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  • In a move for workers’ rights and personal freedoms, California has taken a bold step by embracing a progressive attitude towards marijuana use in the workplace. Governor Gavin Newsom signed Senate Bill 700 into law, indicating a new era for job applicants in California. Effective January 1st, 2024, this legislation ensures that employers can no longer inquire about a job applicant’s past marijuana use, and it also prevents pre-employment drug screenings for cannabis. But that’s not all – the law goes the extra mile to protect individuals from being penalized for off-the-clock marijuana use, marking a significant turning point in employment practices.

    A Legal Game Changer

    Before diving into the specifics of this law, it’s essential to understand its scope. The bill doesn’t serve as a blanket protection for job applicants. Instead, it offers essential safeguards for a broad range of workers. If a job applicant’s past marijuana use is relevant to their criminal history, employers are still permitted to consider this information. The law acknowledges that there are situations where such information can be legitimately taken into account in accordance with state and federal laws.

    Another crucial point to note is that the law doesn’t extend to job applicants in the construction and building trades. While this may seem like an exception, it’s crucial to recognize certain professions’ unique safety concerns and legal obligations.

    Off-The-Clock Freedom

    One of the most exciting aspects of this legislation is its provision to protect individuals from being penalized due to off-the-clock marijuana use. This means that, within the bounds of the law, you can enjoy your personal time without fear of workplace consequences. This change will likely boost morale, reduce stress, and enhance job satisfaction for countless California workers who indulge in the recreational use of marijuana.

    Steering Towards Progress

    This law signifies California’s commitment to align with the evolving views on marijuana, both for medical and recreational purposes. As more states across the U.S. continue to relax their cannabis laws, California stands out as a pioneer in safeguarding workers’ rights, demonstrating a dedication to creating a more inclusive and tolerant work environment.

    Feeling Overwhelmed Yet?

    In California, the changing landscape of employment laws, especially regarding marijuana use, has presented additional challenges for small business owners. Fortunately, a professional employer organization (PEO) like Group Management Services (GMS) is here to help. Small business owners can lean on GMS to remain compliant, allowing them to focus on what truly matters – growing their business and nurturing their employees. As we embrace this new employment era in California, GMS’ HR experts stand ready to provide small business owners with the resources, knowledge, and peace of mind they need to flourish in an ever-changing world. Contact us today to learn more.

  • In a significant stride towards ensuring worker rights and job security, New Jersey Governor Philip Murphy signed Assembly Bill 4682 into law. This groundbreaking legislation, set to take effect on October 22nd, introduces a host of employment protections aimed at safeguarding the interests of specific “service employees” during ownership changes. This legislation is poised to bring about transformative changes in the landscape of employment rights within the state.

    Defining Service Employees

    Under the provisions of this new law, a “service employee” is clearly defined as an individual employed or assigned to a covered location for at least 60 days. It excludes managerial or professional employees and those regularly scheduled for less than 16 hours per week. The scope of the law covers various occupations, including:

    1. Care and maintenance of buildings or properties
    2. Passenger-related security services at airports
    3. Food preparation services at educational institutions 

    It also excludes individuals involved in construction projects requiring municipal permits. 

    Covered Locations

    The law applies to specific covered locations, whether publicly or privately owned. These include the following: 

    • Multifamily residential buildings with more than 50 units
    • Large commercial centers or office complexes
    • Schools and institutions
    • Cultural centers
    • Industrial sites
    • Airports
    • Hospitals
    • State courts
    • Distribution centers

    Key Provisions 

    This new law introduces several crucial changes to employment practices:

    1. Transition period: It reduces the transition period from 90 to 60 days, during which a successor employer must retain affected service employees at a covered location. 
    2. Just cause requirement: A successor employer cannot discharge a retained service employee without just cause during the 60-day transition period. 
    3. Notification: Covered entities must provide written notice to service employees, collective bargaining representatives, and affected work sites 15 days before terminating a service contract or selling/transferring property. 
    4. Successor employer obligations: Successor employers must make a written offer of employment to affected service employees, retain them for 60 days or until the service contract is terminated (whichever is earlier), and adhere to seniority-based retention and preferential hiring. 
    5. Collective bargaining agreement exception: If a successor employer agrees to the collective bargaining agreement of the awarding authority or contractor before the service contract termination, this law does not apply. 

    Enforcement And Penalties 

    Employers should take note of the significant penalties associated with non-compliance. Violations may result in fines of up to $2,500 for the first offense and up to $5,000 for subsequent violations. Each week of violation is considered a separate offense.

    Compliance And Employment Law Expertise

    For small businesses navigating the complex landscape of New Jersey’s evolving labor laws, the role of a professional employer organization (PEO) becomes increasingly vital. As the state ushers in these progressive employment protections, PEOs offer a lifeline to businesses by providing expert guidance and support in ensuring compliance. By partnering with a PEO, small businesses can leverage the collective expertise and resources to seamlessly manage the intricacies of employment law, including the newly established protections for service employees. With a PEO like GMS by your side, businesses can confidently navigate these changes while focusing on what they do best – driving growth and success in New Jersey’s dynamic business environment. Contact us today to learn more!

  • In recent years, there has been a growing movement to reform the criminal justice system in the U.S. One issue that has gained significant attention is the use of criminal history information in employment decisions. In 2018, California created the Fair Chance Act, which is a law that aims to reduce undue barriers to employment for individuals with criminal histories. It generally prohibits employers with five or more employees from asking a job candidate about conviction history before making a job offer, among other requirements.

    The Fair Chance Act Of 2023

    Since then, the California Legislature introduced the Fair Chance Act of 2023, which would expand upon the Fair Chance Act if passed. This act would further restrict how employers can use information about the criminal histories of job seekers and employees. It requires employers to send the applicant a written notice that lists the disqualifying convictions that form the basis for rescinding a job offer and a copy of the conviction history report.

    Ultimately, it allows employers to seek a job applicant’s conviction history report only in the following circumstances:

    • Federal or state law or federal regulation requires an employer to obtain the information 
    • Federal or state law prohibits an individual with a particular conviction history from holding the position sought, regardless of whether the conviction has been expunged, sealed, or dismissed
    • Federal or state law prohibits an applicant with that particular conviction from being hired

    In addition, it prohibits employers from rejecting an applicant because of their conviction history without first conducting an individualized assessment of whether their conviction history has a “direct and adverse” relationship to the job. The current law requires California employers to disclose in writing that they are asking for a criminal background report. However, if the new bill is passed, employers must also provide information about any laws or regulations that impose employment restrictions based on a conviction and could result in an adverse employment action.

    The bill also expands the number of employment practices deemed unlawful, including:

    • Ending an interview
    • Rejecting an application or otherwise terminating the application process based on conviction history information the applicant provides, or the employer learns from another source

    It’s critical to note that the 2023 bill, if passed, only applies to criminal history. That means employers remain free to do additional types of background checks, such as verifying an individual’s identity, home address, education credentials, and previous employers.

    Feeling Overwhelmed?

    Should the Fair Chance Act of 2023 pass, it would significantly disrupt the regular hiring process for almost every employer in California. Fear no more – GMS is here to navigate these ever-changing rules and regulations with you. We understand that in today’s rapidly evolving business landscape, keeping up with these new laws can be daunting, especially for California small businesses. Fortunately, partnering with a professional employer organization (PEO) like GMS can help alleviate these burdens, providing your business with the necessary resources and expertise to ensure compliance and success.

    With GMS experts by your side, you can rest easy knowing that you have a trusted partner who is committed to helping you navigate the complexities of employment laws while allowing you to focus on what you do best – growing your business. Interested in learning more? Contact our HR experts today.

  • With the uncertainty of today’s economy, where employees are becoming more independent and knowledgeable, there has been a drastic increase in employment-related lawsuits, making employment practices liability insurance (EPLI) a must-have. EPLI covers businesses against claims made by workers that their legal rights as employees of the company have been violated. It protects a variety of different employee lawsuits, including claims of:

    • Sexual harassment
    • Discrimination
    • Wrongful termination
    • Breach of employment contract
    • Negligent evaluation
    • Failure to employ or promote
    • Wrongful discipline
    • Deprivation of career opportunity 
    • Wrongful infliction of emotional distress
    • Mismanagement of employee benefit plans

    Depending on the type of business you operate, and how many employees you have, along with various risk factors, the cost of EPLI coverage varies. This coverage will essentially reimburse your business against the costs of defending a lawsuit in court. The policy will still cover the legal costs if your company loses the lawsuit.

    Why This Is Important For Small Business Owners

    For small business owners, EPLI coverage is critical to have. Within the last five years, six out of 10 employers have had to deal with employment lawsuits. If an employee sues you for wrongful termination, you don’t have the money to protect yourself and your business like a larger corporation can. A lawsuit could incur hundreds of thousands of dollars in legal costs and attorney fees. Small to medium-sized businesses pay an average of $160,000 to resolve this kind of lawsuit.

    For a small business, that’s enough to take down your business, putting everything you’ve worked endless hours to achieve in jeopardy. If that’s not enough to get you to get this coverage, consider these five additional reasons:

    1. Employee lawsuits are growing
    2. Settlements are getting more expensive
    3. Big or small – all businesses face risks
    4. You can be fault-free; however, it will cost you
    5. Your current policy most likely doesn’t provide coverage 

    Luckily, there are ways in which you can prevent employee lawsuits from happening. It’s essential that you educate your managers and employees so that you minimize problems from the very beginning by doing the following:

    • Create effective hiring and screening programs; thus, you’re avoiding any discrimination throughout the hiring process
    • Hang corporate policies throughout the workplace
    • Ensure policies are written out in your employee handbook, making them very clear to all employees
    • Showcase what steps employees can take if they are discriminated against or sexually harassed by a supervisor 
    • Document everything while also showing the steps your business is taking to prevent and solve employee disputes

    While having this type of coverage is the first step in protecting yourself from these lawsuits, you must also focus on your company culture. Your culture should exhibit a safe environment where discrimination and harassment of any kind are not tolerated.

    Not Sure Where To Begin?

    We get it. You didn’t start your business to become a lawyer and protect yourself from employee lawsuits. That’s what professional employer organizations (PEOs) are here to help with. When you partner with a PEO like GMS, you gain access to HR experts that are trained to help business owners during these challenging times. While GMS offers EPLI as a line of coverage, we do so much more than that. To prevent these lawsuits, we take proactive measures. We help create handbooks stating all corporate policies and steps in which you and your employees should take in any situation. In addition, our HR experts work hand in hand with you and your business to mitigate employment risks and address any discrepancies. GMS takes on all the administrative burdens you don’t have the time or expertise to manage effectively. Contact us today to learn more.