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  • 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.

  • The landscape of employment regulations can be tricky for employers and employees to navigate. In New Jersey, recent changes to the unemployment insurance law have left many employers wondering about their compliance obligations. Fortunately, the New Jersey Department of Labor (DOL) has released new guidance to help employers understand and adhere to the amended law’s requirements. Continue reading to understand what these changes mean for businesses in New Jersey.

    Delayed Rollout And Fair Enforcement

    One of the first aspects to note is that the New Jersey DOL recognizes employers’ challenges due to the delayed rollout of the amended law. In response, the agency has pledged to enforce the law fairly and equitably, considering the delayed guidance’s circumstances.

    A significant concern for employers was the lack of clear instructions on what information they must provide to the Division of Unemployment Insurance when an employee separates from their job. The department acknowledges this issue and clarifies that employers are not expected to provide this information until they receive specific instructions.

    Preparing For Compliance 

    The department actively provides clear directions to employers to address the informational gap. In addition, they’re developing an online form that will streamline the submission process for employers. While these developments are in progress, the department has already requested that all employers register with the online platform, Employer Access, and provide an email address to the Division. This measure ensures employers can communicate electronically, as required by the amended law.

    Employers must understand that the new law does not mandate immediate submission of the BC-10 form upon an employee’s separation from employment. Instead, the only information required to be provided immediately is when unemployment will begin. However, employees should note that they are not expected to provide this information until the department issues clear submission instructions.

    Enforcement Leniency

    The department has demonstrated a practical approach to enforcing the amended laws in a positive development for employers. They’ve indicated that they will not assess penalties against employers or block them from obtaining relief of benefit charges for failing to provide information immediately upon an employee’s separation. This leniency will apply while the department finalizes the submission directions and revises the necessary forms.

    Employers must continue to respond promptly to all requests from the Division for separation and wage information during this transitional period. While the amended law has shortened the appeal deadline from 10 days to seven days, the department is exercising discretion. They will accept appeals submitted within the previous 10-day limit until the transition from postal to electronic communication with employers is complete.

    Stay Updated By Partnering With A PEO

    In the ever-evolving landscape of employment regulations, it’s essential for employers to remain adaptable, proactive, and compliant. Keeping a close eye on updates from the DOL and seeking legal counsel when necessary will help businesses maintain a smooth transition to the amended unemployment insurance law.

    However, as a small business owner in New Jersey, adding another task to your plate is the last thing you want to do. Luckily, GMS, a professional employer organization (PEO), is here to lend a helping hand, navigating the intricacies of employment regulations. At GMS, we provide you and your business with the following:

    • Compliance expertise
    • Administrative relief
    • Tailored solutions
    • Cost savings
    • Risk mitigation
    • Employee support
    • Focus on growth
    • And so much more

    Ultimately, the constant change in employment regulations demands vigilance and expertise, which can be challenging for small business owners to manage independently. GMS, as a trusted PEO, offers a comprehensive solution that ensures compliance with the amended unemployment insurance law in New Jersey, streamlines your HR process, reduces costs, and allows you to focus on what you do best – growing your business. Contact us today to learn how we can help your New Jersey business thrive.

  • In a move that could reshape the landscape of the construction industry, the U.S. Department of Labor (DOL) issued a significant final rule on August 8th, 2023. This rule aims to raise the prevailing wage standard for approximately one million construction workers operating under the federal Davis-Bacon Act. This long-awaited change comes as a response to the evolving dynamics of the construction sector, including the effects of the Bipartisan Infrastructure Law of 2021 that fueled federal infrastructure projects nationwide. Continue reading to dive into the details and implications of this pivotal development.

    Protecting Workers’ Interests

    At its core, the Davis-Bacon Act, enacted in 1931, is a testament to the government’s commitment to safeguard the welfare of construction workers. The act mandates the payment of locally prevailing wages and fringe benefits on federal contracts for construction projects exceeding $2,000. This ensures that contractors don’t undercut wages, thereby protecting local standards and providing a fair wage for workers.

    Revitalizing Prevailing Wage Standards

    The new final rule seeks to revitalize the prevailing wage standards by introducing a range of enhancements. Among them, the DOL gains the authority to adopt prevailing wages determined by state and local governments, offering a more localized and relevant approach. In addition, the rule reintroduces a three-step process to identify the prevailing wage rate for different worker classifications, ensuring that wage rates reflect the majority’s income while minimizing the undue influence of excessively low wages.

    Strengthening Workers’ Rights

    One of the most noteworthy aspects of the new rule is the incorporation of anti-retaliation provisions. These provisions are designed to protect workers who raise concerns about wage violations from facing any form of retaliation. Moreover, the rule empowers the DOL to withhold funds from federal contractors who fail to provide the rightful wages to their employees. This emphasizes the importance of fair wages and offers a practical means of enforcement.

    Balancing Wage Growth And Inflation

    A pertinent concern in any wage adjustment is the potential impact on inflation. However, recent research and analysis by the DOL indicated that wage increases, particularly for lower-income workers, do not necessarily result in significant economy-wide price hikes. In fact, inflation-adjusted wages for nonsupervisory construction workers have experienced a healthy increase of 2.4% over the past year. This insight counters the notion that wage growth inevitably leads to inflationary pressures.

    Embracing Change In A Shifting Landscape

    The construction industry has evolved dramatically since the Davis-Bacon Act’s inception over nine decades ago. The industry’s complexity, diversity, and regional disparities have all called for reevaluating prevailing wage standards. With the final rule’s emphasis on flexibility through state and local determinations, the government acknowledges the need to tailor wages to the unique dynamics of each locale.

    Benefits Of Partnering With A PEO 

    In this era of progressive change, where the construction industry undergoes a transformative shift in prevailing wage standards, the role of a professional employer organization (PEO) becomes even more invaluable. A PEO brings a wealth of expertise in navigating intricate wage regulations, ensuring compliance with evolving laws, and advocating for the welfare of employers and employees. With its adept handling of payroll management, benefits administration, and legal intricacies, a PEO like GMS is a strategic partner in enabling construction businesses to adapt to the new Davis-Bacon Act rule seamlessly.

    By entrusting GMS with the intricacies of HR management, construction companies can focus on their core operations, confident in the knowledge that they are upholding fair wages, workers’ rights, and regulatory requirements. As the construction landscape evolves, embracing the collaborative expertise of a PEO can be the cornerstone of sustained success, allowing businesses to weather changes and thrive in a dynamic industry. Contact us today to learn more.

  • As scorching temperatures sweep across the United States, breaking records and posing serious threats to workers, President Joe Biden has taken a momentous step to safeguard their well-being. With the heat wave expected to intensify in central and southeastern regions, the risk to workers has never been higher. In response to this alarming situation, President Biden has directed the Department of Labor (DOL) to issue an unprecedented hazard alert for heat, marking the first of its kind in history. This landmark decision underscores the administration’s commitment to worker safety and sets the stage for crucial changes in heat-related protections under federal law.

    The Heat Wave’s Impact On Workers

    With triple-digit temperatures becoming the norm in various parts of the country, workers’ lives are being put at risk. Outdoor laborers, especially those in the construction and agriculture sectors, face extreme challenges due to prolonged exposure to the blistering heat. Heat-related illnesses such as heatstroke, heat exhaustion, and heat cramps become all too common during such weather conditions. The situation is further exacerbated for workers in central and southeastern regions, where the heat wave shows no signs of giving up.

    Phoenix baked under its 27th consecutive day of record-breaking heat with temperatures of 110 degrees Fahrenheit or higher. In Texas, 13 deaths and hundreds of injuries and emergency room admissions have been attributed to scorching heat waves. Heat mitigation has been a bargaining issue for UPS drivers who threatened to strike; union leaders and UPS announced a tentative deal to equip the trucks with air conditioning, heat shields, and additional fans.

    Biden’s Call For Action

    Recognizing the severity of the heat wave’s impact on workers, President Biden’s proactive approach in requesting the DOL to issue a hazard alert for heat is both timely and commendable. This alert reminds employers of their obligation to ensure a safe working environment for their employees during hazardous heat conditions. By spotlighting this issue, the administration aims to raise awareness about the dangers of extreme heat exposure and create a sense of urgency to implement necessary precautions.

    Enhanced Worker Protections

    The DOL’s hazard alert is not merely symbolic; it comes with tangible actions to mitigate risks and preserve worker health. Employers will receive vital information on the measures they can and should take to protect their workforce during heat waves. This includes guidelines on providing adequate shade, rest breaks, and access to hydration and training workers and supervisors to recognize and respond to early signs of heat-related illnesses.

    Moreover, the DOL’s decision to ramp up enforcement of heat-safety violations demonstrates the seriousness with which the administration views this matter. Holding employers accountable for neglecting their workers’ safety during extreme heat is crucial to creating a culture of adherence to heat-safety regulations.

    A National Standard For Workplace Heat Safety

    In addition to the hazard alert, the Occupational Safety and Health Administration (OSHA) is actively working towards developing a comprehensive national standard for workplace heat-safety rules. This ambitious undertaking aims to establish uniform guidelines and protocols for all industries and regions. A national standard will streamline safety procedures and ensure consistent and effective protection for workers, regardless of their location or occupation.

    How PEOs Build Stronger Heat Safety Protections For Businesses And Workers

    In the face of escalating heat waves and their potential threats to workers’ safety, businesses have a vital role to play in safeguarding their employees. Partnering with a professional employer organization (PEO) can be a game-changer for businesses navigating these challenging times. A PEO like GMS brings expertise in human resources, risk management, and workplace safety, enabling businesses to develop comprehensive heat mitigation strategies. From providing guidance on implementing heat safety protocols to ensuring compliance with federal regulations, a PEO empowers businesses to prioritize the well-being of their workforce. By collaborating with GMS, businesses can proactively equip their workers with the necessary resources and support, fortifying them against the scorching heat waves and creating a safer, more resilient work environment for all. Contact us today to ensure a safe work environment for your workers.

  • On February 22nd, 2023, the U.S. Supreme Court ruled in favor of an oil rig worker for overtime exemptions under the Fair Labor Standards Act (FLSA). Under the Helix Energy Solutions Group Inc. v. Hewitt case, the Supreme Court ruled that to be exempt from the requirement of being paid overtime after working over 40 hours a week, an employer must pay the employee their full salary in any week in which they perform work. In simpler terms, the recent ruling declared that highly compensated employees could be eligible for overtime pay if they are paid on a daily basis. If the employer does not follow that, the employee is entitled to overtime compensation regardless of their job duties or position.

    Understanding The Court Case

    During the Helix Energy Solutions Group Inc. v. Hewitt court case, the Supreme Court was asked whether an overtime exemption under the FLSA applied to non-salaried high-earning employees. The distinction, in this case, is whether a high-earning employee should be compensated on a salary basis when his paycheck is based on a daily rate. The Supreme Court declared the long-standing FLSA and Department of Labor regulations to be upheld and considered a salaried, overtime-exempt employee, the employee must receive his full weekly salary in any week in which the employee performs any work.

    What You Should Know As A Business Owner

    The new ruling makes it essential for business owners to implement the criteria within their businesses properly. If you don’t, you could face hefty penalties. Let’s break down what the ruling says and what you should know.

    • Employees are exempt from overtime under the FLSA if they earn at least $107,432 per year on a salary basis (now at least $684 per week) and perform executive, administrative, professional, or outside sales work
    • The predetermined salary level cannot vary based on the quality or quantity of work
    • Business owners may use nondiscretionary bonuses, incentive payments, and commissions to meet up to 10% of the standard level salary
    • To be considered an executive, the employee must manage the business, direct the work of at least two full-time employees, and have the authority to hire or fire employees
    • An administrative employee is considered an individual who performs office or nonmanual work directly related to management or general business operations
    • A professional employee is defined as one who must do work that requires advanced knowledge, is predominantly intellectual in character, and includes exercising discretion and judgment

    Additional information can be found here.

    Additional Measures To Take

    Everchanging rules and regulations is a constant battle you face as a business owner. You didn’t start your business to become a lawyer or one who understands and implements every single law associated with your business. That’s where Group Management Services (GMS) comes in to help you. Our team of HR experts ensures you remain compliant with every new law that can affect your business. Whether it’s creating a job offer that clearly states their compensation and overtime pay or working with you to implement these new laws and regulations, we’re here to help. Ready to alleviate some of the weight you’re carrying? Contact us today.