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  • In a move to promote wage equity and improve transparency in the hiring process, the City of Cleveland passed a new pay equity ordinance that imposes salary disclosure requirements and restricts the use of salary history in hiring decisions. The ordinance was signed into law by Mayor Justin Bibb on April 28, 2025, and is scheduled to take effect six months later, giving employers time to prepare. 

    Who Must Comply 

    The ordinance applies to employers with 15 or more employees operating within the City of Cleveland. This includes private employers, as well as city contractors and vendors who provide services to the city. Importantly, the law focuses on positions that are physically located in Cleveland, even if the broader organization operates outside the city limits. Remote positions may also fall under this ordinance if they are tied to a Cleveland-based office or if the employer is headquartered in the city. 

    Covered Individuals 

    The ordinance covers job applicants and employees working in Cleveland. It is designed to protect individuals applying for new positions, promotions, or transfers within organizations that fall under the ordinance’s scope. 

    Key Requirements for Employers 

    Employers who are covered by this new ordinance must adhere to two core obligations: 

    1. Salary range disclosure: Employers are now required to disclose the salary range or pay scale for any open position in job postings. This range must reflect what the employer reasonably expects to pay for the position, taking into account internal compensation structures and market rates. This applies to postings for new roles, internal promotions, and transfers.
    2. Ban on salary history inquiries: Employers may no longer request or rely on an applicant’s wage or salary history when making hiring decisions. That means removing questions about prior compensation from applications, interviews, and background checks. Employers also cannot retaliate against applicants who choose not to disclose their salary history voluntarily. 

    Why This Matters 

    Pay transparency laws are part of a growing national movement to close gender and racial wage gaps. Historically, basing offers on past salary can perpetuate inequities, especially for women and people of color. By requiring employers to publish salary ranges and disregard salary history, Cleveland’s ordinance seeks to level the playing field for all job seekers. 

    Steps Employers Should Take Now 

    With the ordinance taking effect in late 2025, employers have a limited window to get their processes in order. Here are key steps to consider: 

    • Review and update job postings: Ensure every job listing includes a legitimate and reasonable salary range that reflects internal standards and market data. 
    • Eliminate salary history questions: Remove any questions about previous compensation from applications, interviews, and screening processes. Update related templates and forms accordingly. 
    • Revise internal policies: Update employee handbooks, hiring policies, and manager training materials to align with the ordinance. Clear guidance helps ensure compliance across all levels of the organization. 
    • Train HR and hiring teams: Provide focused training on the ordinance to recruiters, managers, and anyone involved in the hiring process so they understand what can and cannot be asked. 

    How GMS Can Support Compliance and Recruiting Success 

    Cleveland’s new pay equity ordinance is part of a larger trend taking hold across the country. From California to New York, and now right here in Ohio, more cities and states are adopting salary transparency laws and restricting the use of salary history in hiring. For employers, this means staying compliant isn’t just a one-time effort; it’s an ongoing process that requires attention to local, state, and federal employment regulations. 

    At Group Management Services (GMS), we support businesses nationwide by helping them navigate complex and evolving compliance requirements, no matter where they operate. Whether you’re hiring in Cleveland, Chicago, or across multiple states, we can help you: 

    • Craft legally compliant and competitive job descriptions 
    • Update employee handbooks to reflect city- or state-specific mandates 
    • Align recruitment strategies with pay transparency laws 
    • Train your HR and hiring teams to follow best practices and avoid risk 

    Don’t let local ordinances catch you off guard. With GMS as your partner, you can focus on growing your business while we handle the heavy lifting of compliance everywhere you hire. 

  • The skilled trades are the backbone of the American economy. Electricians, plumbers, heating, ventilation, and air conditioning (HVAC) technicians, and other craftsmen keep our homes, businesses, and infrastructure running smoothly. The skilled labor market is experiencing high demand, particularly in fields such as construction, manufacturing, and energy. Many trade business owners are finding it harder than ever to manage the day-to-day responsibilities that come with running a company.

    That’s where a professional employer organization (PEO) like Group Management Services (GMS) comes in. Partnering with a PEO empowers skilled trades businesses to delegate administrative tasks, allowing them to focus on delivering high-quality work.

    The Challenges Facing Skilled Trades Businesses 

    Skilled trade owners are no strangers to long hours and tight deadlines. But on top of that, they often juggle:

    • High turnover rates and labor shortages, especially among younger workers entering trades.
    • Time-consuming HR tasks, such as onboarding and crew management, across multiple job sites.
    • Complex payroll processing and tax filing with job costing, prevailing wage, and overtime tracking.
    • Compliance with constantly changing labor laws and safety regulations, which vary by state.
    • Rising costs of employee benefits and workers’ compensation.
    • Little time left to pursue growth opportunities, such as new contracts or training initiatives.

    These challenges are not only inconvenient but also costly. Small business owners spend an average of 20+ hours per week on HR-related tasks. That’s valuable time that could be spent on job sites, bidding on new projects, or training employees.

    How a PEO Partnership Helps

    GMS offers full-service PEO solutions designed to support the unique needs of skilled trades businesses. Here’s how we can help:

    Risk management

    From Occupational Safety and Health Administration (OSHA) requirements to workers’ comp, skilled trade businesses face a complex web of regulations. GMS creates comprehensive risk management plans to keep employees safe and reduce workers’ compensation rates. Partnering with GMS helps businesses address hazards, reduce workplace injuries, manage claims, and enjoy lower insurance rates.

    Employee benefits

    Attracting and retaining top talent requires competitive benefits, but managing them can be costly and complex. GMS streamlines this process, offering cost-effective benefits that keep employees engaged and businesses competitive.

    Human resources support

    Our expert team handles a wide range of HR tasks, including recruiting, onboarding, employee training, payroll, and benefits administration. By partnering with GMS, businesses can streamline their HR processes, ensure compliance, and focus on their core operations while we manage the complexities of HR.

    Payroll and tax administration

    No more worrying about missed deadlines or incorrect withholdings. We offer streamlined payroll services designed to make managing payroll easy and stress-free. We handle everything from payroll processing and tax management to providing access to payroll software, where employees can view their payroll information anytime, anywhere.

    Real Results from Real Businesses

    Businesses that partner with a PEO see measurable improvements. According to 2025 data from the National Association Of Professional Employer Organizations (NAPEO):

    • PEO clients grow 7% to 9% faster than businesses that don’t use a PEO.
    • Businesses that use a PEO have 12% lower employee turnover.
    • PEO clients are 50% less likely to go out of business.
    • The return on investment when using a PEO, in cost savings alone, is 27%.

    Why Skilled Trades Should Partner with GMS

    Whether you’re running a small plumbing company or a growing construction business, GMS understands the unique demands of skilled trades. We help simplify your back office so you can focus on scaling your operations, supporting your team, and serving your clients.

    Hear from our skilled trades clients:

    “GMS presented a comparative cost savings of their services versus our ‘in-house’ accounting and workers’ compensation. The amount saved was substantial for our sized firm…They have helped our company save money on workers’ compensation, as well as accounting expenses.” 

    – HVAC Company 

    “In addition to our payroll services, we have utilized many of the services GMS offers, from human resources to workers’ compensation. With today’s ever-changing laws and regulations, it is difficult to keep up. As a small company, we find it a great comfort to have their expertise at our fingertips.” 

    – Manufacturing Company 

    “GMS has saved our company hundreds in workers’ comp alone. They are truly a partner in all HR functions. Although we are a small company, GMS helps us to operate with the professionalism of a large corporation.” 

    – Construction Company 

    The skilled trades are essential to our future and so is making sure those businesses have the support they need to thrive. Let GMS take care of your business, so you can take care of the job. Learn more about partnering with GMS today.

  • In the construction industry, no two days are alike. Managing multiple crews, juggling job sites, adhering to safety regulations, and keeping projects on schedule leaves little time for payroll, human resources (HR), or benefits. However, neglecting these administrative responsibilities can result in noncompliance, poor retention, safety risks, and burnout. 

    That’s where a professional employer organization (PEO) comes in. By partnering with a PEO like Group Management Services (GMS), construction business owners can offload HR responsibilities, reduce risk, and build a stronger, more efficient workforce. 

    Here’s how a PEO can specifically support your construction business: 

    Payroll Built for Job Sites, Not Desks 

    Processing payroll in construction involves more than just cutting checks. It requires tracking hours across multiple sites, managing prevailing wage requirements, calculating union dues (if applicable), and ensuring accurate job costing. 

    A PEO streamlines all of this by: 

    • Handling complex multi-state payroll 
    • Ensuring compliance with local, state, and federal wage laws 
    • Integrating certified payroll reporting for government contracts 
    • Simplifying job costing by categorizing labor costs per site or project 

    Safer Job Sites and Lower Workers’ Comp Costs 

    Construction sites have higher risks, which means higher workers’ compensation premiums. A PEO helps construction companies mitigate risk and often offers access to more affordable coverage through a shared risk pool. 

    With GMS, you get: 

    • Safety program development and training 
    • Occupational Safety and Health Administration (OSHA) compliance support 
    • On-site inspections and recommendations 
    • Workers’ compensation policy management and claims handling 
    • Return-to-work programs to reduce lost time and costs 

    We’re not just here after an accident; we help you prevent them in the first place. 

    Help With Hiring and Keeping Skilled Workers 

    Hiring in construction is competitive, and retaining good employees is even tougher, especially when small contractors are competing against larger firms with better benefits. 

    GMS gives you the power of a big company by offering: 

    • Access to Fortune 500-level benefits (health, dental, vision, 401(k), etc.) 
    • Recruitment support and applicant tracking systems (ATS) 
    • Streamlined onboarding and digital document management 
    • Tools for tracking certifications and licenses 

    A stronger benefits package makes your job postings stand out and gives your crew a reason to stay. 

    HR Compliance That Keeps You Out of Trouble 

    Between classifying 1099s vs. W-2s, tracking hours, and adhering to ever-changing labor laws, HR compliance in construction can be a minefield. One misstep can lead to audits, penalties, or lawsuits. 

    GMS protects you by: 

    • Managing employee classification and documentation 
    • Ensuring wage and hour law compliance 
    • Maintaining up-to-date employee handbooks and policies 
    • Handling unemployment claims and The Equal Employment Opportunity Commission (EEOC) filings 
    • Providing expert HR guidance when issues arise on-site 

    We help you stay compliant so you can keep your projects moving without disruption. 

    More Time for Project Deadlines: Less Time on Paperwork 

    You didn’t get into construction to sit behind a desk pushing paperwork. Outsourcing your HR functions to a PEO gives you time to focus on what you do best: bidding jobs, managing crews, and growing your business. 

    We handle the behind-the-scenes HR tasks so you can: 

    • Spend more time on-site 
    • Reduce administrative burnout 
    • Gain peace of mind knowing your business is protected 

    Build Smarter with a Trusted PEO Partner 

    The construction industry is high-stakes and fast-paced. The last thing you need is to get tripped up by an HR issue that could’ve been avoided. When you partner with GMS, you get more than just outsourced services; you get a strategic partner who understands the demands of your industry and helps you stay ahead. 

    Let us take the heavy lifting off your plate. Contact us today to learn how GMS can help your construction business grow with confidence. 

  • Ohio’s private employers are set to receive another reduction in their workers’ compensation premiums. The Ohio Bureau of Workers’ Compensation (BWC) has approved a 6% rate reduction, effective July 1, 2025, following a 7% cut implemented in 2024. This latest reduction is expected to save private employers across the state approximately $60 million in the next fiscal year. 

    A Continued Trend Of Lower Costs For Employers 

    The newly approved reduction marks the 16th rate cut in the past 17 years, bringing premium levels to their lowest in over 60 years. Ohio Governor Mike DeWine attributed the continued decline in costs to businesses fostering a culture of workplace safety, which has helped reduce claims and overall risk. 

    BWC Administrator/CEO Stephanie McCloud emphasized that the agency’s focus remains on maintaining a strong and stable workers’ compensation system while keeping costs low for the 258,000 private and public employers participating in the program. 

    What This Means For Small Businesses 

    The rate reduction is particularly beneficial for small businesses, allowing them to reinvest savings into their workforce and operations. Chris Ferruso, Ohio state director of the National Federation of Independent Business (NFIB), noted that reducing costs for small employers helps them retain employees, enhance workplace safety programs, and navigate economic challenges. 

    However, it’s important to remember that the 6% rate cut is an average statewide change. Individual employers’ premiums may vary based on factors such as: 

    • Industry risk levels and expected future claims costs 
    • A company’s recent claims history and safety record 
    • Participation in BWC safety programs and incentive initiatives 

    How GMS Can Help Your Business Maximize Savings 

    At Group Management Services (GMS), we are dedicated to helping businesses fully leverage the benefits of the Ohio BWC rate reductions while enhancing workplace safety and ensuring compliance. Here’s how we can help: 

    • Risk analysts: We provide personalized guidance to help you understand the impact of the rate reduction on your business and identify strategies to maximize your savings. 
    • Workplace safety programs: Our experts help implement effective safety programs that can reduce claims and further lower premiums. 
    • Claims management: By closely monitoring and managing claims, we help businesses control costs associated with workers’ compensation, minimizing the financial impact on your company. 
    • Compliance support: Navigating BWC regulations can be complex; we ensure your business stays compliant with all requirements and adapts to any changes in the system. 

    By partnering with GMS, employers can achieve significant cost savings, improve workplace safety, and maintain regulatory compliance. Contact us today to learn how we can help your business make the most of these savings and create a safer, more productive work environment. 

  • On March 17, 2025, the U.S. Department of Labor (DOL) will put into effect major updates to its Voluntary Fiduciary Correction Program (VFCP). This program encourages voluntary compliance by self-correcting violations of the law. The changes introduce a new self-correction component (SCC) that streamlines the process for correcting one of the most common fiduciary breaches: the late remittance of participant contributions and loan repayments. This update isn’t just regulatory fine print; it’s a significant development affecting how employers manage employee benefit plans, and it offers practical advantages for those looking to stay compliant without the administrative burden.

    What’s New Under The VFCP Update?

    Instead of submitting a full VFCP application and waiting for a “no-action letter” from the Employee Benefits Security Administration (EBSA), plan sponsors can now self-correct certain delinquencies. Once you submit an electronic SCC notice through EBSA’s online portal, you’ll receive an acknowledgement email confirming the submission.

    Key conditions for use:

    • Timely remittance: Delinquent participant contributions and loan repayments must be deposited within 180 calendar days of the applicable pay date or receipt.
    • Lost earnings limit: The SCC is available only if the “lost earnings” calculated on the principal amount are $1,000 or less. The VFCP online calculator must be used to determine this figure.

    Required documentation:

    • Contact information (including name, email, and employer identification number (EIN))
    • Plan identification details (plan name and number)
    • The principal and lost earnings amounts, along with the relevant dates (pay date and deposit date)
    • The number of participants affected by the correction

    Additionally, supporting documents, such as proof of payment, the VFCP calculator’s printable results, and a penalty of perjury statement, must be retained and provided to the plan administrator.

    How It Differs From The Traditional Process

    No formal no-action letter

    Traditional VFCP applications result in a no-action letter that assures no enforcement action will be taken. In contrast, SCC submissions receive a prompt email acknowledgment that confirms the corrective action has been logged.

    Cost and complexity

    Both the SCC and the traditional VFCP application carry no filing fee. However, for small-dollar corrections, the SCC offers a much more efficient route, reducing both time and administrative complexity.

    Broader regulatory context

    These changes are part of a wide update to the VFCP and the associated prohibited transaction exemption (PTE) 2002-51, reflecting the department’s commitment to encourage timely, voluntary corrections while safeguarding participants’ retirement benefits.

    What This Means For Employers

    As an employer or plan administrator, understanding these changes is crucial. Here’s what you need to consider:

    Improved efficiency

    The SCC process minimizes paperwork and speeds up the correction process, allowing you to resolve issues quickly and move on to other priorities.

    Enhanced compliance

    By meeting the 180-day remittance deadline and staying within the $1,000 lost earnings cap, your business can avoid costly enforcement actions and civil penalties under the Employee Retirement Income Security Act (ERISA).

    Tailored for small-dollar corrections:

    For the most frequent and smaller-scale delinquencies, the SCC offers a simplified alternative to the formal VFCP application process, saving your business valuable time and resources.

    Continued oversight

    Although the process is streamlined, strict documentation and timely submission requirements ensure that the department maintains adequate, keeping fiduciary responsibilities front and center.

    How GMS Can Help

    At Group Management Services (GMS), we understand that regulatory changes can be challenging to navigate. Here’s how we support your business through this transition:

    • Human resources (HR) expertise: We stay on top of regulatory updates like the VFCP changes so you don’t have to. Our team will help ensure your employee benefits plans are compliant with the latest requirements.
    • Streamlined administration: From payroll and tax compliance to risk management and benefits administration, GMS handles the administrative burdens so you can focus on growing your business.
    • Customized support: Whether you need assistance with documenting the SCC process or require an overall review of your HR practices, our dedicated professionals are here to help.
    • Innovation and integrity: At GMS, we champion a culture of innovation and transparent actions, ensuring that our solutions not only meet regulatory requirements but also make your operations simpler, safer, and stronger.

    Contact GMS here if you need assistance positioning your company to benefit from the streamlined self-correction process and continue safeguarding your employees’ retirement security.

  • Key Takeaways

    1. Next steps: The BWC Board will vote on the six percent reduction on February 28th.
    2. Effective date: If approved, the rate change takes effect on July 1, 2025.
    3. Potential savings: Ohio private employers would pay $60 million less in total premiums over the next fiscal year.

    Ohio’s private employers may soon see yet another reduction in their workers’ compensation premiums. On January 24, 2025, the Ohio BWC announced a proposal for a six percent rate cut, a move that could save employers across the state a collective $60 million starting in July of this year.

    Continuing A Trend Of Rate Decreases

    If approved at the BWC Board of Directors’ meeting on February 28th, this would be:

    • The sixth rate reduction since Governor Mike DeWine took office in 2019.
    • The 16th decrease in the past 17 years, going back to 2008.

    According to the BWC, the average premium levels for both private and public employers (totaling about 257,000 across Ohio) now stand at their lowest in 60 years.

    Why The Proposed Rate Cut?

    BWC Administrator/CEO Stephanie McCloud emphasizes that the continued trend toward lower rates reflects the commitment of Ohio’s workforce to promoting safety on the job. In addition, program participation, fewer claims, and a strong focus on injury prevention have helped keep costs in check.

    Impact On Employers

    This six percent rate decrease is an average statewide premium reduction. Actual savings for individual employers will vary based on:

    • Industry risk and expected future claims costs
    • Recent claims history
    • Participation in various BWC safety and discount programs

    Nonetheless, Ohio businesses, particularly small and midsize businesses (SMBs), stand to benefit significantly if the BWC Board gives final approval.

    Looking Ahead

    With the BWC’s track record of approving proposed cuts, many anticipate a favorable outcome on February 28th. Ohio Chamber of Commerce President and CEO Steve Stivers has already expressed strong support, noting that this decision would help make Ohio “the best place in the nation for business.”

    How GMS Can Help

    If you’re looking to take full advantage of potential premium savings or want to ensure your workplace safety measures and BWC program participation are optimized, Group Management Services (GMS) can help. Our experts will work alongside your organization to:

    For more information on how this rate reduction could affect your organization, or to explore additional ways to reduce overhead costs and streamline your HR, contact us today. We’re here to help you stay informed, compliant, and prepared for changes as they develop.

  • Co-employment is a strategic partnership between a business and a professional employer organization (PEO) that enables the sharing of employer responsibilities. This arrangement allows business owners to focus on core operations while the PEO manages essential human resources (HR) functions such as payroll, compliance, and benefits administration. Understanding the dynamics of co-employment can help businesses leverage their benefits effectively and avoid potential pitfalls. 

    Defining Co-Employment 

    The National Association of Professional Employer Organizations (NAPEO) states, “The PEO relationship involves a contractual allocation and sharing of certain employer responsibilities between the PEO and the client, as delineated in a contract typically called a client service agreement (CSA).” Ultimately, the PEO does not make decisions for the business; all control remains with the business itself. 

    The business is responsible for all business decisions, operations, day-to-day supervision of employees, job assignments, employee reviews and assessments, and determining the employee’s salary and benefits offerings. Although the PEO may be recognized by the state as the employer of record, the business retains the ultimate authority over crucial business decisions. The main advantage of sharing employer status is to receive access to tools and HR services that are typically out of reach for small businesses.  

    Benefits Of Co-Employment 

    Greater buying power  

    Small businesses often lack the purchasing power of larger companies, but co-employment helps level the playing field. Through a co-employment relationship, businesses can leverage economies of scale. PEOs utilize the collective buying power of all their group health clients, allowing them to secure more cost-effective, high-quality group health plans. 

    Some PEOs offer additional benefits beyond medical and dental insurance, such as retirement savings plans, pet insurance, legal insurance, and more. By combining the collective strength of all their clients, PEOs enable small to midsize businesses to access competitive premiums similar to those of large companies. This means businesses can benefit from lower health insurance premiums while still offering comprehensive coverage to their employees. 

    With rising health care costs, this buying power is more valuable than ever, allowing companies to provide top-tier benefits without sacrificing their bottom line. 

    Simpler payroll processing  

    In a co-employment relationship, the PEO is responsible for paying your employees. Businesses must apply for an Employer Identification Number (EIN) to manage payroll. Companies in a co-employment relationship agree to let the PEO handle this responsibility under its own EIN. 

    While changing the EIN might not seem exciting, it lets you offload many complex, time-consuming tasks. Using the PEO’s EIN, the PEO becomes responsible for more than just issuing paychecks. These additional payroll administrative tasks include: 

    • Calculating and withholding income and payroll taxes from employee paychecks 
    • Calculating and distributing overtime pay 
    • Reporting these taxes to the Internal Revenue Service (IRS) 
    • Determining proper employee classifications 
    • Filing and issuing W-2s and other payroll forms 

    This transfer of responsibility saves you significant time and effort. Additionally, having your PEO manage these tasks ensures that all calculations and filings are accurate and compliant with payroll guidelines. With a PEO, you can trust that your payroll is handled by trained professionals. 

    Safer workplaces 

    Businesses can also benefit from a co-employment relationship through improved workplace safety and risk management. A PEO can help your company qualify for workers’ compensation discounts and maintain lower unemployment tax rates, saving you money and reducing future headaches. 

    PEOs can assist with safety culture and claims management. These processes not only create a safer environment for employees but also help reduce workers’ compensation costs. Risk management measures include: 

    • Safety training 
    • Risk assessments 
    • Timely reporting 
    • Post-accident investigations 
    • Return-to-work programs 

    Better business alignment 

    As your company grows, you may need more than just payroll administration or benefits assistance. The co-employment relationship gives PEOs a vested interest in your business goals, working with you to identify growth opportunities and retain talented employees. A PEO can support your growth through: 

    • Employee recruiting and training 
    • Performance management 
    • Unemployment claims 
    • Human resource audits 
    • Wellness programs 
    • Telemedicine 

    In addition to helping you grow, being co-employed by a PEO means you have access to experts when you need them. This breadth of resources helps you stay on top of trends and regulatory changes that can impact your business. 

    Common Concerns About Co-Employment 

    Despite its benefits, some business owners hesitate to engage in co-employment due to misconceptions, such as: 

    • Loss of control: Business owners worry they will lose authority over their workforce. However, in a co-employment relationship, the client company retains full control over hiring, terminations, and workplace culture. A PEO serves as a trusted advisor, providing expert support and resources while allowing the business to maintain its leadership and decision-making power. 
    • Cost concerns: While partnering with a PEO requires a financial investment, the long-term savings on compliance, payroll, and benefits outweigh the costs. Businesses can streamline operations, reduce errors, and access high-quality benefits, ultimately enhancing efficiency and profitability. 
    • Employee confusion: Some employees may initially feel uncertain about their relationship with the PEO. However, clear communication and transparency about roles and responsibilities can alleviate these concerns and foster a positive working relationship.  

    Co-Employment Statistics  

    Partnering with a PEO through a co-employment arrangement offers numerous tangible benefits, including: 

    Cost savings on HR and benefits 

    • Studies from NAPEO indicate that businesses partnering with PEOs experience a 27% return on investment (ROI) through cost savings in HR administration and benefits procurement. 
    • PEOs leverage economies of scale to negotiate better health insurance rates, saving businesses up to an estimated 30% on premiums compared to standalone plans. 

    Improved compliance and risk mitigation 

    • PEOs stay updated on evolving labor laws, ensuring businesses remain compliant with regulatory changes such as overtime pay rules and workplace safety requirements under the Occupational Safety and Health Administration (OSHA). 
    • They assist with Equal Employment Opportunity Commission (EEOC) compliance, helping prevent discrimination lawsuits and penalties. 

    Enhanced employee retention and satisfaction 

    • Access to comprehensive benefits packages, including employee assistance programs (EAPs), professional development opportunities, and flexible spending accounts (FSAs), can boost employee morale and reduce turnover. 
    • According to NAPEO, businesses using PEOs have 10-14% lower turnover rates than those that don’t. 

    Streamlined hiring and onboarding processes 

    • PEOs offer applicant tracking systems (ATS), background checks, and onboarding software to ensure a seamless hiring experience. 
    • They help small businesses attract top talent by offering competitive compensation packages and structured onboarding programs. 

    Selecting The Right PEO Partner  

    When choosing a PEO, businesses should conduct thorough due diligence, considering factors such as: 

    • Accreditations and certifications: Look for PEOs certified by the IRS, ensuring they meet strict financial and ethical standards. These PEOs are called CPEOs.  
    • Industry experience: Choose a PEO with experience in your specific industry to ensure compliance with sector-specific regulations. 
    • Service offerings: Assess whether the PEO provides the necessary HR services tailored to your business’s needs, such as recruitment support or performance management. 
    • Technology capabilities: Ensure the PEO offers user-friendly HR technology solutions for payroll, benefits management, and employee self-service. 

    By partnering with a reputable PEO, businesses can access valuable resources and expertise that would otherwise be out of reach, creating a more efficient and productive work environment. If you’re considering co-employment, Group Management Services (GMS) can help guide you through the process and tailor solutions that meet your business’s unique needs. Contact us today to learn more about how we can support your business growth and help you reclaim your valuable time. 

  • President Donald Trump has been sworn in as the 47th President of the United States, making him the first leader since Grover Cleveland to serve non-consecutive terms. Despite the administration still being in its early days, we’re already seeing substantial changes to labor and employment policy, including signals about diversity, equity, and inclusion (DEI) programs, workplace discrimination enforcement, and federal contracting requirements. 

    Here’s what we’ve gathered so far, plus some key insights to help guide your business decisions. 

    Major Shakeup At The EEOC

    The Equal Employment Opportunity Commission (EEOC) recently experienced an unprecedented staffing change beyond the appointment of Andrea R. Lucas as Acting Chair:

    Firing of two democratic commissioners
    President Trump terminated Democratic Commissioners Charlotte Burrows and Jocelyn Samuels, effectively removing them from office before their terms expired. Trump also dismissed EEOC General Counsel Karla Gilbride. Legal challenges questioning the scope of the president’s power are already in the works, and it is unclear whether courts will ultimately reinstate the terminated commissioners or uphold the firings.

    Current status
    With Burrows and Samuels gone, the EEOC now has only two remaining commissioners: Acting Chair Andrea R. Lucas (Republican, originally appointed in 2020) and Commissioner Kalpana Kotagal (Democrat, confirmed in 2023). Because the EEOC must have a three-member quorum to take formal actions such as issuing new regulations or formal guidance, President Trump is expected to quickly appoint at least one new Republican commissioner, giving him a functioning majority.

    Acting Chair Andrea Lucas’s priorities
    Lucas has already outlined several top priorities, including:

    • “Rooting out unlawful DEI-motivated race and sex discrimination.”
    • “Defending the biological and binary reality of sex and related rights.”
    • Potentially revisiting or reversing the EEOC’s sexual harassment guidance.
    • Reconsidering the Pregnant Workers Fairness Act (PWFA) rules, especially those connected to abortion-related accommodations.

    Implications of the firings
    If the courts uphold Trump’s decision, Republicans could rapidly reshape the EEOC’s policies—speeding up the pivot away from “disparate impact” class actions and heightening scrutiny of certain DEI initiatives and LGBTQ+ protections. However, if a court temporarily or permanently reinstates the fired commissioners, any new regulations or guidance the reconfigured EEOC issues could be invalidated or tied up in litigation. This legal limbo could complicate employers’ compliance efforts for months or even years.

    What this means for employers 

    • DEI audits may become a focal point for the reconstituted EEOC. Even though legal challenges may slow changes, businesses should ensure their DEI programs are carefully structured to comply with existing law (i.e., not imposing quotas or favoring one group over another). 
    • Employers in states or localities with robust anti-discrimination protections should remain mindful that federal changes do not necessarily override state or local laws. 
    • If your organization has been relying heavily on DEI initiatives, it’s a good time to consult legal counsel or human resource (HR) experts, such as Group Management Services (GMS), to confirm the legality of your programs and make any necessary adjustments. 

    Rollbacks Affecting Federal Contractors 

    Separately, President Trump issued an executive order rolling back portions of Executive Order 11246, which had expanded DEI responsibilities for federal contractors. This is consistent with the White House’s newly stated mission to “combat illegal private-sector DEI preferences” and push for more “colorblind” or strictly equal approaches to hiring and promotion. 

    What this means for employers 

    • Federal contractors should review any contractual obligations related to DEI or Affirmative Action Plans. Changes in guidance from agencies like the Office of Federal Contract Compliance Programs (OFCCP) may be on the horizon. 
    • Even non-federal contractors could feel an impact: the order instructs agencies to “enforce our longstanding civil-rights laws,” including scrutiny on private companies’ DEI policies. 
    • With litigation on the rise, both from special-interest groups opposing DEI and from employees advocating for inclusion, employers should walk a careful line in how they design or continue DEI initiatives. 

    Congressional Developments And DOL Moves 

    Meanwhile, the early days of the new Congress, led by Speaker Mike Johnson (R-LA) in the House, signal potential labor reforms. Various new measures, like Representative Zach Nunn’s proposal to limit telework or potential new oversight for the Occupational Safety and Health Administration (OSHA), underscore a theme: tightening certain policies that expanded under the previous administration. 

    In addition, the Department of Labor’s (DOL) new leadership lineup is taking shape. Former EEOC Commissioner Keith Sonderling is set to serve as Deputy Secretary of Labor, pending Senate confirmation. We also expect a hearing for the new Labor Secretary nominee soon, which could help clarify how actively the DOL might revisit rules on wage and hour, workplace safety, and more. 

    What this means for employers 

    • Keep an eye on the Wage and Hour Division for guidance changes on overtime exemption standards, tip credits, and pay equity. 
    • OSHA is rescinding some COVID-19 era rules and may pivot more toward the administration’s broader stance on workplace regulations, meaning less pandemic-specific guidance but potentially renewed focus on enforcement of general safety obligations. 
    • The immediate takeaway is that compliance is still key. With shifting rules, partnering with a professional employer organization (PEO) like GMS helps ensure you’re always up to speed on federal requirements. 

    Key Takeaways And Next Steps 

    1. DEI under the microscope: 

    With the new acting EEOC Chair Andrea Lucas prioritizing “unlawful DEI-motivated race and sex discrimination” and “biological and binary reality of sex and related rights,” expect more investigations into the structure and fairness of DEI programs. 

    2. Monitor federal contracts: 

    If you’re a federal contractor, you may need to amend or revert certain DEI obligations. 

    3. Stay nimble: 

    HR compliance requires vigilance in times of political transition. Expect new DOL guidance, House and Senate proposals, and possible Supreme Court developments, especially around wage and hour standards and Affirmative Action-related issues. 

    How GMS Can Help 

    At Group Management Services, we monitor these changes daily and support businesses with: 

    • HR policy audits and compliance to ensure your workforce practices align with the shifting legal landscape. 
    • DEI best practices and robust training that stays within the bounds of anti-discrimination laws. 
    • Payroll and tax compliance solutions that adjust to new federal and state-level rules. 
    • Risk management guidance including how best to navigate a potential uptick in discrimination claims. 

    We encourage our clients and partners to stay informed and remain agile. If you’re unsure about how these first 90 days might affect your HR strategies, contact us here for tailored advice and updates on the latest regulatory guidance. 

  • Managing payroll is one of the most critical responsibilities for business owners. Mistakes can lead to fines, penalties, and disgruntled employees, potentially derailing business operations. As payroll regulations become increasingly complex in 2025, it’s essential to understand and avoid common errors. 

    To navigate the complexities of payroll, many business owners partner with professional employer organizations (PEOs). These organizations possess the expertise and specialized tools to streamline the payroll process while ensuring compliance and efficiency. However, if you choose to manage payroll independently, there are a few common errors you should be aware of. 

    Common Payroll Mistakes To Avoid 

    Failing to stay up-to-date on payroll regulations 

    Payroll laws are constantly evolving. In 2025, new legislation such as the SECURE 2.0 Act and updated state-specific regulations (e.g., California’s retirement savings mandates) require businesses to be proactive. Neglecting to stay informed about changes can lead to compliance issues and hefty fines. 

    How to avoid it: 

    • Partner with payroll experts who monitor and implement regulatory updates. 
    • Regularly review government resources or work with a professional employer organization (PEO) to ensure compliance. 

    Misclassifying employees and contractors 

    Employee classification establishes the legal relationship between a business and its workers, determining their eligibility for benefits, wage protections, and tax obligations. Under the Fair Labor Standards Act (FLSA), employers must classify their employees as exempt or non-exempt.  

    • Exempt employees typically receive a salary and are not subject to overtime and minimum wage laws.  
    • Non-exempt employees are paid hourly and are entitled to overtime pay and minimum wage protections.  
    • Misclassifying employees as independent contractors is a common payroll error that can lead to penalties, back wages, and additional tax liabilities. 

    How to avoid it: 

    • Follow the Internal Revenue Service (IRS) guidelines to classify workers correctly. 
    • Seek guidance from a payroll expert or legal advisor when hiring new team members. 

    Missing payroll deadlines 

    Timely payroll processing is non-negotiable. According to Form 941, employers must make payroll tax payments periodically. The frequency of these payments, whether monthly, semiweekly or on the next day, depends on your total payroll amount and how long your business has been operating. Ensure you understand which depositor category applies to your business and strictly adhere to the corresponding deadlines. Neglecting to meet these payment obligations can result in substantial fines and legal consequences, which could be detrimental to your business. 

    How to avoid it: 

    • Set automated reminders for payroll deadlines. 
    • Use payroll software to streamline and schedule payments. 

    Incorrect tax withholding 

    Ensure you have the proper tax rates, calculate overtime correctly, and understand how deductions should be applied. Mistakes in calculating or withholding taxes, such as Social Security, Medicare, or state income taxes, can lead to IRS penalties and employee dissatisfaction. 

    How to avoid it: 

    • Double-check employee tax forms, including W-4 and state-specific documents. 
    • Perform regular audits of your payroll records. 
    • Integrate benefits management into your payroll system. 

    Neglecting to track paid time off (PTO) and overtime 

    Mismanaging PTO and overtime payments can have serious consequences for businesses, resulting in underpaying employees and violating wage laws. Failure to comply with wage and hour regulations can result in significant financial penalties, back pay obligations, and damage to the company’s reputation. Additionally, such mismanagement can lower employee trust and morale, potentially leading to higher turnover rates and difficulties attracting new talent. 

    How to avoid it: 

    • Automate time-tracking systems to monitor employee hours. 
    • Understand state and federal overtime laws to ensure proper compensation. 

    Failing to provide accurate payroll records 

    Employees have the right to access their payroll records. Failure to provide clear, accurate, and timely information can lead to disputes or legal consequences. Under the FLSA, employers must maintain pay records for at least three years, including hours worked, pay rates, and payroll dates. 

    How to avoid it: 

    • Maintain organized and accessible payroll records. 
    • Invest in a payroll platform with self-service options for employees. 

    Mishandling garnished wages 

    Mishandling wage garnishments can have serious repercussions for businesses. Obligations like fines, taxes, and child support have distinct rules that can vary by state. Incorrectly handling these garnishments, such as neglecting to file or filing improperly, can lead to legal judgments requiring your business to pay the full amount of the employee’s debt. 

    How to avoid it: 

    • Follow the instructions from the issuing authority, such as the IRS, state tax agencies, or the U.S. Department of Education, precisely. 
    • Stay updated on state-specific rules and regulations regarding wage garnishments. 
    • Implement robust payroll systems to ensure accurate and timely processing of garnishments. 

    Why Avoiding Payroll Mistakes Matters In 2025 

    In 2025, payroll and compliance will be more intricate than ever. New technologies, evolving regulations, and employee expectations demand a proactive approach to payroll management. Avoiding these common mistakes will protect your business from penalties and foster trust and satisfaction among your employees. 

    Partner With GMS For Payroll Peace Of Mind 

    Navigating the complexities of payroll can be overwhelming, but you don’t have to do it alone. GMS specializes in payroll management, compliance, and benefits administration, helping business owners focus on growing their businesses while we handle the details. 

    With our expertise in payroll tax filings, time tracking, and employee benefits, we can help you avoid costly mistakes and streamline your payroll process, all within one platform. Contact GMS today to learn how we can help you confidently manage your payroll in 2025 and beyond. 

  • An informational overview of new regulations reshaping the workplace.

    The year 2025 has arrived with new employment laws. Some are already in full effect, others are entering a transition phase or pending further review. Whether focused on non-compete reforms, paid family leave expansions, or more specialized mandates, these changes underscore how quickly the workplace landscape can evolve.

    FTC Proposal And Ongoing Legal Disputes

    A Federal Trade Commission (FTC) proposal to ban non-compete agreements (except for senior executives making over $151,164) is still pending in the courts. Meanwhile, multiple states, such as Colorado, already restrict non-competes. Pennsylvania’s House Bill 1633 has specifically limited them for certain health care practitioners. Employers may want to note that several court rulings are expected in the months ahead.

    Paid Leave Laws

    Several states ramped up or introduced paid family and medical leave on January 1, 2025. Examples include:

    • Delaware: Employers must begin payroll contributions to fund the statewide Paid Family and Medical Leave program; the first payment deadline is April 30.
    • Connecticut: Under House Bill 5005, more employers must now offer paid sick leave, with further expansions slated for 2026 and beyond.
    • Maine: Its Paid Family and Medical Leave program kicked off payroll deductions on January 1, though full benefits phase in later.

    These state-level laws often interact with (or go beyond) the federal Family and Medical Leave Act (FMLA), creating different entitlements depending on location.

    Mandatory Salary Range Disclosures

    More jurisdictions require or encourage employers to list pay scales and benefits in job postings. For instance, Illinois (House Bill 3129) and Minnesota (Senate File 3852) specify that advertised roles must include a wage or salary range and general benefits details. Cities like St. Paul have also tightened wage theft ordinances, requiring more detailed wage statements at hire and each pay period. Employers that post nationally may need consistent practices to avoid compliance pitfalls.

    AI In Hiring And HR Tasks

    New or proposed laws require employers to evaluate AI-driven tools for potential bias. The Equal Employment Opportunity Commission (EEOC) has issued technical guidance urging oversight on algorithms that might disproportionately screen out protected groups. Some states are drafting or enacting laws targeting AI oversight in human resources (HR), suggesting that AI usage in job applications or performance reviews will remain an active area of regulation in 2025.

    Select State-Specific Changes Worth Noting

    • New Hampshire (HB 1336): Restricts employers from barring lawful firearm storage in an employee’s locked vehicle if the employer receives public funds.
    • Rhode Island (HB 7171): Increases available temporary caregiver paid leave from six to seven weeks in 2025, and to eight weeks in 2026.
    • Washington (SB 5793): Allows employees to use paid sick leave when their child’s school is closed due to a public health emergency; also expands the definition of family member for sick leave.

    How GMS Can Help

    Group Management Services (GMS) specializes in supporting small to midsize businesses as they face complex changes in HR, payroll, and compliance. From addressing new paid leave mandates to aligning job postings with pay transparency rules, GMS can simplify your administrative workload. If you’re looking for a partner who stays on top of shifting regulations so you can focus on running your business, contact GMS today to learn how we can help.