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  • The Illinois Supreme Court issued an opinion on Walton v. Roosevelt University on March 23rd, 2023. This affirms the validity of a vital preemption defense for employers facing litigation under the Illinois Biometric Information Privacy Act (BIPA). Before we hear the decision of the Illinois Supreme Court, let’s understand the history of this case and what BIPA means.

    Understanding BIPA

    The Illinois legislature unanimously passed BIPA in 2008. This law ensures that individuals are in control of their own biometric data and prohibits private companies from collecting it unless they do the following:

    • Inform the person in writing of what data is being collected or stored
    • Inform the person in writing of the specific purpose and length of time in which the data will be collected, stored, and used
    • Obtain the individual’s written consent 

    Biometric data is data based on an individual’s biometric identifiers that are used to identify an individual. It can include a retina or iris scan, fingerprints, voice print, hand scan, and face geometry. BIPA has become the most litigated biometric privacy statute in the nation. It establishes standards for how businesses must handle Illinois consumers’ biometric information. The main goal of this law is to create a standard of conduct for private entities to collect or possess biometric information responsibly.

    Walton V. Roosevelt University Case

    This case is about an employee at Roosevelt University who brought a class action claiming the University violated various provisions of BIPA by using a biometric time-clock system. This system was used to scan his fingerprints without obtaining his informed written consent. The University then disclosed his biometric information to a third-party payroll services provider without his consent. The employee sued the University, alleging that they violated BIPA by doing the following:

    • Failing to develop a written policy made available to the public, establishing a retention policy, and guidelines for destroying biometric data 
    • Collecting his biometric data without providing him with the requisite notice and obtaining his written consent
    • Disclosing his biometric data without consent 

    However, an Illinois Appellate panel held that the Labor Management Relations Act (LMRA) prevents the employee from usurping the bargained-for dispute resolution requirements in the collective bargaining agreement by first suing the University directly in court. The University moved to dismiss the case because LMRA pre-empted the plaintiff’s claims.

    What The Illinois Supreme Court Decided

    The court affirmed the appellate court’s holding that Illinois’ BIPA is pre-empted by federal labor law for plaintiffs who are members of a bargaining unit and covered by a collective bargaining agreement. The court held that Illinois would follow Seventh Circuit precedent. In addition, the court found that the Seventh Circuit decisions governed the case and should be followed because they concern federal law and were reasonable.

    Ultimately, the Illinois Supreme Court ruled that the LMRA preempts BIPA claims brought by an employee of a bargaining unit if the employer cites the collective bargaining agreement’s management rights clause in response to the claim. The court deferred to the federal case law on this issue.

    What This Means For Business Owners

    While you may think this case does not directly impact your business, you may have thought wrong. Unionized employees are not prohibited from seeking redress for alleged BIPA violations. They must pursue these claims through the grievance procedures in their collective bargaining agreements instead of in state or federal court. In addition, business owners should be aware of their obligations under BIPA if they collect, use, or store biometric data from employees or customers.

    Business owners must consult legal counsel to understand the pre-emption issues that may arise in specific situations. Partnering with a professional employer organization (PEO) such as Group Management Services (GMS) provides you with the support you need. GMS experts help business owners comply with federal and state laws and regulations, including anti-discrimination and privacy laws. In addition, we can help employers manage their employment-related risks by providing employment practices liability insurance (EPLI) coverage. EPLI helps protect employers from the financial loss associated with claims of discrimination, harassment, retaliation, and other workplace-related claims. GMS ultimately helps business owners mitigate legal risks by providing up-to-date employment policies, procedures, and employee handbooks that are compliant with state and federal laws. Protect your business and contact us today.

  • Porter Roofing Contractors Inc., a Tennessee-based roofing contractor, face a hefty penalty after the U.S. Occupational Safety and Health Administration (OSHA) cited them. This citation came following the death of an employee who had fallen through a skylight at a Florida airport hangar. OSHA cited the company for four serious violations and proposed $53,797 in penalties.

    OSHA stated that Porter Roofing failed to inspect job sites, materials, and equipment regularly. In addition, they exposed their workers to electrical, struck-by, and fall hazards while failing to report work-related employee hospitalization within 24 hours.

    About Porter Roofing Contractors Inc.

    Porter Roofing is your single-source contractor for consultation, execution, and installation of various high-performance roof systems. They have blueprinted an innovative culture throughout their company, emphasizing the welfare and safety of everyone involved with any roofing project they undertake.

    The Assistance Of A PEO

    Unfortunately, the failure of Porter Roofing to prioritize the safety of its workers resulted in the tragic loss of an employee’s life. This serves as a reminder to take proactive measures to safeguard your workers and prevent unnecessary loss of innocent lives. Have you considered partnering with a professional employer organization (PEO)? A PEO such as Group Management Services (GMS) helps businesses with OSHA compliance to reduce the risk of an OSHA inspection and to prepare for one if it does occur.

    At GMS, our risk management team can perform a comprehensive assessment of your company’s safety practices identifying areas of non-compliance with OSHA regulations. The assessment can include the following:

    • Review safety policies and procedures 
    • Conduct safety policies and procedures 
    • Identify training needs

    We provide you with safety training for your employees so you can avoid accidents and injuries and reduce the risk of OSHA violations. In addition, if you don’t already have safety programs and policies in place, our experts help you develop and implement safety programs and policies that comply with OSHA regulations. We do it all. Contact us today to ensure your workers are working in a safe environment.

  • Earlier this month, the California Occupational Safety and Health Appeals Board (OSHAB) announced that outdoor job sites must contain accessible potable drinking water. Water must be placed within close proximity to where employees work. It was determined that outdoor workplace drinking water must be located “as close as practical” to areas where employees are working, which encourages frequent hydration.

    On February 6th, 2023, OSHAB clarified that the term “as close as practicable” in terms of providing water to prevent heat illness means that the water must be as close as reasonably can be accomplished to encourage frequent water consumption. Millions of U.S. workers are exposed to heat in their workplaces or job sites. Although exposure to heat is preventable, thousands become sick from occupational heat exposure every year, and in some cases, it’s fatal. Most outdoor fatalities, 50% to 70%, occur in the first few days of working in warm or hot environments because the body needs to gradually tolerate the heat over time. The Occupational Medicine and Wellness center states that workers should drink five to seven ounces of water every 15 to 20 minutes to prevent dehydration.

    Help Your Employees!

    If you have employees that are working endless hours outside, especially in the heat, it’s essential that you take steps to prevent them from getting injured on the job. Providing your workers with easy access to water while on the job site is one of the easiest steps you can take to protect your workers. Our safety experts ensure you remain compliant and take every step possible to protect your biggest asset – your employees. Interested in learning more? Contact us today.

  • As a business owner, it’s essential that you create a safe work environment for your employees. A safe and healthy workplace protects your workers from injury and illness while also doing the following: 

    • Lowers injury/illness costs
    • Reduces absenteeism and turnover
    • Increases productivity and quality 
    • Raises employee morale

    The number of preventable work deaths increased by nine percent in 2021, totaling 4,472. In addition, there were over two million non-fatal workplace incidents in 2020. As we near the end of the first quarter of 2023, consider your efforts to prevent workplace injuries and areas that need improvement.

    An Example For Reference

    What better way to spread awareness for workplace safety than sharing a story of a company that was unfortunately faced with hefty penalties? Three workers at Wright Tool Company, a leading tool manufacturer in Barberton, Ohio, suffered injuries from unguarded machinery. These incidents triggered an Occupational Safety and Health Administration (OSHA) inspection, which led to $164,742 in proposed fines. Wright Tool Company has forged to finish the highest quality hand tools by hardworking Americans for even harder working professionals.

    The latest injury occurred on October 26th, 2022, when an employee suffered a thumb amputation when hand-feeding parts into a drill press using air-activated clamps. The other injuries occurred in December 2020 and June 2022 when both workers performed similar job duties and suffered laceration injuries. The company was cited for one willful violation of machine guarding standards, two serious, and one other-than-serious violation. On top of that, Wright Tool Company also failed to do the following:

    • Conduct hazard assessments to identify personal protective equipment needs and other requirements
    • Did not test energy control procedures at least annually
    • Did not train every employee to ensure they understood hazardous energy control procedures 
    • Enclose shafting

    What Now?

    Unfortunately, Wright Tool Company will have to pay $164,742 to OSHA for failing safety protocols. If they had taken proactive steps and improved their safety measures, these accidents could have been prevented. Partnering with a professional employer organization (PEO) like GMS will ensure that an accident similar to this won’t happen within your business. Many small business owners struggle to stay ahead of the risks associated with workers’ compensation and workplace hazards. Employers don’t need to settle for high compensation costs and issues from OSHA. When you partner with us, we simplify your administrative needs and create a culture of workplace safety, all while helping you save money. You ultimately gain a partner that enables you to take a proactive approach to address immediate issues and prevent potential problems in the future.

    Scott Lenigan, GMS’ Safety Coordinator III, expressed, “You gain a partner with a safety staff with a wealth of experience in all industries. Our services include safety program audits, workplace training, job site visits, accident and injury investigations, and help with required recordkeeping. In addition, our team has vast experience in the OSHA investigation process, being your advocate from the initial investigation to an informal conference to appeal any citations. Our team provides you with the tools to take a proactive approach to address immediate issues and prevent potential problems in the future.”

    Let’s not make the same mistakes this company made. Contact us today!

  • Lawmakers in New York proposed Senate Bill 1488. This bill would prohibit businesses from retaliating if employees file workers’ compensation claims following work-related injuries. Within this bill, retaliation is defined as “threatening to contact or contacting U.S. immigration authorities over a worker’s suspected citizenship or immigration status as well as that of household members of workers.” If it’s passed into law, any employer found to be violating the law will face fines between $500 and $2,000. The bill currently sits with the Senate Labor Committee.

    Stay Up To Date By Partnering With GMS

    As a business owner, it’s essential that you take every precaution to ensure you remain compliant with state and federal laws. Luckily, if you have a business in the state of New York, GMS has your back. We ensure you are up to date with all laws and regulations. Don’t worry about missing one minor detail that could cost your small business a hefty fine you don’t have the time or money to deal with. Contact GMS to learn more.

  • With 2023 in full swing, business owners are still trying to combat the effects of the COVID-19 pandemic – hiring, recruiting, retaining employees, and more. However, employers may be so eager to get employees to work for them, they may be disregarding the potential cost of labor law violations. Labor laws are regulations that outline rights and liabilities in the workplace, notably those of the employees and the employer. They can be one of the trickiest issues you face as an employer if you don’t adhere to these laws and regulations.

    This is relevant now more than ever as the National Labor Relations Board (NLRB) came out with its newest rule. The new ruling states that employers who violate federal labor law must compensate workers to make up for the direct consequences of unfair labor practices. The board expressed that victims of labor law violations are entitled to be compensated for all “direct or foreseeable pecuniary harm” due to illegal labor practices.

    The National Labor Relations Act (NLRA)

    In 1935, Congress passed the National Labor Relations Act (NLRA), making it clear that it’s the policy of the U.S. to encourage collective bargaining by protecting workers’ full freedom of association. It ultimately protects workplace democracy by providing employees at private-sector workplaces the fundamental right to seek better working conditions and designation of representation without fear of retaliation. The NLRA prohibits employers from firing, demoting, or withholding benefits from employees due to their involvement in or support of a union.

    The following are examples of illegal discrimination under the NLRA:

    • Discharging employees because they urged other employees to join a union 
    • Refusing to reinstate employees when jobs they are qualified for are open because they took part in a union’s strike 
    • Demoting employees because they circulated a union petition among other employees asking the employer for an increase in pay 
    • Discontinuing an operation at one plant and discharging the employees involved, then opening the same operation at another plant with new employees because the employees at the first plant joined a union 
    • Refusing to hire qualified applicants for jobs because they belong to a union 

    What The Board Is Saying

    Recently, the board has been vocal in expressing updates to the current laws that are in place. In addition to the loss of earnings and benefits, victims of unfair labor practices may incur significant financial costs, including:

    • Out-of-pocket medical expenses
    • Credit card debt
    • Other costs that are a direct or foreseeable result of the unfair labor practices

    The NLRB determined that compensation for these losses should be a part of the standard, make-whole remedy for labor law violations. The board emphasized that employees aren’t made whole until they’re fully compensated for financial harm suffered from unlawful conduct. Common remedies imposed included reinstatement of employment, back pay, payment of dues and fines, stopping unlawful rules or practices, or a notice posted at the workplace. The NLRB’s latest law expands this list substantially for employers, holding them more accountable for their actions.

    The following are new make-whole remedies that the NLRB has cited:

    • Compensation for health care expenses that an employee incurs as a result of an unlawful termination of health insurance
    • Compensation for credit card late fees incurred
    • Compensation for the loss of a home or a car that an employee suffered resulting from an unlawful discharge
    • Employer sponsorship of work authorizations for the firing of undocumented workers

    In addition, for an employer’s unlawful failure to bargain with a union, remedies could include the following:

    • Compensation for losses sustained by employees
    • Bargaining schedules
    • Cease-and-desist orders
    • Reimbursement of collective bargaining expenses
    • Reinstatement of a one-year contract bar
    • Reinstatement of proposals that the board finds to have been unlawfully withdrawn
    • Submission of periodic detailed progress reports to the board

    What This Means For Employers

    The biggest takeaway from this is to minimize and avoid any violations of the NLRA. It’s essential that you and your leaders within your organization must understand the rules associated with the NLRA. When you partner with GMS, we take on that responsibility for you. Our HR experts ensure you remain compliant in all areas of your business, from payroll to benefits to risk management, we’re here to help. If you want to learn more, contact us today.

  • On December 12th, 2022, Governor Kathy Hochul signed legislation establishing Carlos’ Law. Under this bill, corporate criminal liability for death or serious physical injury of an employee, whether a felony or misdemeanor, will be increased by a fine of up to $500,000.

    Carlos’ Law

    Carlos’ Law is named after Carlos Moncayo, a 22-year-old construction worker who tragically died at a New York City construction site in 2015. He was killed in the workplace because his employer ignored the repeated warnings of the dangerous conditions he was placed in.

    This law raises the financial penalties employers may face for workplace fatalities from a minimum of $5,000 and a maximum of $10,000 to a minimum of $300,000 and a maximum of $500,000. Under the new legislation, a corporation is guilty of criminal corporate liability for the death or injury of a worker when it negligently, recklessly, intentionally, or knowingly causes the death or serious physical injury of its employees while on the job.

    The law will do the following:

    • Impose criminal liability on a corporation when the conduct constituting the offense is committed by an agent of the corporation while acting within the scope of their employment and on behalf of the corporation, and the offense is “in relation to a crime involving the death or injury of a worker
    • Require a court to set restitution or reparations when a corporation is found guilty of an offense involving the death or injury of a worker
    • Impose a fine of not less than $500,000 nor more than $1 million when a corporation is convicted of a felony involving the death or injury of a worker
    • Impose a fine of not less than $300,000 nor more than $500,000 when a corporation is convicted of a misdemeanor involving the death or injury of a worker

    The ultimate goal of Carlos’ Law is to – “increase punitive measures so that corporations and their agents who ignore or fail to follow safety protocols and procedures and put workers at risk are less likely to write off serious workplace injuries as a minimal cost of doing business, and more likely to give workplace safety the serious attention it requires.”

    Stay Compliant, Partner With GMS

    As a business owner, it’s essential that you take all steps necessary to ensure the safety of your employees. The last thing you want is for an employee to get injured on the job. Add the hefty penalties you could face for not complying with the laws and regulations within each state. Whether you have a business in New York or not, there are always rules in place to ensure you provide a safe work environment for your workers. When you partner with GMS, our safety experts ensure you’ve created a culture of safety to minimize any risks your employees’ daily activities may carry. We help you take a proactive approach to workplace safety through various services, including:

    • Onsite consulting
    • Jobsite inspections
    • Accident and injury investigations
    • Training
    • Job hazard analysis and standard operating procedures
    • OSHA inspection and citation assistance

    Make your work environment a safer place, contact us today.

  • The Occupational Safety and Health Administration (OSHA) announced its citation of Amazon for failing to record and properly report work-related injuries and illnesses. The proposed penalties totaled $29,008.

    What Went Wrong

    Amazon is the world’s largest online retailer and a prominent cloud service provider. They have transitioned into an internet-based business enterprise largely focused on providing e-commerce, cloud computing, digital streaming, and artificial intelligence (AI) services. Amazon has over 1.3 million employees throughout the world.

    That said, they still made mistakes that cost them a hefty fine from OSHA. They were cited for 14 recordkeeping violations which included the following:

    • Failing to properly record worker injuries and illnesses
    • Misclassified injuries and illnesses
    • Failed to report injuries and illnesses within the required timeframe
    • Did not provide OSHA with timely records

    These citations followed site inspections in July and August at Amazon warehouse facilities in Deltona, Florida; Waukegan, Illinois; New Windsor and Castleton, New York; Aurora, Colorado; and Nampa, Idaho. The company has 15 days to comply with or contest the citations.

    How To Avoid This From Happening To Your Business

    Even with a company such as Amazon, ensuring you stay compliant and keep your employees safe is still challenging. However, there are resources available to business owners to help prevent these situations from happening. When you partner with a professional employer organization (PEO) like GMS, we have experts and resources in place to prevent situations similar to Amazon from happening. Should one of your employees get injured on the job, our partnership with CarivaCare provides our clients with 24/7 access to the workers’ compensation nurse triage program. You are quickly connected with knowledgeable, caring professionals who will assist your employees. We also have a team of safety experts who will visit your facility to ensure it is as safe as possible for you and your employees, thereby preventing injuries. Contact us today to learn more.

  • NOX US, an Ohio vinyl tile manufacturer faces over $1.2 million in proposed penalties from the U.S. Department of Labor Occupational Safety and Health Administration (OSHA). Since February 2017, there have been seven worksite injuries after incorrectly following mandatory machine safety procedures. In addition, NOX US recorded at least 13 serious injuries at the Fostoria, Ohio, plant which were caused by exposure to burn and amputation hazards. All incidents put the Fostoria plant on OSHA’s Severe Violator Enforcement Program in 2017.

    NOX US LLC

    NOX US was founded in 1994 and focuses on luxury vinyl tile flooring innovation, design, and manufacturing for global customers. They continue to lead the industry with innovation and expertise. In addition, they offer superior quality control with their integrated vertical production system. They control the complete manufacturing process in their facilities to meet their customers’ various needs.

    The Most Recent Incident

    On April 28th, 2022, OSHA inspectors responded after a worker suffered severe injuries after being caught in a machine on the worksite. This inspection found that the worker’s finger was caught in a rotating spindle on a plastic winding machine and their body was pulled around the machine’s spindle. This employee was at the company for only six short weeks and suffered multiple severe injuries requiring surgery. OSHA cited NOX US with the following:

    • Eight willful violations
    • One repeat violation
    • Six serious violations
    • One other-than-serious violation for exposing workers to machine hazards, lacking personal protective equipment, and failing to train their workers on safety hazards and precautions

    Be Proactive Before It’s Too Late

    While this is a terrible accident that could’ve been prevented, it’s vital you use this example as a lesson to get the protection you need. Thankfully, GMS can help business owners take a proactive approach to workplace safety through various services. These strategies include:

    • Onsite consulting
    • Jobsite inspections
    • Accident and injury investigations 
    • OSHA inspection and citations assistance 
    • And more!

    Contact GMS today to talk to our safety experts to ensure you’re following all rules and regulations as well as keeping your employees safe. 

  • On September 24th, 2022, Arizona Senate Bill (SB) 1403 took effect. Following the effective date, the Arizona workers’ compensation statute will be amended to add section A.R.S. § 23-1061(N). The purpose of SB 1403 is to outline the reporting requirements related to when an insurance carrier or self-insured employer receives written notification of injury from an employee who was injured on the job and intends to file a compensation claim.

    Understanding The Provisions 

    The provision requires an insurance carrier or self-insured employer, upon receipt of written notification of injury from an employee who was injured and intended to file a compensation claim, to:

    • Forward the written notification of injury and intended claim for compensation to the Industrial Commission of Arizona (ICA) within seven business days
    • Inform the employee of the employee’s requirement to file a claim with the ICA

    Additionally, the new provision suspends the one-year deadline by which an employee or other entitled party may file a claim after the insurance carrier or self-insured employer receives written notification of the injury and intended compensation claim. The deadline for forwarding the written notice to the ICA is the date the insurance carrier or self-insured employer receives the written notification.

    Failure to report by the insurance company and the self-insuring employer could relieve the injured workers of their requirement to file the claim within one year under A.R.S. & 23-1061(A). The new form for insurance companies and/or self-insuring employers to file a written notification can be found here.

    Stay Up To Date By Partnering With GMS

    At GMS, we understand the complexity of staying up to date with ever-changing rules and regulations. In addition, we know how expensive workers’ compensation claims can be if they aren’t handled correctly. The formula for determining your company’s workers’ compensation rates is complex, but the concept behind it is simple – the more claims that your employee’s file, the higher your rate will be. The good news is that GMS partners with businesses to control their workers’ compensation insurance rates and protect them from costly claims. Ready to partner with a company that provides you with workers’ compensation experts that ultimately save you time and money? Contact us today and get your workers’ compensation risk under control.