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  • In this blog, we will go over how to navigate Ohio’s new minimum wage law and what your business needs to know to stay compliant and competitive in 2025.

    The state minimum wage is scheduled to rise from $10.45 to $10.70 per hour on January 1, 2025, while the hourly rate for tipped employees will go from $5.25 to $5.35. This shift is driven by a 2006 constitutional amendment requiring automatic, inflation-based adjustments to the minimum wage. Although 25 cents might seem minimal, it can have real implications for your staffing costs, compensation structures, and overall compliance strategy.

    Let’s break down the core details of this new law and address key steps to ensure your business is ready.

    What’s Changing

    Non-tipped employees

    • 2024 rate: $10.45 per hour.
    • 2025 rate: $10.70 per hour.
    • Who it covers: Employees of businesses with annual gross receipts exceeding $394,000 per year (up from $385,000 in 2024).

    Tipped employees

    • 2024 rate: $5.25 per hour.
    • 2025 rate: $5.35 per hour.
    • Who it covers: Employees who customarily and regularly receive more than $30/month in tips. Employers can use a tip credit, provided the combined cash wage plus tips meets or exceeds $10.70/hour.

    Small businesses and younger workers

    • Small employers: If your business has annual gross receipts of $394,000 or less, you’ll follow the federal minimum wage of $7.25/hour.
    • 14- and 15-year-olds: Must also be paid at least $7.25/hour.

    These changes stem from Ohio’s constitutional amendment (II-34a), which links annual minimum wage increases to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). According to state data, the CPI-W increased by 2.4% from September 1, 2023, to August 31, 2024, which triggered the $10.70 and $5.35 rates for 2025.

    Who’s Impacted By The 25-Cent Hike

    On the surface, a quarter raise might not sound substantial – but it still makes a difference:

    Directly affected workers

    About 112,700 Ohioans earning below $10.70 will see an immediate pay increase.

    Indirectly affected workers

    Employers often adjust wages for staff making slightly above $10.70 to maintain equitable pay scales, potentially affecting another 200,000 employees.

    Tipped employees

    Roughly 97,700 tipped workers will be directly or indirectly impacted as the tipped rate jumps to $5.35/hour, plus any additional tip credit to reach the full minimum.

    For small to midsize businesses (SMBs), these increases can influence everything from your bottom line to your competitive standing in Ohio’s labor market. Think about how a modest wage increase might help you retain talent or attract new hires, given that surrounding states may have their own wage adjustments, or none at all.

    Why The Increase Matters

    Keeping pace with inflation

    Ohio is one of 20 states and D.C. that tie the minimum wage to inflation, aiming to preserve workers’ purchasing power. Prices have jumped by 22.7% in the past five years, though recent inflation rates have cooled to about 2.9%. This annual wage adjustment helps lower-income families cope with the rising cost of living.

    Impact on family incomes

    According to research, over 28% of Ohio families living below the federal poverty line will see a paycheck boost. It can be easy to underestimate how $0.25/hour adds up over a year, but for many low-wage workers, every cent counts, especially as they face rising housing, food, and transportation costs.

    Potential ripple effects

    Employees already earning slightly above $10.70 may expect a wage increase for fairness and morale. Failing to adjust could cause frustration or turnover. At the same time, these increases can strain payroll budgets if you haven’t planned ahead, highlighting the importance of forecasting labor costs well in advance.

    Key Compliance Steps

    1. Evaluate gross receipts

    Determine if your annual gross receipts exceed $394,000. If so, you must pay at least $10.70 (or $5.35 plus tips). If not, you’ll follow the federal rate of $7.25.

    1. Update your payroll systems

    Make sure any software or platform you use for employee wages is prepared to automatically update hourly rates come January 1, 2025.

    1. Adjust pay scales where needed

    Employees who earn just above $10.70 may expect an increase to maintain fairness. Review your internal pay structures or consult with an HR expert about how best to handle this.

    1. Revise tipped policies

    If you use the tip credit, confirm that tips plus the new $5.35/hour combine to meet or exceed $10.70/hour. Keep accurate tip records to meet regulatory standards and prevent disputes.

    1. Overtime obligations

    Remember, you must still pay time-and-a-half for hours exceeding 40 in any given week, unless you gross under $150,000 annually (Ohio’s threshold for certain overtime exemptions).

    How GMS Can Help

    Navigating wage hikes might sound straightforward – just pay the higher rate, right? But these changes often trigger a series of administrative hurdles, from updating payroll and revising tip policies to ensuring compliance for younger workers. That’s where Group Management Services (GMS) comes in:

    • Expert HR guidance: GMS stays on top of changing minimum wage laws, payroll regulations, and other employment mandates, so you don’t have to. We’ll help you figure out compliance and coach you on any next steps.
    • Integrated payroll solutions: GMS can help you avoid manual errors or outdated pay rates. Our payroll services adjust for new wage laws and maintain accurate records, so you can avoid penalties.
    • Employee classification and documentation: If you’re unsure whether an employee qualifies as a “tipped” worker or need assistance with documentation, GMS can provide clarity and guidance.

    When you partner with GMS, you gain a dedicated team that takes care of HR complexities, allowing you to focus on running your business. Contact GMS to streamline your payroll, ensure full compliance, and keep your business growing.

  • The SECURE Act 2.0 introduces significant changes in 2025 that will impact how employers manage retirement and benefits plans. These regulations aim to enhance retirement security and improve access to employer-sponsored retirement plans. Staying compliant with these changes is crucial for businesses to avoid penalties and ensure employees benefit from the new provisions.  

    Key Provisions Of The SECURE Act 2.0  

    Enhanced eligibility for part-time workers 

    Beginning in 2025, part-time employees who work at least 500 hours annually for two consecutive years will gain eligibility to participate in their employer’s 401(k) plan. This builds on the previous SECURE Act’s three-year requirement. Employers need to prepare by updating their tracking systems to identify eligible employees and ensuring enrollment processes are streamlined. 

    Automatic enrollment and escalation requirements 

    Newly established 401(k) and 403(b) plans must include automatic enrollment features. Employees will be automatically enrolled at a minimum contribution rate of 3%, with automatic annual increases of 1% until contributions reach at least 10%, but not more than 15%. Employers should review plan designs and payroll systems to ensure these requirements are met.

    Emergency savings accounts 

    The SECURE Act 2.0 introduces optional emergency savings accounts linked to retirement plans. These accounts allow employees to save up to $2,500 annually on a Roth basis, providing a tax-advantaged way to address financial emergencies. Employers interested in offering these accounts must work with plan administrators to integrate them into their benefits packages. 

    Increased catch-up contributions 

    For employees aged 60 to 63, the catch-up contribution limit for 401(k) plans will increase to the greater of $10,000 or 150% of the standard catch-up contribution limit for that year. Employers must ensure payroll systems and retirement plan documents reflect these updated limits. 

    Student loan repayment matching contributions 

    Employers can now make matching contributions to 401(k) or 403(b) plans based on an employee’s qualified student loan payments. This provision incentivizes retirement savings while helping employees pay off student debt. Employers should consider whether this feature aligns with their benefits strategy and work with plan administrators to implement it. 

    How GMS Can Help Your Business Stay Compliant 

    Navigating these complex changes can be overwhelming, especially for small and midsize businesses. Group Management Services (GMS) provides the tools and expertise to help employers stay ahead: 

    • Compliance guidance: Our team monitors legislative changes to ensure your business complies with all SECURE Act 2.0 regulations. We help update plan documents, adjust eligibility criteria, and align payroll systems with the new requirements. 
    • Plan design and administration: We work with your business to design a retirement plan that meets regulatory standards and your employees’ needs. Our experts can also coordinate with plan administrators to integrate new features, such as emergency savings accounts and student loan repayment matching. 
    • Employee education and enrollment support: Educating employees about their retirement options is critical for participation. GMS provides resources to help employees understand new features and make informed decisions about their financial future. 
    • Payroll integration: GMS simplifies payroll integration for features like automatic enrollment, increased catch-up contributions, and eligibility tracking for part-time workers. Our comprehensive payroll solutions ensure a seamless transition to compliance. 

    Preparing For 2025 

    The 2025 changes under the SECURE Act 2.0 emphasize the need for proactive planning and compliance. Employers who act now can not only avoid penalties but also enhance their benefits offerings to attract and retain top talent. Partnering with GMS ensures your business is equipped to manage these regulatory changes with ease.  

    Contact GMS today to learn how we can help your business meet the requirements of the SECURE Act 2.0 and beyond. 

  • Stay calm, stay compliant, and stay ready: Your step-by-step guide to handling OSHA inspections with confidence. 

    Don’t panic if you find an Occupational Safety and Health Administration (OSHA) inspector at your door. While unannounced inspections can be stressful, you’re not powerless. You’ve learned what triggers an inspection and how to prepare beforehand in the first two parts of this series. Now, we’ll focus on how to navigate the inspection process itself. By following the right steps, you can maintain a professional and compliant environment that keeps your employees and business protected. 

    Know Your Rights Before The Inspection Begins 

    When an OSHA compliance officer arrives, it’s important to know what you can and can’t do. For instance, you have the right to request the officer’s credentials, ask why they’re at your workplace, and determine the scope of the inspection. If the inspection results from an employee complaint, you can ask to see a copy of that complaint. Having a solid grasp of your rights helps ensure a fair and focused review of your operations. 

    Be Polite And Professional 

    First impressions matter. Greet the OSHA officer politely and guide them to a comfortable waiting area while you notify your designated representative, whether it’s your facility manager, HR director, or safety officer, of their arrival. Don’t keep the inspector waiting unnecessarily. A courteous, respectful demeanor can set a constructive tone for the entire visit. 

    Control The Flow Of Information 

    While you should always answer questions truthfully, there’s no need to volunteer extra details. Respond directly to what the inspector asks without straying into unrelated territory. If the inspector requests specific documents (such as hazard communication programs, training logs, or incident reports), provide them promptly but do not overshare. Keep in mind that clarity and honesty go a long way, but unnecessary details can create confusion or additional scrutiny. 

    Limit The Scope Of The Inspection 

    You’re not required to give the inspector free rein of your entire facility. By designating a careful route and shutting down irrelevant operations, you can help focus the inspection on the area of concern. This approach keeps the inspector’s attention on key points and helps prevent them from wandering into unrelated areas where they might identify new issues. Just remember to remain cooperative and professional. 

    Be Prepared To Address Safety Hazards Immediately 

    If the inspector points out an obvious, easily correctable hazard during the walkaround, like a missing guardrail or improperly stored chemicals, fix it right away. Prompt remediation shows good faith and your commitment to safety and compliance. More complex issues may require additional time, but addressing simple fixes on the spot demonstrates responsiveness and can help mitigate potential penalties. 

    Accompany The Inspector Every Step Of The Way 

    Ensure that your designated representative, such as a supervisor or a Safety Manager, stays with the inspector during the walkaround. Take notes, snap your own photos, and record any measurements so you have the same records the inspector does. If employees are interviewed, managerial staff usually have the right to have an attorney present during managerial interviews. For non-managerial employees, however, the inspector may conduct interviews privately. 

    Stay Calm During The Closing Conference 

    At the end of the inspection, the OSHA officer will hold a closing conference to discuss any potential violations or concerns. This isn’t the time to argue aggressively or admit fault; remain calm, polite, and take notes. You’ll have opportunities later to contest citations if you believe they’re unjustified. If a simple correction can be made on the spot, do it. If not, outline a plan to address the issue thoroughly once you’ve had time to review all the details. 

    Follow Up After The Inspection

    Once the inspector leaves, meet with your team to debrief. Talk to any employees who were interviewed and review the inspector’s areas of focus. Use these insights to improve your safety culture, address any identified hazards, and review any compliance weaknesses. If OSHA issues citations, you have the right to contest them. Consider consulting with an attorney if you need help navigating the appeals process. 

    How GMS Can Help During And After An OSHA Inspection

    Navigating an OSHA inspection is easier when you have the right support. At Group Management Services (GMS), we have experienced HR professionals and compliance experts who can help your business take a proactive, organized approach: 

    • OSHA inspection and citation assistance: We support clients through OSHA investigations and the management/mitigation of OSHA citations. 
    • Policy and procedure guidance: We’ll ensure you have clear, accessible safety policies in place before inspectors arrive. 
    • Training and documentation support: GMS can help you maintain up-to-date safety training records, incident logs, and hazard assessments, making it easier to respond quickly and accurately to requests for documentation. 

    By partnering with GMS, you gain a knowledgeable ally who can help streamline your HR functions and create a safer, more compliant work environment. We handle HR and risk management, so you confidently run your business, even when OSHA comes knocking on your door. 

    Ready to make OSHA inspections less daunting? Contact GMS today to learn how our comprehensive services can support your compliance efforts and help ensure smooth inspections. 

  • As we move into 2025, businesses across the U.S. face changing minimum wage requirements, with 23 states and Washington, D.C., implementing increases. Inflation adjustments, pre-scheduled state laws, and voter-approved initiatives primarily drive these changes. Here’s a comprehensive overview of the updates and what they mean for employers. 

    The Federal Minimum Wage 

    The federal minimum wage remains $7.25 per hour. While this serves as a baseline, 30 states and Washington, D.C., set higher minimum wages, often tying increases to inflation or cost-of-living adjustments. However, 20 states still default to the federal rate, emphasizing the disparity in wage standards across the country. 

    State-by-State Updates For 2025 

    • Significant increases: States such as Michigan will see substantial increases due to legal rulings and voter measures. Michigan’s wage will rise from $10.56 to $12.48 in February of 2025, reflecting a 20% jump. 
    • Modest adjustments: States like Montana and Ohio will experience smaller increases of $0.25, with rates reaching $10.55 and $10.70, respectively. 
    • Top rates: Washington State leads with a minimum wage of $16.66, followed by California at $16.50 and Connecticut at $16.35. Washington, D.C., is expected to raise its already high rate of $17.50 based on cost-of-living adjustments midyear. 
    • Regional variations: States like Oregon and New York apply regional minimum wages, creating differing rates within state boundaries. For example, in Oregon, wages range from $13.70 in rural areas to $15.95 in the Portland metro area. 

    These updates highlight the growing complexity of minimum wage compliance, especially for businesses operating across multiple states. 

    Challenges For Remote And Multistate Teams 

    The rise of remote work adds another layer of complexity. Employers must account for the minimum wage laws in the state where each remote worker resides, even if the business operates elsewhere. For instance, a company headquartered in a federal minimum wage state may need to comply with California’s $16.50 rate for its remote employees. 

    Implications For Employers 

    • Payroll adjustments: Employers must update payroll systems to reflect the new rates and ensure timely compliance. 
    • Budgeting: Wage increases may impact labor costs, requiring adjustments in pricing strategies or workforce planning. 
    • Compliance risks: Noncompliance can lead to legal and financial penalties, particularly in states with rigorous enforcement mechanisms. 

    How GMS Can Help 

    Navigating minimum wage changes and maintaining compliance is a significant challenge, particularly for businesses managing remote teams or operating in multiple states. Group Management Services (GMS) offers comprehensive payroll and HR solutions, helping businesses: 

    • Track and implement state-specific wage changes: Our tools ensure your payroll remains compliant, no matter where your employees are located. 
    • Streamline multistate compliance: We simplify managing wage laws across jurisdictions, minimizing administrative burdens. 
    • Enhance workforce planning: Our expert advisors assist in budgeting for wage increases and optimizing labor costs. 

    By staying informed and partnering with experts like GMS, your business can adapt to these changes efficiently, ensuring compliance and protecting your bottom line. 

  • Illinois employers with 15 or more employees will soon be required to openly share pay scales and benefits in job postings.

    On January 1, 2025, amendments to Illinois’ Equal Pay Act of 2003 will take effect, placing new responsibilities on employers and employment agencies operating in the state. These changes are part of a broader push toward wage transparency and fairness, and they will impact how businesses recruit, retain, and compensate their workforce. In addition to pay scale and benefits disclosure, the law also strengthens recordkeeping requirements and outlines a new process for dealing with complaints.

    Whether you’re a small local business or a larger multi-state operation, these new rules represent a shift in how you communicate with potential hires and engage with current employees. Let’s break down the key points.

    A Closer Look At The New Requirements

    Mandatory pay transparency in job postings

    For employers with 15 or more employees, pay scales and benefits must be included in all specific job postings. This could be a wage or salary range, along with details about benefits like bonuses, stock options, health coverage, and other forms of compensation. Employers can reference a pay scale set by market data, internal pay ranges, or a previously established budget for the position.

    Promotion postings for internal candidates

    The law also requires employers to announce promotion opportunities internally no later than 14 days after making an external job posting. By doing so, the state aims to encourage fair, equitable access to advancement within organizations.

    Recordkeeping obligations

    Employers must maintain documentation on wages, job postings, and associated pay scales and benefits for five years. This ensures that if questions arise (from employees or regulators) you’ll have the records to show you’ve followed the rules.

    Complaint and enforcement mechanisms

    Employees, and in some cases job applicants, can file complaints if they believe there’s been a violation of the Equal Pay Act or the new requirements. The Illinois Department of Labor (IDOL) can investigate, and if it finds violations, issue penalties. These fines can escalate up to $10,000 for repeated offenses.

    Why These Changes Matter

    Promoting trust and fairness

    Transparency around pay and benefits can build trust with both current employees and potential hires. It sends a clear signal that:

    • You value fairness
    • You have nothing to hide
    • You’re committed to creating a level playing field

    This sort of openness can translate into better employee morale, stronger retention, and a more attractive employer brand.

    Staying ahead of regulatory trends

    Illinois is not alone in pursuing pay transparency measures. Many states and jurisdictions are adopting similar requirements. Being proactive in Illinois may give you a head start if you operate or expand into other states with comparable laws. Beyond pure compliance, embracing transparency now shows that you’re on the cutting edge of best practices in HR and compensation management.

    Avoiding financial risks

    Non-compliance could result in significant penalties. Beyond that, there’s also the potential reputational damage. Employees and job candidates can easily learn about infractions that appear in public records. Being proactive helps shield you from such setbacks.

    Practical Steps To Prepare

    1. Review and update pay scales

    If you haven’t established formal pay scales or if your current ranges are outdated, now’s the time to get organized. Set clear criteria for determining pay ranges-consider market data, industry standards, and geographic factors. Document these criteria and ensure consistency.

    1. Examine your benefits offerings

    The new law requires not just pay information, but also a “general description” of the benefits and other compensation offered for each position. Make sure you can clearly articulate what you provide, such as:

    • Health insurance options
    • Retirement plans
    • Bonuses
    • Paid time off (PTO)
    • Other perks

    Have a system to keep this information current as offerings evolve.

    1. Adjust your job posting processes:

    Build compliance into your recruitment workflow. Before posting a job, confirm that the pay scale and benefits information is accurate and up to date. If you work with a third-party recruiter or job board, ensure they have the necessary details.

    1. Strengthen your recordkeeping:

    of all job postings, pay ranges, benefits information, and employee wage data. Since you’ll need to retain this documentation for at least five years, consider implementing a reliable HR information system (HRIS) or leveraging an external partner to streamline these tasks.

    Looking Ahead

    As we approach January 1, 2025, the clock is ticking for Illinois employers to adapt. Navigating the new Illinois pay transparency requirements can feel overwhelming, especially when you’re already juggling countless HR responsibilities. That’s where Group Management Services (GMS) comes in. When you partner with GMS you get:

    • Compliance guidance: We can help clarify the new Illinois requirements and show you how they fit into your current HR strategy.
    • Efficient recordkeeping: We’ll help implement systems that keep all the necessary information at your fingertips, reducing stress when it’s time to prove compliance.
    • Training and support: Need help educating your team or ensuring that your posting and promotion processes meet the new rules? GMS can provide the resources, tips, and best practices you need to ensure everything is aligned.
    • Integrated payroll and benefits administration: GMS integrates payroll and benefits into a cohesive system. This integration ensures accurate pay data, easy updates to employee compensation, and clear, accessible benefits information for current and prospective employees.

    Ready to prepare your business for Illinois’ upcoming law changes? Contact GMS today to learn how we can help you stay compliant and thrive in an evolving regulatory landscape.

     

     

  • Don’t wait until it’s too late. Take action now to ensure your workplace is prepared for OSHA inspections before they arrive.

    Workplace safety isn’t something that should be addressed only when an inspection is at your door. Being proactive is key to preventing violations and ensuring the well-being of your employees. In the first part of this series, we explored what triggers Occupational Safety and Health Administration (OSHA) inspections. Now, we’ll shift our focus to practical steps you can take to prepare well ahead of time, so that when an inspection occurs, you’re ready to face it with confidence rather than concern.

    Why Preparation Matters

    Just as you’d service machinery before it breaks down, it’s vital to address safety and compliance before OSHA comes knocking. Proactive preparation can help:

    • Prevent financial setbacks: Early improvements may cost less than hefty fines and emergency fixes.
    • Ensure employee well-being: A safer environment reduces the likelihood of serious injuries or fatalities.
    • Enhance workplace culture: A proactive approach builds trust and shows employees that their safety matters.

    Build A Safety-First Culture

    A positive safety culture is the foundation of any successful preparation plan. When everyone from top management to entry-level employees understands their role in maintaining a safe environment, compliance becomes second nature. Encourage open dialogue about safety issues, hold regular ‘toolbox talks’, and celebrate examples of conscientious behavior. The goal? To make safety part of your company’s identity, not just a line item on a checklist.

    Conduct Thorough Safety Audits

    If you’ve never conducted a comprehensive safety audit, now is the time. Systematically review your facilities, equipment, and workflows to identify any hazards or compliance gaps. Pay special attention to areas that frequently trigger inspection, like fall protection, machine guarding, and hazardous material handling. Consider bringing in third-party experts if necessary. These professionals can spot overlooked risks, offer practical solutions, and help ensure you meet OSHA standards.

    Develop Clear Policies And Procedures

    If your employees don’t know what’s expected of them, they’re more likely to take shortcuts or unknowingly violate safety standards. To avoid this, make sure to:

    • Draft and update safety policies: Keep documentation in plain language so everyone understands it.
    • Post guidelines prominently: Place safety reminders and protocols in high-visibility areas, such as break rooms and job sites.
    • Establish reporting channels: Make it easy for employees to report hazards or concerns without fear of backlash.

    By putting strong policies in place, you create a roadmap that guides everyone toward safer work habits and ensures that no one’s left guessing what the rules are.

    Prioritize Training And Communication

    Even the best policies won’t help if employees aren’t aware of them or don’t know how to apply them in real-world scenarios. To ensure that employees are aware of your company’s safety protocols, consider utilizing:

    • Onboarding sessions: Introduce new hires to your safety culture and outline their responsibilities from the start.
    • Hands-on workshops: Practical training helps employees recognize hazards and use protective equipment correctly.
    • Refreshers and updates: Industries evolve, and so do regulations. Stay compliant by hosting regular retraining sessions to align with evolving regulations.

    Regular communication keeps safety top-of-mind. Consider monthly newsletters, safety bulletins, or short videos highlighting new techniques or reminders. The more accessible and engaging your training materials, the better your employees will retain and apply them.

    Keep Meticulous Records

    From injury logs to training certifications, can make or break your compliance efforts. If an inspector arrives, well-organized records show that you’ve been diligent. These records include:

    • Accident and incident reports: Promptly record any workplace injuries, near-misses, or other safety-related events.
    • Training verification: Maintain a record of all completed training sessions, who attended, and when.
    • Equipment maintenance logs: Show that machinery and safety equipment are regularly inspected and maintained.
    • Hazard assessments: Keep a written record of identified risks and the steps taken to address them.

    Good recordkeeping not only helps you during an inspection; it also supports continuous improvement. By reviewing past incidents and training outcomes, you can identify trends, refine your policies, and make targeted changes that reinforce workplace safety over time.

    Conduct Mock Inspections

    Don’t wait until an OSHA representative is actually on-site to find out where you’re falling short. Conducting mock inspections, either internally or with outside consultants, helps you see your operation through the eyes of an inspector. Walk through your facility, check for compliance with known OSHA standards, and evaluate how well employees follow safety protocols. Mock inspections can:

    • Highlight weaknesses: Identify issues before they escalate into violations.
    • Improve response time: Familiarize your team with what to expect, so they remain calm and cooperative during a real inspection.
    • Build confidence: By knowing you’ve addressed potential pitfalls, you can approach a real inspection with assurance.

    Partnering With GMS For A Proactive Approach

    Staying ahead of OSHA compliance can feel overwhelming when you’re already managing day-to-day operations. That’s where Group Management Services (GMS) can step in. Our experts can help your business:

    • Conduct audits and gap analyses: We’ll identify areas where you may be at risk before an inspector does.
    • Refine training programs: Gain access to resources that keep your team informed and prepared.
    • Support recordkeeping and documentation: We’ll help ensure your paperwork is in order and easy to reference.

    By partnering with GMS, you’re not just preparing for an inspection, you’re cultivating a robust, ongoing approach to safety. This proactive stance empowers your workforce, strengthens your compliance efforts, and sets you and your business up for long-term success.

    Contact GMS today to learn more about how we can support you in preparing for and preventing OSHA inspections. Click here to continue reading how to handle OSHA when they finally come to inspect your workplace.

  • The U.S. Department of Labor (DOL) has announced a proposed rule to phase out the distribution of certificates that allow employers to pay certain workers with disabilities less than the federal minimum wage of $7.25 per hour. The rule proposes to gradually eliminate certificates that employers can apply for under Section 14(c) of the Fair Labor Standards Act (FLSA), which allows them to pay subminimum wages to certain workers with disabilities. For nearly a century, it has been legal in the U.S. to pay some individuals with disabilities below the minimum wage. Currently, about 40,000 American workers fall into this category, with some earning as little as 5 cents an hour. 

    Key Details Of The Proposal 

    • Phase-out timeline: If adopted, new 14(c) certifications will no longer be issued. Existing programs will be phased out over three years starting from the final rule’s effective date. 
    • Legal and political challenges: The proposal must navigate public commentary, possible legal hurdles, and political opposition before becoming finalized. 
    • Economic and workplace impacts: Employers and advocacy groups have debated the implications, with some fearing fewer opportunities for workers with disabilities and others emphasizing the need for equity in the workplace. 

    What’s Next? 

    The DOL is currently seeking public feedback on the proposal. Employers should monitor these developments closely to prepare for potential regulatory changes. If finalized, businesses employing workers under 14(c) must reevaluate their wage practices and compliance strategies. 

    How GMS Can Help 

    Navigating evolving employment regulations can be challenging. Group Management Services (GMS) specializes in helping businesses stay compliant with labor laws, including wage and hour rules. From workforce management to payroll processing and compliance guidance, GMS provides the expertise and tools you need to adapt to regulatory changes while supporting your employees. Contact us today to learn how we can help your business stay compliant. 

  • Human resources (HR) crises can strike at any time, from natural disasters and public health emergencies to workplace disputes and regulatory violations. The consequences of being unprepared can be severe, impacting employee well-being, company reputation, and financial stability. Therefore, both employers and employees benefit significantly when organizations prioritize HR crisis readiness. 

    Why Crisis Readiness Matters For Employers 

    For employers, HR crisis preparedness is about safeguarding the business and ensuring compliance with relevant laws. Key federal regulations such as the Occupational Safety and Health Administration (OSHA) require organizations to maintain safe workplaces, and violations during emergencies can lead to legal repercussions. Similarly, laws such as the Family and Medical Leave Act (FMLA) might require adjustments during crises, emphasizing the need for clear policies and procedures. 

    Beyond compliance, having a robust crisis management plan ensures that business operations can continue with minimal disruption. Effective planning reduces the risk of lost revenue, reputational damage, and long-term fallout from poorly managed incidents. Research also shows that proactive crisis response can strengthen organizational resilience, demonstrating leadership and accountability when it matters most. 

    Why Crisis Readiness Matters For Employees 

    For employees, HR crisis readiness translates into confidence that their employer prioritizes their safety, health, and job security. Clear communication during crises, such as explaining emergency protocols or providing updates on company responses, fosters trust and reduces workplace anxiety. When employees feel supported, their morale and productivity are less likely to suffer, even under challenging circumstances. 

    Employees are also protected by various state and federal regulations during crises. For instance, workers impacted by emergencies may be entitled to leave under the FMLA or state-specific sick leave laws. Employers must be vigilant about these rights to avoid legal pitfalls and ensure fair treatment. 

    Building A Crisis-Ready Organization 

    An effective crisis response begins long before an emergency arises. Organizations must proactively build frameworks that anticipate potential risks and address vulnerabilities. Here’s how to create a resilient, crisis-ready workplace: 

    Proactively preparing your organization for challenges 

    Crisis management starts with thorough preparation. Begin by identifying potential threats, whether natural disasters, cybersecurity breaches, or public relations issues. A crisis management plan and a business continuity plan are crucial tools for mapping out response strategies. Training employees in their roles during emergencies can significantly enhance response efficiency and reduce confusion during critical moments. Regularly updating these plans ensures they stay aligned with emerging risks and regulatory changes. 

    Investing in employee training and resources 

    HR departments play a pivotal role in ensuring all team members are well-equipped to handle crises. From cross-training employees for flexibility to providing leadership development focused on crisis scenarios, education is essential for preparedness. Additionally, implementing tools like human resource information systems (HRIS) can help track employee skills, making it easier to mobilize resources effectively during a crisis. 

    Establishing clear communication channels 

    Communication breakdowns can amplify a crisis. Organizations should establish systems to disseminate timely, accurate, and consistent updates. According to experts, having well-defined communication protocols reduces uncertainty and helps maintain trust with employees and stakeholders. 

    Building a culture of agility and adaptability 

    The best crisis management strategies acknowledge the unpredictable nature of emergencies. Organizations that cultivate a culture of flexibility, empowering employees to make decisions and swiftly adapt plans, can navigate crises more effectively. Regular simulations and post-crisis evaluations further enhance organizational agility. 

    Leveraging technology and data 

    Making decisions based on data is crucial during a crisis. Use predictive analytics to spot early warning signs and manage risks. For instance, monitoring employee absenteeism trends can highlight potential issues that need quick action. Incorporating technology into your crisis management plan can simplify processes and enhance response times. 

    Legal considerations 

    Employers must remain vigilant about legal obligations during crises. Labor laws, health and safety regulations, and emergency leave policies must all be adhered to. Staying informed about local and federal compliance requirements can protect businesses from potential legal liabilities. 

    The Role Of GMS In HR Crisis Management 

    At Group Management Services (GMS), we understand the complexities of managing crises. Our HR solutions help businesses streamline administrative processes and ensure compliance. From creating custom crisis management plans to handling administrative tasks, we take on the heavy lifting so you can focus on leading your organization. With GMS as your partner, you can take back your time and maintain control over your business, knowing you have a reliable support system by your side. 

    By building a crisis-ready organization, businesses can safeguard their operations, employees, and reputations while positioning themselves for long-term success. Contact us today, and let us help you prepare for the unexpected. 

  • Workplace safety is not something that businesses can afford to cut corners on, and that isn’t a figure of speech. A single penalty from the Occupational Safety and Health Administration (OSHA) can cost your company anywhere between $16,131 and $161,323. The federal organization even hosts a website where you can see every case with initial penalties of $40,000 and higher, and the list of companies affected across all 50 states is extensive.

    Understanding what causes an OSHA inspection is crucial to helping your company avoid devastating financial setbacks. This blog marks the first in a three-part series on OSHA inspections. In this segment, we’ll explore the common events and conditions that can prompt an inspection and why being informed is the first step toward maintaining compliance.

    Why OSHA Conducts Inspections

    In 1970, the Occupational Safety and Health Act (OSH Act) of 1970 was enacted to ensure employers provide safe and healthy working conditions for their employees. Their purpose is to enforce standards and prevent recognized hazards in the workplace. Normally, OSHA demonstrates this by conducting random inspections in the search for violations. However, that’s not always the case. Many of these inspections can be triggered by specific events, conditions, or reports. By understanding these triggers, employers can identify potential risks and act before an inspector arrives.

    Key Triggers For OSHA Inspections

    1. Imminent danger situations

    Workplace hazards that pose an immediate risk of death or severe physical harm are a top priority for OSHA. Examples include unguarded machinery, chemical spills, or significant fall risks. If OSHA suspects imminent danger, either through tips or observations, an inspection may occur within 24 hours.

    1. Severe injuries or fatalities

    Under OSHA regulations, employers must report workplace fatalities within eight hours and severe injuries (hospitalizations, amputations, or eye loss) within 24 hours. These reports often trigger inspections to determine the root cause and assess compliance with safety standards.

    1. Employee complaints

    Employees can file anonymous complaints if they believe their workplace has serious safety violations. OSHA gives significant weight to these complaints, especially if they detail hazards that could result in severe injury or death.

    1. Referrals

    Referrals often originate from other government agencies, law enforcement, or even media reports. For example, Straus Feeds LLC was investigated after OSHA received reports of unsafe working conditions. After the inspection, the company was cited for 24 violations, leading to penalties totaling $161,332.

    1. Programmed inspections

    Certain industries, such as construction, manufacturing, and health care, are deemed high-risk by OSHA. These sectors often face programmed inspections due to their higher injury and illness rates.

    1. Follow-up inspections

    If your company was cited during a prior inspection, OSHA may conduct a follow-up to ensure that violations have been corrected. Failure to address citations can result in heightened scrutiny and increased penalties.

    Staying Ahead Of OSHA Inspections

    OSHA averages over 32,000 inspections a year and your business could be one of them. While OSHA inspections can’t always be avoided, understanding what causes them gives organizations the opportunity to proactively address risks. Continue reading here to learn more about the actionable steps you can take to prepare ahead of time. 

    Partnering With GMS

    Navigating OSHA compliance and inspections doesn’t have to be overwhelming. Group Management Services (GMS) offers tailored solutions to help your business stay compliant, reduce risks, and cultivate a safe culture. Whether it’s safety training, recordkeeping, or audits, our experts are here to help you safeguard your workplace and stay prepared for any OSHA visit.

    Contact GMS today to learn how we can help your organization succeed in workplace safety and compliance. 

  • Maintaining records may not be the most glamorous part of running a business, but it is undeniably one of the most important. Without an effective records management system, businesses risk costly consequences, such as non-compliance fines, operational inefficiencies, or lost time spent tracking down essential documents. As regulatory requirements evolve and compliance becomes increasingly complex, adopting modern, efficient record-keeping solutions is more critical than ever. 

    The Regulatory Landscape 

    Businesses today face a patchwork of record-keeping requirements at the federal, state, and local levels. Here’s a quick overview of just how much employers need to juggle: 

    • Fair Labor Standards Act (FLSA) violations remain a significant source of fines. In FY2023, the U.S. Department of Labor recovered $274 million in back wages, with compliance efforts intensifying into 2025. 
    • IRS penalties for late payroll tax deposits can reach 10% of unpaid taxes if overdue by more than 15 days. Misclassification of workers as independent contractors are also a growing compliance issue, potentially leading to significant fines. 
    • OSHA mandates the retention of certain medical and safety-related records. Employers must keep records of work-related injuries and illnesses for at least five years following the end of the calendar year that the records cover. 
    • IRS guidelines call for tax records to be preserved for a minimum of seven years, depending on the document type. 

    Recordkeeping errors and omissions pose an additional challenge, especially with the Department of Labor and IRS implementing stricter audit protocols. Companies face fines or even litigation for noncompliance with federal and state regulations. Failing to meet these standards can result in hefty penalties, lawsuits, or even reputational damage. For example, in 2023, multiple businesses were fined tens of thousands of dollars for incomplete or missing employee records during routine Department of Labor audits. 

    Employers are increasingly turning to comprehensive HR and payroll software to streamline compliance. Such tools help businesses stay updated on state-specific regulations, automate records retention, and ensure timely reporting during audits.  

    Why Records Management Matters 

    Improved compliance and risk reduction 

    Inadequate record-keeping leaves employers vulnerable to regulatory audits and legal disputes. Proper systems ensure businesses have the right documentation readily available to demonstrate compliance with laws like the FLSA, the Affordable Care Act, and tax regulations. 

    Operational efficiency 

    According to Gartner, on average, four weeks are lost each year, waiting on misfiled, mislabeled, untracked, or lost documents. That’s time businesses can’t afford to waste, especially in small and midsize companies where resources are limited. Digital systems streamline retrieval, reduce filing errors, and automate data organization. 

    Data security 

    Safeguarding sensitive employee and financial information is non-negotiable in 2025. With the rise in cybersecurity threats, digital records management platforms with encryption and secure access protocols offer peace of mind and ensure that sensitive data doesn’t fall into the wrong hands. 

    The Shift To Digitization 

    Recognizing the inefficiencies of paper-based systems, organizations are moving towards digitization. The federal government has already embraced this transformation, with agencies like the National Archives and Records Administration (NARA) transitioning to fully electronic records management. For businesses, digitization means: 

    • Automation of record retention and disposal: Tools that automatically schedule records for deletion after their retention period reduce clutter and ensure compliance with laws requiring timely disposal. 
    • Centralized data management: Instead of searching through scattered filing cabinets or fragmented software systems, digital platforms allow businesses to consolidate records in one secure, accessible location. 
    • Cost savings: While transitioning to a digital system may involve upfront costs, businesses save significantly in the long run through reduced storage, retrieval, and administrative expenses. 

    Why This Matters For Employees 

    Employees also benefit from proper records management. Accurate payroll records ensure timely and accurate paychecks. Access to well-maintained personnel files can help resolve disputes, verify employment for loans or housing, and provide clear records of benefits and leave balances. Efficient systems create a smoother, more transparent workplace for everyone. 

    How GMS Can Help 

    At Group Management Services (GMS), we understand how challenging it is to navigate the complexities of record-keeping. Our technology simplifies record management by consolidating all your data into one secure platform. Our systems keep you updated on state and federal compliance requirements, automate document retention schedules, and make accessing critical records effortless. 

    With GMS, you’ll save time, reduce risk, and protect your bottom line—so you can focus on growing your business instead of worrying about audits or misplaced files. Contact us today to learn how our solutions can transform your records management strategy.