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  • The U.S. Department of Labor (DOL) announced a final rule, defining and eliminating the exemptions for executive, administration, professional, outside sales, and computer employees. This will take effect on July 1, 2024. The final rule updates and revises the regulations issued under section 13(a)(1) of the Fair Labor Standards Act (FLSA) implementing the exemption from minimum wage and overtime pay requirements for these employees.

    The revisions to the overtime exemption regulations include:

    • Increases to the standard salary level
    • Increases to the highly compensated employee total annual compensation threshold
    • A mechanism that provides for the timely and efficient updating of these earnings thresholds to reflect current earnings data

    Which Employees Are Exempt?

    Employees are exempt from the FLSA’s minimum wage and overtime protections if they are employed in a bona fide executive, administrative, or professional (EAP) capacity. To be within the EAP exemption, an employee must meet three tests:

    1. Be paid a salary, meaning they are being paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality of work performed.

    2. Be paid at least a specified week salary level.

    3. Primarily perform executive, administrative, or professional duties, as provided in the department’s regulations.

    The regulations also include an alternative test for certain highly compensated employees. These workers must be paid a salary, earn above a higher total annual compensation level, and satisfy a minimal duties test to qualify for the highly compensate employee exemption. This alternative pathway provides a different set of criteria for classifying highly paid workers as exempt from overtime requirements.

    Key Dates To Note

    The final rule will raise the standard salary level and the highly compensated employee total annual compensation threshold on two key dates. The first increase will take effect on the rules effective date July 1, 2024. A second set of changes for these thresholds will then become applicable on January 1, 2025.

    The final rule includes a mechanism for regularly updating these earnings levels every three years. This will ensure that the exemption criteria keep pace with the current salary data over time.

    Navigating Compliance With Labor Laws

    Staying on top of ever-changing employment laws and regulations can be a challenge for small to mid-sized businesses. That’s why GMS’ team of HR experts are here to help! We closely monitor regulatory updates and provide guidance to ensure our clients remain compliant. By partnering with GMS, small business owners can focus on growth and success while we handle the complexities of workforce management. Contact our experts today!

  • In light of recent legislative changes, it’s crucial for employers to update their workplace posters to comply with the new rights provided by the Pregnant Workers Fairness Act (PWFA) and the Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP Act). To assist with this, the U.S. Department of Labor (DOL) has released two updated posters that outline the additional information related to these laws. These posters serve as a comprehensive resource, explaining employees’ rights under the Family and Medical Leave Act (FMLA) and the Fair Labor Standards Act (FLSA).

    Furthermore, the U.S. Equal Employment Opportunity Commission (EEOC) has also made revisions to its “Know Your Rights: Workplace Discrimination Is Illegal” poster. This updated version includes important details about the PWFA and must be displayed starting June 27th, 2023.

    What You Should Know As A Small Business Owner

    As a small business owner, it’s crucial to stay informed about these changes. In 2010, the federal Affordable Care Act introduced the requirement for pumping breaks, initially applicable only to nonexempt workers under the FLSA. However, the revised FLSA poster now emphasizes that these rights extend to exempt employees as well, meaning salaried workers who are not entitled to overtime. It also clarifies that while FMLA leave is unpaid, an employee may be required to utilize employer-provided paid leave simultaneously.

    Displaying the updated posters from the DOL and EEOC satisfies the notice requirement for employers. It’s essential for covered employers to prominently display these posters in all of their establishments, ensuring employees can easily read and access the information they provide.

    To access the new posters, click here.

    It’s important to note that the PWFA will go into effect on June 27th, 2023, and applies to all employers with a minimum of 15 employees. The PUMP Act, on the other hand, came into effect in December 2022, with changes to remedies taking effect on April 28th, 2023. Some exemptions are granted to small businesses under the PUMP Act.

    Utilize A PEO To Keep You Updated

    To stay updated and ensure compliance with these evolving regulations, consider utilizing a professional employer organization (PEO). PEOs like Group Management Services (GMS) provide valuable assistance in keeping your business informed and in compliance with the latest legal requirements, allowing you to focus on running your operations smoothly.

    Sam Hutchinson, GMS’ HR Account Manager, expressed, “It’s vital that employers stay updated and remain compliant with the constant changes in employment law. The PWFA and PUMP Act are liberating changes that will truly make women feel heard while trying to overcome the challenges that motherhood potentially brings.”

    Stay informed, display the revised posters, and leverage the resources available to you to navigate the changing landscape of workplace regulations. Partner with us today!

  • In the dynamic business landscape, the importance of fair labor practices cannot be overstated. Ensuring fair treatment and equitable compensation for a company’s employees is every business owner’s responsibility, regardless of company size or industry.

    One crucial piece of legislation that ensures fairness and equality in the workplace is the Fair Labor Standards Act (FLSA). This law has been instrumental in protecting employees and employers, promoting economic stability, and cultivating a more equitable society. Continue reading to explore the significance of the FLSA for small business owners and why complying is critical.

    Understanding The FLSA

    The FLSA is intended to protect workers against unfair pay practices. The U.S. Department of Labor (DOL) enforces the FLSA and sets basic standards enforced by the Department’s Wage and Hour Division. These basic standards include the following:

    • Minimum wage
    • Overtime pay
    • Recordkeeping
    • Youth employment standards

    While the FLSA was passed in 1938, it has seen numerous changes and is one of the most critical laws for employers to understand. Adhering to the FLSA ensures employers treat their employees fairly and ethically, promoting a harmonious work environment. 

    Ensuring fair wages

    One of the foundations of the FLSA is the establishment of a federal minimum wage. By providing a baseline for compensation, the Act guarantees that employees receive a fair wage for their work, regardless of the size or nature of the business. This provision helps workers maintain a decent standard of living and contributes to a more satisfied and motivated workforce, ultimately benefiting business owners through increased productivity and reduced turnover.

    Tori Moldovan, PHR, GMS’ Client Services Manager, added, “Pay transparency has become a hot topic in the recruiting world. Over the last three years, several states and cities have passed laws requiring pay information to be provided, such as salary ranges, or even prohibiting employers from inquiring about an applicant’s salary history. Employers need to keep apprised of laws requiring pay transparency, but also ensure their wages are competitive and non-discriminatory.”

    Overtime pay

    The FLSA also sets overtime pay guidelines, ensuring that employees who work beyond the standard 40-hour workweek are adequately compensated for their additional time and effort. This provision protects employees from exploitation and encourages small business owners to carefully manage their workforce, fostering a healthy work-life balance and preventing burnout. By valuing the well-being of their employees, organizations can build a loyal and dedicated team committed to their company’s success.

    Prohibiting child labor

    The FLSA addresses child labor concerns by setting age limits and work-hour restrictions for young workers; the legislation sets the minimum age for employment at 14 years old and limits the number of hours worked by minors under the age of 16. For small business owners, complying with these regulations is not just a legal requirement but also a moral obligation. By refraining from employing underage workers and providing opportunities for education and skill development instead, small businesses contribute to the overall welfare of society and promote the growth of a competent and educated workforce.

    Encouraging recordkeeping and compliance

    Maintaining accurate records of employee hours, wages, and other employment-related information is essential under the FLSA. Although recordkeeping may seem tedious, it is a valuable tool for small business owners. By diligently documenting employee data, businesses can ensure compliance with the law, defend themselves against potential disputes or claims, and gain valuable insights into labor costs and productivity.

    What Do You Do To Ensure You Remain Compliant With The FLSA?

    The last thing any business owner wants is the DOL knocking on their door, bringing potential legal issues, penalties, and reputational damage. By diligently following FLSA requirements, you can proactively protect your business, foster a fair work environment, and establish a solid foundation for long-term success. However, we understand how challenging it can be to take on these responsibilities by yourself.

    Have you considered partnering with a professional employer organization (PEO) like GMS? Our HR experts are here to help safeguard your organization. We take a proactive approach to address any non-compliance issues. Here are just a few ways our HR experts help your business:

    • Properly classify exempt vs. non-exempt employees
    • Ensure overtime is being recorded and properly paid
    • Travel time pay requirements are compliant 
    • Tipped employee/tip credit compliance 
    • Minor labor law compliance 
    • Independent contractor (1099) evaluation
    • Implement state-specific pay laws 

    Protect your business from unwanted disruptions and let GMS be your trusted partner. Contact us today.

  • We’ve discussed it before, but we’re here to dive deeper into the Providing Urgent Maternal Protections for Nursing Mothers (PUMP) Act. It’s a law that aims to protect nursing mothers in the workplace. Since it was signed into law on December 19th, 2022, the U.S. Department of Labor (DOL) has answered common questions employers may have. Let’s break it down.

    Background

    The PUMP Act builds on the Fair Labor Standards Act (FLSA), amended in 2019 by the Patient Protection and Affordable Care Act. The FLSA initially mandated reasonable break times and space for nursing employees to pump breast milk. The PUMP Act extends these protections to exempt workers who were not previously covered. This means that approximately 9 million additional employees now have lactation rights in the workplace. To help clarify the law, federal guidance has provided examples of what constitutes reasonable break times, prohibited retaliation against employees, and compensation guidelines.

    Under the FLSA, employers cannot retaliate against workers for exercising their lactation rights or filing a complaint about a legal violation. Companies with fewer than 50 employees can be exempt from the PUMP Act’s provisions if they demonstrate compliance would impose an undue hardship.

    Break Time Requirements

    Under the FLSA, employers must provide nursing employees with a reasonable amount of break time for pumping for up to one year after the child’s birth. The frequency, duration, and timing of these breaks will vary depending on the employee and the child’s needs. Employers cannot require nursing workers to make up for the time spent on these breaks. If an employee is not relieved from work duties during the entire break, the time spent pumping is considered hours worked and must be paid for that time. Exempt employees, on the other hand, receive their full weekly salary regardless of their pumping breaks.

    Space Requirements

    The FLSA also stipulates that nursing employees should have access to a suitable space for pumping that meets specific criteria. This space should be:

    • Shielded from view
    • Free from intrusion from coworkers and the public
    • Available each time it’s needed by the employee
    • Not be a bathroom 

    A bathroom is not an acceptable location for pumping breaks. Employers can create a temporary or converted space or make a designated area available if it meets the requirements mentioned above.

    Compensation

    The PUMP Act does not specifically require employers to compensate employees for pump breaks unless required by federal, state, or local laws. However, under the FLSA, all hours worked must be compensated, including time spent pumping if the employee is not completely relieved from duty during the break. Short breaks (usually 20 minutes or less) provided by the employer must be counted as hours worked. If an employer offers paid break time and a nursing employee chooses to use that time for pumping, they should be compensated like other employees taking breaks.

    Exemptions

    Some employers may not be exempt from specific requirements of the PUMP Act. Small employers with fewer than 50 employees can claim an exemption if compliance imposes an undue hardship. They must demonstrate that providing the necessary pumping time would cause significant difficulty or expense. There are also specific exemptions for certain employees in air carriers, rail carriers, and motorcoach services. The employer is responsible for proving that compliance with the pump time requirements would be an undue hardship in their specific circumstances.

    Remote Workers

    Remote workers are even entitled to the same lactation breaks as on-site employees. This means they have the right to a private, shielded space while pumping. Employers must ensure that remote workers are not observed during their pump breaks by any employer-provided or required video systems, such as computer cameras, security cameras, or web-conferencing platforms.

    Streamline Compliance With The Support Of A PEO

    Implementing the necessary changes to comply with the PUMP Act can seem overwhelming, especially for small businesses with limited resources. Have you considered partnering with a professional employer organization (PEO) like GMS? We provide comprehensive HR solutions, including compliance with labor laws and regulations. By partnering with GMS, small businesses can receive expert guidance and support in implementing the required policies and procedures for lactation breaks, ensuring they meet all legal obligations while prioritizing the well-being of their nursing employees.

    With a PEO by your side, you can now navigate the complexities of the PUMP Act with ease, saving time, reducing administrative burdens, and fostering a supportive environment for nursing mothers. Empower your business and embrace the PUMP Act with the assistance of a trusted PEO like GMS. Contact us today to learn more.

  • As quarter one of 2023 is coming to an end, it’s never too soon to start thinking about your temporary workers coming on board in the summertime. You must familiarize yourself with child labor laws that could affect whom you hire. Over concerns that minors are being forced to work hazardous jobs, the Biden Administration is setting up a task force to vet U.S. sponsors of migrant children more thoroughly and increase efforts to investigate and prosecute child exploitation cases in workplaces across the country.

    Various investigations revealed that children are crossing the border without their parents and are being forced into punishing jobs that ignore child labor laws. The Department of Labor (DOL) stated that they will target factories and suppliers that illegally employ children and larger companies with child labor in their supply chains. These migrant children typically use false identification and find jobs through staffing agencies that don’t verify their Social Security numbers. The DOL recorded a 70% increase in children illegally employed by companies within the last five years. In 2022, they found that 3,800 children had been employed by more than 800 companies in violation of child labor laws.

    Understanding Child Labor Laws In The U.S. 

    The Fair Labor Standard Act (FLSA) established minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and Federal, State, and local governments. Under the FLSA, children of any age are generally permitted to work for businesses entirely owned by their parents, except those under the age of 16 may not be employed in mining or manufacturing. In addition, no one under 18 may be employed in any occupation the Secretary of Labor has declared hazardous. The following are occupations that are banned for all minors under the age of 18:

    • Manufacturing or storing explosives
    • Driving a motor vehicle or working as an outside helper on motor vehicles
    • Coal mining
    • Occupations in forest fire fighting, forest fire prevention, timber tract, forestry service, and occupations in logging and sawmilling operations
    • Power-driven woodworking machines
    • Exposure to radioactive substances and ionizing radiation
    • Power-driven hoisting apparatus
    • Power-driven metal-forming, punching, and shearing machines
    • Power-driven meat-processing machines, slaughtering, and meat-packing plants
    • Power-driven bakery machines
    • Balers, compactors, and power-driven paper-products machines
    • Manufacturing of brick, tile, and related products
    • Power-driven circular saws, band saws, guillotine shears, chain saws, reciprocating saws, woodchippers, and abrasive cutting discs
    • Wrecking, demolition, and ship-breaking operations
    • Roofing operations and work performed on or about a roof
    • Trenching and excavation operations

    In addition, children ages 14 and 15 may be employed outside of school hours in various non-manufacturing and non-hazardous jobs for limited periods of time and under specified conditions. Children under 14 cannot be employed in non-agricultural occupations covered by the FLSA. The following are the hours and times of the day that 14 and 15-year-olds may work:

    • Outside of school hours
    • No more than three hours on a school day, including Fridays
    • No more than eight hours on a non-school day
    • No more than 18 hours during a week when school is in session
    • No more than 40 hours during a week when school is not in session
    • Between 7:00 a.m. and 7:00 p.m. – except between June 1st and Labor day, when the evening hour is extended to 9:00 p.m.

    Additional information can be found here. 

    Your Responsibilities As A Business Owner

    As a business owner, you must comply with these labor laws, even if the child is yours. As we begin approaching a busy summer season when many businesses start hiring minors, it’s essential that you familiarize yourself with the federal and state laws relating to the employment of minors. Fortunately, when you partner with GMS, we ensure you remain compliant and hire minors correctly. We confirm they’re working the correct hours and times. In addition, we assist you with posting your state and federal labor posters throughout your business, so your employees understand their rights. Ultimately, we help your business runs simpler, safer, and stronger. Contact us today to learn how we can help you.

  • 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.

  • 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.

  • Virtually every company in America is bound by the Federal Labor Standards Act of 1938 (FLSA).

    This law “regulates the status of employees (versus independent contractors) and provides for a minimum wage and overtime unless the employee meets an exempt classification.” However, the scope of this law is not simply limited to employees’ wages.

    Protecting Whistle Blowers

    Did you know that an added feature of the FLSA is the protection of employees who may be labeled “whistle blowers”?

    Under the FLSA, an employee cannot be retaliated against for filling an official complaint against their employer with a government agency. According to an article on JD Supra’s legal website, a recent 4th Circuit Court of Appeals ruling has expanded this law to include “intra-company” complaints. They have also stipulated that this complaint can be in written ororal form.

    Forming a Written Policy

    As with any kind of employee-related issue, the best protection for an employer is the proper documentation of any employee events. By documentation, I don’t just mean that a supervisor should write it down and file it. All the documentation in the world doesn’t mean a thing unless the employees know what the rules of the game are.

    That’s why every company should have a written policy on how to handle employee complaints—and every employee should know exactly what that policy is. The tricky part is knowing just how much is too little and when you may have gone too far in setting up your company rules.

    Avoiding FLSA Issues

    Companies with the strongest Human Resource infrastructures in place are the ones who are least susceptible to FLSA penalties or potential employee lawsuits. To help protect themselves from ever-evolving government regulations, companies are looking for assistance in employer liability management.

    For many companies, a Professional Employer Organization like GMS can help.

  • Probably. Maybe. Maybe not. Who knows? Do you know?

    As a Sales Rep for a Professional Employer Organization (PEO), I talk with small to medium-sized business owners on a day-to-day basis. I never cease to be amazed at how well they know their company, their employees, their business, their industry, and their competition. When you spend 80 hours a week working on your business, you become an expert.

    Yet, these same business owners will often tell me, “I don’t know what I don’t know. And even if I knew what I didn’t know, I don’t always know how to find out what I need to fix, remedy, or comply with the situation.” Of course, they don’t. They’re devoting all their time to making a better product and/or a better company.

    If you’re new to the game or haven’t spent a lot of time thinking about this, you might be wondering what regulations I’m speaking of in the title of this post. After all, those are geared towards large companies, not small, independent businesses, right?

    Compliance chalkboard for small businesses. 

    Federal Regulations for Business of All Sizes

    Some things are required no matter the size of your company. For example, you must make sure you have I-9 forms on all your employees and that they’re filed correctly.  There are hefty fines tied to misfiled or missing forms. You also need to have the required employment posters hanging in prominent places for your employees so they can see what their workplace rights are.

    Other laws are based on how many employees you have. For example, if you have between one and 10 W-2 employees, these laws apply to you:

    • Fair Labor Standards Act (FLSA)
    • Employee Polygraph Protection
    • Equal Pay Act
    • Consumer Credits Protection Act
    • National Labor Relations Act

    Once you have between 11 and 14 employees, you have to become compliant with OSHA and all federal health and safety standards. That includes all the reporting that comes with it.

    From 15 to 19 employees, you need to start paying attention to the following regulations:

    • Title VII, Civil Rights Act
    • Title I, Americans with Disabilities Act
    • Pregnancy Discrimination Act

    At 20 employees, you have to worry about COBRA (if you’re offering benefits) and Pregnancy Discrimination Act. And it goes on and on and on… you get the idea.

    How to Stay in Compliance with Federal Regulations

    How does a business owner know what they need to be compliant with while working full-time on their business? There are several ways I can think of:

    • During all your downtime, read up on federal regulations and keep tabs on all the changes as they happen
    • Pay an attorney to keep you abreast of these things
    • Hire someone on staff whose sole responsibility is keeping track of these things

    These are all good options, but many small business owners find the best option is to partner with a Professional Employer Organization, like GMS, that will not only keep you compliant but will also take on all the regulatory liability of your employees. 

    Recent studies show that small businesses that use PEOs grow 7 to 9 percent faster, have 10 to 14 percent lower employee turnover, and are 50 percent less likely to go out of business. Contact GMS today to learn how we can help take over these administrative burdens, allowing you to focus on your core business.

  • As a small business owner, it’s important to try to prepare for anything—even Mother Nature. In Florida, that means doing what you can to make sure your business and your employees are as ready as possible for hurricanes, named storms, and other events that can cause serious problems.

    Hurricane season is a stressful time that requires plenty of preparation and employee management to help weather any issues. Here are some tips that you can use to help you and your employees navigate any potential problems before, during, and after a storm.

    A hurricane approaching Florida, causing small business owners to prepare for the storm.

    Train Your Employees Ahead of Time

    Good employees play a major role in the success of your business, but sometimes they don’t always look out for themselves. The best time to prepare for a natural disaster is long before one arrives, so it’s smart to include hurricane education as part of a regular training program, especially if you have a lot of transient workers who never experienced a storm before.

    People move to Florida all the time. According to the U.S. Census Bureau, nearly 330,000 moved to the Sunshine State from 2016 to 2017, which is an average of nearly 900 people per day. That means a lot of workers in the state have never been through a bad storm before. A hurricane education session can help them know what they should always have available, including:

    • Battery operated TV and fans
    • Generator
    • Second refrigerator just to store water (will keep somewhat cool even after power is out)
    • Nonperishable canned goods

    While basic hurricane preparation education and supplies are good, you can go the next step and see if an expert would be willing to help. Local meteorologists are a great resource for hurricane training, whether they give you some helpful advice or are willing to visit your business to talk to your employees. It never hurts to ask.

    The frequency of the training depends on the makeup of your business. If you have a small workforce and little turnover, training can be more infrequent. If you’re in a high turnover business or have a larger staff, yearly training sessions can be a good idea. It’s also important to stress to your employees that they may want to consider leaving the area depending on the storm. Sometimes the best plan of action is to be nowhere near the hurricane when it hits.

    Close the Office When Necessary

    In general, the decision to close the office due to an incoming storm is up to you. OSHA does stipulate in its general duty clause, that all places of employment are “free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees.” Essentially, if the storm makes your workplace a dangerous location, it’s time to shut down and evacuate.

    Another reason to play it safe and close your business if the weather is questionable is to avoid any potential liability issues. While the commute to and from your office is outside of your workplace, there is a grey area in terms of whether you’re on the hook if the impending or active storm causes an employee to get hurt or have an accident. A court may rule in your favor, but you may not want to take that risk when you can simply play it safe and close your office.

    Handle Wages with Care

    If you decide to close your business, your employees may still expect to be paid. According to the Society for Human Resource Management (SHRM), what they’re owed and if you need to pay them at all can depend on the type of employee:

    • Nonexempt employees are only owed for the hours they’ve worked according to the Fair Labor Standards Act (FLSA). This means that you do not owe them any money when you close your business.
    • Exempt employees are owed their full salary if the weather forces the office to close for less than a full workweek. However, you may require these employees to take paid time off (PTO) during these days.

    While the FLSA outlines your minimum requirements, that doesn’t mean that you should follow these guidelines. Forcing an employee to take PTO sends a message that you see the hurricane as their vacation, which will rub even the most loyal workers the wrong way. In addition, being left without a paycheck for something out of their control can create some discontent, even if the business isn’t able to generate any money during the closure either.

    One solution to this is to go above and beyond if possible. If you know what an employee typically makes during a week, find a compromise, whether it’s paying them in full or even offering a portion of their normal earnings. This can show them that you’re still trying to help during a difficult period. If you can’t make that kind of financial commitment or you need to make serious repairs to the business after the storm, explain the situation so that your employees understand instead of feeling blindsided by a lack of pay.

    Be Open and Accommodating About Leaves of Absence

    Even if you decide to keep your business open, there may be employees who want to stay home with their families. In this case, the Department of Labor allows you to consider such leave as an absence for personal reasons. As with wages, however, this can send a bad message to a good employee. Instead, it can be best to be flexible for employees who want to be at home to prepare for a storm, especially if they plan to head out of state.

    You can also offer some alternatives. For example, you can allow employees to work from home if possible. This will allow them to cut down on travel during a storm without sacrificing valuable work hours, at least until the power goes out.

    Employees may also be absent from work after a storm to attend to post-disaster needs, such as meeting with insurance adjusters. SHRM also notes that “employees affected by a natural disaster are entitled to leave under the FMLA [Family and Medical Leave Act] for a serious health condition caused by the disaster,” such as the need to care for a family member.

    If you want a more set structure in terms of how many days employees are allowed off for storms, you can include writing in your handbook or leave policies that sets out a specific process. The problem with this is that no hurricane is the same. One storm could last two days, while another could last 10. A set policy may pigeonhole you into an exact number of days if you’re not careful.

    Protect Important Documents

    Both you and your employees have important documents that must always stay safe. Unfortunately, hurricanes don’t cooperate. In Florida, it’s good to invest in document storage that can protect both business and personal documents from the elements, like a fireproof and waterproof safe.

    While a great start, a safe can’t protect your documents from a worst-case scenario. If a storm is projected to be bad enough to make you leave the area, make sure to take your documents with you so that the storm doesn’t take them away for good. Digitizing documents in a securely-stored online portal can also make sure that these files are safe from storms and accessible anyplace with an internet connection.

    Always Communicate

    Good communication is a key part of hurricane preparation. It’s important to keep in contact with your employees long before a storm hits, during the storm, and after it’s gone.

    While some employees will know the risks and protect themselves, others may not understand the danger of these storms or will be afraid to stay home out of fear of losing their job. Monitor the situation and make employees feel comfortable with their decision to stay or go if the coming storm looks dangerous. There are times where storms pass over and you don’t need to close, but it’s always good to err on the side of caution instead of being wrong about the weather.

    If you have any other questions about protecting your business before, during, and after a storm, it’s best to communicate with a trusted HR partner. GMS is a Professional Employer Organization that serves companies of all sizes across the nation. The experts in our Fort Myers, Florida branch can work with you to help you protect your business and manage key HR functions that complicate your day and bog down your schedule.

    Contact GMS today to talk to one of our experts in our Florida office about how we can help your business prepare for the future.