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  • New York has always been at the forefront of progressive legislation, and this time, it has set a benchmark poised to change the landscape of working families’ lives. April 19, 2024, marked a historic moment for pregnant employees in New York state. Governor Kathy Hochul signed into law an unprecedented amendment to the New York Labor Law  § 196-b, establishing a standalone entitlement to paid prenatal leave, the first of its kind in the United States.

    Understanding The Paid Prenatal Leave Amendment

    Under this new law, expectant mothers can now use up to 20 hours of paid leave within a 52-week period to attend prenatal medical appointments and procedures. This initiative is part of New York’s final budget for fiscal 2025 and is a significant stride in supporting prenatal health and well-being.

    Key Features Of The Law

    • Immediate availability: The 20 hours of paid prenatal leave is immediately available upon employment, ensuring that pregnant employees don’t have to accrue this benefit over time.
    • Hourly increments: Leave can be taken in hourly increments, offering flexibility to pregnant employees.
    • Compensation: Employees will be compensated at their regular pay rate or the applicable minimum wage, whichever is greater, for the duration of the leave.
    • Additional leave: This paid prenatal leave is in addition to existing paid sick and family leave entitlements.

    The Impact On Employers And Employees

    Employers must update their leave policies to reflect this change by January 1, 2025. This law not only benefits employees but also encourages employers to cultivate a supportive workplace culture that values family and health.

    Employers should revise their leave policies to incorporate the new paid prenatal leave. In addition, it’s crucial for HR and benefits teams to be well-informed about the law and its implications. Pregnant employees now have a more robust safety net for their prenatal care without worrying about financial repercussions. This law emphasizes the importance of health and family, enabling expectant mothers to prioritize prenatal care.

    The Sunset Of COVID-19 Paid Sick Leave Law

    Coinciding with this development, the final budget also sets July 31, 2025, as the end date for the COVID-19 Paid Sick Leave Law that has been in effect since March 2020. The COVID-19 Paid Sick Leave Law provides employees who are subject to a COVID-19 mandatory, precautionary quarantine, or isolation order, with immediate paid or unpaid time off specific to the current crisis. Initially, Governor Hochul proposed that it end a year earlier, but the extension provides a transition period for employers and employees to adjust to post-pandemic norms.

    Looking Ahead: A Progressive Future For Work And Family

    New York’s paid prenatal leave law is not just a legislative win; it’s a societal advancement. It reflects a growing understanding that the health of future generations starts with the care we provide today. Employers and employees are stepping into a future where work-life balance is not just an ideal but a practical reality that supports family planning and prenatal health.

    On top of all the other hats you wear as a small business owner, it’s important to stay on top of ever-changing laws and regulations. Fortunately, GMS, a certified professional employer organization (CPEO), is here to help. GMS’ HR experts ensure that small business owners not only comply with the new paid prenatal leave mandate but also thrive under it. By managing human resources, employee benefits, regulatory compliance, and payroll, GMS provides the expertise and peace of mind that allows business owners to focus on their core operations. We offer a buffer against potential administrative pitfalls and inform businesses of evolving legislation. In essence, a partnership with GMS equips small businesses with the tools and support necessary to foster a supportive work environment that values the health of employees and their families, all while maintaining the business’s bottom line. With the assistance of GMS, small businesses in New York can seamlessly integrate this new law into their policies. Interested in learning more? Contact us today to learn more.

  • As of January 1st, 2024, California will be ushering in a new era of employee rights and benefits. Thanks to Senate Bill 616, a groundbreaking piece of legislation passed in 2023, significant changes are coming to the state’s paid sick leave (PSL) policies. These changes represent a huge win for employees across California, as they mark a significant increase in PSL entitlements, accrual caps, and front-loading options. Continue reading to learn more about this law and what it means for California business owners and employees.

    Increased PSL Entitlement

    The most notable change that employees will enjoy under the revised law is an increase in PSL entitlement. Previously, employees were entitled to 24 hours or three days of paid sick leave per year. With the new law taking effect, this entitlement will jump to a more substantial 40 hours or five days of paid sick leave per year. This adjustment ensures that employees have more time to take care of their health and well-being without worrying about lost income.

    Accrual Cap And Front Loading

    In addition, the new law introduces changes to the accrual cap and front-loading options. In the past, employees could accrue up to 48 hours or six days of PSL per year. This cap will now be raised to 80 hours or 10 days per year. This means that employees will be more flexible in managing their paid sick leave and can accumulate more time for unforeseen health issues.

    Front-loading is another exciting aspect of this law. Front-loading means employers give employees their paid sick leave hours in one lump sum at the beginning of the year. If employers choose to front-load PSL for their employees, the law mandates specific timelines for doing so. By the 120th calendar day of employment, employees must receive no less than 24 hours of PSL. By the 200th calendar day, they should have a total of 40 hours of PSL. This feature ensures that employees can access their PSL benefits early in their employment, offering peace of mind from the very beginning.

    Rate Of Accrual

    The rate of PSL accrual remains unchanged, with employees earning one hour of PSL for every 30 hours worked. This fair system ensures that employees accrue their benefits gradually over time, aligning with their actual working hours.

    Local PSL Laws Preemption

    Another significant aspect of the new law is the prohibition of local PSL laws from regulating certain issues related to PSL. This means that state law will take precedence over any local regulations, creating a more uniform system across the entire state. While local laws were once a patchwork of rules and regulations, this new provision will streamline PSL policies and make it easier for employees and employers to understand their rights and obligations.

    Navigating The Changing Landscape

    With these significant changes in California’s paid sick leave laws, business owners might wonder how they can best navigate the evolving landscape while ensuring compliance and providing the best benefits to their employees. If you’re a business owner in California wondering this, we’re here to share the benefits of partnering with a professional employer organization (PEO) like GMS. GMS’ HR experts assist with HR management, employee benefits, and navigating the intricate maze of labor law compliance. We guide business owners to streamline their operations, stay ahead of evolving regulations, and foster an empowering work environment.

    Partnering with GMS amidst this complex landscape of California equips business owners to seamlessly transition into the new PSL era. This ensures not only compliance with laws and regulations but also the ability to allure and retain top-tier talent in the competitive job market. Interested in learning more? Contact our HR experts today.

  • In recent years, there has been a growing trend in the U.S. to provide paid sick leave for employees, with California being one of those states. While many states don’t require paid sick leave, California mandates it. Senate Bill 616 (SB 616) was introduced on February 15th, 2023, and would increase the number of paid sick leave days for California employees by amending Labor Code Section 246. Labor Code Section 246, also called the California Paid Sick Leave Law, requires employers to provide and allow employees to use at least 24 hours, or three days, of paid sick leave per year.

    Under the current law, employees must work for at least 30 days for the same employer in a 12-month period in order to qualify. The accrual begins on the employee’s hire date. Employers can limit the paid sick leave employees can use in one year to 24 hours or three days.

    Understanding SB 616

    If SB 616 passes, it would raise the employer’s authorized limit on paid sick leave to seven days or 56 hours. The current law in California allows an employer to limit an employee’s total accrual of paid sick leave to 48 hours or six days, provided that an employee’s rights to accrue and use paid sick leave are not otherwise limited. SB 616 would increase those accrual thresholds for paid sick leave to 112 hours or 14 days for unused sick time. In addition, SB 616 would increase the sick leave accrual rate for providers of in-home supportive services and waiver personal care services to 56 hours or seven days each year of employment. SB 616 applies to all employees who work in California for the same employer for at least 30 days within a year from the start of employment.

    You are not required to accrue or carry over paid leave if employees receive their full amount of leave at the beginning of each calendar year or 12-month period. In addition, you’re not required to compensate employees for their accrued, unused sick days upon termination, resignation, or retirement.

    If passed, SB 616 would go into effect beginning January 1st, 2024.

    Your Responsibility As A Business Owner

    As a new bill is waiting for approval, it’s essential as a business owner to take proactive steps to ensure you comply with the new law. If you’re a business owner in California, consider revising your current leave policies, if needed. The bill will require you to provide a written notice about the amount of paid sick leave available. At GMS, we understand this can be overwhelming and challenging to handle on your own. When you partner with us, we provide you with a hands-on approach and tackle these challenges together. Our HR experts will implement new HR policies in your handbook, write your written notice in reference to the updated paid sick leave bill, and so much more. Let us help you sleep peacefully at night and contact us today to get started!

  • The Michigan Court of Claims ruled earlier this year that the legislature violated the Michigan Constitution in 2018 by enacting, and within the same session amending, two ballot initiatives:

    • One requiring higher minimum wages
    • One requiring paid sick leave

    The 2018 ballot initiative was originally designed to raise the state’s minimum wage between 60 and 75 cents yearly until it reached $12.00 in 2022. The initiative was then intended to tack the minimum wage to inflation. Since employers and the relevant state agencies may not be able to implement the changes required by its decision immediately, the court has extended its stay until February 20th, 2023.

    What Employers Should Know 

    Starting February 2023, the standard minimum wage in Michigan will increase from its current $9.87 per hour to at least $12.00 per hour. Because the original 2018 ballot initiative would have increased the standard minimum wage to $12.00 effective on January 1st, 2022, the amount could increase in February 2023. In addition, the minimum wage for tipped employees will increase from its current $3.75 per hour to at least $9.60 or even higher.

    Paid Sick Leave

    Under the Earned Sick Time Act, Michigan employers must provide their employees 72 hours of sick leave annually. For employers with at least 10 employees, all 72 hours of leave must be paid. Small employers are to provide at least 40 hours of paid sick leave annually, while the balance of the 72 hours of leave may be unpaid.

    Partnering With GMS For Payroll Administration 

    Payroll is costly in both money and time. You probably know how your payroll responsibilities impact your operational efficiencies and bottom line. Between tax calculations, payroll, compliance, and all other payroll functions, there’s an insufficient amount of time to manage it properly. Stay up to date with regulatory changes and ensure your employees are being paid correctly by partnering with GMS. Contact us 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.