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  • The recent decision by the 7th U.S. Circuit Court of Appeals has brought to light crucial implications for employers’ responsibilities under the Family and Medical Leave Act (FMLA). This ruling emphasizes the need for employers to adjust performance expectations for employees who are on approved FMLA leave. Continue reading to dive into the details of this decision and its potential impact on how employers navigate the FMLA.

    Brief Overview Of The FMLA

    The FMLA is a federal labor law that provides certain employees with essential benefits related to leave for family or health issues. The purpose of the FMLA is to help employees balance their work and family responsibilities, allowing eligible employees to take unpaid, job-protected leave for specific family and medical reasons.

    Employees are eligible if they have worked for their employer for at least 12 months. In addition, they must have worked at least 1,250 hours over the past 12 months. The employer must have 50 or more employees within 75 miles of the employee’s location.

    Qualified employees can take up to 12 weeks of unpaid leave each year for the following reasons:

    • Birth and care of a newborn child
    • Adoption or foster care placement of a child
    • Caring for an immediate family member (spouse, child, or parent) with a serious health condition
    • Taking medical leave when the employee is unable to work due to a serious health condition 

    Employer responsibilities

    Employers covered by the FMLA must provide eligible employees with the specified leave. Group health benefits must be maintained during the leave. FMLA applies to public agencies, public and private elementary and secondary schools, and companies with 50 or more employees. Time taken off work due to pregnancy complications can count towards the 12 weeks of family and medical leave for the allocated year.

    The Case: OSF HealthCare System Vs. Former Employee

    A former employee of OSF HealthCare, an Illinois-based health care provider, filed a lawsuit claiming they violated her rights under the FMLA. The plaintiff alleged that the company failed to reasonably adjust its performance expectations to reflect her reduced hours while on leave. She cited instances where unadjusted deadlines were imposed despite her reduced office hours. In addition, she highlighted a substantial increase in workload during her leave period, including integrating two acquired hospitals into her unit. The plaintiff also pointed out that certain goals required mentorship, which she did not receive, and coordination with others outside her authority or control.

    In response, OSF defended its actions by stating the plaintiff was terminated for not meeting performance expectations outlined in a performance improvement plan (PIP) established upon her return. A PIP is a written document that outlines an employee’s performance gaps and provides a roadmap for improvement.

    Court Ruling And Implications

    The district court initially ruled in favor of the defendant, emphasizing the plaintiff failed to establish a causal connection between the exercise of her FMLA rights and her termination. However, the 7th Circuit Court of Appeals highlighted a genuine dispute over the amount of approved leave the plaintiff took, which could impact the outcome of the case. The court ruled that such a significant difference in testimony regarding the duration of leave warranted resolution by a jury.

    The appeals court also questioned the timing and motivation behind implementing the PIP, emphasizing that the defendant did not communicate to the employee that poor performance led to the PIP or that deficiencies would result in termination. Consequently, the court vacated the decision and remanded the case for trial, underlining the need for a jury to assess the sincerity of the employer’s motivation.

    Key Takeaways For Employers

    The ruling by the 7th U.S. Circuit Court of Appeals serves as a vital reminder for employers regarding their responsibilities under the FMLA. It underscores the following key implications:

    • Adjusting performance expectations: Employers must adjust performance expectations for employees on approved FMLA leave, considering reduced hours and potential limitations resulting from the leave. 
    • Causal connection: Establishing a causal connection between an employee’s use of FMLA leave and their termination is crucial in FMLA cases. Employers should ensure that disciplinary actions are not perceived as retalitory or interfering with the employee’s FMLA rights. 
    • Transparency and communication: Employers need to effectively communicate performance-related concerns and any subsequent disciplinary measures to employees, especially in cases where FMLA leave is involved. Lack of transparency could be perceived as pretextual and potentially lead to legal ramifications. 

    Stay Compliant, Partner With A PEO

    The intricacies of the FMLA can feel overwhelming for small business owners. However, there’s a strategic solution: partner with a professional employer organization (PEO) like GMS. We offer expertise in HR compliance, assist with leave requests associated with FMLA, and ultimately ensure you’re compliant with FMLA regulations. It’s time for you to focus on propelling your business forward and let us handle the nitty-gritty aspects of your business. It’s a win-win scenario that empowers businesses to thrive. Contact us today to learn more.

  • In a bid to overturn the U.S. Department of Labor’s (DOL’s) final rule, which aims to tighten the criteria for classifying workers as independent contractors, Representative Kevin Kiley, R-California, and Senator Bill Cassidy, R-Louisiana, have introduced the Congressional Review Act (CRA) resolutions. While it’s scheduled to take effect on March 11, 2024, several business organizations are challenging the rule in court. Continue reading to dive into the key aspects and implications of this rule, the responses from stakeholders, and the potential outcomes of the ongoing battle.

    The Controversial Rule

    The new rule, set to replace the 2021 framework, introduces a more complex six-factor test to determine whether a worker should be classified as an employee or an independent contractor. This shift has been resisted by several business organizations, including the U.S. Chamber of Commerce, which has joined a lawsuit challenging the rule. The Chamber of Commerce argues that the new rule fosters ambiguity, restricting businesses’ ability to provide essential training to independent workers.

    Criticisms And Concerns

    Representative Kevin Kiley has strongly criticized the new rule, alleging it restricts the freedom of U.S. workers to operate as independent contractors. He contends the rule will jeopardize the livelihoods of millions of independent professionals and take away the freedom of many others to enjoy flexible work arrangements.

    In addition, introducing the six-factor test has raised concerns among businesses, particularly small businesses, regarding the potential confusion in determining worker classification. This uncertainty threatens the independent contractor model, enabling companies to scale their operations and retain specialized expertise while granting workers flexibility and control over their work activities.

    Six Factors Of The New Test

    The six factors of the new test include the following:

    1. The degree of employer control over the work

    2. The worker’s opportunity for profit or loss

    3. The level of skill and initiative required for the work

    4. The permanence of the working relationship

    5. The worker’s investment in equipment or material

    6. The extent to which the service rendered is integral to the employer’s business

    Seeking Clarity And Challenging The Rule

    Representative Kevin Kiley has called for the withdrawal of the independent contractor rule and has requested specific guidance from the DOL’s Wage and Hour Division Administrator on the criteria for employee and independent contractor classification. His concerns center on the need for clarity and understanding amidst the complexities of the new rule.

    The Road Ahead

    Despite the intense efforts to challenge the rule, the odds of a successful resolution remain uncertain. The Democrat-controlled Senate presents a formidable obstacle, requiring a two-thirds majority to overcome a potential presidential veto. In addition, the rule faces multiple legal challenges, with lawsuits alleging its illegality and deviation from the Fair Labor Standards Act (FLSA).

    The battle over the worker classification rule is poised to have far-reaching implications for businesses, workers, and the regulatory landscape. As the debate unfolds, stakeholders eagerly await the resolution of this issue, mindful of the potential impact on the workforce and the broader economy.

    Advice For A Small Business Owner

    We’ll make it simple – consider partnering with a professional employer organization (PEO). PEOs offer a compelling avenue for small businesses to address these challenges. By partnering with a PEO, small businesses can leverage expertise in HR management, gain access to comprehensive guidance on employment regulations, and receive tailored support in navigating worker classification complexities. As the landscape of labor regulations continues to evolve, the role of PEOs in assisting small businesses in effectively classifying workers and ensuring compliance with changing labor standards cannot be overstated. Meet Group Management Services (GMS), a certified PEO (CPEO), ready to take on the administrative burdens small business owners don’t have the time and energy to worry about. Get a quote from us today to start your journey with a simpler, safer, and stronger business.

  • The U.S. Department of Labor (DOL) has introduced a new rule under the Fair Labor Standards Act (FLSA) set to take effect on March 11, 2024. This rule could potentially lead to significant changes in how contract workers are classified, with potential implications for employers regarding benefits, insurance coverage, and exposure to employment-related lawsuits.

    The New Rule

    The Employee or Independent Contractor Classification Under the Fair Labor Standards Act rule, which replaces a rule established during the Trump Administration, aims to provide a clearer analysis for employers to determine a worker’s employment status. It re-adopts an enhanced economic realities test for worker classification that was previously in effect under an Obama administration rule. The new rule introduces a six-factor test to guide employers in determining a worker’s employment status under the FLSA, as opposed to the two-factor test under the Trump administration.

    The six factors in determining worker status under the new rule include the following:

    • Opportunity for profit or loss depending on managerial skill
    • Investments by the worker and potential employer
    • Degree of permanence of the work relationship
    • Nature and degree of control
    • Extent to which work performed is an integral part of the business
    • Skill and initiative

    Concerns With The New Rule

    Employers have expressed concerns about the broader impact of the new rule, fearing that it may have consequences beyond just minimum wage and overtime pay protections. While the DOL insists that the change is tailored and limited, some experts and industry professionals believe otherwise.

    In addition, the change in worker classification may have significant implications for various industries, particularly the construction sector. However, the National Electrical Contractors Association has expressed support for the new rule, citing its potential to address the widespread misclassification of workers across industries.

    The new rule faces court challenges, with concerns raised about potential confusion arising from workers being classified differently under various statutes and across different states. This confusion could lead to increased employment-related litigation, as highlighted by pending lawsuits challenging the rule.

    Implications For Workers And Employers

    While some labor unions and advocates support the reclassification of workers as employees for wage and hour purposes, certain groups, such as app-based gig workers and business advocates, are concerned about the potential loss of opportunities and flexibility if gig workers were to be classified as employees.

    In addition, the new rule may prompt employers to rethink their insurance coverage. This could lead to more confusion about the coverage of certain claims and the need for additional insurance, such as employment practices liability insurance (EPLI) or directors and officers (D&O) liability insurance.

    How A PEO Can Help

    In light of the changes stemming from the DOL’s new rule on employee classification, businesses may find value in seeking the support of a professional employer organization (PEO) like Group Management Services (GMS). PEOs offer expertise in navigating complex employment regulations, providing guidance on worker classification, and assisting in the management of benefits and insurance coverage. Through a partnership with GMS, businesses can proactively address the challenges posed by the new rule, ensuring compliance while maintaining their focus on core business operations. As the regulatory landscape continues to evolve, leveraging the resources and expertise of a PEO can empower businesses to adapt effectively and thrive in the face of changing employment practices and legal requirements. If you’re interested in learning more about what a partnership looks like with GMS, contact us today.

  • Picture this: you’ve identified two ideal candidates for a job vacancy. They check all the boxes for qualifications and appear to be a perfect match for your company culture. During the final stage of the interview process, an employee asks Candidate A in passing about their marital status and whether they have children. This inquiry seemed harmless at the time, and you let it pass without much thought, however, when your company opts to hire Candidate B, you face a discrimination lawsuit from Candidate A.

    It’s no surprise that it takes a lot of questions to determine whether a candidate is the right fit for your company. However, you may not know that there are quite a few interview questions and topics that can land your company in trouble. Under the U.S. Equal Employment Opportunity Commission (EEOC), the supposed conversational question on marital and family status in the above scenario was illegal – and Candidate A was within their rights to follow legal action.

    Hiring is a stressful time for many reasons, and preparing your hiring team with the knowledge they need is one way to ensure compliance with federal laws and regulations.

    Employment Laws And Regulations

    Employment laws extend beyond federal regulations. There are several local, state, and city laws that your business is required to follow. One example of this is the city of Cincinnati’s Salary Equity Ordinance, a measure that took effect in March 2020. This ordinance made it illegal for employers in Cincinnati to ask about a job candidate’s pay history. California Labor Code 432.3, a state-wide law, similarly makes questions surrounding salary history illegal.

    While this ordinance relates to Cincinnati employers, there are many state and city laws across the country, so it’s crucial you fully understand your local regulations. Unlawful questioning can lead to various consequences, including discrimination lawsuits or an investigation by the EEOC, which can be frustrating and challenging to recover from.

    Problematic Topics For Job Interviews

    To safeguard your business, it’s crucial to understand illegal interview questions before you start the interview process. Typically, when you’re ready to fill a vacant position, you’re under time pressure, making it too late to meticulously review your questions for legal compliance. At this point, your business becomes vulnerable to potential lawsuits.

    Some illegal interview inquiries are clear – you shouldn’t ask questions about a job candidate’s race or sexual identity. However, there are several less obvious questions that are also illegal. In addition, as with the marital and familial status example, what you may see as a casual attempt at small talk can be interpreted as a topic that’s off-limits. This means that beyond reviewing your prepared interview questions, it’s crucial to equip your hiring team with guidance on safe conversational topics to avoid inadvertently broaching illegal subjects.

    To help you get started, here are some topics to avoid or proceed with severe caution:

    National origin and citizenship

    Any question regarding a candidate’s 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 about a candidate’s accent could be interpreted as an attempt at discrimination. You are, however, allowed 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 needed.

    Religion

    Avoid questions that involve a candidate’s religion. 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 their beliefs.

    Pregnancy status

    Even if the person interviewed is pregnant, it’s illegal to ask about their pregnancy. Not only does this violate set pregnancy discrimination laws, but it can appear as gender discrimination since male candidates won’t have to answer the same questions. General questions about any future planned leave are acceptable if the question isn’t tied to pregnancy. Focus the interview on other neutral job-related questions involving work responsibilities to see if the candidate can perform the necessary tasks.

    Disability

    The Americans with Disabilities Act (ADA) makes it illegal for employers to ask 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 prescriptions they take.

    In addition, do not ask if an applicant will need reasonable accommodation unless you know the candidate has a disability. According to the EEOC, it’s acceptable to ask about reasonable accommodations if the applicant voluntarily reveals their disability or there is 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, an individual working at a bar or other 21-plus environments will need proof of age. Even a question such as 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, no federal law prevents 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, such as California, Connecticut and Massachusetts, ban the practice. As such, check your state’s regulations 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 essential to ensure your business remains compliant throughout the process. 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 (PEO) that can not only oversee employee hiring and training but also help you shoulder the administrative burden created by crucial HR functions. The GMS team can help you stay current on the latest rules and regulations while managing everything from your company’s payroll to employee benefits plans.

    Contact us today to learn more about what we can do to help you protect your company now and prepare for the future.

  • As a small business owner, the day-to-day can feel like an endless cycle of putting out fires and being pulled in conflicting directions, leaving you with little to no time to work on the aspects of your business you’re most passionate about. However, HR can’t be ignored; it involves intricate and time-consuming tasks that demand ongoing attention. If mismanaged, your company could face harsh penalties and reputational harm that could take months or years to recover.

    While handling it all yourself may seem doable, as your business grows, it may not be possible to juggle the many moving pieces that make up successful and compliant HR policies and procedures – even with the best intentions, mistakes and oversights happen. Professional employer organizations (PEOs), such as GMS, help ensure nothing falls through the cracks.

    What Is A PEO?

    PEOs manage various HR tasks, such as benefits administration, payroll processing, recruitment, risk management, and other operations responsibilities. PEOs help safeguard your business against potential legal and reputational pitfalls. They specialize in maintaining compliance, ensuring that your HR policies align with federal and local employment regulations.

    In addition to compliance, they serve as a partner in the strategic management of HR functions. Through optimizing processes and introducing best practices, PEOs can significantly enhance your overall efficiency and productivity, which help attract and retain top talent.

    PEOs act as an extension of your business and provide the support needed to navigate the complexities of HR. While PEOs take on the administrative burdens of HR, they follow your lead. This arrangement ensures that your business’ core identity and operational direction remain firmly in your hands. In other words, PEOs don’t take over your business. Instead, they free up your time and energy by taking over the administrative aspects of HR processes so you can focus on core business activities such as strategic planning, business development, and customer engagement.

    Benefits Of Working With A PEO

    PEOs allow you to offer exceptional and competitive benefits to your team. PEOs pool their buying power and can negotiate with insurance and benefits vendors, giving you access to broader and more competitive benefits packages. These can include health insurance, dental and vision plans, retirement savings plans, and even wellness programs, which might not be possible for you to offer as a smaller business on your own.

    The ability to offer top-tier benefits packages can significantly impact your company’s recruitment and retention efforts. In a competitive job market, attractive benefits packages stand out to high-performing talent, making them more likely to join and stay with your company long-term.

    In addition, partnering with a PEO can lead to the following:

    • Financial savings: One way PEOs can save money is by reducing employee turnover costs. Not only is hiring simplified and faster, but partnering with a PEO can help refine your HR processes, helping with overall job satisfaction and retention.
    • Technology system access: Partnering with a PEO provides access to several technology platforms, including human resources information systems (HRIS), online payroll solutions, and more. These user-friendly platforms can seamlessly integrate with your existing systems, enabling straightforward access to employee information, report generation, and data storage capabilities.
    • Scalability: As your business grows, a PEO can quickly adapt to your changing needs, from adding new employees to expanding into new cities or states. This scalability can be a significant advantage for rapidly growing businesses.
    • Enhanced recruitment: PEOs equip you with the necessary tools and expertise for efficient employee recruitment, onboarding, and ongoing training processes. From creating a job posting to screening various candidates, PEOs free up your time so you only interview qualified applicants. Beyond screening talent, PEOs help establish a complete onboarding process, ensuring new hires are effectively integrated into your company and receive the training they need to succeed.
    • Employee development and training: Ongoing training is necessary to ensure your team is well-versed in their responsibilities and the company’s procedures. PEOs can help facilitate this through learning management systems (LMS), enabling you to establish and track employee training programs.

    Is A PEO Right For My Business?

    There are many factors to consider when deciding if a PEO is right for your business. First, it’s crucial to take inventory of your specific pain points. Are you looking for help with payroll, compliance, employee benefits, workers’ compensation, or all of the above? Understanding your needs will help you choose if a PEO is right for you.

    Additionally, consider the cost of a PEO. PEOs will save you time and money in the long run; however, it’s crucial to understand the pricing structure and compare it against the potential cost savings to ensure it’s truly the best decision for you.

    Overall, PEOs offer an excellent solution for small businesses aiming to develop and sustain a strong workforce. Securing top talent involves more than just an appealing job title; employees seek organizations that provide competitive benefits and have comprehensive processes and policies in place.

    HR With GMS

    Our goal is to help employers make their business simpler, safer, and stronger through dedicated HR support. We provide comprehensive HR solutions to companies small, medium, and large throughout the United States, allowing them to increase operational efficiencies, save money, and enhance the overall employee experience.

    With GMS, is a one stop shop, you won’t have multiple vendors providing multiple services. You get one team with years of experience managing HR, payroll and tax, benefits, and risk management. We provide:

    • Expertise: GMS offers a wide range of services and customized support. For the best fit, explore our offerings to ensure our capabilities align with your needs.
    • Peace of mind: GMS is a certified professional employer organization (CPEO), meaning we meet the requirements set by the IRS and can provide specific financial protections and tax benefits.
    • HR in a crisis: Are you ready to handle an HR crisis? GMS can help your business navigate various challenges, from handling sexual harassment complaints to managing workers’ compensation claims. We can ensure your policies remain current and your team is well-equipped to address any challenges. We are always ready to provide support during crises.

    Whether you know exactly what you need help with or aren’t sure where to start, our team is ready to help. Contact us today to connect with one of our experts!

  • In the dynamic landscape of small businesses, owners often find themselves juggling multiple roles, from managing operations to ensuring compliance with labor laws. With limited resources and personnel, handling HR tasks can be daunting, time-consuming, and prone to errors. However, partnering with a professional employer organization (PEO) can offer substantial benefits. Let’s dive into why outsourcing to a PEO could be a game-changer for businesses, even those with as little as five employees.

    Expertise At Your Fingertips

    Small businesses often lack dedicated HR departments or personnel with extensive HR expertise. PEOs bring seasoned professionals to the table who specialize in various HR functions, including the following:

    • Payroll processing
    • Benefits administration
    • Compliance management
    • And more

    By outsourcing to a PEO, small businesses gain access to knowledge and experience without the overhead costs of hiring full-time HR staff.

    Enhanced Benefits Package

    Attracting and retaining top talent is a constant challenge for small businesses, especially when competing against larger corporations with robust benefits packages. PEOs pool together employees from many companies (the PEOs clients), creating economies of scale that enable access to high-quality benefits at competitive rates. From health care and retirement plans to wellness programs and employee assistance services, PEOs empower small businesses to offer comprehensive benefits that are competitive with larger businesses.

    Streamlined Compliance

    Navigating the ever-evolving landscape of employment laws and regulations can be daunting for small business owners. Non-compliance can result in hefty fines, legal liabilities, and reputational damage. PEOs specialize in staying on top of these changing regulations, ensuring their clients remain compliant with federal, state, and local laws. By outsourcing compliance management to a PEO, small businesses can mitigate risks and focus on growth initiatives with peace of mind.

    Time-Saving Solutions

    Time is precious for small business owners wearing multiple hats. Handling HR tasks, such as payroll processing, employee onboarding, and performance management, can eat into valuable time that could be spent on strategic initiatives. PEOs automate these mundane HR processes, streamline workflows, and provide self-service tools that empower employees to manage their information more efficiently. This frees up valuable time for small business owners to focus on driving innovation, expanding market reach, and nurturing client relationships.

    GMS – The One-Stop Shop For Your Outsourcing Needs

    In an increasingly competitive business landscape, small businesses must leverage every available resource to thrive and succeed. Partnering with a PEO offers small businesses a strategic advantage by providing access to expertise, cost-efficient solutions, enhanced benefits packages, streamlined compliance, and time-saving tools.

    At Group Management Services (GMS), a certified PEO (CPEO), we’re here to help businesses in all different industries with as few as five employees to hundreds. If you’re that small business owner hanging on by a thread, look no further – we’re your one-stop shop. Let us unlock your full potential, maximize operational efficiency, and position your business for sustainable growth in the marketplace. Contact our HR experts to get started!

  • A Texas district court judge has postponed the effective date of the National Labor Relations Board’s (NLRB’s) joint employer rule by two weeks, shifting it from February 26, 2024, to March 11, 2024. This move has created heated discussions and raised questions about its potential implications across various industries.

    Unpacking The New Rule’s Far-Reaching Standard

    The NLRB’s joint employer rule introduces an expansive standard, requiring that companies should be considered joint employers of contract and franchise workers. This will require them to engage in collective bargaining with unions if they exert control over critical working conditions such as pay, scheduling, discipline, and supervision, regardless of the nature of this control – whether direct, indirect, or unexercised.

    In response to the delay, the court indicated that “an opinion with the court’s reasoning will be issued forthwith.” This decision came on the heels of a lawsuit filed by the U.S. Chamber of Commerce and other business groups. They claimed that the rule runs against federal law and could disrupt numerous industries reliant on temporary and contract labor.

    Potential Implications Of The New Rule

    The implementation of the broader standard under the new rule has sparked concerns about its potential to significantly impact the franchise industry and disrupt business-to-business arrangements for outsourced labor. Critics of the rule caution that its expanded scope could potentially unsettle established business practices and lead to operational challenges for various industries.

    Previous Delays

    It’s important to note this delay isn’t the first for the NLRB’s joint employer rule. Initially slated to take effect on December 26, 2023, it was then rescheduled to February 26, 2024, following the Government Accountability Office’s determination that the original effective date violated the Congressional Review Act. In addition, the U.S. House of Representatives passed a proposal in January to overturn the rule, which is currently awaiting consideration by the Senate. President Joe Biden has made it clear that he will veto the resolution if it gains approval in both houses of Congress.

    Considerations For Business Owners

    With the potential enactment of the NLRB’s new joint employer rule pending, businesses must evaluate their contractual and operational landscapes. The pivotal question for businesses to think about is whether they anticipate the need to control another employer’s workers. Depending on their assessment, they may need to re-evaluate their contracts, policies, and practices to ensure alignment with the new rule or consider adjustments to sidestep a joint employer relationship.

    Leveraging HR Expertise And Compliance Support

    As we navigate this uncertain regulatory terrain, businesses might find reassurance in considering alternative solutions to address the potential impacts of the NLRB’s joint employer rule. Partnering with a professional employer organization (PEO) like GMS could offer a valuable advantage, providing access to HR expertise, compliance support, and tailored employment practices. By partnering with a PEO, businesses can strengthen their position in the face of regulatory changes, gain valuable insights, and ensure their workforce management strategies remain adaptable and compliant, regardless of the outcome of the NLRB’s joint employer rule. Contact our HR experts today to learn more.

  • As a small business owner, you wear many hats – manager, leader, and mentor. When faced with an employee who isn’t meeting expectations, it’s essential to handle the situation constructively. Enter the performance improvement plan (PIP) – a structured approach that benefits your business and employees.

    What Is A PIP?

    A PIP is a written document that outlines an employee’s performance gaps and provides a roadmap for improvement. Whether job-specific skills or soft skills such as leadership and professionalism, a PIP identifies where an employee falls short. Interestingly, PIPs aren’t just for underperforming employees; they can also guide high-performing individuals seeking career advancement.

    Why PIPs matter for small businesses

    1. Legal protection: PIPs protect your business from potential legal issues. By documenting performance concerns and providing clear expectations, you create a paper trail that safeguards your decisions.

    2. Productivity boost: Addressing underperformance promptly prevents productivity losses. A well-executed PIP can turn things around, benefiting the employee and the company.

    3. Positive company culture: PIPs reinforce a positive work environment. Employees appreciate knowing where they stand and receiving support when needed.

    4. Employee retention: Instead of resorting to termination, a PIP gives employees a chance to improve. Retaining talent is critical for small businesses.

    Creating An Effective PIP

    Crafting an effective PIP is a pivotal step for small business owners in fostering employee development, enhancing productivity, and maintaining organizational performance standards. To make it easy, we’ve created a step-by-step guide for you to follow to implement a PIP within your business:

    1. Assess the situation:

    • Determine if a PIP is appropriate for the specific employee
    • Consider the employee’s role, performance history, and potential for growth

    2. Develop a plan:

    • Collaborate with the employee’s supervisor to create a customized PIP
    • Specify areas for improvement, whether it’s technical skills, communication, or teamwork
    • Set clear expectations and realistic goals

    3. Meet with the employee:

    • Schedule a one-on-one meeting to discuss the PIP
    • Be empathetic and supportive – focus on improvement rather than blame
    • Involve HR if necessary

    4. Monitor progress:

    • Regularly check in with the employee
    • Provide constructive feedback and celebrate small wins
    • Adjust the plan if needed

    5. Evaluate results:

    • Assess progress within the specified timeframe (typically 30 to 120 days)
    • Determine if the employee has met the expectations outlined in the PIP
    • Decide on the following steps: continued improvement, termination, or other actions

    The Assistance Of A PEO

    PIPs are not punitive; they’re a lifeline for employees needing more support. Small business owners should embrace PIPs as a tool to foster growth, retain talent, and maintain a positive workplace. While we’ve provided you with the basics of creating a PIP, implementing it within your business is the next step. Fortunately, our HR experts at GMS are here to help; you don’t have to navigate this alone. Leveraging their expertise in performance management, employee development, and compliance, they assist you in crafting tailored PIPs and ensuring best practices. Ultimately, they’re here to drive performance improvement, foster employee success, and propel organizational growth. Contact us today to learn more.

  • In October 2023, Representatives Raja Krishnamoorthi, D-Illinois, and John James, R-Michigan, introduced the bipartisan Opportunity to Compete Act, a groundbreaking legislation designed to address the challenges faced by job seekers without bachelor’s degrees. The act aims to ensure fair consideration for these individuals in the hiring process, emphasizing skills-based evaluation over traditional educational qualifications.

    The Need For Change

    The current hiring landscape is heavily influenced by automated recruitment systems, which often utilize degree requirements as a primary filtering mechanism. A 2021 study revealed that over 90% of employers rely on such systems, with half using education level as a decisive filter. This approach inadvertently excludes a significant portion of the workforce, as approximately two-thirds of U.S. workers do not hold a bachelor’s degree.

    Addressing Bias And Promoting Diversity

    The Opportunity to Compete Act seeks to rectify this imbalance by mandating that large employers using automated degree requirement settings disclose the expected years of experience applicants need. In addition, it allows for the substitution of relevant work experience for a four-year degree. This shift in evaluation criteria would amend the Fair Labor Standards Act (FLSA) to eliminate bias against individuals who have acquired valuable skills through alternative routes such as military service, community college, or training programs.

    Advocacy And Support For The Act

    Industry experts and advocates have strongly supported the Opportunity to Compete Act, emphasizing its potential to foster diversity and inclusion while expanding access to job opportunities. Chief Executive Officer (CEO) of YUPRO Placement Michelle Sims highlighted the legislation’s role in diversifying the evaluation criteria during the initial stages of hiring, thereby promoting fairer consideration for all candidates.

    In addition, this bill emphasizes the significance of the millions of workers who have honed their skills through alternative educational paths such as community college, apprenticeships, and on-the-job experience. The act is positioned as a critical enabler for these individuals to showcase their capabilities and contribute meaningfully to the workforce.

    Empowering Alternative Educational Routes

    The proposed legislation acknowledges the value of alternative educational pathways, which provide accessible and affordable means for individuals outside traditional talent pools to develop skills relevant to various early and mid-career roles. By recognizing the value of these non-traditional routes, the act supports a more inclusive and equitable approach to evaluating job candidates.

    Hiring And Recruiting With A PEO

    Should this bill go into effect, small business owners will need to remain compliant. However, you didn’t start your business to stay on top of laws and regulations or spend countless hours hiring and recruiting top talent that will help your business grow. That’s why small and medium-sized companies turn to a professional employer organization (PEO) like GMS for help. A PEO provides comprehensive HR services to its clients, including payroll, benefits, compliance, and more. This partnership allows businesses to outsource the administrative and legal aspects of hiring and recruiting. In addition, at GMS, our HR experts can access a larger pool of qualified candidates, offer competitive compensation and benefits packages, and reduce your turnover and hiring costs. If you want to learn more about how GMS can help your business grow, contact us today. We’re here to help you and your business thrive.

  • Employee handbooks are not just an easy-to-access resource for your team but an essential component of your company’s infrastructure. They provide employees with a clear understanding of company policies, expectations, and culture, making it crucial to have a comprehensive and up-to-date handbook. However, the value of an employee handbook diminishes if it’s not regularly reviewed and updated.

    Leaving your handbook unattended on the shelf year after year without revisions can result in several negative outcomes, such as reinforcing outdated and potentially non-compliant laws and regulations. Employment laws, workplace safety standards, and industry regulations evolve. Failing to update your handbook accordingly can leave your business vulnerable to legal challenges, financial penalties, and damage to your business’ reputation.

    What Is An Employee Handbook?

    Employee handbooks are an excellent tool for business owners to share relevant information with employees. Separate from an employee agreement, which details salary, job title, job description, etc.; employee handbooks are an opportunity to provide easy-to-understand explanations of your policies and procedures, including company programs such as paid time off (PTO), sick leave, and more. While you should regularly share reminders with your team regarding specific policies and company programs, employee handbooks allow staff to review information whenever needed.

    Benefits Of Having An Employee Handbook

    Handbooks are a foundational tool for everyone on your team, from your newest hire to senior leadership and managers. They ensure everyone operates from the same set of standards, which is essential for creating a cohesive company culture. In addition, they help set expectations and provide clarification when challenging questions or situations arise.

    For new hires, employee handbooks are an excellent resource for learning about your company’s mission and values. Onboarding is an overwhelming time for new employees; providing them with a handbook can help them review important information later when they are more comfortable in their new position.

    Furthermore, a well-structured employee handbook can significantly enhance decision-making by providing a clear framework for managers and employees. This clarity reduces the time spent on deliberations and increases the efficiency of resolving issues, allowing for more focus on productive work and innovation.

    Why Update Your Handbook?

    As your business grows and develops, so should your employee handbook. As laws evolve and new technologies emerge, your internal policies must adapt accordingly. Since your handbook is a key reference point, outdated information could lead to unintentional non-compliance. It’s essential to inform your team about these updates and incorporate them into your handbook. This ensures that everyone is in sync with your policies and procedures.

    In addition, updating your handbook helps:

    • Adapt to organizational growth: As your business grows, it may become subject to new regulations. For example, exceeding 20+ full-time or full-time equivalent (FTE) employees will bring your business under the purview of the Age Discrimination in Employment Act (ADEA). It’s crucial to regularly review and revise your policies to ensure compliance with applicable laws as your business evolves.
    • Health and wellness: Policies must stay current to reflect the changing health landscape and societal needs. The COVID-19 pandemic highlighted the need for flexibility in policymaking, as companies had to introduce or revise policies concerning leave, remote work, and bereavement to accommodate unprecedented circumstances. Your handbook should be responsive and allow for quick policy changes when needed.
    • Align with the current company mission: As your business develops, your core mission and goals may shift. Ensuring your handbook is updated will help keep your managers and employees aligned with your mission. This alignment is essential not only for internal work but also for presenting a consistent message to your clients and stakeholders. 
    • Ensure fair treatment: An updated handbook ensures you have proper policies to address potential issues. This includes establishing clear protocols for dealing with harassment and outlining the steps to take when employees do not comply with established guidelines. Such measures are crucial for maintaining a workplace where every team member is subject to the same rules and expectations, which in turn help promote a culture of fairness and respect.
    • Hold your team accountable: A handbook can safeguard your business. Having a paper trail of your policies and their updates in your handbook shows that you communicated them to your team. It keeps your staff aligned with your goals, and should any situation escalate to the point of employee termination, this documentation provides solid justification for the action taken due to non-compliance.

    When And What To Update

    Most information in your employee handbook won’t need updating very frequently, but it’s good practice to review your handbook on at least a yearly basis. Delaying this review can result in a backlog of necessary changes, significantly extending the time required to update the handbook. Unless your organization is experiencing rapid growth or undergoing shifts in its mission and values, an annual review will be enough to keep your handbook current and relevant.

    During your review, be sure to examine the following:

    • Federal and local laws and regulations
    • Wage and hour policies
    • Staff training and processes
    • Leave and benefits
    • Employee conduct policies
    • Technology and systems policies

    Reviewing your employee handbook will take time and can be done internally; however, it’s essential that an HR professional checks it. If you don’t have a designated HR professional on staff, partnering with a professional employer organization (PEO) is one way to ensure you’re up to date with best practices and are compliant with legal regulations.

    HR Outsourcing With GMS

    As a business owner, you may discover that you no longer have the capacity to manage administrative tasks or keep up with the ins and outs of HR. That’s where we come in. PEOs like GMS can manage a range of responsibilities for your business. By outsourcing aspects such as payroll tax to employee benefits and more, we save you time and money while ensuring your business’ compliance with local and federal laws. We focus on administrative work so you can focus on what matters most in your business.

    Our HR professionals are ready to help make your business simpler, safer, and stronger. Contact us today!