Request a call Login

  • In a historic move, the state of Michigan has ushered in a new era of employment opportunities for its citizens. As of October 1st, 2023, a groundbreaking rule change has come into effect, one that has the potential to reshape the employment landscape for many prospective state workers.

    The Rule Change

    The rule, adopted by the Michigan Civil Service Commission in July, marks a significant shift in attitudes towards marijuana use and its impact on employment. Under this new rule, conditional offers of employment to new hires for positions not subject to random drug testing can no longer be rescinded solely based on marijuana positivity. This step represents a crucial stride towards ensuring fairness and equity in the workplace, particularly as the legal landscape surrounding marijuana continues to evolve.

    Acknowledging Changing Attitudes

    The Michigan Civil Service Commission’s decision reflects a growing recognition of the changing societal attitudes toward marijuana. With the legalization of recreational marijuana in the state, it’s only natural that employment policies adjust to reflect this transformation. This forward-thinking approach acknowledges that marijuana use should not automatically disqualify job candidates from employment opportunities unrelated to safety-sensitive concerns.

    Ensuring Safety

    It’s essential to emphasize that the ban on pre-employment marijuana screening does not equate to a free pass for marijuana use in the workplace. Michigan has taken a careful and measured approach, ensuring that safety-sensitive positions and critical roles remain subject to pre-employment testing for marijuana. This includes individuals operating specific vehicles, equipment, and machinery, where impairment could pose a significant risk to public safety. Law enforcement positions, health care workers, and prison employees will continue to be subject to these screenings.

    Responsibility And Consequences

    Moreover, the rule change does not give employees carte blanche to use marijuana without consequences. Workers must still adhere to responsible consumption practices, especially regarding safety-sensitive roles. If an employee is found to have impaired levels of drugs or alcohol, including marijuana, while on the job, disciplinary actions and potential termination remain valid options. This ensures that while personal freedoms are respected, workplace safety is not compromised.

    A National Trend

    Implementing this rule demonstrates Michigan’s commitment to fair and inclusive hiring practices. It acknowledges that a positive marijuana test result does not necessarily correlate with job performance or safety concerns for every role. By reevaluating its stance on pre-employment marijuana screenings, the state sets an example for the nation and paves the way for more progressive employment policies.

    The PEO Advantage

    Michigan businesses are navigating uncharted waters in this changing landscape of employment policies and regulations. This is where a professional employer organization (PEO) can play a pivotal role. PEOs like Group Management Services (GMS) offer comprehensive HR solutions that can help businesses in Michigan adapt to the evolving legal environment, including the recent ban on pre-employment marijuana screenings. They can provide guidance on compliance, offer drug testing programs tailored to safety-sensitive positions, and assist with employee relations and disciplinary matters. Partnering with GMS allows business owners to ensure they remain competitive, compliant, and focused on their core operations while leaving the complexities of HR management to the experts. Contact us today to learn more.

  • Michigan might become the first state in nearly 60 years to ditch its right-to-work law. The Michigan House of Representatives passed two bills, House Bill (HB) 4004 and HB 4005, to repeal the state’s current right-to-work law on March 8th, 2023. HB 4004 relates to the right to work in the public sector, while HB 4005 relates to the private sector.

    The current right-to-work law passed in Michigan in 2012 prohibits unions from requiring workers to pay union dues as a condition of employment. The bills passed by the Michigan House would reverse the right-to-work law by allowing unions to collect dues from all workers in a bargaining unit. Ultimately, it means that union security clauses in collective bargaining agreements would become legal again for the first time in Michigan since 2012.

    Supporters of the law argue that it gives workers more freedom and choice in their employment, while opponents say it weakens unions and reduces their bargaining power. The debate over the right-to-work law has been contentious in Michigan, with labor unions and their supporters arguing that it weakens their ability to negotiate better wages and benefits for workers. However, supporters of the law say that it’s helped make Michigan more competitive and attractive to businesses, leading to job growth and economic development.

    What Now? 

    The bills will now move to the Michigan Senate for further debate. If passed in the Senate, the bills will move forward to Governor Gretchen Whitmer for her signature. While the debate over the right-to-work law is expected to continue in Michigan and other states where similar laws have been passed, you must understand your responsibilities as a business owner. If the bills are passed, business owners would be responsible for allowing unions to collect dues from all employees in a bargaining unit, regardless of whether they choose to join the union.

    Ultimately, it means that if a union is present in a workplace, the employer would be required to deduct union dues from the pay of all employees in the bargaining unit. In addition, you’d have to negotiate with the union on behalf of all employees on wages, benefits, and other working conditions that affect all employees in the bargaining unit. You must be prepared to work with unions and comply with new union dues and collective bargaining requirements. Consult with an HR professional such as Group Management Services (GMS) to ensure you comply with all relevant laws and regulations. Contact us today to learn more.

  • As the state of Michigan anxiously awaited the decision on minimum wage, the Michigan One Fair Wage v. Attorney General case results are in. On January 26th, 2023, the Michigan Paid Leave Medical Leave Act (PMLA) and Michigan Improved Workforce Opportunity Wage Act implemented in 2019 will remain in place. They found that the Michigan Legislature needed more constitutional authority to adopt and subsequently amend two 2018 ballot initiatives. If this had passed, the minimum wage would have increased to $12 per hour in 2023 and increase tipped wages to the full minimum wage. In addition, it would have enacted one of the country’s most extensive paid sick leave laws. These would have significantly impacted business owners, forcing them to make drastic changes to their paid time off policies (PTO) and procedures.

    What This Means For Business Owners In Michigan

    The good news is that because the lower court’s decision was reversed and given immediate effect, businesses are no longer forced to make significant changes to their PTO policies and wage schedules beginning February 19th, 2023. The minimum wage will stay the same at $10.10 an hour. However, there will most likely be an appeal, so employers will want to keep an eye out for any further developments relating to this case.

    How GMS Can Help

    Everchanging rules and regulations are constant battles business owners have to juggle. However, when you partner with a professional employer organization (PEO) like GMS, you no longer have to carry the weight on your shoulders. We take on all the administrative burdens you don’t have the time or expertise to manage. GMS experts keep you up to speed with new laws and regulations you should be aware of for your business. Save yourself time and contact us today.

  • The last election cycle may have added to the number of states with legalized marijuana, but is your business ready for it? Michigan became the 10th state to legalize recreational marijuana this past midterm election, ushering in the creation of the Michigan Regulation and Taxation of Marihuana Act (MRTMA). As more states adopt these measures, it’s a good time to consider how legal marijuana affects your business and what you can do to protect yourself.

    A small business owner and an employee reviewing marijuana policies in the employee handbook.

    What Does Legalized Marijuana Means for Small Business Owners?

    While MRTMA does legalize the use of recreational marijuana, it doesn’t do so at the expense of business owners. In fact, the new law doesn’t change much in terms of an employer’s ability to maintain the same drug and alcohol policy that was in place before the law. Per the MRTMA itself, the act still allows employers to do the following:

    • Ban conduct allowed by this act in any workplace or on company property
    • Discipline, discharge, or take other adverse employment actions against an employee for violations of a workplace drug policy or for working while under the influence
    • Refuse to hire a person after failing a pre-employment drug test or take adverse action against an existing employee in terms of tenure, terms, conditions, or employment privileges for working under the influence

    There’s also the fact that recreational marijuana is still illegal in terms of federal law, which has generally trumped state laws in marijuana-related cases so far. While Michigan’s new law and federal law in general doesn’t reign in an employer’s ability to maintain a drug-free workplace, that doesn’t mean that you shouldn’t takes steps to protect your business. It’s up to you to set clear guidelines that make your company’s policies are clear to your employees.

    What You Can Do to Protect Your Company

    Institute a Drug-Free Workplace Policy

    Regardless of whether you’re in a state like Michigan that has legalized recreational marijuana or not, it’s good to establish a written drug-free workplace policy (DFWP). This policy should make it clear that employees should never have any illicit substances on company grounds.

    Consider Drug Testing

    If you plan to test your employees for drug use, you need to have your policy carefully outlined to make sure that your employees have a clear understanding of your drug testing policy. This includes expectations and rules associated with each type of test, such as when they can happen, testing timelines and steps, and what’s expected of the employees. The types of drug test include:

    • Pre-employment tests for applicants
    • Probable cause tests for reasonable suspicion
    • Arbitrary tests on set dates (such as work anniversaries)
    • Random tests

    Of course, how you administer these tests can vary depending on your state. For example, Michigan has no law addressing drug testing regulations for private employers if your policies are not found to be discriminatory or violate any other legal provision. Other states may have set regulations for what types of test can be done and how those tests and conducted. OHS, Inc. provides abstracts of each state’s workplace drug testing laws, although it’s good to check local laws yourself to make sure you’re in compliance with any necessary rules and regulations.

    Set Discipline Standards

    In a way, marijuana can be treated the same way as alcohol; employees can’t come to work impaired, and they’ll be in trouble if they do. You’ll want to set firm policies to protect your business in case there are any incidents, but you should also consider whether your state has any protections in place for marijuana users, especially for places where medical marijuana is allowed.

    Of course, these potential protections can vary greatly based on your location. The Society for Human Resource Management notes that employers in Vermont and Minnesota “can’t fire someone for the first failed drug test if the employee agrees to complete a rehabilitation program.” The Small Business Association of Michigan highlights a Maine law that “prohibits adverse actions against employees for using marijuana outside of work.” Federal law may generally prevail, but adjusting your discipline standards to fit local laws can help you avoid costly legal battles while still affording your company some protection.

    It’s also crucial that, no matter how you decide to discipline employees for failed drug tests, you treat everyone equally. If you use a failed test as the basis for firing one employee but refrain from punishing a separate long-term employee, the fired employee could argue that your inconsistent application of your own rules was discriminatory. That could lead to litigation and a long, costly headache that could be avoided.

    Another good item to include is some language involving what it means if an employee attempts to delay a test or outright refuses to take one. If you decide to drug test employees, you should include a clear definition of “refusing to test” to offer you some protection. If you find that an employee is too evasive about drug testing and should be dismissed.

    Prepare Your Business for Marijuana Laws

    It’s not going to get any easier trying to figure out how marijuana laws will impact your business. Between new states adding legal marijuana and various regulations, it can be an absolute headache to keep track of everything your business should do to protect itself unless you’re an expert. If an employee gets hurt while under the influence of marijuana, the process can be even more complicated. Because of that, it’s best to turn to an expert to make sure you stay on top of federal and state marijuana laws.

    A Professional Employer Organization like GMS can help you navigate through confusing, ever-changing regulations and update your handbooks to protect your business. We have experts in multiple locations across the country, including at our Detroit office. Contact us today to talk to one of our experts about how we can help you prepare for marijuana regulation and strengthen your business in other ways.

  • As a small business owner, you’re in control of your business. However, things that you can’t control can impact your business as well. 

    Certain laws and executive orders can potentially require you to change certain processes and policies to protect your company. It’s important to keep an eye out for any news that can lead you to review current practices and make changes, such as when Michigan Gov. Gretchen Whitmer signed an executive order to increase protections that prohibit anti-LGBTQ discrimination in January of 2019. Whether your business is in Michigan or not, it’s a good time to consider how orders like these can impact your day-to-day operations.

    A job applicant being interviewed by a small business following non-discrimatory hiring practices. 

    What Does This Mean for Your Small Business?

    For most businesses, Whitmer’s order won’t change all that much. Outgoing Gov. Rick Snyder signed a directive in December of 2018 that, per the Detroit Free Press, “barred state contractors from discriminating against gay or transgender employees,” with exceptions for churches and religiously-affiliated organizations. The new order removes that exception, but that still puts most small business owners in the same spot as before.

    The bigger takeaway from this order is that it’s a part of a bigger trend across the U.S. to extend protections to people seeking employment, whether it’s because of sexual orientation and gender identity or another reason. In addition, LGBTQ and gender discrimination claims are expensive. The U.S. Equal Employment Opportunity Commission (EEOC) enforces discrimination laws on a federal level and has forced offending employers to pay out more than $3.3 million in monetary relief. As discrimination laws evolve across the country, it’s important to be proactive about potential changes instead of waiting for an issue to arise.

    How You Can Protect Your Business During the Hiring Process

    Discrimination is a matter of hiring–or not hiring–a candidate for reasons that aren’t based on an applicant’s qualifications. Each state’s anti-discrimination laws can differ, but the best way to avoid potential issues is to have a hiring process in place that treats everyone equally and documents interviews so that you can protect yourself from any anti-discrimination claims.

    Establish Set Interview Questions

    If you don’t already, create a regimented interview process with standard interview questions that you ask every candidate. This will help you give each applicant an equal opportunity to make their case for the job. You also need to be careful about the questions you ask. Making direct inquiries that impact gender, race, age, or other protected criteria can lead to trouble. 

    For example, the Yale Office of Career Strategy notes that inquiries about family information status are potentially illegal in a job interview. A question as simple as “Are you married?” can be viewed as a way to probe for personal information or to even determine a candidate’s sexual orientation, even if it was an innocent attempt at conversation.

    Don’t Treat Some Candidates Differently than Others During the Interview Process

    No matter the opening, it’s important to conduct every interview the same way no matter who sits in front of you. Use your set list of questions and provide the same type of feedback. Follow-up questions can certainly vary depending on certain responses or specific qualifications, but it’s good to give everyone the same chance to answer the same base list of questions.

    Take Notes and Document the Results

    As you go through the interview, make sure to write detailed notes about a candidate’s responses for future evaluation. Not only are these notes useful if you have to compare a couple of close candidates, it creates a record of what was said in case an applicant tries to make a discrimination claim. In this case, you can present information on why you hired one candidate over another based on their responses and your notes. 

    If possible, it’s also good to conduct interviews with another colleague so that he or she can take notes as well. Not only will this give you another person to help during the interview, it gives you a second set of recorded notes to use in case any claims are filed.

    Keep Your Hiring Practices Ahead of the Curve 

    Finding and hiring the right job candidates is stressful. When you add in anti-discrimination considerations and other potential pitfalls that you can face in the hiring process, it can be overwhelming. Rules and regulations will continue to change over time, but there is a way that you can be proactive and protect your business.

    As a Professional Employer Organization, GMS can be the partner you need to shoulder the administrative burden and strengthen your business’ HR functions. Our team of experts allow you to outsource everything from payroll administration to employee recruitment and training programs. In turn, you not only save the time necessary to run your business, you gain the advantage of working with a group that can keep you up to date on any issues that may impact your company.

    Ready to keep your business ahead of the curve? Contact our Detroit office or one of our other locations across the country to talk to one of our experts about how we can help you strengthen your business today.

  • In the past, business owners in Michigan had the option of whether they wanted to offer paid sick leave for their employees. However, Michigan adopted the Earned Sick Time Act (ESTA) Sept. 5, 2018, making it the 11th state to have a mandatory paid sick leave law in effect. Within a few months, the state’s legislature amended the bill, adopting the Paid Medical Leave Act (PMLA) as a modified version of the initial act that will go into effect starting March of 2019. 

    With all the changes in Michigan’s paid sick leave laws, it’s time for business owners in the state to take stock of exactly what the PMLA requires of them, if they should reevaluate their paid leave policies, and what they need to do to be compliant with the new law.

    An employee staying home through her company’s paid sick leave policy. 

    What the Paid Medical Leave Act Does

    The short answer is simple: staring in March, employees in Michigan will accrue paid sick time based on the amount of time they work. 

    Which Businesses are Affected

    While the ESTA originally impacted all businesses to some degree, the PMLA only covers employers with 50 or more individuals. However, small employers with fewer than 50 individuals may offer paid medical leave if they choose to do so.

    Which Employees are Affected

    The ESTA had a broader definition of eligible employees, which included full-time employees, part-time employees, independent contractors, and temps. The PMLA limits the scope of which employees are eligible for paid sick leave with a dozen exclusions listed out in the senate bill.

    • An individual who is exempt from overtime requirements under section 13(a)(1) of the fair labor standards act, 29 USC 213(a)(1)
    • An individual who is not employed by a public agency, as that term is defined in section 3 of the fair labor standards act, 29 USC 203, and who is covered by a collective bargaining agreement that is in effect
    • An individual employed by the United States government, another state, or a political subdivision of another state
    • An individual employed by an air carrier as a flight deck or cabin crew member that is subject to title II of the railway labor act, 45 USC 151 to 188
    • An employee as described in section 201 of the railway labor act, 45 USC 181
    • An employee as defined in section 1 of the railroad unemployment insurance act, 45 USC 351
    • An individual whose primary work location is not in Michigan
    • An individual whose minimum hourly wage rate is determined under section 4b of the improved workforce opportunity wage act, 2018 PA 337, MCL 408.934b
    • An individual described in section 29(1)(l) of the Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.29
    • An individual employed by an employer for 25 weeks or fewer in a calendar year for a job scheduled for 25 weeks or fewer
    • A variable hour employee as defined in 26 CFR 54.4980H-1
    • An individual who worked, on average, fewer than 25 hours per week during the immediately preceding calendar year

    How Time is Accrued

    Both the ESTA and PMLA agreed that eligible employees are set to earn paid medical leave as soon as the act goes into effect March 2019. However, the FMLA changes the rate of accrual from one hour per every 30 hours to one per every 35 hours of service time. It also limits accrual to only one hour of paid sick leave in a calendar week. 

    In addition, the FMLA lowers the cap for paid leave to 40 hours per year instead of the ESTA’s 72. Time can be carried over into the next year, but usage is still capped at 40 hours. The PMLA also added an allowance for employers to add a waiting period of 90 calendar days before new hires can use paid sick leave.

    How Time is Used

    In terms of use, employees have a lot of wiggle room. Foreseeable leave, such as planned surgeries, procedures, etc., require up to seven days of notice. However, a sudden illness is not foreseeable, which means employees only need to give notice of sick leave as soon as reasonably possible. Earned paid leave can be used in one-hour increments, although the PMLA does permit employers to set a different increment policy in their employee handbooks.

    Another notable difference between the PMLA and the ESTA is that the amended bill gives employers more freedom to request documentation. Per the PMLA, employers can require reasonable documentation when employees use paid leave for absences of less than three days. In addition, employees have at least three days to provide the necessary documentation for absences.

    What it Means for Your Business

    If you have a business in Michigan and that business has fewer than 50 individuals, the PMLA won’t directly affect you. However, the act is part of a growing trend of more states adopting some form of required paid sick leave. This trend can serve as an opportunity to attract and retain better talent.

    Whether or not paid sick leave is mandatory for your business, you can still make it feel like a benefit for your employees. According to Access Perks, 88 percent of employees named sick leave as one of the most desirable PTO benefits. By offering paid sick leave—especially one that goes beyond any legally-required minimums—you can make your business more attractive to potential job candidates while rewarding your current employees.

    It is important to note that some business owners may be concerned that employees may abuse paid sick leave. However, that may not necessarily be the case. Monster notes that absenteeism did not notably increase when a paid sick leave law was passed in San Francisco and that the same employees who were likely to falsely call in sick in the past are the same who would abuse paid leave when it’s offered. 

    In fact, Access Perks notes that “89 percent of employees come to work sick with 19 percent admitting to doing this more than once a month.” By giving your employees the opportunity to take paid sick leave, they’ll be more inclined to use it when they really need it instead of forcing themselves to come to work and infecting other employees.

    How to Protect Your Business

    Regardless of your paid leave policy, you’ll need to adjust your policies and employee handbook. An outdated handbook can open you up to liability concerns, so it’s important to have your paid leave policy laid out so that employees have a clear understanding of the rules. It also allows you to have documentation in place to protect you from any legal claims against your company.  

    Another way to be safe is to work with experts who can help you roll out a new paid sick leave policy or any other program. As a Professional Employer Organization, GMS can help you establish an attractive benefits package and update your handbook appropriately. We can also help you stay ahead of new legislation or upcoming changes that may impact your business so you can act ahead of time. 

    Whether you need help with a paid leave policy or some other important business need, our Detroit branch or one of our other locations across the country can assist with risk management, outsourcing payroll, benefits administration, and other key HR functions. Contact GMS today to talk to one of our experts about how we can help your business.