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  • As a leader, you have to make many decisions that steer your business toward your strategic goals. However, inspiring your staff to align with your vision and perform accordingly, especially during high-pressure or stressful moments, can be challenging. While a motivational speech during an all-staff meeting can provide some inspiration, the true key to success lies in a deeper examination of your organizational culture.

    Organizational culture is not just a concept; it’s embodied by every member of your staff and guided by leadership. Though it may seem difficult to assess, several indicators, such as attrition and engagement rates, will help determine whether your work culture is positive or negative.

    What Is Organizational Culture?

    Organizational culture is the “personality” of your organization. It’s the shared set of values, beliefs, attitudes, customs, and behaviors that characterize how individuals within your organization interact with each other, as well as how they interact with external stakeholders such as customers, suppliers, and the community.

    Organizational culture heavily impacts the success of your business. Companies with positive cultures report a 72% higher employee engagement rate than companies with dysfunctional or negative cultures. A poor culture can lead to staffing, morale, and employee satisfaction issues, which can bleed over into productivity issues, impacting your bottom line.

    The good news is that organizational culture is not static; it can evolve and change over time due to various factors, including leadership changes, market condition shifts, mergers and acquisitions, and deliberate efforts to change the culture. Having a poor organizational culture doesn’t mean your business is doomed. There are tools you can implement that can make significant shifts throughout your business. The key is to remain vigilant.

    Why Does Organizational Culture Matter?

    Positive cultures exhibit greater resilience, reduced burnout, and lower attrition rates, leading organizations to prioritize culture and, therefore, consistently outperforming their counterparts. Additionally, investing in company culture saves time and money on recruiting and hiring. In the ever-competitive job market, attracting top talent can be difficult. As a business owner, to remain competitive, you’ll need to harness various strategies to attract and retain your team, and culture is a significant player. In fact, it’s so important that nearly half of the US workforce is willing to take a lower-paying position at an organization with a positive culture than a high-paying job at a company with a poor culture.

    In other words, work culture is critical in hiring and retention efforts, as employees who feel fulfilled and supported are more likely to stay at an organization. Prioritizing and cultivating a positive organizational culture is essential for enhancing employee well-being, performance, and a strategic advantage that can positively impact your company’s bottom line.

    What Makes A Good Organizational Culture? 

    A strong organizational culture is a culture that promotes a positive work environment, encourages collaboration and innovation, and supports the well-being of its employees. Fundamental elements that contribute to an excellent organizational culture include:

    Respect and trust

    Respect and trust go hand in hand. You can demonstrate both through various avenues, including regularly recognizing employees’ efforts and actively seeking their thoughts and input. Implementing workplace flexibility, which allows employees to set their schedules, work remotely, or offer unlimited time off, is another way to demonstrate respect and trust. This empowerment not only strengthens the bond between employees and your organization but also promotes a sense of autonomy and accountability that can lead to enhanced productivity and job satisfaction.

    Accountability

    A culture of accountability is a fundamental aspect of any successful organization. It extends to everyone in your company as individuals are held responsible for meeting their commitments. This fosters a sense of responsibility and trust among employees and across teams. When everyone is accountable for their own contributions, it promotes a healthy work environment where people can rely on each other to deliver on their promises. This, in turn, leads to increased efficiency, improved teamwork, and a greater likelihood of achieving organizational goals.

    Psychological safety

    Psychological safety in the workplace is vital to fostering a culture where innovation can thrive. Employees should feel empowered to take risks and get rewarded for generating new ideas that align with company objectives. Psychological safety encompasses creating an environment where open and honest feedback is not only encouraged but also valued, regardless of the direction it flows—from team member to team member, from team member to manager or leader, and vice versa. Cultivating these safe spaces enables employees to voice their concerns and share their ideas freely while fostering positive relationships. This, in turn, contributes to higher employee engagement and overall job satisfaction.

    Alignment with business objectives

    A strong culture has a clear set of values and a well-defined mission that guides the organization’s purpose and direction. Regularly communicating your values and mission to all employees through various channels is important. Use company meetings, internal newsletters, intranet platforms, and other communication tools to reinforce these messages.

    Performance driven

    Cultivating a high-performing culture is achieved by making strategic investments in your team. This involves prioritizing professional development, providing training opportunities, and recognizing and rewarding employees for their valuable contributions and achievements. When employees sense this investment in their growth and well-being, it naturally boosts their engagement, resulting in improved performance. Empowered employees who feel supported by leadership are more inclined to go the extra mile and exhibit resilience in the face of challenges. This empowerment ultimately contributes to enhanced overall performance within the organization. Creating and maintaining a good work culture requires consistent effort and attention. While some universal principles can serve as a solid foundation for a healthy and productive work culture, customization to fit your organization’s specific needs and values is crucial. Regularly assess your employees’ needs, engagement, and productivity levels to determine which areas need attention.

    How Leaders Influence Culture

    Leaders play a crucial role in shaping the culture of your organization. They ensure your employees understand your company’s mission, vision, and purpose and how their individual roles contribute to your business’ success. In addition, leaders act as beacons during challenging times or moments of distress. How you and your managers respond in high-pressure situations will significantly influence your team’s reactions. Put simply, whatever behavior your leadership engages in, positive or negative, your staff will follow suit.

    Leaders can effectively influence culture through a few core principles:

    • Integrity: Leaders must align words with actions. For instance, if you claim to trust your staff but micromanage or redo their work consistently, your words and actions don’t match, which can lead to frustrated and disengaged staff.
    • Fair treatment: Cultivating a culture of engaged employees necessitates setting aside any favoritism. While it’s important to recognize and reward good behavior and accomplishments, it’s equally crucial to prevent the formation of exclusive cliques within your organization.
    • Approachability: When your staff recognizes you as a dependable resource for support or guidance, they will be more likely to come to you with innovative ideas. Being approachable helps your team trust that you’ll take their thoughts, concerns, or issues seriously, which can significantly impact their overall engagement and job satisfaction.
    • Humanizing employees: Humanizing your staff is not only common sense but also crucial for building the rapport critical to a positive work culture. Treat your employees as individuals with unique backgrounds and aspirations. Taking a genuine interest in their well-being demonstrates that you care about them as people.

    These core ideas should guide you and your leadership team’s actions and behaviors, which the rest of your staff will adopt.

    HR Audits

    Assessing your company culture is no easy feat. Partnering with a professional employer organization (PEO) like GMS can help. Through our human resource audits, we can help you find areas that need assistance and even help create strategies for you to implement with your team. As your company grows, HR audits can help identify the strengths and weaknesses of your processes to ensure your efforts align with your organization’s strategic plan. Contact us today, and let us help you reach your business goals!

  • Your staff is your most vital asset when it comes to running a successful business. Investing in them is a no-brainer. However, finding the most effective ways to do so is a little more complicated. Incorporating a mentorship program as part of your employees’ professional development offers one highly effective way to help them achieve their career goals and unlock their full potential.

    Mentorship programs can come in many different forms, but to maximize the benefits, you must customize the program to align with your unique goals and the needs of your staff. There are several components to consider when building a mentorship program. However, before we delve into those aspects, let’s first explore some of the advantages.

    Why Mentorship Is Important

    Employee development programs prioritizing mentorship are some of the most effective ways of helping employees develop and achieve their goals while prepping them for the skills needed in the future. In fact, employees who have mentors are promoted five times more often than their counterparts.

    Mentorship is an incredible catalyst for personal and professional growth. It connects individuals with experienced leaders who provide invaluable knowledge and support. Through mentorship, individuals clarify their goals, gain fresh perspectives, and learn from the mistakes and triumphs of those who have walked similar paths. This transformative relationship empowers mentees and allows mentors to give back to their communities and industries, fostering a legacy of growth and development.

    Moreover, mentorship is not a short-term engagement; it often leads to long-lasting relationships. The bonds formed between mentors and mentees often extend beyond the mentorship period, providing a reliable support system and a sense of belonging.

    To determine the most suitable arrangement for your team, it’s crucial to assess their interests and individual goals and continually refine the program as you go. 

    What Makes Mentorship Effective?

    In short, mentorship helps find and unlock unused potential. Mentors can identify and nurture talents often overlooked in the day-to-day environment. In addition, they can help affirm and encourage employees, enhance their self-confidence, and enable them to take on more responsibilities or expand their comfort zones. This, in turn, assists in the overall productivity of your business; engaged employees are more efficient and likely to stay on long-term.

    Other factors that contribute to its effectiveness include the following:

    • Develop communication skills. Mentorship fosters the development of practical communication skills. Mentors provide mentees with the opportunity to articulate their thoughts, ideas, and goals. This practice in communication helps individuals express themselves more clearly and persuasively, a vital skill in any professional setting.
    • Helps employees overcome obstacles. Mentors play a crucial role in assisting mentees in overcoming obstacles. They offer advice based on their own experiences, helping mentees navigate setbacks, problem-solve, and persevere in the face of adversity.
    • Broadens perspective. Mentors often have diverse experiences and backgrounds, which can broaden mentees’ horizons and encourage them to think beyond their immediate circumstances. This broader outlook can lead to innovative solutions and more effective decision-making.
    • Accountability. Effective mentorship often includes setting goals and objectives. Mentors help mentees define clear milestones and hold them accountable for progress. This accountability encourages individuals to stay focused and motivated, driving their personal and professional growth.
    • Continuous learning opportunities. Mentorship promotes a culture of constant learning. Mentees are encouraged to seek knowledge and feedback and adapt to changing circumstances, fostering a growth mindset that benefits both individuals and your organization.

    Nine Steps To Build A Mentorship Program

    Building a mentorship program can be a rewarding and valuable endeavor for any organization. Not only will it support your staff in meeting their individual goals, but it’s also a great tool to assist with engagement and retention efforts.

    To build an effective mentorship program, consider the following steps:

    1. Define purpose and goals: Clearly outline the objectives of your mentorship program. What do you hope to achieve through the mentoring relationship? Examples include career development, skill enhancement, or fostering a sense of community.
    2. Identify stakeholders: Determine who will be involved in the program, including mentors, mentees, program coordinators, and other relevant parties.
    3. Establish structure: Decide on the program’s format, including the duration, frequency of meetings, and the number of participants.
    4. Recruit mentors and mentees: Reach out to potential mentors and mentees within your organization or community. Ensure mentors have the expertise and willingness to commit to the program.
    5. Training and orientation: Provide training and orientation sessions for mentors and mentees. This should cover program expectations, communication guidelines, and relevant skills or knowledge.
    6. Pair mentors and mentees: Carefully match them based on their goals, needs, and compatibility. Consider factors such as experience, industry, and personality.
    7. Set SMART goals: Encourage mentors and mentees to set specific, measurable, achievable, relevant, and time-bound (SMART) goals for their mentorship relationships.
    8. Track progress: Regularly check in with both mentors and mentees. Establish checkpoints where both parties can report their progress or ask for assistance.
    9. Iterate: Once you’ve established your program, collect participant feedback and use it to adjust future rounds of mentorships.

    Mentorship programs are incredible tools to engage your staff. Not only do they offer growth opportunities for each participant, but they are a great way to showcase your investment in your team. Employees who feel valued and supported tend to report higher levels of job satisfaction and are more likely to stay with your organization, contributing to higher retention rates.
    All in all, mentorship programs can be a valuable addition to your employee investment strategy.

    How GMS Can Help

    Between ongoing training and employee recruitment services, finding, hiring, and developing the right people for your organization takes time and effort. Professional employer organizations (PEOs) like GMS give you access to the tools and resources necessary to take on these responsibilities while improving your overall recruiting, hiring, and training efforts.

    Our learning management system is a web-based platform that can implement and monitor a learning process. Employee education is a tremendous opportunity for businesses trying to onboard new hires, tap into their workers’ potential, and support their teams. A learning management system allows employers to streamline and optimize the education process.

    Of course, it takes more than just software to maximize your business’ education efforts. Partnering with a PEO gives businesses access to cutting-edge technology and expert support so that your employees are set up to succeed. Contact us today to learn more about our services!

  • In the current HR landscape, one topic that’s generating substantial buzz is pay transparency. State and local governments are increasingly pushing organizations to open up about their pay practices when posting jobs and to regularly report on these practices. However, even beyond compliance requirements, many forward-thinking organizations voluntarily embrace pay transparency as a fundamental aspect of their HR strategy.

    This shift towards transparency, while commendable, poses significant challenges, especially for large organizations with intricate pay structures. Thankfully, technology is emerging as a vital ally in this endeavor, offering a range of benefits that go beyond just ensuring compliance.

    The Moral Imperative Of Pay Equity And Transparency

    In a job market characterized by fierce competition for talent, candidates hold a significant amount of power. They are not just seeking employment; they are seeking the right fit for their skills, experience, and financial expectations. When organizations are transparent about pay ranges, they empower candidates with essential information to make informed decisions.

    From a recruitment perspective, it makes sense to be transparent about pay ranges. One of the primary benefits of pay transparency during the recruitment process is the efficiency it brings. Without clear pay information, candidates may invest time and effort in pursuing job opportunities only to discover later in the process that the compensation offered falls short of their expectations. This can result in wasted resources for both the candidate and the hiring organization.

    Candidates who have access to pay ranges upfront can quickly assess whether the salary aligns with their financial goals and expectations. As a result, candidates who are genuinely interested in the position and its compensation are more likely to apply, streamlining the recruitment process.

    Furthermore, technology enables organizations to maintain internal and external pay equity effortlessly. Technology streamlines what was once a time-consuming and manual process. However, it’s not just about the numbers; it’s about the actionable insights derived from them.

    Choosing The Right Vendor

    Selecting the right technology vendor is a critical decision. It’s essential to consider a vendor’s platform robustness and expertise in the pay equity domain. A reputable vendor offers tools for evaluating pay and opportunity gaps and provides guidance on changing legislation and best practices.

    It’s critical for business owners to have a clear understanding of the problem they want the platform to solve and what kind of HR and business knowledge they’re seeking through analytics. Involving various groups within the organization, such as legal, HR, and business leaders, can help define the vision for pay equity.

    Unlocking Pay Equity With A PEO

    Partnering with a professional employer organization (PEO) can be a game-changer in navigating the complex terrain of pay transparency and equity. PEOs are well-versed in HR best practices, compliance requirements, and cutting-edge technology solutions. At GMS, a certified PEO, we provide support in implementing transparent pay practices, from crafting fair compensation structures to leveraging advanced HR technology for real-time data insights. By partnering with GMS, businesses can streamline their HR processes and ensure that they stay ahead in the quest for pay equity, ultimately fostering a culture of transparency and fairness that attracts top talent and propels their success in the competitive business landscape. Interested in learning more? Contact us today to learn more.

  • Change is a constant in the world of taxation, and Indiana is no exception. Effective October 1st, 2023, the Indiana Department of Revenue (DOR) has made significant revisions to Departmental Notice No.1, How to Compute Withholding for State and County Income Tax. These changes affect residents and non-residents working in specific Indiana counties. Continue reading to dive into the details of these changes and the income tax rate adjustments in five Indiana counties.

    County Income Tax Rate Changes

    One of the most impactful changes introduced by the Indiana DOR pertains to the income tax rates in certain counties. These revisions aim to balance the fiscal needs of the local governments and maintain a favorable tax environment for residents and workers. Tax rates have been changed in the following Indiana counties:

    • Adams County: The income tax rate has decreased from 0.01624 to 0.016. This reduction may provide relief to taxpayers in the county.
    • Clinton County: The income tax rate has increased from 0.0245 to 0.0265. This change may require residents and non-residents working or residing in Clinton County to review their tax planning strategies.
    • Dearborn County: Dearborn County has also seen an increase in its income tax rate from 0.012 to 0.014.
    • Henry County: The income tax rate in Henry County has increased slightly, from 0.017 to 0.018. While the change is modest, it may impact individuals in the long run.
    • Vanderburgh County: The income tax rate has risen from 0.012 to 0.0125. This increase, while small, can contribute to various local initiatives aimed at improving the quality of life in the county.

    New Tax Exemption For First-Time Qualifying Children

    Aside from the county income tax rate changes, the Indiana DOR has introduced a noteworthy tax exemption for first-time qualifying children that went into effect on September 15th, 2023. This exemption aims to provide relief to growing families. It aligns with Indiana’s commitment to family support and financial well-being. It’s crucial for eligible families to explore the details of this exemption to ensure they can take full advantage of its benefits.

    Navigating These Changes With A PEO

    As October 1st, 2023, approaches, Indiana businesses need to be proactive in understanding and implementing these county income tax rates affecting residents and non-residents working within these counties. While some areas will see tax rate decreases, others will experience slight increases, which can impact your employees and your bottom line.

    This is where a professional employer organization (PEO) like GMS can play a pivotal role in helping your business navigate these tax changes effectively. The following is how we can help your business:

    • Expertise in tax compliance: Our experts have a deep understanding of tax regulations and can ensure that your business complies with the latest tax laws. We help you adjust your payroll and withholding processes to accommodate the changing tax rates.
    • Timely updates: We stay up-to-date with regulatory changes, such as the new tax exemption for first-time qualifying children introduced early this month. Our experts ensure your business takes advantage of these exemptions, reducing your overall tax liability.
    • Streamlined payroll management: With changes in tax rates, your payroll calculations may become more complex. PEOs have robust payroll systems that can handle these changes seamlessly, reducing the administrative burden on your HR and finance teams.
    • Cost control: We help you effectively manage your labor costs and consider the impact of tax rate changes by providing you with valuable insights into workforce optimization and compensation strategies.

    While this proactive approach will help you navigate the changes, it also enables your business to thrive in Indiana’s ever-changing business landscape. Contact us today to learn more.

  • In a move to support freelance workers, Illinois recently enacted the Freelance Worker Protection Act (FWPA), a comprehensive piece of legislation set to take effect on July 1st, 2024. This landmark law ushers in a new era of protection and fairness for freelance professionals in the state.

    Defining Freelance Workers

    The FWPA sets clear criteria for freelance workers, defining them as “natural persons” hired as independent contractors by non-governmental entities, whether in Illinois or for entities located in Illinois, with a minimum payment of $500 (either in a single contract or the aggregate of multiple contracts within a 120-day period). The definition excludes traditional employees and individuals engaged by construction contractors or subcontractors.

    A New Standard: Written Contracts

    One of the most significant aspects of the FWPA is its requirement for written contracts between freelance workers and contracting entities. These contracts must contain essential details, including:

    1. Contact information for both parties, along with the hiring party’s mailing address
    2. An itemized list of products and services provided, including their value and the compensation rate and method
    3. The due date for payment, which cannot exceed 30 days after services or products are provided
    4. The date by which the freelance worker must submit this list if the hiring party demands a list of services for timely compensation 

    The Illinois Department of Labor (IDOL) will provide model contracts for public use at no cost to make compliance easier. Contracting entities must provide a copy of the written contract to the freelance worker and retain it for at least two years, making it available to the IDOL upon request.

    Prohibitions To Ensure Fairness

    Once freelance work commences, the FWPA imposes several crucial prohibitions, including:

    • No conditioning of payment: Hiring parties are forbidden from linking timely payment to the freelance worker’s acceptance of lower compensation than initially agreed upon. 
    • Protection from retaliation: The FWPA also shields freelance workers from any action by hiring parties designed to penalize or deter them from exercising their rights under the law. This encompasses threats, intimidation, discipline, harassment, discrimination, or retaliation. 

    Enforcement And Remedies

    The IDOL will enforce the FWPA, offering freelance workers two avenues for alternatives:

    1. Administrative complaints: Freelance workers can file administrative complaints with the IDOL within two years of the final compensation’s due date.
    2. Civil actions: Alternatively, freelance workers may initiate civil actions without first exhausting administrative remedies. Upon receiving a complaint, the IDOL will conduct an investigation, and a hiring party’s failure to timely respond will create a presumption of liability in any subsequent civil action.

    Penalties and damages for violations depend on the nature of the infraction:

    • Failure to timely pay: Freelance workers can claim double the underpaid amount, along with attorney’s fees and costs
    • Lack of written contract: Violations of the written contract requirement will result in a statutory damage award equivalent to the greater of $500 of the contract’s value
    • Discrimination violations: Actions violating discrimination prohibitions will lead to the recovery of the contract’s value for each offense, associated costs, and attorney’s fees.

    The Role Of The Illinois Attorney General

    Furthermore, the Illinois attorney general can be crucial in enforcing the FWPA. They may initiate or intervene in civil actions, seeking civil penalties not exceeding $5,000 for each violation or $10,000 for each repeat violation within five years. In addition, the attorney can seek monetary damages for the state, restitution, and various forms of equitable relief, including injunctions and temporary restraining orders.

    Ultimately, the Freelance Worker Protection Act indicates a new era of fairness and security for freelance workers in Illinois. With written contracts, prohibitions against unfair practices, and robust enforcement mechanisms, this legislation empowers freelancers to confidently pursue their careers while ensuring they receive fair compensation.

    Unlocking Your Business’s Potential With A PEO In Illinois

    Illinois’ Freelance Worker Protection Act (FWPA) changes how businesses engage with freelance talent. However, the transition to compliance should not be intimidating. Partnering with a professional employer organization (PEO) in Illinois can be your key to success. A PEO like GMS not only understands the intricacies of the FWPA but also streamlines your workforce management. They offer expert guidance in creating compliant contracts, ensuring timely payments, and protecting your business from potential penalties. Allow us to take on the administrative burdens while you focus on growing your business. Contact us today.

  • In a whirlwind of legislative action, Governor Kathy Hochul signed a series of groundbreaking bills that promise to reshape the state’s employment landscape and protect its citizens’ rights. From ending the practice of captive audience to categorizing wage theft as larceny and extending vital protections to interns based on gender identity and expression, these new laws are a testament to New York’s commitment to progressive change.

    Putting An End To Captive-Audience Meetings

    One of the most significant developments is the new law that ends captive audience. This law has far-reaching implications for workers’ rights and employer conduct in the state. In essence, this legislation prohibits employers from disciplining employees who refuse to attend meetings primarily designed to communicate the employer’s opinions on religious or political matters. This includes discussions about unionization, a hot-button issue in many workplaces. While the National Labor Relations Act (NLRA) once protected these meetings as employer speech, the newest New York law takes a decisive stance against the coercion of employees into attending these gatherings.

    Under the new law, it’s now unlawful for employers to refuse employment, discriminate against, or take adverse actions against individuals who decline to attend these meetings. It marks New York as the fourth state to take a stand against mandatory captive-audience meetings, with many states reevaluating the NLRA’s influence in this arena.

    Cracking Down On Wage Theft

    Another significant move by Governor Hochul and the New York Legislature is the amendment to the New York Penal Law to classify wage theft as larceny. This change was urgently needed to address the pervasive issue of employers failing to pay their workers minimum wage, overtime, or promised wage rates. The new law allows for the aggregation of these underpayments, making it easier to prosecute those who exploit their workforce.

    With this amendment in place, employers who engage in wage theft will now face criminal charges and penalties corresponding with the severity of their actions. This bold step sends a clear message that wage theft will not be tolerated in the Empire State.

    Extending Protections For Gender Identity And Expression

    New York has also taken strides to protect interns from discrimination based on gender identity or expression. Governor Hochul signed Senate Bill S7382, a bill extending the New York State Human Rights Law’s prohibitions on discrimination to cover interns. This law offers vital protections that mirror those already in place for employees.

    By including gender identity and expression as protected classes for interns, New York continues to be at the forefront of the fight for equal rights. It sends a powerful message that discrimination of any kind will not be tolerated within the state’s borders.

    Partner With A PEO

    With the prohibition of captive-audience meetings, the classification of wage theft as larceny, and the extension of protections for interns based on gender identity and expression, New York has shown its unwavering commitment to creating a fair and equitable environment. However, small businesses may find it challenging to navigate compliance and employee relations amidst these legislative changes in New York.

    This is where a professional employer organization (PEO) comes into the picture. PEOs like GMS specialize in HR management, offering expertise in navigating complex labor laws, wage compliance, and discrimination protections. By partnering with a PEO, small businesses can ensure they remain fully compliant with these new regulations while focusing on growing their business and supporting their employees. In an ever-evolving regulatory landscape, GMS provides the essential support needed to thrive in New York’s business environment. Contact us today to get started.

  • On September 1st, 2023, California Governor Gavin Newsom took a step toward bolstering employee rights by signing Senate Bill 699 into law. This legislation reaffirms and strengthens the state’s long-standing commitment to employee freedom in pursuing their chosen professions, trades, or businesses. The bill reiterates California’s Business and Professions Code Section 16600 and introduces new provisions that have far-reaching implications for employers and employees. Continue reading to delve into the details of SB 699 and explore the broader impact of this legislation.

    California’s Commitment To Employee Freedom

    California has long been a trailblazer in protecting the rights of its workforce. The cornerstone of this commitment is Business and Professions Code Section 16600, which boldly declares, “Every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” California courts have consistently upheld this provision, making it clear that contracts prohibiting post-employment noncompetition, nonsolicitation of customers, and nonsolicitation of employees are generally unenforceable, with only a few exceptions.

    SB 699: Strengthening Existing Protections

    While SB 699 reaffirms the existing law, it also extends the state’s protections. The following are critical aspects of the bill:

    1. Extraterritorial enforcement: SB 699 clarifies that any contract void under Section 16600 is unenforceable, regardless of where or when it was signed. This means that even if you signed a restrictive covenant outside of California or were employed elsewhere, you’re still protected by the state’s employee-friendly laws.
    2. Ban or noncompete clauses: This bill takes a firm stance against noncompete clauses and other restrictive covenants that violate Section 16600. Employers are now prohibited from entering into such contracts with employees or prospective employees.
    3. Enforcement rights for employees: One of the most significant changes brought by SB 699 is the explicit granting of enforcement rights to employees. This means that if an employer attempts to enforce a contract restricting an employee’s ability to pursue their lawful profession, trade, or business, the employee has a legal recourse to challenge it.

    Consequences For Employers

    Employers must take note of the implications of SB 699. Violations of this legislation could result in civil penalties. This means that businesses operating in California should review their existing contracts and employment practices to ensure compliance with the strengthened employee protection laws.

    The Effective Date

    SB 699 is scheduled to take effect on January 1st, 2024, with regard to the new enforcement rights it creates. This grace period allows employers and employees to adjust to the new legal landscape and ensure they comply with the law.

    How A PEO Can Be Your Small Business’s Strategic Partner

    In the midst of these changing legal landscapes, small businesses in California may find navigating the complexities of employment contracts and compliance challenging. If you’re a small business in California, have you considered partnering with a professional employer organization (PEO)? A PEO like Group Management Services (GMS) acts as a guiding light. GMS specializes in human resources, employee management, and compliance. By partnering with GMS, small businesses can access expertise that helps them stay on the right side of the law while focusing on growth and success. In this dynamic environment, where the protection of employee rights takes center stage, GMS acts as a valuable partner, ensuring that your business thrives while maintaining a steadfast commitment to the welfare of your employees. As the tides of employment law continue to shift, a PEO can be your anchor, providing stability and peace of mind for your business in California. Interested in learning more about how GMS can help your business? Get a quote from us today.

  • In a move aimed at supporting the working class, Alabama is set to introduce a new tax benefit that will directly impact full-time hourly employees. Effective for tax years beginning on or after January 1st, 2024, overtime pay received by these employees for hours worked over 40 in a given week will be excluded from gross income and exempt from Alabama state income tax. This exciting development not only puts more money in the pockets of hardworking Alabamians but also brings significant changes for employers. Continue reading to explore the details of this tax break, the reporting requirements for employers, and the proposed rules issued by the Alabama Department of Revenue (DOR).

    The Overtime Tax Break

    For many full-time hourly employees, overtime pay is a lifeline, often representing the extra effort they put in to make ends meet. Now, Alabama is giving these individuals a well-deserved break by exempting their overtime pay from state income tax. Starting in 2024, any overtime earnings over 40 hours per week will no longer be subject to state taxation. This is excellent news for employees who work hard to provide for their families and have previously struggled with tax burdens on their overtime income.

    Reporting Requirements For Employers

    To ensure the smooth implementation of this tax break, the Alabama DOR has outlined specific reporting requirements for employers. Employers are now required to provide the DOR with a one-time report for 2023 detailing the aggregate amount of overtime paid during the year and the number of full-time hourly employees who received this pay. In addition, beginning in 2024, employers must continue to report this information on a monthly or quarterly basis, tied to their regular reporting of withholding tax. This means that all employers who are required to withhold Alabama tax from their employee’s wages are also obliged to report overtime.

    This reporting requirement is crucial to ensure transparency and compliance with the new tax regulations. Employers play a pivotal role in facilitating the tax breaks for their employees, and accurate reporting will be critical to its success.

    Proposed Rules From The DOR

    To provide further clarity on the implementation of this tax break, the Alabama DOR has also issued proposed rules. These rules aim to guide employers on reporting requirements, define the qualifying overtime exempt from state taxation, and establish precise definitions for relevant terms. These proposed rules will help both employers and employees understand the nuances of this new tax benefit, ensuring that it’s applied fairly and consistently.

    The Assistance Of A PEO

    In light of the proposed rule and the changing landscape of employment regulations in Alabama, partnering with a professional employer organization (PEO) like GMS might be the solution you’re looking for. With our expertise in compliance, HR management, and cost-effective solutions, GMS’ HR experts provide a crucial bridge between businesses and the evolving regulatory environment. By entrusting HR and compliance responsibilities to a PEO, businesses can confidently navigate the complexities of the proposed rule, ensuring that they not only meet the new requirements but also optimize their operations and support their employees effectively. During uncertain times, GMS can be the steadfast partner that empowers businesses to thrive while staying ahead of the curve. Contact us today to learn how we can help your business thrive.

  • In an era of technological innovation, even the most established processes are subject to transformation. The world of employment eligibility verification is no exception. Imagine a future where the cumbersome task of filling out Form I-9 and entering information into E-Verify is streamlined, where employees take an active role in their own verification, and where data entry errors become a thing of the past. This future is closer than you might think, thanks to the proposed features of E-Verify NextGen.

    E-Verify NextGen, scheduled for release in 2024, is poised to reshape the landscape of employment eligibility verification in the United States. This ambitious initiative from the U.S. Citizenship and Immigration Services (USCIS) promises to integrate the Form I-9 process with E-Verify, the federal government’s electronic employment verification system. The result? A more efficient, accurate, and user-friendly system that benefits both employers and employees.

    A Shift In Responsibility

    One of the most significant changes introduced by E-Verify NextGen is the shift in responsibility from HR departments to new hires. Currently, employers must complete a new Form I-9 for each new hire and then enter the relevant information into E-Verify if they are enrolled in the program. This manual process is not without its challenges, often leading to data entry errors and E-Verify mismatches.

    Under the new system, new hires will electronically enter their biographical information, citizenship or immigration status, and acceptable identity documents using their myE-Verify secure personal account. Once the system confirms the employee’s eligibility, the employer will be notified, and they can complete the verification by examining the documents remotely, thanks to the new alternative verification option. The submitted information will be used to generate a completed Form I-9 for the employer to download and store. This seamless process minimizes the chances of data entry errors and ensures that the verification is accurate.

    Empowering Employees

    Another aspect of E-Verify NextGen worth noting is the empowerment it gives employees. Employers will no longer be the intermediary in resolving E-Verify mismatches. Employees will receive notifications and be able to resolve mismatches directly with the government, making the process more secure and private. While this feature may sound appealing, some HR organizations may want to retain an active role in helping employees resolve mismatches, potentially making this a point of contention for certain employers.

    Seamless Job Transitions

    E-Verify NextGen offers a solution to the repetitive process of completing a new Form I-9 and entering a new E-Verify case with each job change. Under this system, employees can carry their verification status when changing jobs. They can save their information in their myE-Verify account and easily update it for new employers, making job transitions smoother and more efficient.

    Targeted Audience And Considerations

    E-Verify NextGen is expected to be most beneficial for employers still completing I-9s on paper. For these organizations, the transition to NextGen promises a more seamless experience for new hires and employers. However, larger employers with interconnected onboarding systems and digital storage may not find the initial version of E-Verify NextGen to be the best fit. It lacks the features typically available through an electronic I-9 system. Nevertheless, as NextGen evolves, there is hope that USCIS will make it available to E-Verify Web Services agents, allowing for integration within more complex employer workflows.

    A Nudge Toward Adoption

    Employer use of E-Verify is currently voluntary, except for certain federal contractors, subcontractors, and employers in specific states that mandate its use. E-Verify NextGen is intended to serve as an additional incentive for more employers to consider adopting the system, particularly with the “optional alternative procedure” for examining I-9 documents remotely.

    The Future Awaits

    It’s important to note that E-Verify NextGen will not replace the standard version of E-Verify, at least for the time being. Employers will have the flexibility to choose between the current E-Verify process and the NextGen version. The proposed changes are currently under review by the Office of Management and Budget, signaling that the future of employment eligibility verification is on the horizon.

    E-Verify NextGen promises to revolutionize the way employment eligibility verification is conducted. Streamlining processes, empowering employees, and providing a more efficient system offer numerous benefits to employers and job seekers. As we eagerly await its release in 2024, the potential for a more seamless and error-free verification process is an exciting prospect for the world of employment.

    Have You Considered Partnering With A PEO

    With the employment eligibility verification process constantly changing, the role of a professional employer organization (PEO) becomes even more invaluable. PEOs like GMS specialize in HR functions, compliance, and payroll, offering businesses the expertise and support they need to navigate the complexities of systems such as E-Verify NextGen. By partnering with GMS, companies can ensure they’re well-prepared for the changes ahead, minimize administrative burdens, and focus strongly on their core operations. As the future unfolds and E-Verify NextGen becomes a reality, a PEO can be the guiding hand that leads businesses toward a seamless, compliant, and efficient verification process, allowing them to thrive in a rapidly changing employment landscape. Contact our HR experts today to learn more.

  • In a significant shift from recent years, the U.S. Equal Employment Opportunity Commission (EEOC) has announced updated deadlines for employers to submit their demographic data. The EEO-1 Component 1 data collection for 2022 is set to kick off on October 31st, 2023, with the deadline for employers to file their EEO-1 reports now extended to December 5th, 2023. This shift in the filing cycle is bound to impact businesses across the nation, prompting employers to adapt to the new timeline and understand the implications of these changes.

    Who Needs To File EEO-1 Reports?

    Private employers with at least 100 employees must file the EEO-1 form annually. This form essentially provides a snapshot of the racial, ethnic, and gender composition of their workforce broken down by specific job categories. In addition to private employers, federal government contractors and first-tier subcontractors with 50 or more employees and at least $50,000 in contracts must also submit EEO-1 reports. However, it’s important to note that state and local governments, as well as public school systems, are exempt from this requirement.

    Streamlining The Reporting Process

    One of the most notable aspects of this year’s changes is the shift in the filing cycle. In the past, employers were accustomed to deadlines in May or June. The new timeline aims to streamline the reporting structure, making it more accessible for employers to prepare and submit their EEO-1 reports. This change is a welcome development for many employers who have struggled with previous deadlines.

    One-Year Approval From The White House

    It’s essential to note that the White House Office of Management and Budget (OMB) extended this approval of the EEO-1 form for only one year, despite the EEOC’s request for a three-year approval. While this extension allows the EEOC to proceed with collecting EEO-1 reports this fall, it leaves the future of the EEO-1 reporting format uncertain.

    The primary change accompanying this newly approved EEO-1 form is eliminating Type 6 reports. While only a few employers used these reports, they allowed employers to provide summary data for facilities with fewer than 50 employees. The new EEO-1 report will require employers to provide demographic data for all facilities, regardless of size, creating a more comprehensive overview of workplace diversity.

    Possible Changes To Race Categories

    An aspect that remains unchanged for the 2022 data collection is the race categories on the EEO-1 form, which include white, black or African American, Native Hawaiian, or other Pacific Islander, Asian, American Indian or Alaska Native, and two or more races. On the form, Hispanic or Latino is categorized as an ethnicity, not a race. However, recent comments in court documents during the Supreme Court’s affirmative action case have suggested that these race categories might be overly broad and could undergo revisions in the future.

    Partner With GMS

    As the deadline for EEO-1 submission looms and businesses prepare to meet their reporting obligations, the role of a professional employer organization (PEO) emerges as a powerful partner. PEOs like Group Management Services (GMS) are not just about compliance; they are the bridge to a future where diversity, equity, and inclusion are seamlessly integrated into the workplace fabric. By partnering with GMS, businesses can access expert guidance, streamlined reporting processes, and comprehensive support. Together, we can confidently navigate the complex landscape of EEO-1 reporting, ultimately fostering an environment where employees’ potential is realized, and their contributions are valued. In this partnership, businesses meet regulatory requirements and lay the foundation for a more equitable and prosperous future. Contact us today to learn more.