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  • In a move that could reshape the landscape of the construction industry, the U.S. Department of Labor (DOL) issued a significant final rule on August 8th, 2023. This rule aims to raise the prevailing wage standard for approximately one million construction workers operating under the federal Davis-Bacon Act. This long-awaited change comes as a response to the evolving dynamics of the construction sector, including the effects of the Bipartisan Infrastructure Law of 2021 that fueled federal infrastructure projects nationwide. Continue reading to dive into the details and implications of this pivotal development.

    Protecting Workers’ Interests

    At its core, the Davis-Bacon Act, enacted in 1931, is a testament to the government’s commitment to safeguard the welfare of construction workers. The act mandates the payment of locally prevailing wages and fringe benefits on federal contracts for construction projects exceeding $2,000. This ensures that contractors don’t undercut wages, thereby protecting local standards and providing a fair wage for workers.

    Revitalizing Prevailing Wage Standards

    The new final rule seeks to revitalize the prevailing wage standards by introducing a range of enhancements. Among them, the DOL gains the authority to adopt prevailing wages determined by state and local governments, offering a more localized and relevant approach. In addition, the rule reintroduces a three-step process to identify the prevailing wage rate for different worker classifications, ensuring that wage rates reflect the majority’s income while minimizing the undue influence of excessively low wages.

    Strengthening Workers’ Rights

    One of the most noteworthy aspects of the new rule is the incorporation of anti-retaliation provisions. These provisions are designed to protect workers who raise concerns about wage violations from facing any form of retaliation. Moreover, the rule empowers the DOL to withhold funds from federal contractors who fail to provide the rightful wages to their employees. This emphasizes the importance of fair wages and offers a practical means of enforcement.

    Balancing Wage Growth And Inflation

    A pertinent concern in any wage adjustment is the potential impact on inflation. However, recent research and analysis by the DOL indicated that wage increases, particularly for lower-income workers, do not necessarily result in significant economy-wide price hikes. In fact, inflation-adjusted wages for nonsupervisory construction workers have experienced a healthy increase of 2.4% over the past year. This insight counters the notion that wage growth inevitably leads to inflationary pressures.

    Embracing Change In A Shifting Landscape

    The construction industry has evolved dramatically since the Davis-Bacon Act’s inception over nine decades ago. The industry’s complexity, diversity, and regional disparities have all called for reevaluating prevailing wage standards. With the final rule’s emphasis on flexibility through state and local determinations, the government acknowledges the need to tailor wages to the unique dynamics of each locale.

    Benefits Of Partnering With A PEO 

    In this era of progressive change, where the construction industry undergoes a transformative shift in prevailing wage standards, the role of a professional employer organization (PEO) becomes even more invaluable. A PEO brings a wealth of expertise in navigating intricate wage regulations, ensuring compliance with evolving laws, and advocating for the welfare of employers and employees. With its adept handling of payroll management, benefits administration, and legal intricacies, a PEO like GMS is a strategic partner in enabling construction businesses to adapt to the new Davis-Bacon Act rule seamlessly.

    By entrusting GMS with the intricacies of HR management, construction companies can focus on their core operations, confident in the knowledge that they are upholding fair wages, workers’ rights, and regulatory requirements. As the construction landscape evolves, embracing the collaborative expertise of a PEO can be the cornerstone of sustained success, allowing businesses to weather changes and thrive in a dynamic industry. Contact us today to learn more.

  • In a significant stride towards enhancing the rights and protections of freelance workers, the city of Los Angeles, California, has enacted a groundbreaking ordinance poised to redefine the landscape for independent contractors in the city. The Freelance Worker Protections Ordinance, which took effect on July 1st, 2023, is a resounding win for freelance workers and is aligned with the city’s commitment to ensuring fair treatment and equitable compensation for all workers.

    Defining Freelance Workers

    Under the new ordinance, the term “freelance worker” has been meticulously defined, encompassing individuals and entities engaged as independent contractors to provide services in exchange for compensation. The ordinance explicitly excludes certain professions requiring written compensation agreements, such as attorneys, architects, and engineers. Similarly, app-based transportation and delivery drivers, who have been the subject of much debate in recent times, are also exempt from the scope of this ordinance.

    At its core, the ordinance aims to establish fundamental rights and safeguards for freelance workers in Los Angeles. The following are key provisions that promise to reshape the freelancer landscape in the city:

    1. Basic written contract requirement: The ordinance mandates that a basic written contract between the freelance workers and the hiring entity must be in place. Even in cases where an oral contract exists, the hiring entity must provide a written contract. This contract must detail essential information, including contact details of both parties, services provided, compensation terms, and payment schedule.
    2. Timely payment assurance: The ordinance sets a clear standard for timely payment. If the contract specifies a payment date, the hiring entity must fulfill the payment in full by that date. In cases where no specific date is mentioned, payment must be issued no later than 30 days after completion of the work.
    3. Record keeping: Freelance workers and hiring entities must maintain written records for at least four years. These records must include contracts, payment documentation, and other evidence demonstrating adherence to the contract terms.
    4. Protection from retaliation: The ordinance safeguards freelancers from any form of punishment, retaliation, or adverse action by the hiring entity in response to exercising their rights under the law.
    5. Addressing violations: Freelancers are empowered to take action against violations. They can file a civil lawsuit seeking damages or file a complaint with the Bureau of Contract Administration. The ordinance affirms their right to pursue both avenues.
    6. Accountability for hiring entities: The ordinance outlines the responsibilities of hiring entities to respond to complaints and requests from the Bureau of Contract Administration. Failure to comply within the stipulated time frame can result in legal repercussions.
    7. Damages and remedies: Successful freelance worker litigants are entitled to a range of damages, depending on the nature of the violation. These include reasonable attorneys’ fees, injunctive relief, and other remedies deemed appropriate by the court.

    Diving Deeper Into The New Ordinance

    Los Angeles’ Freelance Worker Protections Ordinance transcends mere regulation, a testament to the city’s commitment to fostering a fair and equitable work environment for all. With a wide application encompassing many businesses and freelance workers, its significance cannot be underestimated. The ordinance underscores the need for companies to be proactive in reviewing their practices, ensuring compliance with its provisions, and upholding the rights and dignity of freelance workers.

    This ordinance sets a powerful precedent for other jurisdictions in an age where the freelance economy is rapidly evolving. It signals a paradigm shift towards recognizing the vital contributions of freelance workers and valuing their rights on par with traditional employees. Los Angeles’ stride towards worker empowerment is not just commendable, it’s a blueprint for a more inclusive and just future of work.

    Partner With A PEO

    Amidst the transformative landscape shaped by Los Angeles’ pioneering Freelance Workers Protections Ordinance, businesses should consider partnering with a professional employer organization (PEO). PEOs like Group Management Services (GMS) specialize in providing comprehensive HR solutions, ensuring compliance with ever-evolving labor regulations. Businesses can streamline their administrative processes by partnering with GMS, efficiently manage freelance worker contracts, and maintain meticulous records.

    As the ordinance ushers in a new era of freelancer empowerment, a PEO can serve as a strategic partner, helping businesses navigate the complexities and intricacies of the regulation while fostering an environment where freelance workers and hiring entities thrive harmoniously. With GMS’ expertise, businesses can confidently embrace the spirit of the ordinance and build a foundation of fairness, transparency, and compliance in their freelance engagements. Contact us today to learn more.

  • The COVID-19 pandemic dramatically reshaped how we work, ushering in a remote work era that allowed employees across various sectors to carry out their roles from the comfort of their homes. However, a significant shift is underway as the pandemic gradually loosens its grip and we navigate the road to recovery. President Joe Biden is leading the charge to bring federal employees back to their offices, marking a pivotal moment in our work culture.

    A Presidential Call To Action

    President Biden’s recent call for federal government agencies to increase in-person work this fall represents a turning point in our approach to work post-pandemic. This directive aligns with President Biden’s commitment to reinstate in-person positions for most federal workers, a promise he reiterated in his State of the Union address in March 2022.

    Addressing Workplace Capacity And Culture

    The push for in-person work is not just a symbolic gesture; it stems from a practical need to optimize workspace capacity. A Government Accountability Office report revealed that many federal agencies utilized only a fraction of their headquarters’ capacities, with 17 out of 24 agencies using around 25% or less. President Biden’s call to action seeks to maximize the potential of these workspaces, enabling better collaboration, communication, and efficiency.

    In addition, the President’s directive emphasizes the significance of in-person work for fostering a strong workplace culture. As remote work provides flexibility, in-person interactions are key to nurturing relationships, boosting team morale, and cultivating a sense of belonging.

    The Corporate Shift: A Tale Of Success

    President Biden’s call for a return to the office mirrors a broader trend taking place across the corporate landscape. Many private sector companies have been phasing out remote work and advocating for employees to rejoin the office environment, citing the need for collaboration and preserving workplace culture. A survey found that employees who returned to the office reported higher job satisfaction, increased effectiveness, and heightened productivity. This positive trend underscores the potential benefits that in-person work can bring to organizations and their employees.

    Navigating Challenges And Considerations

    While the push for in-person work carries numerous advantages, it does not come without its challenges. Some federal employee unions have resisted the return, seeking to uphold remote work arrangements. Balancing employees’ preferences, the interests of unions, and the administration’s goals will require careful negotiation and strategic planning.

    Positioning For Success – Partner With A PEO

    In an era of unprecedented challenges and transformative change, the call for in-person work represents an opportunity for business owners to reimagine their workplaces and foster a sense of unity, collaboration, and innovation. By staying attuned to President Biden’s directive and the broader shift toward in-person interactions, business leaders can strategically adapt their operations to create a vibrant and thriving workplace culture.

    Embracing flexible approaches, such as hybrid models that combine the best remote and in-person work, can help balance employee preferences and the benefits of face-to-face interactions. As you chart your course forward, consider leveraging technology to support seamless communication, emphasizing the value of team gatherings, and prioritizing employees’ well-being in this evolving landscape.

    Have you considered partnering with a professional employer organization (PEO)? To navigate this transition seamlessly and maximize its benefits, businesses can turn to the expertise and support of GMS, a certified PEO (CPEO). We offer comprehensive solutions tailored to the evolving needs of your workforce, helping you stay adaptable, compliant, and focused on your core business goals.

    The following are how a PEO can assist in this transition process:

    • Compliance guidance: As workplace regulations evolve, PEOs stay up-to-date with the latest laws, ensuring your business remains compliant during the in-person work transition. 
    • Employee benefits management: PEOs can help optimize your employee benefits package to meet the changing needs of your workforce, enhancing job satisfaction and retention. 
    • Flexible HR solutions: PEOs offer flexible human resources solutions that can be tailored to your unique needs, whether it’s creating hybrid work models, adapting policies, or fostering a positive workplace culture. 

    Contact us today to learn more. 

  • Running a small business is no small feat. It requires dedication, passion, and an unwavering commitment to success. In this dynamic and competitive landscape, where every decision matters, small business owners must embrace a strategic approach that can elevate their venture to new heights. One such indispensable strategy is performance management. Often underestimated, performance management is key to unlocking a business’s full potential, especially for those operating on a smaller scale.

    The Essence Of Performance Management

    Performance management is not just another corporate buzzword; it’s a comprehensive strategy that helps businesses align their workforce’s efforts with their goals, ensuring improved productivity, employee engagement, and overall success. Performance management involves setting clear expectations, regularly monitoring progress, providing constructive feedback, and recognizing achievements. Performance management aims to create an environment where individuals can perform to the best of their abilities and align with the organization’s overall goals.

    Why Business Owners Should Embrace Performance Management

    1. Goal alignment: Effective performance management ensures that every employee understands their role in achieving the company’s objectives. This alignment fosters a sense of purpose and direction among the workforce, driving them to contribute meaningfully to the organization’s success.
    2. Continuous improvement: Performance management empowers employees to refine their skills and work habits through ongoing monitoring and feedback. This culture of continuous improvement translates into enhanced efficiency and innovation, contributing to the company’s competitiveness.
    3. Employee engagement and satisfaction: When employees feel that their efforts are acknowledged and their growth is supported, they become more engaged and satisfied. This positive atmosphere not only boosts productivity but also reduces turnover rates.
    4. Effective communication: Regular performance discussions foster open lines of communication between employees and management. This dialogue allows for identifying challenges and opportunities, leading to quicker problem-solving and optimal decision-making.
    5. Recognition and motivation: Performance management provides a platform for recognizing and celebrating achievements. Public acknowledgment of hard work and dedication instills a sense of pride and motivates employees to excel further.
    6. Data-driven insights: Collecting and analyzing performance data provides valuable insights into individuals’ and teams’ strengths and weaknesses. These insights inform strategic decisions, resource allocation, and future planning.

    Amy Latchaw, GMS’ Client Services Manager, added, “Performance management is one of the most important HR functions an organization can invest time and resources in. Effective performance management helps you better understand your employees, their talents and shortcomings, and what’s needed to achieve the organization’s goals.”

    The Power Of Clarity And Alignment 

    In the world of small business, resources are often limited. Therefore, ensuring that every effort is aligned with the business’s strategic direction is paramount. Performance management provides the tools to set clear goals, expectations, and priorities. When everyone in the organization knows what’s expected of them and how their contributions fit into the bigger picture, it breeds a sense of purpose that drives productivity.

    Nurturing Accountability And Ownership

    For a small business to thrive, accountability cannot be an afterthought. Performance management instills a sense of ownership within employees. When individuals take ownership of their tasks and projects, they are more likely to be invested in their success. This sense of responsibility boosts productivity and fosters a culture of innovation, where employees feel empowered to take initiative and contribute ideas.

    Continuous Learning And Adaptation

    In today’s fast-paced business landscape, adaptability is key. Small businesses must be agile in responding to changes in the market, technology, and consumer preferences. Performance management facilitates a cycle of continuous learning and improvement. Regular check-ins, performance evaluations, and feedback sessions allow employees to reflect on their progress, identify areas for growth, and make necessary adjustments. This iterative process ensures that the business remains relevant and competitive.

    Empowering Employee Development

    Employees are the backbone of any organization, and their growth directly impacts the business’s success. Performance management enables small business owners to identify high-potential individuals, address skill gaps, and provide targeted training and development opportunities. By investing in their team’s growth, business owners enhance their employees’ capabilities and create a loyal and motivated workforce.

    Building A Culture Of Recognition

    Recognizing and appreciating hard work is a cornerstone of effective performance management. Small business owners can harness the power of positive reinforcement to boost morale and foster a culture of appreciation. Employees who feel valued and acknowledged for their contributions are more likely to remain engaged and motivated.

    The PEO Advantage In Performance Management

    As the journey toward small business success continues, it’s essential to recognize the valuable role that a professional employer organization (PEO) can play in enhancing performance management efforts. PEOs bring a wealth of expertise and resources to the table, assisting small business owners in streamlining their performance management strategies. From offering guidance on goal setting and employee development to providing tools for data-driven decision-making and comprehensive HR solutions, a PEO like GMS can be a partner that propels your business toward its goals.

    By alleviating administrative burdens and providing a tailored approach to performance management, GMS empowers small business owners to focus on what truly matters – driving growth, fostering innovation, and nurturing a thriving workforce. So, as you embark on your journey of maximizing success, consider the strategic advantage that a PEO can bring to your performance management endeavors, leading your business toward a brighter and more prosperous future. Learn more about our performance management services and contact us today!

  • In a resounding vote of 34-1, the California Senate has taken a historic stride towards furthering anti-discrimination laws by considering the protection of caste within its legal framework. Senate Bill 403, once a proposal to introduce caste as a distinct category of protected characteristics, has evolved to redefine the boundaries of ancestry within the state’s anti-discrimination statutes. This legislative move is not only a leap for California but could potentially ignite a nationwide movement against caste-based discrimination.

    Understanding Caste

    Caste, a complex system of hereditary classes deeply rooted in certain societies and cultures, is a topic both intricate and sensitive. Its impact resonates across ethnic, linguistic, and religious divides, making the California Senate’s decision to consider its legal protection an undeniable call for societal transformation. The concept has been in the U.S. since at least the mid-1960s when more immigrants arrived from South Asia. Individuals in the lowest social and religious class were long called “untouchables.”

    At work, individuals in lower castes say those in higher castes give them less pay, fewer promotions, and tougher assignments. In social settings, caste can limit relationships and marriages and lead to isolation. In the most extreme cases, it has led to harassment or even violence.

    What Would This Bill Do?

    Senate Bill 403 would add caste as a legally protected category to the state Unruh Civil Rights Act, the California Fair Employment and Housing Act, and the state anti-discrimination policy in public schools. The bill bans discrimination based on caste, whether the person is in a high or low position.

    Since California has expanded protections to other disadvantaged groups, and discrimination based on caste is becoming increasingly common, businesses and schools need clarity on what the state law requires.

    The Evolution Of Senate Bill 403

    Initially, the bill proposed the inclusion of caste as a standalone safeguard against discrimination. However, a significant amendment on July 10th, 2023, saw caste incorporated into the definition of ancestry, reaffirming its connection to an individual’s perceived place within a social stratification system based on inherited status. This amendment underscores California’s commitment to building on existing anti-discrimination laws rather than crafting entirely new avenues of protection.

    While the immediate scope of the bill centers around employment practices within California, its implications resonate far beyond state lines. This pivotal moment could inspire other jurisdictions to follow suit, thus reshaping the anti-discrimination landscape on a broader scale. Employers nationwide should recognize the potential transformation of the legal and social framework surrounding caste-based discrimination.

    The bill’s measured approach, abstaining from naming specific countries or regions where caste systems originate, speaks to a profound commitment to addressing this issue globally. This stance aims to eliminate discrimination regardless of an individual’s country of origin, championing unity in the face of cultural diversity.

    Behind this legislative drive lies the undeniable urgency to combat caste-based discrimination, a concern that transcends borders. Spearheaded by State Senator Aisha Wahab, Senate Bill 403 signifies a commitment to fostering a more inclusive society free from the shackles of caste prejudice. As the United States continues to evolve into a mosaic of cultures and identities, acknowledging and dismantling caste-based discrimination only grows more critical.

    Seattle’s Precedent And Nationwide Impact

    Seattle’s precedent-setting inclusion of caste in its list of protected categories was the first domino to fall, prompting discussions and actions nationwide. As the California Senate makes bold strides, other states and institutions contemplate similar measures. The echoes of this legislative movement have reached the halls of Oregon and Vermont, with universities nationwide championing policies against caste-based discrimination.

    Workplace Transformation: Implications For Employers

    As this issue comes under the spotlight, some argue that existing protected classes could sufficiently cover caste-based discrimination. Senate Bill 403’s nuanced inclusion of caste within the ancestry category reflects a thoughtful approach that honors the unique nature of this complex issue.

    For California employers, the potential enactment of Senate Bill 403 would necessitate a thorough evaluation and revision of policies and training programs. Employers would contribute to a more inclusive and equitable workplace environment by integrating caste discrimination discussions into equal employment initiatives.

    Navigating the intricacies of caste-based discrimination demands sensitivity and expertise. Employers must acknowledge the complexities, including the potential pitfalls of identifying specific regions as origins of caste, which could inadvertently exacerbate discrimination.

    How PEOs Navigate California’s Changing Landscape

    As the journey towards a caste-discrimination-free society gains momentum, California’s resolute stance sets an inspiring example. For businesses in the state, the evolving legal framework and sensitivities surrounding caste protection can present unique challenges. In such a transformative time, partnering with a professional employer organization (PEO) becomes a strategic move for business owners. PEOs like GMS offer HR expertise and a deep understanding of the shifting legislative landscape.

    With our guidance, businesses can navigate the complexities of integrating caste-discrimination discussions into policies and training programs, fostering a workplace that embraces diversity and equity. As California forges ahead on this path of progress, GMS stands ready to empower business owners with the knowledge and tools to champion inclusivity, ensuring this change reaches every corner of the workplace. Interested in learning more? Contact us today.

  • Gender diversity may seem like a passing trend; however, creating a gender-inclusive workforce has significant business advantages. Research consistently shows that diverse teams outperform homogeneous ones when it comes to problem-solving and innovation. A gender-diverse workforce creates a more inclusive and productive environment for your whole team. For example, diverse teams can experience a nearly 40% increase in productivity per worker and can increase profitability by almost 63%.

    Despite these overall benefits, women still encounter substantial inequalities in employment opportunities and promotions within the workplace. While women make up nearly half of the workforce, the proportion of women in top leadership positions falls significantly short of their overall representation. This disparity not only affects gender diversity but also hinders organizations from benefiting fully from the talents, perspectives, and experiences that women bring to the table.

    Multiple factors contribute to these disparities, including biases, stereotypes, and structural barriers perpetuating gender inequality. Women often encounter obstacles related to implicit bias in hiring and promotion decisions, limited access to mentorship and sponsorship opportunities, unequal pay, and work-life balance challenges.

    Diversifying your staff can be a real challenge and strain on your resources. Partnering with a professional employer organization (PEO) such as GMS can help. We’ve prepared some actionable strategies that you can begin implementing right away. With our support, you create a workplace that values and leverages the strengths of every individual.

    How Your Business Benefits From Gender Balance 

    A study of over 1,000 companies in 12 countries found that gender-diverse organizations are more profitable than their non-diverse counterparts. Not only are they 58% more likely to have a positive social reputation, but businesses with women in management positions experience 35% more return on equity (ROE).

    Achieving gender balance within your workforce enables a deeper understanding of your customer base. Women comprise 80% of consumers, so their buying habits significantly impact business growth. By cultivating a gender-balanced workforce, you bring together diverse perspectives, experiences, and ideas that can enhance your ability to cater to different customer segments.

    When both male and female perspectives influence decision-making, you can develop products, services, and marketing strategies that resonate with a broader audience. A diverse workforce allows you to establish stronger connections with customers, foster customer loyalty, and gain a competitive advantage in the marketplace.

    Establishing a more gender-balanced team is only one piece of the puzzle. In order to tap into these diverse insights and approaches, you must foster an inclusive environment where everyone has an equal voice. This diversity of thought leads to more robust decision-making processes, the ability to identify and address blind spots, and the development of innovative solutions.

    Hiring And Promotional Strategies 

    A common mistake many businesses make is the failure to develop long-term strategies. Like any business endeavor, implementing a strategy without ongoing evaluations and adjustments can waste valuable resources. To counter this issue, it’s essential to regularly reevaluate your diversity efforts to determine their effectiveness and make necessary improvements. To start this process, you can:

    Implement clear performance evaluation criteria

    Statistically speaking, women receive more attention and criticism for their failures than recognition for their successes. This translates to fewer promotions and raises for women compared to their male counterparts, which can negatively affect your business’s ROE. To help combat this within your promotional processes, establishing explicit performance evaluation criteria is essential to eliminate conscious and unconscious bias. The criteria for evaluating employees should encompass strategic, operational, and individual performance factors that are clear, attainable, relevant, and quantifiable. Once defined, these criteria will objectively assess your employees on a scale from “not met” to “met.” This not only assists in eliminating bias during promotion decisions, but it also helps give your whole staff a clear understanding of your expectations.

    Offer unconscious bias training

    Unconscious or implicit bias is the prejudice or unsupported judgment in favor of or against one thing, person, or group often developed in early childhood and reinforced through familial, educational, and cultural institutions. With proper training, you can help eliminate the impact unconscious bias has on your business. This bias extends beyond gender and can encompass prejudice against individuals without a high school or college education or those engaged in “blue-collar” work such as manual labor or skilled trades. Unconscious bias training can help your staff effectively interact with customers and colleagues from diverse backgrounds. This training aims to foster better understanding and communication, promoting a more inclusive environment for everyone.

    Develop transparent and inclusive job descriptions

    To promote more balanced and inclusive hiring practices, utilize less rigid language in job descriptions. For instance, by replacing terms such as “competitive” and “best of the best,” which tend to appeal more to men, with language that emphasizes qualities such as “loyalty” and “collaboration,” you can help attract a more diverse range of candidates. Additionally, limit the use of industry or company-specific terminology. This allows candidates with diverse experiences and skill sets to understand the requirements and qualifications better, making them more likely to apply. By using clear and accessible language, you open up your job post to individuals who may have been deterred by unfamiliar terminology, ensuring a broader and more diverse applicant pool.

    Foster an inclusive workplace culture 

    Create a supportive and inclusive environment that values diversity and promotes gender equality. Encourage inclusive language such as “team” or “folks” instead of “guys.” Inspire open dialogue, respect, and amplify marginalized voices in meetings. In other words, be mindful of who takes up the most space in discussions, who is being interrupted, and who isn’t speaking at all. This can benefit your whole team, not just women. Quiet and more introverted team members can have valuable insights but may not feel comfortable or don’t have the chance to share. So, ensure you’re providing equal opportunities for all employees to contribute.

    Set anti-harassment policies

    To assist with retention efforts, it’s vital to cultivate a workplace culture that fosters safety, equality, and respect. This involves developing and enforcing policies and processes that address harassment, discrimination, and any other issues that may arise. Communicating these policies to employees and providing avenues for reporting and addressing concerns are key steps in creating a safe and equitable environment where everyone feels valued and supported.

    Promote flexible work arrangements 

    By offering flexible work hours, remote work options, and family-friendly policies, you demonstrate a commitment to supporting work-life balance for all employees, fostering an inclusive workplace that acknowledges and values diverse needs. These initiatives benefit employees with caregiving responsibilities and promote employee well-being, productivity, and overall job satisfaction, leading to a more engaged and motivated workforce.

    Conduct pay equity audits

    Women, on average, still only make 82 cents compared to a man making a dollar. Through a pay equity audit, you can identify any inequities within your business related to factors such as race and gender. By regularly reviewing and analyzing compensation data, you can address any discrepancies and provide fair and transparent salary structures free from gender-based wage gaps.

    Support career development and training

    Professional development programs can include workshops, seminars, conferences, and training sessions. These programs should focus on enhancing leadership, communication, negotiation, strategic thinking, and other competencies relevant to advancing in leadership roles. These programs can benefit the women on your team and anyone interested in developing their skills.

    Maintaining An Equitable Culture 

    In addition to implementing more inclusive hiring and promotional practices, fostering a culture of respect, accountability, and compassion is crucial for creating a truly gender-diverse workplace. Regularly communicate to your staff the benefits and positive impacts of diversity and inclusion to help generate company-wide buy-in and support for these initiatives.

    Develop an anti-harassment policy clearly outlining the consequences for leaders and employees who engage in repeated harassment or create a hostile work environment. Within this policy, ensure a robust complaint system is in place where staff members can feel safe to report any misconduct. Establishing a strong complaint system empowers your team to come forward, address issues promptly, and uphold accountability within your organization. This proactive approach not only helps prevent future incidents but also showcases your dedication to developing a respectful and supportive workplace culture.

    Performance Management Assistance 

    Performance management plays a pivotal role for business owners as they make crucial decisions concerning training, career development, compensation, transfers, promotions, and termination. Through our employee performance management service, GMS can help you set clear goals and expectations for each employee and provide feedback about those goals. Employees also value performance management, as it can offer opportunities for them to grow within your organization and, ultimately, advance their careers.

    Additionally, our learning management system makes it easier for you to streamline job training, improve employee performance, and reduce costs for learning platforms and in-person training. Partnering with a PEO like GMS can elevate the burden associated with managing employees, and protect your revenue and profits from unexpected fines, all while maintaining complete control over your team. Contact us today, and let’s get started!

  • Amidst the ever-evolving labor and workforce development landscape, the New Jersey Department of Labor recently unveiled its proposed regulations for the state’s groundbreaking Temporary Workers’ Bill of Rights (TWBR). To safeguard the rights of temporary laborers, this legislation indicates a new era of enhanced protection and equitable treatment. However, as with any revolutionary measure, challenges and uncertainties lie ahead.

    Within the past few months, the law’s notice and retaliation provisions have come into effect, accompanied by the issuance of a mandatory notice form and the compilation of FAQs.

    Pay Equity And Beyond

    At the heart of the TWBR stands its unwavering commitment to pay equity for temporary laborers engaged in substantially similar work. While the intention is admirable, the path to compliance is complex. One such challenge arises from the ambiguity surrounding calculating benefits for pay parity.

    The proposed regulations shed some light on the matter, defining benefits to include a range of fringe benefits such as health insurance, life insurance, disability insurance, and more. However, the lack of precision in determining the average cost of these benefits has left employers grappling with uncertainty. Clarity on these benefit calculations is essential to ensure businesses can confidently adhere to the law.

    Placing Placement Fees In Perspective 

    Another area demanding explanation is the placement fees for temporary laborers transitioning to permanent positions. While the TWBR allows temp agencies to charge placement fees, the specifics of how these fees should be calculated are unclear.

    The proposed regulations offer step-by-step guidance, but complications arise when temp agencies must ascertain the daily cost of benefits provided during assignments with third-party clients. The path to accurate placement fee calculation remains unclear, with the scope of benefits left undefined.

    Strengthening Protections With Notice And Anti-Retaliation Measures 

    As of May 7th, 2023, the notice and retaliation provisions of the TWBR have been set into motion, bolstering safeguards for temporary workers. Temp agencies must now utilize state-authorized forms, ensuring essential information reaches workers without fail. Yet, further clarity on the practical aspects of these requirements could prove beneficial. Establishing methods for recording receipts and defining the rebuttal of retaliation presumptions could enhance the effectiveness of these measures and offer greater security to temporary workers.

    Under the provisions of the law, third-party clients are obligated to furnish specific information to the temp agency within seven days following the conclusion of the workweek during which the temporary laborer was engaged. The regulations emphasize that failure to provide the required information will not be considered a violation, provided the third-party client cannot submit the time records due to circumstances beyond their control. However, the regulations do not explicitly outline the circumstances that would be deemed beyond their control. Consequently, employers must exercise caution, as non-compliance could lead to penalties of up to $500 per violation.

    Litigation Looms On The Horizon

    While the TWBR represents a commendable stride towards empowering temporary workers, it has not escaped legal scrutiny. Ongoing litigation seeks to delay the implementation of remaining provisions, with challenges centered on constitutional grounds. Temp agencies should remain vigilant, closely monitoring developments in this case that could impact the implementation and enforceability of the TWBR.

    Consider Partnering With A PEO Like GMS 

    For business owners in New Jersey, the decision to collaborate with a professional employer organization (PEO) opens a gateway to unparalleled support and prosperity. In the dynamic and ever-changing landscape of New Jersey’s business environment, a PEO is a reliable partner, adeptly navigating the complexities of HR, payroll, benefits administration, and risk management. By entrusting these critical functions to a seasoned PEO like Group Management Services (GMS), business owners can unburden themselves from administrative hassles and compliance worries, allowing them to redirect their focus toward strategic growth and innovation.

    With access to a wealth of HR expertise, cutting-edge technology, and comprehensive employee benefits packages, businesses can attract and retain top talent, fostering a thriving and engaged workforce. Embracing a partnership with GMS is not just a business decision – it’s a visionary step toward building a resilient and successful business for years to come. Get a quote today!

  • In a monumental step towards building a more inclusive society, the Department of Justice (DOJ) has unveiled plans to introduce new standards that would ensure state and local government websites and mobile applications become more accessible to people with disabilities. The proposed rule announced on July 25th, 2023, the day before the 33rd anniversary of the Americans with Disabilities Act (ADA), promises to significantly improve the online experience for nearly 50 million Americans facing challenges related to vision, hearing, cognitive, and manual dexterity disabilities.

    The ADA prohibits discrimination against those with disabilities in several areas, including the following:

    • Employment
    • Transportation
    • Public accommodations
    • Communications
    • Access to state and local government programs and services 

    Web Accessibility: A Key Pillar Of Inclusivity 

    The proposed rule is designed to address critical barriers faced by individuals with disabilities when accessing websites and mobile applications. It includes provisions to integrate text descriptions for images, provide captions on videos, and enable keyboard navigation for those with limited hand mobility. By prioritizing these improvements, the White House aims to foster greater access to crucial public services and programs, such as employment, education, voting, health services, and transit schedules.

    Enabling inclusive education

    Under the proposed rule, students with disabilities will gain improved access to course content, including higher-level math and science courses. By making educational materials more accessible, the government seeks to level the playing field and empower all students to reach their full potential.

    Empowering voter registration

    The rule also addresses accessibility issues surrounding voter registration websites. By enhancing these platforms, voters with disabilities can register independently, strengthening the democratic process and ensuring every citizen’s voice is heard.

    Facilitating commute and travel

    For individuals with disabilities, accessing bus and train information online can be transformative. The proposed rule aims to streamline online transit schedules, making it easier for people with disabilities to commute to work and engage in other essential activities.

    The Impact Of Web Accessibility Standards On Society 

    It’s essential to highlight the urgency of implementing clear accessibility standards for state and local programs. This ensures that individuals with disabilities can participate fully in modern society without facing unnecessary barriers to essential services. The proposed rule aligns with existing ADA obligations under Title II, establishing a specific technical standard that state and local governments must follow.

    Public input: Shaping a more accessible future

    The DOJ seeks public input through a 60-day comment period to ensure a well-rounded and comprehensive rule. This open forum invites stakeholders and concerned citizens to offer their insights and recommendations, guaranteeing that the final standards reflect the diverse needs of the disability community.

    The White House’s expanding commitment to web accessibility

    The proposed rule comes as part of a broader commitment by the White House to support individuals with disabilities. In 2022, the DOJ released guidance emphasizing that ADA requirements apply to all public accommodations, including those offered on websites. Furthermore, the Department of Commerce announced $42.5 billion in grants to improve high-speed internet access nationwide, acknowledging the Internet’s essential role in supporting individuals with disabilities.

    Private employers: Embracing the inclusive vision

    Although the rule primarily impacts state and local governments, it also serves as a wake-up call to private businesses. Attorney J. Colin Knisely advises companies to make website accessibility a top priority. As the legal landscape evolves, private companies may soon face similar accessibility standards. Employers are encouraged to conduct regular website audits, address common accessibility issues, and collaborate with reputable vendors specializing in web accessibility.

    The Unique Advantages Of Utilizing A PEO

    In this era of heightened awareness and advocacy for web accessibility, businesses find themselves facing new challenges and responsibilities. Navigating the complex landscape of accessibility standards and ensuring compliance can be daunting, especially for small business owners. Fortunately, a professional employer organization (PEO) can be the solution you need.

    A PEO like Group Management Services (GMS) brings expertise in HR and legal compliance to help businesses proactively address accessibility concerns and implement best practices. By partnering with GMS, business owners can confidently navigate the evolving legal landscape, enhance their web accessibility, and create a more inclusive online presence. As we strive for a society where everyone can participate fully, businesses can lead by example with the support of a PEO. Interested in learning more about GMS’ services? Contact us today to learn more.

  • With August in full swing, a significant milestone in employment eligibility verification awaits. Qualified E-Verify users in good standing will now have the option of remote verification for identification and work authorization documents associated with Form I-9. This revolutionary change comes after a series of developments in response to the pandemic, presenting employers with newfound flexibility in hiring and documentation procedures. Continue reading to delve into the background, benefits, and eligibility criteria for remote verification.

    The Evolution Of Form I-9 Compliance

    The COVID-19 pandemic brought forth unprecedented challenges for employers, requiring swift adaptations to comply with Form I-9 requirements. On March 20th, 2020, the Department of Homeland Security (DHS) and U.S. Immigration and Customers Enforcement (ICE) offered employers with remote employees the ability to obtain, inspect, and retain copies of identification and employment eligibility documents virtually. This temporary provision responded to the sudden shift to remote work and allowed businesses to maintain compliance despite their dispersed workforces.

    In response to this initiative and the experiences of employers during this period, the U.S. Citizenship and Immigration Services proposed a rule for alternative procedures in its regulatory agenda. After receiving valuable feedback, ICE announced the winding down of the pandemic flexibilities on May 4th, 2023, setting a sunset date of July 31st, 2023. However, an employer will not be required to physically examine the documentation associated with a Form I-9 if it:

    • Was enrolled in E-Verify at the time of hire 
    • Created an E-Verify case for that employee
    • Performed the remote inspection between March 20th, 2020, and July 31st, 2023 

    Introducing Remote Verification – The Alternative Procedure 

    On August 1st, 2023, remote verification began offering qualified E-Verify users in good standing an innovative approach to comply with Form I-9 requirements. To be eligible for this option, employers must have enrolled in E-Verify for all hiring sites using the alternative procedure and must comply with all E-Verify program requirements. Continued participation in good standing in E-Verify is necessary whenever the employer opts for remote verification.

    The remote verification process commences with a live video interaction between the employer and the new hire. During this session, the employee completes Section 1 of Form I-9, which is then uploaded and sent to the employer. A subsequent live video chat occurs, where the employer witnesses the employee present their original employment verification document to the camera for inspection. The new I-9 form will feature a corresponding box for the employer to check when utilizing the alternative procedure for Section 2 or re-verification.

    Benefits And Considerations 

    Embracing remote verification opens doors to numerous benefits for employers and employees alike. For employers, this alternative option streamlines the hiring process by eliminating the need for in-person document verification, saving time and resources. Moreover, it accommodates remote employees, making hiring talent from different geographical locations easier. The remote verification process also encourages paperless documentation, promoting a greener and more sustainable workplace.

    However, employers must ensure consistent application of the alternative procedure for all employees at a hiring site, with the exception of hybrid workers who may require in-person verification. Employees can also have an in-person meeting if they prefer, ensuring that flexibility is maintained throughout the hiring process.

    Understanding Who Is Eligible To Use Remote Verification 

    To qualify for remote verification, also known as the “alternative procedure,” employers must meet specific criteria and maintain good standing with E-Verify. This includes:

    • Enrollment in E-Verify for all hiring sites that utilize the alternative procedure
    • Compliance with all E-Verify program requirements, including verifying the employment eligibility of newly hired employees
    • Continued participation in good standing with E-Verify whenever remote verification is employed 

    In addition, new E-Verify employers and users responsible for managing and creating cases must complete an E-Verify tutorial. Existing E-Verify employers who have already undergone the training do not need to repeat it for remote verification eligibility.

    Leveraging PEO Expertise

    In navigating the intricacies of remote verification and maintaining compliance with Form I-9 requirements, partnering with a professional employer organization (PEO) can be a game-changing solution for businesses. A PEO like GMS brings a wealth of expertise and resources to the table, offering comprehensive HR support, streamlined processes, and up-to-date knowledge of ever-changing regulations. From handling E-Verify enrollments to guiding employers through the intricacies of remote verification, GMS’ HR experts ensure a seamless transition to the alternative procedure. By teaming up with GMS, businesses can focus on their core operations and talent acquisition, confident that their employment eligibility verification processes are in the hands of experienced professionals. Embrace the future of remote verification with the guidance of a PEO, and unlock a world of compliance, efficiency, and peace of mind. Contact us today to learn more.

  • In a groundbreaking move aimed at advancing workers’ rights and improving working conditions, California has re-established the Industrial Welfare Commission (IWC). This long-awaited decision, part of the 2023 budget bill signed by Governor Gavin Newsom on July 10th, 2023, brings renewed hope for employees across various industries, especially for those in the fast-food sector and gig workers. As the IWC prepares to reconvene by January 2024, employers must grasp the significance of this development and how it may impact their operations.

    A Historic Return With A Clear Mission

    Founded in 1913, the IWC was initially created to protect and enhance the well-being of workers. Despite closing in 2004 due to funding issues, the commission’s wage orders have remained in effect, encompassing 17 different industries and occupations. Now, with a dedicated budget of $3 million, the IWC will reconvene and adopt final recommendations by October 2024.

    Empowering Workers And Raising Industry Standards

    The IWC’s revival signifies a potent tool for California’s Democratic-controlled Legislature to advance its pro-worker goals. By designating wage boards to recommend fair pay, appropriate working hours, and improved working conditions, the commission will actively support industries with a high concentration of low-income workers. In particular, the focus will be on sectors with over 10% of employees living at or below the federal poverty level.

    Addressing Key Industry Challenges 

    With the IWC’s return, lawmakers aim to tackle two pressing issues: 

    • Regulations in the fast-food industry
    • Classifications of gig workers

    The fast-food sector has resisted stricter regulations, including AB 257, a law designed to elevate the industry’s pay rates and working conditions. Business groups have opposed the law, leading to a ballot measure seeking its repeal. Similarly, the classification of gig workers has been a contentious topic, with AB 5 imposing stringent requirements on companies to classify workers as employees. Proposition 22, a 2020 ballot measure that allowed Uber, Lyft, and other platforms to classify their workers as independent contractors rather than employees, exempted certain companies from AB 5, but legal battles persist.

    IWC’s Implications For Employers And Industries

    Employers must acknowledge the magnitude of the IWC’s return. With its ability to influence California’s regulatory landscape, the agency will likely prioritize industries regulated by Wage Order 5, such as restaurants and hotels. Under the current provisions of Wage Order 5, if an employee works a 50-hour workweek of two 20-hour shifts and one 10-hour shift, the employer will pay daily overtime workweek because the employee’s workweek schedule is more than 40 hours.

    However, as the commission potentially gains more funding in subsequent years, its impact may extend to a broader array of sectors. This development may also pave the way for other states to establish their own IWCs, further reshaping workers’ rights nationally.

    Collaboration And Concerns

    While labor groups such as the Service Employees International Union (SEIU) applaud the IWC’s revival for its potential to combat poverty and inequality, employment lawyers harbor concerns about the scope of its power. The agency follows a unique rulemaking process not subject to the Administrative Procedure Act, which raises questions about transparency and accountability. Employers are advised to stay vigilant, as a small group of appointed members may hold significant sway over industry regulations.

    The Assistance Of A PEO

    In the face of California’s re-established Industrial Welfare Commission (IWC) and the potential changes it may bring to industry regulations, employers may find navigating the evolving landscape challenging. A professional employer organization (PEO) might be the solution you need. When you partner with a PEO like GMS, businesses can offload complex HR tasks, compliance management, and payroll processing, allowing them to focus on their core competencies. GMS acts as a co-employer, sharing employer responsibilities, which means we help employers adapt seamlessly to any industry-specific rules and regulations set forth by the IWC. Our expertise in HR compliance and industry best practices allows us to help employers remain compliant with evolving laws and can offer competitive employee benefits. Embracing the support of GMS during this transformative period ensures business continuity and empowers employers to prioritize their workforce’s well-being, ultimately leading to a more prosperous and harmonious working relationship for all. Contact us today to learn more!