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  • 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.

  • As a business owner, it’s imperative to maintain a fair workplace environment for all employees. Unfortunately, incidents such as harassment or discrimination require an investigation in order to maintain a fair work environment. Conducting an HR investigation is necessary to ensure that all parties involved are treated fairly and that any necessary corrective action is taken. However, the investigation process can be complex and overwhelming. Whether you’re a seasoned HR professional or new to conducting these investigations, this blog will provide valuable insights to help you confidently navigate the process.

    What Is An HR Investigation?

    For those unfamiliar with an HR investigation, let’s begin with a basic understanding of it. When an employee makes a complaint within your organization, the HR department is responsible for beginning an HR investigation to discover further details about possible employee misconduct. An HR investigation is a method used to determine what happened and who, if anyone, is responsible. All businesses in the U.S. are obligated by law to investigate these complaints promptly and impartially.

    The following are situations in which HR can investigate in the workplace:

    • Harassment
    • Discrimination
    • Health and safety
    • Ethics
    • Retaliation

    It’s critical to get to the bottom of these complaints, as each one can become a lawsuit.

    The Importance Of An HR Investigation

    HR investigations are essential for employers to maintain a safe and healthy workplace. When incidents of harassment, discrimination, workplace misconduct, or policy violations occur, conducting an HR investigation can do the following:

    • Uncover all the facts
    • Identify any potential legal liabilities
    • Prevent similar incidents from happening in the future 

    An HR investigation ultimately helps protect employees from further harm and ensures that your business complies with legal requirements and ethical standards. In addition, conducting thorough and fair HR investigations can help build trust and confidence among employees while demonstrating the company’s commitment to a safe and equitable workplace.

    Joe Wenger, GMS’ Senior HR Generalist, expressed, “It’s an essential HR best practice to have an established process in place whenever an internal HR investigation is warranted. The first step is outlining this in your employee handbook, encouraging employees to come forward for any incidents, and reiterating a no-retaliation policy which should also be in place. Having a set process ahead of time that guides employees on what to do and then following through on that process for them will reinforce the idea that workplace safety and security are of up-most importance. This will, in turn, create a happier and more productive workforce.”

    Conducting An HR Investigation

    For various reasons, you must have an HR investigation process before an incident occurs. This process ensures that all employees know your company’s policies and procedures and know what to expect in the event of an incident. This helps prevent misunderstanding and confusion when an investigation is needed. When you have a process in place, it ultimately ensures that investigations are conducted fairly and consistently. By having clear guidelines and procedures, HR professionals can ensure that all parties involved are treated fairly. In addition, having an HR investigation process in place can help minimize the risk of legal liability. Following established procedures and documenting all aspects of the investigation allows HR professionals to protect the company from lawsuits or claims of discrimination or retaliation.

    Now that you understand the importance of having an HR investigation process in place, let’s discuss how to create your process:

    Review existing policies and procedures

    Begin by reviewing any existing policies and procedures related to HR investigations. Determine what’s working well and identify areas that need improvement.

    Identify who needs to be involved

    Determine who needs to be involved in the investigation process. This could include HR professionals, legal counsel, managers, and other relevant leaders within your organization.

    Define the scope of the investigation

    Clearly define the scope of the investigation, which can include the type of incident being investigated, the individuals involved, and any relevant timelines or deadlines.

    Establish investigation procedures

    Develop procedures for conducting the investigation, including how to collect and review evidence, conduct interviews with witnesses and other involved parties, and document the findings.

    Communicate with all parties that were involved

    It’s essential to communicate the investigation process and any expectations to all parties that were involved in the incident, including the complainant, the accused, and any witnesses.

    Follow up and take appropriate action

    Once the investigation is complete, follow up with all parties involved and take any necessary corrective action, including disciplinary action (if applicable).

    Review and improve the process

    The final step is to review your HR investigation process regularly to determine if you need to make any improvements based on feedback and changes in legal and ethical standards.

    Consider asking the following questions to ensure you obtain all the necessary information:

    • What exactly happened?
    • When did the incident occur?
    • Have you discussed the incident with anyone?
    • Has the behavior affected you and your job?
    • Where did the incident occur?
    • How did you react?
    • Was there anyone else who may have seen or heard the incident?
    • Do you have any other relevant information?
    • What action do you want the company to take?

    Creating an HR investigation process requires careful planning and consideration. Ensuring the process is fair, consistent, and compliant with legal and ethical standards is essential. Following these steps can create an effective and efficient HR investigation process that promotes a safe and healthy workplace for all employees.

    Now What?

    Conducting an HR investigation can be challenging and complex, but it’s essential for maintaining a safe and healthy workplace. By following the steps outlined throughout this blog, you can ensure that investigations are conducted fairly, consistently, and in compliance with legal and ethical standards. If you’re looking to streamline your HR operations and ensure you’re handling these investigations with expertise, consider working with a professional employer organization (PEO) such as Group Management Services (GMS). A PEO can provide various HR services, including handling investigations and providing guidance on legal and compliance issues. With our expertise and support, you can finally feel confident that your HR investigations are handled professionally and carefully, and that your employees are receiving the support they need to feel safe and valued in your business. Interested in learning more about how GMS can help you and your business thrive? Contact us today.

  • The Illinois Supreme Court issued an opinion on Walton v. Roosevelt University on March 23rd, 2023. This affirms the validity of a vital preemption defense for employers facing litigation under the Illinois Biometric Information Privacy Act (BIPA). Before we hear the decision of the Illinois Supreme Court, let’s understand the history of this case and what BIPA means.

    Understanding BIPA

    The Illinois legislature unanimously passed BIPA in 2008. This law ensures that individuals are in control of their own biometric data and prohibits private companies from collecting it unless they do the following:

    • Inform the person in writing of what data is being collected or stored
    • Inform the person in writing of the specific purpose and length of time in which the data will be collected, stored, and used
    • Obtain the individual’s written consent 

    Biometric data is data based on an individual’s biometric identifiers that are used to identify an individual. It can include a retina or iris scan, fingerprints, voice print, hand scan, and face geometry. BIPA has become the most litigated biometric privacy statute in the nation. It establishes standards for how businesses must handle Illinois consumers’ biometric information. The main goal of this law is to create a standard of conduct for private entities to collect or possess biometric information responsibly.

    Walton V. Roosevelt University Case

    This case is about an employee at Roosevelt University who brought a class action claiming the University violated various provisions of BIPA by using a biometric time-clock system. This system was used to scan his fingerprints without obtaining his informed written consent. The University then disclosed his biometric information to a third-party payroll services provider without his consent. The employee sued the University, alleging that they violated BIPA by doing the following:

    • Failing to develop a written policy made available to the public, establishing a retention policy, and guidelines for destroying biometric data 
    • Collecting his biometric data without providing him with the requisite notice and obtaining his written consent
    • Disclosing his biometric data without consent 

    However, an Illinois Appellate panel held that the Labor Management Relations Act (LMRA) prevents the employee from usurping the bargained-for dispute resolution requirements in the collective bargaining agreement by first suing the University directly in court. The University moved to dismiss the case because LMRA pre-empted the plaintiff’s claims.

    What The Illinois Supreme Court Decided

    The court affirmed the appellate court’s holding that Illinois’ BIPA is pre-empted by federal labor law for plaintiffs who are members of a bargaining unit and covered by a collective bargaining agreement. The court held that Illinois would follow Seventh Circuit precedent. In addition, the court found that the Seventh Circuit decisions governed the case and should be followed because they concern federal law and were reasonable.

    Ultimately, the Illinois Supreme Court ruled that the LMRA preempts BIPA claims brought by an employee of a bargaining unit if the employer cites the collective bargaining agreement’s management rights clause in response to the claim. The court deferred to the federal case law on this issue.

    What This Means For Business Owners

    While you may think this case does not directly impact your business, you may have thought wrong. Unionized employees are not prohibited from seeking redress for alleged BIPA violations. They must pursue these claims through the grievance procedures in their collective bargaining agreements instead of in state or federal court. In addition, business owners should be aware of their obligations under BIPA if they collect, use, or store biometric data from employees or customers.

    Business owners must consult legal counsel to understand the pre-emption issues that may arise in specific situations. Partnering with a professional employer organization (PEO) such as Group Management Services (GMS) provides you with the support you need. GMS experts help business owners comply with federal and state laws and regulations, including anti-discrimination and privacy laws. In addition, we can help employers manage their employment-related risks by providing employment practices liability insurance (EPLI) coverage. EPLI helps protect employers from the financial loss associated with claims of discrimination, harassment, retaliation, and other workplace-related claims. GMS ultimately helps business owners mitigate legal risks by providing up-to-date employment policies, procedures, and employee handbooks that are compliant with state and federal laws. Protect your business and contact us today.

  • Whether you need to follow legal regulations or simply have company rules, workplace compliance requirements are crucial for any small business. Unfortunately, it’s not always easy to get employees on the same page. While workplace compliance is often seen as an HR issue, it’s important for every employee to be aware of the laws that affect their work environment.

    It’s critical for small businesses to take steps toward encouraging a compliant workplace. Encouraging this type of culture can help businesses save on workers’ compensation, create a safer workplace, and help everyone stay on the same page. Compliance is not a one-time effort. It’s an ongoing process requiring constant vigilance and attention to detail. The benefits of compliance far outweigh the costs, though, so it’s important to ensure every employee understands their role in maintaining workplace compliance and feels comfortable raising issues with management if they see something wrong.

    Let’s break down what you can do to get your employees to buy into your company’s rules.

    The Benefits Of Workplace Compliance

    Workplace compliance is an essential part of any HR department’s responsibilities. The goal of workplace compliance is to ensure that all employees are following the laws and regulations that govern their industry. By doing so, you will protect your company from potential lawsuits, fines, and other costly penalties.

    In addition to complying with government regulations, there are other benefits to maintaining workplace compliance:

    • It helps protect your employees from injury or illness by ensuring that they have the necessary safety equipment and training.  
    • It helps protect your customers from harm by making sure your products and services meet quality standards.
    • It reduces employee turnover because employees feel safer working in a company that cares about their safety and well-being.
    • It makes it easier for employees to focus on their jobs, knowing they will not be injured or ill due to unsafe conditions at work or poor-quality products or services provided by the company. 

    How To Ensure Compliance In The Workplace

    There are several different steps that employers can take to help cultivate a culture of compliance. Here are ways that you can ensure that your workforce complies with existing policies and procedures.

    Document any rules your employees need to follow

    The first step toward workplace compliance is to make sure everyone knows your policies and procedures. It’s important to document your company’s rules in your employee handbook. This way, you can give each employee a handbook so that they can review the regulations you have in place.

    This process will not only give everyone a document to review their rights and obligations but also serves as a compliance tool in case there are any occasions where people violate company policies. You can have employees sign off on receiving and reviewing your handbook. You can also create checklists to ensure employees understand all the right steps for specific procedures.

    It’s also important to make sure your policies and procedures stay up to date with any new federal laws or business trends. You can update your handbook to add new policies or tweak existing rules, just make sure that every employee has the means to access these rule changes to stay compliant. Finally, these documents should be easily accessible so that employees can review them at their leisure.

    Consistently apply these policies and procedures

    Having policies and procedures in place is one thing; the way you apply them is another. Your compliance rules affect everyone at your company, from the top executive to the newest member of your team.

    It’s essential to make sure that you consistently apply these policies and procedures equally so that your whole organization sees that there isn’t any special treatment. Should any employee notice that the rules aren’t applied equally, they’ll be much less likely to buy into them. That disenchantment can quickly lead to non-compliance.

    The best way to avoid this potential problem is to reinforce how important these policies and procedures are for everyone. Have regular handbook reviews where you go over key policies and company culture with your whole staff and reinforce that it takes buy-in from everyone. By setting an example and making sure everyone is accountable, you can instill a culture of compliance and avoid issues stemming from inconsistent treatment.

    Take a positive approach instead of just saying “no”

    If you want your employees to truly buy into a culture of compliance, it’s best to focus on what they should do instead of telling them what not to do. Taking an “anti” approach to workplace policies is similar to telling someone “no” over and over – at some point, they may stop listening.

    This natural reaction to being told what not to do is why it’s better to focus on proper behaviors and educate employees on why that approach is best. If you have specific safety rules in place, create policies of what employees should do and why those behaviors are best.

    For example, lay out guidelines on the safety equipment employees should use and how that equipment keeps them safe and healthy. That type of message will naturally hit home harder than simply saying, “Don’t work without a harness.” By providing positive instructions and providing the reason behind them, your workforce can at least understand why those rules are in place, even if they don’t like them.

    Invest in employee training

    Once your policies are in place, you’ll want to do more than just communicate them with employees. Training will help reinforce those compliance procedures and policies so that they’re less likely to make mistakes. These training sessions should cover the following topics:

    • Safety and health policies, goals, and procedures
    • Functions of the safety program
    • Proper contacts for any questions or concerns about the program
    • How to report hazards, injuries, illnesses, and close calls/near misses

    What to do in an emergency

    Training should also be more than a one-time event. An ongoing training program can help your employees stay aware of company policies and procedures, especially if there are any changes to your compliance guidelines.

    Use positive reinforcement for doing the right thing

    Let’s be honest, the average person doesn’t think of workplace compliance as an exciting topic. That doesn’t mean the subject has to be a drag. Utilizing positive reinforcement to reinforce your policies and procedures can not only help prevent problems but also encourage your employees to participate actively in workplace compliance measures.

    There are several different ways that you can go about this process. If you’re trying to get individuals into compliance training, the company could buy lunch for employees to get them more excited about the session. You can also incentivize employees by setting up a small rewards program for people who actively engage in compliant behaviors. If you make compliance a positive experience, employees will be much more likely to follow company policies and procedures.

    Keep employees engaged

    Positive reinforcement is one step in the right direction, but don’t forget that compliance is a two-way street. It’s critical to keep communication open for any employees who want to talk about workplace compliance. Those conversations will not only help your employees feel heard but also uncover some potential opportunities for improvement.

    Sometimes these conversations aren’t exactly enjoyable. If someone breaks company rules about safety, harassment, or something else, it’s time to have a serious discussion about unacceptable behavior. It’s important to foster a compliant work environment, so these conversations are necessary to explain why an employee’s behavior went against company policy and how to move forward.

    It’s also essential to keep an open dialogue with employees to see what’s going on around the workplace. If employees are experiencing difficulties with certain policies or have feedback about how to create a safer work culture, let them know that management is there to listen. Allowing your employees to share what they’re experiencing can help foster a more engaging workforce and help identify potential opportunities to improve compliance.

    Ensure equal employment opportunity

    Equal employment opportunity (EEO) laws are designed to ensure equal employment opportunity for all employees regardless of race, color, religion, sex (including gender identity), national origin, age (40 or older), disability, or genetic information. These laws also extend protection against discrimination based on pregnancy, childbirth, or related medical conditions.

    Employers must maintain records that document hiring practices and promotions to demonstrate their compliance with EEO laws. For example, they must keep records of applications received and interviews conducted. This can prove that they didn’t discriminate against any applicants based on protected characteristics such as race or sex (including gender identity).

    Revisit health and safety regulations

    Health and safety compliance is a very important aspect of any business or organization. If you are not compliant with health and safety laws, then there can be serious consequences for you, your staff, and your business.

    It’s essential that all businesses have a health and safety policy in place which outlines exactly what needs to happen if an incident occurs or when an injury does occur (i.e.: what do I do?). This policy should be reviewed regularly so that it reflects current legislation as well as ensures that everyone knows what their responsibilities are when it comes to handling such incidents.

    If you have an accident at work or someone gets injured, then this could result in a fine from the health and safety executive (HSE) if the accident wasn’t reported correctly or if no records were kept of incidents that occurred on-site.

    Create A Culture Of Compliance

    From safety regulations to parking policies, it’s important to ensure everyone buys into your company’s rules. Fortunately, you don’t have to go through this process alone. GMS works with businesses to develop a culture of workplace compliance and helps them save time and money through expert HR outsourcing. Our team can help instill a culture of compliance through employee training, documentation, and other measures to help prevent future issues.

    Ready to make your company simpler, safer, and stronger? Contact GMS today about how we can support your business through comprehensive human resource services.

  • Chicago, Illinois is now requiring employers to update their employee harassment policies and training. These policies must be implemented by July 1st, 2022. All companies with at least one employee will be required to comply with the new amendments put in place by the Municipal Code and Human Rights Ordinance. Within these changes, sexual harassment posters, policies, record keeping, and mandatory workforce training must be implemented.

    What Employers Need To Know

    By July 1, employers must have each of these amended policies updated in their handbook. Within their policies, it must state that sexual harassment and or retaliation against a reported allegation are illegal within the state of Illinois. More required adjustments include:

    • Updated state definitions of harassment 
    • Annual employee training
    • Implement a reporting system with applicable forms 
    • Recordkeeping alleged claims 
    • Provide government services 

    Additionally, Chicago employers are required to display new posters in one or more common areas. New posters have been published by the Chicago Commission on Human Relations in a Spanish and English version.

    What is The Policy 

    Sexual harassment policies must be made available in employees’ primary language. Chicago legislators expanded the definition of sexual harassment, which states, “Sexual harassment means any (i) unwelcome sexual advances or unwelcome conduct of a sexual nature or (ii) requests for sexual favors or conduct of a sexual nature when (1) submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment; (2) submission to or rejection of such conduct by an individual is used as the basis for any employment decision affecting the individual; or (3) such conduct has the purpose or effect of substantially interfering with an individual’s work performance or creating an intimidating, hostile or offensive working environment; or (iii) sexual misconduct, which means any behavior of a sexual nature which also involves coercion, abuse of authority, or misuse of an individual’s employment position.”

    Prevention Training

    The training must now include one hour of sexual harassment prevention for all employees. However, this is extended for supervisors and managers, which provides a second one-hour bystander training. These trainings are required to be completed by June 30, 2023, and again annually.

    The state provides pieces of training through CCHR modules which will be in effect by July 1. However, employers can make changes or develop their own related to their industry.

    Failure To Implement 

    Employers must establish a system to retain the proof of completed courses. In addition, they must also have records showing they remained compliant in adapting the policy changes to their business. Failure to maintain records may result in fines up to $1,000 per day. Fines for violations of sexual harassment within the workplace have increased to $5,000 – $10,000 per violation.

    How GMS Can Help

    As a business owner, implementing changing regulations can be overwhelming. When you partner with GMS, you can ensure your business will remain compliant. In the event of rapid regulatory changes, our HR experts will always keep you up to date and handle your business’s adjustments with ease. Contact GMS today to learn more!

  • The U.S. Department of Homeland Security (DHS) is ending its temporary COVID-19 related policy which allowed employers to use expired List B identity documents when it came to I-9 forms. As a result, expired identity documents will no longer be accepted to verify an employee’s eligibility to work beginning May 1, 2022.

    Authorities were unable to renew List B identity documents in a timely manner after COVID-19 became active in 2020, which allowed employees to temporarily present expired identity documents. Any employee who has provided employers with expired documents from May 1, 2020- April 30, 2022, will now be required to update their I-9s by July 31st, 2022.

    According to DHS: 

    • Any employee who previously presented an expired List B document and is currently still an employee, must provide an updated document establishing their identity.
    • No action is required if the employee is no longer employed by the company.

    There is separate COVID-19-related guidance that allows employers to review Form I-9 documents virtually, which is different than this DHS announcement. Reviewing Form I-9 documents virtually is in effect until at least April 30th, 2022. Dawn Lurie, Senior Counsel in the immigration practice group stated, “The announcement signals to us that we are nearing the end of the COVID-19 relaxation of the in-person review policy, which means that companies should start to address the population of folks that were virtually completed.”

    A violation in this regard could cost anywhere from $234 to thousands of dollars. Stacey Larotonda, GMS’ Vice President of Client Services, shares, “While some business owners think they are being cost savvy by keeping their HR functions in-house, they’re actually gambling on how expensive an overlooked error could be. All too often we see business owners being slapped with large fines, simply because they didn’t know better or weren’t keeping up with these legislative changes.”

    Regulatory compliance is complex and ever-changing. For our 2,000+ clients across the country, GMS handles these responsibilities so the business owners don’t have to. Get in touch today.

  • Running a business is complicated enough. Having to deal with wage and hour violations only makes your ability to grow your business even more difficult.

    The majority of businesses in the U.S. are subject to the rules and regulations set by the Fair Labor Standards Act (FLSA). These rules establish standards for minimum wage, overtime pay, recordkeeping, and youth employment compliance.

    While these rules are designed to protect employees, it’s not always easy for employers to keep track of and apply these rules. It’s very easy for a simple, honest mistake to lead to an FLSA violation, which is why businesses should take the time and effort to conduct internal audits to identify any potential issues.

    Why Should Businesses Conduct Internal Wage And Hour Audits?

    The biggest reason to complete internal wage and hour reviews is quite simple – FLSA noncompliance is expensive. Violations can range from $1,000 to $10,000 each. In addition, FLSA violations could end up costing businesses in a couple of other ways. 

    According to the U.S. Department of Labor (DOL), the Wage and Hour Division took more than 24,700 compliance actions against businesses in 2021. Those actions led to more than 190,000 workers earning more than $230 million in back wages. This results in non-compliant companies owing an average of $1,211.70 in back wages for affected employees.

    In addition to back wages, financial penalties make FLSA violations even more costly for a business. The DOL will fine any company that willfully or repeatedly violates minimum wage or overtime pay requirements. These penalties include civil fines up to $1,000 for each violation.

    Repeated violations can also make a business a common target for future audits. The DOL chooses targets for wage and hour audits as part of an overall initiative or because individuals have filed complaints against a specific business. By failing an audit, the DOL has reason to check in on your business in the future for additional violations.

    An FLSA Audit Checklist

    A thorough FLSA audit includes multiple steps. Each of these steps is designed to provide a comprehensive overview of who is covered by the FLSA as well as, the different factors that can lead to violations.

    1. Review employee classifications
    2. Review regular and overtime pay calculations
    3. Review records and policies

    Employee classifications

    The first step of auditing your wage and hour practices is to examine the exemption status for all your employees. It’s essential to properly classify each employee to determine their exact employment status and whether or not they’re eligible for overtime.

    Employers conducting an audit should create a list that includes every employee. The safest way to start is to assume that every employee is eligible for overtime until proven otherwise. This employee list should include the following information to help employers determine overtime exemption status:

    • Job titles
    • Job descriptions
    • Salary information

    Once armed with this information, employers can perform a trio of tests to determine whether employees qualify as exempt or not. If an employee passes all three tests, employers can assume that they are exempt from overtime pay.

    • The salary basis test – Exempt employees must be paid a predetermined, fixed salary that cannot be reduced.
    • The salary level test – Exempt employees must meet the minimum salary threshold of $35,568, which equates to $684 per week.
    • The duties test – Employees must primarily perform a list of set duties established by the DOL.

    The easiest way to determine exemption status is whether an employee is a blue-collar worker or not. Blue collar workers are eligible for overtime, regardless of their salary. Non-salary employees are also eligible for overtime.

    When it comes to “white-collar exemptions,” employers will need to review each employee’s title, job description, and current duties. The DOL lists five separate groups as exempt from overtime pay, which are explained in-depth in our post on navigating white-collar exemptions. If a white collar employee’s duties align with any of the following groups and pass the salary tests, they are exempt.

    • Executive
    • Administrative
    • Professional
    • Computer
    • Outside sales

    Pay calculations

    Once you’ve successfully separated exempt and non-exempt employees, it’s time to review your pay practices to ensure that everyone is being compensated properly. This phase involves confirming the use of proper pay practices and calculations.

    • Ensure all hourly workers are being paid at least $7.25 per hour (or more, depending on your city/state).
    • Confirm that all employees who earned overtime were paid at least one and one-half times their regular pay rate after 40 hours of work in a workweek.
    • Double check to see if there are any employees who work in two different positions at differing rates that require special pay calculations and timekeeping practices.

    Records and policies

    An internal audit is a good time to review your company’s timekeeping policies. The FLSA requires employers to maintain a variety of records pertaining to their employees’ wages and hours. As such, your audit should confirm that your business records the following information and that all recorded information is accurate:

    • Employees’ personal information which includes, name, home address, occupation, sex, and birth date if under 19 years of age.
    • Hour and day when workweek begins.
    • Total hours worked each workday and each workweek.
    • Total daily or weekly straight-time earnings.
    • Regular hourly pay rate for any week when overtime is worked.
    • Total overtime pay for the workweek.
    • Deductions from or additions to wages.
    • Total wages paid each pay period.
    • Date of payment and pay period covered.

    How Often Should I Conduct FLSA Audits?

    In general, it’s best to perform wage and hour audits at least once a year. For example, some organizations plan a regular internal audit timed with either the beginning or end of their fiscal or calendar year.

    Another option is to conduct ongoing reviews throughout the year. This process involves more regular check-ins for compliance concerns, such as employee classifications or overtime calculations for new employees. Employers can also combine a comprehensive yearly audit with quarterly inspections to be as proactive as possible about FLSA violations.

    Stacey Larotonda, Vice President of Client Services at GMS, emphasizes, “FLSA self-audits should be done by every business on a consistent basis. It’s an easy way to make sure you aren’t hit with a significant fine should the Department of Labor want to audit you. Spending a little time on the front end can save you lots of money in the long run.”

    Protect Your Business From FLSA Violations

    A simple timekeeping mistake is all it takes to land your company in trouble with the DOL. Internal FLSA audits are one tool that employers can use to protect their business from misclassification, timekeeping errors, and other challenges. However, sometimes business owners can use some additional support.

    Simply put, most business owners don’t have the time to handle every tedious administrative task. GMS partners with businesses to help them simplify their core business functions. GMS provides your business with experts and a comprehensive web-based payroll solution to help you save time and protect your business against FLSA violations, wage and hour laws, and other costly issues. Our experts help business owners with:

    • Contractor vs. employee status
    • Recordkeeping
    • Overtime exemptions
    • Child labor

    Ready to streamline your payroll process and other HR tasks? Contact us now about how GMS can make your business a safer place.