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  • Whether you’re an employer who runs a pretty safe workplace or you’re one with more than its fair share of worker’s comp claims, the Department of Labor has some new rules for you to “nudge” you in the proper direction.

    Under a new rule from the Occupational Safety and Health Administration (OSHA), there is an effort to modernize its data collection and create a new database for investors and workers alike to learn about how safe a company is. Not a bad idea, but one that leans heavily on small business’ HR departments. 

    Image of a hard hat. Learn how OSHA’s new fasety datatbase rule can affect businesses.

    How OSHA’s New Rule Will Impact HR Departments

    Small businesses with more than 10 employees already are required to track injuries at work for OSHA purposes, but it has now gotten a little more transparent. According to Insurance Business America, the data gathered from this will be posted on OSHA’s website for the world to see.

    The purpose for this is to shine the public eye on businesses without a particularly clean record. “‘Since high injury rates are a sign of poor management, no employer wants to be seen publicly as operating a dangerous workplace,’ said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. ‘Our new reporting requirements will ‘nudge’ employers to prevent worker injuries and illnesses to demonstrate to investors, job seekers, customers, and the public that they operate safe and well-managed facilities. Access to injury data will also help OSHA better target our compliance assistance and enforcement resources at establishments where workers are at greatest risk, and enable ‘big data’ researchers to apply their skills to making workplaces safer.’”

    In larger companies, these things are typically handled by the HR department in conjunction with the company’s safety manager or risk department. Small employers, of course, rely on the business owner to navigate the insurance world with the help of their brokers or third party administrators, giving them access to a lot of info about their company. At best, that’s all you need. At worst, there may be an additional cost to bring in outside consultants to do safety inspections and audits.

    Working with a Professional Employer Organization

    If this new rule is something that concerns you, you have options. One of which is to of course reach out to a Professional Employer Organization (PEO) like GMS about making your company’s HR simpler, safer, and stronger.  Contact us today to learn more about how we can help your business.

  • Back in June of 2016, I wrote a blog that talked about some of the changes that were being planned over at the Occupational Safety and Health Administration. As 2017 kicks off, there’s more to talk about.

    According to an interview in Smart Business, there are some distinctions that may have slipped under the radar for some small business owners.

    Image of risk management services for businesses.

    How OSHA’s Changes Can Affect Your Business

    For years, business owners were required to submit written reports to OSHA about workplace injuries and incidents. While these were limited to larger employees, companies with as few as 11 employees had to submit OSHA 300 logs. These logs were meant for internal use, but that has now expanded to certain large and “high-risk” employers who must log onto OSHA’s website to post them. These logs will then be available to others who can access the site.

    The idea behind these changes were to “nudge” businesses to create safer work environments which would in turn lower workers’ compensation costs. These logs can now be used by OSHA for data analysis as well as something that can trigger an audit.

    Are you a large employer or “high risk?” For OSHA’s purposes, a large employer consists of 250 employees or more. However, a company in a “high risk” industry can have as few as 20 employees to be affected.

    Do you feel confident that you’re not in a high risk industry? Don’t be so sure. In some cases, grocery stores, retailers, rental centers, food distributors, etc. can be classified as such.

    OSHA is also cracking down against widespread “blanket, post-accident drug-testing” feeling that those kinds of policies quash some employees’ reporting of claims for fear of retaliation.

    Find Out Where Your Business Fits

    Not sure where you fit in with these changes? Don’t know if your post-accident policy is legal? Well you have certain options. You can navigate OSHA’s website to see what changes affect you, you can speak with your attorney, or you can reach out to a Professional Employer Organization who has their own internal Risk Management Department to handle things such as these. Contact GMS today to find out where your business falls in under these changes.

  • A culture of workplace safety not only helps protect you and your employees from avoidable accidents, it can also benefit your business financially. Costs associated with workers’ compensation rates can add up over time, but preventative measures can help businesses save their hard-earned money.

    One place that has seen the benefits of reduced fees is North Carolina. Business Insurance reported that two states announced workers’ compensation rate reductions in 2019, led by a 17.2 percent drop for the Tar Heel State. What could have caused this and how does it affect small business owners? Here’s what you need to know.

    An injured employee filling out a claim for a small business dealing with high worker’s compensation claims.

    What Does the Rate Decrease Mean for Small Businesses Owners in North Carolina?

    There’s nothing uniquely different about North Carolina’s workers’ compensation laws, so that isn’t the reason why the state’s decrease in rates is markedly higher than others. Instead, the first takeaway from the announced rate decrease is that businesses in North Carolina have focused on better implementations of safety programs and procedures in the past year. As Business Insurance notes, employers are reporting fewer claims overall and that the claims are less severe on average than in the past.

    Another potential explanation could involve the growth of non-manual-labor-intensive jobs. These jobs are less prone to workplace injuries, so an increase of employees in these fields relative to other industries naturally lowers the average number of claims.

    Of course, the 17.2 percent rate drop doesn’t mean that business owners can simply enjoy the statewide trend and rest on their laurels. Since every business can deal with different insurance carriers, industries, and other factors; that drop likely represents an average decrease and not a guaranteed rate drop. In that case, it’s possible that your business could see an increase in rates despite the statewide trend. To combat this, you’ll want to take some of the same measures that helped North Carolina achieve such notable rate drops.

    What Can Small Business Owners Can Do to Lower Their Workers’ Compensation Rates?

    There are several ways that you can help protect your business and limit the chances of claims. One of the most notable methods to do this is through safety programs. A successful workplace safety program can help employees avoid dangerous situations, as well as provide some additional benefits for your business. Another way to help lower worker’s compensation rates is to conduct risk assessments. These assessments can identify potential areas where your business is non-compliant with OSHA laws. In addition, they can highlight other areas that are technically fine in terms of safety codes but could still be improved.

    Creating a safer work environment isn’t the only way to help lower worker’s compensation claims. You can also take a proactive approach to claim management. If an employee has an incident that results in a back injury, it’s important to go through the proper process to show that your business took all the right steps, such as filing the first report of injury and helping the employee find an appropriate doctor. After that, a good return-to-work plan can help the employee ease back into their responsibilities without negatively affecting their injury.

    It’s also important to note that not all worker’s compensation claims are legitimate. Instances of fraudulent claims are uncommon—ABC News notes that worker’s compensation fraud accounts for roughly one or two percent of cases—but the costs associated with them can increase your rates if gone unnoticed. If you think that a claim may be fraudulent, you can work with claims management experts to investigate the situation and make sure that your business is protected in another way.

    How a PEO Can Help You Manage Worker’s Compensation Claims

    Proper worker’s compensation claim management is important, but it also requires a lot of work in an area that you may not have the time or expertise to properly handle. As a Professional Employer Organization, GMS has experts in locations across the country who can help you take the right measures to help lower your rates and protect your business.

    If you own a business in North Carolina, our Charlotte branch can work with you to protect your company and its employees. If you’re not based in the Tar Heel State, don’t worry—we have locations across the country that 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 prepare for the future.

  • Probably. Maybe. Maybe not. Who knows? Do you know?

    As a Sales Rep for a Professional Employer Organization (PEO), I talk with small to medium-sized business owners on a day-to-day basis. I never cease to be amazed at how well they know their company, their employees, their business, their industry, and their competition. When you spend 80 hours a week working on your business, you become an expert.

    Yet, these same business owners will often tell me, “I don’t know what I don’t know. And even if I knew what I didn’t know, I don’t always know how to find out what I need to fix, remedy, or comply with the situation.” Of course, they don’t. They’re devoting all their time to making a better product and/or a better company.

    If you’re new to the game or haven’t spent a lot of time thinking about this, you might be wondering what regulations I’m speaking of in the title of this post. After all, those are geared towards large companies, not small, independent businesses, right?

    Compliance chalkboard for small businesses. 

    Federal Regulations for Business of All Sizes

    Some things are required no matter the size of your company. For example, you must make sure you have I-9 forms on all your employees and that they’re filed correctly.  There are hefty fines tied to misfiled or missing forms. You also need to have the required employment posters hanging in prominent places for your employees so they can see what their workplace rights are.

    Other laws are based on how many employees you have. For example, if you have between one and 10 W-2 employees, these laws apply to you:

    • Fair Labor Standards Act (FLSA)
    • Employee Polygraph Protection
    • Equal Pay Act
    • Consumer Credits Protection Act
    • National Labor Relations Act

    Once you have between 11 and 14 employees, you have to become compliant with OSHA and all federal health and safety standards. That includes all the reporting that comes with it.

    From 15 to 19 employees, you need to start paying attention to the following regulations:

    • Title VII, Civil Rights Act
    • Title I, Americans with Disabilities Act
    • Pregnancy Discrimination Act

    At 20 employees, you have to worry about COBRA (if you’re offering benefits) and Pregnancy Discrimination Act. And it goes on and on and on… you get the idea.

    How to Stay in Compliance with Federal Regulations

    How does a business owner know what they need to be compliant with while working full-time on their business? There are several ways I can think of:

    • During all your downtime, read up on federal regulations and keep tabs on all the changes as they happen
    • Pay an attorney to keep you abreast of these things
    • Hire someone on staff whose sole responsibility is keeping track of these things

    These are all good options, but many small business owners find the best option is to partner with a Professional Employer Organization, like GMS, that will not only keep you compliant but will also take on all the regulatory liability of your employees. 

    Recent studies show that small businesses that use PEOs grow 7 to 9 percent faster, have 10 to 14 percent lower employee turnover, and are 50 percent less likely to go out of business. Contact GMS today to learn how we can help take over these administrative burdens, allowing you to focus on your core business.

  • Are you prepared for an OSHA inspector to arrive at your door? OSHA performed roughly 72,000 federal and state plan inspections in 2018 alone and all it takes to earn an unexpected visit from an inspector is a complaint from an employee or operating in a high-hazard industry.

    Nobody plans to have an OSHA inspection occur at their place of business, but it’s important to act accordingly if it does. Here’s what you should and shouldn’t do before, during, and after an OSHA inspection to protect your business.

    An OSHA inspector reviewing the worksite of a small business. 

    Do: Invest in Workplace Safety

    One of the most important steps you can take should happen well before an OSHA inspector arrives. Investing in workplace safety benefits your business in two big ways. First, a culture of safety with set policies, procedures, drug tests, and other measures can minimize injury risks and help protect your workforce. Second, these policies, along with proper reporting for any incidents, will show OSHA that you’ve done your part to make your job site a safe place. In terms of what you do to protect your business and potentially lower your workers’ compensation claims, check out our list of dos and don’ts for workplace safety.

    Don’t: Assume Your Existing Policies are Fine After Years of Inaction

    If you already have an employee handbook with various workplace safety policies in place, that’s great. If it’s been a while since you’ve reviewed those policies, they may not be so helpful after all.

    There’s so much that changes over time. Between new legal requirements, the growth of your business, and other factors, what may have been a solid set of safety policies at one point could be outdated. A regular review of your policies with a risk management expert can help you keep your handbook updated and your business in a good spot in case an OSHA inspector ever stops by for a visit.

    Do: Be Welcoming and Professional if An Inspector Arrives

    The arrival of an OSHA inspector isn’t good news, but it’s important to be civil toward whoever arrives to scope out your space. Any attempts to prevent the inspector from entering can be perceived as obstruction, which has some major consequences including criminal penalties. Instead, welcome the inspector in and be friendly and honest. Demonstrating good faith can go a long way toward the reduction of any resulting penalties, so don’t be afraid to work with the inspector and make the process a lot quicker and easier.

    Don’t: Provide Information Unasked

    Just because you should be courteous and honest doesn’t mean you need to tell the inspector everything right away. It’s important to be honest when an inspector asks questions, but as the Society for Human Resource Management suggests, “Once you’ve answered a question, stop talking.” As long as you succinctly and honestly answer the inspector’s questions, you don’t have to volunteer any other information unless it’s requested.

    Do: Gather Information

    The inspector isn’t the only person allowed to ask questions. When the inspector first arrives and holds an opening conference for the visit, ask to see some credentials and get some details about what is being inspected and the nature of the visit. The inspection can also provide you with ways that can potentially improve the overall safety of your workplace. Feel free to ask the inspector if there are ways that you can improve any existing hazards – you never know if he or she may have a couple inexpensive solutions observed from other worksites.

    Don’t: Leave Inspector Alone

    Once an inspector is on your premises, it’s important to make sure that someone from your business always tags along. Not only will this person be able to answer any questions and assist with the inspection process, he or she can document the same information as the inspector. If the inspector takes pictures of something, do the same. If he or she takes down measurements, record that information. This information may not be readily available to you, so saving these details can help in case you need to defend your business against a citation.

    Do: Consider Your Options After the Inspection

    It can take months for OSHA to issue a citation. If your business is cited, you’ll want to address the hazards noted in the citation. You’ll also need to decide if you want to contest any violations (or abatement requirements), aim for early settlement, or go for voluntary compliance. The right path is heavily dependent on the specifics of your case, so you’ll want to talk to experts to see which course of action makes the most sense.

    Whether you’re concerned about potential OSHA inspections or want to take a proactive approach to workplace safety, GMS can help. As a Professional Employer Organization, we have the experts it takes to help you create a culture of safety and protect your business against safety violations, lost work hours, and costly fines and workers’ compensation rates. Contact GMS today about risk management strategies or any of our other HR management services.

  • A workplace accident can be a life-changing event, both for the person injured and an employer. A serious injury can change someone’s life, which in turn can place your business under the spotlight for both the injured employee’s family and OSHA.

    While you can’t heal someone’s injury after the fact, there are ways that you can definitively respond to workplace injuries to help avoid future accidents and avoid OSHA intervention. Here’s an example of how GMS helped one company avoid OSHA scrutiny and put practices in place to prevent additional workplace injuries.

    Hard hats in place to improve workplace safety for employees. 

    A Swift Reaction to Workplace Safety After a Fall

    The incident in question starts with an employee on top of a loaded flatbed trailer. At some point, the employee fell off the trailer and broke his neck in two places. After falling, the injured employee couldn’t move and laid motionless for roughly 30 minutes before another worker found him. The injured employee was then rushed to the hospital and spent 12 days in the intensive care unit before being moved to the physical therapy unit.

    While the injured employee was being treated, there was more work to be done back at the site of the accident. Within 60 minutes of the accident, a GMS safety coordinator was on the scene to investigate the incident and interview everyone directly involved with the incident. 

    Meanwhile, a claims specialist was in constant communication with the company’s owner, the witness, the injured worker’s spouse, and the safety coordinator. During this time, the claims specialist was able to make sure that the safety coordinator had accurate information for him to proceed with the investigation and create a Standard Operating Procedure (SOP) to make sure that the company didn’t have another employee suffer the same fate.

    Five days after the accident, OSHA sent the company a letter requesting a copy of our investigation. The coordinator emailed the investigation to OSHA along with a list of preventative measures the company was implementing to prevent these types of accidents from happening again. The attached SOP detailed that employees were no longer allowed to climb on loaded trailers. It also included information on a tool employees would now use to tarp the load without having to climb on it. Dates for future trainings were also set to teach employees how to use this tool and prevent future injuries. 

    Within a week of OSHA’s initial request, the organization reviewed the materials and plans GMS put in place and decided not to take any further action. In addition, OSHA didn’t assess any penalties for the accident.

    Take the Right Workplace Safety Precautions to Protect You and Your Employees

    As tragic as the accident was for everyone involved, it could have been much worse for this company. By acting swiftly and decisively, the company now has practices in place to protect more employees from catastrophic injuries. The investigation and new workplace safety practices also helped prevent the company in question avoid additional issues from OSHA.

    With millions of nonfatal workplace injuries occurring every year, it’s crucial to have plans in place to not only keep your employees safe, but also protect your business from OSHA repercussions. 

    Want to make your workplace safer? Contact GMS today about protecting your business.

  • Running a business is difficult enough. Keeping track of the Occupational Safety and Health Administration’s regulations makes your job as an employer even more complicated.

    It’s not uncommon for small business owners to not fully understand the OSHA regulations that apply to their business – after all, there are a lot of them. However, noncompliance with OSHA regulations can not only put your employees in potential danger, but also lead to costly penalties that will set your business back financially. 

    An inspector with an OSHA compliance checklist with requirements for small business owners. 

    Who is Covered Under OSHA?

    The general rule of thumb is that if your business has employees, those employees are likely covered by federal OSHA regulations. There are a few exclusions to this, such as people who are self-employed, public sector employees, and family members who work on a farm. 

    Even with those omissions, the vast majority of businesses must meet OSHA safety and health requirements. However, businesses with 10 or fewer employees are defined as partially exempt by OSHA. This partial exemption means excludes these small business from some key responsibilities.

    Another important note is certain states have their own OSHA-approved health and safety plans. OSHA still monitors these state plans, but the state laws take precedence over federal rules. As such, you’ll need to double check your state’s exact regulations to see if they differ from federal OSHA laws. OSHA includes a map with all the active state health and safety plans and contacts on its website.

    OSHA Requirements for Small Business Owners

    Whether your business is partially exempt or not, OSHA affects your company in several ways. Employers have multiple responsibilities to ensure that their business is compliant with OSHA standards. 

    Provide a workplace free from serious recognized hazards

    The first major OSHA requirement for employers is to conform workplace conditions to applicable OSHA standards. These standards mandate that employers should identify and correct any safety and health hazards present in the workplace. If any hazards can be eliminated or reduced through feasible changes in working conditions, then those changes must be made to comply with OSHA standards.

    These dangers can vary greatly depending on the nature of your business. For example, a construction site may require safety measures such as fall protection, guards on machines, and removal of hazardous waste. Meanwhile, adding ergonomic seating may limit health risks in office environments. For an exact list of regulations, please refer to OSHA Standards – 29 CFR.

    Part of these changes often include ensuring that employees have the proper tools and equipment to complete their jobs safely. You must provide the correct personal protective equipment (PPE), such as gloves, eye protection, and more. Any tools and equipment must be properly maintained. Furthermore, it’s a small business employer’s responsibility to provide safe tools and equipment – employees should not be required to provide their own PPE aside from everyday clothing and items.

    Give employees the information necessary to protect themselves

    Another key OSHA requirement for small business owners is to provide employees freedom in their right to information. As an employer, you are expected to provide your workers with a few different forms of information.

    • On-site OSHA poster
    • Hazardous chemical details
    • Employee training

    On-site OSHA poster

    Every workplace has OSHA poster requirements for small businesses and large businesses alike. Regardless of company size, each business should have an OSHA or state-plan compliant poster on premises. Employers are required to display this poster in a prominent place so that employees can review their rights under OSHA law. An approved OSHA “It’s the Law” workplace poster is available for free online.

    Hazardous chemical details

    Any hazardous chemical containers must be properly labeled. These labels should not only identify the hazardous substance, but also include appropriate warnings. You should also keep Safety Data Sheets (SDSs) for every substance that your employees may encounter. These SDSs must be readily available to workers so that they can review them and learn about the chemicals, their effects, exposure prevention, and emergency treatment.

    Employee training

    OSHA requires employers to train employees about potential dangers and what they can do to stay safe on the job. Per OSHA rules, there are four different topics that should be addressed during employee training procedures.

    • Hazardous substance training. This training should include how to read SDSs and what to do when handling any incidents. 
    • Blood-borne pathogen training. Any employees who may be exposed to blood-borne pathogens during regular duty should be trained about how to deal with blood-borne pathogens in case of an emergency.
    • Emergency situation training. Employees should be trained on what to do in emergency situations, such as how to exit the building. 
    • OSHA inspector training. Employees should be trained on what to do if an OSHA inspector ever visits your workplace.

    Employers must communicate training in a language and vocabulary workers can understand. The method of communication depends on how many employees you have. Businesses with 10 or fewer employees can orally communicate a training plan to meet OSHA standards. Businesses with more than 10 employees must share a written plan that is kept in the workplace and available for employees to review at all times.

    Recordkeeping requirements

    Depending on the size of your business, OSHA may require you to keep records of serious work-related injuries and illnesses. Every accident should be recorded in the OSHA 300 log available online. Employers do not need to record minor injuries that only require first aid. Instead, employers should record the following injuries and illnesses listed by OSHA.

    • Any work-related fatality
    • Any work-related injury or illness that results in loss of consciousness, days away from work, restricted work, or transfer to another job
    • Any work-related injury or illness requiring medical treatment beyond first aid
    • Any work-related diagnosed case of cancer, chronic irreversible diseases, fractured or cracked bones or teeth, and punctured eardrums
    • Special recording for work-related cases involving, needlesticks and sharps injuries, medical removal, hearing loss, and tuberculosis

    It’s also important to note that recordkeeping is another area affected by partial exemption. Businesses with 10 or fewer employees do not need to maintain OSHA injury and illness records unless OSHA or the U.S. Bureau of Labor Statistics specifically instructs them to in writing. Employers in certain low-hazard industries are also exempt from this requirement.

    Reporting requirements

    OSHA is going to want to know about serious accidents or illnesses that occur at your workplace. These reporting requirements change depending on the severity of the issue. To start, employers are required to record any minor accidents and illnesses in the OSHA 300 log within seven days. 

    More serious incidents require added urgency and reporting measures. Workplace accidents that result in at least one death or send three or more employees to the hospital must be reported within eight hours. Meanwhile, employers must report work-related inpatient hospitalizations, amputations, and eye loss within 24 hours. For these types of incidents, you can report to OSHA through the following means:

    Once an incident occurs, you must post OSHA citations either at or near the work area involved. These citations should stay posted for at least three working days or until the violation is corrected (whichever is longer).

    Whistleblower protection

    OSHA will crack down hard on any employers who discriminate against employees who file complaints alleging OSHA violations. The Whistleblower Protection Program disallows employers from taking adverse actions against employees who engage in protected activities. These actions include, but are not limited to:

    • Firings or layoffs
    • Demotions
    • Denial of overtime or promotion
    • Reduction of pay or hours
    • Intimidation or harassment
    • Denial of benefits

    Potential OSHA Violations for Noncompliance

    While there are several different criteria to maintain OSHA small business compliance, not all violations are viewed in the same light. There are four different types of OSHA violations, each of which have distinct penalties.

    • Willful violations. Any violations that OSHA deems were intentionally and knowingly committed by an employer with plain indifference to the law. Penalties for willful violations can range from $5,000 up to $70,000 for each offense.
    • Serious violations. These violations occur when an employer knew, or should have known, about a hazard that would likely lead to death or serious physical harm. Serious violations can lead to penalties of up to $7,000.
    • Other-than-serious violations. These violations are also tied to the safety and health of employees, but the hazard in question probably wouldn’t lead to death or serious physical harm. Other-than-serious violations can result in penalties of up to $7,000.
    • Repeated violations. A business that commits violations that are similar to past offenses are committing repeated violations. OSHA can penalize businesses up to $70,000 for every repeated violation.

    Prevent OSHA Small Business Issues with Proactive Risk Management

    Workplace hazards are a major problem for any small business. Workplace injuries and illnesses can not only impact the wellbeing of your employees, but also cause OSHA to visit your business. Fortunately, there are ways you can mitigate, or even avoid, OSHA  inspections and penalties.

    At GMS, we help business owners take control of workplace safety through proactive risk management. Our team works with you to provide onsite consulting, training, and jobsite inspections to identify potential problem areas and help your small business stay compliant with OSHA regulations. We’re also there to handle key investigations and deal with OSHA on your behalf in case an incident ever does occur.

    Need a partner that can help your small business stay ahead of risks and avoid costly penalties? Contact GMS today about how we can save you time, money, and plenty of headaches by helping you take control of critical HR functions.