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  • In a recent development, the New Jersey Commissioner of Banking and Insurance has approved a 3.9% decrease in rates and rating values tied to workers’ compensation insurance for new and renewal policies. This significant shift, set to take effect on January 1st, 2024, is grounded in the latest financial and statistical data reported to the state Rating Bureau. What’s intriguing is how this change echoes the impact of the COVID-19 pandemic within the workers’ compensation realm.

    The commissioner’s statement highlights the far-reaching implications of the pandemic, influencing health and the financial landscape of insurance. It’s a pivotal moment for businesses in New Jersey, with this rate adjustment offering a glimmer of relief and opportunity. However, beneath this rate adjustment lies other crucial alterations directly impacting employers and employees involved in workers’ compensation claims.

    Data-Driven Changes

    Starting January 1st, 2024, there will be noticeable adjustments in the structure of weekly benefits tied to workers’ compensation. The maximum weekly benefit for most injury types (excluding permanent partial disabilities) will increase to $1,131 from the previous $1,099. Simultaneously, the minimum weekly benefit will increase to $302 from its previous mark of $293. These changes, set to come into effect at the start of the new year, signify a concerted effort to align compensation more effectively with prevailing economic conditions.

    Weekly Benefit Adjustments

    The notable increase in maximum and minimum weekly benefits signals a step towards enhancing compensation for workers in New Jersey. It’s an opportunity for businesses to reevaluate their existing workers’ compensation policies to ensure they align with these revised benefit structures. Understanding and adapting to these changes will be pivotal in guaranteeing fair and adequate coverage for employees, offering a level of financial security in the event of work-related injuries.

    Permanent Partial Disabilities

    For claims related to permanent partial disabilities, the revised weekly benefit range presents a more comprehensive approach. With adjustments to the weekly benefits range varying from $302 to $1,131, contingent upon the duration and severity of the disability, this change represents a more nuanced approach to addressing the varying needs of individuals with long-term or partial disabilities. Businesses must understand these benefit ranges to adequately support employees with specific needs.

    Partner With A Professional Employer Organization (PEO)

    Ultimately, the approval of rate changes and benefit adjustments represents a balancing act between protecting the interests of employers and employees. Embracing these changes with a proactive stance will empower businesses to navigate the shifting workers’ compensation landscape, ensuring comprehensive coverage and compliance. Consider partnering with a professional employer organization (PEO). Amidst these changes in workers’ compensation regulations in New Jersey, a PEO like GMS handles HR-related tasks, including managing workers’ compensation claims, ensuring compliance with evolving regulations, and offering tailored solutions to mitigate risks. Partnering with GMS can empower New Jersey business owners to navigate these changes seamlessly, allowing them to focus on their core operations while ensuring their employees receive comprehensive support and coverage. Contact us today to learn more.

  • In a significant stride towards enhancing the rights and protections of freelance workers, the city of Los Angeles, California, has enacted a groundbreaking ordinance poised to redefine the landscape for independent contractors in the city. The Freelance Worker Protections Ordinance, which took effect on July 1st, 2023, is a resounding win for freelance workers and is aligned with the city’s commitment to ensuring fair treatment and equitable compensation for all workers.

    Defining Freelance Workers

    Under the new ordinance, the term “freelance worker” has been meticulously defined, encompassing individuals and entities engaged as independent contractors to provide services in exchange for compensation. The ordinance explicitly excludes certain professions requiring written compensation agreements, such as attorneys, architects, and engineers. Similarly, app-based transportation and delivery drivers, who have been the subject of much debate in recent times, are also exempt from the scope of this ordinance.

    At its core, the ordinance aims to establish fundamental rights and safeguards for freelance workers in Los Angeles. The following are key provisions that promise to reshape the freelancer landscape in the city:

    1. Basic written contract requirement: The ordinance mandates that a basic written contract between the freelance workers and the hiring entity must be in place. Even in cases where an oral contract exists, the hiring entity must provide a written contract. This contract must detail essential information, including contact details of both parties, services provided, compensation terms, and payment schedule.
    2. Timely payment assurance: The ordinance sets a clear standard for timely payment. If the contract specifies a payment date, the hiring entity must fulfill the payment in full by that date. In cases where no specific date is mentioned, payment must be issued no later than 30 days after completion of the work.
    3. Record keeping: Freelance workers and hiring entities must maintain written records for at least four years. These records must include contracts, payment documentation, and other evidence demonstrating adherence to the contract terms.
    4. Protection from retaliation: The ordinance safeguards freelancers from any form of punishment, retaliation, or adverse action by the hiring entity in response to exercising their rights under the law.
    5. Addressing violations: Freelancers are empowered to take action against violations. They can file a civil lawsuit seeking damages or file a complaint with the Bureau of Contract Administration. The ordinance affirms their right to pursue both avenues.
    6. Accountability for hiring entities: The ordinance outlines the responsibilities of hiring entities to respond to complaints and requests from the Bureau of Contract Administration. Failure to comply within the stipulated time frame can result in legal repercussions.
    7. Damages and remedies: Successful freelance worker litigants are entitled to a range of damages, depending on the nature of the violation. These include reasonable attorneys’ fees, injunctive relief, and other remedies deemed appropriate by the court.

    Diving Deeper Into The New Ordinance

    Los Angeles’ Freelance Worker Protections Ordinance transcends mere regulation, a testament to the city’s commitment to fostering a fair and equitable work environment for all. With a wide application encompassing many businesses and freelance workers, its significance cannot be underestimated. The ordinance underscores the need for companies to be proactive in reviewing their practices, ensuring compliance with its provisions, and upholding the rights and dignity of freelance workers.

    This ordinance sets a powerful precedent for other jurisdictions in an age where the freelance economy is rapidly evolving. It signals a paradigm shift towards recognizing the vital contributions of freelance workers and valuing their rights on par with traditional employees. Los Angeles’ stride towards worker empowerment is not just commendable, it’s a blueprint for a more inclusive and just future of work.

    Partner With A PEO

    Amidst the transformative landscape shaped by Los Angeles’ pioneering Freelance Workers Protections Ordinance, businesses should consider partnering with a professional employer organization (PEO). PEOs like Group Management Services (GMS) specialize in providing comprehensive HR solutions, ensuring compliance with ever-evolving labor regulations. Businesses can streamline their administrative processes by partnering with GMS, efficiently manage freelance worker contracts, and maintain meticulous records.

    As the ordinance ushers in a new era of freelancer empowerment, a PEO can serve as a strategic partner, helping businesses navigate the complexities and intricacies of the regulation while fostering an environment where freelance workers and hiring entities thrive harmoniously. With GMS’ expertise, businesses can confidently embrace the spirit of the ordinance and build a foundation of fairness, transparency, and compliance in their freelance engagements. Contact us today to learn more.

  • A new year comes with new laws and regulations. If you live in Indiana, you may want to listen up. On January 1st, 2023, the Indiana Department of Revenue issued a revised Departmental Notice No. 1, How To Compute Withholding for State and County Income Tax. Three counties in Indiana, including Greene, Montgomery, and Perry, have experienced tax rate changes. The following are the new rates for each county:

    • Greene: Increased to 2.15%
    • Montgomery: Increased 2.65%
    • Perry: Decreased to 1.4%

    In addition, the state withholding rate decreased to 3.15%, which also decreases the state supplemental wage and tax rate to 3.15%.

    Where GMS Comes Into Play

    While laws and regulations are constantly changing, it’s essential for all business owners to ensure they remain compliant. Running your business and ensuring your employees are also complying adds a whole new layer of responsibility to your daily job functions. When you partner with GMS, our experts keep up with all rules and regulations you must stay on top of. Let us handle the administrative burdens you don’t have the time to handle. Contact us today to learn more.

  • The 5th U.S. Circuit Court of Appeals has upheld the injunction of executive order 14042, stating that government cannot enforce federal contractors to receive the COVID-19 vaccine. In a 2-1 vote, the court decided to block the mandate. Additionally, on December 19th, 2022, the hearing found that the Biden administration had overstepped its authority due to a breach of the tenth amendment.

    What Is The Mandate?

    On September 9th, 2021, President Joe Biden announced the executive order stating that all government contracts must implement a clause requiring federal contractors to be fully vaccinated unless legally accommodated. As a result, three states joined forces: Mississippi, Louisiana, and Indiana.

    The States Defense 

    A major argument amongst the states was that the vaccine mandate infringed on the right to regulate health and safety matters within their borders. The state believed that the implementation of this mandate would push far beyond federal contractors. Approximately one-quarter of the U.S. workforce, including the private sector, would be affected. 

    Defense Of The Mandate

    The U.S. Department defended the mandate with claims that the order was protected under the Procurement Act. Officials believed that the enforcement of the COVID-19 vaccine would enhance contractors’ day-to-day efficiencies by reducing productivity loss and schedule delays. Additionally, government officials hoped the mandate would decrease labor costs and employee absenteeism. 

    Your Strategy Partner 

    Government mandates and regulations are ever-changing. As a business owner, you already have enough on your hands. With GMS as a partner, you can remove the time spent worrying about missing legislative updates that may affect your business. Our HR professionals will keep you up to date on any changes that may impact your business. Our team will support you by creating a combative strategy to ensure your operations continue running smoothly. Contact GMS today to learn more.

  • Under the Pennsylvania Minimum Wage Act (PMWA), the new state wage-and-hour regulations will take effect on August 5th for tipped and salaried nonexempt workers. The PNWA establishes a fixed minimum wage and overtime rate for employees in Pennsylvania. In addition, it sets forth compliance-related duties for the Department of Labor & Industry and employers. These changes align with additional federal regulations, including raising the tipped employees’ minimum wage to $7.25 an hour.

    New Regulation Requirements 

    Pennsylvania employers are now required to calculate the regular pay rate for salaried, nonexempt employees by adding all remuneration for the workweek and dividing this by 40 hours. In addition, to calculate the overtime pay due, the regular rate is:

    • Multiplied by 1.5
    • Then, multiplied by the number of hours worked more than 40 in that workweek

    The new formula for calculating overtime premiums for salaries of nonexempt employees is:

    • [(Weekly salary + any other remuneration not excluded under 34 Pa. Code § 231.43(a)) ÷ 40 hours] × 1.5 × OT hours = Total Overtime Owed

    This new formula for salaried nonexempt overtime workers is a departure from the Fair Labor Standards Act’s (FLSA) fluctuating workweek (FWW) method of calculating overtime premium pay for salaried nonexempt employees.

    What This Means

    Pennsylvania’s new formula for calculating overtime pay for salaried nonexempt employees was created to be more protective for workers. In addition, it will result in greater overtime pay for employees than before with the federal FWW formula. All employers in Pennsylvania should consider re-evaluating whether their practices comply with the new PNWA formula.

    Is It Time For Your Business To Invest In Payroll Outsourcing Services?

    It’s no secret that payroll management is a long and tiring process, not to mention keeping up with new regulations you must comply with. If you’re struggling, it’s time to consider outsourcing payroll administration to a professional employer organization (PEO) such as GMS. Contact us today.

  • House Bill 6173 has been recently introduced to the public. If this bill gets passed, it will end the immunity that was granted in 2020 legislation that stated:

    “An employer is not liable… for an employee’s exposure to COVID-19 if the employer was operating in compliance with federal, state, and local statutes, rules and regulations, executive orders, and agency orders related to COVID-19 that had not been denied legal effect at the time of the exposure.”

    Michigan lawmakers will be considering this bill that will ultimately, expire the legal immunity given to employers who follow workplace safety regulations and whose employees contract COVID-19.

    Stay In The Know

    Since the beginning of COVID-19 in 2020, business owners have always been on the lookout for ever-changing laws and regulations. Let GMS experts keep you up-to-date on these laws so you don’t have to. Learn more on how GMS can help you and your business.