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  • 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!

  • Are you a business owner considering selling your business? Selling a business can be daunting, especially when it comes to the administrative burden and HR management. However, with the right support in place, such as a partnership with a professional employer organization (PEO), the process can be streamlined, allowing potential buyers to see the true value of your business without getting bogged down by administrative complexities.

    Understanding A PEO

    Let’s start with the basics—understanding what a PEO is. A PEO is a strategic partner who helps businesses navigate the complexities of human resources and employment management. Think of a PEO as your one-stop shop for HR solutions. By teaming up with a PEO, businesses can outsource essential HR tasks such as payroll processing, benefits administration, and compliance management. Beyond administrative support, PEOs offer expertise, resources, and guidance to help businesses thrive.

    A PEO provides business owners access to a team of HR professionals who understand the nuances of employment regulations and industry best practices. In layman’s terms, a PEO allows business owners to focus on what they do best – growing their bottom line – while leaving the HR heavy lifting to the experts.

    Diving Deeper Into The Value Of A PEO

    When you sell your business, utilizing a PEO adds more value than you think. So, consider this analogy for clarity: selling your business that utilizes a PEO is like selling a furnished house. Just as a furnished house presents a more attractive and convenient option for potential buyers, a company with a PEO partnership offers a streamlined and well-managed operation ready for the new owner to step in and start generating revenue without the hassle of handling administrative tasks.

    Streamlined operations

    A business that partners with a PEO experiences streamlined operations, much like a furnished house saves a buyer the trouble of buying and arranging furniture. The administrative and HR functions are well-organized, making the business more appealing to potential buyers due to its operational efficiency and ease of takeover.

    Administrative simplicity

    Just as a furnished house eliminates the need to handle multiple vendors for furniture, a business with a PEO in place reduces the need for the buyer to coordinate and understand various administrative vendors. A PEO handles HR, payroll, benefits administration, and compliance, all under one roof, simplifying the administrative burden for the seller and the potential buyer.

    Financial efficiency

    A furnished house often commands a higher price due to the added convenience it offers. Similarly, a business with a PEO is more attractive to buyers due to the cost savings and operational efficiency it provides. The buyer can see the potential for financial efficiency and reduced operational costs, making the business a more appealing investment opportunity.

    The Benefits Of A PEO When Selling Your Business

    A PEO brings professional HR expertise to the table, ensuring that the HR aspect of a business is well-managed and compliant with regulations. This expertise adds significant value to a company, making it an appealing prospect for potential buyers looking for a well-structured and compliant acquisition.

    Risk mitigation

    By partnering with a PEO, business owners can mitigate risk and ensure compliance with employment laws and regulations. This reduces the potential liabilities for the buyer, making the acquisition more attractive and less risky.

    Focus on core business

    With a PEO handling administrative tasks, the business owner can focus on the core aspects of the business, such as growth strategies, customer relationships, and product development. This hands-off approach to administrative tasks makes the business more appealing to potential buyers looking for a well-organized and efficient operation that allows them to focus on business growth.

    Cost savings

    A PEO can help businesses save on administrative costs by streamlining processes and providing access to cost-effective benefits packages. This ultimately increases the business’s value and makes it a more appealing investment opportunity for potential buyers looking for a financially efficient acquisition.

    Meet GMS

    If you’re considering selling your business, the benefits of partnering with a PEO are unmatched. Let us welcome you to Group Management Services (GMS), a certified PEO (CPEO), who can help you during this time of change. At GMS, we understand that selling your business comes with challenges; however, don’t let that be the stopping factor. By simplifying the process, we reduce the burden on business owners. Our experts are here every step of the way. Look no further and contact our team today to get your journey started.

  • California has recently made updates to two crucial pamphlets that employers are required to provide to new hires. These changes aim to ensure that workers are well-informed about their rights, benefits, and the procedures to follow in the event of workplace-related issues.

    Understanding The Updates

    The California Department of Industrial Relations Division of Workers Compensation has revised the “Time of Hire” pamphlet. Employers must provide this document to all newly hired employees. The pamphlet serves as a comprehensive guide, explaining the intricacies of workers’ compensation, including the process of filing claims and accessing medical care. This update showcases the state’s commitment to ensuring employees are equipped with the necessary knowledge to navigate the complexities of workers’ compensation.

    The ”For Your Benefit” pamphlet

    In addition, the Employment Development Department (EDD) updated its “For Your Benefit” pamphlet, which must be provided to new hires and employees upon discharge. This document outlines the various benefits that the state provides to employees in the event of termination or when they’re on specific types of leave. It also offers valuable insights into obtaining unemployment insurance, tax requirements related to unemployment benefits, eligibility criteria for state disability insurance, and a list of workers who may not qualify for unemployment benefits.

    Compliance And Accountability For Business Owners In California

    These updates remind employers of their legal obligations to provide accurate and updated information to their employees. By complying with these regulations, employers contribute to a more transparent and accountable work culture where employee rights are respected and upheld.

    In light of these updates to mandatory pamphlets for new hires in California, professional employer organizations (PEOs) can play a pivotal role in assisting businesses in the state. PEOs can provide invaluable support by ensuring businesses remain compliant with the updated regulations and offer expert guidance on workers’ compensation, state-provided benefits, and other related matters. GMS’ HR experts are here to take on the administrative burdens of small business owners in California. Contact us today to learn more!

  • The recent decision by the 7th U.S. Circuit Court of Appeals has brought to light crucial implications for employers’ responsibilities under the Family and Medical Leave Act (FMLA). This ruling emphasizes the need for employers to adjust performance expectations for employees who are on approved FMLA leave. Continue reading to dive into the details of this decision and its potential impact on how employers navigate the FMLA.

    Brief Overview Of The FMLA

    The FMLA is a federal labor law that provides certain employees with essential benefits related to leave for family or health issues. The purpose of the FMLA is to help employees balance their work and family responsibilities, allowing eligible employees to take unpaid, job-protected leave for specific family and medical reasons.

    Employees are eligible if they have worked for their employer for at least 12 months. In addition, they must have worked at least 1,250 hours over the past 12 months. The employer must have 50 or more employees within 75 miles of the employee’s location.

    Qualified employees can take up to 12 weeks of unpaid leave each year for the following reasons:

    • Birth and care of a newborn child
    • Adoption or foster care placement of a child
    • Caring for an immediate family member (spouse, child, or parent) with a serious health condition
    • Taking medical leave when the employee is unable to work due to a serious health condition 

    Employer responsibilities

    Employers covered by the FMLA must provide eligible employees with the specified leave. Group health benefits must be maintained during the leave. FMLA applies to public agencies, public and private elementary and secondary schools, and companies with 50 or more employees. Time taken off work due to pregnancy complications can count towards the 12 weeks of family and medical leave for the allocated year.

    The Case: OSF HealthCare System Vs. Former Employee

    A former employee of OSF HealthCare, an Illinois-based health care provider, filed a lawsuit claiming they violated her rights under the FMLA. The plaintiff alleged that the company failed to reasonably adjust its performance expectations to reflect her reduced hours while on leave. She cited instances where unadjusted deadlines were imposed despite her reduced office hours. In addition, she highlighted a substantial increase in workload during her leave period, including integrating two acquired hospitals into her unit. The plaintiff also pointed out that certain goals required mentorship, which she did not receive, and coordination with others outside her authority or control.

    In response, OSF defended its actions by stating the plaintiff was terminated for not meeting performance expectations outlined in a performance improvement plan (PIP) established upon her return. A PIP is a written document that outlines an employee’s performance gaps and provides a roadmap for improvement.

    Court Ruling And Implications

    The district court initially ruled in favor of the defendant, emphasizing the plaintiff failed to establish a causal connection between the exercise of her FMLA rights and her termination. However, the 7th Circuit Court of Appeals highlighted a genuine dispute over the amount of approved leave the plaintiff took, which could impact the outcome of the case. The court ruled that such a significant difference in testimony regarding the duration of leave warranted resolution by a jury.

    The appeals court also questioned the timing and motivation behind implementing the PIP, emphasizing that the defendant did not communicate to the employee that poor performance led to the PIP or that deficiencies would result in termination. Consequently, the court vacated the decision and remanded the case for trial, underlining the need for a jury to assess the sincerity of the employer’s motivation.

    Key Takeaways For Employers

    The ruling by the 7th U.S. Circuit Court of Appeals serves as a vital reminder for employers regarding their responsibilities under the FMLA. It underscores the following key implications:

    • Adjusting performance expectations: Employers must adjust performance expectations for employees on approved FMLA leave, considering reduced hours and potential limitations resulting from the leave. 
    • Causal connection: Establishing a causal connection between an employee’s use of FMLA leave and their termination is crucial in FMLA cases. Employers should ensure that disciplinary actions are not perceived as retalitory or interfering with the employee’s FMLA rights. 
    • Transparency and communication: Employers need to effectively communicate performance-related concerns and any subsequent disciplinary measures to employees, especially in cases where FMLA leave is involved. Lack of transparency could be perceived as pretextual and potentially lead to legal ramifications. 

    Stay Compliant, Partner With A PEO

    The intricacies of the FMLA can feel overwhelming for small business owners. However, there’s a strategic solution: partner with a professional employer organization (PEO) like GMS. We offer expertise in HR compliance, assist with leave requests associated with FMLA, and ultimately ensure you’re compliant with FMLA regulations. It’s time for you to focus on propelling your business forward and let us handle the nitty-gritty aspects of your business. It’s a win-win scenario that empowers businesses to thrive. Contact us today to learn more.

  • In a bid to overturn the U.S. Department of Labor’s (DOL’s) final rule, which aims to tighten the criteria for classifying workers as independent contractors, Representative Kevin Kiley, R-California, and Senator Bill Cassidy, R-Louisiana, have introduced the Congressional Review Act (CRA) resolutions. While it’s scheduled to take effect on March 11, 2024, several business organizations are challenging the rule in court. Continue reading to dive into the key aspects and implications of this rule, the responses from stakeholders, and the potential outcomes of the ongoing battle.

    The Controversial Rule

    The new rule, set to replace the 2021 framework, introduces a more complex six-factor test to determine whether a worker should be classified as an employee or an independent contractor. This shift has been resisted by several business organizations, including the U.S. Chamber of Commerce, which has joined a lawsuit challenging the rule. The Chamber of Commerce argues that the new rule fosters ambiguity, restricting businesses’ ability to provide essential training to independent workers.

    Criticisms And Concerns

    Representative Kevin Kiley has strongly criticized the new rule, alleging it restricts the freedom of U.S. workers to operate as independent contractors. He contends the rule will jeopardize the livelihoods of millions of independent professionals and take away the freedom of many others to enjoy flexible work arrangements.

    In addition, introducing the six-factor test has raised concerns among businesses, particularly small businesses, regarding the potential confusion in determining worker classification. This uncertainty threatens the independent contractor model, enabling companies to scale their operations and retain specialized expertise while granting workers flexibility and control over their work activities.

    Six Factors Of The New Test

    The six factors of the new test include the following:

    1. The degree of employer control over the work

    2. The worker’s opportunity for profit or loss

    3. The level of skill and initiative required for the work

    4. The permanence of the working relationship

    5. The worker’s investment in equipment or material

    6. The extent to which the service rendered is integral to the employer’s business

    Seeking Clarity And Challenging The Rule

    Representative Kevin Kiley has called for the withdrawal of the independent contractor rule and has requested specific guidance from the DOL’s Wage and Hour Division Administrator on the criteria for employee and independent contractor classification. His concerns center on the need for clarity and understanding amidst the complexities of the new rule.

    The Road Ahead

    Despite the intense efforts to challenge the rule, the odds of a successful resolution remain uncertain. The Democrat-controlled Senate presents a formidable obstacle, requiring a two-thirds majority to overcome a potential presidential veto. In addition, the rule faces multiple legal challenges, with lawsuits alleging its illegality and deviation from the Fair Labor Standards Act (FLSA).

    The battle over the worker classification rule is poised to have far-reaching implications for businesses, workers, and the regulatory landscape. As the debate unfolds, stakeholders eagerly await the resolution of this issue, mindful of the potential impact on the workforce and the broader economy.

    Advice For A Small Business Owner

    We’ll make it simple – consider partnering with a professional employer organization (PEO). PEOs offer a compelling avenue for small businesses to address these challenges. By partnering with a PEO, small businesses can leverage expertise in HR management, gain access to comprehensive guidance on employment regulations, and receive tailored support in navigating worker classification complexities. As the landscape of labor regulations continues to evolve, the role of PEOs in assisting small businesses in effectively classifying workers and ensuring compliance with changing labor standards cannot be overstated. Meet Group Management Services (GMS), a certified PEO (CPEO), ready to take on the administrative burdens small business owners don’t have the time and energy to worry about. Get a quote from us today to start your journey with a simpler, safer, and stronger business.

  • The U.S. Department of Labor (DOL) has introduced a new rule under the Fair Labor Standards Act (FLSA) set to take effect on March 11, 2024. This rule could potentially lead to significant changes in how contract workers are classified, with potential implications for employers regarding benefits, insurance coverage, and exposure to employment-related lawsuits.

    The New Rule

    The Employee or Independent Contractor Classification Under the Fair Labor Standards Act rule, which replaces a rule established during the Trump Administration, aims to provide a clearer analysis for employers to determine a worker’s employment status. It re-adopts an enhanced economic realities test for worker classification that was previously in effect under an Obama administration rule. The new rule introduces a six-factor test to guide employers in determining a worker’s employment status under the FLSA, as opposed to the two-factor test under the Trump administration.

    The six factors in determining worker status under the new rule include the following:

    • Opportunity for profit or loss depending on managerial skill
    • Investments by the worker and potential employer
    • Degree of permanence of the work relationship
    • Nature and degree of control
    • Extent to which work performed is an integral part of the business
    • Skill and initiative

    Concerns With The New Rule

    Employers have expressed concerns about the broader impact of the new rule, fearing that it may have consequences beyond just minimum wage and overtime pay protections. While the DOL insists that the change is tailored and limited, some experts and industry professionals believe otherwise.

    In addition, the change in worker classification may have significant implications for various industries, particularly the construction sector. However, the National Electrical Contractors Association has expressed support for the new rule, citing its potential to address the widespread misclassification of workers across industries.

    The new rule faces court challenges, with concerns raised about potential confusion arising from workers being classified differently under various statutes and across different states. This confusion could lead to increased employment-related litigation, as highlighted by pending lawsuits challenging the rule.

    Implications For Workers And Employers

    While some labor unions and advocates support the reclassification of workers as employees for wage and hour purposes, certain groups, such as app-based gig workers and business advocates, are concerned about the potential loss of opportunities and flexibility if gig workers were to be classified as employees.

    In addition, the new rule may prompt employers to rethink their insurance coverage. This could lead to more confusion about the coverage of certain claims and the need for additional insurance, such as employment practices liability insurance (EPLI) or directors and officers (D&O) liability insurance.

    How A PEO Can Help

    In light of the changes stemming from the DOL’s new rule on employee classification, businesses may find value in seeking the support of a professional employer organization (PEO) like Group Management Services (GMS). PEOs offer expertise in navigating complex employment regulations, providing guidance on worker classification, and assisting in the management of benefits and insurance coverage. Through a partnership with GMS, businesses can proactively address the challenges posed by the new rule, ensuring compliance while maintaining their focus on core business operations. As the regulatory landscape continues to evolve, leveraging the resources and expertise of a PEO can empower businesses to adapt effectively and thrive in the face of changing employment practices and legal requirements. If you’re interested in learning more about what a partnership looks like with GMS, contact us today.

  • Picture this: you’ve identified two ideal candidates for a job vacancy. They check all the boxes for qualifications and appear to be a perfect match for your company culture. During the final stage of the interview process, an employee asks Candidate A in passing about their marital status and whether they have children. This inquiry seemed harmless at the time, and you let it pass without much thought, however, when your company opts to hire Candidate B, you face a discrimination lawsuit from Candidate A.

    It’s no surprise that it takes a lot of questions to determine whether a candidate is the right fit for your company. However, you may not know that there are quite a few interview questions and topics that can land your company in trouble. Under the U.S. Equal Employment Opportunity Commission (EEOC), the supposed conversational question on marital and family status in the above scenario was illegal – and Candidate A was within their rights to follow legal action.

    Hiring is a stressful time for many reasons, and preparing your hiring team with the knowledge they need is one way to ensure compliance with federal laws and regulations.

    Employment Laws And Regulations

    Employment laws extend beyond federal regulations. There are several local, state, and city laws that your business is required to follow. One example of this is the city of Cincinnati’s Salary Equity Ordinance, a measure that took effect in March 2020. This ordinance made it illegal for employers in Cincinnati to ask about a job candidate’s pay history. California Labor Code 432.3, a state-wide law, similarly makes questions surrounding salary history illegal.

    While this ordinance relates to Cincinnati employers, there are many state and city laws across the country, so it’s crucial you fully understand your local regulations. Unlawful questioning can lead to various consequences, including discrimination lawsuits or an investigation by the EEOC, which can be frustrating and challenging to recover from.

    Problematic Topics For Job Interviews

    To safeguard your business, it’s crucial to understand illegal interview questions before you start the interview process. Typically, when you’re ready to fill a vacant position, you’re under time pressure, making it too late to meticulously review your questions for legal compliance. At this point, your business becomes vulnerable to potential lawsuits.

    Some illegal interview inquiries are clear – you shouldn’t ask questions about a job candidate’s race or sexual identity. However, there are several less obvious questions that are also illegal. In addition, as with the marital and familial status example, what you may see as a casual attempt at small talk can be interpreted as a topic that’s off-limits. This means that beyond reviewing your prepared interview questions, it’s crucial to equip your hiring team with guidance on safe conversational topics to avoid inadvertently broaching illegal subjects.

    To help you get started, here are some topics to avoid or proceed with severe caution:

    National origin and citizenship

    Any question regarding a candidate’s national origin can be an issue. The Immigration Reform and Control Act of 1986 (IRCA) makes it illegal for employers to base hiring decisions on a person’s citizenship or immigration status. Even a question about a candidate’s accent could be interpreted as an attempt at discrimination. You are, however, allowed to ask whether a candidate can legally work in the U.S., provide the required documentation if hired, and read, write, and speak English if needed.

    Religion

    Avoid questions that involve a candidate’s religion. Even roundabout questions like whether a candidate will need time off for religious holidays can be seen as non-job related and an attempt to discriminate against a person for their beliefs.

    Pregnancy status

    Even if the person interviewed is pregnant, it’s illegal to ask about their pregnancy. Not only does this violate set pregnancy discrimination laws, but it can appear as gender discrimination since male candidates won’t have to answer the same questions. General questions about any future planned leave are acceptable if the question isn’t tied to pregnancy. Focus the interview on other neutral job-related questions involving work responsibilities to see if the candidate can perform the necessary tasks.

    Disability

    The Americans with Disabilities Act (ADA) makes it illegal for employers to ask questions that “are likely to reveal the existence of a disability before making a job offer.” That means any questions regarding how many sick days an applicant took in the past year or what prescriptions they take.

    In addition, do not ask if an applicant will need reasonable accommodation unless you know the candidate has a disability. According to the EEOC, it’s acceptable to ask about reasonable accommodations if the applicant voluntarily reveals their disability or there is a clear visual sign, such as if the applicant uses a cane for a severe limp.

    Age or genetic information

    It’s only acceptable to ask about an applicant’s age if it’s directly tied to their job. For example, an individual working at a bar or other 21-plus environments will need proof of age. Even a question such as when an applicant graduated from high school can be viewed as an attempt to identify a person’s age.

    Arrest record

    According to the EEOC, no federal law prevents employers from asking candidates about their criminal history – although “Using criminal history information to make employment decisions may violate Title VII of the Civil Rights Act of 1964.” It’s important to note that while there’s no federal law against asking about arrest records, many states, such as California, Connecticut and Massachusetts, ban the practice. As such, check your state’s regulations before asking candidates about their criminal history.

    Protect Your Company During The Hiring Process

    Adding a new employee is an exciting step for any business, but it’s essential to ensure your business remains compliant throughout the process. Fortunately, there are many steps that you can take to avoid illegal interview questions. These include:

    • Establishing set interview questions for every candidate
    • Treat every candidate the same during the interview process
    • Take notes and document the results
    • Have more than one interviewer in the room

    Another way to help your business is to hire a professional employer organization (PEO) that can not only oversee employee hiring and training but also help you shoulder the administrative burden created by crucial HR functions. The GMS team can help you stay current on the latest rules and regulations while managing everything from your company’s payroll to employee benefits plans.

    Contact us today to learn more about what we can do to help you protect your company now and prepare for the future.

  • As a small business owner, the day-to-day can feel like an endless cycle of putting out fires and being pulled in conflicting directions, leaving you with little to no time to work on the aspects of your business you’re most passionate about. However, HR can’t be ignored; it involves intricate and time-consuming tasks that demand ongoing attention. If mismanaged, your company could face harsh penalties and reputational harm that could take months or years to recover.

    While handling it all yourself may seem doable, as your business grows, it may not be possible to juggle the many moving pieces that make up successful and compliant HR policies and procedures – even with the best intentions, mistakes and oversights happen. Professional employer organizations (PEOs), such as GMS, help ensure nothing falls through the cracks.

    What Is A PEO?

    PEOs manage various HR tasks, such as benefits administration, payroll processing, recruitment, risk management, and other operations responsibilities. PEOs help safeguard your business against potential legal and reputational pitfalls. They specialize in maintaining compliance, ensuring that your HR policies align with federal and local employment regulations.

    In addition to compliance, they serve as a partner in the strategic management of HR functions. Through optimizing processes and introducing best practices, PEOs can significantly enhance your overall efficiency and productivity, which help attract and retain top talent.

    PEOs act as an extension of your business and provide the support needed to navigate the complexities of HR. While PEOs take on the administrative burdens of HR, they follow your lead. This arrangement ensures that your business’ core identity and operational direction remain firmly in your hands. In other words, PEOs don’t take over your business. Instead, they free up your time and energy by taking over the administrative aspects of HR processes so you can focus on core business activities such as strategic planning, business development, and customer engagement.

    Benefits Of Working With A PEO

    PEOs allow you to offer exceptional and competitive benefits to your team. PEOs pool their buying power and can negotiate with insurance and benefits vendors, giving you access to broader and more competitive benefits packages. These can include health insurance, dental and vision plans, retirement savings plans, and even wellness programs, which might not be possible for you to offer as a smaller business on your own.

    The ability to offer top-tier benefits packages can significantly impact your company’s recruitment and retention efforts. In a competitive job market, attractive benefits packages stand out to high-performing talent, making them more likely to join and stay with your company long-term.

    In addition, partnering with a PEO can lead to the following:

    • Financial savings: One way PEOs can save money is by reducing employee turnover costs. Not only is hiring simplified and faster, but partnering with a PEO can help refine your HR processes, helping with overall job satisfaction and retention.
    • Technology system access: Partnering with a PEO provides access to several technology platforms, including human resources information systems (HRIS), online payroll solutions, and more. These user-friendly platforms can seamlessly integrate with your existing systems, enabling straightforward access to employee information, report generation, and data storage capabilities.
    • Scalability: As your business grows, a PEO can quickly adapt to your changing needs, from adding new employees to expanding into new cities or states. This scalability can be a significant advantage for rapidly growing businesses.
    • Enhanced recruitment: PEOs equip you with the necessary tools and expertise for efficient employee recruitment, onboarding, and ongoing training processes. From creating a job posting to screening various candidates, PEOs free up your time so you only interview qualified applicants. Beyond screening talent, PEOs help establish a complete onboarding process, ensuring new hires are effectively integrated into your company and receive the training they need to succeed.
    • Employee development and training: Ongoing training is necessary to ensure your team is well-versed in their responsibilities and the company’s procedures. PEOs can help facilitate this through learning management systems (LMS), enabling you to establish and track employee training programs.

    Is A PEO Right For My Business?

    There are many factors to consider when deciding if a PEO is right for your business. First, it’s crucial to take inventory of your specific pain points. Are you looking for help with payroll, compliance, employee benefits, workers’ compensation, or all of the above? Understanding your needs will help you choose if a PEO is right for you.

    Additionally, consider the cost of a PEO. PEOs will save you time and money in the long run; however, it’s crucial to understand the pricing structure and compare it against the potential cost savings to ensure it’s truly the best decision for you.

    Overall, PEOs offer an excellent solution for small businesses aiming to develop and sustain a strong workforce. Securing top talent involves more than just an appealing job title; employees seek organizations that provide competitive benefits and have comprehensive processes and policies in place.

    HR With GMS

    Our goal is to help employers make their business simpler, safer, and stronger through dedicated HR support. We provide comprehensive HR solutions to companies small, medium, and large throughout the United States, allowing them to increase operational efficiencies, save money, and enhance the overall employee experience.

    With GMS, is a one stop shop, you won’t have multiple vendors providing multiple services. You get one team with years of experience managing HR, payroll and tax, benefits, and risk management. We provide:

    • Expertise: GMS offers a wide range of services and customized support. For the best fit, explore our offerings to ensure our capabilities align with your needs.
    • Peace of mind: GMS is a certified professional employer organization (CPEO), meaning we meet the requirements set by the IRS and can provide specific financial protections and tax benefits.
    • HR in a crisis: Are you ready to handle an HR crisis? GMS can help your business navigate various challenges, from handling sexual harassment complaints to managing workers’ compensation claims. We can ensure your policies remain current and your team is well-equipped to address any challenges. We are always ready to provide support during crises.

    Whether you know exactly what you need help with or aren’t sure where to start, our team is ready to help. Contact us today to connect with one of our experts!

  • In the dynamic landscape of small businesses, owners often find themselves juggling multiple roles, from managing operations to ensuring compliance with labor laws. With limited resources and personnel, handling HR tasks can be daunting, time-consuming, and prone to errors. However, partnering with a professional employer organization (PEO) can offer substantial benefits. Let’s dive into why outsourcing to a PEO could be a game-changer for businesses, even those with as little as five employees.

    Expertise At Your Fingertips

    Small businesses often lack dedicated HR departments or personnel with extensive HR expertise. PEOs bring seasoned professionals to the table who specialize in various HR functions, including the following:

    • Payroll processing
    • Benefits administration
    • Compliance management
    • And more

    By outsourcing to a PEO, small businesses gain access to knowledge and experience without the overhead costs of hiring full-time HR staff.

    Enhanced Benefits Package

    Attracting and retaining top talent is a constant challenge for small businesses, especially when competing against larger corporations with robust benefits packages. PEOs pool together employees from many companies (the PEOs clients), creating economies of scale that enable access to high-quality benefits at competitive rates. From health care and retirement plans to wellness programs and employee assistance services, PEOs empower small businesses to offer comprehensive benefits that are competitive with larger businesses.

    Streamlined Compliance

    Navigating the ever-evolving landscape of employment laws and regulations can be daunting for small business owners. Non-compliance can result in hefty fines, legal liabilities, and reputational damage. PEOs specialize in staying on top of these changing regulations, ensuring their clients remain compliant with federal, state, and local laws. By outsourcing compliance management to a PEO, small businesses can mitigate risks and focus on growth initiatives with peace of mind.

    Time-Saving Solutions

    Time is precious for small business owners wearing multiple hats. Handling HR tasks, such as payroll processing, employee onboarding, and performance management, can eat into valuable time that could be spent on strategic initiatives. PEOs automate these mundane HR processes, streamline workflows, and provide self-service tools that empower employees to manage their information more efficiently. This frees up valuable time for small business owners to focus on driving innovation, expanding market reach, and nurturing client relationships.

    GMS – The One-Stop Shop For Your Outsourcing Needs

    In an increasingly competitive business landscape, small businesses must leverage every available resource to thrive and succeed. Partnering with a PEO offers small businesses a strategic advantage by providing access to expertise, cost-efficient solutions, enhanced benefits packages, streamlined compliance, and time-saving tools.

    At Group Management Services (GMS), a certified PEO (CPEO), we’re here to help businesses in all different industries with as few as five employees to hundreds. If you’re that small business owner hanging on by a thread, look no further – we’re your one-stop shop. Let us unlock your full potential, maximize operational efficiency, and position your business for sustainable growth in the marketplace. Contact our HR experts to get started!

  • A Texas district court judge has postponed the effective date of the National Labor Relations Board’s (NLRB’s) joint employer rule by two weeks, shifting it from February 26, 2024, to March 11, 2024. This move has created heated discussions and raised questions about its potential implications across various industries.

    Unpacking The New Rule’s Far-Reaching Standard

    The NLRB’s joint employer rule introduces an expansive standard, requiring that companies should be considered joint employers of contract and franchise workers. This will require them to engage in collective bargaining with unions if they exert control over critical working conditions such as pay, scheduling, discipline, and supervision, regardless of the nature of this control – whether direct, indirect, or unexercised.

    In response to the delay, the court indicated that “an opinion with the court’s reasoning will be issued forthwith.” This decision came on the heels of a lawsuit filed by the U.S. Chamber of Commerce and other business groups. They claimed that the rule runs against federal law and could disrupt numerous industries reliant on temporary and contract labor.

    Potential Implications Of The New Rule

    The implementation of the broader standard under the new rule has sparked concerns about its potential to significantly impact the franchise industry and disrupt business-to-business arrangements for outsourced labor. Critics of the rule caution that its expanded scope could potentially unsettle established business practices and lead to operational challenges for various industries.

    Previous Delays

    It’s important to note this delay isn’t the first for the NLRB’s joint employer rule. Initially slated to take effect on December 26, 2023, it was then rescheduled to February 26, 2024, following the Government Accountability Office’s determination that the original effective date violated the Congressional Review Act. In addition, the U.S. House of Representatives passed a proposal in January to overturn the rule, which is currently awaiting consideration by the Senate. President Joe Biden has made it clear that he will veto the resolution if it gains approval in both houses of Congress.

    Considerations For Business Owners

    With the potential enactment of the NLRB’s new joint employer rule pending, businesses must evaluate their contractual and operational landscapes. The pivotal question for businesses to think about is whether they anticipate the need to control another employer’s workers. Depending on their assessment, they may need to re-evaluate their contracts, policies, and practices to ensure alignment with the new rule or consider adjustments to sidestep a joint employer relationship.

    Leveraging HR Expertise And Compliance Support

    As we navigate this uncertain regulatory terrain, businesses might find reassurance in considering alternative solutions to address the potential impacts of the NLRB’s joint employer rule. Partnering with a professional employer organization (PEO) like GMS could offer a valuable advantage, providing access to HR expertise, compliance support, and tailored employment practices. By partnering with a PEO, businesses can strengthen their position in the face of regulatory changes, gain valuable insights, and ensure their workforce management strategies remain adaptable and compliant, regardless of the outcome of the NLRB’s joint employer rule. Contact our HR experts today to learn more.