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  • The gig economy has reshaped the modern workforce, offering flexibility and freedom for workers and cost-saving adaptability for businesses. However, this new dynamic also brings challenges in legal compliance, worker classification, and benefits provisions. As the gig economy grows, companies must address these hurdles to build a competitive operation. Let’s explore these changes and what businesses can do to adapt. 

    The Rise Of The Gig Economy 

    The gig economy, often referred to as the sharing or access economy, relies on freelancers, independent contractors, and temporary workers rather than traditional full-time employees. This model appeals to businesses for its cost savings and adaptability, as well as to workers for its flexibility and autonomy. In 2023, 64 million Americans (38% of the U.S. workforce) participated in gig work, contributing $1.27 trillion to the economy. 

    While the gig economy has grown rapidly, it is shifting away from labor-based gigs such as ridesharing and delivery to skill-based roles in fields such as tech, creative services, and management. This transition highlights the importance of adapting strategies to meet the changing needs of both workers and businesses. 

    Flexibility Vs. Security 

    Gig work offers significant advantages, such as the freedom to set schedules and the ability to work remotely. However, it also leaves workers vulnerable to economic insecurity and a lack of traditional employment benefits. Employer-provided benefits are tied to long-term employment and consistent hours, criteria that many gig workers don’t meet. Therefore, although 63% of individuals prefer gig work for its flexibility, 50% would only consider gig roles if they included robust benefits such as health care and retirement plans. 

    Addressing this gap presents an opportunity. Companies that provide alternative forms of support for gig workers can stand out, attracting top talent. Examples include:  

    • Providing access to resources such as financial education. 
    • Connecting workers to third-party benefits providers. 
    • Offering competitive pay that accounts for the lack of traditional benefits.

    Legal Considerations And Compliance Risks 

    Proper classification of gig workers is critical for businesses to avoid legal pitfalls. Misclassification can lead to lawsuits, penalties, and reputational damage. In 2024, the Department of Labor implemented new criteria for distinguishing employees from independent contractors under the Fair Labor Standards Act (FLSA). Employers must carefully assess relationships with gig workers to align with these standards and provide proper documentation and worker protections. 

    By proactively addressing compliance issues, companies can demonstrate ethical practices, reduce the risk of legal repercussions, and build a strong reputation. 

    Strategies For Succeeding In The Gig Economy 

    To effectively manage gig workers and remain competitive, businesses must address the unique challenges of gig work with forward-thinking strategies. Consider the following: 

    1. Provide non-traditional support: Facilitate gig workers’ access to third-party benefits platforms, professional development opportunities, and financial planning resources. 
    2. Maintain proper worker classification: Follow Department of Labor guidelines to distinguish between employees and independent contractors. 
    3. Leverage technology: Use modern platforms to manage contracts, track compliance, and streamline payments. 
    4. Embrace global talent: Expand the company’s reach by hiring international gig workers, taking advantage of the gig economy’s globalized nature. 

    Adapting To The Future Of Work 

    The gig economy is no longer a peripheral workforce model, it can be a central aspect of modern business strategy. Companies that adapt to its unique challenges while adhering to the evolving laws and regulations will gain a competitive edge in a dynamic labor market. 

    Partnering With GMS 

    Navigating the complexities of the gig economy requires expertise in HR management and legal regulations. Group Management Services (GMS) can help businesses stay ahead by ensuring proper worker classification, providing training and documentation to maintain compliance, and managing regulatory challenges.  

    Contact GMS today to learn how we can support your organization in the progressing gig economy. 

  • Maintaining records may not be the most glamorous part of running a business, but it is undeniably one of the most important. Without an effective records management system, businesses risk costly consequences, such as non-compliance fines, operational inefficiencies, or lost time spent tracking down essential documents. As regulatory requirements evolve and compliance becomes increasingly complex, adopting modern, efficient record-keeping solutions is more critical than ever. 

    The Regulatory Landscape 

    Businesses today face a patchwork of record-keeping requirements at the federal, state, and local levels. Here’s a quick overview of just how much employers need to juggle: 

    • Fair Labor Standards Act (FLSA) violations remain a significant source of fines. In FY2023, the U.S. Department of Labor recovered $274 million in back wages, with compliance efforts intensifying into 2025. 
    • IRS penalties for late payroll tax deposits can reach 10% of unpaid taxes if overdue by more than 15 days. Misclassification of workers as independent contractors are also a growing compliance issue, potentially leading to significant fines. 
    • OSHA mandates the retention of certain medical and safety-related records. Employers must keep records of work-related injuries and illnesses for at least five years following the end of the calendar year that the records cover. 
    • IRS guidelines call for tax records to be preserved for a minimum of seven years, depending on the document type. 

    Recordkeeping errors and omissions pose an additional challenge, especially with the Department of Labor and IRS implementing stricter audit protocols. Companies face fines or even litigation for noncompliance with federal and state regulations. Failing to meet these standards can result in hefty penalties, lawsuits, or even reputational damage. For example, in 2023, multiple businesses were fined tens of thousands of dollars for incomplete or missing employee records during routine Department of Labor audits. 

    Employers are increasingly turning to comprehensive HR and payroll software to streamline compliance. Such tools help businesses stay updated on state-specific regulations, automate records retention, and ensure timely reporting during audits.  

    Why Records Management Matters 

    Improved compliance and risk reduction 

    Inadequate record-keeping leaves employers vulnerable to regulatory audits and legal disputes. Proper systems ensure businesses have the right documentation readily available to demonstrate compliance with laws like the FLSA, the Affordable Care Act, and tax regulations. 

    Operational efficiency 

    According to Gartner, on average, four weeks are lost each year, waiting on misfiled, mislabeled, untracked, or lost documents. That’s time businesses can’t afford to waste, especially in small and midsize companies where resources are limited. Digital systems streamline retrieval, reduce filing errors, and automate data organization. 

    Data security 

    Safeguarding sensitive employee and financial information is non-negotiable in 2025. With the rise in cybersecurity threats, digital records management platforms with encryption and secure access protocols offer peace of mind and ensure that sensitive data doesn’t fall into the wrong hands. 

    The Shift To Digitization 

    Recognizing the inefficiencies of paper-based systems, organizations are moving towards digitization. The federal government has already embraced this transformation, with agencies like the National Archives and Records Administration (NARA) transitioning to fully electronic records management. For businesses, digitization means: 

    • Automation of record retention and disposal: Tools that automatically schedule records for deletion after their retention period reduce clutter and ensure compliance with laws requiring timely disposal. 
    • Centralized data management: Instead of searching through scattered filing cabinets or fragmented software systems, digital platforms allow businesses to consolidate records in one secure, accessible location. 
    • Cost savings: While transitioning to a digital system may involve upfront costs, businesses save significantly in the long run through reduced storage, retrieval, and administrative expenses. 

    Why This Matters For Employees 

    Employees also benefit from proper records management. Accurate payroll records ensure timely and accurate paychecks. Access to well-maintained personnel files can help resolve disputes, verify employment for loans or housing, and provide clear records of benefits and leave balances. Efficient systems create a smoother, more transparent workplace for everyone. 

    How GMS Can Help 

    At Group Management Services (GMS), we understand how challenging it is to navigate the complexities of record-keeping. Our technology simplifies record management by consolidating all your data into one secure platform. Our systems keep you updated on state and federal compliance requirements, automate document retention schedules, and make accessing critical records effortless. 

    With GMS, you’ll save time, reduce risk, and protect your bottom line—so you can focus on growing your business instead of worrying about audits or misplaced files. Contact us today to learn how our solutions can transform your records management strategy. 

  • Corporate culture isn’t just a company’s personality; it shapes the way employees connect with their work, collaborate with each other, and align with organizational goals. Companies that deliberately grow a positive, inclusive culture experience heightened engagement, lower turnover, and increased productivity. 

    Culture, similar to a product, is something you build and refine. While companies create products to meet customer needs, the workplace culture is the “product” designed for employees. It’s essential that both are treated with the same care and investment for a business to grow successfully.  

    Let’s explore what you need to build a healthy culture for your business. 

    The Role Of Corporate Culture In Employee Engagement 

    Research shows that companies with a positive culture report a 72% higher employee engagement rate compared to those with a negative or dysfunctional culture. 

    Employee engagement, defined as the emotional commitment employees have toward their organization, is closely tied to a company’s workplace environment. A culture prioritizing psychological safety, accountability, and recognition creates an ecosystem where employees feel valued and motivated to contribute their best work. Engaged employees are not only more productive but also more likely to stay with their organization, reducing turnover costs and preserving institutional knowledge.  

    Productivity Rooted In Purpose 

    An intentional culture acts as a performance catalyst. Companies that align their cultural values with business objectives empower employees to perform with purpose. Clear communication of mission and values not only boosts morale but also strengthens organizational cohesion. Research consistently shows that positive workplace environments improve both productivity and emotional wellbeing. 

    Being A Cultural Architect 

    “Invest in your culture, and your people will invest in your vision.”

    – Lisa Dassani, VP of Human Resources, Group Management Services

    Leadership plays a pivotal role in shaping and sustaining corporate culture. Company leaders set the tone for their teams. Employees look to them not just for direction, but for cultural cues. It’s imperative to demonstrate transparency, integrity, and understanding when interacting with your team. Some ways for leaders to reinforce culture include: 

    • Share company updates and achievements regularly to keep employees informed and motivated. 
    • Create an open-door policy to encourage honest feedback and innovative ideas. 
    • Host team-building activities to strengthen trust and collaboration among employees. 
    • Use performance reviews as an opportunity to align individual goals with organizational values. 

    Strategies To Cultivate A Positive Corporate Culture 

    1. Define clear vision and values: Clearly articulate your company’s mission, vision, and values, and make them a part of daily operations. 
    2. Lead by example: Embody and reinforce cultural values through actions, not just words. 
    3. Endorse open communication: Encourage feedback so employees feel heard and valued. 
    4. Recognize your employees: Regularly acknowledge and reward employees’ contributions to reinforce positive behaviors and achievements. 
    5. Invest in professional development: Offer opportunities for continuous learning and career advancement to keep employees engaged. 
    6. Promote work-life balance: Implement policies that support employees’ personal lives, such as flexible working hours and wellness programs. 
    7. Support autonomy: Give employees the freedom to take ownership of their roles while maintaining accountability. 

    Partner With GMS To Strengthen Your Culture 

    Navigating the complexities of building a strong corporate culture can be daunting, especially for growing organizations. That’s where Group Management Services (GMS) steps in. GMS specializes in offering solutions like HR audits, professional development programs, and leadership training to help businesses refine their culture. By partnering with GMS, companies gain access to tools and strategies that support a healthy workplace, paving the way for employee satisfaction and business growth. Contact us today and let’s support your journey toward building an engaged and high-performing workforce environment. 

  • As the year ends, businesses should prioritize updating their paid time off (PTO) policies and employee handbooks to prepare for a compliant and productive 2025. These updates not only ensure adherence to current laws but also reinforce a positive work culture, keeping employees engaged and satisfied. Leveraging advanced technology, such as a human resource information system (HRIS), can simplify this process and streamline human resources (HR) management. 

    Why Review PTO Policies? 

    PTO policies are foundational to supporting employee well-being and ensuring workplace productivity. A thoughtful approach to PTO includes: 

    • Clear definitions: Clearly state how much time off employees can take. Specify leave types (e.g., sick leave, vacation, and parental leave) to prevent misunderstandings.  
    • Compliance with laws: Stay updated on regulations like the Pregnancy Workers Fairness Act and state-mandated paid family leave to avoid legal risks. 
    • Outline usage rules: Explain when employees can take time off, any restrictions during peak periods, and how unused PTO is handled (e.g., rollovers or forfeitures). 
    • Specify request procedures: Establish how much advance notice is required, the steps for submitting a request, and how approvals are granted.  
    • Consider incentives for peak times: For industries like retail, where staffing is critical during holidays, consider offering extra pay for those willing to work during high-demand periods.  
    • Employee empowerment: Flexible PTO structures, such as carryover options or mental health days, show that your organization values work-life balance. 

    Set clear expectations and communicate your PTO policy effectively, especially in your employee handbook and during onboarding. This approach creates a supportive environment that values both operational efficiency and employee well-being. 

    To further enhance this process, consider using tools like an HRIS. These systems allow businesses to efficiently manage PTO tracking, accruals, and requests in one centralized system. This technology provides real-time insights into employee time off, making it easier to balance staffing needs and employee satisfaction. 

    Why Update The Employee Handbook? 

    The employee handbook is a vital resource for communicating company policies and expectations. Keeping it current offers several advantages: 

    • Legal compliance: Federal and state laws on wage transparency, remote work policies, and workplace harassment may require updates. 
    • Adaptation to workplace changes: Include policies for hybrid work arrangements, technology use, and other post-pandemic adjustments. 
    • Employee clarity: Updated handbooks prevent confusion, ensuring employees understand PTO guidelines and other workplace rules. 

    Integrating HR technology solutions ensures that these updates are seamless. For instance, employee handbooks stored within an HRIS are easy to update, share, and distribute, ensuring all staff members have access to the latest policies. 

    Preparing For 2025 And Beyond 

    As you finalize updates for 2025, think beyond compliance to create policies that reflect your company’s culture and goals. Encourage employees to use their PTO by fostering a supportive time-off culture and aligning your handbook updates with your long-term HR and operational strategies. 

    How GMS Can Help 

    Group Management Services (GMS) offers comprehensive HR management and timekeeping solutions that take the hassle out of year-end handbook updates. Through GMS Connect, you gain access to advanced tools for PTO tracking, compliance monitoring, and so much more. These features help you stay organized while building a workplace where employees feel valued and empowered. 

    By partnering with GMS, you’ll have HR experts on your side to create a well-structured time-off management system that supports your business goals. Contact us today to learn how GMS can help you enter 2025 with confidence.

  • Navigating employee performance management can be a challenge, especially when it comes to disciplinary actions. Writing up employees may not be pleasant, but it’s a crucial step in maintaining a fair and productive work environment.

    When other forms of discipline like verbal warnings or informal coaching aren’t leading to an improvement in performance, an effective employee write-up can result in a good outcome for the organization, employees, and their supervisors. When performed incorrectly, write-ups can lead to misunderstandings or even legal issues.

    Listed below are common mistakes to avoid when issuing employee write-ups and how to ensure your approach is effective and compliant.

    Mistake: Waiting Too Long To Address Issues

    Promptly addressing problems is key to effective performance management.

    Delaying disciplinary action can weaken the message and reduce the effectiveness of a write-up. Taking too long to discipline an employee could also lead to important details of the situation being forgotten or lost as time progresses. Addressing performance or conduct issues quickly after they occur establishes a precedence for employees to understand the importance of the matter and gives them a chance to correct their behavior. Early intervention also provides a clearer timeline if future actions are needed.

    Mistake: Letting Emotions Take Over

    Write-ups should be calm, factual, and objective.

    Issuing a write-up when emotions are high can lead to unprofessional language and mistakes. Take the time to cool down and approach the situation calmly. An effective write-up focuses on objective and documented facts rather than opinions or frustrations. Employees challenging a disciplinary decision can use the write-up as evidence. Therefore, it’s important to remember that the goal of a write-up is to correct behavior, not to punish out of anger.

    Mistake: Using Vague Language

    Specificity is essential for clarity and compliance.

    Ambiguity can lead to confusion and weaken the write-up. Be precise when describing incidents, including details such as dates, times, and behaviors. Reference specific company policies that were violated and explain the impact of the employee’s actions. Providing clear examples leaves no room for misinterpretation and reinforces the seriousness of the issue.

    Mistake: Skipping Witness Statements

    Including witnesses adds credibility to documentation.

    If other employees or customers observed the incident, gathering their factual statements can strengthen a case. Witnesses should be unbiased and based on direct observations. This additional perspective not only reinforces a write-up but also demonstrates a thorough investigation into the issue.

    Mistake: Failing To Outline Clear Expectations For Improvement

    Clear goals and timelines are necessary for effective corrective action.

    Simply pointing out what went wrong is not enough. Detail what the employee needs to do to improve, provide actionable steps, and set a specific deadline. Employers can create a performance improvement plan (PIP), a formal written document that outlines recurring behavior and/or performance issues along with a specific timeline for the employee to achieve certain goals to regain good standing in the company.

    This not only helps the employee understand what’s expected but also protects the company if further disciplinary action is needed. Focus on corrective feedback rather than highlighting what’s wrong and avoid minimizing the seriousness with praise.

    Mistake: Delivering Write-Ups In The Wrong Setting

    Write-ups should be delivered in person whenever possible.

    Issuing a write-up via email or in a casual setting undermines the gravity of the situation. Schedule a private meeting to discuss the issue respectfully and provide the employee with a physical copy of the write-up. This allows for a professional and constructive conversation and gives the employee an opportunity to ask questions and understand the next steps.

    Mistake: Overlooking Company Policy References

    Aligning write-ups with company policies reinforces fairness and compliance.

    Always reference the relevant sections of the company’s policies when documenting a violation. If the employee signed an acknowledgment of these policies, in a handbook for example, mention that in the write-up. This consistency reduces the risk of claims of unfair treatment and strengthens the legitimacy of disciplinary action.

    Mistake: Not Following Up After The Write-Up

    Monitoring progress is just as important as issuing the write-up.

    Once a write-up has been issued, it’s crucial to evaluate whether the employee is making the necessary improvements. This can be done through informal evaluations such as observing their interactions with customers, or formal assessments using a standardized rubric. Demonstrate support by being available for questions and providing guidance. Effective follow-up helps prevent future issues and emphasizes a manager’s commitment to their employee’s growth.

    Partner With GMS For Expert Employee Management

    Employee write-ups are just one aspect of effective performance management. At GMS, we help business owners handle the complexities of managing employees, from documentation to compliance, employee development, goal setting, and more. Our team of HR experts can take on these administrative burdens, ensuring you stay protected, and your employees remain productive.

    Contact GMS today to learn how we can support your business and improve your employee management strategies. Download our free guide on simplifying performance management to get started.

  • Starting in January 2025, California employers must adjust their hiring practices to align with a new amendment to the Fair Employment and Housing Act (FEHA). Senate Bill 1100 prohibits employers from requiring job applicants to have a driver’s license unless driving is an essential and unavoidable part of the job. This change aims to support the employment of non-drivers who rely on alternative forms of transportation like ride-hailing services, public transit, biking, or walking. 

    Understanding The FEHA Amendment 

    California law already prohibits discrimination based on an applicant’s immigration status, with nonstandard driver’s licenses (such as AB 60 licenses) issued to individuals who cannot prove legal presence in the United States. However, the new legislation expands protections to those without any form of driver’s license, aiming to ensure that transportation barriers do not unnecessarily limit job opportunities. 

    Under the amended FEHA, employers can no longer include blanket statements in job ads or applications requiring a driver’s license unless: 

    1. Driving is an essential job function. The employer must reasonably expect the role to require driving in a way that cannot be replaced by alternative transportation. 
    2. Alternative transportation is not comparable. The employer must determine that using a ride-hailing service, taxi, or other modes of transportation would not be feasible in terms of travel time or cost. 

    The law aims to prevent discrimination against individuals who either cannot afford to maintain a vehicle or whose physical limitations prevent them from obtaining a license, such as those with visual impairments. 

    Implications For Employers 

    Employers in California should review their hiring materials, including job postings, applications, and recruitment ads, to ensure compliance with the new FEHA requirements. Starting January 2025, employers must clearly evaluate whether a driver’s license is necessary for the job or if alternative transportation methods could fulfill the role’s demands. 

    Businesses operating in Los Angeles County must comply with local hiring regulations. This includes the Fair Chance Ordinance, which imposes specific requirements for job solicitations. 

    Why This Matters 

    This amendment is part of a broader effort to remove barriers to employment, particularly for those who rely on public transportation or ride-sharing services due to financial or physical limitations. Employers who fail to comply with the new law not only risk legal penalties but also a loss of access to a broader, more diverse talent pool. This adjustment offers an opportunity for employers to rethink what is truly necessary in their job requirements, encouraging inclusivity in the workplace. 

    How GMS Can Help 

    Staying compliant with labor laws can be complex. At Group Management Services (GMS), we specialize in helping businesses navigate regulatory changes like California’s new FEHA amendment. Whether you need assistance with drafting compliant job descriptions, updating your hiring processes, or managing other HR functions, GMS has the expertise to ensure your business remains compliant and avoids costly penalties. Contact us today to learn more about how we can support your HR and compliance needs. 

  • On September 24, 2024, the Pittsburgh City Council passed a groundbreaking ordinance that prohibits employment discrimination based on an individual’s status as a medical marijuana patient. Signed into effect immediately, this ordinance has significant implications for employers, particularly those with five or more employees. This new law prohibits pre-employment drug tests for marijuana for applicants who hold valid Pennsylvania medical marijuana cards. It also imposes limitations on employer-initiated marijuana testing during the course of employment without suspicion of impairment.” 

    Key Provisions Of The Pittsburgh Medical Marijuana Ordinance 

    The ordinance sets a new precedent in employment law, shifting the focus from how employers handle positive marijuana test results to whether they can conduct marijuana tests at all. Unlike similar protections in other states, such as New Jersey, where employers can test but are limited in their ability to take action based on a positive result, Pittsburgh’s ordinance removes the option to test medical marijuana patients altogether, except under specific safety-related circumstances. 

    The ordinance defines a medical marijuana patient as someone with a serious medical condition, disability, or handicap who is certified under Pennsylvania law to use marijuana for medical purposes. This protection applies only to individuals participating in Pennsylvania’s Medical Marijuana Program. The law does not extend to non-participants or recreational marijuana users. 

    While this protection offers significant benefits to medical marijuana patients, it poses a challenge for employers. Typically, employers do not know whether an applicant or employee holds a medical marijuana card unless the individual volunteers that information, making it challenging to apply the ordinance in pre-employment scenarios where medical disclosures are not yet allowed. 

    Exceptions And Limitations 

    Though the ordinance is comprehensive, it does include several critical exceptions. Employers can still test applicants or employees for marijuana if they work in certain safety-sensitive positions. For example, individuals subject to U.S. or Pennsylvania Department of Transportation regulations, those who handle firearms, or employees in positions with specific collective bargaining agreements that mandate drug testing are exempt from the ordinance’s protections. 

    Additionally, Pennsylvania’s Medical Marijuana Act allows employers to take action against employees under the influence of marijuana while performing specific high-risk tasks. This includes working with chemicals requiring government permits, operating heavy machinery or high-voltage equipment, or performing duties at heights or in confined spaces. 

    The ordinance allows employers to: 

    • Discipline employees under the influence of marijuana at work. 
    • Prohibit marijuana use in the workplace. 
    • Test employees for illegal drug use. 
    • Conduct drug tests if there is reasonable suspicion of impairment. 
    • Perform drug tests following workplace accidents. 

    Employers must navigate these provisions carefully to ensure compliance while maintaining workplace safety. 

    Implications For Employers 

    For businesses operating in Pittsburgh, the new ordinance necessitates reevaluating pre-employment and workplace drug testing policies. Employers should implement clear processes for identifying medical marijuana cardholders. After conditional job offers, employers should ensure that safety-sensitive positions are properly classified and update their policies to reflect the ordinance’s testing limitations. 

    Failing to comply with these new regulations can expose employers to potential legal risks, including discrimination claims. This adds another layer of complexity to already intricate employment law compliance requirements. 

    How GMS Can Help 

    Navigating changing employment laws, particularly around medical marijuana, can be challenging for employers. At GMS, we understand how complex it is to stay compliant with constantly changing local and federal regulations. Our team of experts can help you develop HR policies that align with the new Pittsburgh ordinance, ensuring your business remains compliant while ensuring a safe and productive work environment. 

    Whether your business needs assistance with pre-employment procedures, policy development, or ongoing employee management, GMS can provide the tailored support you need. We take care of the administrative and compliance burdens so you can focus on growing your business. Contact GMS today to learn more about how we can help you adapt to these new regulatory changes. 

  • Employers must stay ahead of evolving employment laws to ensure compliance and adaptability. One of the latest regulations impacting employers is Los Angeles County’s Fair Chance Ordinance (FCO). The ordinance, which took effect on September 3rd, introduces strict rules for criminal background checks that are more stringent than those at the state or city level. Compliance with these rules is essential, as failure to do so can result in significant penalties. 

    What Is The Fair Chance Ordinance? 

    The FCO applies to employers located in or doing business in the unincorporated areas of Los Angeles County. If your business employs five or more workers, including temporary staff, contractors, or freelancers, and operates within these areas, you are subject to the FCO’s rules. This ordinance aims to provide opportunities for individuals with criminal histories by regulating how employers handle job postings, offer letters, and hiring procedures. 

    Key Requirements For Employers 

    Employers subject to the FCO must make several changes to their hiring and employment practices, including: 

    • Job postings: Employers cannot discourage candidates with a criminal history from applying. Instead, they must explicitly state that applicants with arrest or conviction records will be considered, in compliance with both the FCO and California’s Fair Chance Act (FCA). Additionally, employers must list any specific laws or regulations that may prevent them from hiring individuals with a criminal background. 
    • Offer letters: Employers are prohibited from asking about criminal histories until a conditional offer of employment has been made. If a background check is required, the offer letter must outline all the background checks that will be conducted, such as education, employment history, or social media activity. 
    • Consideration of criminal history: The FCO prohibits employers from inquiring about specific types of criminal records, including arrests not followed by conviction, sealed or expunged convictions, and convictions that are more than seven years old. Any adverse action based on criminal history must involve an individualized assessment and proper notification to the applicant. 
    • Adverse actions: If you intend to take an adverse action based on criminal history, you must provide the applicant with a written assessment of how their criminal record relates to the job. You must also give the candidate time to respond to this preliminary decision before finalizing any adverse action. 

    Penalties For Non-Compliance 

    The consequences for failing to comply with the FCO are severe. Fines range from $5,000 for the first violation to $20,000 for subsequent violations, and these penalties are assessed per violation. Beyond fines, the county’s Department of Consumer and Business Affairs may recommend the suspension or revocation of your business license. Additionally, employees can file complaints with both the county and the California Civil Rights Department if they believe their rights have been violated. 

    How GMS Can Help You Navigate Compliance 

    Navigating the complexities of the FCO can be overwhelming, especially when you consider that regulations vary across California’s different regions. Fortunately, GMS is here to support your business. Our HR and compliance experts, particularly those familiar with the Los Angeles area, are well-versed in local, state, and federal laws. We offer comprehensive services to ensure your hiring processes and policies fully comply with the FCO and other relevant regulations. 

    Here’s how GMS can help: 

    • Policy reviews and updates: We can audit your current hiring practices, job postings, offer letters, and record retention policies to ensure they meet FCO requirements. 
    • Custom compliance solutions: Whether you need to update your background check procedures or implement proper documentation for individualized assessments, our experts can help you create tailored solutions that align with the FCO’s rules. 
    • Training and education: GMS offers training programs for your HR team to stay informed about the latest legal requirements, including how to handle criminal background checks under the FCO and FCA. 
    • Ongoing support: As new laws and regulations are introduced, GMS will keep you updated and ensure your policies are always current and compliant. 

    Stay Ahead Of Changing Regulations With GMS 

    Los Angeles County’s Fair Chance Ordinance is just one example of how rapidly employment laws can change. To avoid costly fines and protect your business, it’s essential to stay proactive. At GMS, we provide the expertise and resources needed to help businesses comply with complex regulations, so you can focus on what matters most; running your company. Contact our team today to learn more about how we can assist you! 

  • As we move into the fourth quarter of the year, U.S. employers remain optimistic about hiring trends. Despite global economic uncertainties, the labor market has shown resilience, with unemployment and layoffs staying relatively low across many regions. Jonas Prising, the CEO of ManpowerGroup states, “The global labor market is holding steady as we move into the fourth quarter, with relatively low unemployment and layoff activity in many countries.” 

    This positive hiring outlook creates opportunities for businesses, but it also presents new challenges, especially when it comes to finding the right talent and ensuring workplace safety. The U.S. Department of Labor (DOL) has recently announced $12.7 million in grants awarded to 102 nonprofits nationwide. These funds are aimed at promoting education and training initiatives that foster safer working environments. 

    At GMS, we understand the dual importance of recruitment and safety. As businesses strive to grow, it’s crucial to not only bring in the right people but also maintain a secure workplace for all employees. Here’s how our recruitment services and risk management services can help your business succeed in Q4 and beyond: 

    How GMS Can Support Your Hiring Needs 

    Our recruitment services are designed to simplify the process of finding top talent, saving you time and resources. Whether you’re seeking temporary workers, full-time employees, or specialists, our team works closely with you to understand your unique needs and source qualified candidates. With the U.S. labor market in good shape, now is the time to optimize your recruitment strategy to ensure you’re hiring the right people to drive your business forward. 

    In addition to our recruitment services, GMS offers guidance on maintaining compliance with safety regulations. The recent grants from the DOL highlight the growing importance of workplace safety, and GMS can assist your company in navigating these requirements.  

    The Importance Of Workplace Safety 

    Workplace safety is not just about compliance; it’s about protecting your employees and ensuring your business runs smoothly. Safer workplaces lead to higher employee morale, reduced injury-related downtime, and lower costs related to accidents or legal issues. By partnering with GMS, we help you foster a culture of safety while providing the tools and resources to support employee well-being and reduce risks. 

    Why Partner With GMS? 

    With the positive hiring outlook and new initiatives to promote workplace safety, businesses need a partner who can help manage these areas effectively. At GMS, we’re more than just a service provider: we’re your partner in growth. Our recruitment solutions are tailored to meet the specific needs of your industry, while our safety services ensure you remain compliant with regulations that keep your employees safe. Let us handle the complexities of hiring and safety so you can focus on what matters most: growing your business. 

    As the fourth quarter approaches, it’s a perfect time to reevaluate your hiring and workplace safety strategies. Whether you’re looking to expand your team or enhance workplace safety, GMS is here to help your business thrive. Reach out to us today to learn how we can make your business simpler, safer, and stronger! 

  • No matter the size of your company, effectively managing human resources (HR) is essential for business success. But as your company and workforce grow, managing and scaling your HR efforts can become more difficult. From recruiting the right candidates to maintaining employee satisfaction, proper HR management can take a lot of time and energy away from running your business. That’s why we’ve compiled a list of strategies to help you adapt your HR efforts to your business growth.  

    Assess Current HR Needs And Future Growth 

    Before you start making changes to your HR processes, it’s crucial to evaluate your current HR tools, needs, and processes. By identifying what is working well and what needs improvement, you can update your processes and make updates that align with your future goals and objectives. For example, if you are experiencing a high turnover rate, it might be time to reassess and update your current recruitment and hiring strategies. This can involve conducting exit interviews, revising interview questions, or updating job descriptions. These reviews can lead to more actionable improvements and potentially reduce your turnover rate.  

    It’s also important to identify what your company’s needs will be in the future. By considering your growth trajectory and estimating the number of employees you’ll need in the coming years, you can better plan for future hiring and recruitment efforts. 

    Invest In HR Technology  

    In today’s business environment, streamlining workflows and managing employees can be challenging without technology. One effective way to enhance your company’s HR efforts is by investing in and implementing HR software. A cloud-based human resources information system (HRIS) allows you to effectively manage processes such as payroll, benefits administration, performance management, and leave management all in one place. Utilizing HR technology significantly improves operational efficiency, reduces the chance of manual error, helps you manage your growing workforce, and saves you time, allowing you to focus on developing more strategic HR initiatives.  

    Another way to adapt your HR initiatives to your growing company is by implementing an employee self-service portal. By providing employees with a self-service portal for tasks like updating their personal information, accessing their pay stubs, and requesting time off, you can empower your employees to take charge of their information while reducing the HR workload. The portal also provides employees with the flexibility to manage their information and complete tasks on their own time.  

    Focus On Data Protection And Compliance  

    As your company grows, the volume of sensitive employee data increases. To prevent data breaches and ensure compliance, it’s essential to invest in security measures. This can include implementing multi-factor authentication, single sign-on, and providing employee cybersecurity training. 

    Additionally, staying updated on the latest labor laws and regulations is critical. As your workforce grows, the risk of noncompliance rises, potentially leading to costly fines and penalties. To avoid these, it’s vital to train your workforce on proper procedures and policies. 

    Provide Training And Support 

    As your company expands, training your workforce becomes increasingly crucial. Training and reskilling your employees not only increases their satisfaction and productivity but also contributes to your company’s long-term success. Employee training programs can enhance morale by making employees feel valued and prioritized. Continuous support throughout their tenure will improve their performance, strengthen your company’s reputation, and simplify HR management for your team. 

    GMS: The HR Solution 

    Whether your company is growing steadily or rapidly, effective HR management is key to long-term success. Regularly monitoring key HR metrics such as employee turnover, time-to-hire, and employee satisfaction helps identify areas for improvement. As a business owner, it’s important to be open to feedback and continuously seek ways to optimize your HR processes and tools to support your company’s growth. Scaling HR tools effectively is essential for small to midsize companies aiming for sustainable growth. However, managing this process alone can be challenging. That’s where Group Management Services (GMS) comes in. 

    GMS is a professional employer organization (PEO) that helps business owners reduce the administrative burden of running a business and effectively manage HR and recruitment efforts. With our HR software, learning management system (LMS), employee performance management services, and the expertise of our HR professionals, we can simplify and strengthen your HR processes, allowing you to focus on growing your business. Contact us today to learn more!