with extra responsibilities and potentially burning out – particularly for longer leaves such as parental leave, which can extend up to three months or more.

    Delegate and communicate

    Leave can be a stressful time for employees. To mitigate employee stress, your leadership team should make a detailed plan and delegate important tasks to the remaining staff. After delegating tasks, establish regular check-ins with the team. These check-ins can assess not only task progress but also accurately gauge team morale and identify signs of burnout or discontent.

    Pitfalls To Avoid

    When an employee takes leave for an extended period, it’s essential to ensure you have your paperwork in order. Details such as payroll should be worked out ahead of time if possible. Mishandling payroll during an employee’s absence can result in over or underpayment, which can be difficult to fix later. Take the time to review and adjust payroll calculations accordingly, factoring in any changes to hours worked, leave entitlements, and benefits.

    In addition, keeping accurate records of employee leave dates is crucial for managing schedules and ensuring adequate coverage. Without proper tracking systems, you risk scheduling conflicts, understaffing, or overstaffing, which can impact productivity and workflow.

    Lastly, don’t forget about your employees on leave. Neglecting to support and communicate with your staff during their leave can impact their morale and loyalty to your organization. Don’t overload them with messages; a card or a quick message can go a long way. Showing empathy and understanding and providing necessary support where possible can boost employee engagement upon return.

    GMS Services

    Managing leave is complicated; from workloads to legal obligations, it’s stressful for your whole team. Professional employer organizations (PEOs) like GMS offer a range of services that help simplify your HR tasks.

    One of the services GMS offers is employee training and recruitment. Our human resources experts work closely with you, offering expert guidance on recruitment and training strategies. We alleviate the administrative burdens associated with the entire employee life cycle, allowing you to maintain complete control over hiring decisions while we simplify the process. Contact us today, and let us help you navigate the complexities of being an employer.

  • For small business owners, sometimes the need for extra hands sneaks up unexpectedly. Whether it’s a sudden rush of customers, a seasonal demand, or a taxing project, the need for additional labor can be undeniable at times. Despite the necessity for extra help, it’s not always the right time or best financial decision to hire and onboard a new long-term employee.

    As your business faces the demand for more support, it’s essential to assess the situation carefully and explore alternative options such as leased employees. Hiring leased employees is a flexible and cost-effective way to address short-term staffing needs without committing to permanent hires.

    What Is A Leased Employee?

    A leased employee is contracted to work for a business through a staffing agency. While a leased employee performs tasks and duties for their assigned business, a staffing agency assumes responsibility for their salaries and associated HR administration. Leased employees offer flexibility and access to specialized skills without needing to go through the full hiring process. By improving efficiency and adaptability, employee leasing allows small businesses to remain competitive and keep up with industry demands.

    The Advantages Of Leased Employees For Small Businesses

    Leased employees offer numerous benefits for small businesses, serving as a strategic solution to address various operational challenges. When you opt for leasing employees, you have the ability to:

    Adapt to staffing fluctuations

    Leasing arrangements can vary from temporary to long-term based on your business’s needs. Temporary leased employees can resolve immediate staffing needs, addressing heightened demands during peak seasons, special projects, or sudden increases in workload. For businesses requiring a more permanent solution while still retaining flexibility, long-term leased employees are a favorable option. They can provide the skills needed or fill ongoing positions without the administrative burden of traditional hiring.

    Tap into expert skills without long-term contracts

    Employee leasing allows you to tap into a diverse talent pool with a wide range of skills and knowledge, all without the need to hire a full-time employee. This flexibility allows you to find a qualified leased employee that suits your exact project or need. Whether you’re in search of a temporary sales representative or a more long-term IT analyst, the flexibility of leased employment empowers you to acquire the exact skills you need precisely when you need them.

    Save on hiring costs

    Leasing employees is a cost-effective alternative to hiring full-time employees. With leased employees, you can save time and money on the recruitment process since this is handled by a staffing agency. You can also avoid the additional financial obligation of providing benefits like health care, retirement plans, and paid time off (PTO) because leased employees are not full-time employees. Additionally, you don’t need to worry about the associated financial burdens such as layoffs or severance packages.

    Lighten your HR load

    Since leased employees are managed by a staffing agency, you have fewer HR responsibilities on your plate. An agency takes care of HR tasks associated with leased employees, including processing salaries, administering benefits, and more. By entrusting experts to take care of staffing and HR duties, you can free up your own team’s time and resources. Plus, staffing agencies know the best practices and solutions for hiring, ensuring small businesses maximize the benefits of employee leasing.

    Comparing Leasing Employee To Traditional Hiring

    While leasing employees can offer numerous benefits for small businesses, it’s essential to consider all options. Before deciding on whether you want to lease employees, reflect on the following benefits of traditional hiring:

    • Stronger company culture: A part-time or full-time employee will become fully immersed in the company’s mission and values, fostering more loyalty and commitment. This cohesion enhances morale and cultivates a sense of unity among all employees.
    • Efficient integration of new hires: Traditional hiring allows for a smoother onboarding process, helping new employees quickly acclimate to company processes and dynamics. Bringing on a permanent employee can lead to better overall collaboration and teamwork.
    • Reduced legal and compliance risks: With traditional hiring, businesses have greater control over employment classification and compliance with labor laws. This reduces the risk of violating employment regulations, helping your business stay legally compliant.

    Deciding What Is Right For Your Business

    Leasing employees can be an advantageous decision for some businesses, but it’s crucial to identify your goals and assess compatibility with your business model beforehand. To start, evaluate your staffing demands and consider how a leased employee would fit in with your current employees. Think about what tasks or projects they could tackle and how their expertise could complement your existing team’s skills.

    Furthermore, determine whether employee leasing fits your budget and aligns with your long-term business goals. Compare the costs and weigh the benefits of all staffing options including contracting, part-time, full-time, as well as leasing. Contemplate how this position functions short-term and how it could evolve over time. If you’re debating between leasing an employee or hiring a full-time employee, consider the possibility of offering a leased employee a more permanent role in the future.

    How To Control Risks And Maximize Benefits

    When you decide leasing an employee is suitable for your business, set yourself up for success by adhering to the following:

    1. Establish clear communication and expectations: Encourage open communication with your leased employee to build trust and collaboration. Ensure you’re both on the same page regarding responsibilities and expectations as well as project goals and timelines.
    2. Monitor performance and provide feedback: Track and assess how your leased employee is fulfilling their role. Regularly check in and supply constructive feedback to promote improvement and growth.
    3. Offer targeted training and ongoing support: Provide specialized training sessions to enhance the skills related to their role. Give continuous support as your leased employee learns and adapts to the expectations of their role.

    Optimize Hiring With GMS

    If you’re considering expanding your team, a PEO like GMS can help you determine the best staffing option. From recruiting top talent to smooth onboarding, we make the hiring process simple and efficient. GMS can support your staffing needs and handle numerous HR responsibilities related to new employee management. Contact us today to discuss how GMS can enhance your hiring process!

  • The digital landscape has become an integral part of our everyday lives, providing access to essential services and information. In a significant move towards inclusivity, the U.S. Department of Justice (DOJ) issued a final rule requiring state and local governments to ensure the accessibility of their websites and mobile applications. This rule, with its far-reaching implications, is set to transform the digital experience for millions of Americans with disabilities across the country.

    Understanding The Rule’s Application

    The final rule ensures state and local governments make their digital content accessible to those with disabilities. Attorney General Merrick Garland highlighted that this rule is a testament to the Justice Department’s commitment to upholding the Americans with Disabilities Act (ADA) by ensuring equal participation in society for people with disabilities.

    The significance of this rule extends to a wide array of public services, including emergency information, health care, education, transportation updates, and more. Non-compliance with these accessibility standards could hinder individuals with disabilities from accessing these essential services, highlighting the critical importance of this regulatory development.

    Technical Standards And Exceptions

    The rule adopts the Web Content Accessibility Guidelines (WCAG) Version 2.1, Level AA, as the technical standard for state and local governments’ web content and mobile applications. However, certain exceptions exist for specific types of content, such as archived web content, pre-existing electronic documents, and content posted by third parties under certain circumstances, ensuring a balanced approach to compliance.

    Significance And Impact

    The impact of this rule extends beyond mere regulatory compliance. Tony Coelho, an original sponsor of the ADA, emphasized the evolving nature of accessibility, particularly in the digital realm. He highlighted the importance of extending the ADA’s reach to the online sphere, ensuring equal participation for all individuals in an increasingly digital society. The rule’s significance is underscored by its potential to level the playing field and foster inclusivity in the digital space, aligning with the evolving needs of a society that’s increasingly reliant on digital activities.

    Distinct Employment Obligations

    It’s crucial to note that while state and local employees must be well-versed in these regulations, compliance with the rule does not guarantee Title I requirements of the ADA for state and local entities in their capacity as employers. This distinction emphasizes the multifaceted nature of ADA compliance and the unique obligations it entails in different contexts.

    Timeline For Compliance

    The effective dates of the rule are staggered based on the size of the covered entity. Localities with a population of over 50,000 have a two-year window to ensure compliance, while areas with smaller populations are granted a three-year timeline. This phased approach aims to facilitate a smooth transition towards digital accessibility, allowing entities to align with the regulatory requirements effectively.

    Presidential Endorsement

    In a post on X, President Joe Biden emphasized the far-reaching impact of the proposed web accessibility rule, highlighting its potential to improve online accessibility to state and local services for nearly 50 million individuals with disabilities. His endorsement reflects the administration’s commitment to fostering a more inclusive and accessible country through regulatory measures that address the evolving needs of its citizens.

    Partnering With A PEO: Your Strategic Advantage In Digital Accessibility Compliance

    As business owners grapple with the complexities of adhering to the DOJ’s new digital accessibility regulations, partnering with a professional employer organization (PEO) can be a strategic move. A PEO, like GMS, does more than offer support with HR tasks or payroll processing; we stand as a pillar of expertise in regulatory compliance, including the nuanced terrain of ADA standards.

    When you partner with GMS, you’re ensuring compliance and fostering an inclusive environment, demonstrating a commitment to all clients and employees. Ready to elevate your business in a world of digital advancement? Together, we can build a future where every individual has the keys to unlock the full potential of the digital world. Contact our HR experts today to get started!

  • The U.S. Department of Labor’s (DOL’s) has implemented a new overtime rule that will significantly increase the salary threshold for white-collar exemptions to overtime requirements in two phases, including the following:

    • Effective July 1, 2024, the Fair Labor Standards Act’s (FLSA’s) annual salary-level threshold for white-collar exemptions to overtime requirements will increase from $35,568 to $43,888. 
    • Effective January 1, 2025, the annual salary threshold will rise to $58,656 – nearly a 65% increase from the current level. 

    The Fair Labor Standards Act (FLSA) mandates overtime pay for the majority of employees, but it also provides exceptions for certain job categories. Those employees who qualify for overtime pay are labeled as “nonexempt,” while those who do not qualify are termed “exempt.” The most frequently seen exemptions from overtime, commonly known as the “white-collar exemptions,” encompass roles such as executive, administrative, professional, outside sales, and specific computer-related jobs.

    Who Is Affected

    To qualify for white-collar exemptions, employees must be paid a salary of at least the threshold amount and meet certain duties tests. If they are paid less than the threshold or do not meet the tests, they must be paid 1.5 times their regular hourly rate for hours worked in excess of a 40-hour work week. FSLA’s white-collar executive, administrative, and professional exemptions are not eligible for overtime pay.

    The new rule is expected to expand overtime protections to lower-paid salaried workers, which could provide meaningful financial relief for some employees. However, the changes may also burden small businesses, potentially forcing them to cut jobs or raise prices.

    Proceed With Caution

    Employers will need to carefully review their exempt employees’ salaries and decide whether to raise them to maintain the exemption or to reclassify them as non-exempt and pay overtime. This process should be approached cautiously, as the rule is likely to face legal challenges.

    Employers will need to:

    • Budget for increases in salary and overtime expenses. 
    • Plan for communication or reclassification decisions. This will include training reclassified employees on timekeeping requirements and rules against off-the-clock work. Employers must also manage concerns that employees might raise if they are upset about losing their salaried status. 
    • Considering the 2025 salary-level thresholds and the interim, employers must determine whether to accomplish this in two steps or jump straight to the 2025 threshold. 
    • Be mindful of state, local, and wage and hour laws that may impose additional requirements for exempt status beyond federal requirements under the FLSA. 

    How To Navigate This Rule

    GMS can help your company stay compliant with the DOL’s new overtime rule and manage the associated challenges. Our team of HR experts can assist with analyzing your workforce, determining the appropriate classification for each employee, and implementing any necessary salary adjustments or reclassifications.

    We can also provide guidance on navigating the legal uncertainties, training programs for managers and employees on the new requirements and ensuring your payroll and timekeeping systems are updated to comply. By partnering with GMS, you can confidently navigate these complex regulatory changes and avoid penalties or disruptions to your business. Contact us today!

  • As more states across the U.S. legalize cannabis, its presence in the workplace has become a pressing issue for employers. States such as Colorado, Ohio, New York, New Jersey, and many others have legalized cannabis for recreational use, while even more have legalized it for medical purposes. As a business owner, this legalization presents a new set of challenges for maintaining workplace safety and compliance with employment laws.

    The primary concern centers on ensuring your workforce is unimpaired while on the job, especially in industries where safety is paramount, such as transportation, health care, and construction. As you can’t dictate what an employee does off the clock, adapting your business policies to prioritize sober working is crucial.

    Creating these policies is no small task; given the ever-changing legal landscape and the variations in laws across different states, any policy implemented today will likely require future updates and refinements to keep pace with ongoing changes. However, creating internal policies should still be a priority as it can safeguard your business against discrimination or wrongful termination suits if any incidents occur. To help you get started, we’ve compiled essential information to formulate a policy that suits your business needs and ensures compliance with local and federal regulations.

    Understanding Cannabis And Its Effects

    Cannabis or marijuana, primarily known for its psychoactive and medicinal properties, contains several compounds, with tetrahydrocannabinol (THC) and cannabidiol (CBD) being the most significant. Recreational cannabis has THC and CBD; the THC is the primary psychoactive component known for its ability to impair cognitive and motor functions, affecting decision-making, reaction times, and coordination. Separately, medical cannabis is stripped of the THC while keeping the CBD non-psychoactive and highlighted for its potential therapeutic benefits, such as reducing inflammation and anxiety without causing a “high.”

    The effects can vary depending on the individual, method of consumption, potency, and personal tolerance. However, typically, the impairment from smoking cannabis can last several hours, while edibles, which take longer to metabolize, can be delayed and last significantly longer. Understanding these variances is crucial for employers and employees to make informed decisions about consumption during personal time.

    Developing Workplace Policies

    As an employer, it’s essential to balance both the rights of employees who use marijuana legally outside of work and your ability to maintain a safe work environment. This can include implementing policies that prohibit working under the influence of marijuana, even if used off-duty. However, you must check your local and state laws to remain compliant when crafting your drug policies.

    In some states, such as Illinois, where cannabis has been reclassified as a “lawful product,” you’ll need to be mindful not to break the state’s Right to Privacy in the Workplace Act, which prohibits employers from discriminating against employees for off-duty “use of lawful products.”

    Despite the complexities of these differing state laws, you can still develop policies that safeguard your employees and minimize the risk of accidents. Your policies should clearly and fairly outline your stance on cannabis to prevent impairment in the workplace. In addition, it should clearly define the consequences of policy violations to ensure that all team members understand the seriousness of compliance. Having a detailed policy that includes possible repercussions can help safeguard your business in the event of a violation that leads to a termination of employment.

    In addition to developing comprehensive policies, it’s critical to train your team to ensure effective implementation. These policies should also be easily accessible to your staff for review whenever necessary. Including them in an employee handbook is an ideal start, as it’s often the most centralized resource for employees to find company information.

    Testing And Monitoring

    Unlike alcohol, cannabis can stay in an individual’s bloodstream for 30 days and hair for up to 90 days or longer for regular consumers. This means drug tests aren’t always reliable for determining active impairment. In addition, there is also no legally or medically accepted definition of what constitutes impairment for cannabis use, making it more difficult to accurately determine an employee’s non-compliance with your policies.

    However, there are a few signs you can look out for. If you carefully document instances over time, you should be protected from a wrongful termination suit if you end up needing to fire an employee due to non-compliance. These signs include:

    • Poor muscle or limb coordination 
    • Delayed reaction times and abilities 
    • Red eyes
    • Changes in speech or overall behavior
    • Negligent or carelessness while on the clock
    • Panic or anxiety

    While employees may have the right to use marijuana recreationally or medically in states where it is legal, employees are generally not permitted to be impaired at work, especially in safety-sensitive positions. This means business owners are well within their rights to enact policies and monitor employees to protect their teams and businesses.

    Prevention And Employee Assistance

    While implementing policies is a significant step in ensuring a safe work environment, establishing a healthy workplace culture that prioritizes safety is another way to help prevent injuries due to cannabis use. Positive cultures tend to have collaborative mindsets where teams and individuals work together towards common goals. This sense of shared responsibility not only boosts productivity and retention but also creates an environment where employees are motivated to perform at their best. This supportive atmosphere helps ensure that safety is a collective priority and can significantly reduce the risks of workers showing up with impaired functioning.

    In addition, offering employee assistance programs (EAPs) can help employees struggling with substance abuse issues. EAPs can help address employees’ personal issues by providing confidential and professional counseling; some even offer this service via phone, text, and email 24 hours a day, 365 days a year, to ensure your team can get the help they need.

    How GMS Can Help

    Professional employer organizations (PEOs), like GMS, can help with various tasks, including developing your HR policies and procedures and employee training. As a small business owner, you have a lot on your plate, and ensuring compliance with local and federal regulations can be complicated, stressful, and time-consuming.

    Additionally, GMS can help you offer employees the best health care benefits while reducing your overall costs. Traditional health care arrangements are no longer working. Whether your organization lacks an HR department or simply needs a resource to make more informed decisions about the management of benefits, GMS is here to help. GMS changes the approach to increase affordable options and give your employees access to small business health insurance.

    GMS takes the administrative burdens off your plate. Our team of experts ensures compliance, giving you peace of mind while saving you time and money. Contact us today to get started.

  • Earlier this week, the Federal Trade Commission (FTC) issued a final rule to ban noncompete clauses nationwide, and it is set to be a game changer for American workers and businesses. This bold move is aimed at promoting competition, protecting the freedom of workers to change jobs, fostering innovation, and encouraging new business formation.

    What Is A Noncompete?

    A noncompete agreement is used by companies to prevent employees who have access to sensitive or proprietary information from taking that information to a competitor or using it to start their own competing business. Companies often invest significant resources into training and developing their employees, so they want to protect that investment by preventing those employees from immediately going to work for a rival firm.

    The Impact Of The Ban

    The FTC estimates the ban on noncompetes will lead to a significant increase in new business formation, with more than 8,500 additional new businesses created each year. This is projected to result in a 2.7% annual growth in new business formation. In addition, the rule is expected to drive innovation, potentially leading to an average increase of 17,000 to 29,000 more patents each year for the next decade.

    Higher earnings and lower health care costs

    The ban is also anticipated to positively impact workers’ earnings, with the average worker estimated to see an additional $524 per year. Additionally, the rule is expected to lower health care costs by up to $194 billion over the next 10 years.

    Worker freedom and opportunity

    The ban on noncompetes is a crucial step toward ensuring that American workers have the freedom to pursue new job opportunities, start their own businesses, and bring fresh ideas to the market. By eliminating the barriers imposed by noncompetes, workers will have greater flexibility and autonomy in their careers.

    Impact On Workers

    Noncompete clauses have been widely criticized for keeping wages low, stifling creativity, and restricting the dynamism of the American economy. An estimated 30 million workers (one in five Americans) are currently subject to noncompetes. These clauses often force workers to either remain in undesirable jobs or face significant hardships and costs if they seek to change employment.

    Prohibiting Noncompetes

    Under the new rule, existing noncompetes for the vast majority of workers will no longer be enforceable. While existing noncompetes for senior executives can remain intact, employers are banned from entering into or attempting to enforce any new noncompetes, even for senior executives. Employers will be required to notify workers bound by an existing noncompete that it will not be enforced against them.

    Public Feedback And Final Rulemaking

    The FTC’s decision to ban noncompetes was informed by a substantial public comment period, which over 25,000 comments expressed support for the ban. The Commission reviewed each comment and adjusted the proposed rule in response to public feedback.

    Alternatives To Noncompetes

    The Commission identified alternatives to noncompetes that enable firms to safeguard their investments without resorting to noncompete agreements. These alternatives include trade secret laws and non-disclosure agreements (NDAs), which provide employers with established means to protect proprietary information. In addition, employers can compete for workers’ services by improving wages and working conditions.

    Finalizing The Rule And Ensuring Compliance

    The final rule allows existing noncompetes for senior executives to remain in force but prohibits the enforcement of new noncompetes with senior executives. Furthermore, the requirement for employers to formally rescind existing noncompetes has been eliminated to streamline compliance.

    The rule will become effective 120 days after publication in the Federal Register. Employers will be required to provide notice to workers constrained by existing noncompetes that these agreements will not be enforced in the future. To facilitate compliance, the Commission has included model language in the final rule for employers to communicate with workers.

    Once the rule is effective, market participants can report suspected violations to the Bureau of Competition by emailing noncompete@ftc.gov.

    Partner With GMS To Stay Up To Date

    Navigating the complex and ever-changing employment laws and regulations can be a significant challenge for many businesses. That’s where a trusted professional employer organization (PEO) like GMS can make all the difference for your company. By outsourcing HR functions to GMS, companies can ensure they remain compliant with the new rules such as the FTC’s ban on noncompetes while also benefiting from our comprehensive suite of services and expert guidance. With GMS in your corner, you can focus on growing your business. Reach out to our experts today!