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  • Employers must stay ahead of evolving employment laws to ensure compliance and adaptability. One of the latest regulations impacting employers is Los Angeles County’s Fair Chance Ordinance (FCO). The ordinance, which took effect on September 3rd, introduces strict rules for criminal background checks that are more stringent than those at the state or city level. Compliance with these rules is essential, as failure to do so can result in significant penalties. 

    What Is The Fair Chance Ordinance? 

    The FCO applies to employers located in or doing business in the unincorporated areas of Los Angeles County. If your business employs five or more workers, including temporary staff, contractors, or freelancers, and operates within these areas, you are subject to the FCO’s rules. This ordinance aims to provide opportunities for individuals with criminal histories by regulating how employers handle job postings, offer letters, and hiring procedures. 

    Key Requirements For Employers 

    Employers subject to the FCO must make several changes to their hiring and employment practices, including: 

    • Job postings: Employers cannot discourage candidates with a criminal history from applying. Instead, they must explicitly state that applicants with arrest or conviction records will be considered, in compliance with both the FCO and California’s Fair Chance Act (FCA). Additionally, employers must list any specific laws or regulations that may prevent them from hiring individuals with a criminal background. 
    • Offer letters: Employers are prohibited from asking about criminal histories until a conditional offer of employment has been made. If a background check is required, the offer letter must outline all the background checks that will be conducted, such as education, employment history, or social media activity. 
    • Consideration of criminal history: The FCO prohibits employers from inquiring about specific types of criminal records, including arrests not followed by conviction, sealed or expunged convictions, and convictions that are more than seven years old. Any adverse action based on criminal history must involve an individualized assessment and proper notification to the applicant. 
    • Adverse actions: If you intend to take an adverse action based on criminal history, you must provide the applicant with a written assessment of how their criminal record relates to the job. You must also give the candidate time to respond to this preliminary decision before finalizing any adverse action. 

    Penalties For Non-Compliance 

    The consequences for failing to comply with the FCO are severe. Fines range from $5,000 for the first violation to $20,000 for subsequent violations, and these penalties are assessed per violation. Beyond fines, the county’s Department of Consumer and Business Affairs may recommend the suspension or revocation of your business license. Additionally, employees can file complaints with both the county and the California Civil Rights Department if they believe their rights have been violated. 

    How GMS Can Help You Navigate Compliance 

    Navigating the complexities of the FCO can be overwhelming, especially when you consider that regulations vary across California’s different regions. Fortunately, GMS is here to support your business. Our HR and compliance experts, particularly those familiar with the Los Angeles area, are well-versed in local, state, and federal laws. We offer comprehensive services to ensure your hiring processes and policies fully comply with the FCO and other relevant regulations. 

    Here’s how GMS can help: 

    • Policy reviews and updates: We can audit your current hiring practices, job postings, offer letters, and record retention policies to ensure they meet FCO requirements. 
    • Custom compliance solutions: Whether you need to update your background check procedures or implement proper documentation for individualized assessments, our experts can help you create tailored solutions that align with the FCO’s rules. 
    • Training and education: GMS offers training programs for your HR team to stay informed about the latest legal requirements, including how to handle criminal background checks under the FCO and FCA. 
    • Ongoing support: As new laws and regulations are introduced, GMS will keep you updated and ensure your policies are always current and compliant. 

    Stay Ahead Of Changing Regulations With GMS 

    Los Angeles County’s Fair Chance Ordinance is just one example of how rapidly employment laws can change. To avoid costly fines and protect your business, it’s essential to stay proactive. At GMS, we provide the expertise and resources needed to help businesses comply with complex regulations, so you can focus on what matters most; running your company. Contact our team today to learn more about how we can assist you! 

  • In February 2024, the U.S. Occupational Safety and Health Administration (OSHA) conducted an investigation on Strauss Feeds LLC, an animal feed manufacturer based in Watertown, Wisconsin. This investigation, prompted by reports of unsafe working conditions, revealed significant workplace safety hazards that put employees at risk. As a result, OSHA issued multiple citations and imposed penalties on the company, highlighting the need for immediate corrective action. 

    Incident Details 

    The OSHA inspection uncovered various safety issues at Strauss Feeds LLC, particularly related to dust hazards and respiratory risks. OSHA cited the company for 19 “serious” violations and five “other-than-serious” violations, leading to proposed penalties totaling $161,332. The violations stem from inadequate housekeeping practices, a failure to evaluate spaces for dust-related hazards, and a lack of engineering controls to manage combustible and airborne dust. 

    These conditions created a serious risk of explosion and fire, potentially endangering the plant’s workers. In addition to these hazards, OSHA found that Strauss Feeds had not developed a proper respiratory protection program, further increasing the health risks faced by employees due to inhalation of harmful dust particles. 

    OSHA’s Actions 

    In response to these findings, OSHA gave Strauss Feeds 15 business days to either contest the citations and proposed penalties or comply by addressing the violations. The company is now faced with the task of implementing necessary safety measures to prevent future accidents from occurring and protect its workforce from hazardous conditions. 

    Violations Identified 

    Among the key violations identified by OSHA are the following: 

    • Poor housekeeping practices that led to an accumulation of combustible dust. 
    • Failure to assess work areas for dust-related hazards. 
    • Lack of engineering controls to minimize dust buildup and exposure. 
    • Absence of a written respiratory protection program, endangering employees exposed to airborne contaminants. 

    These issues, left unaddressed, significantly increase the likelihood of fire, explosion, and respiratory illnesses, emphasizing the importance of workplace safety and compliance with OSHA standards. 

    Protect Your Business With GMS 

    The safety violations at Strauss Feeds LLC serve as a stark reminder of the dangers posed by inadequate workplace safety measures. Companies can proactively mitigate risks and ensure compliance by partnering with a professional employer organization (PEO) like Group Management Services (GMS). A PEO provides expert assistance in developing comprehensive safety programs tailored to each organizations unique needs, allowing businesses to protect their workers and avoid costly fines and citations from OSHA. 

    Investing in workplace safety is essential to creating a healthy and productive workforce. Let GMS help safeguard your business and create a culture of safety that prevents accidents before they occur. Reach out to our safety experts today! 

  • In today’s fast-paced business environment, many employers underestimate the importance of remaining compliant with employment laws and regulations. Underestimating the significance of compliance can have serious repercussions, including audits, lawsuits, and damage to your company’s reputation. 

    For human resources professionals, it’s imperative to stay on top of all the employment laws that your organization is subject to. Ignoring these regulations can hinder your ability to hire and retain talent. It’s crucial to recognize that compliance is not just a legal obligation but a foundation for a successful and sustainable business. Let’s explore some common compliance mistakes that you may be overlooking. 

    Classifying Employees Incorrectly 

    Misclassifying employees is a common mistake that can lead to costly penalties. The Department of Labor (DOL) provides specific guidelines for classifying employees as exempt or non-exempt. Exempt employees are not entitled to overtime pay, while non-exempt employees are. This classification depends on factors such as job duties, level of responsibility, and salary, not just job titles or work environments. Correct classification is crucial for accurate payroll processing, record keeping, and compliance with labor laws. 

    Mishandling Hiring Paperwork  

    Properly managing hiring paperwork is essential to avoid legal complications. Form I-9, which verifies an employee’s eligibility to work in the U.S., must be completed accurately and on time. Employers must ensure that all sections of the form are filled out correctly, including dates and signatures, and that valid supporting documents are provided. Common errors include missing information, incorrect documentation, or failure to update forms for employees with temporary work visas. Employers should provide clear instructions to new hires about acceptable documentation and ensure that all paperwork is completed on time. Failure to comply can result in hefty fines and legal issues. 

    Ignoring Safety Regulations 

    Compliance with safety regulations is critical to protecting employees and avoiding legal liabilities. The Occupational Safety and Health Administration (OSHA) requires all employers to provide a safe working environment free from recognized hazards. This includes providing necessary safety training, equipment, and protective gear, such as hard hats and eye protection. Employers must regularly communicate safety protocols and ensure that employees are aware of and adhere to them. Implementing a comprehensive safety training program can help employees understand potential hazards and the steps to take in case of an incident. 

    Failing To Stay Compliant During Growth 

    Rapid growth can lead to increased compliance challenges, especially as employee numbers rise. Businesses must be cautious when reclassifying employees or hiring independent contractors to avoid violating labor laws. Independent contractors must operate as separate entities, providing their own tools and setting their own hours. Misclassifying employees as contractors to circumvent benefits or tax obligations can lead to significant legal issues. As your business grows, regularly review compliance requirements to ensure all aspects of the law are being met. 

    Not Staying Up To Date 

    Staying updated with the changing landscape of employment laws is crucial for maintaining compliance. Regulations can vary significantly at the local, state, and federal levels, and new laws are frequently enacted. Business leaders must be aware of rules governing sick leave, employee privacy, hiring practices, workplace safety, and more. Failure to keep policies current can result in non-compliance and potential legal action. Regularly reviewing and updating company policies to reflect changes in the law can help mitigate risks and ensure your business remains compliant. 

    Stay Compliant With GMS

    GMS offers expert guidance to help businesses navigate the complex world of compliance. Whether it’s payroll, HR, or risk management, GMS provides the tools and support needed to ensure your business remains compliant with all relevant regulations. By partnering with GMS, you can focus on growing your business while we handle the intricacies of compliance. Contact us today and discover how we can support your compliance needs. 

  • New York businesses are bracing for significant health insurance premium increases in 2024. The New York State Department of Financial Services (DFS) has approved average rate hikes of 13.5% for individual plans and 7.4% for small group plans. While these increases are lower than insurers initially requested, they still represent a substantial burden for businesses and employees alike. 

    Three Factors Driving Premium Increases: 

    1. Rising medical costs: The cost of medical care, including hospital stays, physician services, and pharmaceuticals, continues to rise. This is compounded by increased utilization of these services as patients seek more care post-pandemic. 
    2. Economic inflation: Broader economic inflation has put additional upward pressure on health care costs, including administrative expenses for insurers. 
    3. End of public health emergency (PHE): The unwinding of the PHE has led to changes in coverage, such as the reintroduction of cost-sharing for COVID-19 testing and the commercialization of COVID-19 vaccines, which increase insurers’ costs. 

    What This Means For Business Owners: 

    Increased costs 

    Higher insurance premiums will impact New York businesses’ overall operating costs. This is particularly challenging for small businesses, which may struggle to absorb these increases. 

    Administrative challenges 

    The process of navigating these changes and ensuring compliance can be administratively burdensome. This includes managing renewals and understanding new coverage options for employees. Businesses may need to invest more time and resources into understanding the changes and communicating them effectively to their employees. 

    Employee impact 

    Rising premiums may lead to higher contributions from employees or reduced benefits, potentially affecting employee satisfaction and retention. Employees may also face increased out-of-pocket costs, which could affect their financial well-being and job satisfaction. 

    Strategic decisions 

    Business owners may need to revisit their benefits strategy. This could involve considering different insurance carriers or plans, exploring self-insurance options, or increasing the focus on preventative care and wellness programs to help control costs. 

    Navigating Changes In Health Insurance Premiums 

    As businesses face rising health insurance premiums, it’s crucial to explore various options to manage costs while still providing quality coverage for employees. Here are some strategies to consider: 

    1. Explore GMS’s master health plan:
    • GMS offers an in-house master health plan that helps businesses avoid large swings in usage trends and renewal rates. 
    • Our plan provides access to one of the largest national networks. 
    1. Leverage group buying power:
    • By partnering with GMS, small businesses can access the buying power of a large corporation. 
    • GMS represents more than 50,000 employees, allowing for more competitive rates. 
    1. Consider different plan options:
    • Evaluate various plan types, such as preferred provider organizations (PPOs), health maintenance organizations (HMOs), or high-deductible health plans paired with health savings accounts (HSAs). 
    • Each option has different cost structures and benefits that may better suit your business and employees. 
    1. Implement cost-sharing strategies:
    • Adjust deductibles, copayments, or coinsurance to balance costs between the employer and employees. 
    • Offer voluntary supplemental insurance plans to cover gaps in primary coverage. 
    1. Promote wellness programs:
    • Implement wellness initiatives to improve overall employee health and potentially reduce long-term health care costs. 
    1. Educate employees:
    • Provide comprehensive education on plan options and how to use the benefits effectively. 
    • Help employees understand how these changes might affect their contributions and benefits. Transparency can build trust and reduce anxiety. 
    • GMS offers a dedicated team of experts to assist with employee training and answering complex health plan questions. 
    1. Regular plan reviews:
    • Conduct annual reviews of your health insurance plans to ensure they still meet your business needs and budget. 

    By exploring these options, particularly GMS’s master health plan, businesses can work towards managing premium increases while still offering competitive benefits to their employees. 

    Navigate Change With GMS: 

    As New York businesses navigate these challenging premium increases, GMS offers a valuable solution. Our in-house master health plan helps businesses avoid large swings in usage trends and renewal rates. By leveraging the collective purchasing power of over 50,000 employees, GMS enables small businesses to access group health insurance at significantly lower rates—24% lower for employee premiums and 21% lower for family premiums compared to the U.S. average.  

    By working with GMS, you can navigate these challenges more effectively, ensuring that your business remains competitive and your employees are well supported. Partner with GMS to better manage your health care expenses, support your employees, and maintain a competitive benefits package that supports employee retention. 

  • On July 17th, the Internal Revenue Service (IRS) announced that some amended employment tax returns can be electronically filed using the Modernized e-File program.  

    The Modernized E-File (MeF) Program 

    MeF is a web-based system that allows electronic filing of tax returns. E-filing saves time and money. When taxes are e-filed, whether it be for businesses, professionals, or individuals, the data is directly transmitted online from the e-filer’s servers to the tax agency’s servers.  

    The MeF program provides electronic filing and payment options for filers of corporation, employment tax, estates and trusts, excise tax, exempt organization, individual, partnership, and withholding tax returns. Learn more about these returns here. 

    Amended Returns That Can Now Be E-Filed 

    The following amended employment tax returns can now be e-filed: 

    • Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return 
    • Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund 
    • Form 943-X, Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees or Claim for Refund 
    • Form 945-X, Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund 

    Note: MeF cannot be used yet to e-file Form 944-X, Adjusted Employer’s Annual Federal Tax Return or Claim for Refund, or Form CT-1 X, Adjusted Employer’s Annual Railroad Retirement Tax Return or Claim for Refund. 

    About Form 940 

    Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Workers who have lost their jobs can receive unemployment compensation through the FUTA tax and state unemployment tax systems. Employers typically pay both federal and state unemployment taxes. Only employers pay the FUTA tax; your employee’s wages should not be subject to it. 

    About Form 941-X 

    Use Form 941-X to correct errors on a Form 941 that you previously filed. Form 941 is used to report both federal income taxes and Federal Insurance Contributions Act (FICA) taxes, the latter of which includes Medicare tax and Social Security tax. 

    About Form 943-X 

    Use Form 943-X to correct errors on a previously filed Form 943. Form 943 is a tax form used to report federal income tax, Social Security, and Medicare withholdings from agricultural employees. 

    About Form 945-X 

    Use this Form 945-X to correct administrative errors only on a previously filed Form 945. If the federal income tax you reported on Form 945 (including backup withholding) differs from the amount withheld from payees, you have committed an administrative error. 

    Use Form 945 to report withheld federal income tax from nonpayroll payments. Nonpayroll payments include: 

    • Pensions (including distributions from tax-favored retirement plans, for example, section 401(k), section 403(b), and governmental section 457(b) plans), and annuities 
    • Military retirement 
    • Gambling winnings 
    • Indian gaming profits 
    • Voluntary withholding on certain government payments 
    • Backup withholding 

    GMS Helps Keep Your Business Compliant 

    Staying compliant with the ever-changing landscape of tax and payroll regulations can be daunting for any business owner. With GMS, you can skip the manual work and focus on what truly matters—growing your business. Our expert team is dedicated to keeping you informed about new laws and regulations, ensuring your business remains compliant without the hassle. Let us handle the complexities of payroll and tax management. Contact us today to learn how GMS can support your business and simplify your operations! 

  • As a business owner, ensuring the health and safety of your team should be a top priority. Your employees’ work and productivity are vital to keeping your business running smoothly, and any threat to their safety can significantly impact your business’ operations. While maintaining a safe working environment involves several factors, there are specific legal obligations you must adhere to.

    Under the U.S. Department of Labor, the Occupational Safety and Health Administration (OSHA) has established comprehensive guidelines that businesses must follow. These guidelines extend beyond the physical workplace, including emergency plans, proper documentation, and more. While a few businesses are exempt, which we will discuss later, most companies must comply with OSHA regulations regardless of size. Non-compliance can lead to significant fines, legal consequences, and reputational damage that may be challenging to recover from.

    Prioritizing OSHA compliance not only ensures the safety and health of your team but also fosters a culture of responsibility and care within your organization. By doing so, you mitigate risks and contribute to a more productive and motivated workforce, which can ultimately drive your business toward sustained success. In other words, OSHA compliance is not just a legal obligation but a strategic move that can enhance your business’ performance and reputation.

    Exempt And Partially Exempt Businesses

    While most businesses are required to comply with all OSHA regulations, several factors determine whether your business falls under OSHA’s jurisdiction and the extent of compliance needed:

    • Small business exemptions: Companies with 10 or fewer employees are partially exempt from OSHA. While they must still comply with specific reporting requirements, they are not required to maintain records of illnesses or injuries unless directed otherwise by OSHA.
    • Industry-specific exemptions: Depending on the industry, businesses with 10 or more employees may still be partially exempt from OSHA’s recordkeeping requirements. Low-risk sectors, such as payroll services and research and development, for example, have reduced OSHA responsibilities and are only required to comply with specific regulations.
    • Location-based exemptions: OSHA has reviewed and approved 22 state employee safety programs. If your business operates in one of these states, you must follow the specific regulations set forth by the state’s safety program rather than federal OSHA regulations.
    • Self-employed exemption: This only applies to businesses where the owner doesn’t have employees. Once a business owner hires one or more employees, they become subject to OSHA regulations.
    • Federally or state-regulated industries: These industries include mining and milling, aviation, churches and religious establishments, to name a few. While these organizations do not fall under OSHA, they must adhere to their industry’s specific regulations to ensure the health and safety of their workers.
      It’s critical to understand your business’ required level of compliance. In addition, as your business grows, it’s important to regularly revisit your health and safety practices to ensure ongoing compliance, as your status may change.

    OSHA Requirements For Employers

    As a business owner, you are responsible for providing a safe workplace free from serious hazards. Workplace injuries can significantly impact your employees, reducing productivity and morale. Unsafe work environments often result in increased absenteeism, as injured employees may require extensive time off, which in turn places additional labor demands on the remaining staff. This can lead to burnout, disengagement, and even more injuries due to fatigue. Investing in the health and safety of your team can save you time and money in the long term.

    Beyond creating a safe work environment, OSHA also requires you to implement and maintain several key safety protocols and practices, including:

    Emergency plan

    A clearly defined emergency action plan (EAP) is essential in a crisis requiring employees to evacuate the workplace; this plan should outline the procedures for exiting the building or work zone safely. Ensure all staff members know the EAP and that it’s in an accessible area for easy reference, such as the cafeteria or a common gathering area. Regular drills and updates to the plan will help keep employees prepared and aware of the proper actions to take during an emergency.

    Fire safety plan

    Similar to the emergency action plan, a written fire safety plan is required. In addition, marked exits that are always obstruction-free are mandatory. If you choose to keep fire extinguishers onsite, while not required by OSHA in most cases, it’s essential to train your employees on proper use.

    Safety tools and training

    As an employer, you must provide all necessary tools and safety equipment for your team. This varies depending on your industry, but personal protection equipment (PPE) while operating heavy construction equipment is one example. Additionally, it’s crucial to ensure that employees are adequately trained in using and maintaining these tools. Regular training sessions will help maintain a high level of safety and proficiency.

    Personal protection equipment (PPE)

    PPE includes items such as head protection, gloves, masks, respirators, and eye, face, and ear protection. In industries where employees handle hazardous materials or work in dangerous environments, it’s your responsibility to provide the appropriate PPE and ensure your staff utilizes it effectively. Integrate regular training sessions and reminders into your workflow to reinforce proper usage.

    Documentation and reporting

    OSHA has specific documentation and reporting requirements for workplace injuries and illnesses. While you must report all cases to OSHA, the severity of the incident will dictate the reporting timeline. For instance, fatalities or amputations require you to file a report within eight hours of the incident, while less severe injuries require a report within 24 hours. Maintaining accurate records and adhering to these reporting guidelines are essential for compliance and employee safety.

    OSHA compliance is a serious task that can be time-consuming and costly. If you’re not sure where to start , this OSHA compliance checklist will help ensure you’re on the right track. However, if you’re seeking more assistance, partnering with a professional employer organization (PEO) like GMS can be highly beneficial.

    How GMS Can Help

    As a small business owner, you can take extensive measures to create a safe working environment, but accidents may still happen; having a plan for when they do occur is the best way to ensure your team and your business are as protected as possible. GMS’ workers’ compensation experts work closely with your company to create a comprehensive risk management plan to keep your employees safe while also saving you money. In addition, our experts are always ready to help you navigate claims in real time. Our partnership with CarivaCare provides our clients with 24/7 access to the workers’ compensation nurse triage program. This program offers employees a neutral, third-party medical professional to report any injuries on the job.

    PEOs like GMS not only ensure compliance with OSHA but also implement cost-containment and loss-prevention strategies to lower workers’ compensation rates and save your hard-earned money. Contact us today, and let us help you create a safer and more compliant workforce!

  • South Carolina recently became the fifth state to enact a law regulating earned wage access (EWA) providers. The new law, signed by Governor Henry McMaster, takes effect on November 21, 2024.

    The Rise of Earned Wage Access

    Earned wage access allows employees to access wages they have already earned before their next payday. This helps employees meet unexpected expenses without having to pay late fees, overdraft fees, or resort to predatory payday loans.

    As EWA grows in popularity, some states and the federal government have considered enforcing stricter regulations that would classify it as lending. However, the industry has successfully advocated for laws like those in South Carolina that provide oversight without the burdens of lending laws.

    Key Provisions Of The South Carolina EWA Law

    • EWA is not considered a loan under the law
    • EWA providers must register annually with the SC Department of Consumer Affairs (DCA)
    • EWA providers must offer employees at least one no-cost option to access earned wages
    • Employees can discontinue EWA services at any time without penalty
    • EWA providers must disclose all fees associated with the service
    • Providers must report annual data like revenue, complaints, and transaction volume to the DCA

    South Carolina joins Kansas, Missouri, Nevada, and Wisconsin in implementing EWA regulations that avoid treating these services as loans subject to lending laws.

    EWA Benefits For Small Businesses

    EWA provides valuable financial flexibility for employees while helping small businesses attract and retain top talent. EWA is a beneficial tool that small businesses can leverage to foster a financially healthy, engaged, and loyal workforce. By providing employees with the financial flexibility they need, employers create a supportive and attractive work environment. With GMS’ payroll and human resources expertise, we can provide resources to integrate an EWA solution for your workforce.

    GMS stays up to date on rapidly evolving regulations like South Carolina’s new EWA law. We ensure your business remains compliant while offering benefits that give you a competitive edge in recruitment and employee satisfaction. Contact our team of HR experts today to learn more about how we can support your small business needs.

  • As of July 1, 2024, businesses operating in Chicago will need to comply with the city’s new Paid Leave and Paid Sick Leave Ordinance. This updated law replaces the previous Chicago Paid Sick Leave Ordinance and introduces significant changes that employers must understand and prepare for.

    Key Provisions Of The New Ordinance

    Under the new ordinance, eligible employees in Chicago will be entitled to earn up to 40 hours of paid sick leave and an additional 40 hours of paid leave per 12-month period. This paid leave can be used for any reason, providing employees with greater flexibility and work-life balance.

    The ordinance also includes provisions regarding the definition of a 12-month period, carryover of unused leave, denial of leave requests, use of paid time off (PTO) policies for compliance, rate of pay calculations, and employer notification requirements.

    Defining The 12-Month Period

    Employers have the flexibility to establish their own 12-month period for accruing and using paid leave and paid sick leave. This period can be based on the employee’s anniversary year, the calendar year, a contract year, the fiscal year, or the tax year, as long as it consists of consecutive months.

    Carryover Of Unused Leave

    Employees can carry over up to 80 hours of paid sick leave and up to 16 hours of paid leave from one 12-month period to the next. Employers have the option to frontload 40 hours of paid leave and 40 hours of paid sick leave at the beginning of the 12-month period, but frontloading paid sick leave does not alleviate the carryover obligations for that type of leave.

    Denial Of Leave Requests

    The ordinance allows employers to require reasonable preapproval for using paid leave to maintain business continuity. However, denials must be based on legitimate factors, such as the impact on operations, the nature of the business, and ensuring fair treatment of employees. Denials must be provided in writing with a clear rationale.

    The final rule includes a new provision that allows employers to restrict the use of paid leave or paid sick leave to the employee’s regular workweek. This means that employees could be prevented from accessing their paid leave or paid sick leave during scheduled mandatory overtime or weekends.

    Using PTO Policies For Compliance

    Employers can use existing PTO policies to comply with the ordinance, but they must adhere to its requirements, such as the shorter waiting period for using paid sick leave. For example, the 30-day waiting period for paid sick leave must apply to the policy instead of the 90-day waiting period for paid leave.

    Rate Of Pay Calculations

    Employees must receive their regular rate of pay when using paid sick leave and paid leave, including continuing health care benefits if applicable. The final rules did not provide guidance on calculating the regular rate of pay for non-exempt employees based on the previous 90 days of employment.

    Employer Notification Requirements 

    The ordinance outlines various notification requirements for employers, including:

    • Posting notices
    • Providing new hire notifications
    • Annual frontloading notices (if applicable) 
    • Annual employee notifications 
    • Establishing written policies
    • Notifying employees of policy changes
    • Providing information on available paid leave balances

    Ensuring Compliance With GMS

    As the July 1st effective date approaches, businesses in Chicago must take proactive steps to ensure compliance with the new Paid Leave and Paid Sick Leave Ordinance. Failure to comply can result in penalties and legal consequences.

    At GMS, we understand the complexities of navigating the ever-changing labor laws and regulations. Our team of experts can assist your business in reviewing and updating your paid leave policies, employee handbooks, and notification procedures to align with the new ordinance. We can also provide guidance on record-keeping, payroll calculations, and other compliance-related matters.

    By partnering with GMS, you can have peace of mind knowing that your business is fully compliant with state and local laws. and any other applicable labor laws. Contact us today to learn more about our comprehensive compliance solutions and how we can help your business stay ahead of the curve.

  • In December 2023, a tragic incident occurred at the Appleton plant of Konz Wood Products Co., a pallet manufacturer based in Wisconsin. As a result, the U.S. Occupational Safety and Health Administration (OSHA) has taken stringent measures against the company due to serious workplace safety violations, marking the fifth inspection at the plant since 2016.

    Incident Details

    The unfortunate incident involved the death of an employee who was crushed by a lumber stacking machine while attempting to free a jammed board. OSHA cited Konz Wood Products Co. for two “repeat violations” and 15 “serious” violations following this employee’s death. The company failed to ensure the machine was locked out to prevent movement, leading to the fatal accident.

    OSHA’s Actions

    In response to the violations, OSHA has proposed $177,453 in penalties for Konz Wood Products Co. The company has been given 15 business days to contest the citation and proposed penalties. In addition, due to the gravity of the violations, OSHA has placed the company in the agency’s severe violator program.

    Violations Identified

    The violations identified by OSHA include the failure to provide fall protection and violations related to machine guarding on various saws and other machinery. These violations raise serious concerns about the company’s commitment to ensuring a safe working environment for its employees.

    Protect Your Business With A PEO

    In light of the tragic incident at Konz Wood Products Co., businesses can take proactive steps to prevent similar accidents by partnering with a professional employer organization (PEO). A PEO like GMS offers comprehensive workplace safety programs that address critical areas such as machine guarding, lockout/tagout procedures, and fall protection. By collaborating with a PEO, companies gain access to expert guidance, safety training, and compliance resources. Implementing robust safety protocols, conducting regular inspections, and fostering a culture of safety can significantly reduce the risk of workplace accidents. Remember, investing in safety today ensures a brighter and accident-free future for employees and the organization as a whole. Contact our safety experts today!

  • The U.S. Department of Labor (DOL) recently announced a significant change that will impact millions of workers across the country. The final rule to increase the minimum salary level for the Fair Labor Standards Act (FLSA) “white collar” exemptions will have far-reaching effects on employers and employees. It’s essential to explore the implications of these changes, especially for different state regulations.

    Changes In Minimum Salary Levels

    The DOL’s announcement sets the minimum salary level for the FLSA “white collar” exemptions to increase in two phases. The first phase, effective July 1, 2024, will see the minimum salary level rise from $684 to $844 per week, or from $35,568 per year to $43,888 per year. However, on January 1, 2025, the minimum salary level will experience another hike, reaching $1,128 per week or $58,656 per year.

    Impact On States

    The new salary thresholds for white-collar exemptions will affect different states, depending on their existing labor laws and regulations. Let’s break down the impact based on the different categories of states:

    States with no general overtime pay provisions

    There are 17 states without general overtime pay provisions. Employers in these states, covered by the FLSA, must adhere to the federal overtime pay requirements, including the new salary thresholds. These states include:

    • Alabama
    • Arizona
    • Delaware
    • Florida
    • Georgia
    • Idaho
    • Louisiana 
    • Mississippi
    • Nebraska
    • Oklahoma
    • South Carolina
    • South Dakota 
    • Tennessee 
    • Texas
    • Utah
    • Virginia
    • Wyoming

    States and territories referring to FLSA overtime definitions

    Currently, 14 states and territories rely on or directly refer to the overtime definitions found in the FLSA. Consequently, they’re also obligated to follow the new salary thresholds. These states and territories include:

    • Arkansas
    • District of Columbia
    • Indiana
    • Kansas
    • Kentucky
    • Maryland
    • Massachusetts
    • Michigan 
    • Missouri
    • Nevada
    • New Hampshire
    • North Carolina
    • Ohio 
    • Rhode Island

    States with their own overtime rules

    In addition to the above, there are 20 states that have their own overtime rules to consider alongside the federal regulations. These states include:

    • Alaska
    • California
    • Colorado
    • Connecticut
    • Hawaii
    • Illinois
    • Iowa
    • Maine
    • Minnesota
    • Montana 
    • New Jersey
    • New Mexico
    • New York
    • North Dakota
    • Oregon
    • Pennsylvania 
    • Vermont
    • Washington
    • West Virginia
    • Wisconsin

    Interaction With State Laws

    It’s important to note the interaction between the new FLSA salary thresholds and state laws is critical. While state law requirements are less favorable to an employee than the FLSA, the state laws apply only to employees who are not covered by the FLSA. On the contrary, if the state requirements are more favorable to an employee than the FLSA, they apply to all employees covered by the state law, even if they’re also covered by the FLSA.

    How A PEO Comes Into Play

    The changes in the FLSA minimum salary levels will have a widespread impact on the employment landscape across the United States. It’s essential for small business owners to stay informed about these changes and ensure compliance with federal and state regulations to avoid any potential legal ramifications.

    This is where a professional employer organization (PEO) can play a crucial role. A PEO, like Group Management Services (GMS), can provide expert guidance on compliance with federal and state labor regulations, offer tailored HR solutions, and assist in managing payroll and employee benefits. By partnering with GMS, businesses can streamline their HR processes, stay updated on changing regulations, and ensure they are well-equipped to adapt to the new FLSA requirements while adhering to state-specific laws. Contact us today to learn more!