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  • As the new year approaches and labor market fluctuations continue, it’s more important than ever for business owners to focus on improving employee retention and implementing wellness initiatives. Employee retention rates and wellness policies often go hand in hand; prioritizing employee wellness can lead to better retention and increased loyalty. 

    Essentially, the more you prioritize your employees and their happiness, the more likely they are to engage at work and remain with the company long-term. A great way to prioritize employee wellness and retention is by investing in benefits and offering health care plans. Continue reading to discover more about what benefits business owners should provide and how they can benefit your employees and company.  

    The Advantages of Offering Employee Benefits 

    Recruitment 

    One of the greatest advantages of offering your employees robust benefits is that it makes your company more attractive to potential employees. People want to work for a company that genuinely cares about them and provides them with access to resources that can improve their lives. According to Aflac, 77% of organizations that offer supplemental insurance report that it helps with recruitment efforts. By offering employee benefit plans, business owners can attract top talent, helping them achieve business growth and success.  

    Retention 

    Given the uncertainty in the labor market and the economy, retaining top talent can be challenging. Retaining your current workforce not only improves operational efficiency but also reduces recruitment and hiring costs. Offering employee benefits plans is one of the most effective strategies for improving employee retention. When organizations provide comprehensive benefits, they show their employees that their long-term health, security, and well-being matter. This support fosters loyalty, making employees less likely to seek opportunities elsewhere. In a competitive job market, strong benefits packages can differentiate a company, turning satisfied employees into long-term team members and advocates for the organization. 

    Trust and productivity 

    Offering employee benefit plans can significantly boost productivity and trust within an organization. When employees feel secure about their health, finances, and overall well-being, they are less distracted by personal worries and more focused on their work. Benefits such as health insurance, retirement plans, and wellness programs demonstrate that the company values its workforce, fostering a deeper sense of loyalty and commitment. This trust develops greater engagement, reduces turnover, and creates a stronger workplace culture and long-term organizational success. 

    Employee Benefits That Make a Difference 

    Health Insurance 

    Health insurance plans are the most critical benefit for employees. They provide peace of mind and ensure access to necessary medical care, reducing stress and improving overall well-being. For employers, healthier employees mean fewer sick days and higher productivity. Offering comprehensive health coverage demonstrates that you care about your team’s health and financial security. Employers should also consider offering access to supplemental benefits plans, including dental, vision, and disability insurance. This enables employers to tailor their health benefits to meet the specific needs of their employees.  

    Retirement Plan

    Retirement plans, such as a 401(k) with employer matching, are another top priority for employees. These plans help employees plan for their future and build financial stability. Employers are able to match employee contributions, effectively adding to the employee’s nest egg. When employers contribute to retirement savings, it shows a long-term commitment to their workforce, which fosters loyalty and reduces turnover. Additionally, employer contributions are often tax-deductible, making this a smart financial move for businesses. 

    Paid Time Off (PTO) 

    Paid time off is essential for maintaining work-life balance. Employees need time to recharge, and when they do, they return more focused and productive. PTO also signals that your company values mental health and personal time, which is increasingly important in today’s workplace culture.

    Work From Home 

    Flexibility is an increasingly important perk that employees look for in a role and with a company. Providing resources that give your employees the ability to exercise work-life balance highlights your company’s dedication to employee health and happiness. By developing policies for work-from-home days or flexible scheduling, you’re investing in your employees and their long-term employment.  

    Mental Health Support

    Mental health is just as important as physical health. Providing access to counseling services, therapy sessions, or Employee Assistance Programs (EAPs) helps employees manage stress and maintain emotional well-being. This leads to higher morale, better focus, and reduced burnout. 

    Streamlined Benefits 

    Offering employee benefits is not just about compliance or perks—it’s about building a thriving, loyal workforce that drives your business forward. By investing in benefits, you invest in your people, and ultimately, in your company’s success. There are a myriad of benefits and health insurance plans to offer your employees, but enrollment and employee education can be overwhelming for business owners.  

    Luckily, there are companies like Group Management Services (GMS) that can assist companies with benefits administration, health care plans, and supplemental benefits. As a professional employer organization (PEO), we help you offer cost-effective, high-quality benefits that can compete with those of larger companies, all while saving you time and money. By partnering with GMS, you receive streamlined, all-in-one employee benefits solutions. Learn more about our offerings here!  

  • As the new year begins, business owners should be thinking ahead to one of the biggest administrative responsibilities of the year: preparing for W-2s, 1099s, and tax season. Early preparation helps ensure compliance, avoid penalties, reduce stress, and create a smooth experience for you and your team. 

    This guide breaks down what you need to know, including form definitions, how to classify workers correctly, key deadlines, proactive steps to take, and how Group Management Services (GMS) can support you every step of the way. 

    Understanding W-2 vs. 1099: What’s the Difference? 

    A critical first step for tax season is knowing which tax forms apply to your workers. 

    What is a W-2? 

    A Form W-2, or Wage and Tax Statement, reports wages paid to employees and the taxes withheld on their behalf. Employers must withhold federal income tax, Social Security, Medicare, and other applicable taxes, and report that information on the W-2. 

    What is a 1099? 

    A Form 1099-NEC reports non-employee compensation, such as payments to independent contractors, freelancers, and other non-employees, when total payments reach certain thresholds. Unlike W-2 wages, these payments are not subject to tax withholding. Contractors are responsible for their own tax obligations. 

    Accurate classification between employees and independent contractors is essential. Misclassification can lead to penalties and compliance issues with the Internal Revenue Service (IRS). 

    Why Compliance Matters  

    Complying with IRS rules for payroll and information returns is not just paperwork. It is a legal requirement that protects your business. 

    Avoiding Costly Penalties 

    Failing to file correct W-2 and 1099 forms on time can result in penalties that increase the later you file. The IRS tracks timeliness and accuracy, and penalties can add up quickly, especially if mistakes are widespread or repeated. 

    Keeping Worker Records Straight 

    Providing accurate forms to employees and contractors helps them file their own tax returns correctly and prevents mismatches with IRS records that could trigger audits or notices. 

    Supporting Your Team’s Financial Wellness 

    Timely and accurate W-2s and 1099s reduce confusion and frustration for your workforce, and contractors come tax filing time. It is a simple way to reinforce professionalism and care for your people. 

    Key Deadlines You Must Know 

    While deadlines can shift slightly year to year, here are key dates to mark on your calendar as you prepare: 

    • January 31, following the close of the tax year: Deadline to furnish both W-2s and 1099s to recipients, including employees and contractors, and in most cases file with the IRS or Social Security Administration (SSA). 
    • January 31 or early February: Typical deadline to file Forms 1099-NEC and W-2 with the IRS or SSA, whether filed electronically or by mail. 
    • For certain 1099-MISC types, other due dates may apply depending on the type of income and filing method. 

    Tip: Deadlines may fall on weekends or holidays, and the IRS may adjust filing expectations slightly, so always verify the current year’s official guidance. 

    Tax Season Preparation Checklist 

    Getting ahead now can save valuable time and headaches later. Here is what you can start doing today. 

    Gather Worker Information 

    Employees should have completed Form W-4s on file with accurate names, addresses, and Social Security Numbers. Contractors should complete Form W-9s, so you have their legal name, address, and Taxpayer Identification Number. 

    Review Your Payroll Records 

    Double-check total wages paid to employees and payments to contractors to ensure accuracy. Make sure all payments that require reporting are captured in your payroll or accounting system. 

    Confirm Worker Classification 

    Review how each worker is classified as an employee or contractor. The IRS considers factors like behavioral control, financial control, and the relationship between the parties when making determinations. 

    Update Your Systems 

    Now is the best time to verify direct deposit setups, mailing addresses, and payroll data to ensure forms are delivered without delay. 

    Plan for State Filings 

    Some states require additional filings for W-2s or 1099s. Check state requirements and deadlines to remain compliant across all jurisdictions where you operate. 

    How GMS Helps You Prepare and Stay Compliant 

    Preparing for tax season is easier with the right support. GMS helps businesses navigate W-2 and 1099 reporting by combining experienced payroll professionals with technology designed to improve accuracy and reduce compliance risk. 

    Our payroll experts assist with worker classification, payroll data review, and timely federal and state filings, helping businesses avoid costly errors and penalties. With GMS Connect, employee and contractor information is centralized, calculations are automated, and W-2s and 1099s can be securely filed and accessed without last-minute stress.

    Beyond payroll, GMS provides ongoing support across HR compliance, benefits administration, and workforce management. By simplifying administrative responsibilities and keeping compliance on track year-round, GMS helps business owners head into tax season with confidence.  

    Contact us to learn how we can support your business in the new year! 

  • Payroll errors are costly, time-consuming, and damaging to your company’s reputation. From incorrect tax filings to miscalculated wages, even small mistakes can lead to compliance issues and financial penalties. Fortunately, there are a variety of solutions and steps business owners can take to minimize these risks and ensure a smooth and efficient payroll process.   

    Common Payroll Mistakes 

    On average, U.S. businesses pay $4.5 billion annually in Internal Revenue Service (IRS) payroll penalties. Payroll errors often lead to non-compliance with regulations, which quickly turn into an expensive penalty bill. While experts can make a variety of payroll errors, late filing, employee misclassification, and incorrect filings are among the most common.  

    • Missed deadlines: Whether you’re late submitting your weekly payroll or missing a payroll tax deadline completely, these late filings can lead to costly fines and hurt your credibility as an employer.  
    • Misclassification of Employees: Confusing contractors with employees can result in tax and compliance issues. It can also lead to employee distrust, which increases turnover and damages hiring efforts.  
    • Incorrect Tax Withholding: Failing to stay updated on tax laws can lead to underpayment or overpayment, leading to unnecessary expenses and noncompliance risk.  

    Ways to Prevent Payroll Errors 

    While some payroll errors fall through the cracks, there are ways to significantly reduce the risk of mistakes. Continue reading to learn several ways to prevent errors and minimize the risk involved.  

    Automate Where Possible

    Utilizing an automated payroll system is a great way to streamline processes and minimize calculation errors. With payroll software, you can automate overtime, tax, and deduction calculations, saving yourself time and reducing your stress. Payroll software can also improve employee security and flexibility by storing important information in a safe and secure portal. Employees can also access their paychecks, schedule paid time off (PTO), and more.  

    Laws and regulations are changing every day, and it’s important to stay current on payroll and tax laws as they evolve. Missing a law change can lead to noncompliance, resulting in costly penalties and fines. To ensure compliance, regularly visit government tax or labor sites that post law updates or changes, and consult payroll or financial experts on how to implement any changes.  

    Prioritize Documentation 

    When it comes to payroll, it’s important to prioritize employee information. Storing their personal records, such as their social security numbers or bank account numbers, is vital for proper payment and security. By keeping these records safe and easily accessible, you can ensure proper and timely payment for your employees. 

    Regularly Review Information and Processes 

    Technology and employee information change all the time. Employees may move; they might get a raise or close a bank account; it’s important to be aware of any changes so that you can update your records and continue to provide correct and timely payment. If you utilize payroll automation software, it’s important to stay current on software updates or process changes. To avoid any technical difficulties or improper payment, make quarterly checklists focused on verifying employee information, making proper software updates, and reviewing direct deposit amounts.  

    How Group Management Services (GMS) Can Help 

    As a business owner, you didn’t start your company to be buried in direct deposit forms and payroll checks. You started your business to do what you love and find success while doing it. Companies like Group Management Services (GMS) allow you to focus on business growth while taking on the burden of running payroll, ensuring tax compliance, and calculating overtime deductions. GMS’ payroll software is a safe and secure portal that stores employee information and automates processes, so you don’t have to worry about any discrepancies.

    GMS’ team of financial experts can ensure your compliance, whether you operate in one state or multiple. If you have a tax question or are concerned about changing regulations, our team is here to provide guidance and expertise to help your business grow and thrive. To learn more about our payroll services, click here!  

  • As businesses look to grow in 2026, one strategic advantage that is becoming increasingly important is outsourcing human resources (HR) functions. More companies are turning to professional employer organizations (PEOs) to help streamline administrative processes, improve employee satisfaction, and support sustainable growth. By partnering with an expert HR provider like Group Management Services (GMS), business owners can focus on driving their core mission forward while we handle the rest. 

    Why HR Outsourcing Is a Growth Engine 

    Outsourcing HR through a PEO is more than a convenience. It is a proven business growth engine. Today, more than 200,000 businesses across the United States partner with a PEO for HR related services, including payroll, benefits, compliance, and risk management. 

    The numbers speak for themselves: companies that work with a PEO experience significantly better outcomes compared to those that manage HR entirely in-house. According to research from the National Association of Professional Employer Organizations (NAPEO), businesses using PEO services grow twice as fast as those that don’t, have 12% lower employee turnover, and are 50% less likely to go out of business than their non-PEO counterparts.  

    In addition to improved survival rates, PEO clients often enjoy: 

    1. More consistent and competitive benefit offerings for employees 
    2. Centralized payroll and compliance support 
    3. Cost savings and increased profitability overall  

    This support enables small and midsize companies to compete more effectively and grow confidently. 

    How Outsourcing HR Relieves Administrative Burdens 

    One of the biggest challenges for business owners is keeping up with the constant administrative workload that comes with HR. Tasks such as payroll processing, benefits management, compliance reporting, and workers’ compensation are essential but time-consuming. They also demand specialized expertise that many businesses struggle to maintain internally. 

    When a company partners with a PEO like GMS, these responsibilities are handled by experienced professionals. This allows business leaders to shift their time and energy back to high-value initiatives. HR outsourcing through GMS leads to more accurate payroll, streamlined benefits administration, consistent compliance support, and easier access to answers for employee questions. Instead of juggling paperwork or navigating complex regulations, business owners can focus on growth, innovation, and daily operations with clarity and efficiency. 

    Benefits for Employees Too 

    Outsourcing HR not only helps leaders. It also provides meaningful benefits to employees. Through a PEO partnership, employees gain access to: 

    1. Competitive benefits packages that are often similar to what larger companies offer 
    2. Easier enrollment and better benefit administration 
    3. Consistent payroll and HR support 
    4. Resources that help with questions about benefits, compensation, or workplace policies  

    These improvements help increase job satisfaction and overall retention. In a competitive talent market, the ability to offer strong benefits and dependable support can significantly improve a company’s ability to attract and keep great employees.  

    Client Success Story 

    “Having GMS administer our payroll, health care benefits, workers’ compensation, and assisting with human resources management has enabled us to focus our own resources on our core business of making quality aluminum extrusions. The contacts that I use at GMS are knowledgeable, professional, and provide accurate information in a timely manner.” 

    — Manufacturer 

    This testimonial reflects what many GMS clients experience. With HR experts managing essential functions, businesses regain time, clarity, and confidence to focus on their core mission. 

    Partner with GMS to Scale in the New Year 

    As you plan for the year ahead, consider how outsourcing HR could be a game-changer for your business. Partnering with a trusted PEO like GMS gives you the expertise, infrastructure, and peace of mind to scale without being bogged down in administrative tasks. 

    Ready to see if a PEO is right for you? 

    Schedule a 15-minute conversation and discover how we can help your business grow in 2026 and beyond. 

  • As the end of the year approaches, businesses are reviewing their balance sheets, reflecting on their growth, identifying problem areas, and developing a game plan for 2026. Among the tasks business owners should prioritize completing at the end of the year, performance reviews should be listed at the top. Employees are the lifeblood of a company; checking in with them and monitoring their progress with a performance review is vital to retaining top talent, fostering loyalty, and improving your bottom line. 

    End-of-year performance reviews are an important touchpoint for employers and employees. It’s important to understand how this process benefits your company and the best practices for conducting it. Continue reading to learn more about the benefits of end-of-year performance reviews and how to run them effectively.  

    Introducing Performance Reviews 

    An end-of-year employee performance review is an evaluation of an employee’s performance throughout the year. While the metrics for a successful year depend on the individual, the purpose of these reviews is to help the employee and employer discuss topics ranging from job performance, training, areas for improvement, and career development. These reviews are also great times for employees to discuss compensation, potential promotions or raises, and to strategize for the upcoming year. 

    Benefits of an end-of-year performance review 

    Performance reviews provide a variety of benefits to the entire company. They can: 

    • Build a workplace culture that prioritizes employee growth 
    • Clarify employee expectations and objectives 
    • Foster greater communication across management levels 
    • Improve employee engagement and productivity 
    • Provide personalized guidance on career development 
    • Clarify job expectations 
    • Improve morale 

    Best Practices for Conducting Performance Reviews 

    Prepare thoroughly

    To effectively conduct a performance review, preparation is essential. Gather data from the past year; this data can include peer feedback, the employee’s previous goals, past performance reviews, and self-evaluations. Then, based on that data, develop important talking points for the meeting and make notes on the most important points to discuss.  It’s also key to schedule time at the end of the meeting for employee questions and concerns. 

    Prioritize open communication 

    During the review, encourage your employees to share their perspectives and the challenges they’ve faced this year. Hearing their point of view can strengthen your relationship and allow you to gain a stronger understanding of their strengths, weaknesses, and future goals.  

    Set goals 

    One of the main objectives of conducting end-of-year performance reviews is to track an employee’s professional progress from the beginning to the end of the year. But an equally important objective of these reviews is to plan and set employee goals for the next year. Setting KPIs and goals for the following year acts as a benchmark for progress and professional development.  

    While professional goals differ from employee to employee, they should be specific, actionable, and measurable. By working with your employees on their goals, you can set a precedent for what they should focus on during the next year and help them build a plan for how they are going to achieve them.  

    Maintain regular check-ins

    End-of-year performance reviews are a common process throughout businesses, but you shouldn’t wait until the end of the year to check in with your workforce. By scheduling consistent reviews and check-ins, you foster a culture focused on open communication, employee development, and trust. Employees are also more likely to reach their goals by checking in with their employers and adjusting their benchmarks or KPIs as they see fit.  

    Employee Management Assistance 

    Performance reviews are about growth, communication, and organizational alignment. When approached thoughtfully, they strengthen relationships, enhance productivity, and create a thriving workplace culture. Employees are the cornerstone of a strong and successful company, and by checking in with them, your business is one step closer to overall development and growth.  

    While you may not be an expert in performance reviews, Group Management Services (GMS) can help. With our knowledgeable Human Resources (HR) team, we consult business owners on best practices for employee growth and management initiatives. We can assist with writing employee handbooks, recruitment, employee training, and more. From performance reviews and HR audits to unemployment, GMS can help your business and employees thrive. Learn more about our HR services here!  

  • As 2026 approaches, small business owners face a year of rapid change driven by technology, workforce evolution, and shifting customer expectations. Key trends include the rise of digital customer experiences, accelerated adoption of artificial intelligence and automation, and growing demand for flexible work models. Businesses must also prepare for complex regulatory updates, strengthen cybersecurity measures, and embrace sustainability initiatives to stay competitive. Explore these six critical trends and actionable tips to futureproof your business for 2026. 

    As 2026 approaches, small and midsize business owners are preparing for another year shaped by rapid innovation, evolving workforce expectations, and new economic realities. The businesses that plan ahead now will be better positioned to stay competitive, attract talent, and support long-term growth. 

    Below are the key trends shaping the year ahead and what they mean for employers. 

    1. A Shift Toward Digital Customer Experience 

    Online sales now account for 16.3% of total U.S. retail sales as of Q2 2025. More customers expect seamless online experiences, personalized communication, and a mix of both digital and in-person interaction. Small businesses that fail to meet these expectations risk losing customers to competitors who prioritize convenience, personalization, and speed. 

    Key digital experience trends include: 

    1. More businesses are launching or expanding e-commerce channels 
    2. Growth of subscription or recurring revenue models 
    3. Increased personalization in marketing and customer touchpoints 
    4. Greater integration between online and physical customer experiences 

    Action Tip: Review where your customers interact with your business online. Improving website performance, updating online booking tools, or expanding digital touchpoints can strengthen loyalty and make revenue more predictable. 

    2. Artificial Intelligence (AI) and Automation  

    Artificial intelligence adoption is accelerating across businesses of all sizes. According to the U.S. Chamber of Commerce’s 2025 report on technology adoption among U.S. small businesses, nearly 60% of small businesses now say they use some form of artificial intelligence.  

    Some of the most common uses include: 

    1. Automating repetitive administrative tasks like scheduling, payroll processing, and data entry 
    2. Enhancing customer service through chatbots and automated responses 
    3. Improving human resources (HR) processes, including recruiting, onboarding, and performance tracking 

    Small businesses that adopt AI tend to outperform peers relying on traditional methods. These businesses often report increased operational efficiency, reduced costs, and the ability to offer services and responsiveness more typically associated with larger firms.  

    Action Tip: Identify tasks in your business that are repetitive, time-consuming, or require significant manual effort. That’s often where AI or automation tools will deliver the most benefit in 2026. 

    3. Workforce Trends 

    As the labor market continues to shift, 2026 will be a pivotal year for how small and midsize businesses think about staffing, talent acquisition, and workforce development. According to Indeed, hiring trends are leaning strongly toward more inclusive, flexible, and candidate‑centered practices, making it essential for businesses not just to fill roles, but to build resilient, growth‑ready teams. 

    Key areas to watch: 

    1. Continued demand for flexible or hybrid work arrangements  
    2. Rising interest in contract, freelance, and seasonal work to manage variable workloads without overextending your team 
    3. A growing need for employee upskilling to keep up with technology and close skill gaps 
    4. Increased competition for skilled workers, particularly in tech-driven roles 

    As hiring challenges continue, small businesses will need strong benefits, consistent communication, and modern HR support to stay competitive. 

    Action Tip: Assess benefits, recruitment, and training strategies for gaps. Employees who feel supported and equipped for change are more likely to stay long term. 

    4. Regulatory Changes Will Grow More Complex 

    With new labor, tax, and benefit regulations on the horizon, compliance remains a top priority for business owners. In 2026, companies may face updates to minimum wage, payroll taxes, retirement plan rules, and workplace safety regulations. 

    Staying compliant is critical not only to avoid penalties but also to build trust with employees and maintain operational efficiency. Businesses increasingly rely on professional partners to manage these areas accurately and efficiently. 

    Key areas to watch: 

    1. Keeping up with state and federal regulatory updates 
    2. Payroll tax compliance  
    3. Pay transparency acts 
    4. Minimum wage and exempt salary thresholds 
    5. Paid leave expansions 
    6. Occupational Safety and Health Administration (OSHA) electronic injury reporting 
    7. And much more 

    Action Tip: Conduct a compliance audit and partner with experts to simplify processes and reduce risk in 2026. 

    5. Cybersecurity and Data Protection  

    As businesses adopt more technology and digital tools, cybersecurity risks increase. Small businesses are often targeted because they may not have robust defenses. Cyberattacks can disrupt operations, damage customer trust, and result in costly fines or lawsuits. In 2026, protecting data, including employee, customer, and financial information, will be essential for maintaining business continuity and reputation.  

    Key areas to watch: 

    1. Regularly update software, firewalls, and network security to stay ahead of evolving threats 
    2. Implementing secure cloud and IT solutions 
    3. Training employees on security best practices, including phishing, password security, and safe use of devices and software 

    Action Tip: Conduct a cybersecurity audit, implement employee training, and explore cyber liability insurance to reduce risk and protect your business in 2026. 

    6. Sustainability  

    Customers and employees increasingly evaluate companies based on transparency, sustainability, and ethical practices. Deloitte predicts that by 2026, sustainability will continue influencing consumer behavior, brand loyalty, and employee satisfaction. 

    Even small initiatives, such as reducing waste, sourcing responsibly, or participating in community programs, can improve brand loyalty and employee engagement.  

    Small businesses can benefit by: 

    1. Reducing waste or energy usage 
    2. Clearly communicating company values 
    3. Creating community involvement or social responsibility initiatives 
    4. Purchasing materials from vendors with responsible practices 

    Action Tip: Choose one achievable sustainability goal for 2026. Small changes can improve brand perception and strengthen customer trust. 

    How GMS Helps Business Owners Stay Ahead of 2026 Trends 

    Navigating these trends can feel overwhelming, but GMS helps businesses stay ahead in every area. We provide: 

    1. Payroll, HR, and benefits support: Simplifying complex processes so owners can focus on growth. 
    2. Compliance expertise: Ensuring your business complies with evolving labor, payroll, and benefits regulations to avoid fines and operational risks. 
    3. Workforce strategy guidance: Helping you design flexible, inclusive, and development-focused workplaces to attract and retain top talent. 
    4. Risk management and cybersecurity support: Offering guidance on protecting sensitive data and exploring solutions like cyber liability insurance. 
    5. Technology adoption and process optimization: Helping you implement tools that boost efficiency, reduce errors, and free your team to focus on strategic priorities. 

    GMS is here to help business owners adapt with confidence and stay ahead of what is coming in 2026. Contact us to learn how we can support your business’s unique needs. 

  • A new year brings the promise of fresh starts, new beginnings, and change. In 2026, there will be numerous updates to laws and regulations that California business owners need to be aware of. These changes will impact paid sick leave, labor laws, garnishments, discrimination, and more.

    California business owners need to stay informed about these changing regulations to understand how they will affect their employees and business operations. Being aware of these upcoming legal changes ensures that your business remains compliant, safe, and employee-focused.  

    California Law Changes and Updates 

    While the list below doesn’t cover all new or updated laws and regulations, the following are essential for business owners to understand because they involve changes to employee labor laws, employer procedures, and compliance. 

    California Assembly Bill (AB) 288 

    Signed into law in September of this year, California AB 288 extends greater protection to employees if the National Labor Relations Board (NLRB) doesn’t act on an unfair labor practice case. An unfair labor practice is defined as any employer action that violates the rights of employees under federal labor law. Common unfair labor practices include threatening employees with job loss if they join a union, excluding employees from meetings, discrimination, and more.  

    If the NLRB doesn’t act on a case in six months, employees can petition the Public Employment Relations Board (PERB) to step in. PERB has the authority to manage union elections, investigate complaints, and enforce labor laws. Employers who break the rules can face fines of up to $1,000 per violation. 

    California AB 406

    California Assembly Bill 406 significantly broadens employee leave protections for victims of crime and legal obligations related to a crime. Although enacted in October of 2025, this law is still relatively new and important for California employers to understand. Employees may use paid sick leave for jury duty or to testify as a witness under subpoena. 

    Beginning January 1st, 2026, the law establishes that employers provide unpaid leave for employees or their family members to attend judicial proceedings connected to certain crimes, including hearings on victim rights or sentencing. Covered crimes include violent and serious felonies, such as domestic violence, stalking, felony theft, embezzlement, and more. Employers are required to educate and notify their employees on their rights regarding AB 406.  

    California AB 692

    Under this new law, California employers cannot include contract terms that require employees to pay penalties or reimburse costs incurred by the employer if the employee leaves the company, or if the employment ends before a specified time period. These contracts are commonly referred to as “pay or stay” contracts, and these are becoming increasingly frowned upon across all industries. Assembly Bill 692, with very few exceptions, says employers will not be able to recover these funds if they paid for the employees training, for a retention bonus, or other employment-related expenses. 

    For best practice, employers should review current employment contracts to ensure compliance with this new law. Carefully review your current policies and retention strategies to ensure they focus on employee health and wellness. This can be one way to retain your top talent, instead of relying on these contract clauses to keep your team and talent at your company.  

    California SB 261

    California’s SB261 expands the authority of the Division of Labor Standards Enforcement concerning wage claims. A wage claim is a legal process that allows an employee to recover wages they believe their employer has illegally withheld. Common reasons for filing a wage claim include employee misclassification, unpaid overtime, and potential violations of minimum wage laws. This law requires that employers who fail to pay wage judgments within 180 days of the appeal period will face penalties of up to three times the outstanding amount.  

    Employers should prioritize prompt payments in all business areas, not only for wages or claims. This practice will help ensure you do not incur unnecessary costs and will safeguard your reputation as a compliant, employee-oriented company. 

    California SB 294

    Beginning in February 2026, California will require employers to provide annual written notices of labor rights to both current and new employees. These notices must include information about immigration inspections, union rights, workers’ compensation benefits, and other relevant topics. Additionally, employers will need to give existing employees the chance to provide an emergency contact in the event of an accident or workplace injury. 

    Employers should send out company-wide written notices before or on February 1st, 2026. They should also make a note to contact their employees and ask them to name an emergency contact. This should be done by March 30th, 2026.  

    California Compliance with Group Management Services 

    Staying on top of state labor laws can be a challenge for California business owners. New or updated regulations are constantly signed into law, making it difficult for businesses to be compliant and act on new standards in a timely manner. Many businesses could benefit by partnering with a third-party company like Group Management Services (GMS) to ensure their compliance with local and state laws. 

    GMS’ team of human resources (HR) experts helps you stay on top of local and state laws and compliance requirements. They can help you provide necessary documentation, develop a communication plan to share law changes, and consult on best practices to ensure compliance and safety.  

    Learn how to stay compliant and discover how you can benefit from GMS’ services here! 

  • Upcoming updates to Pittsburgh’s Paid Sick Days Act will change how employers handle sick leave, payroll, and compliance. Businesses should review policies and train managers now to avoid costly mistakes. Continue reading to learn how these changes could impact your operations.

    The Pittsburgh Paid Sick Days Act (PSDA) requires most employers to provide paid sick leave to employees who perform work within the city. This law is designed to help employees care for their own health and the health of their families without risking their income. Beginning January 1, 2026, amendments will increase the rate at which employees earn paid sick time and raise the maximum amount of leave that can be accrued each year. Because these changes affect how employers track time, update policies, and manage payroll, it is important for businesses to understand what the act requires and how it impacts daily operations. 

    Key Requirements of the PSDA 

    Under the PSDA, employees must be allowed to accrue one hour of paid sick time for every 30 hours worked within Pittsburgh city limits. The amount of leave that can be earned each year depends on the employer’s size. Businesses with 15 or more employees must allow workers to accrue up to 72 hours of paid sick leave per year, while employers with 14 or fewer employees must provide up to 48 hours annually.  

    Employees can use paid sick time for their own medical needs, for a family member’s medical care, for preventive medical appointments, or to care for a child if school or childcare closes during a public health emergency. Sick time can also be carried over to the next year if the employer uses an accrual system. Employers who front-load the full required amount at the beginning of the year may follow separate carryover rules. 

    Implications for Employers 

    These changes mean many businesses will need to review their current paid time off policies to ensure compliance with both the current ordinance and the updates that take effect in 2026. Employers may need to adjust their payroll systems to calculate the new accrual rate and to track employees who work only part of their time within the city. It may also be necessary to modify employee handbooks, train managers on when sick leave can be used, and ensure that sick time is not denied or discouraged.  

    Businesses that operate across multiple municipalities may face additional challenges if different locations follow different sick leave laws, making clear policy language especially important. Noncompliance can lead to formal complaints, investigations, and potential penalties administered by the City of Pittsburgh. 

    Posting and Reporting Requirements 

    Employers must provide employees with clear written notice of their rights under the Pittsburgh PSDA. This notice must be posted in a visible location at the workplace and communicated to employees in a way that explains how sick time is earned, what it can be used for, and how to request it.  

    Employers are also required to document sick time accrual and usage to ensure accurate reporting if a complaint is filed. The City of Pittsburgh provides an online complaint process for employees who believe their rights have been violated, which makes proper documentation especially important for employers. 

    How GMS Can Help 

    Staying compliant with local labor laws can be complex, especially as legislation evolves. Group Management Services (GMS) helps employers manage compliance through human resources (HR) support, policy development, payroll administration, and risk management services. We can review your current sick leave policies, update your handbook language, configure payroll to track accruals, and provide accurate training for managers. Our compliance experts are here to ensure your business is prepared for changes to the Pittsburgh Paid Sick Days Act and other regulations affecting your workplace. With the right support, employers can protect their business, meet legal requirements, and provide meaningful benefits to their employees. 

    If you need support reviewing your policies or ensuring full compliance with PSDA, contact GMS today!  

  • In every industry, prioritizing worker health and safety should be a top concern for business owners. Although investing in safety measures can be costly, the impact of a worker’s injury or illness can be far more damaging to your business in the long run. For instance, the costs associated with workers’ compensation claims, reduced productivity, and damage to your reputation can quickly accumulate, negatively impacting your business’s success and bottom line for years to come. 

    The Importance of Employee Safety 

    In 2024, U.S. employers reported roughly 1.5 million  work-related injury and illness cases. About  90%  of these cases were injuries, with construction, manufacturing, and transportation as the top industries for injuries to occur. 

    These statistics serve as a reminder that managing the risks associated with operating your business goes beyond simply filing paperwork, writing policies, or providing hard hats. It requires a commitment to prevention and focus on follow-through. Employers have a responsibility to provide a safe and healthy workplace for their employees. One effective way to ensure that your work environment is secure and compliant is by conducting a safety audit. 

    The World of Safety Audits 

    Safety audits are a proven method to ensure that small businesses have the right programs and policies in place to reduce accidents, injuries, and overall risk. A safety audit is a systematic review of workplace processes, equipment, and practices to ensure they meet safety standards and regulatory requirements. Conducting an audit is not just about identifying hazards; it’s about creating proactive and effective solutions.  

    Benefits of conducting a safety audit 

    Conducting a safety audit is beneficial for a variety of reasons: 

    • Ensures regulatory compliance 
    • Reduces the risk of workers’ compensation claims and payments 
    • Develops and enforces a workplace culture focused on health and safety 
    • Boosts employee morale and trust 
    • Improves preparedness for emergencies and accidents

    The Process of Conducting a Safety Audit 

    Preparation 

    To conduct an effective safety audit, start by clearly defining your objectives, whether it’s ensuring compliance, improving safety culture, or reducing incident rates. Gather all relevant documentation, including information on current safety policies, training records, past incident reports, and maintenance logs. 

    Next, prepare a detailed checklist of areas to inspect, focusing on high-risk zones such as machinery or chemical handling stations. Include checking on potential hazards like fire risks, electrical issues, and the proper use of protective equipment. This proactive approach ensures that no area is overlooked and helps identify risks before they lead to accidents. 

    Conducting an audit

    When inspecting the workplace, start with a thorough walkthrough of the facility to observe daily operations and identify hazards such as blocked exits, faulty equipment, or improper use of personal protective equipment (PPE). Pay close attention to high-risk areas and check that machines are functioning properly, meet safety codes, and display the required signage.  

    In addition to physical checks, interview employees to gain insight into operational safety practices and challenges. Encourage honest feedback to uncover gaps in current procedures. Finally, evaluate compliance by comparing your findings against the Occupational Safety and Health Administration (OSHA) standards or other applicable regulations, noting any gaps and prioritizing implementing effective solutions. This approach ensures that both operational and managerial practices are aligned with safety requirements. 

    Reporting 

    After completing the audit, compile all findings into a clear report and assess the severity of each hazard. Prioritize the most critical risks first, as these pose the greatest threat to employee safety and operational continuity. Once the top hazards are identified, brainstorm practical solutions. These may include providing targeted training on specific safety procedures, purchasing new protective equipment such as flame-resistant gloves or hard hats, installing proper signage near high-voltage areas, adding fire extinguishers, or implementing lockout/tagout systems for machinery.  

    Sharing the report with management is essential to identifying the next steps and creating a detailed action plan that outlines responsibilities, timelines, and resources needed to implement the proposed solutions effectively. This structured approach transforms audit results into actionable improvements that enhance workplace safety. 

    A Safety Partner 

    At Group Management Services (GMS), we understand that creating a safe and compliant workplace isn’t just about meeting regulations; it’s about protecting your people and your business. By making them part of your operational routine, you protect your people, your reputation, and your bottom line. Our team helps companies implement proactive safety measures, conduct thorough audits, and develop customized solutions that reduce risk and improve employee well-being. By partnering with GMS, you gain expert guidance and resources to build a culture of safety that minimizes costly incidents and supports long-term success. 

  • In 2026, employee handbooks must evolve to keep businesses compliant and competitive. This guide highlights key updates across artificial intelligence (AI) usage policies and remote work standards, data privacy, social media rules, and wage law changes. Learn how to refresh your handbook to protect your company, support employees, and stay ahead of legal requirements. 

    A modern employee handbook should protect your business, support your employees, and comply with current legal requirements. As work environments and employment laws evolve, your policies must keep pace. Here are the top areas to update for 2026. 

    Update Workplace Policies and Conduct Standards 

    Artificial Intelligence and Automated Tools 

    Create clear guidelines for how AI can be used at work. Define approved tools, tasks, and who is responsible for oversight. If AI supports hiring, performance reviews, or disciplinary decisions, ensure there is a human to review and mitigate bias. 

    Remote and Hybrid Work 

    Formalize expectations around work hours, communication, security, and equipment. Clarify who is responsible for technology, how it should be maintained, and how employees must protect company data while working from home. 

    Social Media 

    Protect your company brand without restricting employee rights. Social media policies should not prevent employees from discussing pay or working conditions, which may be protected under labor laws. 

    Data Privacy and Cybersecurity 

    Update acceptable use, device management, and data handling expectations. Include password requirements, remote access rules, and incident reporting procedures that reflect current cybersecurity standards. 

    Anti-Harassment and Inclusion 

    Ensure policies follow current legal guidance and outline a simple, accessible reporting process. Reinforce your commitment to fair treatment and equal opportunity for all employees. 

    Review Legal and Compliance Requirements 

    Wage and Hour Laws 

    Update policies to reflect changes to overtime rules, exempt classifications, tip regulations, and minimum wage increases at the federal, state, or local levels. Pay transparency laws may also impact how you communicate compensation to current and potential employees. 

    Required Notices 

    Some jurisdictions now require standalone employee notices related to rights, safety, harassment reporting, or leave benefits. Ensure your handbook references these requirements, and that employees receive them separately when needed. 

    State and Local Rules 

    Paid sick leave, family leave, scheduling rules, privacy laws, and protected classes vary by state. If you operate in multiple locations, your handbook must outline state-specific differences or reference separate state supplements. 

    Noncompete and Training Repayment Policies 

    Restrictions on noncompete clauses and repayment agreements for training continue to grow at the state level. Review these policies carefully to avoid terms that are unenforceable or prohibited. 

    Update Benefits and Compensation Information 

    Paid Time Off 

    Clarify accrual rules, carryover limits, usage procedures, and payout terms. Ensure your handbook reflects any new state or local leave laws that expand employees’ rights. 

    New or Updated Benefits 

    If your organization offers telehealth benefits, student loan assistance, dependent care accounts, or other emerging benefit options, include them clearly in the handbook. Outline eligibility, enrollment, and deadlines. 

    Tip and Service Charge Policies 

    For businesses with tipped workers, document tip pooling rules, recordkeeping expectations, and wage make-up procedures. These must align with current state and federal laws. 

    Strengthen Cybersecurity and Privacy Expectations 

    As remote work grows and data risks increase, employees must understand how to protect company information. Update policies to address encryption requirements, personal device rules, storage limitations, and response steps in the event of a breach. 

    Why These Updates Matter and How GMS Can Help 

    A well-written handbook protects your organization, supports compliance, and gives employees confidence that policies are fair and transparent. Keeping it updated is essential, especially as new laws and workplace trends emerge. 

    For many employers, tracking rule changes, updating policies, and ensuring the language is legally accurate can feel overwhelming. Each year brings new regulations around leave laws, pay transparency, noncompetes, privacy, AI use, and workplace conduct. It is a lot to manage while also running a business. 

    That is where Group Management Services (GMS) comes in. We make human resources (HR) compliance easier by reviewing and refreshing your handbook, building policies that meet legal requirements, and tailoring them to your company culture. As your HR outsourcing partner, we support you with multi-state regulations, benefits updates, employee relations guidance, and training so you do not have to navigate compliance alone. 

    Contact us to explore how you can save time, avoid costly mistakes, and stay compliant with confidence.