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  • The Raise the Wage Act of 2023, aiming to incrementally raise the federal minimum wage to $17 an hour by July 2029, has stirred an argumentative debate. The Congressional Budget Office (CBO) study highlights its potential to positively impact over 18 million workers but also forecasts potential job displacement for around 700,000 Americans.

    What Are The Impacts?

    Positive wage impact

    The CBO’s findings emphasize the potential for substantial wage hikes for workers currently earning at or slightly above minimum wage levels. This move could significantly improve the economic situation for many individuals, lifting around 400,000 workers out of poverty. In addition, an analysis by the Economic Policy Institute in Washington, D.C., found that raising the federal minimum wage to $17 an hour by 2028 would positively impact nearly 28 million workers across the country. The average affected worker who works year-round would receive an extra $3,100 per year. President Joe Biden and Senator Bernie Sanders both advocate for a shift from a “starvation wage” to a “living wage,” supporting a gradual increase after over a decade of stagnation at $7.25 an hour.

    Concerns about job loss

    However, the flip side of this wage increase is the projected reduction in employment opportunities, particularly affecting younger and less educated individuals. The CBO suggests that by 2029, a substantial portion of those rendered jobless by the bill might exit the labor force, raising concerns about long-term economic participation. The average estimate is about 700,000 workers would lose their jobs.

    Economic Ramifications

    The proposed wage hike could set off a chain reaction in the economy. Increased labor costs could lead to higher consumer prices, potentially decreasing overall buying power and reducing employment across various wage brackets. Employers must also pivot towards automation to mitigate increased labor expenses.

    Alternative Approaches

    Senator Bill Cassidy and Senate Republicans advocate a more gradual approach, proposing the Higher Wages for American Workers Act. They aim to reach an $11 federal minimum wage by 2028, prioritizing the protection of small businesses and preserving job opportunities. In contrast, advocates for the $17 minimum wage underscore its potential to positively impact around 28 million workers nationwide. They emphasize the need to fortify existing state-level standards and solidify wage gains, especially crucial in post COVID-19 pandemic economic recovery.

    State Variances

    While 30 states and Washington, D.C. already exceed the federal minimum wage, the impact of a $17 federal minimum could vary. Workers in these states may have already experienced wage hikes above this proposed threshold. In addition, the debate isn’t solely about the numbers; it’s about balancing economic progress and job security. Crafting legislation that uplifts workers without compromising employment opportunities requires navigating complexities.

    Tackle Labor Laws With GMS

    When all is said and done, navigating the complexities and unknowns of the minimum wage debate necessitates a careful balance between uplifting workers and safeguarding employment opportunities. As a small business owner, it’s essential to follow all laws and regulations and, in this case, those associated with minimum wage increases. However, you did not start your business to be an expert in wages and labor laws.

    Consider partnering with a professional employer organization (PEO). PEOs like GMS provide expertise in navigating evolving labor laws, providing vital insights into adapting compensation structures and HR strategies. By leveraging the resources and guidance of GMS, business owners can proactively analyze their workforce dynamics, streamline operations, and implement measures to mitigate the potential impacts of minimum wage adjustments. This partnership allows you to focus on areas that allow you to grow and not hold you back from doing what you do best. Contact our experts today to learn how we can lend a helping hand.

  • Employee theft is a significant issue, costing companies around $50 billion annually. Small businesses are especially vulnerable, with 22% reporting employee theft. It’s important to note that theft isn’t limited to physical items; it can also involve misusing company data, time, or other resources. While addressing this concern is vital, relying solely on intense monitoring and harsh penalties isn’t the best solution, as it can harm employee morale and lead to retention problems. A better approach is to take a closer look at your company culture.

    While having clear policies against theft is necessary, the real game-changer is creating an environment where integrity is the norm. The process involves creating a positive workplace culture where employees feel valued, fulfilled, and engaged. Happy and content employees are less likely to engage in unethical behavior.

    Creating a positive work environment begins with effective leadership and requires employee buy-in. This can be difficult to accomplish and needs ongoing work to maintain. However, the benefits are substantial, including saving your business time and money and improving employee retention rates. To assist you in building a more positive culture, we’ve put together tips and strategies to help you build a more positive and ethical culture.

    Workplace Ethics

    Workplace ethics encompass the principles and values, including honesty, integrity, respect, fairness, and responsibility, that guide individuals and organizations in their professional conduct. An ethical workplace not only prioritizes treating employees, customers, and stakeholders with respect and dignity; it also makes adherence to laws, regulations, industry standards, and best practices a top priority.

    Why Does It Matter?

    One of the most significant advantages of maintaining an honest workplace is the time and money you can save. Content and engaged employees are less likely to participate in any form of theft, saving you thousands of dollars annually. Moreover, they tend to be more productive and contribute positively to their teams, fostering a collaborative and efficient work environment and driving business success.

    In today’s market, where consumers and employees prioritize values, having a reputation for moral conduct helps you stand out. Employees who resonate with their company’s values are more likely to remain engaged and committed, reducing the frequency and costs associated with recruiting and training new personnel. Similarly, customers who trust a company tend to stay loyal, providing a consistent revenue stream.

    In addition, ethical work cultures avoid behaviors such as discrimination, harassment, or fraud. These corrupt actions can lead to legal battles and regulatory fines, often resulting in long-term consequences that are difficult to recover from. Establishing a workplace grounded in integrity helps ensure that your team adheres to laws and regulations, safeguarding the company from potential legal and financial pitfalls. An honest workplace goes beyond a moral obligation; it’s a strategic advantage promoting ongoing growth and success.

    Creating An Ethical Culture

    Creating a code of ethics is a foundational step in establishing an ethical work environment. This code needs to include clear expectations and guidelines for proper conduct. It’s crucial that it effectively communicates your organization’s core values and principles, acting as a dependable guide for employees when deciding on the right actions to take.

    Once your code of ethics is in place, it’s essential to communicate and reinforce it with your team consistently. When employees are well-informed about the organization’s values and understand that everyone in the company follows the same standards, they are more likely to act honorably. The staff’s collective understanding and commitment play a vital role in maintaining a positive, compliant, and theft-free workplace.

    Beyond a code, you can help foster a more ethical workplace through the following:

    Transparency

    Be straightforward with your team. Open communication and a commitment to transparency are vital in cultivating employee trust. This trust can lead to improved collaboration and heightened employee engagement. Additionally, a transparent environment helps prevent conflicts and misunderstandings, often resulting from poor communication.

    Accountability

    Hold everyone on your team, including leadership, accountable for their actions. Ensure your team feels comfortable acknowledging mistakes and offer them opportunities to make corrections when possible. Discuss strategies to avoid similar errors in the future rather than dwelling on the negatives. For more significant mistakes, have straightforward policies that outline potential consequences based on the severity of the misstep. This approach guarantees fair treatment for all team members and equal opportunities for addressing errors.

    Long-term focus

    Prioritize your business’ long-term success over short-term gains. This approach often involves making beneficial decisions in the long run, even if they are not the most profitable in the short term. Focusing on sustainable practices builds trust among stakeholders who see the company as committed to enduring values.

    Quality assurance

    Commit to delivering superior products and services that exceed basic compliance standards. This promise not only enhances your company’s reputation but also fosters trust and loyalty among customers. In addition, employees who take pride in their high-quality work contribute to a positive company image and assist in attracting and retaining top talent.

    Reward and incentivize positive behavior

    Positive reinforcement can go a long way. Encourage ethical behavior through recognizing efforts in company meetings, newsletters, or personally. Consider providing incentives such as financial bonuses, additional days off, or salary increases. By rewarding moral behavior, you inspire other team members to follow suit and demonstrate a genuine dedication to fostering a positive workplace culture – moving beyond mere policy statements to tangible commitment.

    Building an ethical workplace isn’t a one-and-done action. It requires consistent effort from everyone on your team. However, the long-term benefits are well worth the time and energy.

    Human Resource Audits With GMS

    Crafting policies on employee theft and establishing a code of ethics can be challenging. Ensuring your policies are compliant with laws and regulations is an added struggle. Partnering with a professional employer organization (PEO) like GMS can alleviate some of the stress.

    We offer a range of HR audits that ensure your business is compliant and up to date with best practices and help you strategically find your strengths and weaknesses. By conducting an HR audit, we can help your business reduce costs and improve its HR functions in a fraction of the time.

    No matter what type of HR audit you need, our dedicated specialists are ready to:

    • Take the time to learn how your HR functions are currently
    • Draft a comprehensive report that outlines your current HR status
    • Provide recommendations on how you can improve your internal HR processes
    • Offer guidance on HR functions that can be outsourced

    Contact us today, and let us help you establish and maintain a positive work environment.

  • With 2024 in full swing, employers are starting to plan for employee salary increases this year. While economic concerns have prompted some employers to take a more conservative approach with compensation compared to 2023, the consensus remains positive for employees. Research shows that U.S. employers are expected to provide an average salary increase of four percent in 2024. Although this is slightly lower than the previous year’s increase, it is still significantly higher than salary budgets in recent years.

    Factors Influencing Salary Increase Strategies

    There are two key factors driving employers’ decisions regarding salary increases in 2024. The first is high inflation, which has led to steep prices for essential goods and services such as food, housing, and health care. It now requires $119.27 to buy the same goods and services a family could afford for $100 before the pandemic. Although inflation has decreased minimally since reaching a 40-year high in the summer, workers continue to struggle with the rising cost of living. The second factor is the tight job market, which has increased competition for talent. To attract and retain skilled employees, employers must offer competitive pay to combat the increasing prices.

    The Impact Of Inflation

    Even though inflation has eased somewhat, its effects continue to be felt by employees. A recent survey showed that months of high living costs have pushed employee financial well-being to an all-time low. Workers are burdened with credit card debt, and many find it challenging to save for retirement due to inflation pressures. Employers recognize this and have responded by increasing salary budgets. Surveyed employers cited inflation as the primary reason for the salary increases planned for 2024.

    In addition, voluntary turnover and attrition rates are at 11% overall, indicating the importance of offering competitive compensation packages. However, this survey revealed that fewer organizations report difficulties finding and retaining workers compared to previous years, suggesting a slight improvement in the labor market.

    Employers’ Strategies Beyond Salary Increases

    In addition to salary bumps, employers are adopting various strategies to attract and retain talent. 58% of employers are embracing workplace flexibility, recognizing the importance of work-life balance for employees. Furthermore, 59% of employers are placing a greater emphasis on inclusion, equity, and diversity, acknowledging the need for a diverse and inclusive workforce. In response to these ongoing pressures, organizations are taking the following actions:

    • 50% of respondents have reviewed the compensation of specific employee groups
    • 43% are increasing starting salary ranges
    • 42% are reviewing the compensation of all employees
    • 40% are enhancing the use of retention bonuses or spot awards
    • 36% are increasing training opportunities

    These efforts reflect a commitment to creating a positive and rewarding working environment in the face of economic challenges.

    In Times Of Uncertainty, Partner With A PEO

    For small business owners, staying informed about salary trends and the challenges employees face in the current economic climate is crucial. By understanding the impact of inflation and the tight labor market, small business owners can make strategic decisions regarding salary increases and employee retention. Or you can partner with a professional employer organization (PEO) with experts to help you every step of the way, including answering questions and concerns about employee compensation and benefits.

    GMS, a certified PEO (CPEO), helps small businesses navigate the complexities of salary planning, ensuring competitive pay for employees while managing costs effectively. In addition, we provide access to resources and tools to support recruitment, compliance with employment regulations, and more. Partner with us so you can focus on what you do best – growing your business. Start the new year off on the right foot and partner with GMS. Get a quote from us today!

  • In today’s rapidly evolving business landscape, where competition is fierce and technological advancements are reshaping industries, companies face the constant challenge of staying ahead of the curve. To thrive in such an environment, organizations must foster an innovative culture that encourages employees to think and act like entrepreneurs within their existing roles. This approach, known as intrapreneurship, has gained traction as a crucial strategy for driving growth and ensuring long-term success.

    By empowering employees to take risks, explore new ideas, and drive change from within, intrapreneurship can unleash the full potential of a company’s workforce and fuel its competitive advantage. Continue reading to dive deeper into the concept of intrapreneurship and its benefits and learn how companies can integrate it into their HR strategies.

    Defining Intrapreneurship

    Intrapreneurship is a practice allowing an employee to act like an entrepreneur within a company or other organization. Intrapreneurs are self-motivated, proactive, and action-oriented individuals who take the initiative to pursue an innovative product or service. They’re empowered to challenge the status quo, propose new ideas, and execute projects that generate value and drive growth.

    The Benefits Of Intrapreneurship In HR Strategy

    1. Nurturing a culture of innovation

    Intrapreneurship fosters a culture that encourages employees to think creatively, experiment, and bring forth innovative ideas. By integrating intrapreneurial practices into HR strategy, companies can create an environment where employees feel empowered to take ownership of their work and contribute solutions to business challenges.

    2. Retaining top talent

    Intrapreneurship offers employees a sense of autonomy and purpose, which can significantly enhance job satisfaction and engagement. Companies can retain top talent and reduce turnover rates by providing opportunities for employees to pursue their own ideas and projects. Intrapreneurship also attracts ambitious individuals who are passionate about making a real impact.

    3. Driving organizational agility

    In today’s fast-paced business environment, companies need to adapt quickly to changing market dynamics. Intrapreneurship equips organizations with the ability to respond swiftly to emerging trends and capitalize on new opportunities. By empowering employees to take calculated risks and experiment, companies can improve their agility and stay ahead of the competition.

    4. Fostering continuous learning

    Intrapreneurship encourages a growth mindset by promoting continuous learning and personal development. Employees are encouraged to acquire new skills, seek knowledge, and embrace challenges. By integrating entrepreneurial practices into HR strategy, companies can create a learning culture that fuels innovation and keeps employees engaged.

    5. Boosting employee engagement and motivation

    Intrapreneurship allows employees to work on projects they are passionate about, providing a sense of purpose and intrinsic motivation. This increased engagement leads to higher levels of productivity and performance. By incorporating entrepreneurial opportunities into HR strategies, companies can tap into the untapped potential of their workforce.

    Harnessing HR Expertise And Tools For Intrapreneurship

    Unlocking the potential of intrapreneurship requires more than just a leap of faith – it demands strategic support and expert guidance. That’s where a professional employer organization (PEO) like GMS steps in, transforming how business owners navigate this revolutionary approach. By partnering with GMS, companies gain access to an arsenal of HR expertise, cutting-edge tools, and tailor-made solutions that empower them to cultivate a culture of intrapreneurship.

    From comprehensive employee training programs to streamlined HR processes and invaluable advice on incentivizing and rewarding entrepreneurial endeavors, a PEO is an ally for business owners on their journey toward success. With GMS as your trusted partner, organizations can confidently embrace the limitless possibilities of intrapreneurship, revolutionizing their growth trajectory, fostering innovation, and creating an extraordinary workplace that inspires their employees to reach new heights. Contact us today to learn more!

  • As a small business owner, you understand the importance of nurturing a talented and motivated workforce. One of the key aspects of employee development is providing effective feedback. Constructive feedback improves performance and fosters a culture of continuous growth and improvement within your organization. Companies that conduct regular feedback experience 14.9% lower turnover rates.

    In this era of transformative workplace trends, recalibrating feedback strategies has never been more important. As we embark on a new year, it’s the perfect time to revisit how we’re delivering feedback. This blog aims to provide tips for employee feedback and emphasize the opportunity for organizations to reevaluate and enhance their feedback mechanisms to empower their employees and company as a whole.

    1. Establish a feedback culture

    To create a feedback-driven environment, it’s essential to establish a culture that values open and honest communication. Encourage employees to seek feedback and provide suggestions. Foster an atmosphere where feedback is seen as an opportunity for growth, not criticism.

    2. Be specific and timely

    Feedback loses its impact when it lacks specificity or is delivered too long after the event. Ensuring your feedback is timely and addresses specific behaviors or actions is essential. This allows employees to understand the context and make relevant improvements.

    3. Focus on behavior, not personality

    When giving feedback, it’s crucial to focus on observable behaviors rather than personal traits. By doing so, you ensure that the feedback is objective and actionable. Instead of saying, “You’re lazy,” say, “I noticed that you missed the deadline twice last week, which impacted the team’s progress.”

    4. Use the feedback sandwich technique

    The feedback sandwich technique involves sandwiching constructive criticism between positive comments. This approach helps balance negative and positive feedback and makes feedback more acceptable. Start with a positive remark, provide constructive feedback, and end on another positive note.

    5. Be respectful and empathetic

    Feedback should always be delivered with respect and empathy. Understand that employees may have different perspectives and emotions tied to their work. Show compassion and actively listen to their concerns. By demonstrating understanding, you create an environment where employees feel safe and supported.

    6. Encourage two-way communication

    Feedback should be a dialogue, not a monologue. Encourage employees to share their thoughts and perspectives during feedback sessions. Engage in open and honest conversations that allow for a better understanding of each other’s viewpoints. This promotes mutual trust and respect.

    7. Set clear goals and expectations

    Effective feedback should be linked to clear goals and expectations. Ensure that employees have a clear understanding of what is expected of them. Use feedback sessions to align their performance with organizational objectives and help them identify areas for improvement.

    8. Offer growth opportunities

    Feedback should not solely focus on shortcomings. Highlight areas where employees excel and recognize their strengths. Identify growth opportunities and provide resources or training to help them develop their skills further. This approach motivates employees and shows your commitment to their professional growth.

    9. Follow up and track progress

    Feedback is an ongoing process. After providing feedback, schedule follow-up sessions to discuss progress and provide additional guidance if needed. Track employees’ improvement over time and acknowledge their efforts and achievements.

    Give Feedback With The Help Of A PEO

    Giving effective feedback is an essential skill for small business owners. By establishing a culture of feedback, you can create a workplace that fosters continuous improvement and drives success in the new year and beyond. Have you considered partnering with a professional employer organization (PEO)? A PEO like GMS provides feedback on employee performance and training and development, allowing business owners to make informed decisions and improve their business operations.

    GMS’ HR Account Manager Julie Grund shared, “Giving consistent and valuable feedback to your employees is one of the most important aspects of growing and retaining your staff. Employees who receive constructive feedback on a regular basis will feel more valued by the organization, and in turn, they will likely be more productive while maintaining a greater sense of loyalty to the company. Providing feedback will increase employee performance, increase motivation, foster collaboration and teamwork, and improve organizational processes.

    Take your business to new heights with the power of feedback and the expertise of a PEO by your side. Contact us today to learn more!

  • As a business owner, you have to make difficult decisions every day. Letting an employee go is arguably one of the most unpleasant and difficult tasks you can face. Human resources challenges like this can be challenging not only for managers but also for employees and significantly impact company morale. Even if you handle everything perfectly, there will likely be hurt feelings and uncomfortable conversations to navigate. Throughout this decision, it’s crucial to comply with regulations to ensure legal coverage for your business.

    Despite many employers operating under “at-will” employment, which allows them to terminate employees without cause, there are still legal boundaries to consider. Many states enforce regulations around good faith and fair dealing, protecting employees from terminations rooted in malice. Additionally, federal and state anti-discrimination laws safeguard employees from being fired for reasons related to race, gender, age, religion, disability, sexual orientation, and other protected classes.

    If firing an employee is necessary, you need to properly prepare to safeguard your business and remain compliant with federal and state laws.

    Before Termination

    Before you decide to fire an employee, it’s crucial you’ve done your due diligence. This includes having well-defined policies and procedures in place for your team. Key policies should cover areas such as harassment and bullying, employee discipline, and termination procedures. It’s also important to have your team regularly review these policies to ensure everyone is aware and in line. This approach minimizes the risk of an employee claiming they were unaware of your standards and filing a lawsuit for wrongful termination in the future.

    In addition, set clear, achievable goals for your employees over a defined timeframe and provide consistent performance feedback. This approach ensures employees are aware of their standing and areas for improvement.

    Performance improvement plans (PIP) are an excellent tool for employees who do not consistently meet expectations. These plans should comprehensively outline the employee’s shortcomings and include documentation of expected performance. Additionally, it should lay out the potential consequences, including termination, and a corrective action plan with signatures from both the employee and their supervisor. This paper trail can help you defend your decision if a former employee files claims against you.

    Employee Termination Best Practices

    If you’ve determined that letting an employee go is the necessary course of action, it’s essential to handle the process with care, as how you handle the dismissal can affect their reaction and potential legal actions. Think about the timing and location of the conversation. It’s best to avoid public areas where other employees might overhear. Legally, a face-to-face meeting is not required (unless the employee has a disability that requires it). Termination can be conducted over the phone or via videoconference and should be in situations where:

    • The employee’s behavior could cause you or your staff harm
    • The employee cannot be located
    • The employee is a remote worker
    • The employee is unable to meet in person

    Before the termination meeting, it’s essential to be well-prepared. Aim for a concise yet informative discussion covering:

    1. The purpose of the meeting: At the beginning of the meeting, clearly state why you are meeting
    2. Performance review: Summarize the performance issues that led to this decision
    3. Grounds for termination: Provide a straightforward explanation for the termination
    4. Effective date: Inform the employee of the date when the termination takes effect
    5. Finality of decision: Make it clear that the decision is final and not open for negotiation
    6. Company property: Outline the process for returning any company equipment or property
    7. Next steps: Discuss any additional steps, such as final paychecks and benefits information

    During the termination meeting, it’s vital to ensure there are at least two members from your organization to witness. This should include the employee’s immediate supervisor, who is most familiar with the employee and clearly understands the reasons behind the termination, and an HR representative. If your team doesn’t have an HR representative, include a senior member of the company or the business owner.

    They’re essential for covering the termination’s administrative and procedural aspects, including final pay, benefits, and other relevant information. In addition, an HR representative can help manage and diffuse emotional responses, ensuring the conversation remains professional and respectful.

    Communicate With Your Team

    The final step in the termination process is to inform the remaining team members. It’s essential to strike a balance between transparency and confidentiality. You should communicate internally that the employee has left the organization but avoid sharing sensitive details. Focus on discussing the transition plan, outlining how the team will adapt and move forward. Be prepared to address any concerns that arise promptly and clearly. Furthermore, dispelling rumors is crucial to maintaining a positive and productive work environment.

    Termination Compliance And Documentation

    When terminating an employee, one of your primary obligations is to provide their final paycheck. Be aware that different states have varying regulations regarding the timing and method of delivering this final payment. Ensure you understand your state’s specific laws and requirements to avoid legal penalties or complications. Compliance with these regulations guarantees a smooth and lawful termination process.

    In addition to their final paycheck, other information to provide includes the following:

    COBRA notice

    If your terminated employee is eligible for continued health coverage, you must inform them of their rights. They should receive a notice detailing their options for health coverage continuation, such as COBRA in the United States, within 30 days of their termination. This notice should clearly explain the process for electing continued coverage, the associated costs, and the coverage duration.

    Benefits

    Clarify how their benefits will be handled. This includes details about life insurance policies and compensation for accrued vacation or sick time. Many states require the employer to pay out unused paid time off (PTO), so ensure you follow the laws of your state.

    Severance

    If you have a severance agreement with your employee, follow the terms of the contract. This includes adhering to provisions regarding monetary compensation, continuation of benefits coverage, handling of company equipment, and any other aspects specified in the agreement.

    Restrictive contracts

    If your employee has signed a non-compete or non-solicitation agreement, reviewing these documents as part of the termination process is important. This review helps protect your company’s assets and confidential information.

    Maintaining proper documentation regarding employee performance and ensuring compliance with local state laws and regulations are paramount strategies for protecting your business. By having clear, documented justifications for the termination and adhering to legal requirements, you create a strong defense in case of any legal challenges. This not only demonstrates fair and lawful employment practices but also reinforces the integrity and professionalism of your business operations.

    Human Resources With GMS

    Partnering with a professional employer organization (PEO) like GMS can give you peace of mind when it comes to compliance. Not only do we offer assistance regarding laws and regulations, but we can also help you train and track your employees’ progress with our human resource information system (HRIS).
    Our HRIS is software that can collect and report all employee data in a centralized hub. It manages the entire lifecycle of an employee from their initial application through hiring, retirement, or termination. Ready to save time and grow your business through expert HR management and technology? Contact us!

  • Ohio business owners – get ready! Ohio’s minimum wage is set to increase on January 1st, 2024, to $10.45 per hour for non-tipped employees and $5.25 per hour for tipped employees. The new minimum wage will apply to employees of businesses with annual gross receipts of more than $385,000 per year. Currently, the minimum wage is $10.10 per hour for non-tipped employees and $5.05 per hour for tipped employees. In addition, the 2023 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $372,000.

    History Of Minimum Wage

    The Constitutional Amendment passed by Ohio voters in November 2006 states that Ohio’s minimum wage must increase on January 1st each year based on the inflation rate. To determine this, the state minimum wage is tied to the Consumer Price Index (CPI-W) for urban wage earners and clerical workers over the 12-month period before September. This index increased by 3.7% from September 1st, 2022, to August 31st, 2023.

    What This Means For Small Business Owners

    As a small business owner, this change, which is rather small in the eyes of some, may seem like a significant increase. For employees at companies with annual gross receipts of $385,000 or less per year after January 1st, 2023, and for 14 and 15-year-olds, the minimum wage in Ohio is $7.25 an hour. This wage is tied to the federal minimum wage of $7.25 an hour, which, to change, requires an act of Congress and the President’s signature.

    Employers are required to post the most recent minimum wage poster in their business. To access the 2024 minimum wage poster, click here.

    Leverage PEO Expertise

    In the face of Ohio’s minimum wage increase in 2024, business owners find themselves at a crucial stage, seeking different ways to navigate these changes seamlessly. Have you ever heard of a professional employer organization (PEO)? A PEO gives business owners access to expertise in managing HR functions, payroll, compliance, and benefits. PEOs offer tailored solutions, from optimizing employee benefits to streamlining payroll processes, enabling businesses to adapt effectively to the new wage standards.

    Embracing the assistance of a PEO could be the key for Ohio businesses to not only weather the minimum wage increase but also to foster growth, stability, and success in the years to come. Fortunately, Group Management Services (GMS) is headquartered in Richfield, Ohio, ready to step in and help all business owners in Ohio navigate this wage increase. Get a quote from us today to kickstart your business in 2024.

  • In the aftermath of the COVID-19 pandemic’s economic repercussions, the landscape for employees drastically shifted. Temporary layoffs became a reality for thousands, prompting questions about accrued vacation pay and immediate compensation. A recent legal case in California brought this issue to the forefront, establishing critical insights into the obligations of employers during such chaotic times. Hotel employees were entitled to payment for accrued vacation following getting laid off without a specific return date.

    The Timeline: Layoffs And Legal Battles

    In March 2020, over 7,000 employees were laid off due to the pandemic’s ripple effect on business. However, it wasn’t until June 2020 that a termination notice was issued, marking an essential distinction in the eyes of the law. The employees argued that they were entitled to immediate payment for their accrued vacation time, which sparked a legal battle with their employer.

    The Dispute: Timing Of Accrued Vacation Pay

    At the heart of the dispute lies the question of when accrued vacation pay should be disbursed. The employees argued for immediate compensation upon the March 2020 layoff, citing California Labor Code’s prompt payment provisions. However, the employer held that such payment was only due upon the formal termination in June 2020.

    Legal Intervention

    The 9th U.S. Circuit Court of Appeals stepped in, underscoring the significance of prompt payment provisions within the California Labor Code. Reversing the initial judgment, the court directed the trial to consider the employer’s willingness to neglect immediate payment obligations. It drew upon Opinion Letter 1996.05.30 from the California Division of Labor Standards Enforcement (DLSE), affirming that a temporary layoff without a specified return date constitutes a discharge, triggering immediate payment of accrued wages.

    Additional Benefits

    Beyond accrued vacation pay, the case dove into the treatment of additional benefits received by the employees, specifically the value of complimentary hotel rooms. While the Fair Labor Standards Act (FLSA) excluded these benefits from regular pay calculations, the employees argued this exclusion. The court, however, upheld the exclusion, citing Department of Labor regulations that categorized such benefits as similar to other excludable payments under 29 C.F.R. Section 778.224.

    Implications And Clarity For Employers And Employees

    This legal battle sets a significant precedent, emphasizing the importance of prompt payment provisions during temporary layoffs. It solidifies that such scenarios constitute a discharge, necessitating immediate compensation for accrued vacation time, regardless of a formal termination date.

    In addition, the distinction drawn between regular pay calculations and additional benefits provides a clear guideline for similar cases. It ensures clarity regarding compensable income under state labor laws, obligating employers to meet immediate payment requirements for accrued wages during temporary layoffs. This minimizes financial uncertainties for affected employees and sets a precedent for fair treatment during temporary employment disruptions.

    Embracing Clarity In Uncertain Times

    In a rapidly evolving work landscape, understanding labor laws becomes paramount. This legal precedent empowers employees to assert their rights to prompt compensation and establish guidelines for fair treatment during uncertain employment periods. It serves as a crucial reminder for employers and employees to grasp evolving labor laws, ensuring protection and clarity amidst economic disruptions.

    Empowering Small Businesses Through Expert Guidance

    Managing layoffs and deciphering complex labor laws can be overwhelming for small business owners, especially during uncertain times. Small business owners wearing multiple hats, meet GMS, a professional employer organization (PEO). GMS’ experts tackle HR management, offering invaluable expertise in navigating layoffs, ensuring compliance with intricate labor laws, and implementing best practices.

    When you partner with a PEO like GMS, small business owners can access professional guidance, streamlined processes, and tailored strategies, allowing them to navigate layoffs with clarity and confidence. In times of mayhem, GMS empowers businesses to make informed decisions and uphold employee rights while managing the intricacies of workforce transitions. Contact us today to learn more.

  • In a move aimed at fostering opportunities for individuals with prior convictions, New York has taken a significant step forward by enacting the Clean Slate Act, which is set to take effect on November 16th, 2024. New York joined a handful of states embracing similar legislation; this act promises to transform the lives of many by automatically sealing certain criminal records, thereby advocating for second chance hiring and reintegration into society.

    The essence of this law lies in its mission to encourage employment for those with past criminal convictions while balancing the needs of employers to safeguard their interests. Under this legislation, the records of individuals convicted of specific state crimes will be sealed from public access after meeting the outlined criteria.

    Eligibility Criteria: Clearing The Slate

    For misdemeanor convictions, a minimum of three years after release from incarceration or sentence imposition is required for automatic sealing. Felony convictions demand at least eight years post-release from incarceration, provided there are no pending charges and no supervision from probation or parole departments.

    However, it’s crucial to note that certain convictions, such as Class A felonies warranting life imprisonment and offenses mandating registration as a sex offender, remain ineligible for sealing.

    Balancing Access And Protection

    While promoting reintegration into society, the law provides access to sealed records in specific instances. Entities such as courts, law enforcement, and those maintained by law for conducting background checks will still have access to these records under defined circumstances.

    Empowering Employers And Job Seekers

    For employers navigating this change, it’s imperative to understand the implications. The law doesn’t clear employers from conducting job-related analyses before taking adverse actions based on criminal convictions. Factors ranging from the nature of the offense to rehabilitation efforts must be considered in making informed hiring decisions.

    However, with sealed records, candidates may face confusion regarding the status of their past convictions during background checks. Employers must be prepared for such scenarios and uphold compliance with the state and local hiring requirements, ensuring consistency and legal adherence in their employment practices.

    Looking Ahead

    New York’s Clean Slate Act signifies a meaningful shift towards providing equitable opportunities for individuals seeking redemption from past mistakes. It underscores the importance of rehabilitation and societal reintegration while upholding the responsibilities of employers and job seekers in navigating these changes.

    Employers are encouraged to seek legal counsel to align their practices with the evolving legal landscape and ensure fair, informed, and compliant hiring changes. Or, you could consider partnering with a professional employer organization (PEO) like GMS. Our HR experts provide small business owners with expertise in navigating nuanced employment laws, ensuring fair and compliant hiring practices, and providing crucial guidance to employers seeking to embrace the spirit of this legislation. We can pave the way for a more inclusive and equitable workforce. Contact us today to learn more.

  • As we usher in a new year, now is an ideal time for companies to reassess, revamp, and realign their strategies. Amidst the flurry of resolutions and fresh starts, updating the employee handbook is one essential yet often overlooked aspect of this renewal process. This crucial document is the cornerstone of your company’s policies, guiding principles, and expectations for your workforce. Let’s take a closer look into the importance of revitalizing your handbook and how it can lay the groundwork for a successful year ahead.

    Reflecting Current Standards And Practices

    The business landscape is constantly changing, influenced by technological advancements, industry changes, and evolving societal norms. As a business owner, your employee handbook should mirror your organization’s current standards and practices. Updating your handbook ensures that your policies align with the following:

    • Latest legal requirements
    • Industry best practices
    • Internal adjustments within your company

    Fostering A Positive Workplace Culture

    Beyond legal compliance, the handbook is a tool for fostering a positive workplace culture. Emphasizing your company’s values, mission, and vision in the handbook reaffirms your commitment to creating an inclusive, diverse, and supportive work environment. Integrating policies that promote work-life balance, mental health support, and professional development opportunities underscores your dedication to employee well-being and growth.

    Promoting Clarity And Consistency

    Within any organization, clarity in communication is paramount. An updated handbook minimizes ambiguity by offering clear and consistent guidelines on company policies, procedures, and expectations. This clarity reduces misunderstandings and mitigates potential conflicts, allowing employees to navigate their roles confidently and align their actions with organizational goals.

    Adapting To Technological Advancements

    The rapid evolution of technology often introduces new tools and methods that streamline workflows and enhance productivity. Your handbook should reflect these changes, offering guidance on using new technologies, remote work policies, data security protocols, and any other technological advancements relevant to your industry.

    Strategic Steps For Handbook Enhancement

    As a business owner, we get that time is of the essence, and updating your employee handbook might feel daunting. Fortunately, we’ve got your back and have come up with four quick steps to spruce up your employee handbook without getting lost in the details.

    1. Comprehensive review: Begin with thoroughly reviewing your current handbook, noting outdated policies or areas requiring updates.
    2. Legal compliance check: Collaborate with legal counsel to ensure all policies comply with current employment laws and regulations.
    3. Engage employees: Consider seeking input from employees to identify areas for improvement or clarification in the handbook.
    4. Communication strategy: Once updated, communicate the changes effectively to all staff members, ensuring accessibility and understanding.

    GMS’ HR Account Manager Claire Dobish added, “Handbooks set clear expectations regarding their rights, responsibilities, and overall company standards. Keeping your handbook up-to-date reduces the risk of misunderstandings and issues between employees and employers. GMS updates their handbooks yearly to ensure state and federal compliances are in place to assist small business owners.”

    Still Feel Like A Daunting Task?

    Understanding the demands of your time is crucial, and revising an employee handbook may seem like an additional mountain to conquer. Yet, the significance of this document for your business remains undeniable.

    Meet Group Management Services (GMS), a distinguished professional employer organization (PEO). We take on the intricacies of your business’s operational aspects, including the burden that revising your handbook can impose. Our expertise becomes your advantage in streamlining this process.

    With our tailored solutions, we aim to alleviate the weight of administrative tasks, allowing you to focus on propelling your business forward. Elevate your handbook seamlessly and let GMS empower your business with an updated, compliant, and finely tuned handbook for 2024. Your time is precious – let us ensure it’s spent on strategic endeavors, not administrative challenges. Ready to redefine your employee handbook? Partner with GMS for an efficient, compliant, and confident future. Contact us today.