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  • A federal judge has blocked the upcoming Department of Labor (DOL) overtime rule instituted by the Obama Administration. The rule was set to take effect Dec. 1, 2016, increasing the salary threshold for overtime eligibility from $23,660 to $47,476. This would have made any workers under the threshold eligible for overtime pay for over 40 hours worked per week. 

    Image of a judge. Read about how a federal judge has blocked the new overtime rules.

    According to Reuters, “U.S. District Judge Amos Mazzant, in Sherman, Texas, agreed with 21 states and a coalition of business groups, including the U.S. Chamber of Commerce, that the rule is unlawful and granted their motion for a nationwide injunction.”

    The group was granted a nationwide preliminary injunction, meaning they were able to prove that the law would cause “irreparable harm” to employers.

    “The judge said the Labor Department regulation exceeded the authority granted it by Congress, which he said gave Labor the right to define which workers are considered salaried but only based on the duties they performed, not by how much they made,” according to The Washington Times. 

    The DOL estimated there would have been approximately 4.2 million workers affected by the new law. Business owners would have been forced to reevaluate their current workforce to meet the requirements. 

    The Labor Department issued a statement regarding the decision stating, “We strongly disagree with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans.”

    The DOL has the ability to appeal this decision, but the incoming administration can then drop any appeal of the ruling.

    One way employers can assure they are keeping up with any changes to the law or other upcoming legislation is by working with a Professional Employer Organization like Group Management Services. We take on the administrative burden, so you can focus on what matters. Contact us today to learn more.

  • You’re likely familiar with the saying, “If it ain’t broke, don’t fix it.” While this mindset can be beneficial in some areas of your business, it doesn’t quite fit when it comes to HR processes and policies. The landscape of federal, state, and local regulations is constantly evolving. Sticking to your status quo, even if it once met legislative requirements, could leave you non-compliant and expose your business to potential risks.

    In addition, technology advances quickly, and the systems that once seemed to streamline your operations might now hinder your efficiency or create unnecessary headaches for you and your team. This is where professional employer organizations (PEOs) can be of use. PEOs offer several advantages, particularly to small and medium-sized enterprises (SMEs) who may need more comprehensive in-house HR, payroll, compliance, and employee benefits management resources.

    While the temptation to stick with what’s familiar is understandable, embracing change, especially in HR, can significantly elevate your business’s efficiency and compliance. Partnering with a PEO can transform your HR department from a purely administrative function to a strategic asset. By offloading the administrative burdens that come with HR, you and your team can refocus on core business strategies and growth initiatives.

    The Benefits Of Partnering With A PEO

    PEOs can often provide services at a lower cost than if you were to handle these functions in-house. By pooling together employees from multiple companies, PEOs achieve economies of scale, allowing them to negotiate better rates for health insurance, workers’ compensation, and other benefits for your team. Often, these benefits are on par with Fortune 500-level companies and can assist with your recruitment and retention efforts. In addition, partnering with a PEO can help:

    • Ensure compliance: PEOs employ professionals with expertise in HR, benefits, payroll, tax compliance, and risk management. Partnering with a PEO gives you access to these experts, who can be invaluable for making informed decisions about your workforce and business strategy, all while ensuring your compliance with federal and local regulations.
    • Offer HR management and support: PEOs provide comprehensive HR services, including recruitment, onboarding, performance management, and employee termination. This support can relieve your internal team of these duties, allowing them to focus on other areas of your business.
    • Boost employee performance and satisfaction: Employees often experience better HR support with PEOs as they can offer more timely resolution of issues and access to a broader range of benefits. This can lead to increased employee satisfaction and productivity.
    • Provide flexibility for growth: As your business grows, a PEO can quickly scale its services to accommodate new employees, enter new markets, or adjust to changes in your business model. This flexibility is particularly beneficial for rapidly growing companies that need to focus on scaling operations without being bogged down by administrative tasks.

    According to the National Associations of Professional Employer Organizations (NAPEO), businesses in a PEO arrangement grow 7-9 percent faster, have 10-14 percent lower turnover, and are 50 percent less likely to go out of business. While the temptation to “stay with what’s familiar” may be strong, today’s business landscape demands agility and a proactive approach to HR management.

    By partnering with a PEO, you not only safeguard your business against compliance risks but also position it to thrive in an ever-changing market. This strategic move can be the difference between merely surviving and truly flourishing in your industry.

    Partnering With A PEO

    While partnering with a PEO might sound like a good decision, you might still be concerned about what that partnership actually means. When you start working with a PEO, you enter a co-employment agreement; this essentially allows the PEO to handle your payroll and benefits. However, you remain in complete control of your business, managing the day-to-day and making all the critical decisions related to your company.

    While PEOs speed up and streamline the hiring process by finding qualified candidates for you to meet, at the end of the day, you choose who joins your team. Your relationship with a PEO is designed to be collaborative. The co-employment model used by PEOs does not diminish your authority or ability to manage your team. Instead, it provides a support structure, enhancing your capabilities to focus on other business areas.

    Embrace Change With GMS

    Getting started with a PEO can feel daunting, but GMS makes it easy. Today, business owners need to be compliant with a multitude of regulations in regard to:

    Whether you’re seeking support in one specific area or need comprehensive assistance across all these critical functions, GMS stands ready to elevate your business. Our team of experts is dedicated to making your operations smoother, ensuring your workplace is safer, and fortifying your company against the challenges of tomorrow. Don’t let the complexity of HR and compliance slow you down.

    Contact us today to discover how we can transform your business into a simpler, safer, and stronger entity. Let us take the burden off your shoulders so you can focus on what you do best—growing your business.

  • You need to identify problems before you can fix them. Inefficiencies, non-compliance, and other issues with HR policies can hurt your business, especially when you’re not sure why they exist. Fortunately, you don’t need a private-eye to get to the bottom of this mystery. What your company could use is a good human resource audit.

    Professional Employer Organizations can perform HR audits and provide recommendations on where you can improve. Here are three reasons why it might be time for your business to undergo an HR audit.

    Image of a frustrated owner. Human resource audits can help uncover sources of stress and strengthen your business.

    You’re Worried About Compliance

    Whether you’re not sure if your business is compliant or you know that there are lingering compliance issues, an audit can help. There are dozens of HR components and non-compliance can lead to costly fines. An HR audit will help uncover any compliance issues and help you take steps to fix them.

    There’s Miscommunication Between Departments

    Since there are several HR components, it can be easy to lose track of them and develop deficiencies in certain areas. This can lead to a lack of communication with various business departments. An audit can help get your business and its employees back up to speed on the state of your company’s HR.

    I’m Spending Way Too Much Time

    HR audits help businesses uncover more than just issues within human resources. As a business owner, you may be taking the lead on managing your company’s HR. Unfortunately, you may be spending so much time on it that it’s hurting your ability to focus on other areas of your business. An HR audit can help you discover more efficient and effective ways to manage human resources so that you can work on growing your business instead.

    Schedule a Human Resources Audit

    Business owners may be experts in their fields, but they’re not always able to effectively manage HR for their companies. Group Management Services can perform HR audits to analyze your business for compliance, best practices, strategy, and other specific functions. A dedicated HR specialist will then provide you with a comprehensive report and provide any recommendations on how you can improve internal processes and strengthen your business. Contact GMS today to schedule an HR audit today.

  • Most entrepreneurs start a business based on something they are passionate about. For the majority of auto shop owners, their dream started working on cars. When that passion turns into a business venture, it quickly becomes apparent that running your own auto shop requires more than just a love of cars.

    Leading a group of people, keeping systems in place to track hours, and tracking employee history are just a few of the tasks that shop owners handle on an everyday basis. Owners have enough on their plate in handling day-to-day business, but the work is not done when the shop closes. Here are some of the most common HR issues facing these small business owners.

    Image of an auto repair employee. Contact GMS about human resources help for the auto industry.

    Employee Recruitment and Retention

    Through the combination of an aging workforce and a lack of good, young workers, an inevitable skills shortage looms near. As the industry grows with technological advancements driving consumer demand, the need for quality employees is greater than ever, but younger workers are shifting away from a career path as an auto technician.

    According to the U.S. Bureau of Labor Statistics, “more than 237,000 jobs are expected to open up in the automotive repair field between 2014-24.” With a large volume of auto techs retiring in the coming years, and a lack of skilled replacements entering the industry, there is a huge emphasis on recruiting and retaining quality workers. 

    Record Keeping

    Documentation is an often overlooked aspect of running any business. Shop owners must have detailed manuals setting the expectations of the position. These documents must be updated every year to make sure you are keeping up to date with any changes in the industry. 

    If you fail to provide this information to employees, it is difficult to hold them accountable. Throughout their employment, you must keep detailed records of their employment history, including any disciplinary actions taken throughout their time with the company. Should their actions require termination, you will have all of the information in their employee file to help protect your company from any claims of wrongful termination or other legal action. 

    According to the Hiscox Employee Lawsuit Handbook, “19% of employment charges resulted in defense and settlement costs averaging a total of $125,000.” The time and money associated with these potential lawsuits only further support the need to document everything.

    Compliance

    Automotive technicians face a much higher volume of potential workplace hazards than employees in most other industries, therefore the Department of Labor and the Occupational Safety and Health Act has stringent workplace standards for employees. 

    The use of tools and machinery, as well as toxic chemicals, creates an environment that justifies regulation. OSHA breaks down the primary risks stating, “Chemical hazards may include volatile organics from paints, fillers and solvents; diisocyanates, polyisocyanates, and hexavalent chromium from spray painting operations; silica from sandblasting operations; dusts from sanding; and metal fumes from welding and cutting. Physical hazards include repetitive stress and other ergonomic injuries, noise, lifts, cutting tools, and oil and grease on walking surfaces.”. A list of the most common citations can be found here.

    Partner with a PEO

    Many shops across the country are turning to Professional Employer Organizations to handle all of these Human Resource functions, so owners can focus on the business. No more late nights in the office running payroll, reviewing candidates, and updating handbooks. Contact GMS today to see how we can make your business simpler, safer, and stronger!

  • The trucking industry has played a significant role in the industrial development of the U.S. over the past century, providing a link from manufacturers to consumers. Over that time, there have been major advancements in everything from our interstate highway system, to governmental safety regulations, to the tractors and trailers themselves.

    Today, the transportation industry faces several challenges, many of which are related to consistent changes in the regulatory environment. The American Transportation Research Institute released a report in October of 2015 that listed the top 10 issues facing the trucking industry. The top three (in order) were Hours of Service Regulations, the Compliance, Safety, Accountability (CSA) Program, and Driver Shortage.

    Image of a truck on the highway. Contact GMS about how a PEO can help transportation companies with HR functions.

    Hours of Service

    For the third year in a row, the ATRI report has listed HOS rules as the top issue facing the transportation industry. There have been several changes and adaptations of these regulations over that time. 

    The Federal Motor Carrier Safety Administration (FMCSA) states, “You must follow three maximum duty limits at all times. They are the 14-hour “driving window” limit, 11-hour driving limit, and 60-hour/7-day and 70-hour/8-day duty limits.”

    What this means is that a driver can only drive 11 hours in a 14-hour “driving window.” The driving window includes any stops or non-driving activities in that window and must include a 30-minute break after eight consecutive hours of driving. Once that window is up, it must immediately follow with 10 consecutive hours off. 

    The second part of that equation is the 60-hour/7-day and 70-hour/8-day duty limits. If the company does not operate vehicles every day of the week, the cutoff is 60 hours driven in 7 days, and 70 hours driven in 8 days if the company operates 7 days a week. All of this information is now tracked through government mandated electronic logging devices (ELDs) for all professional truck drivers and commercial motor carriers. 

    This has caused a perceived lack of flexibility and limits the production of this already under-manned workforce. 

    Compliance, Safety, and Accountability 

    According to the FMCSA, the CSA is an “initiative to improve large truck and bus safety and ultimately reduce crashes, injuries, and fatalities that are related to commercial motor vehicles.”

    The primary tracker for this initiative is the Safety Measurement System (SMS), which measures the performance of drivers and carriers based on seven Behavioral Analysis and Safety Improvement Categories (BASICs). The seven categories are Unsafe Driving, HOS Compliance, Driver Fitness, Controlled Substances/Alcohol, Vehicle Maintenance, Hazardous Materials Compliance and Crash Indicators.

    The ATRI report disputes the effectiveness of these measurements being good predictors of crash risk. The report goes on to indicate inconsistencies in how this information is gathered and tracked from state to state, indicating a system that may need to be re-evaluated. 

    Driver Shortage

    According to a 2015 report by the American Trucking Association, the estimated driver shortage is currently 48,000. There are believed to be several factors affecting the shortage in drivers, along with the regulations discussed above. Long hours, fair compensation, high turnover rates, and time away from loved ones are just some of the factors that have made it difficult for the industry to hire and retain drivers. 

    Conclusion

    The trucking industry is not going away any time soon, as the demand of these services far outweighs the supply of current operators. Owners are facing greater challenges than ever before. Working with a PEO like GMS can take a lot of these issues off their plate and allow them to focus on the business. Contact GMS today to learn more about our HR services and how we can make your business simpler, safer and stronger. 

  • Why did you start your business? Maybe because you are good at doing something. Maybe because you can offer a service that not many others can.

    You worked hard to grow your business, to show everyone why they should use your company for their needs. You are a professional, and nobody knows your business better than you do. So why would you ever consider outsourcing back office tasks to a PEO if you can do them yourself?

    At the end of the day, we all want the same thing: to be successful. Sometimes, to succeed we need to embrace the fact that we can’t always do everything ourselves.

    Image of a human resources outsourcing company.

    Why it Can Pay to Outsource to a PEO

    PEO stands for Professional Employer Organization. Just like you are a professional in your industry, GMS is a professional in ours. If you care about your business and your employees, you want to make sure that your company is a well-oiled machine! That’s why our team of well-versed, educated, and honest specialists help small to mid-sized businesses thrive every day.

    We believe that just because you don’t have thousands of employees doesn’t mean you shouldn’t have access to the same buying power or experts!

    As a business owner, doing everything yourself can be overwhelming, especially when you find that some areas are getting neglected or are distracting you from the business.

    By outsourcing basics like payroll management, workers’ compensation claims, benefits administration, and any human resource function to GMS, you can acquire better, less expensive services than if you were to go hire an individual to do that for you.

    A PEO can help you go back to focusing on your business knowing that these things aren’t just being done, but that they’re being done right. Contact us today to talk to a GMS representative about how we can help you and your business.

  • As your business grows, so will your team. Adding new employees is a big part of any business, but it can be a problem if you hire new people when your business isn’t ready to take on more staff. Here are some things you should think about when you’re considering hiring additional employees.

    Image of a new hire. Learn about hiring tips from GMS.

    Good Timing

    Before you go and start hiring people, you should ask whether or not it’s a good time to do so. The hiring process can take weeks, so it’s important to time up new additions to the team. If you’re looking to fill a position right away, start your search now. If you want to time it up with a seasonal change or so that you aren’t training right during busy season, adjust your hiring search appropriately.

    Money

    Once you’ve determined that it’s a good time to hire new employees, you should think about how this move will affect you financially. An important factor to consider is if you can afford to hire someone. If you don’t have it in the budget to do so and there aren’t any indicators that business is trending up, it may not be in the cards to hire at that moment. However, if you can justify that bringing in additional help can drive revenue, then hiring is still an option.

    There are also some hidden costs of hiring that you may not expect, such as the time you’ll have to invest in employee interviews and training for new hires. You’re going to want to spend enough time finding and developing the right team, so make sure that you’re prepared to set some time aside to do so.

    Promote or Hire?

    Not all hires need to be done outside of the company. Depending on the opening, it may be beneficial to promote someone else at the company if they’re qualified and willing. This can lead to lower hiring costs and less time dedicated to training. However, some positions may not be easily filled without outside applicants. Consider each position and see which approach best fits your business’ needs. 

    Are Your HR Functions in Place?

    Growing a business is exciting, but it can also lead to more HR responsibilities. That’s why Professional Employer Organizations like Group Management Services offer ways to work with you to strengthen your HR functions while your business grows. Contact GMS today to talk with one of our experts about employee training and recruiting and other important services.

  • The United States Construction Industry is sure to face some changes in the coming year, with the change of leadership and direction of the country. Regardless of your position, there has been a push for investment in this country’s infrastructure on both sides of the aisle.

    President-elect Trump has mapped out a $1 trillion infrastructure plan with the help of Economic Advisors Peter Navarro and Wilbur Ross. They have broken down a 10-year plan, with the focus of funding coming from private entities. The idea is for these revenue generating projects (i.e. Utilities, toll roads, airports…etc.) to provide tax credits to the private investors to be counterbalanced by the employee and company taxes generated from these projects.

    All parties have agreed on the need for investment into our infrastructure, which in turn, should generate more jobs in the construction industry across the country. That being the case, there are HR issues that need to be addressed through the industry to aid in this growth.

    Image of a construction worker. Contact GMS for help with HR issues in the construction industry.

    Top Issues Facing the Construction Industry

    1. Recruitment: According to a 2016 National Survey by the Associated General Contractors, two-thirds of contractors are having a difficult time finding qualified craft workers to keep up with the demand.
    2. Workers’ Compensation Costs: In this high risk industry, employers are finding it difficult to maintain reasonable premiums for workers’ compensation coverage. In March of 2015, workers’ compensation costs comprised 3 percent of overall compensation versus a 1.4 percent average for all occupations.
    3. Safety: In 2014, 1 in 5 U.S. work related fatalities across the country were in the construction industry, at an average rate of over 13 deaths per day. 
    4. Worker Classification: There has been a trend of companies misclassifying workers as independent contractors to avoid having to pay Overtime, Federal Unemployment, as well as Social Security and Medicare Taxes. The penalties include the Department of Labor being able secure unpaid wages, penalties for failure to withhold taxes, as well as other punitive damages.

    Many employers do not have the time or resources in order to effectively manage all of these areas. One way you can help combat these issues is by outsourcing all of your HR functions to a Professional Employer Organization. At Group Management Services, we have the experts to help make sure you are protected. Whether it is through recruiting, risk management, or competitive benefits plans, we have the ability to make your business simpler, safer, and stronger. Contact GMS today to learn more!  

  • It’s common for HR professionals to field questions about compliance and discrimination concerns. One question that some small business owners ask is how LGBT and gender requirements can impact their company. There are many laws and protections in place to prevent discrimination based on gender identity or sexual orientation that employers should know about.

    LGBT and Gender Discrimination Laws and Protections

    To start, The U.S. Equal Employment Opportunity Commission (EEOC) is in charge enforcing federal laws that make discrimination illegal. This means that the EEOC “interprets and enforces Title VII’s prohibition of sex discrimination as forbidding any employment discrimination based on gender identity or sexual orientation. The protections apply regardless of any contrary state or local laws.”

    The courts have held that Section 4112 of the Ohio Revised Code does not apply to sexual orientation. However, there have been state and federal government actions that do offer Ohio employees some protections from discrimination. 

    Gov. John Kasich used Ohio Executive Order 2011-05K to declare that persons employed by the state would not be discriminated against based on their sexual orientation in matters of hiring, layoff, termination, transfer, promotion, demotion, or rate of compensation. Former Gov. Ted Strickland also issued Executive Order 2007-10S that prevented the discrimination based on gender identity. In addition, former President Barack Obama signed Executive Order 13672-2014, which prohibits federal contractors and subcontractors from discriminating against others based on both sexual orientation and gender identity.

    Additional protections against discrimination involve insurance coverage. According to HealthCare.gov, “An insurance company that offers health coverage to opposite-sex spouses must do the same for same-sex spouses.” Insurance companies can’t discriminate against same-sex couples who are legally married in a jurisdiction that can authorize the marriage. This is the case regardless of the state where the couple lives, where the insurance company is based, and where the plan is sold, renewed, or in effect.

    Potential Transgender Workplace Issues

    Aside from hiring, layoff, termination, transfer, promotion, demotion, or rate of compensation decisions, there are other potential issues that employers should consider for transgender employees. For instance, the state of Ohio allows a transgender person to change their name and employers must accept this change.

    Another issue involves company bathrooms. According to Obergefell and LGBT Employment Law, “If fellow employees do not want the transgendered person, either before her gender transformation or during it, to use their bathroom, the employer must still offer the transgendered employee a bathroom. There is no law to force employers to honor the new gender for bathroom assignment. The best practice is to have the transgendered person use the bathroom that is identified with her gender identity and tell employees who do not want to share with her to use an alternate bathroom.”

    Preventing LGBT and Gender Discrimination Claims

    Over the years, the EEOC has received “1,412 charges that included allegations of sex discrimination related to sexual orientation and/or gender identity/transgender status.” Examples of LGBT-related sex discrimination claims include failing to hire an applicant because she’s transgender or harassment of an employee because of their sexual orientation or gender identity.

    Of those 1,412 charges, the EEOC resolved 1,135 of them, leading to employers paying out $3.3 million in monetary relief for the affected workers and to make changes to prevent future discrimination.

    As discrimination laws continue to evolve, it’s crucial that business owners make sure that they are following every regulation in place to prevent discrimination in the workplace. A Professional Employer organization can provide human resource management to make sure your business is following all the necessary laws and that any important internal documents, such as your employee handbook, are updated 

    for any changes in LGBT and gender discrimination laws and protections. Contact us today to talk to one of our experts about how we can help your business today.

  • Employee retention is a significant area of focus for most  business owners. According to talent management and HR site ERE Media, “78 percent of business leaders rank employee retention as important or urgent,” showing that the average owner wants to avoid losing good talent. 

    There are many reasons why an unexpected departure can prove problematic for employers. It can disrupt workflow. It can have a negative impact on chemistry. Also, it can cost up to 50 percent of an entry-level employee’s annual salary to find someone to replace your outgoing employee. That’s a pricey goodbye.

    Retention is a big issue that many employers want to address before their company turns into a revolving door for talent. Fortunately, Professional Employer Organizations can help your business improve employee retention. Here’s how.

    Attract the Right Employees

    Excited about a new employee you just hired? There’s a chance that he or she might not stick around for too long. The Society for Human Resource Management cited a study in which one-third of new employees left their jobs within six months.

    An important part of retaining employees is to find the right people  from the start. Rushing through the hiring process or settling on a candidate can lead to personnel who just don’t fit your company. A PEO has a dedicated group of experienced recruiters on staff that can manage every step of the hiring process to ensure that you put your business in the best position to hire the right candidate. This includes the initial phone interview, background screening, and other services, while the employer still retains control of final hiring decisions. 

    Utilize Employee Training and Onboarding Programs

    Once you hire someone, you should put them in the best position to succeed. That includes proper onboarding and training. According to SHRM, “66 percent of companies with onboarding programs claimed a higher rate of successful assimilation of new hires into company culture, 62 percent had higher time-to-productivity ratios, and 54 percent reported higher employee engagement.”

    That initial amount of time spent to  integrate your new worker into the company can help them understand their roles and feel at home. A PEO can help your business set up proper training programs to ensure the employee is set up for success in their current career path.

    Make the Business More Desirable to New and Current Employees

    A well-trained employee is a great start. Now you have to make sure that they don’t get entranced by what they see as greener pastures. A SHRM survey shows that 60 percent of employees view their benefits package as a major contributor to their overall job satisfaction. 

    Without the right package in place, your business may be at risk of losing top talent. A PEO can help you institute 401k and benefits plans that can add even more value to your employees’ current positions, as well as add extra incentive for potential job candidates.

    Focus on Growth with a PEO

    Investing on employee retention strategies is an important way to keep your team strong and retain new talent. However, proper hiring, training, and benefits packages are all time-consuming endeavors, especially for people with little-to-no training in those fields. With a PEO, that isn’t a problem.

    A PEO can manage important services like employee training and recruiting and benefits administration, allowing you to focus your time on growing the business. This growth makes the employer even more desirable to current employees and potential candidates. Contact GMS today to talk to one of our experts about what we can do help your business with employee retention.