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  • As more states across the U.S. legalize cannabis, its presence in the workplace has become a pressing issue for employers. States such as Colorado, Ohio, New York, New Jersey, and many others have legalized cannabis for recreational use, while even more have legalized it for medical purposes. As a business owner, this legalization presents a new set of challenges for maintaining workplace safety and compliance with employment laws.

    The primary concern centers on ensuring your workforce is unimpaired while on the job, especially in industries where safety is paramount, such as transportation, health care, and construction. As you can’t dictate what an employee does off the clock, adapting your business policies to prioritize sober working is crucial.

    Creating these policies is no small task; given the ever-changing legal landscape and the variations in laws across different states, any policy implemented today will likely require future updates and refinements to keep pace with ongoing changes. However, creating internal policies should still be a priority as it can safeguard your business against discrimination or wrongful termination suits if any incidents occur. To help you get started, we’ve compiled essential information to formulate a policy that suits your business needs and ensures compliance with local and federal regulations.

    Understanding Cannabis And Its Effects

    Cannabis or marijuana, primarily known for its psychoactive and medicinal properties, contains several compounds, with tetrahydrocannabinol (THC) and cannabidiol (CBD) being the most significant. Recreational cannabis has THC and CBD; the THC is the primary psychoactive component known for its ability to impair cognitive and motor functions, affecting decision-making, reaction times, and coordination. Separately, medical cannabis is stripped of the THC while keeping the CBD non-psychoactive and highlighted for its potential therapeutic benefits, such as reducing inflammation and anxiety without causing a “high.”

    The effects can vary depending on the individual, method of consumption, potency, and personal tolerance. However, typically, the impairment from smoking cannabis can last several hours, while edibles, which take longer to metabolize, can be delayed and last significantly longer. Understanding these variances is crucial for employers and employees to make informed decisions about consumption during personal time.

    Developing Workplace Policies

    As an employer, it’s essential to balance both the rights of employees who use marijuana legally outside of work and your ability to maintain a safe work environment. This can include implementing policies that prohibit working under the influence of marijuana, even if used off-duty. However, you must check your local and state laws to remain compliant when crafting your drug policies.

    In some states, such as Illinois, where cannabis has been reclassified as a “lawful product,” you’ll need to be mindful not to break the state’s Right to Privacy in the Workplace Act, which prohibits employers from discriminating against employees for off-duty “use of lawful products.”

    Despite the complexities of these differing state laws, you can still develop policies that safeguard your employees and minimize the risk of accidents. Your policies should clearly and fairly outline your stance on cannabis to prevent impairment in the workplace. In addition, it should clearly define the consequences of policy violations to ensure that all team members understand the seriousness of compliance. Having a detailed policy that includes possible repercussions can help safeguard your business in the event of a violation that leads to a termination of employment.

    In addition to developing comprehensive policies, it’s critical to train your team to ensure effective implementation. These policies should also be easily accessible to your staff for review whenever necessary. Including them in an employee handbook is an ideal start, as it’s often the most centralized resource for employees to find company information.

    Testing And Monitoring

    Unlike alcohol, cannabis can stay in an individual’s bloodstream for 30 days and hair for up to 90 days or longer for regular consumers. This means drug tests aren’t always reliable for determining active impairment. In addition, there is also no legally or medically accepted definition of what constitutes impairment for cannabis use, making it more difficult to accurately determine an employee’s non-compliance with your policies.

    However, there are a few signs you can look out for. If you carefully document instances over time, you should be protected from a wrongful termination suit if you end up needing to fire an employee due to non-compliance. These signs include:

    • Poor muscle or limb coordination 
    • Delayed reaction times and abilities 
    • Red eyes
    • Changes in speech or overall behavior
    • Negligent or carelessness while on the clock
    • Panic or anxiety

    While employees may have the right to use marijuana recreationally or medically in states where it is legal, employees are generally not permitted to be impaired at work, especially in safety-sensitive positions. This means business owners are well within their rights to enact policies and monitor employees to protect their teams and businesses.

    Prevention And Employee Assistance

    While implementing policies is a significant step in ensuring a safe work environment, establishing a healthy workplace culture that prioritizes safety is another way to help prevent injuries due to cannabis use. Positive cultures tend to have collaborative mindsets where teams and individuals work together towards common goals. This sense of shared responsibility not only boosts productivity and retention but also creates an environment where employees are motivated to perform at their best. This supportive atmosphere helps ensure that safety is a collective priority and can significantly reduce the risks of workers showing up with impaired functioning.

    In addition, offering employee assistance programs (EAPs) can help employees struggling with substance abuse issues. EAPs can help address employees’ personal issues by providing confidential and professional counseling; some even offer this service via phone, text, and email 24 hours a day, 365 days a year, to ensure your team can get the help they need.

    How GMS Can Help

    Professional employer organizations (PEOs), like GMS, can help with various tasks, including developing your HR policies and procedures and employee training. As a small business owner, you have a lot on your plate, and ensuring compliance with local and federal regulations can be complicated, stressful, and time-consuming.

    Additionally, GMS can help you offer employees the best health care benefits while reducing your overall costs. Traditional health care arrangements are no longer working. Whether your organization lacks an HR department or simply needs a resource to make more informed decisions about the management of benefits, GMS is here to help. GMS changes the approach to increase affordable options and give your employees access to small business health insurance.

    GMS takes the administrative burdens off your plate. Our team of experts ensures compliance, giving you peace of mind while saving you time and money. Contact us today to get started.

  • Earlier this week, the Federal Trade Commission (FTC) issued a final rule to ban noncompete clauses nationwide, and it is set to be a game changer for American workers and businesses. This bold move is aimed at promoting competition, protecting the freedom of workers to change jobs, fostering innovation, and encouraging new business formation.

    What Is A Noncompete?

    A noncompete agreement is used by companies to prevent employees who have access to sensitive or proprietary information from taking that information to a competitor or using it to start their own competing business. Companies often invest significant resources into training and developing their employees, so they want to protect that investment by preventing those employees from immediately going to work for a rival firm.

    The Impact Of The Ban

    The FTC estimates the ban on noncompetes will lead to a significant increase in new business formation, with more than 8,500 additional new businesses created each year. This is projected to result in a 2.7% annual growth in new business formation. In addition, the rule is expected to drive innovation, potentially leading to an average increase of 17,000 to 29,000 more patents each year for the next decade.

    Higher earnings and lower health care costs

    The ban is also anticipated to positively impact workers’ earnings, with the average worker estimated to see an additional $524 per year. Additionally, the rule is expected to lower health care costs by up to $194 billion over the next 10 years.

    Worker freedom and opportunity

    The ban on noncompetes is a crucial step toward ensuring that American workers have the freedom to pursue new job opportunities, start their own businesses, and bring fresh ideas to the market. By eliminating the barriers imposed by noncompetes, workers will have greater flexibility and autonomy in their careers.

    Impact On Workers

    Noncompete clauses have been widely criticized for keeping wages low, stifling creativity, and restricting the dynamism of the American economy. An estimated 30 million workers (one in five Americans) are currently subject to noncompetes. These clauses often force workers to either remain in undesirable jobs or face significant hardships and costs if they seek to change employment.

    Prohibiting Noncompetes

    Under the new rule, existing noncompetes for the vast majority of workers will no longer be enforceable. While existing noncompetes for senior executives can remain intact, employers are banned from entering into or attempting to enforce any new noncompetes, even for senior executives. Employers will be required to notify workers bound by an existing noncompete that it will not be enforced against them.

    Public Feedback And Final Rulemaking

    The FTC’s decision to ban noncompetes was informed by a substantial public comment period, which over 25,000 comments expressed support for the ban. The Commission reviewed each comment and adjusted the proposed rule in response to public feedback.

    Alternatives To Noncompetes

    The Commission identified alternatives to noncompetes that enable firms to safeguard their investments without resorting to noncompete agreements. These alternatives include trade secret laws and non-disclosure agreements (NDAs), which provide employers with established means to protect proprietary information. In addition, employers can compete for workers’ services by improving wages and working conditions.

    Finalizing The Rule And Ensuring Compliance

    The final rule allows existing noncompetes for senior executives to remain in force but prohibits the enforcement of new noncompetes with senior executives. Furthermore, the requirement for employers to formally rescind existing noncompetes has been eliminated to streamline compliance.

    The rule will become effective 120 days after publication in the Federal Register. Employers will be required to provide notice to workers constrained by existing noncompetes that these agreements will not be enforced in the future. To facilitate compliance, the Commission has included model language in the final rule for employers to communicate with workers.

    Once the rule is effective, market participants can report suspected violations to the Bureau of Competition by emailing noncompete@ftc.gov.

    Partner With GMS To Stay Up To Date

    Navigating the complex and ever-changing employment laws and regulations can be a significant challenge for many businesses. That’s where a trusted professional employer organization (PEO) like GMS can make all the difference for your company. By outsourcing HR functions to GMS, companies can ensure they remain compliant with the new rules such as the FTC’s ban on noncompetes while also benefiting from our comprehensive suite of services and expert guidance. With GMS in your corner, you can focus on growing your business. Reach out to our experts today!

  • The U.S. Department of Labor (DOL) announced a final rule, defining and eliminating the exemptions for executive, administration, professional, outside sales, and computer employees. This will take effect on July 1, 2024. The final rule updates and revises the regulations issued under section 13(a)(1) of the Fair Labor Standards Act (FLSA) implementing the exemption from minimum wage and overtime pay requirements for these employees.

    The revisions to the overtime exemption regulations include:

    • Increases to the standard salary level
    • Increases to the highly compensated employee total annual compensation threshold
    • A mechanism that provides for the timely and efficient updating of these earnings thresholds to reflect current earnings data

    Which Employees Are Exempt?

    Employees are exempt from the FLSA’s minimum wage and overtime protections if they are employed in a bona fide executive, administrative, or professional (EAP) capacity. To be within the EAP exemption, an employee must meet three tests:

    1. Be paid a salary, meaning they are being paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality of work performed.

    2. Be paid at least a specified week salary level.

    3. Primarily perform executive, administrative, or professional duties, as provided in the department’s regulations.

    The regulations also include an alternative test for certain highly compensated employees. These workers must be paid a salary, earn above a higher total annual compensation level, and satisfy a minimal duties test to qualify for the highly compensate employee exemption. This alternative pathway provides a different set of criteria for classifying highly paid workers as exempt from overtime requirements.

    Key Dates To Note

    The final rule will raise the standard salary level and the highly compensated employee total annual compensation threshold on two key dates. The first increase will take effect on the rules effective date July 1, 2024. A second set of changes for these thresholds will then become applicable on January 1, 2025.

    The final rule includes a mechanism for regularly updating these earnings levels every three years. This will ensure that the exemption criteria keep pace with the current salary data over time.

    Navigating Compliance With Labor Laws

    Staying on top of ever-changing employment laws and regulations can be a challenge for small to mid-sized businesses. That’s why GMS’ team of HR experts are here to help! We closely monitor regulatory updates and provide guidance to ensure our clients remain compliant. By partnering with GMS, small business owners can focus on growth and success while we handle the complexities of workforce management. Contact our experts today!

  • Handling the complexities of HR administrative duties is daunting for businesses of any size. From managing payroll to ensuring compliance with labor laws, the demands of HR management can quickly consume valuable time and resources, particularly for small to mid-sized businesses. However, partnering with a professional employer organization (PEO) can alleviate these burdens.

    A professional employer organization (PEO) enables businesses to outsource various aspects of human resource management, including payroll processing, benefits administration, workers’ compensation, and more. Through this partnership, you retain control over important decisions for your business, while the PEO handles administrative tasks to streamline operations and improve efficiency.

    The transition process to a PEO can be a pivotal moment in your business’s journey. This transition is essential as it will significantly impact your success to leverage the benefits of outsourcing HR functions. Thus, understanding and effectively managing this transition is crucial for maximizing the potential benefits of a PEO partnership.

    Understanding The Need For A PEO

    Many small business owners turn to a PEO to alleviate the stress of juggling numerous HR responsibilities on top of managing everyday operations. If you’re like many other small business owners wearing multiple hats, outsourcing your HR functions to a PEO can lead to a plethora of benefits for your business, including:

    • Saving money: Leveraging economies of scale, PEOS can negotiate better rates for services like health insurance, retirement plans, and other employee benefits. This strategic advantage enables PEO to provide cost-effective solutions tailored to your exact needs.
    • Access to HR expertise: PEOs employ seasoned HR professionals with expertise in various areas of HR management. By tapping into this knowledge pool, you can access strategic guidance, best practices, and personalized support for your business.
    • Compliance assistance: Staying compliant with federal, state, and local employment laws is crucial for businesses of all sizes. PEOs specialize in navigating complex regulatory frameworks, providing ongoing guidance and support.
    • Risk mitigation: PEOs can help reduce compensation costs and address Occupational Safety and Health Administration (OSHA) concerns while establishing a culture of workplace safety. Risk management services offer solutions for current issues and work to prevent future incidents.

    Finding The Right PEO

    Once you decide that partnering with a PEO is best for you and your business, the next step is to find one that aligns with your goals and needs. Choosing the right PEO partner requires careful consideration and thorough evaluation. Learn how you can assess the fit and find the PEO that best aligns with your business needs:

    1. Conduct an audit of current HR processes: Before choosing a PEO, conduct a comprehensive audit of your current HR processes, policies, and documentation. Identify areas that may need improvement or updating to ensure that all necessary HR documents are organized and up-to-date. This audit will not only help you better understand your HR needs but will also clarify your requirements when searching for a suitable PEO.

    2. Research options: Start by conducting comprehensive research to identify potential PEO partners. Use online resources, industry publications, and professional networks to compile a list of reputable PEOs that serve businesses like yours. During your research phase, consider factors such as industry experience, geographic coverage, and service offerings.

    3. Evaluate services: Once you’ve identified a list of potential PEO candidates, it’s essential to evaluate the range and quality of their services. Look beyond basic HR administrative functions and consider additional services such as employee benefits administration, risk management, payroll processing, and HR technology solutions. Assess whether the PEO’s service offerings align with your current and future HR needs.

    4. Engage in consultations and ask questions: Before making a final decision, schedule meetings with your shortlisted PEO candidates to discuss your specific needs and objectives. Prepare a list of questions to ask during these meetings, covering topics such as:

    • Their experience working with businesses of similar size and industry
    • Service agreements, pricing structures, and contract terms
    • HR technology platforms and the tools they utilize
    • Employee benefits offerings and customization options
    • Compliance support and risk management strategies
    • Communication channels and ongoing support availability

    Use these consultations to assess the PEO’s responsiveness, communication style, and willingness to customize solutions to meet your needs. Pay attention to how well the PEO understands your business and whether they demonstrate a genuine interest in helping you achieve your HR goals.

    Steps For A Smooth Transition

    Once you’ve selected the right PEO for your business, it’s time to focus on the transition. Careful planning and preparation are essential to ensure a seamless and secure transition from internal HR management to your new PEO partner. Follow these vital steps when going through the switch:

    1. Communicating with your employees: Open and transparent communication is key to effectively managing the transition. Inform your employees about the decision to partner and the reasons behind it. Be prepared to address any questions or concerns that may come up and reassure them of the benefits it will bring to them. You should keep your team updated on the progress of the transition and involve them in the process where appropriate to foster buy-in.

    2. Identifying key stakeholders and assigning roles: Specify individuals or teams within your organization who will oversee different aspects of the transition, such as data migration, employee training, and communication with the PEO. Establish clear lines of communication and accountability to ensure that each stakeholder understands their role and appropriately contributes to the transition process.

    3. Migrating the data: Support a smooth and secure transition of HR data to the PEO’s systems by developing a data migration plan. Collaborate closely with the PEO to determine the data formats, timelines, and processes for transferring employee information, payroll records, benefits data, and other relevant HR data.

    4. Onboarding employees: Coordinate with your PEO to develop a comprehensive employee onboarding process that introduces them to the new HR systems, policies, and benefits in a straightforward manner. Train and support employees as they navigate the transition to promote a positive onboarding experience.

    5. Monitoring compliance and performance: Establish protocols for ongoing compliance monitoring and performance review in collaboration with the PEO. Define key metrics and benchmarks for evaluating HR performance and compliance with legal requirements. Regularly review performance metrics and compliance reports to identify areas for improvement and ensure continued alignment with organizational goals.

    Tips For Organized Transition Management

    The transition process can seem overwhelming, but with careful planning, you can minimize disruptions and maximize success. The following can help keep you organized:

    Develop a detailed implementation plan

    Create a comprehensive transition timeline and checklist to guide the implementation process. Define key milestones, deadlines, and tasks to ensure a structured and organized transition.

    Appoint a transition leader

    Assign a dedicated transition team or point person to oversee the implementation process. Establish clear roles and responsibilities so team members feel empowered to effectively collaborate with the PEO and other stakeholders.

    Prepare for challenges with a contingency plan

    Anticipate potential challenges and develop contingency plans to address them proactively. Identify potential risks, such as data migration issues or employee resistance, and establish mitigation strategies to minimize their impact. Stay agile and responsive to emerging challenges to foster a smooth transition process.

    Document transition processes and decisions for future reference

    Document all processes, decisions, and agreements related to the transition for future reference. Maintain detailed records of meetings, discussions, and action items to facilitate continuity and accountability. Create a centralized repository for documentation to ensure easy access and retrieval by relevant stakeholders.

    Best Practices For Maximizing PEO Partnership

    Now that you have successfully transitioned your business to partner with a PEO, what’s next? You have a wealth of resources and expertise at your disposal, but consider the following to make the most of your new collaboration:

    Establishing clear lines of communication with the PEO

    Effective communication is the cornerstone of a successful PEO partnership. Establish clear channels for communication with your PEO, including designated points of contact and regular check-in meetings. Foster open dialogue to address any concerns, share updates, and collaborate on strategic initiatives.

    Leveraging resources and expertise

    Tap into the resources and expertise offered by your PEO to drive strategic HR initiatives. Collaborate with your PEO to develop tailored HR strategies that align with your business goals and objectives. Utilize their insights and best practices to optimize recruitment, talent development, and employee engagement initiatives.

    Regularly reviewing and optimizing services

    Consistently review the performance of PEO services to ensure alignment with your evolving business needs. Collaborate with your PEO to identify areas for improvement and optimize services for maximum efficiency and effectiveness.

    Implementing a feedback system

    Establish a feedback mechanism to provide ongoing input to the PEO and foster continuous improvement. Encourage employees to share their experiences and suggestions for enhancing HR services. Use feedback to identify strengths, address concerns, and drive innovation within the partnership.

    By implementing these best practices and tips for organized transition management, you can optimize your partnership with a PEO and achieve your HR objectives with confidence and efficiency. With clear communication, strategic collaboration, and proactive planning, you can navigate the transition process smoothly and unlock the full potential of your PEO partnership.

    Choose GMS For A Seamless PEO Transition

    As you start on your journey to transitioning to a PEO, selecting the right partner is paramount to success, and GMS stands out as a trusted partner. With over 25 years of experience, we understand small businesses’ unique needs and challenges. We’re committed to providing comprehensive HR solutions tailored specifically to your business needs. From ensuring workplace compliance to handling payroll, GMS has a qualified team ready to support you and your business.

    Take the next step towards optimizing your HR operations and achieving your business’s full potential by partnering with GMS. Contact our team of HR experts today to learn more about how we can support your PEO transition journey and help you unlock your business’s full potential.

  • Running a small business gives you the freedom to set the rules, but that doesn’t mean you’re free from laws and regulations. From employment laws to safety standards, staying on the right side of compliance is crucial. These continuously evolving laws aim to ensure fairness, safety, and accountability in business operations. Failure to meet compliance can result in severe consequences such as fines, legal liabilities, and reputational damage.

    It can be difficult to keep track of every single law and avoid non-compliance fines on top of handling the other responsibilities necessary to run your business. Investing in human resource outsourcing through a professional employer organization (PEO) can save you time and money, allowing you to maintain focus on operating your business. By managing HR functions, a PEO can help your business stay in line with complicated laws and regulations.

    The following dives into how non-compliance can cost your business money and how a PEO can help manage these essential tasks.

    Non-compliance Risks And PEO Solutions

    Workplace safety

    Workplace safety is a crucial aspect of sustaining a healthy work environment, as these practices and procedures protect employees and prevent accidents. The Occupational Safety and Health Administration (OSHA) takes safety seriously and will issue significant fines if your workplace is not compliant. According to the OSHA Penalties list, serious violations can cost a business $16,131 per violation. It’s 10 times that amount for willful or repeated penalties.

    Partnering with a PEO for risk management services can provide resources and expertise to uphold safety standards and keep your business compliant. A PEO can complete regular risk inspections and catch hazards before an incident occurs, saving your company from potential fines. In addition to helping you steer clear of expensive OSHA fines, workplace inspections and guidance on compliance can make your work environment safer and minimize the risk of workplace incidents.

    Hiring

    Hiring employees can be a costly experience if you aren’t compliant with appropriate policies and practices. With several laws enforced by the Equal Employment Opportunity Commission (EEOC), companies must stay informed to avoid legal pitfalls. Missteps during the hiring process can lead to lawsuits from disgruntled applicants over improper job applications, discrimination, or other issues. These lawsuits are not only costly, but they can tarnish your business’s reputation.

    Acquiring HR services through a PEO can help you avoid these hiring mistakes and possible lawsuits. From cohesive hiring and onboarding to HR auditing, a PEO like GMS offers plentiful solutions to streamline your HR processes. With expertise in HR regulations, a PEO can ensure compliance and safeguard your business against legal liabilities.

    Health care

    Under the Affordable Care Act (ACA), businesses with 50 or more employees or full-time equivalents (FTEs) are required to offer health insurance coverage. Failure to offer coverage under current legislation could end up costing a business thousands of dollars each month, depending on the number of employees at your company and how or if you have offered employees coverage in the past. Since the specifics can get complicated, use this simple guide from The Henry J. Kaiser Family Foundation to see where you fall.

    One of the best ways to maintain compliance is by collaborating with a PEO to find a group health insurance plan that makes the most sense for your business and employees. A PEO can negotiate with insurance providers for competitive rates so you can receive premium care at a reduced cost. PEOs also handle administrative tasks associated with managing health insurance, including keeping up with health care compliance regulations.

    Payroll

    Managing payroll comes with a host of tax obligations for businesses. Mishandling payroll or filing inaccurately can result in hefty penalties due to non-compliance with tax regulations. In fact, if there’s negligence or disregard for rules or regulations, the accuracy-related penalty stands at 20% of the tax underpayment attributed to these actions. Failing to file on time can also be costly, with fees increasing for each month overdue. The Failure to File penalty is 5% of the unpaid taxes for each month that a tax return is late, capped at 25% of your unpaid taxes. These penalties highlight the importance of timely and accurate payroll management practices to ensure compliance and avoid financial setbacks.

    By optimizing payroll management, a PEO can efficiently handle responsibilities such as strategic planning, processing payroll, benefits administration, and more. A PEO like GMS not only offers payroll administration services but also provides payroll tax management. With a PEO, businesses can benefit from expert assistance navigating complex tax regulations, ensuring accurate tax filings, and avoiding expensive penalties.

    Stay Compliant Through Changing Regulations With GMS

    Some businesses need help remaining compliant with every existing rule and regulation. It gets even more complex when laws are created or updated. A PEO like GMS has a dedicated team of HR specialists who can help you stay up-to-date on the legislation and regulations, keeping your business compliant and avoiding penalties.

    With a PEO, you don’t have to spend hours trying to make sense of every little detail concerning laws and regulations that may affect your business. Our experts handle the complexities of compliance, so your business is safer and stronger in the long run. Contact us today to talk about how GMS can help your business!

  • In recent years, the United States has seen the introduction of federal and state clean slate laws and initiatives to address the challenges faced by individuals with criminal records. These laws, such as the Clean Slate Act of 2023 and the Fresh Start Act, can significantly impact millions of Americans by providing a pathway to clear federal records and supporting the implementation of state-level record clearance laws.

    While Pennsylvania was the first state to pass a clean slate law in 2018, there have been other states that have passed a clean slate law, including:

    • California
    • Colorado
    • Connecticut
    • Delaware
    • Michigan
    • Minnesota
    • New Jersey
    • New York
    • Oklahoma 
    • Utah
    • Virginia 

    The Need For Clean Slate Laws

    According to Jason Cooper, Vice President of Programs for The Clean Slate Initiative, approximately one in three people in the U.S. – about 70 million to 100 million individuals – have some form of record, with majority of these records being for arrests, acquittals, and nonviolent misdemeanors. The consequences of having a criminal record extend beyond the individual, as nearly half of U.S. children have at least one parent with a criminal record, leading to negative impacts on school performance and future employment opportunities.

    Understanding Clean Slate Laws

    While most states allow for the petitioning of expungement or sealing of certain types of criminal records, the process is often complex, expensive, and poorly understood by those who are eligible. As a result, only a fraction of eligible individuals obtain relief through this process. Clean slate laws offer a solution by automating the record-clearing process once individuals remain crime-free for a specified period of time, providing a more accessible and equitable path to clearing their records.

    An example of the practical application of clean slate laws is New York’s Clean Slate Act, which calls for the sealing of eligible misdemeanor convictions after three years and eligible felony convictions after eight years from the satisfaction of a sentence. However, certain serious felonies and convictions requiring registration as a sex offender are not eligible for sealing.

    Clean Slate Laws Vs. Ban-The-Box Laws

    It’s essential to distinguish clean slate laws from ban-the-box laws, which are aimed at preventing employers from asking about an individual’s criminal history during the hiring process. While the ban-the-box laws focus on the hiring process, clean slate laws primarily target the sealing of certain criminal records, effectively wiping the slate clean for individuals who have served their sentences and satisfied the waiting periods.

    Compliance Challenges

    Compliance challenges may arise with the implementation of clean slate laws, particularly for employers who operate in multiple states. The combination of state laws and the potential for candidates to disclose sealed records out of caution present complexities for employers. Navigating these challenges requires careful consideration of local requirements, especially in the context of remote work and multistate hiring activities.

    Navigating Compliance With Clean Slate Laws

    Clean slate laws have the potential to positively impact millions of Americans by providing a more accessible pathway to clear criminal records, thereby improving opportunities for individuals with past convictions. However, successfully implementing these laws will require a concerted effort to navigate compliance challenges and ensure equitable treatment of individuals with criminal records in the workforce.

    Have you ever considered partnering with a professional employer organization (PEO)? PEOs offer valuable expertise in compliance with evolving legislation, including clean slate laws, and therefore assist small business owners in ensuring fair and equal employment practices. At GMS, our HR experts proactively address the implications of clean slate laws and foster inclusive hiring practices. Contact our experts today!

  • Lawmakers in Pennsylvania have filed legislation to legalize recreational marijuana. The recent filing of House Bill 2210 marks a significant shift in the state’s approach to cannabis regulation. House Bill 2210 aims to regulate the personal use and possession of cannabis for recreational purposes. Since the state legalized marijuana for medical purposes in 2016, this proposal would allow medical marijuana patients in the state to cultivate a limited number of cannabis plants at home for personal use, a practice currently prohibited.

    The bill outlines specific workplace requirements concerning the use of marijuana by employees and job applicants. It grants employers the authority to establish zero-tolerance, drug-free workplace policies, enabling them to take disciplinary action, including termination, against employees found to be impaired by marijuana while on duty.

    Grounds For Legalization

    The sponsors of the legislation emphasize the move toward legalization is rooted in “safety and social equity.” State Representative Amen Brown, a prime sponsor of the bill, highlighted the potential loss of tax revenue and job opportunities to neighboring states such as New Jersey and New York, which have already implemented adult-use cannabis laws. He stressed the economic implications of not embracing legalization, stating that failing to do so “risks permanently ceding hundreds of millions of dollars of new tax revenue as well as thousands of jobs” to other states.

    Implication For Business Owners

    For business owners in Pennsylvania, the potential legalization of recreational marijuana brings several implications and considerations:

    • Workplace policies: If the legislation is passed, businesses can uphold zero-tolerance, drug-free workplace policies regarding marijuana use. This means they can take action against employees found to be impaired by marijuana while on the job.
    • Adaptation to change: Business owners must adapt their human resource policies and employment practices to align with the new regulations. This may involve updating employee handbooks, revising drug testing protocols, and providing training to management and staff on the updated policies.
    • Economic opportunities: With the legalization of recreational marijuana, there may be potential economic opportunities for entrepreneurs and business owners to enter the cannabis industry. This could include the development of cannabis-related products or services, retail opportunities, or participation in the cultivation and distribution aspects of the industry.

    Next Steps For Business Owners

    The potential legalization of recreational marijuana in Pennsylvania opens a new environment for business owners. As a business owner, you’re juggling numerous roles at once. Now, try adding cannabis compliance to the mix. There’s simply not enough time in a given day to handle it all on your own.

    Fortunately, that’s where a professional employer organization (PEO) can assist business owners and relieve them of the extra burden. A PEO like GMS offers tailored solutions to navigate the evolving regulatory landscape, revamp workplace policies, and ensure compliance with the dynamic legal framework. How does this benefit business owners? A partnership with GMS allows business owners to focus on driving their core business operations while receiving guidance from our HR experts on the changing dynamics of cannabis regulation. So, if you’re ready to roll with the highs and lows of the cannabis industry, contact us today, and let’s blaze a trail to success together.

  • Navigating HR responsibilities is a complex task, and while there isn’t a perfect approach to managing them, several courses could land you in hot water. Employers often overlook their HR duties, setting up policies and procedures only to leave them for long periods without review.

    As a small business owner, you have a lot on your plate, and though you may not be intentionally neglecting your HR responsibilities, things slip through the cracks. Creating and implementing a plan for your company’s HR needs is the best way to ensure your business is protected and compliant.

    But what’s the right choice for your company – building an in-house team of HR experts or partnering with a professional employer organization (PEO) to tackle your HR needs? While only you can answer that question, we’ve compiled a short comparison of your options to help you make the best decision for you and your business.

    Cost Of A PEO VS. In-House HR

    It’s essential to understand the cost of each option to determine the best option for your business. While PEOs can offer access to various benefits, they may not be the best choice depending on your goals, business size, and current needs.

    Economies of scale vs. variable cost

    One of the most compelling financial arguments for partnering with a PEO is the benefit of economies of scale. The co-employment model allows PEOs to pool employees from multiple client companies, creating a larger collective workforce. This scale enables PEOs to negotiate better rates for health insurance, retirement plans, and other benefits compared to what a small or medium-sized business could achieve on their own. If you’re struggling to offer competitive benefits due to high costs, a PEO could be a game-changer, providing access to premium benefits packages that attract and retain top talent.

    Depending on your size and complexity, you may need to outsource certain services to third parties, such as legal counsel for compliance issues or specialized payroll services, if you opt for an in-house HR team. These variable costs can fluctuate significantly, making budgeting for HR more challenging.

    While larger companies may absorb these costs more easily, small to medium-sized enterprises (SMEs) must carefully consider these potential expenses, as they can significantly impact the cost-effectiveness of maintaining an in-house HR department.

    Fee structure vs. salaries and overhead

    PEOs typically charge businesses a percentage of the overall payroll or a per-employee per month (PEPM) fee. This structure allows PEO services to scale seamlessly with your business as it grows, with the key advantage being the bundling of services. However, for some companies, particularly smaller ones with minimal HR needs, the cost of partnering with a PEO might exceed the expense of maintaining a small, in-house HR team.

    Opting for an in-house HR department introduces different costs, primarily the salaries for your HR professionals, in addition to the overhead associated with supporting these functions internally. This includes the cost of HR software platforms, ongoing training and development for HR staff, and other resources necessary to maintain an effective HR department.

    Services Provided By PEOs Vs. In House HR

    PEOs offer comprehensive HR services, including managing payroll, administering benefits, handling workers’ compensation claims, and overseeing risk management. In other words, PEOs are a one-stop shop where the complexities of HR management can be outsourced to a team of specialists, allowing your company leaders to focus on core business strategies and growth. The breadth of services offered by PEOs can be particularly appealing if you want to streamline operations and reduce the administrative burden associated with HR tasks.

    In addition, partnering with a PEO can help ensure compliance with federal and local labor laws and implement best practices in HR management. As rules and regulations are subject to change, PEOs can give you peace of mind that your policies are up-to-date, and your business is safeguarded. PEOs offer the support needed to manage a workforce effectively, avoiding common pitfalls and legal risks, particularly for SMEs.

    Unlike the co-employment model used by PEOs, traditional HR management means that all employment tasks, responsibilities, and liabilities remain solely within your company. If you prioritize a unique company culture or have specific HR management needs, in-house HR provides the flexibility to implement customized solutions. This direct relationship between employer and employee can facilitate a closer connection and potentially more personalized management of your team’s concerns and needs. However, it also means that your business retains all legal responsibilities and risks associated with employment – so you’ll need to stay vigilant to protect your team and your business.

    Value Of PEOs Vs. Traditional HR

    Beyond the day-to-day management of HR tasks, PEOs bring a strategic edge to human resources planning. With access to extensive data analytics and industry insights, PEOs can guide businesses in making decisions that enhance HR functions. This strategic approach can lead to higher employee retention rates and increased job satisfaction, as initiatives are backed by solid data and tailored to meet your team’s and your company’s needs.

    Having an on-site HR team means employees can access HR support whenever needed. An in-house team is also deeply integrated into a company’s culture and daily operations. This proximity allows HR professionals to develop a nuanced understanding of your company’s ethos, values, and interpersonal dynamics, enabling them to tailor HR strategies and initiatives that align closely with your business goals.

    Ultimately, a thorough cost-benefit analysis should guide you in choosing between partnering with a PEO or hiring in-house HR professionals. Your decision should not only fit within your financial framework but also align with your long-term business objectives. In other words, consider the immediate costs and savings in addition to the broader impact this decision will have on your company’s operations, culture, and growth potential.

    How GMS Can Help

    GMS provides comprehensive HR solutions to small, medium, and large companies throughout the United States. As HR professionals, we take on the administrative burdens that companies don’t have the time or expertise to manage effectively, including:

    If you haven’t made up your mind and are still turning over that question of which option is the best one for you, GMS can help. Our primary goal is to help you navigate your options with clarity and confidence. Contact us today, and let us help you make the most informed decision possible.

  • The U.S. Citizenship and Immigration Services (USCIS) recently made a significant announcement that is crucial for small business owners to understand. The agency has temporarily increased the automatic extension period of expiring work permits for thousands of renewal applicants. Small business owners must be aware of the details and the potential impact on their business. Continue reading to learn more.

    Extending Work Permit Validity

    The temporary final rule published in the Federal Register on April 8, 2024, states the validity of employment authorization documents (EADs) will be extended from 180 days to 540 days from the EAD’s stated expiration date. U.S. employers must ensure all employees, regardless of citizenship or national origin, are authorized to work in the United States. Having an EAD is one way to prove that an individual is authorized to work in the U.S. for a specific period of time.

    This extension applies to eligible EAD renewal applicants who have properly filed renewal applications on or after October 27, 2023, as long as these applications remain pending on April 8, 2024, and the applicant’s current EAD or 180-day auto-extension period has not expired. In addition, eligible EAD renewal applicants who file their Form I-765 renewal application between April 8, 2024, and September 30, 2025, will also benefit from this extension.

    Impact On Work-Authorized Individuals And Employers

    This measure aims to prevent work-authorized individuals from experiencing a lapse in their employment authorization while waiting for USCIS to resolve pending EAD renewal applications. USCIS Director Ur Jaddou emphasized the importance of this temporary rule in ensuring continued work access for eligible individuals, acknowledging the impact of the record number of employment authorization applications on renewal mechanisms.

    Business Implications

    Small business owners should consider the potential impact of this announcement on their operations. The temporary extension will provide relief to work-authorized individuals, preventing disruptions in their employment due to processing delays. Furthermore, approximately 60,000 to 80,000 employers would have been negatively impacted if not for this extended validity period, highlighting the significant impact on businesses.

    Future Considerations

    The USCIS has also sought public comments on whether to permanently implement the maximum 540-day auto-extension or consider alternative solutions for eligible EAD renewal applicants. Small business owners should monitor these developments as they can have long-term implications for their workforce and operations.

    Biden Administration’s Prior Actions

    This is the second time the Biden administration has announced a 540-day EAD extension, reflecting the ongoing efforts to address processing delays and support work-authorized individuals. In addition, the USCIS’s shift to granting five-year EADs to eligible workers since September 2023 may mitigate future challenges related to expiring work authorization.

    Addressing Regulatory Changes With A PEO

    As small businesses adapt to the recent USCIS announcement regarding work permit extensions, the role of a professional employer organization (PEO) can step in to help. PEOs offer tailored solutions to navigate the intricacies of immigration compliance and workforce management. A partnership with GMS, a certified PEO (CPEO), allows businesses to confidently address the complexities of employment authorization, ensure adherence to regulatory changes, and optimize their operational efficiencies. With GMS’ support, businesses can proactively address the implications of the USCIS announcement, enabling them to focus on driving growth and innovation while entrusting immigration-related matters to seasoned professionals. Interested in learning more? Contact us today.

  • In February, the Los Angeles County Board of Supervisors passed an ordinance aimed at promoting fair employment practices and ensuring that criminal history is not an obstacle to securing employment. The ordinance added several compliance requirements to the California Fair Chance Act for employers considering the criminal history of applicants and employees in making employment decisions.

    The Fair Chance Ordinance (FCO) applies to employers with five or more employees in unincorporated areas of Los Angeles County and is set to take effect on March 28, 2024, and become operative on September 3, 2024.

    Let’s dive into a summary of the key requirements of the Fair Chance Ordinance and understand its implications for employers and job applicants.

    Background Checks

    The FCO places specific requirements on employers regarding the timing and conduct of background checks. The key points to note include the following:

    • Conditional offer requirement: Covered employers are prohibited from inquiring about criminal history before extending a conditional offer of employment unless legally required.
    • Written notice: If conducting a background check after a conditional offer, the employer must provide written notice outlining the reasons for the review and the types of information, background, or history that will be reviewed in addition to the applicants’ or employees’ criminal history.

    Employers are not allowed to ask applicants or employees to provide information regarding their criminal history before the employer’s receipt of the criminal background check report.

    Job Postings

    Under the FCO, employers must be transparent in their job postings. The following are critical requirements related to job postings:

    • Inclusive language: Employers must include language in all job postings stating that qualified applicants with arrest or conviction records will be considered for employment.
    • Legal restrictions: Job postings must specify any local, state, or federal laws that impose restrictions or prohibit hiring individuals with a specified criminal history.
    • Intention to review criminal history: Employers must specify their intention, if any, to conduct a review of an employee’s criminal history in connection with a conditional offer and include a list of all material job duties of the specific job position that may be affected by the criminal history.

    Employers are prohibited from including statements in job postings that exclude individuals with a criminal history from consideration for employment.

    Preliminary Notice And Adverse Action

    The FCO mandates a structured process if an employer intends to take adverse action based on an individual’s criminal history after the initial individualized assessment. The process includes:

    • Preliminary notice: If the employer intends to withdraw or rescind a conditional offer of employment or take any other adverse employment action, a preliminary notice must be provided to the applicant or employee, along with an explanation of their right to respond to the notice before the decision becomes final.
    • Consideration of response: The employer must consider all information and documents submitted by the applicant or employee before making a final decision or taking an adverse action.
    • A copy of the initial individualized assessment
    • Notice of the disqualifying convictions
    • A copy of the criminal background check report

    The employer must provide applicants or an employee five business days to respond to the preliminary notice of adverse action before making a final decision. In addition, the applicant or employee must be given at least 10 additional business days to either:

    • Respond to the preliminary notice if they dispute the accuracy of the background check and need time to obtain evidence for rehabilitation or mitigating circumstances
    • Present evidence of rehabilitation or mitigating circumstances orally at a meeting between the applicant or employee and the employer

    Following the applicant’s response and any submission of additional information or evidence, the employer must consider all the information and documents, whether written or oral, before making a final decision or taking an adverse action. Then, the employer must complete a second individualized assessment. If, after this second assessment, the employer makes the final decision to withdraw the conditional offer or take adverse employment action, the employer must notify the applicant or employee by regular mail and electronic mail. This notice should include the following:

    • Notice of the final decision to withdraw the conditional offer
    • A copy of the second individualized assessment
    • Notice of the disqualifying conviction
    • Information regarding existing procedures for the applicant to challenge the decision or request reconsideration
    • Notice of the applicant’s or employee’s right to file a complaint with the Los Angeles County Department of Consumer & Business Affairs

    It’s also important to note that the employer must provide the final notice of adverse action within 30 calendar days after the applicant or employee responds timely to the preliminary notice. Failure to do so may be presumed as an untimely delay and in violation of the section. To rebut this presumption, the employer must provide a written explanation justifying the delay.

    In addition, employers must maintain and preserve all records relating to the FCO for a minimum of four years after receiving an application. 

    Next Steps

    The FCO’s new requirements in Los Angeles County may make it worthwhile for business owners to consult an outside party such as a professional employer organization (PEO). A PEO like GMS can offer valuable expertise and resources to help business owners understand and adhere to the FCO, ensuring that their hiring practices align with the ordinance’s stipulations. With the support of GMS’ HR experts, business owners can confidently implement fair and inclusive hiring processes, mitigate compliance risks, and focus on fostering a diverse and talented workforce, contributing to a thriving business environment. Contact us today to learn more!