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  • Amidst the ever-evolving labor and workforce development landscape, the New Jersey Department of Labor recently unveiled its proposed regulations for the state’s groundbreaking Temporary Workers’ Bill of Rights (TWBR). To safeguard the rights of temporary laborers, this legislation indicates a new era of enhanced protection and equitable treatment. However, as with any revolutionary measure, challenges and uncertainties lie ahead.

    Within the past few months, the law’s notice and retaliation provisions have come into effect, accompanied by the issuance of a mandatory notice form and the compilation of FAQs.

    Pay Equity And Beyond

    At the heart of the TWBR stands its unwavering commitment to pay equity for temporary laborers engaged in substantially similar work. While the intention is admirable, the path to compliance is complex. One such challenge arises from the ambiguity surrounding calculating benefits for pay parity.

    The proposed regulations shed some light on the matter, defining benefits to include a range of fringe benefits such as health insurance, life insurance, disability insurance, and more. However, the lack of precision in determining the average cost of these benefits has left employers grappling with uncertainty. Clarity on these benefit calculations is essential to ensure businesses can confidently adhere to the law.

    Placing Placement Fees In Perspective 

    Another area demanding explanation is the placement fees for temporary laborers transitioning to permanent positions. While the TWBR allows temp agencies to charge placement fees, the specifics of how these fees should be calculated are unclear.

    The proposed regulations offer step-by-step guidance, but complications arise when temp agencies must ascertain the daily cost of benefits provided during assignments with third-party clients. The path to accurate placement fee calculation remains unclear, with the scope of benefits left undefined.

    Strengthening Protections With Notice And Anti-Retaliation Measures 

    As of May 7th, 2023, the notice and retaliation provisions of the TWBR have been set into motion, bolstering safeguards for temporary workers. Temp agencies must now utilize state-authorized forms, ensuring essential information reaches workers without fail. Yet, further clarity on the practical aspects of these requirements could prove beneficial. Establishing methods for recording receipts and defining the rebuttal of retaliation presumptions could enhance the effectiveness of these measures and offer greater security to temporary workers.

    Under the provisions of the law, third-party clients are obligated to furnish specific information to the temp agency within seven days following the conclusion of the workweek during which the temporary laborer was engaged. The regulations emphasize that failure to provide the required information will not be considered a violation, provided the third-party client cannot submit the time records due to circumstances beyond their control. However, the regulations do not explicitly outline the circumstances that would be deemed beyond their control. Consequently, employers must exercise caution, as non-compliance could lead to penalties of up to $500 per violation.

    Litigation Looms On The Horizon

    While the TWBR represents a commendable stride towards empowering temporary workers, it has not escaped legal scrutiny. Ongoing litigation seeks to delay the implementation of remaining provisions, with challenges centered on constitutional grounds. Temp agencies should remain vigilant, closely monitoring developments in this case that could impact the implementation and enforceability of the TWBR.

    Consider Partnering With A PEO Like GMS 

    For business owners in New Jersey, the decision to collaborate with a professional employer organization (PEO) opens a gateway to unparalleled support and prosperity. In the dynamic and ever-changing landscape of New Jersey’s business environment, a PEO is a reliable partner, adeptly navigating the complexities of HR, payroll, benefits administration, and risk management. By entrusting these critical functions to a seasoned PEO like Group Management Services (GMS), business owners can unburden themselves from administrative hassles and compliance worries, allowing them to redirect their focus toward strategic growth and innovation.

    With access to a wealth of HR expertise, cutting-edge technology, and comprehensive employee benefits packages, businesses can attract and retain top talent, fostering a thriving and engaged workforce. Embracing a partnership with GMS is not just a business decision – it’s a visionary step toward building a resilient and successful business for years to come. Get a quote today!

  • Equal pay for equal work has long been a topic of concern in the fight for gender equality. In Pennsylvania, significant strides are being taken to address this issue as the state legislature contemplates measures to expand the state Equal Pay Law and the Pennsylvania Human Relations Act (PHRA).

    The proposed changes seek to redefine the concept of “equal work” and provide a framework for employers to justify pay differentials based on legitimate factors. Continue reading to explore the latest developments surrounding this important legislation and discuss its potential impact on employers and employees.

    Expanding The Scope: Senate Bill 36

    At the forefront of these developments is Senate Bill 36, currently under review by the state legislature’s Labor and Industry Committee. This bill aims to broaden the existing Equal Pay Law by replacing the term “equal work” with “comparable work.” While this change may seem subtle, it introduces the complex challenge of defining what constitutes “comparable work.”

    To address this challenge, the amendment defines comparable work as work that shares substantial similarities in terms of skill, effort, responsibility, and working conditions. In addition, the legislation clarifies that job titles or descriptions alone should not be the sole determinant of comparability.

    Protecting Employers: The Bona Fide Factor Defense 

    Recognizing that pay differentials can arise from various legitimate factors, the proposed legislation introduces the “bona fide factor defense.” Employers can utilize this defense if they can demonstrate the following:

    • The wage differential is based on a bona fide seniority system, merit system, a system that measures earning by quantity or quality of production or sales, or factors other than sex, such as education, training, or experience.
    • Each factor relied upon is reasonably applied
    • One or more factors accounted for the entire wage differential

    However, it’s crucial to note that the bona fide factor defense is available only if the employer can prove that it is job-related, consistent with business necessity, and not derived from a sex-based differential in compensation. This legislation defines “business necessity” as a legitimate business purpose that effectively fulfills the intended purpose, and the defense will not be applicable if an alternative practice can serve the same purpose without creating a wage differential.

    Challenges And Considerations For Business Owners

    While the proposed legislation aims to address pay equity concerns, it also presents challenges for employers. The focus on job titles and responsibilities as insufficient factors for determining comparability may require employers to scrutinize pay differentials within single job titles. This could result in an influx of claims requiring employers to justify their pay practices before the Pennsylvania Human Relations Commission.

    Should this bill become law, employers with employees in Pennsylvania will need to adapt and establish mechanisms to justify their pay differentials. Proactively addressing potential disparities and ensuring that pay decisions are based on legitimate factors will be crucial for compliance and maintaining a fair and inclusive work environment.

    How A PEO Can Support Pennsylvania Business Owners

    As Pennsylvania’s legislature considers expanding the state Equal Pay law and the PHRA, businesses must be prepared to navigate potential challenges and ensure compliance with evolving regulations. However, a professional employer organization (PEO) like GMS can assist business owners in Pennsylvania. We provide comprehensive HR solutions, including expert guidance on pay equity and ensuring compliance with the amended legislation. By partnering with GMS, business owners can navigate the complexities of the law while maintaining a fair and inclusive work environment. With GMS by your side, Pennsylvania business owners can confidently face the future and focus on what they do best – growing their businesses and supporting employees. Contact our HR experts today to learn more about how we can help your business.

  • Pay discrimination has been the source of workplace conflict for decades. However, the pressure for pay transparency has recently reached new levels. People are now aware of the disparities that exist in wages based on gender, race, and other protected classes and demand action. Employees want fair compensation for their work, and top talent flocks to companies that are transparent with their salaries and benefits to the public.

    However, in several states across the country, pay transparency is not just encouraged but mandatory. New laws and regulations require companies to share salary information upfront in job postings and prohibit employers from requesting an applicant’s salary history.

    Wage transparency is necessary for all businesses to establish employee trust, attract new talent, and benefit your business’s reputation. It’s a compliance issue employers must take seriously to avoid potential litigation.

    What Is Pay Equity?

    Pay equity is the compensation approach ensuring employees are paid fairly for their work, regardless of gender, race, ethnicity, or other protected classes. The process goes beyond removing biases related to personal factors, but includes the analysis of other employee aspects, such as education and previous work experience, to determine fair pay.

    Regulations surrounding pay equity first went into law in the early 1960s. One of the most well-known regulations is the Equal Pay Act of 1963 which prohibits pay differences between men and women who have equal work at the same business. The following year, Title VII of the Civil Rights Act of 1964 strengthened pay equity by barring pay discrimination based on race, color, and national origin.

    While legislation has made significant strides to protect workers, discrimination is still prevalent. By implementing policies within your company, you can guarantee wage equality for your employees.

    Why Does Pay Equity Matter? 

    Pay equity is crucial as it directly reflects how you treat your employees and affects their well-being. It’s a matter of fairness; employees who perform the same work should receive the same pay. Discrimination based on personal beliefs or backgrounds is simply unacceptable in the workplace.

    While fair, transparent wages should be the standard, it also benefits you as the employer as it attracts and retains top talent. Open communication between upper management and employees about pay establishes trust. Your employees are more likely to stay with a company that pays them fairly and offers opportunities for growth and advancement. A happy workforce leads to a decrease in turnover and an increase in both productivity and overall morale.

    Pay equity can be equally harmful as it is beneficial if you ignore new regulations. These laws vary from state to local government and range in severity, so you must stay current on legislation in your area. Presently, states including Colorado, Maryland, California, and New York are among the handful of states taking severe action to implement transparency measures. Some of the most popular regulations include:

    • Mandating the inclusion of minimum and maximum salary ranges in job listings 
    • Prohibiting employers from requesting an applicant’s salary history
    • Prohibiting the discrimination of applicants who request salary information or refuse to provide their salary history 
    • Requiring employers to provide the salaries of similarly positioned employees
    • Requiring the disclosure of employer benefits for each job opening 

    How Do Raises Relate To Pay Equity?

    Salaries don’t start and end after onboarding; annual bonuses and raises continuously affect wages and, therefore, must be a part of your pay equity policies. They help motivate and retain employees by providing opportunities for growth and advancement, increasing the likelihood of staying with a company.

    Equity increases would be a raise in salary after finding a discrepancy in an employee’s compensation in an effort to reconcile the issue. These can come directly from conducting a pay equity analysis which examines your current pay practices to discover any disparities.

    How To Implement Pay Equity And Raises Effectively 

    Promoting pay equity in your workplace requires a commitment to fairness and a willingness to examine your current pay practices. Implementing pay equity and raises effectively requires careful planning and communication. Here are some tips for implementing pay equity and raises effectively:

    • Conduct a pay equity analysis: You must understand where you stand before implementing pay equity. Conduct a pay equity analysis to identify any disparities in pay based on gender, race, ethnicity, or other protected classes. This analysis helps identify any areas where pay equity may be lacking and provides a roadmap for addressing these disparities. 
    • Develop a pay equity policy: Once you’ve conducted a pay equity analysis, it’s crucial to develop a pay equity policy that outlines your commitment to pay equity and how you will achieve it. When giving out raises, it’s important to communicate clearly with employees about why they are receiving a raise and how much it will be. This helps build trust and transparency with employees. 
    • Review your job descriptions: Review your job descriptions to ensure they accurately reflect the work to ensure that employees who perform the same responsibilities receive equal salaries. 
    • Provide training: Train managers and employees on pay equity and how to promote it in the workplace. This helps build awareness and understanding of the importance of pay equity. 
    • Monitor and adjust: Finally, it’s important to monitor your pay equity and raise policies and adjust as needed to maintain pay equity and attract and retain top talent. 

    Steps To Perform A Pay Equity Analysis 

    Performing a pay equity analysis is significant in promoting pay equity in your workplace. It involves examining your current pay practices to identify any disparities in pay based on gender, race, ethnicity, or other protected characteristics. Here are the steps to perform a pay equity analysis:

    1. Identify the scope of the analysis: The first step in performing a pay equity analysis is to identify the size of the investigation. The scope includes identifying the job titles, departments, and locations included in the analysis. You should have a clear purpose for what you hope to identify through this process. 
    2. Research your pay policies: It’s particularly important to collect historical pay rates to help you understand how current rates were determined. All data collected must be in a way that protects employee privacy and confidentiality. 
    3. Collect data: Depending on the purpose of your audit, you collect different information. While this step is time-consuming, it’s essential as all analysis connects back to these data points. In general, this will include:
      • Job title 
      • Job level 
      • Department 
      • Education level 
      • Gender 
      • Age
      • Race
      • Hire date
      • Starting salary 
      • Current salary 
      • Overtime or bonuses
    4. Analyze the data: Using statistical analysis, you can compare the pay of employees who perform the same or comparable work, considering the factors that impact pay. Similar work can include positions across departments, and states have defined what counts as comparable work. This analysis can help identify any pay disparities based on illegal discrimination. 
    5. Identify areas for improvement: Based on the results of the analysis, you can identify areas where pay equity may be lacking and develop a plan to address these disparities. It’s important to note that pay differences between employees performing similar work can be legally justified. Earnings based on seniority, merit, or production measuring system are all legal by federal law. On the contrary, any discrepancies found on sex, race, color, religion, or national origin are illegal and must be corrected immediately. 
    6. Communicate and take action: Finally, it’s important to communicate the results of the pay equity analysis to finance or human resources to get approval on wage increases. Then you should implement the salary increase and inform the employee(s) accordingly. Moving forward, the results of the pay analysis help establish payment policies for future hiring or wage decisions. 

    Performing a pay equity analysis requires careful planning and attention to detail. By following these steps, you can identify any disparities in pay and develop a plan to address them, promoting fairness and equity in your workplace.
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    Managing Payroll With Pay Equity In Mind

    Pay equity and raises are important topics for both employees and employers. Pay equity ensures that employees are paid fairly for their work, while raises help to motivate and retain employees. Implementing pay equity and raises effectively requires careful planning and communication, but doing so effectively will help you attract and retain top talent while reducing legal risks.

    As a business owner, you have enough on your plate, and while you want the best for your employees, you don’t always have the time. By partnering with a professional employer organization (PEO), we help you with all your HR needs, from recruiting a qualified workforce to ensuring fair compensation for your employees.

    At GMS, we manage the time-consuming task of payroll, so you have one less thing to worry about, and your employees will remain motivated knowing their employer cares about them. Instead of spending your time on administrative tasks, pass them off to us. We offer an extensive range of services, including:

    • Ensuring your business stays compliant with new regulations 
    • Developing an equitable pay structure 
    • Writing job descriptions
    • Conducting competitive pay analyses 

    Additionally, our advanced payroll software, GMS Connect, streamlines the payroll process to simplify timekeeping and give users access on the go. Contact us today to learn more about how our payroll services benefit both you and your team.

  • Illinois is on track to become the next state to enforce pay transparency laws by mandating the disclosure of pay scales in job postings, strengthening its commitment to pay equity. While the Illinois Equal Pay Act has been around for a decade, it’s seen many changes within the past few years. The Illinois Equal Pay Act is one of the country’s most demanding pay transparency statutes because it requires employers with 100 or more employees in Illinois to submit employee pay data and a signed compliance statement to obtain an Equal Pay Registration Certificate (EPRC). All employees regardless of sex or race, who perform substantially similar skills, effort, and responsibility must receive the same wage rate.

    Diving Deeper Into The Act

    In 2021, the act was amended to impose new equal pay compliance requirements and create new obligations for private employers with more than 100 employees. Then, in 2022, the Illinois Department of Labor finally provided some guidance for employers on those new requirements. Most recently, on February 16th, 2023, Illinois legislators introduced a new pay equity bill that would amend the act again and require organizations with at least 15 employees to include benefits and pay scale information in job postings. Pay scale and benefits include the wage or salary, or the wage or salary range, and a general description of the benefits and other compensation the employer reasonably expects to offer for the position.

    Understanding The Latest Changes

    The 2023 bill, HB3129, or Equal Pay Transparency Act, is making its way through the Illinois House quickly. If passed and signed into law, it would again amend the Illinois Equal Pay Act and substantially change how employers post jobs in Illinois. The following are changes you’d be required to implement if passed:

    • Disclose the salary range for any job opening
    • Include a description of the benefits and other compensation offered with the position, such as health care, retirement benefits, and paid time off (PTO)
    • Include a statement in job postings indicating that they do not discriminate based on gender, race, or any other protected characteristic 
    • Provide this information to employees who are being considered for promotions or transfers within the company 

    This would help ensure that employees are aware of the salary range for the position they are being considered for and any other compensation or benefits that may be offered. The gender pay gap has been a longstanding issue in Illinois and across the country. According to the National Women’s Law Center, on average, women in Illinois earn just 80 cents for every dollar earned by men. This gap stretches even farther for women of color, with African American women making just 64 cents and Latina women earning 52 cents for every dollar earned by white, non-Hispanic men.

    Don’t Wait; Start Now!

    While we wait for the decision of the latest Equal Pay Transparency Act in Illinois, take action now to get ahead of your competition. Partnering with a professional employer organization (PEO) such as GMS will help you every step of the way. We help Illinois businesses prepare for this bill’s implementation by providing guidance on best practices for pay equity and compliance.

    At GMS, our HR experts can conduct a pay equity audit to identify any pay disparities that may exist within your organization. In addition, we help develop a compensation strategy that’s consistent with the requirements of the new law, which includes the following:

    • Developing salary ranges for job positions 
    • Review benefits packages
    • Ensure job postings include the required information 

    We aim to keep you up to speed on the latest changes to ensure you remain compliant. The last thing we want is for you to incur a significant find due to overlooking a detail in the updated regulations. Contact us today to learn how we can protect your business. 

  • A woman’s right to belong in the workplace has been a long battle over the decades, but the fight continues to combat discrimination and biases against women daily. One of the first victories was the Equal Pay Act of 1963, making it illegal for an employer to pay women less than men simply based on sex. The following year, Title VII of the Civil Rights Act of 1964 passed into law, protecting women from workplace discrimination and making it illegal to discriminate based on race, religion, or national origin.

    While many great strides have occurred, facing biases while trying to go about your workday can be exhausting, but women don’t need to face this alone. The workplace is a dynamic environment where employees constantly learn, grow, and evolve. As a leader, you have the power to create an environment that allows employees to grow and succeed. You can also create an inclusive work culture that supports diversity and fosters inclusion. There are many ways to advocate for women in the workplace; below are a few actions you can take daily to be there for the working women in your life.

    Actions To Take To Support Women In The Workplace 

    Encourage women to be authentic leaders

    There is often a pressure to fit in with those around you, and women, in particular, often feel coerced into mirroring their male counterparts if they want to get ahead in their careers. Pushing for people to fall in line is especially true for women of color who may not fit the ‘standard’ definition of a leader’s appearance. Other leaders must encourage female employees to embrace their unique styles and strengths, so they feel comfortable being themselves at work.

    But simply “speaking up” isn’t that easy, especially in a world where women are often talked over or left out of the conversation. You can help by fostering a welcoming and inclusive environment where everyone has the chance to participate and feels safe doing so.

    When women feel confident in their ability to speak up and are given the support to navigate challenges, they can reach their full potential.

    Recognize and reward women for their achievements 

    It’s important to recognize women for their accomplishments in the workplace, especially since society has historically left them out of the spotlight. Recognition, even for something small, can give someone the power to feel confident in their abilities and build confidence as a leader. By crediting a female employee’s accomplishments, she will hopefully feel more comfortable taking on more responsibility and leadership roles within your company.

    Recognition is one of the most powerful incentives for employees at all levels — not just those with higher status or paychecks. It reinforces positive behavior and encourages others to emulate it.

    You should reward people whenever possible, even if it’s just thanking them for doing their job well or helping a colleague in need, showing that you see and appreciate their efforts. This could include awarding prizes or bonuses for good work or planning special events such as company outings or happy hours that allow workers to form a stronger team bond.

    When you see an employee doing something right, take the time to recognize them publicly. Tell them how much their work means to your company and how grateful you are for all they do daily.

    Conduct a pay equity analysis 

    The gender pay gap is the difference between the average earnings of men and women, expressed as a percentage of men’s earnings. As of 2022, women earn an average of 82% of what men earn, based on an analysis of a new study by the Pew Research Center using the median hourly earnings of both full- and part-time workers. This has remained roughly the same for the past twenty years, only rising 2% since 2002.

    One way to support women in the workplace is by conducting a pay analysis evaluating how much you pay employees based on gender, race, and ethnicity.

    Conducting a pay analysis will help you identify potential gaps in pay between your male and female employees so that you can adjust accordingly. You should also review how much more seniority males have over females regarding promotions or raises, as this could also contribute to pay gaps.

    In fact, many businesses are making their salaries public knowledge so that everyone knows what their colleagues earn and how much they deserve for doing the same job.

    Rethink leadership development programs 

    Investing in the development of female employees helps retain talent and improves productivity and performance within your organization’s culture. Companies that invest in developing their employees through training and education tend to see higher job satisfaction among their employees compared to those that don’t invest in employee development at all.

    Many organizations offer employee leadership training programs — but those programs often focus on men. These programs tend to teach men how to be more assertive and competitive while teaching women how to be likable and more collaborative. These stereotypes have been shown time and again not only to be false but also harmful. Rethinking how we teach leadership skills can help create a more inclusive workplace where everyone feels comfortable speaking up and taking charge when necessary.

    Mentorships are an excellent way for senior leaders to share their expertise with junior employees who want guidance navigating their careers or navigating office politics. Mentorship programs also help new hires feel more comfortable when they start a new job by having someone they can contact if they need advice or guidance on anything related to their career path (or life).

    Be aware of biases 

    Women are often the target of bias in the workplace, whether it’s conscious or unconscious. Implicit biases are a form of bias that occurs automatically and unintentionally but still deeply affects judgments, decisions, and behaviors. Being aware of these biases is the first step toward understanding how they affect your behavior and how you treat others.

    Unconscious bias refers to our attitudes or stereotypes about people based on their gender, race, age, and other characteristics. This can lead us to make assumptions about others without realizing it — for example, that men are better suited for leadership roles. Avoiding these assumptions helps create a culture with fair treatment regardless of gender, race, or other characteristics.

    Unconscious bias training helps people recognize their own preconceived notions about certain groups — whether based on race, gender, or other factors — so they can correct them when making decisions about hiring or promotion prospects. It’s also used in human resources departments to ensure managers understand how they might treat employees differently based on their backgrounds.

    For example, “office housework” refers to the tasks often assigned to women, such as making copies, ordering lunch, or taking notes during meetings. It’s a phenomenon noticed by many women in the workplace, who have reported feeling resentment when asked to do these tasks instead of their male colleagues.

    Create a flexible work environment 

    The fact that women continue to be the primary caregiver in most families means that they will often need to arrange their schedules around the needs of their children. Scheduling can be difficult when there is little flexibility around the hours they need to work, and the days they need to take off. It’s essential to create policies that encourage employees with caregiving responsibilities (of all genders) to meet those responsibilities without sacrificing their careers simultaneously.

    Many companies offer flexible work arrangements such as telecommuting or compressed workweeks so employees can control their schedules and spend more time with their families. These programs also help companies attract top talent while retaining valuable employees who may otherwise leave when they have children or aging parents they need to care for.

    Support Your Female Coworkers Every Day

    The workplace is changing, and people are vocalizing the importance of diversity of thought and action, but more effort must happen regarding gender equity and equality. To date, we have the trailblazing efforts of the brave women who openly speak out about harassment and discrimination to thank for all the incremental developments so far. However, they can’t create lasting change alone. With the help of individuals such as yourself, it’s possible to create a more supportive and progressive environment for women.

    As HR experts, we’re equipped with the resources to help you manage workplace prejudice among employees, such as gender discrimination. At GMS, we stay current on all discrimination laws and protections to help you create a safe and welcoming environment for all your employees. If you have any questions, contact us today to speak with a team member!