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  • No matter your industry, falls are one of the most common ways that your employees can get hurt. In 2020 alone, 211,640 individuals missed time at work due to a slip, trip, or fall, while 805 people ultimately died from their injury. Due to these dangers, the Occupational Safety and Health Administration (OSHA) makes it clear that employers must take specific measures to protect employees from slips, trips, and falls.

    Fall protection is one way that employers can create a safer workplace and prevent fall injuries. Keep reading for an overview of what employers need to know about fall protection and how to protect your employees from devastating injuries.

    What Are OSHA’s Fall Protection Standards?

    OSHA has developed multiple rules to protect workers from serious work-related injuries caused by falls. The first part of these regulations starts with broader requirements to maintain compliance and limit the effect of potential danger areas.

    • Give employees working conditions that are free of known dangers.
    • Maintain floors in work areas so that they are clean and as dry as possible.
    • Select proper personal protective equipment and provide it to workers at no cost.
    • Train workers about job hazards in a language that they can understand.

    OSHA also requires employers to take specific measures to address fall risks. The employer must take the following actions to limit the employees’ chances of injuries caused by falls Use railings, toe boards, and floor hole covers to protect workers from walking into any floor holes.

    • Provide a guard rail and toe board around any elevated open-sided platform, floor or runway.
    • Install guardrails and toe boards around any dangerous machines and equipment if employees can fall into or onto them, regardless of the height.
    • Set up or provide any other means of fall protection that may be required depending on the job or environment, such as safety nets, stair railings, and other safety measures.

    It’s also important to note that OSHA has specific fall protection standards for the construction industry. According to the Bureau of Labor Statistics, 37.9% of fatal construction injuries came from slips, trips, and falls, making fall protection essential. OSHA lays out additional fall safety standards in the Code of Federal Regulations – 29 CFR 1926.501.

    At What Height Is Fall Protection Required?

    OSHA requires all businesses to prepare their workplace so that employees are less likely to fall from elevated places or into any holes. OSHA uses a “minimum height” measurement to judge which places are considered elevated risks. However, the minimum height for elevated places depends on the type of work being completed on the job site. These heights include the following designations:

    • General industry workplaces – four feet
    • Shipyards – five feet
    • Construction – six feet
    • Longshoring operations – eight feet

    What Are The Basic Types Of Fall Protection Equipment?

    There are multiple forms of fall protection. These safety measures are designed to cover the entire spectrum of fall protection needs, from preventing an initial fall to saving employees from contact injuries after a fall occurs. The basic types of fall protection include:

    • Barriers – These are physical obstacles that prevent people and objects like tools from falling over the edge of a platform or into an open hole. Guardrails and toe boards are the most common version of fall protection barriers.
    • Travel restriction – These restraints are designed to prevent workers from getting too close to an unprotected edge or another form of a fall hazard. For example, a safety harness or belt will be connected to a lifeline that is adjusted to allow users to travel a limited distance.
    • Work positioning – A work positioning system allows workers to work in a secure, anchored space where they can freely use their hands, such as a swing stage or a suspended chair. These systems shouldn’t allow individuals to fall more than two feet and be combined with fall arrest equipment.
    • Fall arrest – Fall arrest systems are emergency measures that prevent users from making contact after a fall. Equipment like safety nets, shock absorbers, and rope grabs limit the total fall distance and protect employees from injuries and potential fatalities.
    • Control zones – In cases where it is impractical to use fall protection systems, control zones are defined areas with safety monitors that limit access to only approved workers.

    What Fall Protection Training Is Required?

    In addition to providing safety measures, OSHA also deems employers responsible for training employees on a variety of fall protection safety topics. Employees should be trained by OSHA-approved trainers and all information should be easily understood by the employee. These lessons should cover the following subjects:

    • What are considered fall hazards, how employees can be injured, and how to recognize these fall hazards.
    • Existing policies and procedures that employees must follow to minimize those hazards.
    • The exact procedures employees should use to correctly install, inspect, operate, maintain, and disassemble their personal fall protection systems and equipment.
    • How to correctly use the personal fall protection systems and equipment required on a job site.

    Protect Your Business Through Proper Fall Protection

    Whether you’re employees are working from heights or walking around an office, it’s essential to prevent falls wherever they can happen. Of course, fall protection isn’t always as simple as putting in guardrails and investing in equipment. It can take a lot of work and expertise to invest in workplace safety, and business owners only have so much free time.

    Fortunately, GMS helps businesses take a proactive approach to workplace safety. Our experts can conduct jobsite inspections, provide industry-specific training, and develop safety documentation for your business. These and other actions will help ensure that your employees are safer and your business stays compliant with OSHA regulations.

    Ready to make your business a safer place? Contact GMS today to talk to one of our experts about our workplace safety services and other critical HR functions.

  • Workplace safety is essential for any business, but it takes on even more importance for construction workers. According to OSHA, nearly 20% of private industry worker fatalities were in the construction industry. That inherent danger is exactly why safety meetings are a critical tool for any construction company.

    Regular construction safety meetings, often referred to as toolbox talks, are a key part of any safety program. Sharing the right construction site safety tips during these meetings can help protect people, keep your company compliant, and reduce workers’ compensation costs. That’s why it’s essential to educate employees and keep everyone on the same page about a variety of topics.

    What To Discuss During Your Construction Safety Meetings

    Every meeting is an opportunity to tackle important safety concepts, topics, and guidelines that will keep your employees healthy and productive. Whether you plan to tackle a variety of subjects in one meeting or want to dedicate an entire session to a specific theme, consider these nine construction safety meeting topics to share at your next meeting:

    • Personal protective equipment (PPE)
    • Fall protection
    • Hazard identification
    • Lockout/tagout
    • Hand and power tools
    • Fire safety
    • First aid

    Personal protective equipment (PPE)

    Good preparation is pivotal. Personal protective equipment (PPE) is designed to minimize an individual’s exposure to various hazards that can cause serious injuries and illnesses while they’re in the workplace. PPE comes in many forms that range from hard hats to full body suits, but every piece of PPE plays a role in protecting your team.

    Employers are required to provide workers with any necessary PPE to complete their job, along with proper training and guidelines on how to use each piece of PPE. A construction safety meeting is an excellent place to educate employees on your PPE program. That process includes discussing the following PPE-related topics.

    • When PPE is necessary.
    • The types of PPE that are necessary in different situations.
    • How to properly put on, adjust, wear, and take off PPE.
    • The limitations of PPE.
    • Proper care, maintenance, useful life, and disposal directions for PPE.

    Fall protection

    Slips, trips, and falls are a hazard in any setting, but the construction industry is especially at risk. According to the Centers for Disease Control and Prevention (CDC), construction accounts for roughly half of all on-the-job falls and more than one-third of fall-related fatalities. Discussing the following construction site safety topics with your employees can help your business reduce or eliminate these types of accidents.

    • An overview of fall protection.
    • Common fall hazards and hazard recognition.
    • The different forms of passive and active fall protection.
    • On-site fall safety requirements for different worksite environments.
    • Training on how to proceed around fall hazards and how to use appropriate equipment.
    • What to do if there is a fall.

    Hazard identification

    OSHA defines a hazard as “an inherent property of a substance that is capable of causing an adverse effect.” Simply put, hazards qualify as anything that can hurt someone in your workplace and need to be identified as quickly as possible. Safety is a team effort, which is why hazard identification should be a notable topic for an upcoming safety meeting.

    Teaching employees about hazard recognition is a process that goes beyond spotting danger. Take the following steps the next time you highlight hazard identification during a toolbox talk.

    • Educate employees on the definition of the term “hazard” and how it applies to them.
    • Highlight the different forms hazards can take in the workplace and provide relevant examples. These include:
      • Physical hazards – Excessive noise, cutting risks, etc.
      • Chemical hazards – Exposure to toxic substances, accidental ingestion, etc.
      • Airborne hazards – Fumes, gas leaks, etc.
      • Ergonomic hazards – Improper lifting techniques, improper posture, etc.
      • Biological hazards – Mold, bacterial growth, etc.
    • Practice hazard identification with employees through demonstrations and other tests like OSHA’s Hazard Identification Training Tool.
    • Share the appropriate process for when an employee spots a hazard, including:
      • How to communicate with the team about a hazard.
      • Assessing the risk of the hazard.
      • Putting controls in places to eliminate or reduce the hazard’s ability to cause harm.

    Lockout and tagout

    Heavy equipment and machinery are not uncommon in the construction industry, but they can pose a threat if not dealt with appropriately. Proper lockout and tagout procedures can help employees safely depower these machines to prevent future injuries.

    A safety topics for construction meeting is an excellent opportunity to educate employees about proper maintenance and service protocol. Present written lockout/tagout procedures for every machine during the meeting (and create them if they don’t exist). You’ll also want to walk through the exact procedures for any relevant machines. For example, the following steps represent a typical lockout/tagout process:

    1. Notify employees affected by lockout/tagout procedures.
    2. Shut down equipment according to written guidelines.
    3. Isolate the energy source.
    4. Attach the appropriate lockout device.
    5. Release or restrain any energy stored in the machine.
    6. Verify the lockout with the proper personnel.

    Hand and power tools

    Heavy equipment isn’t the only potential danger on a job site. Common construction tools and other machines can pose hazards without proper training and use. Employers can use safety meetings as a refresher courses for existing tools, special sessions for new devices, or a combination of both. Regardless, the following topics are good subjects during these meetings:

    • How to keep all tools in good condition through proper storage and regular maintenance.
    • How to select the right tool(s) for each task or job.
    • How to examine tools for any damage or other warning signs prior to use.
    • Correct operating procedures for each tool (including manufacturers’ instructions if applicable).
    • How to spot environmental issues that can impact tool safety (ex. wet conditions for electrical equipment).
    • When and how to properly use the right PPE for relevant tools.

    Fire safety

    Between electrical tools and flammable materials, fires are a real risk on many construction sites. A fire can break out at any time, so it’s best to educate employees about what they can do to prevent them – and what to do in case one does occur. Below are some notable topics that your business should discuss during a fire safety toolbox talk.

    • Common job site fire safety hazards.
    • How to handle and store flammable materials.
    • How to use equipment that can create sparks and other potential fire safety issues.
    • Proper procedures during a fire and other related response plans.
    • Where to find fire response equipment (and how to use that equipment).

    First aid

    While businesses can take several precautions to make their work environment as safe as possible, there’s always a chance someone can get hurt. OSHA requires construction companies to have someone properly trained in first aid on-site, but it’s also good to remind workers about first aid basis. That discussion should include the following topics:

    • The location of any first aid kids on-site and what these kits contain.
    • Any other safety supplies that may be required on-site, such as an automatic external defibrillator.
    • How to use first aid skills for minor treatments, such as cleaning minor cuts, applying bandages, and more.
    • A review of your emergency action plan, including the following steps:
      • How to survey an accident scene.
      • How to identify injuries and other issues.
      • How to contact emergency medical services (and what information you should share with them).

    Take A Proactive Approach To Workplace Safety Management

    From ladder safety to hazard recognition, a little prevention goes a long way toward protecting your employees and business from injuries, illnesses, and worse. Construction safety meetings are an excellent way to train workers, encourage discussion, and keep everyone accountable. Unfortunately, it’s not always easy to stay ahead of safety and compliance risks alone.

    Group Management Services partners with businesses to make their business safer and more efficient. Our workplace safety experts take a proactive approach through onsite consulting, jobsite inspections, workplace safety courses, and other key services. Contact us now about how GMS can make your business a safer place.

  • For the majority of small businesses, workers’ compensation insurance is simply an unavoidable cost. The exact requirements vary by state, but any company that needs coverage faces a simple scenario – carry workers’ comp insurance or face the consequences.

    While workers’ compensation coverage is a must for many small businesses, figuring out how much your business will owe is complicated. The exact rates can change every year and there are a variety of factors that impact how much workers’ compensation will cost your business. Let’s break down what impacts your workers’ compensation rates (and what you can do to save on these costs).

    How To Calculate Workers’ Comp Rates For Your Business

    The first step toward understanding workers’ compensation rates is to identify what factors directly impact premiums. There are three main elements that insurance companies use to calculate your workers’ compensation rate:

    • Workers’ compensation classification codes
    • Payroll
    • Experience modification number

    Workers’ compensation classification codes

    Your business’ line of work plays a major role in determining your workers’ compensation rates. Insurance companies use class codes assigned by the National Council on Compensation Insurance (NCCI) to adjust your rates. These three- or four-digit codes represent the overall risk level for different types of work.

    Insurance agents and underwriters use this information to adjust your overall costs based on your line of business. As you may expect, class codes that indicate greater risk will typically yield higher workers’ compensation insurance premiums. For example, an electrician will be more expensive to cover than an office worker.

    While many states use NCCI codes for their workers’ compensation rate calculations, some locations can complicate these calculations. There are several states that use their own code system, meaning that your rates could vary from the NCCI’s rules and regulations if your business is located in the following states:

    • California
    • Minnesota
    • New York
    • North Carolina
    • Massachusetts
    • Pennsylvania
    • New Jersey
    • Delaware
    • Indiana
    • Michigan

    To complicate matters even further, there are four monopolistic states: Ohio, Washington, Wyoming, and North Dakota. These states have special legislation in place where workers’ compensation coverage is only provided through a state program. For example, employers in Ohio must go through the Bureau of Workers’ Compensation (BWC) for workers’ compensation insurance by themselves or with a partner like a Professional Employer Organization. This difference means there is no open market for workers’ compensation insurance and the states may use separate class codes from the NCCI.

    Payroll

    While class codes impact your insurance rates based on risk factors, your payroll serves as the basis for your overall costs. Class code rates are assigned a dollar amount for every $100 of payroll, so your overall costs will naturally increase along with your total payroll.

    Of course, the rates will make a major difference in just how much you owe. Let’s imagine that you need workers’ compensation coverage for an employee making $50,000 a year. If that employee’s rate was $1.50 per $100, those costs would amount to $750 for that salary. Meanwhile, a higher rate of $15 per $100 will bump those premiums up to $7,500 for that one employee.

    Experience modification number

    Your business’ past also plays a part in your exact rates. Insurance companies factor in your overall workers’ compensation claims history and workplace safety into their calculations. In short, safer businesses with fewer, less severe claims will end up paying less than a similar business with more past incidents or infractions.

    The way insurance companies take your business’ experience and loss history into account is through your experience modification number, also known as a MOD. In general, agents and underwriters will look at your last three years of claims data, such as the type, severity, and frequency of claims to assess your overall risk level. The resulting MOD is then used as a multiplier in the following way.

    • Class code rate x (Annual payroll/$100) x MOD = Your business’ workers’ compensation premium

    If a business meets the expected losses for their type of work, they’d receive a MOD of 1.0 that won’t impact the calculation at all. Businesses with more losses than expected will have a MOD greater than 1.0, while businesses with a good claims history will have lower MODs. These MODs can drastically impact your overall costs. For example, a MOD of 0.8 will cut your premiums by 20%, while a MOD of 1.2 will increase them by 20%.

    Lower Your Workers’ Comp Costs With GMS

    Calculating your company’s workers’ compensation rates is a complex process, but that doesn’t mean lowering them has to be difficult for small business owners. GMS is a PEO that partners with businesses to save them time and money by taking on critical administrative burdens for them. That partnership includes utilizing cost containment and loss prevention strategies to help you lower your workers’ compensation rates.

    GMS partners with businesses of all sizes to minimize exposure through workplace safety and expert claims management. Our experts work directly with you to limit the potential for workplace injuries or illnesses through safety training and risk assessments. Meanwhile, we’ll be there to quickly and properly manage claims to control extra costs and protect your business.

    Ready to lower your workers’ comp premiums and focus on growing your business? Contact GMS today to workers’ compensation risk under control.

  • As a small business owner, it’s important to maintain a safe working environment. One of the ways that employers can create a safe workplace is to implement a random drug testing policy.

    Random drug and alcohol tests are a popular choice in workplaces because they discourage employees from coming to work while under the influence. Of course, there are plenty of rules and regulations that dictate some of the details around your drug testing policy, especially as more states legalize marijuana for medicinal use. Let’s break down what you should and shouldn’t do when designing and implementing a random drug testing policy for your business.

    Do: Notify And Educate Employees About Your Drug Testing Policy

    If you want to maintain a reasonable drug-free workplace and expect your employees to comply with mandatory drug testing, you need to notify them about the policy. Give your group of employees plenty of notice before the policy comes into effect and make sure to explain what their responsibilities are.

    There are multiple ways to advertise your drug policy, such as putting posters around the workplace and sending emails with educational resources. You’ll also want to hold a meeting to explain why you’re implementing a random drug testing policy and give your employees a chance to ask questions.

    Don’t: Skimp On Details

    A good drug testing policy is a thorough one. Your drug testing policy is there to protect you as well as your workforce, so make sure you have everything in writing. This means that your policy should cover several details, including:

    • Why you’re conducting drug tests.
    • What substances you’re testing for.
    • What testing method you’re using, and which company will be testing the samples.
    • The potential for false positives, if known.
    • How employees can appeal positive drugs tests and the details of your retesting policy.

    Do: Provide Proper Notice Of Upcoming Drug Tests

    While it’s tempting to think you can ask any employee to take a drug test at any time, your employees have the right to be given advance notice and to refuse a drug test if that notice has not been given. Most states require advance notice of drug tests, so it’s best to plan ahead and avoid potential problems.

    To protect both yourself and your employees, confirm in writing that the employee has been requested to take a drug test and make sure the correspondence is dated and logged. This process prevents employees from claiming they did not receive the request, or that they did not receive enough notice.

    Don’t: Ignore Local Laws

    Proper notice isn’t the only requirement that vary from state to state. You’ll have to tailor your policy to your location, as many states have their own laws regarding how to give notice to employees, what testing can be performed, and how employees can contest the results. The ACLU has an in-depth breakdown of each state’s requirements to help you keep your policy compliant.

    Do: Consult With An Attorney

    Before you talk to any of your employees about your drug testing policy, you’ll want to run it by a legal expert. Consult with an attorney to ensure that your policy complies with any relevant regulations. Between local, state, and federal laws, it’s best to leave some details to an expert. As such, attorney guidance can help you navigate tricky situations regarding marijuana laws, discrimination, and other factors that directly impact your drug testing policy.

    Don’t: Share Positive Tests Publicly

    Just because an employee tests positive doesn’t mean everyone should know. Your employees have a right to privacy and sharing that an employee has tested positive for drugs with their coworkers, other employers, or even their friends and family is illegal.

    Have internal policies in place to keep drug test results private between managers and their employees. These tests should also be stored securely to limit the chances that information and testing equipment are safe.

    Do: Clearly State The Consequences Of Violating Your Drug Policy

    It’s important that your employees know exactly what will happen if they fail a test. The exact consequences can vary depending on each policy. For example, you may choose to have a zero-tolerance attitude towards any substance if the employee works with heavy machinery or vehicles. However, a retail business may be more lenient with its disciplinary action.

    Your policy should also clearly state what happens following a positive drug test, and what rights the employee has to appeal the decision. Again, you should discuss with an attorney what’s considered reasonable based on the risk a non-sober employee presents.

    Don’t: Let Your Opinions Get In The Way

    Another key responsibility as a business owner is to be impartial during the drug testing process. You can’t let personal relationships with employees result in different consequences or processes, as this opens the door for discrimination cases. Every employee should be treated the same way and every meeting following a positive test should include an impartial third party.

    Do: Work with Experts to Build a Proper Drug Testing Policy

    Drug testing policies play a large role in keeping workplaces safe. However, it’s not easy to put together the proper policy and procedures to legally test your employees. That’s where GMS can help.

    GMS is a Professional Employer Organization that provides businesses with the HR tools and resources needed to help their business grow and succeed. Our experts can advise you on how to build a drug testing policy, as well as review your policy drafts to ensure that you and your employees are protected. Contact GMS today about how we can support your business through dedicated service and support.

  • A healthy and efficient workforce is an important part of any successful business. In environments where workplace injuries are more common, it’s absolutely essential.

    According to the Bureau of Labor Statistics’ most recent occupational injuries and illnesses survey, the manufacturing industry accounted for “15% percent of all private industry nonfatal injuries and illnesses.” Manufacturing safety meetings are a great opportunity to educate your employees on key safety guidelines and practices. With the right information, your company can help protect people from injuries, stay compliant, and reduce workers’ compensation costs.

    8 Essential Safety Topics for Manufacturing Companies

    When it comes to safety topics for the manufacturing industry, there are a variety of subjects that you should discuss with your employees. Here are eight key topics that your company should highlight at the next manufacturing safety meeting.

    Slips, trips, and falls

    The potential for slips, trips, and falls is arguably the biggest threat for manufacturing employees. OSHA estimates that these falls account for more than a third of fatal workplace injuries, making it a major priority for any manufacturing company. There are a variety of reasons for slips, trips, and falls in the workplace, including:

    • Wet or uneven surfaces
    • Ladders that are defective or set up improperly
    • Dangerous weather conditions
    • Crowded workspaces
    • Poor lighting
    • Human error

    While you can’t prevent every slip, trip, and fall, you can use safety meetings to educate employees about proper safety precautions. Train every employee on how to identify potential hazards and use protective equipment and fall protection systems. That education will not only help employees stay aware, but also know what to do to protect themselves and your business.

    Fire hazards

    A single fire can put both lives and property at risk. Your next safety meeting should highlight how fires start and what employees can do to prevent them. Start by breaking down relevant OSHA codes designed to protect against fire hazards. Employees should also learn about how they can adhere to any state or local fire safety laws to stay compliant and limit the chances of a fire.

     

    You should also educate workers about what to do in case a fire ever breaks out at your facility. Have an evacuation plan for your employees so that they know how to get to safety. Make sure that your employees know the following details:

    • The locations for any fire extinguishers and other prevention equipment and instructions on how to use fire protection devices.
    • The locations of all exits at your facility.
    • Available evacuation routes.

    Hazardous materials

    The presence of hazardous materials can create a number of safety issues. Safety meetings are a tremendous opportunity to educate employees about the dangers of hazardous materials and proper procedures when dealing with these substances.

    To start, share guidelines on how employees should label, handle, and store hazardous materials. Let employees know where they can access safety data sheets for any onsite chemicals. You should also give employees a thorough rundown on proper waste management. This discussion should include details on the following subjects:

    • Relevant hazardous waste regulations
    • Waste determination
    • Accumulation limits
    • Waste pickup procedure

    Finally, employees need to know next steps in case a spill, leak, or other form of exposure occurs. Discuss what can happen in these events and how to act quickly in these emergencies. If you really want to give employees some experience, you can perform a simulated emergency to help workers practice how to respond to potential spills and leaks.

     

    Safety equipment and Personal Protective Equipment 

    Personal protective equipment (PPE) won’t help if your employees don’t know how to use it – and that’s if they use it at all. The first step of this process is to ensure that your employees and acknowledge that using or wearing safety equipment and PPE is mandatory. As long as you make this equipment available to employees at no cost of their own, they must use safety masks, reflective vests, and any other safety gear.

     

    Of course, having that equipment and knowing how to properly use it are two different issues. Use your safety meeting as an opportunity to educate employees about how to properly wear, use, and store equipment. Employees should also know how to identify and report any equipment issues issues and next steps for disposal and replacement.

     

    Machine guarding

    According to OSHA, unguarded and inadequately guarded machinery leads to “18,000 amputations, lacerations, crushing injuries, abrasions, and over 800 deaths per year.” It’s essential to put the proper safeguards in place and educate employees about the dangers that industrial equipment can pose. Make sure that employees are aware of the risks associated with improper machine guarding and take the following steps to limit the potential for user error:

    • Train employees on how to correctly use any industrial equipment and follow proper procedures.
    • Review the machine guarding controls in place at your facility, which can include barriers, two-hand trips, and other safety measures.
    • Conduct a full walkthrough of your facility or facilities to highlight controls and potential risks.

     

    Lockout/tagout procedures

    Certain industrial equipment can release hazardous energy sources whether they’re in use or not. Educating employees about proper lockout and tagout procedures will help ensure that workers know how to safely depower machinery and limit the potential for workplace injuries.

     

    Use your manufacturing safety meeting to stress just how important it is to control hazardous energy and follow proper maintenance and service protocol at all times. If you don’t already, make sure you have written lockout/tagout procedures for every machine and present them during the meeting. While the exact procedures can vary, the following steps represent a typical process for lockout/tagout:

    1. Notify any employees who are affected by lockout/tagout.
    2. Shut down equipment in accordance to proper procedure.
    3. Isolate the energy source.
    4. Attach the appropriate lockout device.
    5. Release or restrain any energy stored in the machine.
    6. Verify the lockout with the proper personnel.

     

    Electrical safety

    Anytime equipment generates electricity, there’s a chance that someone can get electrocuted. Electrical accidents can range from minor shocks to major fires and fatalities. Regardless of the danger level, you’ll want to talk with your employees about these hazards.

     

    It’s important that employees don’t underestimate potential electrical safety threats. While electrical machinery is a more obvious hazards, exposed wires or improperly used power strips are also an issue. The following topics can help ensure that employees know how to behave around electrical equipment and why safety is so important.

    • Electrical safety requirements and procedures in the workplace.
    • Why electrical safety-related work practices are critical.
    • How to identify potential hazards.
    • The different types of electrical injuries.

     

    Ergonomic work areas

    It’s easy to overlook the importance of workplace ergonomics, but this topic plays a direct role in limiting injuries and stress. Both laborers and office team members can directly benefit from adapting processes, environments, and instruments around their physical needs. There are a variety of ways that you can educate employees about safe workplace ergonomics, including the following subjects.

    • Correct lifting techniques and best practices to handle repetitive motion.
    • Stretches and exercises that can help minimize physical risks when bending, lifting, or twisting.
    • Ways to adjust computer monitors, equipment, and other items to improve posture and avoid neck and back pain.
    • Proper posture to prevent long-term issues.

     

    Protect Your Business Through Manufacturing Safety Meetings

    Proper safety training can go a long way toward making your workplace safer and more efficient. However, it’s not always easy for small business owners to conduct these meetings and stay ahead of safety and compliance risks alone.

     

    Group Management Services partners with businesses to reduce risk and create a safer, more efficient work environment. Our experts can assist you with onsite consulting, jobsite inspections, accident and injury investigations, training, and safety education. Along with learning how to run a manufacturing safety meeting, you can also sign up for one of our workplace safety courses. Contact GMS today to talk to our experts about how we can make your business simpler, safer, and stronger with manufacturing safety training.

  • Employee layoffs are never easy, but factoring in the unemployment claims process can add even more stress and confusion to the situation. Unemployment benefits are designed to protect employees from unexpectedly losing a source of income. As an employer, you have certain responsibilities regarding unemployment, from maintaining accurate employee records to paying unemployment taxes. 

    Because these benefits can impact your business’ tax rates, it’s essential to understand these responsibilities and how small business unemployment claims impact your business. Let’s break down how unemployment insurance works and what you can do to manage future unemployment claims.

    How Does Small Business Unemployment Insurance Work?

    Unemployment insurance, also known as unemployment benefits, is a short-term, state-provided benefit that provides money to eligible employees who have lost their job. The specific eligibility requirements for employees can vary by state or due to COVID-19 unemployment insurance relief measures. However, eligible employees typically need to meet the following requirements.

    • They must have been an employee.
    • They lost their job through no fault of their own (e.g. if an employee was fired because of poor performance, they would not be eligible).
    • They should be completely or partially unemployed (an employee is considered partially unemployed if they worked less than a full week at the time they lost their job).
    • They’ve worked enough hours and earned enough wages in their base period, which is the first four of the last five quarters. For example, employees in Ohio are eligible for unemployment benefits if they’ve worked for at least 20 weeks and earned an average weekly wage of $247 during the base period. However, these specific requirements can vary by state.

    When an employee is laid off, they can file a claim to receive unemployment benefits. If the claim is approved, the employee will receive weekly payouts. The amount they receive is based on the state’s budget and how much they earned at their previous employer. 

    What are Small Business Owners’ Responsibilities Regarding Unemployment?

    The best way to be fully prepared for an unemployment claim is to understand your responsibilities as an employer. There are three key responsibilities that you’ll have as an employer.

    • Paying Federal Unemployment Tax Act (FUTA) and State Unemployment Tax Act (SUTA) taxes
    • Properly classifying employees
    • Keeping accurate and detailed employee records.

    Unemployment taxes

    Although small business unemployment insurance is a benefit provided by the state, employers fund this benefit with their taxes – even when they don’t have any unemployment claims against them. As a small business owner, it is your responsibility to pay a variety of taxes, including FUTA and SUTA taxes. 

    Federal Unemployment Tax Act (FUTA)

    The FUTA tax rate is 6%, which is applied to the first $7,000 in each employee’s wages – up to $420 per employee. However, filing your Form 940, the form used to report your annual FUTA tax, may allow you to receive a credit of up to 5.4%. This credit could make your payment as low as $42 per employee.

    Employers are responsible for paying FUTA taxes quarterly based on how much they owe. If a business owes less than $500 in a quarter, it can carry this balance forward until its liability is more than $500. Once a business hits the $500 threshold, the employer can pay FUTA taxes via the Electronic Federal Tax Payment System. These payments are due by the last day of the month after the end of the quarter.

    Although employers might be required to pay their FUTA taxes throughout the year, they still need to file their Form 940 annually by Jan. 31. For employers who paid all FUTA taxes when they were due, the filing date is extended to Feb. 10.

    State Unemployment Tax Act (SUTA)

    Whereas all employers pay a flat rate for FUTA taxes, SUTA taxes – its state-based counterpart – vary based on several factors.

    • Your state’s SUTA tax rate range
    • How long your business has been around
    • Your industry

    To find their SUTA tax rate, employers must register the business with their state. After registering, the state will assign them a new employer rate. This rate can be updated as often as every year based on the employer’s “experience rating,” which looks at how much the employer has paid in taxes and how much they’ve been charged in benefits. If an employer has employees who work in a different state than the business, they are responsible for paying SUTA taxes in those respective states as well.

    These taxes are also typically due quarterly. Employers must report wages and employee information to their state to determine their tax liability.

    One important factor to keep in mind is that when employees make a successful unemployment insurance claim against an employer, that employer’s SUTA taxes can increase significantly for up to three years. This rate increase is part of why accurate employee classification and records are essential responsibilities for a small business.

    Proper employee classification

    Employees are classified into different groups based on several different factors, including the number of hours they’re expected to work and if their role is permanent. Misclassifying employees can have serious penalties, such as paying fines to multiple government offices, FICA taxes, interest on unpaid taxes, and possibly wage claims as far back as three years. As such, it’s important to accurately classify each team member. The types of employee classifications include:

    • Full time
    • Part time
    • Special classes, which include interns, freelancers, and independent contractors

    A common concern regarding classification is knowing the difference between an employee and an independent contractor. While an employer may classify someone as an independent contractor, the IRS may not agree and penalize your business for noncompliance. The IRS looks at the degree of control an employer has over the worker and the type of relationship they have. For example, the IRS uses the following criteria to identify proper employee classification.

    • Employers can give specific, detailed instructions to employees regarding their work, as well as provide training and evaluations for how the employee completed their task. Independent contractors generally have more freedom to complete their tasks. 
    • Employees are usually reimbursed for work expenses, have a regular payment schedule, and don’t need to personally invest in work-related equipment. Independent contractors are commissioned as needed and responsible for their own equipment, which can give them a higher profit or loss risk.
    • Employees generally receive benefits, are hired for a long-term permanent role, and provide work that is considered key to the business. Independent contractors may be hired for short-term projects and provide services that aren’t considered critical to the business.

    These classifications determine the types of benefits the employee can receive as well as the expenses the employer is responsible for paying. For example, an independent contractor is not eligible to receive unemployment benefits, which also means that the employer isn’t required to pay FUTA or SUTA taxes for that employee. Not every type of employee is eligible for unemployment benefits, so properly classifying each employee will help determine their eligibility if they make a claim.

    Accurate employee and HR records

    Maintaining accurate and up-to-date HR records could also factor into the claims process. For example, a former employee files for unemployment benefits, which inherently implies they lost their job through no fault of their own. However, their supervisor had several documented discussions with the employee about poor performance and misconduct, and HR records indicate this person was fired. 

    Having these records on hand will be helpful should the employer choose to contest the claim. Additional records that could be relevant in the unemployment claims process include:

    • Personnel records, such as I-9 forms, performance reviews, etc. These records should be kept for one year if the employee is terminated, according to the Equal Employment Opportunity Commission.
    • Payroll records, which should be kept for at least three years according to the Department of Labor (DOL).
    • Timecard records, which should be kept for at least two years according to the DOL.

    Although there are federal guidelines for how long to keep certain records, check with your state for additional recommendations. For example, the Ohio Department of Job and Family Services require that employers keep their employee records, including hours worked and wages paid, for at least five years.

    Reporting new hires to the state can also help prevent fraudulent unemployment claims. Each state has an online portal where employers can submit new hire information, which includes the employee’s name, home address, social security number, and hire date. The state compares this information against unemployment benefit claims to determine if any claims are illegal.

    How Does the Unemployment Claims Process Work for Employers?

    After an employee files for unemployment benefits, the employer is notified by your state’s unemployment office. This office could be known as the Department of Labor, Department of Jobs, and Family Services depending on your location. Once notified, you’ll be asked to verify details about the employee and the claim, including:

    • The employee’s classification
    • The reason for the employee leaving

    After reviewing the details of the claim, it’s up to the employer to accept the claim or contest it.

    Not contesting an unemployment benefits claim

    The simplest response is not to contest an employee’s unemployment claim. Even though there are tax consequences to unemployment benefits, an employee is entitled to unemployment if they have a legitimate claim. Be sure to review all the information on the claim to make sure it’s accurate and correct against your records. If so, it’s best to comply since fighting against a legitimate claim will only cost you more time and money.

    Contesting a claim

    While you shouldn’t take action against legitimate claims, there are several instances when it makes sense to contest a claim:

    • If an employee has submitted false information on their claim
    • If their classification doesn’t allow them to receive unemployment benefits
    • If they quit or were fired for performance or misconduct

    If any of these reasons apply, contest the claim quickly and within your state’s fact-finding timeframe – usually 10 days. The employer will need to provide accurate documents to support any information that opposes the details submitted with the claim, including the correct employee classification or proof that the employee was fired with cause. 

    After contesting the claim, all information will be reviewed and both parties will receive notification of whether the claim is allowed or denied. Keep in mind that in either case, both parties have a period of time to appeal the decision.

    Protect Your Business With Unemployment Claims Management

    Managing small business unemployment claims can be confusing and time consuming. Considering your responsibilities as an employer – such as paying FUTA and SUTA taxes, correctly classifying employees and maintaining accurate records, and monitoring and responding to unemployment claims – it’s possible that a small oversight can lead to significant consequences for your business.

    If you’re looking for an easier way to handle the unemployment insurance process, partnering with the right PEO can help you protect your business. Contact GMS today to talk to our experts about how we can take the stress out of managing unemployment claims and other critical HR functions.

  • I receive this question very often, especially at the beginning of each year. The IRS requires any company with a 401(k) plan to conduct annual compliance testing.

    The testing is conducted after the plan’s year-end. For most plans, this is 12/31.

    Why is plan nondiscrimination testing important?

    According to Transamerica Retirement Services, “Nondiscrimination testing mandates were added to the rules governing 401(k) plans to ensure that these plans are not designed to economically benefit only highly-paid personnel, but are fair for all employees. Not meeting these mandates, or failing to correct any failed year-end compliance test, could mean substantial penalties and possibly even disqualification of the plan’s tax-exempt status.”

    Simply put, 401(k) testing is required to make sure all employees benefit from the plan equally, regardless of their income level. When plans aren’t tested or fail the test, or when plan problems aren’t corrected, the company can be penalized.

    How does 401(k) testing work?

    401(k) testing involves examining the benefits received by all employees. For the purposes of these tests, employees are grouped into three categories:

    • Key Employee – anyone with at least a 5% ownership stake in the company (either last year and/or current year) or a direct relative (spouse, parent, or child) of someone with a 5% ownership stake.
    • Highly Compensated Employee (HCE) – for 2013 testing, anyone who has made $115,000 in 2012.
    • Non-Highly Compensated Employee (NHCE) – anyone that doesn’t fall into the other two categories.

    *Please note that all Key Employees are also considered Highly-Compensated Employees, but not all Highly-Compensated are considered Key Employees.

    What do the tests entail?

    These two tests are probably the ones that effect employers the most.

      1. Average Deferral Percentage Test (ADP)

    This test takes the average deferral rate of the HCE and compares it to the average deferral rate of the NHCE. The HCE can only contribute so much more than the NHCE.

    If you are a HCE and contribute more than the maximum allowed, then you could be subject to a refund or the company might have to make contributions into the NHCE accounts.

      1. Top-Heavy Test

    This test is a little different, in that it is always conducted for the upcoming year. The numbers used are from 12/31/12 to determine if you are Top-Heavy for 2013.

    Key Employees cannot control more than 60% of the entire plan’s assets. If they do, the company will have to make up to a maximum of a 3% non-elective contribution to any eligible employee of the company—even those who aren’t participating in the plan.

    How do I make sure I’m abiding by the rules?

    You need to make sure you are getting the proper guidance from your retirement provider. You also need to take ownership of your plan. Additional Plan Data forms are extremely important, because things change from year to year. It’s important to have the most up-to-date information so that your retirement provider can correctly conduct your testing.

    GMS, as a PEO company, is able to offer clients our 401(k) plan. We assist with administering the testing. Instead of just handing you the results, we will go over them and provide advice. Every company is in a different situation.

    Are you getting the right guidance on your 401(k) plan?

    “Numbers and Finance,” © 2011 Ken Teegardin, used under a Creative Commons Attribution-Share Alike 2.0 Generic License.

  • If your employee injures a co-worker or customer while on the job, your company might be on the line.

    Employers can face negligent hiring charges if a hiring decision results in an employee injuring or harming any person they come in contact with through the job. Not only can negligent hiring result in exorbitant financial costs, but it can also damage the organization’s reputation.

    According to Clint Robison, a partner at Hinshaw & Culbertson, employers lose negligent hiring cases 75% of the time, and the average settlement of such claims is $1 million.

    Negligent Hiring

    There are many elements needed to form the basis of a legal action for negligent hiring or retention. They include:

    • Existence of an employment relationship.
    • Employee’s incompetence.
    • Employer’s actual or constructive knowledge of such incompetence.
    • Employee’s act or omission causing plaintiff’s injuries.
    • Employer’s negligence in hiring or retaining the employee as the proximate cause of plaintiff’s injury.

    Does Outsourcing HR Functions Mean You Lose Control of Your Business?

    Duty of Care and Foreseeability

    The key standards assessed by the courts in a negligent hiring claim are duty of care and foreseeability.

    Duty of Care

    For the employer, there is “the requirement to act toward employees and the public with reasonable watchfulness, attention, caution, and prudence as dictated by the circumstances. If an employer’s actions do not meet this standard of care, then the acts could be considered negligent, and any damages resulting may be claimed in a lawsuit for negligence”.

    The courts commonly assess two things when determining an employer’s duty of care:

    1. Does the employer owe a duty of care?
    2. How much care does the employer owe?

    Employers are expected to take reasonable care .The level of care depends on the nature of the job and the severity of the risk to third parties.

    Foreseeability

    An act is reasonably foreseeable if the employer knew or should have known that the employee had a propensity to engage in similar criminal, wrongful, or dangerous conduct.

    Negligent Hiring Cases: Employer Found Guilty

    There are vast amounts of negligent hiring cases in which the employer was found guilty.

      • A nursing home was found liable for $235,000 for the negligent hiring of an unlicensed nurse with numerous prior criminal convictions who assaulted an 80-year-old visitor. (Deerings West Nursing Center v. Scott)
      • An employee with a criminal record sexually abused a child and his employer was found liable for $1.75 million for negligent hiring and retention. (Doe v. MCLO)
    • A vacuum cleaner manufacturer was found liable for $45,000 because one of its distributors hired a door-to-door salesperson with a criminal record who raped a female customer in her home. (McLean v. Kirby Co.)

    Compliance with the EEOC

    Employers should demonstrate due diligence and the duty of care by performing background checks on potential employees. Criminal background checks can be used as tools for employers to determine foreseeability with regard to employment decisions.

    However, the Creative Commons Attribution 2.0 Generic license.

  • I got a call last week from a client who has only been with us for a few months. He started back in July of 2012 and just received his first few invoices from the new year. He was pretty upset that his state unemployment tax had gone up substantially compared to November and December. Being in the payroll business for about 20 years, and with this being about the tenth of these calls I’ve taken in January, I knew where this conversation was going to lead.

    The first question I ask is “Did you know about the State Unemployment Tax Authority (SUTA) wage cap?” In Ohio, the employer is only charged SUTA tax on the first $9,000 in earnings for each employee.

    In his case, all of his employees had earned that much by September. Except for his one new hire in October, his employees had already capped out and met the wage limit. In November and December he was only paying tax on one employee. In January, everyone starts from ground zero and is taxed until they reach that $9,000 limit again.

    The second thing we discussed was the number of claims he had back in 2010 and 2011. Yes…those claims stick with you for eternity. It’s like your bank account: once you write that check, the money is gone.

    I reviewed the list of claims from JP, our claims administrator. 2010 was a bad year for our client, as it was for almost everyone, and he had to lay off four employees. Our client told me that he brought them back to work after about eight months. But by then, then the damage was already done. He had just under $20,000 charged to his unemployment account. His unemployment rate went up in 2010 from 3.2% to 7% in 2013.

    Out client also mentioned something that really bothered me. He said that someone filed a claim, but he didn’t have time to fight it, so he let it go through. That was in 2011, and that claim had hit his account for $4000, and was still coming out. Because you only have 21 days to appeal a claim, he was out of luck.

    Now that he’s with GMS, he doesn’t have to worry about this. We take care of managing the claim from start to finish, with a minimal amount of his time.

    Do you know what your rate is? Do you know why it’s 3% or 8%? Do you know what your cost will be in 2013? Have you heard about the proposed federal legislation changed for 2014?

    Check back on our blog for a follow-up post on these topics, and share your thoughts in the comments below.

    “Finding Company Tax ID,” © 2010 Calita Kabir, used under the Creative Commons Attribution-ShareAlike 2.0 Generic license.

  • Do any of these sound familiar?

    • Losing good employees to competitors.
    • A cranky work environment.
    • Excessive workplace injuries.
    • Out-of-control healthcare costs.
    • Ridiculously high unemployment insurance costs.

    If you’ve been dealing with any of these issues, no doubt you’ve come to the conclusion that HR is more than just a luxury enjoyed at big corporations. HR is a necessity for small and medium-sized businesses, too.

    It’s possible that you have HR problems. What are you going to do?

    HR Outsourcing

    You’ve heard about HR outsourcing, but maybe you don’t know what it entails or how to learn more about it. How can you tell if it is right for your company?

    You’ve heard about Professional Employer Organizations (PEO). But maybe it sounds a little shaky since you don’t know of anyone who’s using a PEO. How popular are PEOs?

    You might be surprised.

    The HR outsourcing industry has grown from $61 billion in 2002 to $103 billion in 2007 and is projected to grow to $162 billion in 2015. The largest chunk of that is the PEO industry.

    Professional Employer Organizations (PEO)

    PEOs work with small businesses to help reduce time and cost when it comes to the things that an HR department would do at a large company. If you walked into a large corporation with thousands of employees and asked to see their HR department, what do you think you would see? The department would include a payroll department, a benefits department, a risk management department and actual HR manager or department. You might even find a wellness department to work hand-in-hand with the benefits department.

    These huge companies have tons of money to throw at problems and lots of high-priced attorneys to get them out of trouble. Yet they still keep all of these departments active. They know how important HR can be.

    Big corporations realize they need HR departments. It’s even more crucial that small businesses understand that they should have access to these essential HR services.

    Specializing in Small Business HR

    Not all small businesses have the means or the resources to keep all of these HR departments in-house, and that’s when they should begin looking at outsourcing their HR.

    A small business is already probably outsourcing their payroll, their benefits and their Worker’s Comp administration to different companies. All of those departments need to be able to share information with each other. If you can have one vendor do all of that for you, allowing you to focus on growing your business, wouldn’t you? What if you could do that while saving money as well? What if in addition to saving money, you could also offload a lot of your tax and employee liability in the process? Can you see why this industry is growing?

    What about compliancy issues? In the last five years, have you seen an increase or a decrease in the amount of regulations imposed on your business? What about the Affordable Care Act? Do you need to be compliant? If not now, will you someday? What does that mean to you? Do you know who to turn to find out?

    There are tons of HR questions that small businesses have, and PEOs—like GMS—have the answers. Ask us anything.

    ***

    “Footbridge to Canary Wharf,” © 2008 Stephen McKay, used under Creative Commons Attribution-Share Alike 2.0 Generic License.