Request a call Login

  • In an era where streaming services have become an integral part of our lives, there’s something captivating about having all your favorite shows and movies in one central location. Imagine having access to all the content you love, organized on one platform. It’s not just convenient; it’s also efficient. In the world of business, a similar revolution is happening through the professional employer organization (PEO) model. PEOs consolidate HR services, making them easily accessible to small business owners.

    Continue reading to explore the PEO model and how it operates as the Netflix of HR services, offering many benefits for small business owners.

    What Is A PEO?

    To understand the PEO model, we first need to grasp its core concept. A PEO provides comprehensive HR services to small and medium-sized businesses. These services include payroll management, employee benefits administration, compliance assistance, and more. Essentially, PEOs serve as a one-stop shop for all your HR needs.

    Much like your favorite streaming platform, a PEO offers a variety of “shows” (services) bundled together, ensuring you get access to all the essential HR functions without the hassle of dealing with multiple providers.

    Streamlining HR Operations

    When you subscribe to multiple streaming services, managing different subscriptions, logins, and content libraries can be overwhelming. The same applies to small business owners managing various HR functions. By partnering with a PEO, you can streamline your HR operations in a similar way. PEOs consolidate payroll, benefits administration, employee onboarding, and more into one unified platform. This simplifies the HR process, reducing administrative complexities and improving efficiency.

    Cost-Efficiency

    One of the most compelling aspects of streaming services is the cost-efficiency. However, as more streaming services have launched, you spend more time and money watching different shows on different platforms. Wouldn’t it be more efficient and cost-effective if you could consolidate all your streaming platforms into one?

    Similarly, small businesses that partner with a PEO can experience significant cost savings. PEOs leverage their buying power to negotiate better rates for employee benefits and workers’ compensation. This means that small business owners can provide competitive benefits to their employees at a more affordable cost. It’s like getting premium content at a discounted rate, making your business more attractive to top talent.

    Expertise And Compliance

    Streaming services offer curated content, ensuring that subscribers get the best entertainment options without the hassle of searching. Similarly, PEOs are experts in HR services, guaranteeing that your business complies with the ever-evolving labor laws and regulations.

    PEOs keep you up-to-date with the latest HR trends, best practices, and legal requirements, which can be a complex task when managing HR in-house. This expertise minimizes the risk of costly mistakes, providing peace of mind for business owners.

    Scalability

    Streaming platforms adapt to your needs. If you need more screens or higher resolution, you can easily upgrade your subscription. The PEO model is just as scalable. As your business grows, a PEO can seamlessly adjust its services to accommodate your changing HR needs. Perhaps when you first partnered with a PEO, you only had one employee, so offering benefits wasn’t a top priority. Now, you’ve gained 30 employees, and suddenly, offering benefits is essential to attracting and retaining top talent. We can now provide you with various benefits packages.

    Whether you’re hiring more employees or expanding to new locations, a PEO can scale its services accordingly, ensuring that your HR remains efficient and compliant. It’s like upgrading to a premium subscription on your favorite streaming service, with added benefits and convenience.

    Look No Further

    Much like the joy of having all your favorite content in one place, the PEO model offers a consolidated, efficient, and cost-effective solution for managing HR services. Small business owners can benefit from streamlining their HR operations, cost savings, expert guidance, and scalability, all while ensuring compliance with employment laws.

    Partnering with a PEO like GMS simplifies your business, enhances efficiency, and delivers an exceptional HR experience. So, why juggle multiple HR providers when you can have it all in one place? Make your business HR-efficient and watch it grow with the power of a PEO. We’re one click away – contact us today to learn how we can be your one-stop solution.

  • Employee retention is a critical factor in the success of any organization. It not only reduces recruitment costs but also boosts productivity and employee morale. Human resources (HR) is pivotal in crafting and implementing employee retention strategies. In this blog, we’ll explore how HR can give your company’s employee retention strategy a significant boost and then discuss how partnering with a professional employer organization (PEO) can be a game-changer for small business owners.

    The Role Of HR In Employee Retention

    1. Talent acquisition and onboarding: HR professionals are responsible for attracting top talent and ensuring a smooth onboarding process. By finding the right people for your organization and making their transition as seamless as possible, HR sets the stage for a positive employee experience from day one.
    2. Creating a positive work environment: HR plays a crucial role in establishing a healthy work culture and fostering a positive environment. They can implement initiatives such as wellness programs, diversity and inclusion efforts, and employee engagement activities, which enhance job satisfaction and retention.
    3. Career development and training: HR can work with employees to identify their career goals and provide training opportunities. Investing in employee growth and development not only improves their skillset but also shows your commitment to their success, making them more likely to stay with the company.
    4. Communication and conflict resolution: HR is the mediator between employees and management, ensuring that concerns and grievances are addressed promptly. Effective communication and conflict resolution can prevent workplace issues from escalating and potentially leading to resignations.
    5. Performance management: HR professionals set clear performance expectations and conduct regular evaluations. This keeps employees informed about their progress and provides opportunities for improvement, reducing dissatisfaction that might lead to turnover.

    How HR Boosts Employee Retention

    Now that we’ve established the importance of HR in employee retention, let’s get into how HR practices can make a difference in this area:

    1. Employee engagement: HR can gauge employee satisfaction through surveys, feedback sessions, and one-on-one meetings. By identifying and addressing concerns early, they can proactively prevent turnover.
    2. Succession planning: HR can create a roadmap for employee growth within the organization, ensuring that employees see a future for themselves and are less likely to leave in search of new opportunities.
    3. Work-life balance: HR can implement flexible work arrangements, promote mental health programs, and provide support for work-life balance, which all contribute to employee satisfaction and retention.
    4. Compensation and benefits: HR can develop competitive compensation packages and benefits programs that attract and retain top talent. This includes health insurance, retirement plans, and performance-based incentives.
    5. Recognition and rewards: HR can establish recognition programs to acknowledge employee achievements, boosting morale and loyalty.

    How A PEO Can Help Small Business Owners

    Small business owners often face unique challenges when it comes to HR and employee retention. This is where a PEO can be a game-changer. A PEO is a co-employment arrangement that allows small businesses to outsource their HR functions. Here’s how it can help:

    1. Expertise: PEOs have experienced HR professionals who can provide expert guidance and support on employee retention strategies tailored to your business’s unique needs.
    2. Cost-efficiency: PEOs can often provide access to comprehensive benefits packages at a lower cost due to economies of scale, making it easier for small businesses to compete with larger companies.
    3. Compliance: PEOs can help small businesses navigate the complex landscape of employment laws and regulations, reducing the risk of non-compliance and associated penalties.
    4. Time savings: Outsourcing HR tasks to a PEO frees up your time and resources to focus on growing your business rather than handling administrative HR functions.

    Work Smarter, Not Harder

    HR is a cornerstone in enhancing employee retention, and a dedicated HR department or professional can help your company craft and implement strategies that foster a culture of engagement, growth, and satisfaction. For small business owners, partnering with a PEO like GMS can be a smart move to access expert HR support, ensure compliance, and compete with larger companies in the race to retain top talent. By combining the power of HR practices and the support of a PEO, you can supercharge your employee retention strategy and achieve long-term business success. Work smarter, not harder, and contact us today.

  • As of January 1st, 2024, California will be ushering in a new era of employee rights and benefits. Thanks to Senate Bill 616, a groundbreaking piece of legislation passed in 2023, significant changes are coming to the state’s paid sick leave (PSL) policies. These changes represent a huge win for employees across California, as they mark a significant increase in PSL entitlements, accrual caps, and front-loading options. Continue reading to learn more about this law and what it means for California business owners and employees.

    Increased PSL Entitlement

    The most notable change that employees will enjoy under the revised law is an increase in PSL entitlement. Previously, employees were entitled to 24 hours or three days of paid sick leave per year. With the new law taking effect, this entitlement will jump to a more substantial 40 hours or five days of paid sick leave per year. This adjustment ensures that employees have more time to take care of their health and well-being without worrying about lost income.

    Accrual Cap And Front Loading

    In addition, the new law introduces changes to the accrual cap and front-loading options. In the past, employees could accrue up to 48 hours or six days of PSL per year. This cap will now be raised to 80 hours or 10 days per year. This means that employees will be more flexible in managing their paid sick leave and can accumulate more time for unforeseen health issues.

    Front-loading is another exciting aspect of this law. Front-loading means employers give employees their paid sick leave hours in one lump sum at the beginning of the year. If employers choose to front-load PSL for their employees, the law mandates specific timelines for doing so. By the 120th calendar day of employment, employees must receive no less than 24 hours of PSL. By the 200th calendar day, they should have a total of 40 hours of PSL. This feature ensures that employees can access their PSL benefits early in their employment, offering peace of mind from the very beginning.

    Rate Of Accrual

    The rate of PSL accrual remains unchanged, with employees earning one hour of PSL for every 30 hours worked. This fair system ensures that employees accrue their benefits gradually over time, aligning with their actual working hours.

    Local PSL Laws Preemption

    Another significant aspect of the new law is the prohibition of local PSL laws from regulating certain issues related to PSL. This means that state law will take precedence over any local regulations, creating a more uniform system across the entire state. While local laws were once a patchwork of rules and regulations, this new provision will streamline PSL policies and make it easier for employees and employers to understand their rights and obligations.

    Navigating The Changing Landscape

    With these significant changes in California’s paid sick leave laws, business owners might wonder how they can best navigate the evolving landscape while ensuring compliance and providing the best benefits to their employees. If you’re a business owner in California wondering this, we’re here to share the benefits of partnering with a professional employer organization (PEO) like GMS. GMS’ HR experts assist with HR management, employee benefits, and navigating the intricate maze of labor law compliance. We guide business owners to streamline their operations, stay ahead of evolving regulations, and foster an empowering work environment.

    Partnering with GMS amidst this complex landscape of California equips business owners to seamlessly transition into the new PSL era. This ensures not only compliance with laws and regulations but also the ability to allure and retain top-tier talent in the competitive job market. Interested in learning more? Contact our HR experts today.

  • Recruiting top talent is crucial for the success and growth of any business, but it’s especially vital for small business owners. For small business owners, the stakes are high, and every decision can make or break the future of your business. And when it comes to securing the right talent, there’s simply no room for error.

    Unfortunately, many small business owners make critical recruiting mistakes that can hinder their ability to attract and retain the best employees. However, we’re here to provide insights on the top recruiting mistakes that small business owners should avoid and how to steer clear of them.

    Lacking A Clear Job Description

    One common recruiting mistake is not having a well-defined job description. Without a clear understanding of what the job entails, you’ll have trouble finding the right candidate. To avoid these mistakes, create detailed job descriptions that include responsibilities, qualifications, and expectations. This will attract candidates who genuinely understand and are interested in the role.

    Rushing The Hiring Process

    Oftentimes, small business owners face pressure to fill a position quickly. However, rushing the hiring process can lead to poor choices and costly turnovers. Take your time to vet candidates properly, conduct interviews, and assess their fit with your company culture. A thorough process will pay off in the long run.

    Ignoring Cultural Fit

    Your company culture plays a vital role in employee satisfaction and retention. Ignoring cultural fit can lead to a disconnection between employees and the business. Ensure that you assess candidates not only for their skills but also for their alignment with your company’s values and culture.

    Neglecting A Diverse Workforce

    Diversity in the workplace brings different perspectives, ideas, and problem-solving approaches, which can benefit your business immensely. Failing to prioritize diversity in your recruitment efforts can limit your company’s growth and innovation potential. Make it a point to create a diverse talent pool and cultivate an inclusive workplace.

    Underestimating The Importance Of Onboarding

    Recruiting doesn’t end once you’ve hired someone. Effective onboarding is essential to help new employees acclimate to their roles and the company. Neglecting this phase can result in disengagement and a lack of job satisfaction. It’s essential to create a structured onboarding process to ensure a smooth transition for new hires.

    Not Leveraging Technology

    In today’s digital age, small businesses that avoid leveraging recruitment technology are missing out on valuable tools for streamlining the hiring process. Applicant tracking systems (ATS), job boards, and video interviews can make your recruiting efforts more efficient and effective.

    Neglecting Employer Branding

    Your employer brand is what sets you apart from the competition and can influence a candidate’s decision to work for your company. Failing to build a strong employer brand can limit your ability to attract top talent. Showcase your company’s unique qualities, values, and success stories to make your business an attractive option for potential hires.

    Overlooking References And Background Checks

    Failing to check references and conduct background checks can lead to hiring individuals who may not be a good fit for your organization. Don’t skip this crucial step, as it provides valuable insights into a candidate’s history and character.

    Look No Further, GMS Is Here To Help

    Being a small business owner comes with many challenges; however, a professional employer organization (PEO) can help you navigate these challenges, especially with recruiting. You didn’t start your business to specialize in recruiting, but with a PEO like GMS, and its comprehensive suite of HR services, you can avoid the recruitment mistakes discussed in this blog.

    GMS’ HR Account Managers specialize in crafting well-defined job descriptions, ensuring you attract candidates who genuinely fit the role. They excel in creating efficient and streamlined hiring processes, saving you valuable time and resources while finding you top talent. At the end of the day, PEOs understand the importance of cultural fit and can guide you in aligning candidates with your company’s values and culture. When it comes to onboarding, GMS offers structured, effective processes to ensure new employees seamlessly transition into their roles, thereby reducing the risk of disengagement or early turnover.

    By partnering with GMS, you’re not only avoiding common recruiting pitfalls but also ensuring that you secure the best talent for your small business while freeing up your time and resources to focus on what you do best. Invest in your business’s future, embrace the assistance of a PEO, and watch as your small business flourishes and achieves the remarkable success you’ve envisioned. Contact us today to learn more.

  • In the world of employment verification, staying up-to-date with the latest regulations is crucial for employers and employees. Effective November 1st, 2023, significant changes have been made to Form I-9, Employment Eligibility Verification. These changes impact how employers verify the eligibility of their employees to work in the United States. If you’re a business owner, continue reading to closely examine the revisions made to Form I-9 and the implications for employers.

    The August 1st, 2023, version of Form I-9 brings a range of revisions designed to enhance its usability, accessibility, and compliance. The following are notable changes:

    1. Tablet and mobile compatibility: Form I-9 has been redesigned to be fillable on tablets and mobile devices, making it easier for employers and employees to complete the form electronically. 

    2. Remote verification option: A significant change is the addition of a checkbox that allows certain employers to indicate they have examined Form I-9 documentation remotely. This alternative procedure aligns with the U.S. Department of Homeland Security’s new guidelines. It provides an option for remote examination rather than physical examination of documentation. This change is especially significant in light of the shift towards more flexible and remote work arrangements.

    3. Redesigned Lists of Acceptable Documents page: The Lists of Acceptable Documents page has been updated for clarity and ease of use. This section guides employers and employees on which documents are acceptable for establishing identity and employment authorization.

    4. Updated notice to avoid discrimination: Form I-9 now includes an updated notice that provides guidance on preventing discrimination in the Form I-9 process. Ensuring the employment eligibility verification process is free from bias and discrimination is critical.

    5. Reduced instruction pages: The instructions accompanying the Form I-9 have been streamlined. Previously, there were 15 pages of instructions; now, there are only eight. This reduction aims to make the instructions more concise and user-friendly, helping employers and employees navigate the process more efficiently.

    New Edition Date

    The key change to Form I-9 is its edition date. Employers are now required to use the most current version of the form, dated August 1st, 2023. The previous edition, dated October 21st, 2019, will be valid until October 31st, 2023. From November 1st onwards, it’s essential for employers to switch to the updated form to ensure compliance with the latest regulations.

    Forms For Existing Employees

    The good news for employers is that they do not need to complete a new Form I-9 for current employees with a properly completed Form I-9. Unless re-verification is required for an employee after October 31st, refiling the updated form for existing workers is unnecessary.

    Consider Utilizing A PEO

    Navigating the employment verification and compliance landscape, many businesses are turning to professional employer organizations (PEOs) for expert assistance. PEOs like GMS are well-versed in the intricacies of Form I-9 and a broader realm of HR compliance. By partnering with a PEO, businesses can ensure that they seamlessly implement these changes, stay compliant with regulations, and reduce the administrative burdens associated with managing the workforce. Whether it’s adopting the latest edition of Form I-9, incorporating remote verification processes, or providing comprehensive guidance to employees, a PEO offers the expertise and support that can make a crucial difference in helping businesses thrive in an environment where compliance is paramount. When navigating these complexities, a PEO can be the trusted partner that empowers businesses to focus on what they do best while staying on the right side of the law. Contact us today to learn more.

  • In a refreshing turn of events, the U.S. Citizenship and Immigration Services (USCIS) is shaking up the H-1B visa program by releasing a published notice of proposed rulemaking. This change aims to streamline processes, protect against fraud, and bring a new approach to lottery selection. Continue reading to explore this exciting transformation with a simplified look at what’s on the horizon.

    Understanding H-1B Visa Program

    The H-1B visa program, a cornerstone of America’s immigration policy, is essential for bringing highly skilled foreign professionals to the United States. Designed to attract top talent worldwide, this program allows employers to hire individuals with specialized skills, particularly in fields such as technology, engineering, and science, where a shortage of qualified domestic workers exists. The H-1B program not only bolsters American innovation and competitiveness but also fosters diversity as it allows individuals to contribute their expertise and unique perspectives to the nation’s dynamic and multicultural workforce.

    Efficiency And Improvement

    The Secretary of Homeland Security is championing these regulations, emphasizing the need to attract global talent, ease the burden on employers, and tackle fraud and abuse in the immigration system. These changes are set to make life easier for employers and workers.

    A New Twist In Lottery Selection

    One of the most significant changes is how the USCIS conducts the H-1B registration selection process. The more registrations submitted for a single individual, the higher their chances of being selected in the lottery. However, with the proposed changes, every unique individual only gets entry into the selection process, regardless of how many registrations are submitted for them. This is a game-changer, preventing abuse and increasing the odds of legitimate candidates being selected.

    Educational Criteria Redefined

    The proposed rules also redefine the educational criteria for H-1B status. While a position can accept a range of degrees, there must be a clear link between the degree fields and job duties. A general degree will no longer suffice. This opens doors for “skills-first hiring,” allowing employers to consider skills as a vital factor in the hiring process.

    Location Matters

    Changes in an H-1B worker’s place of employment will be addressed more clearly. Any change requiring a new labor condition application will be considered a material change, necessitating the filing of an amended or new position. This is to ensure transparency and accountability.

    Third-Party Roles

    When an H-1B worker is assigned to a third party, the focus will shift to the actual work they’ll be performing for that third party. It’s a move to ensure that H-1B status is genuinely warranted in such cases.

    Extended Protection For F-1 Students

    F-1 students transitioning to H-1B status will have an extended grace period of up to six months for status and employment authorization. The F-1 visa allows a student to temporarily live in the United States for a defined period of time while studying at a school, college, seminary, or conservatory. This extension will help them avoid gaps in their status and work authorization while awaiting their change to H-1B status.

    Codifying Key Practices

    The USCIS is also looking to codify some of its long-standing practices. This includes requestion contracts and other proof of a bona fide job offer for each H-1B beneficiary. The itinerary requirement for an H-1B petition is on the way out.

    Deference Policy

    In addition, a clarification has been made regarding the deference policy. It states that if there have been no significant changes in the underlying facts, adjudicators should generally defer to a prior determination. This change eliminates the need for unnecessary scrutiny and requests for evidence.

    Site Visits

    USCIS is reinforcing the importance of site visits to maintain the integrity of the H-1B program and to deter fraud and noncompliance. Organizations that fail to cooperate during these visits may face denial or revocation of their petitions. Site visits can encompass on-site inspections, interviews, record reviews, and more.

    Navigating These New Horizons

    In this era of change for the H-1B visa program, the path ahead seems promising for employers and foreign workers. As these transformative regulations take shape, it’s crucial for businesses, especially small enterprises, to adapt and navigate these new horizons seamlessly. This is where a professional employer organization (PEO) comes in to help small business owners. PEOs like Group Management Services (GMS) provide support in navigating complex immigration and employment regulations, ensuring compliance, and managing HR functions effectively. So, as we anticipate a brighter and more efficient future for the H-1B program, remember that PEOs can help you along this journey, allowing you to thrive and remain compliant. Get a quote from us today!

  • In the wake of the COVID-19 pandemic, the world witnessed a significant change in how we work. The traditional office setting has transformed into a dynamic landscape where the old rules no longer apply. Employers, employees, and even Chief Executive Officers (CEOs) are all reevaluating the concept of work in this new era. Let’s take a closer look.

    Adapting To The New Normal

    The pandemic thrust us into a realm of remote work, causing many companies to wave goodbye to their traditional office spaces. However, not everyone is ready to embrace this new way of work entirely. According to the Pew Research Center, around 35% of remote-capable workers now find themselves working from home full-time. Another 41% are adopting a hybrid work model. Yet, as COVID-19 is gradually tamed, employers are trying to bring back in-office work.

    Companies such as Zoom and Meta have demanded their employees return to the office for at least a few days each week. Furthermore, a survey by KPMG’s complete return to in-office work by 2026, with a mere 7% advocating for continued remote work. These trends don’t just exist in the technology industry. Companies across the U.S. are rolling up their sleeves and working on strategies to entice employees back to the office.

    Reinventing The Office Experience

    In a world where 90% of office workers are hesitant to say goodbye to remote work, employers are taking cautious steps to change. Many companies embrace remote work but urge in-person presence for essential gatherings, meetings, and collaborative projects. It’s about being physically present when individuals are actively engaging with one another, not merely glued to their screens.

    The Productivity Dilemma

    Business owners have stated that the remote work experiment during the pandemic was far from ideal. Employee morale took a hit as work-life balance became a juggling act. Being in the office fosters camaraderie, offers management support, and equips employees with the essential technology to excel. In addition, it provides real-time collaboration, problem-solving, and faster onboarding, which are crucial in the competitive landscape in which they operate in.

    Commuting Challenge

    The thought of resuming daily commutes isn’t enticing for everyone. To address this, companies such as ABF Group in Silicon Valley offer commuting stipends to ease the transition. The CEO of ABF group acknowledges that technology enables remote work but also emphasizes the value of face-to-face interactions for brainstorming, collaboration, and team building.

    Building Connections

    One of the most significant aspects of in-person work is the opportunity to build relationships with colleagues. In-person work allows for a shared lunch break or a friendly stroll, creating bonds that are hard to replicate in a virtual setting. Companies are curating in-office experiences that cater to relationship-building, proving that work can be productive and fun.

    Balancing Act

    In this rapidly evolving landscape, companies are not imposing a one-size-fits-all approach. Instead, they’re partnering with their employees to discover the best way forward. For business owners, it’s essential to dive into what motivates their teams, emphasizing the importance of employee feedback in shaping the future of work.

    The Support Of A PEO

    As we balance remote and in-person work, the path forward may be less about rigid demands and more about collaboration, innovation, and adaptability. As businesses embrace this landscape, they often need expert guidance to navigate this intricate journey. This is where a professional employer organization (PEO) comes in. A PEO like GMS offers the support and strategies necessary to rekindle the aspect of in-person work while also catering to the evolving needs of employees. With the help of GMS, businesses can craft a tailored approach to the new world of work, ensuring that their return to the office is seamless and rewarding. So, whether you’re enticing your team back into the office by offering incentives or enhancing their work-life balance with remote work options, remember that the future is flexible. With the right partners, your business can thrive in this evolving era of work. Contact us today to learn more.

  • To ensure fair compensation for tipped employees, the Chicago City Council passed the “One Fair Wage” ordinance on October 6th, 2023. This legislation, which aims to eliminate the subminimum wage for tipped workers in Chicago by July 1st, 2028, will fundamentally reshape the compensation landscape for thousands of individuals employed in service-oriented industries. The ordinance, which commences its phased implementation on July 1st, 2024, is poised to challenge the long-standing practice of tipping and the structure of the city’s restaurant industry. Continue reading to explore the intricacies of this significant policy shift and the various perspectives surrounding it.

    Understanding The Subminimum Wage

    At this time, employers of tipped workers in Chicago can apply for a credit against the standard minimum wage rate. This credit, commonly known as the “tip credit,” allows employers to pay a lower hourly wage to tipped workers if their tips, combined with their direct pay, bring their earnings up to the city’s minimum wage. For employers with at least 21 employees, the subminimum wage for tipped employees is $9.48 per hour, constituting a 40% credit against the standard minimum wage of $15.80 per hour. Smaller employers with more than three but fewer than 21 employees pay a subminimum wage of $9.00 per hour, a 40% credit against the standard minimum wage of $15.00 per hour.

    The Phased Approach

    With the passing of the “One Fair Wage” ordinance, the tip credit is set to be reduced in stages:

    1. 40% of the applicable minimum wage rate until July 1st, 2024
    2. 32% of the applicable minimum wage rate on and after July 1st, 2024
    3. 24% of the applicable minimum wage rate on and after July 1st, 2025
    4. 16% of the applicable minimum wage rate on and after July 1st, 2026
    5. 8% of the applicable minimum wage rate on and after July 1st, 2027, until and including June 30th, 2028

    By July 1st, 2028, employers will no longer be able to take a tip credit of any amount, and the standard minimum wage will apply to all employees in customarily tipped occupations. Tipped employees, however, will still be entitled to earn and retain their tips.

    Challenges For Restaurant Employers

    The “One Fair Wage” ordinance represents a significant challenge for restaurant employers, especially in Chicago’s vibrant dining scene. Initially introduced with a two-year phaseout period, the substitute measure passed on October 6th provides additional time for the city’s hospitality industry to adapt to the impending changes. The Illinois Restaurant Association has voiced concerns, warning that eliminating the subminimum wage will fundamentally alter the business model of every restaurant in the city.

    Proponents of the ordinance cite data from other regions that have already eliminated the tip credit, suggesting that service workers’ take-home pay increases and staff turnover decreases. However, critics point out that the reality may be more nuanced. For instance, the Illinois Restaurant Association notes that a median tipped worker in a full-service restaurant in the state already makes $28.48 per hour. In cities that have abolished the tipped minimum wage, the average tip percentages tend to be lower, which can result in reduced take-home pay for servers. For example, San Francisco, California, saw an increase in restaurant closures after eliminating the tipped minimum wage.

    Potential Responses And A Growing Trend

    As Chicago restaurants face this transformative change, they may adopt automatic service charges to offset the financial impact, a practice already prevalent in Washington, D.C., after the tip credit was eliminated there. Some may consider eliminating servers altogether, shifting to a self-serve or counter model, or relocating to nearby municipalities outside the city.

    This initiative in Chicago is part of a broader trend to eliminate the tip credit, which has been gaining momentum in recent years. Although federal legislation to eliminate the subminimum hourly wage for tipped workers failed in the 2021-22 session, more than a dozen states have legislation pending to abolish the tip credit, and several states already prohibit the subminimum wage. The District of Columbia and Portland, Maine, have also ventured into this territory, with contrasting outcomes.

    A Helping Hand In Adapting

    The “One Fair Wage” ordinance in Chicago is poised to reshape the compensation landscape for tipped employees, prompting a robust debate about its potential impact on the service industry. While the industry grapples with the changes ahead, another facet to consider is how businesses can navigate these transformations effectively. Professional employer organizations (PEOs) like GMS are a valuable resource for companies in Chicago, helping them adapt to evolving employment laws, including those related to minimum wages and tipping practices. GMS offers comprehensive HR solutions, allowing business owners to focus on their core operations while ensuring compliance with changing labor regulations. With the phased elimination of the tip credit on the horizon, GMS can be a strategic partner for businesses, helping them navigate these changes while maintaining the highest employment standards and fair compensation for their employees. As the “One Fair Wage” initiative unfolds, businesses in Chicago must stay agile and informed, and PEOs can be an ally in this process. Interested in learning more? Contact us today.

  • In an effort to promote fairness and transparency in the workplace, the Colorado Department of Labor and Employment is taking significant steps by using proposed Equal Pay Transparency (EPT) Rules. These rules aim to provide clarity regarding Colorado’s Ensure Equal Pay Act for Equal Work Act, which becomes effective on January 1st, 2024. The Act, which amended the state’s pay transparency statute, brings much-needed attention to the issue of pay equity and gender discrimination in the workplace. Continue reading to learn more about the proposed rules and how they seek to bring clarity to the Act’s ambiguities.

    Career Development: A Step Forward

    One of the key areas addressed in the proposed rules is the definition of “career development.” Under the Act, employers are required to announce job opportunities, but this obligation does not extend to “career developments.” The Act defines career development as changes to an employee’s terms of compensation, benefits, full or part-time status, duties, or access to further advancement to update the employee’s job title or compensation. The proposed rules clarify that these changes should be related to the employee’s existing job and should not be within a position with a current or anticipated vacancy. This clarification ensures that employees are informed about potential advancements within their current roles.

    Career Progression: Setting The Right Path

    Career progressions are exempted from the definition of “job opportunity” and are described as regular or automatic movements from one position to another based on time or objective metrics. The proposed rules require employers to disclose and make available to all “eligible employees” the requirements for career progression and the terms of compensation, benefits, and other details of the new position. “Eligible employees” are those who, upon meeting the notice’s requirements, would move from their position to the other as a “career progression.” This ensures employees are informed about their potential advancement paths, fostering transparency and equality.

    Application Deadlines: Navigating The Gray Areas

    The Act mandates that job postings include an application deadline, which led to confusion surrounding evergreen job postings and extensions of application deadlines. The proposed rules provide two exceptions to the deadline requirement. If an employer accepts applications on an ongoing basis, the application must state this, and a deadline does not need to be included. In addition, an application deadline may be extended, provided the original deadline was made in good faith, and the posting is updated promptly. These exceptions offer practical solutions and flexibility to employers while ensuring transparency and fairness in the hiring process.

    AINT Hires: Balancing Flexibility And Transparency

    In the proposed rules, Acting, Interim, or Temporary (AINT) hires are considered when no immediate job opportunity posting is required for up to nine months. This applies when the hiring is not expected to be permanent. In such cases, a job opportunity posting must be made in time for employees to apply for the permanent position if the AINT hire becomes permanent. The proposed rules extended the duration of an AINT role from six to nine months, offering a balanced approach that allows employers to respond to immediate needs while ensuring employee transparency.

    Post-Selection Notice To Employees: Defining Regular Work Relationships

    The Act stipulated that employers must distribute post-selection notices to employees with whom the selected candidate will regularly work. The proposed rules clarify this by defining “work with regularly” as employees who either collaborate or communicate about their work at least monthly or have a reporting relationship. Employers are encouraged to provide notices to a broader range of employees or multiple selections at once as long as they do so within 30 days after any selection. These modifications simplify the process, making it more manageable for employers while ensuring that the right employees receive the necessary information.

    Geographic Boundaries

    The proposed rules outline a pragmatic approach by exempting employees outside of Colorado from notice requirements related to pre-selection, post-selection, and career progression. This adjustment streamlines the process for businesses with a multi-state presence, offering a more efficient way to manage compliance efforts and ensuring the rules have the desired impact where they are most relevant.

    The Importance Of Outsourcing

    As a small business owner in Colorado, you face the challenge of adapting to the new Equal Pay Transparency rules while maintaining growth and competitiveness. However, outsourcing these efforts to a professional employer organization (PEO) like GMS might be the solution you’re looking for. PEOs specialize in HR management, compliance, and employment regulations, offering expertise to ensure businesses comply with these new rules.

    By partnering with GMS, small businesses can access a range of HR services, from job posting compliance to transparent compensation and career development strategies. This partnership not only facilitates compliance but also frees up business owners to focus on growing their ventures. In a changing regulatory environment, the assistance of a PEO has become a vital asset for small businesses seeking to uphold the principles of equal pay transparency while pursuing their business growth objectives. Contact our HR experts today to learn more.

  • The Israel-Palestine conflict is an ongoing tragedy that has impacted not only the lives of those directly involved but also resonates across the globe. The events that unfolded, marked by Hamas’ devastating attack on Israel, opened the door to escalated violence in the region and a formal declaration of war.

    War brings a range of distressing emotions. Employees within your organization may be grappling with concerns related to their safety. In addition, there are concerns about the broader global implications of this violence and how it may further escalate. As an employer, recognizing and addressing these concerns is critical. In the workplace, this translates into the responsibility of business owners to ensure their employees feel heard, valued, and supported. Just as we long for peace and stability on a global scale, creating a safe and nurturing environment within our organizations is essential. In the face of adversity, this commitment not only fosters employee well-being but also strengthens the resilience of our teams and the overall fabric of our organizations.

    Continue reading to explore various ways employers can support their staff and foster a safe work environment during these challenging times.

    Open And Honest Communication

    Clear and transparent communication is the foundation of trust. Employers should openly acknowledge the global situation, express concern for their employees, and provide a channel for discussion. Encourage employees to share their thoughts and concerns and actively listen to their perspectives.

    Offer Mental Health Support

    Conflict and geopolitical tensions can take a toll on employees’ mental well-being. Employers can provide access to mental health resources, such as counseling services, employee assistance programs (EAPs), or wellness initiatives. Normalizing discussions about mental health can reduce stigma and promote a culture of support.

    Additional crisis resources include:

    1. The Disaster Distress Helpline
    2. The Veterans Crisis Line

    Flexible Work Arrangements

    During crises like the Israel-Palestine conflict, employees may face personal challenges requiring flexible work schedules. Employers should consider allowing flexible work arrangements, such as remote work, adjusted hours, or paid time off (PTO), to accommodate employees’ needs.

    Promote Inclusivity

    Diversity and inclusion efforts should be reinforced during difficult times. Encourage open dialogues that respect different viewpoints and backgrounds. It’s essential that all employees feel valued and included, regardless of their personal affiliations or beliefs.

    Charitable Initiatives

    Many employees may wish to contribute to charitable efforts related to this conflict. Employers should consider facilitating this by organizing fundraisers or donation drives. Matching employee donations to relevant charities can also encourage philanthropy.

    To help victims of the Israel-Hamas War, click here.

    Educational Opportunities

    In times of geopolitical tension, promoting compassion and empathy is crucial. Employers can offer educational resources on the Israel-Palestine conflict, its historical context, and the perspectives of both sides. Encourage employees to engage in respectful discussions and debates that promote empathy and tolerance.

    A variety of resources can be found here.

    Conflict Resolution Training

    Conflicts can arise in any workplace, and global conflicts can worsen tensions. Employers can invest in conflict resolution training to equip employees with the skills needed to navigate difficult conversations constructively and peacefully.

    Public Support Statements

    Employers can choose to take a public stance on global issues, such as the Israel-Palestine conflict. If doing so, ensure that all statements are well-informed, respectful, and aligned with the company’s values. Be prepared for diverse reactions and encourage a respectful dialogue within the organization.

    Business Continuity Planning

    Prepare for potential disruptions in your business operations due to external events by creating a business continuity plan (BCP). A BCP is a document that outlines how a business will continue operating during an unplanned disruption in service. It’s essential to have a solid BCP that accounts for crises and ensures the well-being of employees, whether through remote work arrangements or other means.

    Support Employee Well-Being

    Demonstrate your commitment to employee well-being by providing access to wellness programs, stress-relief resources, and fitness initiatives. A healthy workforce is more resilient in the face of external stressors. Consider the following:

    • Schedule regular catchups with your team members
    • Maintain a tidy work environment 
    • Encourage employees to walk around more and step away from their work when applicable 
    • Create quiet time 
    • Provide onsite or distance counseling 
    • Be flexible

    Continued Support From Employers

    With the Israel-Hamas conflict affecting individuals worldwide, employers find themselves in a unique position to offer support to their employees. It’s imperative to recognize that resources and initiatives emphasizing mental well-being, open dialogue, and educational opportunities can be pivotal in fostering a compassionate and resilient workplace. As a professional employer organization (PEO), GMS stands as a resource providing a wide range of support from EAPs and educational opportunities with our learning management system (LMS) to promoting inclusivity. In times of uncertainty, unity and empathy become our guiding lights. For more information on how we can support your business, contact us today.