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  • The Alabama Department of Revenue’s Income Tax Administration has recently announced three rules set to reshape the landscape of overtime wages and withholding taxes. With an effective date of December 3rd, 2023, these changes usher in a new era for employers and employees, significantly altering how overtime wages are handled for tax purposes.

    Diving Deeper Into The Law

    One of the most notable changes comes in the form of Ala. Admin. Code r. 810-3-72-.01, where the Department of Revenue has amended existing rules to exclude the entirety of overtime wages paid to full-time hourly employees from Alabama withholding tax. This shift marks a departure from the previous requirement that employees engaged in exempt and nonexempt work have either all or none of their earnings taxed. The amended rule, effective from January 1st, 2024, through June 30th, 2025, does not apply to salaried or alternative payment methods.

    Qualifications And Definitions

    To provide additional clarity for employers, Ala. Admin. Code r. 810-3-72-.02 introduces new definitions and qualifying information. The rule defines an hourly wage-paid employee and clarifies that gross income will not include amounts received for hours worked over 40 per week, even if paid at the regular rate. In addition, the exclusion of paid time off (PTO) and holiday pay from determining hours worked over 40 per week adds an extra layer of nuance to the exemption calculation.

    The rule also has exceptions for salaried employees, those compensated through alternative methods, and those receiving commissions and bonuses in addition to an hourly wage. These distinctions aim to provide a comprehensive framework for employers navigating the complexities of overtime wage calculations.

    Reporting Requirements

    Alabama employers now face enhanced reporting requirements, as outlined in the Department of Revenue’s third rule, amending Ala. Admin. Code r. 810-3-74-.01. Beginning January 1st, 2024, employers must report the total amount of exempt overtime wages for the filing period and the total number of employees who received such wages. These requirements apply to monthly and quarterly filings (via Form A-6 or Form A-1, respectively), placing an increased burden on employers to ensure accurate and timely reporting.

    Embracing Technological Advances

    Acknowledging the need for efficient reporting, the Department of Revenue’s third rule allows employers to comply with the new reporting requirements electronically. Encouraging the use of electronic filing for Form A-6 and Form A-1, employers can now seamlessly report total exempt overtime wages and the number of employees receiving such payments through the Department of Revenue’s website.

    Closing The Compliance Gap

    Alabama’s recent change to overtime wage regulations introduces a paradigm shift for employers, requiring meticulous attention to compliance and reporting. The amendments to withholding tax rules underscore the need for businesses to stay on top of evolving legislation. As these changes take effect, small business owners face the challenge of navigating intricate reporting requirements, which is where a professional employer organization (PEO) comes in. PEOs like GMS specialize in managing HR-related tasks, ensuring compliance with ever-changing laws, and providing valuable support in navigating complex regulations. By partnering with GMS, small business owners in Alabama can streamline their operations, reduce administrative burdens, and focus on what matters most – growing their business in a dynamic and competitive landscape. Contact GMS’ compliance experts today.

  • Let’s be honest: Managing health care can be challenging and expensive for your business. You might think about putting it on the back burner, but with health care costs consistently rising, you can’t afford to wait. In addition to a fair paycheck, your employees expect competitive benefits to take care of themselves and their families. Understanding what your employees want and need is a big part of managing health care successfully, but the complexity lies in ensuring compliance.

    Navigating health care can be a challenging endeavor, especially for small businesses. It involves grappling with ethical considerations and data privacy concerns, making compliance a growing challenge. In this context, non-compliance could result in substantial fines and potentially lead to legal ramifications, a scenario you want to avoid.

    Partnering with a professional employer organization (PEO) like GMS can be a great option to alleviate some stress. GMS offers an excellent solution for obtaining comprehensive health care coverage for your team while maintaining compliance. However, if you are determined to handle health coverage independently, there are essential things to consider.

    Health Care Compliance

    Under the Affordable Care Act (ACA) guidelines, businesses with 50 or more full-time employees or the equivalent in full-time equivalents (FTEs) must provide health insurance coverage. In addition, you must provide this coverage to all eligible employees within a maximum waiting period of 90 days. Failure to comply can lead you and your business to face hefty penalties.

    You’ll also need to provide employees with a comprehensive Summary of Benefits and Coverage (SBC). The primary objective of the SBC is to offer a clear and detailed explanation of what the health plan encompasses, as well as the associated costs. This empowers your team to make well-informed decisions concerning their health care choices.

    Suppose your business fails to meet these requirements, and one or more of your full-time employees receive premium tax credits or other government assistance to purchase coverage on the Health Insurance Marketplace. In that case, you may be subject to the Employer Shared Responsibility Payment (ESRP). This payment is a financial penalty imposed on the company to ensure large employers play their part. The ESRP ensures that large employers provide access to affordable health care coverage for their employees and prevents them from shifting the cost of health care coverage to government-subsidized programs.

    • Note: Businesses with less than 50 full-time or FTEs are not subject to ESRP.

    Compliance For Small Businesses

    You may be thinking health care compliance doesn’t apply to smaller businesses. While it’s true that you’re not obligated to offer health insurance, it shouldn’t be overlooked as it can be a valuable tool in recruitment and retention efforts. If you decide to provide health insurance for your staff, it’s crucial to customize your coverage to match your team’s specific needs while ensuring compliance with the regulations and protections outlined in the Americans with Disabilities Act (ADA). A general framework for achieving this is outlined below:

    1. Use anonymous surveys. Seek input from your team regarding their health care needs and preferences by using anonymous surveys. Anonymity can help ensure that individuals feel comfortable providing honest and open feedback without fear of potential discrimination.

    • Focus on health care needs. Frame your questions to inquire about specific health care needs and preferences rather than individual health conditions. For example, you might ask your employees about preferred types of coverage, particular services they value, or what aspects of their current plan they find beneficial or lacking.
    • Avoid discrimination. Be careful not to ask questions that directly or indirectly solicit information about an employee’s medical condition or disability. Questions about medical histories, specific conditions, or disabilities are inappropriate and can violate the ADA.
    • Consult legal or HR experts. If you have doubts about the legality or sensitivity of your survey questions, consider consulting legal experts or human resource professionals who are well-versed in ADA and ACA compliance. They can help you craft surveys that are both effective and legally sound.

    2. Educate your team. Ensure your employees know their responses will remain confidential and used solely to improve the company’s health care offerings. This can help build trust and encourage participation. 

    3. Review and adjust coverage. After collecting anonymous feedback, use the information to assess your current health care coverage and identify potential areas for improvement. Seek out insurance plans that align with the stated needs of your employees. 

    Traditionally, small-group insurance has been a primary option for small businesses providing benefits to their team. However, several other options may be suitable for your business, including self-funded, level-funded, and health reimbursement arrangements (HRAs).

    Supplemental Insurance

    To attract and retain top talent, every business owner should understand the importance of providing a comprehensive benefits package. However, in today’s increasingly competitive labor market, solely offering traditional group health insurance may no longer suffice. This is where supplemental insurance plans come into play.

    Supplemental insurance plans, often referred to as voluntary benefits plans, are not mandatory under the law but have become a crucial component of a well-rounded benefits package. These plans offer a host of valuable benefits that can complement your standard group health insurance, making them an attractive proposition for both employers and employees alike.

    At GMS, we recognize the significance of offering diverse and tailored health coverage options to meet the unique needs of your workforce. When you choose to partner with us, you empower your employees with the flexibility to select supplemental health insurance that suits their individual requirements. These supplemental insurance plans can include, but are not limited to:

    • Life
    • Dental
    • Vision
    • Accidental and critical illness
    • Long and short-term disability
    • And more!

    By incorporating these supplemental insurance plans into your benefits package, you empower your employees to make choices that align with their unique health care and financial needs. This not only sets your organization apart as an employer of choice but also demonstrates your commitment to the well-being and financial security of your workforce, fostering a loyal and contented team. Contact us today and let us find a plan that meets your team’s needs.

  • In an era where streaming services have become an integral part of our lives, there’s something captivating about having all your favorite shows and movies in one central location. Imagine having access to all the content you love, organized on one platform. It’s not just convenient; it’s also efficient. In the world of business, a similar revolution is happening through the professional employer organization (PEO) model. PEOs consolidate HR services, making them easily accessible to small business owners.

    Continue reading to explore the PEO model and how it operates as the Netflix of HR services, offering many benefits for small business owners.

    What Is A PEO?

    To understand the PEO model, we first need to grasp its core concept. A PEO provides comprehensive HR services to small and medium-sized businesses. These services include payroll management, employee benefits administration, compliance assistance, and more. Essentially, PEOs serve as a one-stop shop for all your HR needs.

    Much like your favorite streaming platform, a PEO offers a variety of “shows” (services) bundled together, ensuring you get access to all the essential HR functions without the hassle of dealing with multiple providers.

    Streamlining HR Operations

    When you subscribe to multiple streaming services, managing different subscriptions, logins, and content libraries can be overwhelming. The same applies to small business owners managing various HR functions. By partnering with a PEO, you can streamline your HR operations in a similar way. PEOs consolidate payroll, benefits administration, employee onboarding, and more into one unified platform. This simplifies the HR process, reducing administrative complexities and improving efficiency.

    Cost-Efficiency

    One of the most compelling aspects of streaming services is the cost-efficiency. However, as more streaming services have launched, you spend more time and money watching different shows on different platforms. Wouldn’t it be more efficient and cost-effective if you could consolidate all your streaming platforms into one?

    Similarly, small businesses that partner with a PEO can experience significant cost savings. PEOs leverage their buying power to negotiate better rates for employee benefits and workers’ compensation. This means that small business owners can provide competitive benefits to their employees at a more affordable cost. It’s like getting premium content at a discounted rate, making your business more attractive to top talent.

    Expertise And Compliance

    Streaming services offer curated content, ensuring that subscribers get the best entertainment options without the hassle of searching. Similarly, PEOs are experts in HR services, guaranteeing that your business complies with the ever-evolving labor laws and regulations.

    PEOs keep you up-to-date with the latest HR trends, best practices, and legal requirements, which can be a complex task when managing HR in-house. This expertise minimizes the risk of costly mistakes, providing peace of mind for business owners.

    Scalability

    Streaming platforms adapt to your needs. If you need more screens or higher resolution, you can easily upgrade your subscription. The PEO model is just as scalable. As your business grows, a PEO can seamlessly adjust its services to accommodate your changing HR needs. Perhaps when you first partnered with a PEO, you only had one employee, so offering benefits wasn’t a top priority. Now, you’ve gained 30 employees, and suddenly, offering benefits is essential to attracting and retaining top talent. We can now provide you with various benefits packages.

    Whether you’re hiring more employees or expanding to new locations, a PEO can scale its services accordingly, ensuring that your HR remains efficient and compliant. It’s like upgrading to a premium subscription on your favorite streaming service, with added benefits and convenience.

    Look No Further

    Much like the joy of having all your favorite content in one place, the PEO model offers a consolidated, efficient, and cost-effective solution for managing HR services. Small business owners can benefit from streamlining their HR operations, cost savings, expert guidance, and scalability, all while ensuring compliance with employment laws.

    Partnering with a PEO like GMS simplifies your business, enhances efficiency, and delivers an exceptional HR experience. So, why juggle multiple HR providers when you can have it all in one place? Make your business HR-efficient and watch it grow with the power of a PEO. We’re one click away – contact us today to learn how we can be your one-stop solution.

  • In a move that will impact businesses across North Carolina, the state’s General Assembly recently approved a budget for the period from July 1st, 2023, through June 30th, 2025. One of the most notable changes in this budget is a set of modifications to workplace legal compliance. Governor Roy Cooper has allowed the budget to become law without his signature. Continue reading to explore the key changes that businesses and employers in North Carolina need to be aware of in terms of safety citations, adopting new standards, and the impact on local wage and hour laws.

    Safety Citation Timing

    Effective October 1st, 2023, the North Carolina Department of Labor (NCDOL) will have six months following the occurrence of any Occupational Safety and Health Act of North Carolina (OSHANC) violation to issue a citation to employers. This adjustment brings the OSHANC statute of limitations back in line with most states, those with their own safety and health laws, and those where the federal government administers these laws.

    Before this change, NCDOL had the authority to issue citations for violations dating back to the 1970s, as long as they were issued within six months after NCDOL initiated an inspection. However, this modification limits citations to violations occurring within six months of the citation being issued. Employers should now carefully consider the timing of their inspections and ensure compliance within this window.

    Adopting New Standards

    The budget eliminates an exception in state law that allowed NCDOL to adopt occupational safety and health standards identical to federal regulations without the usual process of public notice, comments, hearings, and oversight by the North Carolina Rules Review Commission. Starting July 1st, 2023, all changes to OSHA standards adopted by NCDOL will be subject to this oversight.

    This change aligns with federal law, which requires state plans to maintain standards “at least as effective” as federal OSHA standards. It also means that employers may have a basis to challenge the legality of any OSHA standard adopted by NCDOL after July 1st, 2023, that does not go through the standard rulemaking process.

    Local Wage And Hour Laws

    Perhaps one of the most impactful changes for employers is the budget’s statement that policies outlined in the North Carolina Wage and Hour Act now supersede and preempt any local government ordinances, regulations, or policies pertaining to the compensation of employees. This includes wage levels, hours of labor, payment of wages, benefits, leave, and the well-being of minors in the workforce.

    While local governments can still regulate their own employees and enact measures to comply with certain programs, they are barred from adopting minimum wage, overtime, or paid leave laws that differ from state law. This move eliminates the potential for a patchwork of local wage and hour laws, which can create compliance challenges for employers.

    It’s important to note that any modifications to North Carolina’s minimum wage, overtime, or paid leave laws must be enacted statewide, as the state’s constitution already prohibits the General Assembly from enacting local laws regulating labor matters.

    Your Guiding Light

    North Carolina business owners often find themselves in unfamiliar terrain in the ever-shifting landscape of workplace regulations and legal compliance. Navigating the complex maze of state-specific laws can be daunting. However, there’s a guiding light in the form of a professional employer organization (PEO). Picture a PEO as your customized compass, finely tuned to navigate North Carolina’s unique regulatory waters. It’s your trusted ally, ensuring you stay compliant and sail smoothly through the intricacies of state laws. With a PEO like GMS by your side, you’re not just ticking checkboxes; you’re unfolding the sails of your business towards untapped horizons. It’s not just assistance; it’s a transformative voyage toward unlocking North Carolina’s business potential. So, don’t merely comply – transcend and let a North Carolina-focused PEO be your guiding star on this journey. Get a quote from us today.

  • Ensuring strict adherence to HR laws and regulations is a non-negotiable for small business owners; however, many employers find this process daunting. HR compliance is a complex and ever-evolving process that varies from state and city levels. Additionally, the rise of remote work expands many businesses’ geographical reach, resulting in more intricate multi-state compliance needs. Moreover, since laws and regulations are subject to change, you, as a business owner, must remain continuously vigilant to stay compliant.

    Navigating these intricacies is often an overwhelming and frustrating feat. It can be particularly challenging for small businesses and startups that often rely on limited staff and delegate HR to individuals who are unfamiliar with its complexities. Nevertheless, failing to adhere to the laws and regulations can lead to substantial financial and reputational repercussions. While there is no one-size-fits-all approach to avoiding non-compliance penalties, there are a few common areas businesses tend to struggle with.

    What Is HR Compliance? 

    HR compliance aligns your company’s policies and procedures with a network of federal laws, such as the Fair Labor Standards Act (FLSA) and the Americans with Disabilities Act (ADA), combined with state and local labor laws. These laws outline the obligations and responsibilities you must uphold as an employer. HR compliance encompasses various aspects, including hiring, worker classification, data privacy, and security.

    Failure to adhere to or purposefully neglecting HR compliance can lead to severe consequences for your business. Substantial financial penalties, not to mention time and resources spent on legal fees, will be lost. Beyond financial implications, the reputational impact on your business can be detrimental and lead to an extensive loss in revenue.

    In other words, following HR regulations isn’t just a legal obligation but a safeguard for you, your business, and your employees. It ensures proper measures are in place to avoid legal troubles, financial setbacks, and reputational harm.

    Common HR Compliance Pitfalls

    Although HR compliance varies based on location, company size, and industry, there are a few more universal areas companies tend to struggle with, including:

    Hiring practices

    The laws enforced by the Equal Employment Opportunity Commission prohibit discrimination across all facets of employment. As an employer, ensuring your hiring staff is well-informed about crafting inclusive job postings and understanding the permissible and impermissible questions during the hiring process is crucial. Severe penalties, including lawsuits and fines, can be levied against businesses that discriminate based on factors such as race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age, disability, or genetic information. Adhering to these regulations is not only the law but essential to foster a fair and diverse workplace.

    Pay inequity

    Performing regular salary audits is necessary to guarantee pay equity for employees. Many states, including Ohio, California, Washington, Nevada, and Colorado, to name a few, have implemented legislation to prevent discriminatory pay practices. However, as businesses expand and internal changes occur, such as transfers and promotions, gender pay disparities can inadvertently emerge. Conducting systematic and consistent salary reviews helps identify and rectify gaps, ensuring a fair, equitable, and compliant compensation structure within your organization.

    Health coverage

    The Affordable Care Act’s Employer Shared Responsibility Provision mandates that businesses with 50 or more full-time employees provide affordable health insurance options to employees. This includes ensuring coverage for dependents up to age 26. Failure to meet this requirement can lead to penalties if employees receive premium tax credits through the Health Insurance Marketplace.

    Policies and procedures

    Another significant but easily avoidable challenge stems from outdated or nonexistent employee guidelines. While employees share the responsibility of adhering to laws and regulations, the liability falls on you, as a business leader, to provide comprehensive policies and procedures.

    Unclear guidelines can lead to misunderstandings and misinterpretations, potentially resulting in actions that breach HR regulations. Therefore, ensuring up-to-date and transparent employee guidelines reinforces adherence and minimizes the risk of legal and regulatory infringements.

    Training and orientation

    Additionally, implement a comprehensive onboarding process and offer continuous training for your employees. This is crucial to guarantee your team understands your company’s policies and procedures. Inadequate training can expose your business to vulnerabilities and potential lawsuits in the future.

    Employee misclassification

    Accurate employee classification is essential due to its direct influence on taxation. Distinct categories such as independent contractors, salaried workers, and hourly employees are subject to varying tax regulations. Incorrectly categorizing full-time or hourly employees as contractors deprives workers of their rightful compensation and protections. Even unintentional misclassification holds serious consequences, including substantial fines.

    Inaccurate payroll and tax payments

    Ensuring accurate and timely payment for your staff is an absolute necessity. Failing to do so exposes your business to wage claims that can have detrimental effects, impacting your financial stability and reputation. Additionally, to avoid audits and fines, it’s essential to file payroll taxes accurately.

    Workers’ compensation

    Workers’ compensation is an “exclusive remedy,” meaning that an employee injured on the job cannot sue their employer immediately following an incident. In the event of an on-the-job accident, it’s imperative that managers and staff report the incident and subsequently submit the necessary claims immediately to avoid potential lawsuits.

    Additionally, maintaining current knowledge about accident trends within your industry is paramount. By staying informed, you can proactively support your staff through safety programs and training initiatives, reducing the likelihood of injuries.

    Termination

    In numerous states across the United States, the concept of “at-will employment” reigns supreme. This legal principle grants employers the authority to terminate employees at their discretion, without needing a specific reason, as long as the termination does not violate any laws or regulations.

    However, it doesn’t mean that employees don’t have rights. There are still requirements you are responsible for as an employer. For example, many states, such as Alabama, Alaska, Arizona, California, and Delaware, recognize good faith and fair dealing, meaning you can’t fire an employee to avoid paying retirement benefits or a hefty commission. Additionally, this safeguards employees from being fired from a place of malice. Obeying local laws protects your business from wrongful termination lawsuits and helps create a trusting and respectful work environment.

    Data privacy and security

    As an employer, your employees trust you with their sensitive information. With the shift towards electronic storage of this information, implementing data security has become integral to safeguarding your employees’ data. By ensuring a strong security system, you fulfill your responsibility to protect sensitive information and mitigate the risks associated with unauthorized access and data breaches. In the unfortunate event of a breach, having a detailed action plan allows for a swift and organized response, helps minimize the potential damage, and swiftly rectifies the situation.

    Maintaining compliance is an ongoing and dynamic process that requires time, effort, and continuous refinement of internal policies and procedures. Regulatory landscapes rapidly evolve, and you need to adapt in order to ensure your business remains in line with legal requirements. Maintaining a robust system of regular internal reviews, policy updates, and staying up-to-date with any changes in laws and regulations are essential to protecting your business effectively.

    How GMS Can Help

    You’re an expert in your field but probably not an expert in human resources. Ignoring the need for effective HR management is a recipe for disaster. Deficiencies in any HR function, such as payroll, workplace safety, or performance management, could result in:

    • Non-compliance fines
    • Miscommunication between departments
    • Slow productivity growth

    Professional employer organizations (PEOs) such as GMS can perform human resource audits to review your current HR policies, procedures, documentation, and systems. By conducting an HR audit, we can help your business reduce costs and improve its HR functions in a fraction of the time. In addition, HR audits can help assess compliance with ever-changing rules and regulations to minimize legal and regulatory liability. Contact us today, and let us help take care of the administrative tasks so you can focus on the areas of your business you enjoy most!

  • Wekiva Springs Hospital, a prominent behavioral health and substance disorder facility in Florida, recently found itself under the spotlight due to alarming reports of workplace violence. The U.S. Occupational Safety and Health Administration (OSHA) shed light on a distressing investigation that revealed a staggering 182 alleged incidents of workplace violence in 2022 alone, with a striking 70% requiring the involvement of the police. These heart-wrenching incidents not only resulted in hospital workers enduring severe injuries, such as broken bones and concussions, but also showcased the urgent need for fortified measures to protect employees in the face of unpredictable dangers.

    As one incident unfolded, a patient repeatedly assaulted an employee, relentlessly smashing their head into an air conditioning unit. In response to these concerning findings, OSHA cited Wekiva Springs Hospital for a serious violation, accusing the facility of failing to provide a workplace free from safety hazards capable of causing physical harm or even death.

    The proposed fines of $15,625 sent a message that safeguarding employees from workplace violence is not a matter to be taken lightly, urging organizations to fortify their defenses and implement effective preventive measures.

    Wekiva Springs Center

    Wekiva Springs Center provides behavioral health and substance abuse treatment to adults and seniors in Jacksonville, Florida, and surrounding areas. Their continuum of care offers inpatient and outpatient programming to accommodate the severity of each patient’s condition. Every patient sees a primary therapist and attending physician regularly. Their approach to wellness is customized, holistic, and multidisciplinary.

    The Importance Of Workplace Violence Measures

    In today’s ever-evolving professional landscape, ensuring the safety and well-being of employees has become an utmost priority for organizations. Among the numerous concerns that demand attention, workplace violence is a critical issue that cannot be overlooked. There are approximately 396,00 assaults that occur in workplaces across the country every year.

    The significance of implementing robust workplace prevention measures cannot be overstated. Beyond preserving physical safety, these measures safeguard the essence of a thriving work environment – a place where individuals can excel, collaborate, and innovate without fear. By proactively addressing and mitigating potential risks, organizations protect themselves from harm and foster a culture of trust, productivity, and unity.

    A workplace that prioritizes violence prevention not only attracts and retains top talent but also creates a resilient foundation for long-term success. By recognizing the importance of these measures, you take the crucial step toward building a workplace where everyone can thrive, grow, and flourish.

    Workplace Violence Prevention + GMS = Thriving Work Environment 

    The challenges of running a successful business can often be overwhelming for small business owners. However, when it comes to preventing workplace violence, partnering with a professional employer organization (PEO) might be your best solution. At GMS, we bring our expertise and resources to the table, empowering business owners to take proactive measures that ensure the safety and security of their employees. We help you develop comprehensive policies and procedures tailored to your unique needs. From conducting risk assessments to implementing effective training programs, we equip owners with the tools to identify and address potential threats.

    By leveraging the strategic support of a PEO, small business owners can navigate the complex landscape of workplace violence prevention with confidence, creating an environment where employees can thrive and feel safe. With GMS by your side, you can prioritize the well-being of your workforce while focusing on what you do best – building a successful business. Contact our experts today to learn how you can get started.

  • As a small business owner in California, it’s essential to stay informed about the ever-evolving legal landscape that governs consumer privacy. One such regulation is the California Consumer Privacy Act (CCPA). The CCPA was enacted in 2018 and empowers consumers with greater control over their personal information and imposes obligations on businesses that collect, use, or disclose this data. Since then, amendments have been made to this Act, with the most recent one, the California Privacy Rights Act (CPRA), taking effect on January 1st, 2023.

    The CPRA created significant changes from the current law, the CCPA, which includes the following:

    • The CPRA no longer includes the employee exception, which means that California employees, applicants, emergency contacts, beneficiaries, independent contractors, and members of boards of directors have the same rights as any other consumer. 
    • Employers must provide notice of employees’ rights under the CPRA and give employees a way to tell the employer about exercising these rights. The employer has limited time to respond to requests and must properly document all responses. 
    • The CPRA distinguishes between “personal information” and “sensitive personal information.” Personal information is “information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household.” Sensitive personal information includes anything that reveals an individual’s personal information, including Social Security number, driver’s license number, state identification card, passport number, and more. 
    • Business-to-business transactions are now subject to the CPRA.

    Complying With The CCPA

    Complying with the CCPA can be a daunting undertaking for small business owners. With its intricate statutes and recent amendments that eliminated exemptions for employment and business-to-business data, understanding and adhering to the law may seem overwhelming. However, with the right approach and a clear understanding of the requirements, achieving CCPA compliance can be manageable.

    Consider the following steps to ensure you remain compliant with the CCPA:

    1. Understand the scope of the CCPA: The CCPA’s extensive provisions can be complex, but understanding its core principles is crucial. Recognize that the law applies to businesses that meet specific criteria, including those with annual gross revenue exceeding $25 million or those engaged in the sales of personal information. 
    2. Stay informed on regulatory updates: As the CCPA continues to evolve, it’s essential to stay updated on regulatory changes. The CPRA removed the exemptions for employment and B-2-B data, introducing additional complexities. It’s critical to consult trusted sources such as legal experts or a professional employer organization (PEO) to ensure you’re aware of any new requirements or modifications that may impact your compliance efforts. 
    3. Revise privacy policies and disclosures: Transparency is critical under the CCPA. Review and update your privacy policies and disclosures to accurately reflect your data collection and usage practices. Clearly outline the categories of personal information collected, the purpose of collection, and consumers’ rights under the CCPA. In addition, you must make these policies readily accessible on your website or mobile application to ensure compliance. 
    4. Implement opt-out mechanisms: Given consumers’ right to opt out of the sale of their personal information, provide easy-to-use opt-out mechanisms. Establish procedures to honor opt-out requests promptly, demonstrating your commitment to respecting consumer privacy. 
    5. Strengthen data security measures: Protecting consumer data should be a top priority. Enhance your data security measures to safeguard personal information from unauthorized access, use, or disclosure. This includes employing encryption techniques, implementing access controls, conducting regular vulnerability assessments, and training employees on data protection best practices. 

    Have You Considered Partnering With A PEO?

    As a small business owner, especially in California, where laws and regulations are constantly changing, ensuring compliance with regulations such as the CCPA can be overwhelming. However, we’re here to tell you that you don’t have to face these challenges alone. Partnering with a professional employer organization (PEO) like Group Management Services (GMS) can provide you with the support and expertise to navigate not only the CCPA but also other crucial changes affecting your business.

    With a deep understanding of compliance requirements, data privacy, and HR best practices, GMS experts can help streamline your operations, update policies and procedures, and ensure your business remains compliant with the CCPA and other relevant laws. By leveraging our resources and guidance, you can focus on what you do best – growing your business – while resting assured that your compliance needs are being addressed. Take advantage of our services and empower your small business to thrive in the evolving regulatory landscape of California. Get a free quote today to secure a compliant future.

  • As a small business owner in Ohio, you understand the importance of a well-functioning workforce for the success of your business. Your employees are the backbone of your business operations, ensuring your daily tasks run smoothly and the overall growth of your business. Running a small business comes with numerous responsibilities, one being properly navigating workers’ compensation. Though insurance programs aim to protect employees in case of work-related injuries or illnesses, what if there was an invisible threat within your business, silently draining your resources and jeopardizing your hard-earned success? If you’re unfamiliar, an alarming issue plagues businesses, especially in Ohio – workers’ compensation fraud.

    Detecting warning signs of workers’ compensation fraud is crucial for small business owners in Ohio to safeguard their interests and maintain a fair and safe work environment. Continue reading to explore critical indicators that can help you identify potential fraud.

    What Is Workers’ Compensation Fraud? 

    Let’s start with the basics – what is workers’ compensation fraud? Workers’ compensation fraud occurs when someone willfully makes a false statement or conceals information to receive workers’ compensation benefits or prevents an individual from receiving benefits to which they might be entitled. It’s more than just an employee exaggerating their medical condition or working while supposedly disabled. While these things occur within the workplace, employers are committing fraud by underreporting their payrolls to receive lower premiums, and health care providers are billing for services they’ve never performed. This can take various forms, ranging from exaggerated claims to staged accidents, ultimately leaving businesses burdened with inflated insurance premiums, legal situations, and a compromised work environment.

    However, states have different criteria for workers’ compensation fraud. Specifically in Ohio, an injured employee who does one of the following is considered to have committed fraud:

    • Receive workers’ compensation benefits the employee is not entitled to get
    • Enters into an argument for conspiracy to defraud the state Bureau of Worker’s Compensation or a self-insuring employer by making false claims for disability benefits
    • Makes false or misleading statements with the purpose of securing goods and services under the workers’ compensation act
    • Alters, falsifies, destroys, conceals, or removes documents necessary to establish the validity of a claim or needed to establish the nature of goods and services for which reimbursement is requested

    According to the Ohio Bureau of Workers’ Compensation, in Ohio alone, an estimated $80 to $320 million in fraudulent medical and compensation payments are made each year.

    Detecting Warning Signs Of Fraud

    According to the National Insurance Crime Bureau, one in 10 small business owners fears employees will fake an injury, and one in five owners do not know how to identify workers’ compensation scams. Understanding the warning signs to prevent these concerns and protect your business is critical. Let’s dive into these warning signs.

    Delayed reporting:

    If an employee consistently delays reporting an injury or accident, it could be a red flag. Fraudulent individuals may wait to report the incident to avoid scrutiny or make it seem like the injury occurred at work when it didn’t.

    Inconsistent descriptions:

    Employees involved in fraud may provide inconsistent or vague descriptions of the accident or injury. They might struggle to recall specific details or change their story when questioned. Inconsistencies between their statements and witness accounts or medical reports should raise suspicion.

    Having no witnesses:

    Legitimate workplace accidents often have witnesses who can support the injured employee’s account. However, employees involved in fraud may avoid involving witnesses or claim that no one else was present when the incident occurred.

    Late claims:

    Fraudulent claims often occur on Monday mornings or are reported late on Fridays. This timing is strategic, as it allows fraudsters to make it seem like the injury happened at work, even if it occurred outside of working hours or over the weekend.

    Lack of cooperation:

    Employees engaged in fraudulent activities may lack cooperation during the investigation process. They may be evasive, unresponsive, or hesitant to provide additional information. Genuine claimants are usually cooperative and willing to assist in the investigation.

    Conflicting medical reports:

    When reviewing medical reports, pay attention to any inconsistencies or discrepancies between the reported injury and the employee’s statements. Fraudulent individuals may exaggerate symptoms or provide misleading information supporting fraudulent claims.

    History of suspicious claims:

    Keep track of employees with a history of suspicious or frequent workers’ compensation claims. If an employee repeatedly files claims for minor incidents or has a high number of claims compared to their peers, it could indicate potential fraud.

    Lifestyle inconsistencies:

    Be mindful of any lifestyle inconsistencies or activities contradicting the claimed injury’s severity. For instance, an employee with a severe back injury claiming complete disability but regularly engaging in physically demanding activities outside of work raises suspicion. “It’s important for employers to know who their employees are and participate in good hiring practices. Knowing what your employees do for extracurricular activities (sports, groups, personal circumstances, and more) can always help investigate a claim,” emphasized Dani Terry, GMS’ Workers’ Compensation Claims Specialist Manager.

    Remember, it’s crucial to approach these warning signs with care and conduct a thorough investigation before making any conclusions. If you suspect workers’ compensation fraud, consult legal professionals and work closely with your insurance provider to gather the necessary evidence.

    Combatting Workers’ Compensation Fraud With A PEO

    Being aware of these warning signs of workers’ compensation fraud is essential for small business owners in Ohio to protect their businesses and maintain a fair working environment. By diligently recognizing these red flags, you can proactively address potential fraud, safeguard your employees’ well-being, and maintain the integrity of your workers’ compensation program.

    However, navigating the complexities of workers’ compensation can be challenging for small businesses. Fortunately, a professional employer organization (PEO) like GMS can help! We provide small business owners with comprehensive HR solutions, including workers’ compensation administration, claims management, and fraud prevention strategies. Partnering with us allows business owners to tap into expert knowledge, gain access to resources, and ensure compliance with Ohio Workers’ compensation regulations. You can finally focus on growing your business while having peace of mind knowing that your workers’ compensation program is effectively managed and protected against fraud.

    Dani added, “At GMS, we take the concerns from our employers very seriously regarding employees’ potentially filing a fraudulent workers’ compensation claim. Some of the immediate red flags that are common when dealing with a potential fraudulent case include the following:

    • Unwillingness to cooperate with employers and/or answer questions related to the circumstances surrounding the injury
    • Doctor shopping when they are released to return to work
    • Copycat claims
    • Filing a claim after paid time off (PTO) is denied
    • Alleged injury occurred right after clocking in on Monday morning

    If you ever feel that a situation is not right, do not be afraid to speak up. When you partner with GMS, you have a designated claims specialist that is there to help you.”

    GMS experts are here to protect your business. Contact us today to learn more!

  • In the ever-changing landscape of employment regulations, one critical aspect that demands the utmost attention is I-9 compliance. The U.S. Immigration and Customs Enforcement (ICE) announced important changes regarding I-9 compliance flexibility. As of July 31st, 2023, employers will no longer have the option for remote verification of I-9 documents. Instead, employers will be required to inspect these documents physically.

    With a deadline of August 30th, 2023, looming, employers need to understand the implications and take proactive measures to ensure compliance. Let’s explore the significance of I-9 compliance, highlight the upcoming changes, and provide guidance on how employers can smoothly navigate this transition.

    The Importance Of I-9 Compliance

    Before we dive into the forthcoming changes, let’s reiterate the significance of I-9 compliance. The I-9 form, also known as the Employment Eligibility Verification form, serves as an essential tool for employers to confirm their employees’ identity and work eligibility. Compliance with I-9 requirements is not just a legal obligation, but it also helps businesses adhere to immigration laws, protect against unauthorized employment, and promote a fair and level playing field for all employees. Sara Worthing, PHR, GMS’ Senior HR Account Manager, added, “I-9 compliance is important now more than ever. The I-9 form helps employees’ identities and confirms their employment authorization.”

    Why Is I-9 Flexibility Expiring?

    The decision to end the I-9 compliance flexibility, which allowed remote verification of documents, stemmed from the gradual return to pre-pandemic work environments. The temporary relaxation measures were implemented to accommodate remote work arrangements during the COVID-19 pandemic. However, with the circumstances improving and businesses resuming on-site operations, ICE has deemed it appropriate to reinstate the physical inspection requirement.

    Adapting To The Change

    Employers must be aware of the August 30th, 2023, deadline and make necessary preparations to ensure a smooth transition. The following are a variety of practical steps to help employers navigate the change effectively:

    Internal communication and training: It’s essential to ensure that all relevant personnel, including HR departments and hiring managers, are informed about the upcoming change. Consider conducting training sessions to familiarize them with the revised procedures and emphasize the importance of meticulous document inspection.

    Review and update policies: Take this opportunity to review your existing I-9 policies and procedures. Update them to reflect the change in requirements and communicate any modifications to employees. Having clear and concise policies will facilitate a seamless transition and mitigate potential compliance risks.

    Establish an efficient record-keeping system: For I-9 compliance, maintaining accurate and organized records is critical. Consider implementing an electronic I-9 system that integrates with your existing HR software. These systems can streamline document management, automate reminders for re-verification, and enhance record-keeping accuracy.

    Conduct internal audits: Perform internal audits to ensure existing I-9 forms are completed correctly, properly stored, and comply with all legal requirements. Identify any errors in a timely manner. Regular self-audits promote ongoing compliance and help mitigate potential penalties in case of government audits.

    Seek professional assistance if needed: Navigating the complexities of I-9 compliance can be challenging. Consider seeking guidance from professional compliance services such as a professional employer organization (PEO) to ensure your organization remains in full compliance with the law.

    Leveraging The Expertise Of A PEO

    The expiration of I-9 compliance flexibility on July 31st, 2023, and the subsequent requirement for physical inspection of documents present a significant challenge for employers. However, there is no need to face this transition alone. Partnering with a PEO can be a game-changer in navigating the complexities of I-9 compliance. A PEO can provide expertise in immigration laws, maintain record-keeping systems, and offer guidance on policy updates and internal audits. By leveraging the knowledge and support of a PEO, employers can ensure a seamless transition, mitigate compliance risks, and focus on their core business operations. Sara further explained, “At GMS, our team is constantly working to ensure our clients are compliant with the help of E-Verify. GMS handles this process from beginning to end, which allows our clients to worry about one less thing.”

    As the deadline approaches, take proactive steps and consider utilizing the services of a trusted PEO like GMS to navigate the changing landscape of I-9 compliance with confidence. Get a quote from us today!

  • The New Jersey WARN Act has undergone significant amendments that became effective on April 19th, 2023, bringing substantial changes for employers in the state. The changes were initiated after Governor Phil Murphy signed A-4768 into law, setting in motion a 90-day countdown to the effective date of amendments to New Jersey’s WARN Act, known as the Millville Dallas Airmotive Plant Job Loss Notification Act (“NJ Warn Act”). Employers in the state must be aware of the new requirements to avoid noncompliance penalties and ensure they’re fulfilling their legal obligations to their employees.

    Understanding The Act

    The amendments to this Act have heightened employer requirements during layoffs, including mandatory severance and longer notice periods, which will now cover more employers than in the previous version. One of the most notable changes is extending the notification period from 60 to 90 days for businesses with 100 or more full-time and part-time employees subject to a mass layoff, transfer, or termination. The amendments also broaden the definition of employer, employee, and establishment, expanding the law’s coverage to more businesses and employees. A covered “establishment” now includes all facilities in the state instead of a single site of employment.

    In addition, the updated law requires business owners to provide their employees with detailed information about the impending layoffs, including reasons for the job loss, benefits available, and contact information for the company’s HR department. These changes aim to protect employees’ rights and provide adequate notice before significant job losses occur.

    What This Means For Business Owners

    Any employer currently evaluating or planning layoffs or a transfer/termination of operations must take notice of these changes and act accordingly. If you’re a business owner that was not previously subject to the NJ WARN Act, it’s essential that you re-evaluate whether it now applies to you and your business. In addition, you must understand that a layoff impacting 50 or more employees throughout the state currently triggers NJ WARN notice requirements.

    When the law is triggered, all affected employees are entitled to severance at the rate of one week of pay per full year of employment. Should you fail to provide 90 days’ notice, each impacted employee is entitled to an additional four weeks of pay. In addition, if an employee is covered by a collective bargaining agreement (CBA) or employer severance plan, the employee is entitled to the greater of the amount outlined in the amendments or the amount required by the CBA or severance plan.

    Consider Partnering With A PEO

    When you partner with a professional employer organization (PEO) such as GMS, you can navigate the complexities of the laws, including the NJ WARN Act, with ease and confidence, ensuring compliance while freeing up time to focus on your core business operations. The following are just a handful of ways GMS experts can help you implement these changes in your business:

    • Ensure you’re aware of the updated law and understand implications – We provide guidance on the notification process, explain the expanded definitions, and help you identify whether you fall under the new law’s coverage
    • Create a comprehensive plan to ensure you remain compliant 
    • Offer ongoing support 

    When you partner with GMS, we’re here for the long haul. Our experts in all departments, whether it be payroll, HR, benefits, or risk management, are here to keep you updated on anything that could impact your business. Count on us to keep your business simpler, safer, and stronger. Contact us today.