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  • As summer comes to an end, so do the seasonal hiring surges that many businesses rely on to keep up with demand. From retail and hospitality to tourism and event-based industries, the end of summer often signals a major shift in workforce demands. Employers need to adjust their staffing strategies, manage workforce transitions, and prepare for the fall and holiday seasons ahead, all while remaining compliant with employment laws. 

    Here’s what end-of-summer hiring shifts typically look like and how a professional employer organization (PEO) like Group Management Services (GMS) can support your business during this transition. 

    Reduced Seasonal Hiring 

    The back-to-school season and the end of vacation months bring a noticeable slowdown for many industries. Businesses that increased staffing during peak summer may no longer need extra workers. In response, some employers will greatly reduce or eliminate seasonal positions. Others might choose to keep top-performing seasonal workers through temporary or part-time roles, making retention strategies a smart move. A PEO can help by managing seasonal offboarding, ensuring compliance with wage and hour laws, and simplifying transitions to different types of employment. 

    Refocusing on Long-Term Staff 

    Once the seasonal rush ends, many employers turn their attention to building and strengthening their core team. This may involve recruiting for long-term roles to support upcoming seasonal operations or investing in current employees through training and upskilling initiatives. Partnering with a PEO gives you access to talent acquisition support, learning and development resources, and performance management tools that help you retain top talent and build a more stable workforce. 

    Adjusting Work Schedules 

    With reduced workloads, scheduling adjustments are common. You may need to scale back hours, shift work times, or consolidate job duties. These changes should be communicated clearly to employees and tracked accurately to avoid compliance issues with wage and hour regulations. A PEO provides workforce planning expertise and time-tracking solutions that make it easier to manage scheduling changes and compliance. 

    Potential for Layoffs 

    As demand slows, laying off seasonal employees might be necessary. However, employers must handle this process carefully. If a worker was promised a certain length of employment, early termination could carry legal risks. It’s important to understand notice requirements, severance obligations, and applicable state laws related to seasonal layoffs. With a PEO, you gain access to human resource (HR) professionals and legal experts who can guide you through these procedures while safeguarding your business from compliance issues. 

    Increased Demand in Specific Roles 

    While some positions wind down after summer, others start to ramp up. Many businesses experience increased demand in customer service, sales, shipping, and logistics as fall promotions and holiday preparations begin. Proactive hiring in these areas is crucial to make sure your business is prepared for the busy season ahead. GMS can support your efforts by helping you identify staffing needs, create effective job postings, manage onboarding, and ensure new hires are properly classified and receive the training they need to succeed. 

    Transitioning Seasonal Employees 

    If you have standout seasonal employees, this is a great time to consider offering them a more permanent role. Providing training and development opportunities helps these workers grow into new positions and boosts retention. It is also a smart way to fill open roles with individuals who already understand your company culture and operations. Our HR experts can help design clear pathways for seasonal-to-permanent transitions and handle onboarding tasks to ensure a smooth and compliant process.

    Legal Considerations During Transitions 

    Employment law doesn’t take a break, and end-of-season transitions can create legal challenges. From classification issues and wage compliance to benefits eligibility and layoff notices, it’s important to stay informed about changing regulations. Mistakes can result in penalties or harm employee relationships. GMS helps ensure your business stays compliant with all relevant laws, including federal, state, and local regulations. We keep your policies current and offer guidance to help you confidently handle complex employment situations.

    Partner with GMS for a Seamless Transition 

    As hiring needs evolve with the seasons, it’s important to have a trusted partner that can help you manage workforce changes smoothly and legally. GMS offers comprehensive HR outsourcing services designed to take the pressure off your internal team so you can focus on running your business. 

    We’ll help you: 

    • Onboard and offboard seasonal staff with proper classification, documentation, and legal compliance 
    • Provide expert HR guidance on scheduling, workforce planning, layoffs, and role transitions 
    • Support recruitment through job postings, applicant tracking, and hiring best practices 
    • Adjust payroll to reflect staffing changes and avoid costly errors 
    • Offer training tools to upskill employees ahead of the holiday season 
    • Enhance retention by offering competitive benefits  

    Let’s simplify your staffing strategy! Contact GMS today to learn how our HR solutions can support your business through every season. 

  • Auto repair shops keep America moving, one tune-up and tire rotation at a time. But running a successful shop requires more than mechanical expertise. Behind the bays and service counters, business owners face real human resources (HR) and administrative challenges that can slow operations, increase costs, and make it harder to compete. 

    That’s why more auto repair businesses are partnering with professional employer organizations (PEOs), such as Group Management Services (GMS), to handle the personnel and administrative aspects of the business. Here’s how PEO services help auto repair shops stay compliant, protect their teams, and focus on what they do best. 

    Addressing high turnover and staffing challenges 

    Finding and keeping skilled technicians is a constant struggle for auto repair shops. Turnover rates are often high, and the demand for experienced mechanics means competitors are always ready to hire your best people away. Seasonal fluctuations can also leave shops short-staffed during busy months. 

    GMS helps auto repair shops improve retention and recruitment by giving them access to comprehensive employee benefits typically only available to larger companies. From health insurance and dental coverage to retirement plans and voluntary benefits, shop owners can offer competitive packages that attract and retain qualified technicians. GMS also helps streamline onboarding, so new hires are trained, onboarded, and ready to work more quickly and confidently. 

    Reducing workers’ compensation costs and risk 

    Auto repair work isn’t without risk. Technicians work with heavy equipment, lift vehicles, and handle chemicals daily. Even a minor accident can result in costly workers’ compensation claims and higher insurance premiums. 

    GMS helps mitigate these risks by providing affordable workers’ compensation coverage combined with proactive risk management strategies. We work with shop owners to develop safety manuals, deliver safety training, and implement best safety practices to reduce accidents. And when injuries do occur, GMS helps manage claims efficiently, which helps control costs and keeps teams focused on serving customers rather than dealing with paperwork. 

    Staying compliant with changing regulations 

    Auto repair shop owners must navigate a complex web of federal, state, and local regulations, including wage and hour laws, Occupational Safety and Health Administration (OSHA) safety standards, and tax requirements. Missing a deadline or misclassifying an employee can result in expensive penalties or even legal action. 

    GMS offers dedicated HR and compliance support to help auto repair shops stay current and compliant. We assist with employee classification, maintain employee handbooks, and provide guidance on new regulations, so owners don’t have to track every change themselves. This level of support helps protect businesses from unexpected fines and legal issues. 

    Simplifying payroll and administrative work 

    Between serving customers, ordering parts, and managing repairs, shop owners rarely have time for payroll and other administrative tasks. Yet mistakes or missed deadlines can cause major headaches for both employees and owners. 

    With GMS, payroll becomes simple and reliable. Our team and technology processes payroll accurately and on time, handles tax filings, and manages deductions so owners don’t have to spend evenings buried in spreadsheets. By taking payroll off their plate, GMS gives shop owners more time to focus on quality service and growing the business. 

    Turning HR from reactive to strategic 

    Many auto repair businesses operate reactively when it comes to HR, responding to issues only when they arise. GMS helps shift HR from a reactive burden to a proactive strategy. We offer tools and support for performance management, employee development, and long-term workforce planning, empowering shop owners to build stronger teams and a healthier business culture. 

    The road ahead can be smoother with the right partner 

    Running an auto repair shop takes more than mechanical expertise. Success depends on your people, your processes, and your ability to navigate complex HR, payroll, and compliance requirements while still delivering excellent service to every customer who walks through your doors. 

    That’s where partnering with a PEO like GMS makes a real difference. By handling payroll, benefits administration, risk management, and regulatory compliance, GMS helps auto repair businesses shift from reacting to daily challenges to planning for long-term growth. Our support empowers owners to focus on what truly matters: building loyal teams, serving customers, and growing a reputation for quality and trust. 

    In a competitive industry where every hour counts, freeing your time and energy from administrative tasks isn’t just convenient. It’s a strategic move that strengthens your business and helps you stay ahead of the competition.

    If you’re ready to see how GMS can help your shop work smarter, safer, and more efficiently, contact us today! 

  • 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.