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  • As a result of the expected publication of a proposed overtime rule, the U.S. Department of Labor will recommend higher salary thresholds for white-collar exemptions as soon as next month. “Employers should expect a proposed salary amount that at least, approximates the amount proposed in 2016,” stated Alfred Robinson Jr., – an attorney with Ogletree Deakins in Greenville, South Carolina. The proposed salary level for the Fair Labor Standards Act’s executive, administrative, and professional exemptions could be a minimum of $913 per week or $47,476 per year. By comparison, the Trump administration in 2019 implemented a salary level of $686, which represents a considerable increase.

    Jason Barsanti explained that the 2016 regulations were ruled to “put too much emphasis on the salary requirement, thereby effectively making the duties test[s] irrelevant.” The duties test determines which employees are exempt from overtime pay, and it depends on a variety of factors:

    • Executive exemption – Managing the enterprise, a department or a subdivision of the enterprise must be the employee’s primary duty.
    • Administrative exemption – The primary duty of the employee must be office or non-manual work that is directly related to the management of general business operations of the employer or the employer’s clients.
    • Professional exemption – Employee’s primary responsibility is to perform work that required advances knowledge in a field of science or learning that is acquired through specialized, intellectual training and study.

    A primary duty can occupy less than 50 percent of an employee’s time under these tests. Additionally, it is possible to count time spent performing both exempt and nonexempt duties concurrently.

    With the help of a PEO company like GMS, you no longer have to worry about following the latest legislative changes. Rules and regulations are constantly changing. Do what you do best. Outsource the rest.

  • The U.S. Department of Labor recently announced that their Wage and Hour Division (WHD) plans to add over 100 investigators to their team throughout 2022. As a result of the pandemic and great resignation, the division has reached the lowest staffing levels in decades. Acting Wage and Hour Administrator Jessica Looman stated, “While appropriations will determine our course of action, we are optimistic we will be able to bring new talented professionals on board to expand our diverse team.”

    According to the U.S. Department of Labor, some of the responsibilities that investigators include:

    • Conducting investigations to determine if employers are paying workers and affording them their rights as the law requires.
    • Helping ensure that law-abiding employers are not undercut by employers who violate the law.
    • Promoting compliance through outreach and public education initiatives.
    • Supporting efforts to combat worker retaliation and worker misclassification as independent contractors.

    What Is the Wage and Hour Division?

    The Wage and Hour Division’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. The Division is one of the country’s most crucial labor law enforcement agencies, enforcing comprehensive labor laws for over 148 million employees.

    The WHD enforces Federal minimum wage, overtime page, recordkeeping, and child labor requirements of the Fair Labor Standards Act. Additionally, the Division enforces a variety of legislative acts, including the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Act, wage garnishment provisions of the Consumer Credit Protection Act, and a variety of employee standards and worker protections.

    What Does This Mean for Business Owners?

    When partnering with a PEO like GMS, you can rely on support from our HR experts. Our team can help safeguard your company by performing our own FLSA audits to ensure you remain compliant. During the audit, we’ll cover an extensive checklist, covering items such as proper employee classification and proper payroll coding. Upon completing the audit, we’ll dive into any possible areas of concern and provide our recommendations to rectify said issues.

    Reach out to GMS today to ensure that your business will be properly prepared and protected if it is audited.

  • Effective January 1, 2022, the No Surprises Act went into effect with regard to emergency care and balance billing by non-network providers. An undoubtedly complex piece of legislation, GMS’ Vice President of Benefits Beth Kohmann experts share some of the key takeaways below.

    With this new ruling, if a group health plan covers any type of emergency care, then emergency care treatment rendered through the stabilization of the patient must be covered by the group health plan – even if services are rendered by a non-network provider. The group health plan must cover these services at the in-network level of benefits. The group health plan will consider these charges at a qualified payment amount level and negotiate (if the qualifying payment amount is appealed) with the non-network provider until an acceptable payment amount is reached. The patient cannot be balanced billed for the difference between the billed charge and the agreed-upon payment amount.

    This applies to such providers as facilities, emergency room physicians, anesthesiologists, and air ambulances. Ground ambulance providers are not subject to the above ruling and would be permitted to balance bill a patient for the difference between the total charge and the qualifying payment amount.

    The same applies to non-emergency care where the patient would have no choice of provider. For example, if a patient is having surgery at a network facility with a network surgeon and the anesthesiologist or outside laboratory are non-network providers, the group health plan must pay these providers at the in-network level of benefits and at a qualified payment amount (or a negotiated rate if the qualified payment amount is appealed). As above, the patient cannot be balance-billed for the difference between the billed charges and the agreed-upon payment amount.

    If the patient chooses treatment from a provider that is not in-network for services, for example, a surgical center or surgeon, that provider must inform the patient of the estimated fee, prior to rendering treatment, for their services and explain that they could be balance billed for any non-allowed amounts. This must be in writing and the patient will need to sign a document stating they acknowledge and understand that they could be balance billed.

    This ruling will apply to any claims incurred after January 1, 2022. To stay in the know with the latest legislation and compliance, be sure to subscribe to our email list.

  • Employee onboarding is the process of integrating a new employee with a company, its culture, and all of the information needed for a role. Although the process itself sounds simple, it is actually one of the most critical factors in producing efficient and engaged workers.

    While it’s no surprise that the onboarding process can vary greatly from company to company, all successful onboarding programs place an emphasis on these things:

    • Structure – Providing a consistent process across the board, regardless of different job titles or locations
    • Operations – Ensuring your new hires have access to all materials and training necessary to do their jobs successfully.
    • Strategy – Changing the thought process behind your onboarding from “checking the box” to “recipe for success.”

    As 2022 will likely see a continuation in the workforce shortage, placing an ongoing emphasis on your employee onboarding experience can help you conquer any retention woes.

    Did you know…

    When you partner with GMS, you gain access to our electronic onboarding system, which includes English and Spanish languages, customized welcome videos, and more! If you’re ready to put an emphasis on efficient onboarding, contact us today.

  • Occupational Safety And Health Administration’s COVID-19 Vaccine Mandate:
    In a 6-3 vote on Thursday, the Supreme Court ruled that it will not allow the Occupational Safety and Health Administration’s COVID-19 vaccine-or-test Emergency Temporary Standard (ETS). As you may recall, this ETS would’ve required employees at companies with 100 or more workers to either be fully vaccinated or test weekly for COVID. According to the majority vote, OSHA is empowered to set “workplace safety standards, not broad public health measures.”

    What Does This Mean For Employers?

    Although not certain, this most likely marks the end of the road for the OSHA ETS. Vice President of Client Services Stacey Larotonda notes employers do not need to enforce any vaccine or testing mandate the ETS would have required. Employers should continue to maintain robust and up-to-date COVID-19 safety protocols.

    Centers for Medicaid and Medicare Services (CMS) Vaccine Mandate Update:
    Unlike the ETS, the Supreme Court brought life back into the CMS Vaccine Mandate with a 5-4 vote, that determined that the Department of Health and Human Services, which operates the Medicare and Medicaid programs, did have the authority to issue its vaccine mandate. The vaccine mandate can be enforced for federally funded health care facilities.

    What Does This Mean For Employers?

    The CMS previously mandated a January 27, 2022 deadline for Phase 1 implementation, and a February 28, 2022 deadline for Phase 2 implementation. What is still unclear by the new ruling, is if the CMS will mandate the same deadlines or provide an extension. Until the CMS releases more information on the deadline, all healthcare providers subject to the CMS mandate should begin implementing their policies and procedures to comply with mandate requirements.

    While we continue to navigate these unprecedented times, you can remain in the know with the latest legislative updates by signing up for our email announcements.

  • U.S. Immigration and Customs Enforcement (ICE) recently announced an extension of the flexibility in rules related to Form I-9 compliance that was initially granted last year. With the ongoing pandemic, the Department of Homeland Security (DHS) has extended this policy until April 30th, 2022.

    Under said policy, employers may inspect the I-9 documents of certain remote employees by way of camera or fax. This extension will lend a hand in ensuring the guidance for employees hired on or after April 1, 2021, that work exclusively in remote settings due to COVID-19-related precautions, will remain in place until they undertake non-remote employment on a regular, consistent, or predictable basis, or until the extension is terminated. Upon commencing non-remote employment, the employer must verify the employee’s documents in person, within three business days.

    While some questions were raised in determining what to do if a remote employee leaves the job before the employer has a chance to inspect their I-9 documents in person, ICE provided the following information: “Employers may be unable to timely inspect and verify, in-person, the Form I-9 supporting documents of employee(s) hired since March 20, 2020, . . .in case-by-case situations (such as cases in which affected employees are no longer employed by the employer). In such cases, employers may memorialize the reason(s) for this inability in a memorandum retained with each affected employee’s Form I-9. Any such reason(s) will be evaluated, on a case-by-case basis, by DHS ICE in the event of a Form I-9 audit.” Still, little clarity is provided when a “case by case” policy is referenced. That said, GMS’ Vice President of Client Services Stacey Larotonda recommends employers do what they can in obtaining Form I-9 documentation physically to avoid any complications down the road.

    ICE is anticipated to significantly expand its I-9 inspection efforts when the pandemic nears its end – at which point, the federal government will be looking for errors made under the relaxed rules, as well as other commonly made mistakes – such as not entering the initial date of employment or incorrectly submitting a section. Knowing that the minimum fine per individual for paperwork or technical violations in 2020 was $234, and could run upwards of thousands of dollars, it’s recommended that an employer first self-audits, then partners with a PEO like GMS to assist in the efforts.

    Our HR experts will continue to monitor for updates in this matter. To learn more about GMS and how our services could be your best defense against I-9 errors, contact us today.

  • As employees continue to have the upper hand in the workforce, now more than ever it is important to keep a pulse on their job performance and trajectory to ensure they remain engaged in their roles. Simply having annual reviews and/or occasional one-on-one meetings will no longer meet the needs of your employee pool. By implementing a performance management system, you can ensure consistent, organized feedback – which will, in turn, help your organization and teams meet their goals and objectives.

    The question then becomes how do you measure performance? Implementing key performance indicators (KPIs) can help you quantify individual and organizational goals, thus evaluating performance accordingly. When used correctly, KPIs will support your business strategy and allow you to monitor progress. Below are three KPIs to consider for your performance management strategy.

    Employee Turnover Rate (ETR)

    The first step is to understand that employees’ happiness starts with the management team. If someone is unhappy in a job they need to be able to feel as though they can express this. To alleviate this problem, creating a great management team is key. If you want to figure out how employees feel in the job, Impraise suggests sending out regular surveys to have them share their feelings anonymously. As many know, high turnover is most companies’ nightmare, and training new employees can be extremely expensive. A study, the Center for American Progress reported the average cost of replacing an employee to be 21% of their annual salary. That said, making ETR something you continually review can save you both time and money in the long run.

    Engagement Is Key

    Keeping your employees engaged is an aspect that many struggle to balance – however, this is a clear link between engagement and bottom-line objectives. Disengagement can cost $3,400 for every $10,000 of salary. This can be controlled by managers giving feedback at least once a week. 43% of highly engaged employees reported this being the case. Nowadays, people take flexibility and understanding as a huge plus in their jobs. This ties directly into employee productivity because of they are engaged in their work then they will be a lot more productive.

    Productivity Suggestions

    Are you interested in boosting productivity on your team? You can do so by helping them understand how their efforts lend a hand in the overall goals of the company. When employees are motivated and inspired, their productivity greatly increases. Here are a few ways that Indeed suggests keeping your team working hard.

    1. Establishing values is important because this will constitute a good performance.
    2. Hiring smart means not only do they need to have the skills, but they also need to be a good culture fit because if the values don’t align with the ones you have within the organization, then they will not be productive.
    3. Offering constructive feedback is critical for your team to understand how they are succeeding. Everyone wants to see that their work is noticed and if they are not doing a good job, it is easier to fix it early on than wait for there to be an issue.
    4. Two-way communication means that your team understands that their feedback is also important in the job and that it is not just about you being happy with their work, they need to be happy with the work they are doing also.
    5. Always celebrate the success of your team, because this will boost their morale and also benefit you by letting them know that their work is where you want it to be and to continue this.

    If you’ve been contemplating implementing a performance management system for your business, contact us today. With recent holiday time off, year-end bonuses, and new year resolutions, employees are motivated to start the year on a good note. Leverage their excitement to help reach your company’s goals!

  • If you’ve noticed that your family health insurance prices are on the rise, you’re not alone. In fact, the cost of family premiums for employer-sponsored coverage has jumped 47% in the last decade – which outpaces wage growth at 31% and inflation by 23% over the same period. In the last year alone, premiums for family coverage reached an average of $22,221, a 4% increase.

    Roughly 155 million people rely on employer-sponsored coverage, with 59% of employers offering health benefits. It’s no secret that the larger the company, the more likely they are to offer a health plan. That said, the looming crisis of affordability continues to be an ongoing issue throughout the country. This proves especially true for small businesses with tighter budgets and fewer management resources at their disposal. On average, small businesses pay 8-18% more than large firms for the same insurance plans. Furthermore, location and industry type can make your organization’s premiums even (you guessed it) higher. Northeast and Midwest regions of the United States typically see more expensive premiums – as do those in the transportation, utility, and construction industries.

    Outside of the cost to implement a group health plan, many small business owners are often spread too thin – thus making the cost of time to actually administer the plan yet another hurdle to overcome. Managing a group health plan can be labor-intensive because of the ongoing regulatory changes, complicated communication processes, and the dreadful renewal process.

    Still, not offering health benefits is a recruiting and retention risk that you do not want to take. “Offering a healthcare plan is one of the most effective steps you can take as we continue to witness a workforce shortage,” shared GMS VP of Benefits, Beth Kohmann. “In today’s turbulent times, people throughout the country are looking for a solid, affordable healthcare plan to give them peace of mind. As an employer, providing that to your employees is one of the most vital things you can do.”

    Given the difficulty of offering an affordable, comprehensive plan, it’s easy to see why many business owners turn to a Professional Employer Organization like GMS. When you partner with GMS, you’ll take advantage of our consultative approach, giving you plan options and savings that will benefit your organization. In fact, last year GMS family premiums were 34% lower than the U.S. average.

    Contact us today to discuss a health plan tailored to your organization’s needs.

  • COVID-19 has brought many unforeseen challenges, however, one that employers can get ahead of is the Great Resignation. The term was coined in 2019 by Texas A&M’s Anthony Klotz. This prediction displayed a widespread voluntary removal of those within the workforce. As we come to the end of the year, the Great Resignation has continued to gain momentum. According to Harvard Business Review, beginning in April 2021, over four million employees quit within that month alone. This led to a record-breaking number of open positions reaching 10.7 million by July.

    Is the worst yet to come? Experts are telling employers to brace themselves as they expect even more employees to quit after year-end benefits, such as bonuses, commissions, celebrations, and PTO, all diminish.

    Heading into 2022, this is going to play a major role in the way businesses operate. To attract and retain top talent, one must understand why employees are leaving. Spoiler alert, contrary to popular belief, the once generous government benefits that may have encouraged people to opt-out of actual work are actually not to blame.

    There are two key trends that have been identified thus far. First, mid-career employees (those aged 30 to 45 years old) have the greatest increase in resignation rates. It’s possible that this is caused by “pandemic epiphanies,” meaning employees have simply reached their breaking point and are choosing to step away from the heavy workloads and stressors that come along with their current 9-5. The second trend points out that the dramatic variance of turnover rates in different industries. Specifically, both the technology and health care industries have seen much higher attrition. It’s assumed that these industries witnessed such change due to the increase in demand for both during the pandemic, ultimately leading to burnout.

    Strategies To Combat The Resignation:

    Knowing that the cost to onboard a new employee exceeds $4,000, now more than ever employers need to focus on keeping the talent that they already have. Consider these strategies to help:

    1. Put work-life balance at the top of your organization’s list
    2. Invest in your employees – give them competitive compensation, top-notch healthcare, and retirement
    3. Train leaders to recognize and address burnout
    4. Create a clear pathway for employee growth by investing in training and development
    5. Implement “stay interviews,” which consist of management interviewing employees to get a better pulse on their experience and allows the employee to share any recommendations or feedback that they may have.

    How GMS can make a difference:

    Partnering with GMS allows business owners to have valuable tools to continue to increase employee retention. The Great Resignation is by no means coming to an end as we head into 2022. Partnering with GMS can combat the challenges that await. Contact GMS today to learn how we can help you tackle The Great Resignation.

  • Workplace Culture Can Help You Attract And Retain Top Talent

    Company culture, a once cliché term, is now at the forefront of every leader’s brain – as it should be. Pair the up-and-coming millennial generation that continues to shift the nation’s workforce with the hundreds of thousands of employees who have become accustomed to working at home over the last year and a half, and there you have it… The Great Resignation.

    According to the U.S. Department of Labor, during the months of April, May, and June 2021, a total of 11.5 million workers quit their jobs. This voluntary workforce mass exodus has left businesses of all sizes and industries wondering how, if at all, they could combat such an occurrence.

    As a business owner, you likely are already aware that a solid culture could be your best defense in the fight. But, what you may not have realized is culture isn’t the casual dress code Fridays and suction-cup basketball hoops on the wall that once deemed an organization as a good place to work. Now, culture is developed on the premise of a much different set of values, including work-life balance, inspiring leadership, and professional development – just to name a few.

    Every company will develop a certain type of culture over time, but it is your job to control the values, beliefs, and attitudes you create. Keeping an eye on this can help boost productivity and decrease both turnover and negative behaviors. According to Balance Careers, your employees are more likely to enjoy their work and be more productive if you focus efforts on culture and making sure that your employees are happy while getting the job done. It’s not just about your current employees, though. If you’re looking to grow your business, consider how your culture may appear to candidates. 56% of workers ranked a strong workplace culture as more important than salary, with more than three-in-four workers saying they’d consider a company’s culture before applying for a job there.

    Five Aspects That Drive Your Culture

    There are five aspects that can impact your company culture: opportunity, success, appreciation, and well-being, and purpose. All five aspects are arguably subjective, but equally important.

    • Opportunity: Opportunity can look different for every role and every employee. Is it the opportunity to learn a new skill or the opportunity to one day have a higher title? If opportunity breeds success, why limit what opportunities are available to your employees?
    • Success: Both personal success and the company’s success should be key drivers for your culture, but at what cost? What does success look like to your leadership team and how will you communicate it along the way? How will you celebrate successes, and, on the contrary, how will you develop and coach employees when they fall short of it?
    • Appreciation: Heavily-important to millennials, your employees seek recognition. The age-old saying, “A person who feels appreciated will always do more than expected,” still holds true. Is your management team expressing appreciation and recognizing achievements? Taking it one step further, are you recognizing your employee in a way that resonates with that particular person? Finally, recognize that communication is crucial in expressing your appreciation, don’t assume your employees know that you appreciate them.
    • Well-being: One of the most talked about topics as the country begins to put an emphasis on mental health, what does your culture offer for employees’ well-being? Sure, not every organization can offer mental health days or an office puppy to boost morale. But, are your leaders trained to recognize burnout? Do your managers have a zero-tolerance policy for gossip? Are you working to create healthy relationships or are you giving never-ending to-do lists and nonstop deadlines?
    • Purpose: The infamous “why.” What’s your company’s why? What is your employee’s why? Does your job candidate have a why? (Spoiler alert: if they don’t, they likely will lose motivation) Do those align? Are the values made clear?

    Taking the necessary footsteps above to define your culture could save you from losing your top talent. Still, it can be overwhelming to even get started. As your trusted HR partner, we know what tactics to leverage in helping build a culture that is unique to your organization. Contact us today to discuss your options.