Simco Blog

Finger Lakes Homeowners: Is Your Insurance Ready for Spring and Summer Storms?

Mon, 27 Apr 2026 13:18:11 GMT

Living in the Finger Lakes, especially throughout Canandaigua and Ontario County, offers a quality of life that is hard to match. The lakes, the landscape, and the changing seasons are part of what makes this area special. Those same characteristics, however, also create very specific risks to your home and property. Many of these risks are not fully understood until a loss occurs.

This overview is meant to help bring clarity before that happens.

Heavy Rain and Flooding: A Common Misunderstanding

Spring in our region often brings a combination of heavy rainfall and saturated ground, sometimes alongside lingering snowmelt. When the ground can no longer absorb water, it finds its way into basements and lower levels.

What many homeowners do not realize:

• Standard homeowners insurance does not cover flood damage

• Sewer or drain backup coverage is not automatically included

• Even minor water intrusion can result in significant repair costs

Flooding remains one of the most common and misunderstood gaps in coverage.

Summer Storms and Wind Damage

Severe weather events have become more frequent and more intense in recent years. Across the Finger Lakes, we regularly see:

• Trees falling onto homes or structures

• Roof and siding damage from high winds

• Power surges impacting appliances and electronics

While many of these losses are typically covered, there are important considerations:

• Tree removal coverage is often limited

• Poorly maintained trees can create complications in claims

• Deductibles may be higher than expected, especially for wind-related losses

Tornado Activity in Upstate New York

Tornadoes are not something most people associate with our region, but they do happen in upstate New York. They are often smaller in scale, but still strong enough to damage roofs, garages, sheds, outbuildings, and surrounding property.

In many cases, tornado-related damage is covered under a standard homeowners policy. The bigger concern is whether homeowners have reviewed their limits, deductibles, and property details before a loss occurs.

Hail Damage: Often Overlooked

Hail damage does not always present itself immediately. Over time, it can:

• Compromise roofing materials

• Reduce the lifespan of your roof

• Lead to leaks or structural issues later on

An important detail many homeowners are unaware of: some policies now settle roof claims based on actual cash value rather than full replacement cost, which can significantly reduce claim payouts.

Lakefront and Hillside Exposures

The natural features that define the Finger Lakes also introduce unique risks:

• Shoreline erosion

• Slope instability

• Ground shifting following heavy rain

It is important to understand:

• Land itself is not insurable

• Earth movement, including landslides, is typically excluded

These are among the most significant uncovered exposures in our area.

Lightning and Power Surges

A single storm can damage electronics, appliances, and home office equipment. While coverage may apply, it is often subject to policy limits, deductibles, and specific conditions. If you work from home or rely on expensive electronics, it is worth reviewing how your policy handles power surge damage before you need to file a claim.

What Homeowners Often Learn Too Late

After working through claims with families across the region, a consistent pattern emerges:

“I thought that was covered.”

“No one explained that to me.”

“I wish I had reviewed this sooner.”

Insurance is not just about having a policy in place. It is about understanding how that policy responds in real-world situations.

A Local Approach to Reviewing Your Coverage

As part of the Finger Lakes community, we believe homeowners should have a clear understanding of their coverage before they need to rely on it.

We offer straightforward, no-pressure coverage reviews that include:

• A clear explanation of your current policy

• Identification of potential gaps based on local risks

• Honest answers to your questions

• Guidance on whether any adjustments make sense for your situation

Looking Ahead

Seasonal weather in the Finger Lakes is predictable in one sense: it will come. The better question is whether your coverage reflects the realities of where you live.

Taking the time to review now can help ensure you are prepared when it matters most.

Financial Literacy Month: Why Employers Play a Bigger Role Than They Think

Thu, 09 Apr 2026 19:07:54 GMT

April is Financial Literacy Month, and most of the conversation tends to focus on individuals. Budgeting, saving, managing debt, planning for retirement. All important topics, but often framed as personal responsibilities.

What gets overlooked is how much of an employee’s financial life is shaped at work. From how pay is structured, to how benefits are communicated, to whether retirement options are understood or even used, employers have a direct influence on how confident and informed employees feel about their finances. It is not always intentional, but it is significant.

Where Financial Literacy Shows Up at Work

For many employees, the workplace is the primary place where financial decisions are made or reinforced.

Think about what flows through an employer:

Paychecks and how they are calculated
Tax withholdings and deductions
Health insurance contributions
Retirement plan participation and employer match
Bonuses, commissions, and variable compensation

These are not small details. They are the building blocks of how employees understand their income, manage expenses, and plan for the future.

When those elements are clear and easy to navigate, employees tend to feel more in control. When they are confusing or inconsistent, it can lead to frustration, disengagement, or avoidable financial stress.

The Reality: Many Employees Are Still Guessing

Even in well-run organizations, it is common for employees to have gaps in understanding.

Questions like:

“Why did my paycheck change this period?”
“What exactly is being deducted from my pay?”
“Am I contributing enough to my 401(k)?”
“How does my health plan actually impact my out-of-pocket costs?”

These are not uncommon, and they are not always asked out loud.

When employees are unsure, they often make assumptions or avoid decisions altogether. That might mean underutilizing benefits, delaying retirement contributions, or feeling less confident about their financial situation overall.

Why This Matters More Than It Seems

Financial literacy is not just a personal issue. It has a direct impact on the workplace, and employees who feel financially uncertain are more likely to:

Experience stress that carries into the workday
Be distracted or less engaged
Delay important decisions like retirement planning
Ask more reactive questions that take time to address

On the other hand, when employees understand how their pay and benefits work, there is a noticeable shift. Communication becomes easier. Trust increases. Fewer issues escalate into larger problems.

It is not about expecting employees to become financial experts. It is about creating an environment where information is clear and decisions feel manageable.

Where Employers Have the Most Influence

Employers do not need to overhaul their entire approach to make an impact. In many cases, financial clarity improves when existing processes are just a little more intentional. A few areas tend to have the biggest influence:

Payroll Transparency

Pay statements should be easy to read and consistent. Employees should be able to quickly understand their gross pay, deductions, and net pay without needing to ask for clarification every time something changes. Even small improvements in how payroll information is presented can reduce confusion.

Benefits Communication

Open Enrollment is not the only time benefits need explanation. Employees often need reminders and context throughout the year. Clear explanations around what plans cover, how contributions work, and how to use benefits in real scenarios can make a meaningful difference.

Retirement Plan Engagement

Offering a retirement plan is one thing. Helping employees understand how to use it is another. Employers who provide basic education around contribution levels, employer match, and long-term impact tend to see stronger participation and better outcomes.

Consistency Across Systems

When payroll, benefits, and HR systems do not align, employees feel it. Conflicting information or multiple places to find answers creates friction. Even if the underlying services are strong, the experience can feel disjointed if everything is not connected.

Financial Literacy as a Workplace Advantage

Financial Literacy Month is a good reminder that supporting employees in this area is not just a benefit. It is part of how a business operates.

Employers who prioritize clarity tend to see:

Fewer payroll and benefits questions
More confident employees
Better utilization of offered benefits
Stronger overall engagement

It does not require a complete redesign. Often, it is the result of tightening communication, simplifying access to information, and making sure systems are working together.

At Simco, this is something we see regularly. When payroll, HR, benefits, and retirement services are aligned, it becomes much easier for employers to provide a clear and consistent experience without adding more administrative burden.

A Few Practical Steps to Start With

If Financial Literacy Month is a prompt to take action, it does not need to be complicated. A few focused steps can go a long way:

Review a sample of employee pay statements and ask if they are easy to understand at a glance
Look at how benefits information is shared outside of Open Enrollment and where there may be gaps
Check that retirement plan details, including employer match, are clearly communicated and easy to access
Identify whether employees have one clear place to go for payroll, benefits, and HR information
Ask managers or HR team members what questions they are hearing most often from employees

These are simple starting points, but they often reveal where clarity can be improved.

Looking Ahead

Financial literacy does not need to be a separate initiative. It is already built into the way employers manage pay, benefits, and communication.

April is a good reminder to take a closer look at how those pieces are working together. When employees understand their finances at work, they are more confident, more engaged, and better positioned to make informed decisions. That benefits both the individual and the organization over time.

Spring Cleaning for Employers: 7 HR and Payroll Areas to Review Before Mid-Year

Tue, 10 Mar 2026 16:32:22 GMT

By early spring, most organizations have settled into the rhythm of the new year. Payroll cycles are running, benefits elections have taken effect, and hiring plans are starting to move forward. It is also around this time that small administrative issues tend to surface. A deduction that was entered incorrectly. A PTO balance that does not quite look right. A job description that no longer reflects what someone actually does day to day.

None of these problems usually start out as major concerns. But when they go unnoticed for months, they can create compliance risks, payroll corrections, or frustrating employee experiences later in the year. Taking a little time now to review a few core HR and payroll areas can help catch issues early and keep your systems running the way they should.

1. Payroll Deductions and Employee Pay Accuracy

Payroll errors rarely happen because someone intentionally entered the wrong information. More often they occur because small changes throughout the year were not reflected consistently across systems. Spring is a good time to review payroll deductions line by line and make sure everything matches current elections and agreements.

Start by checking:

Health, dental, and vision deductions against current benefit elections
Retirement contributions and employer match calculations
Garnishments or wage attachments that may have started or ended
Bonus or commission structures tied to payroll calculations

It is also worth confirming that salary adjustments made at the start of the year were properly applied across payroll and HR records. A mismatch between HR systems and payroll can create issues that compound over time.

Run a payroll audit report if your system allows it. Compare gross wages, deductions, and net pay for a sampling of employees across departments. Look for unusual fluctuations or rounding inconsistencies. Even one small discrepancy can create confusion for employees and require retroactive corrections later.

2. PTO Balances and Accrual Policies

Paid time off policies can quietly become inconsistent if they are not reviewed periodically. Accrual rules may have changed, new hires may have different policies than long-tenured employees, and carryover limits can easily be overlooked. Take time this spring to verify that PTO balances reflect the rules outlined in your employee handbook.

Focus on questions such as:

Are accrual rates being applied correctly based on tenure?
Are carryover limits being enforced as expected?
Have any manual adjustments been made that need documentation?
Do employees clearly understand how their PTO accumulates and resets?

This review also helps identify employees who may have unusually high PTO balances. Addressing those early can help avoid operational challenges later in the year when many employees begin using vacation time.

3. Employee Classification and Job Roles

Misclassification remains one of the most common compliance risks employers face. Over time, job responsibilities evolve, and a position that once qualified for a particular classification may no longer meet the criteria. Use this time to review whether employees are properly classified as exempt or non-exempt under wage and hour laws.

Look closely at:

Employees who received promotions or expanded responsibilities
Positions that involve supervisory duties
Roles that combine administrative and operational tasks

Job descriptions should accurately reflect what employees actually do day to day. If responsibilities have shifted significantly, the classification may need to be reevaluated.

Clear documentation is important here. Updated job descriptions help support classification decisions and provide clarity for both employees and managers.

4. Employee Handbook and Workplace Policies

Policies that felt current a year ago may now need adjustments. Workplace expectations evolve quickly, and spring is a practical time to review whether your handbook reflects the way your organization actually operates.

Pay particular attention to policies related to:

Remote or hybrid work expectations
Use of artificial intelligence tools in the workplace
Timekeeping and attendance procedures
Workplace conduct and communication standards

It is also wise to confirm that any state-specific policies remain compliant with current regulations. If your workforce spans multiple states, small policy differences may need to be addressed.

Updating a handbook does not necessarily mean rewriting the entire document. Sometimes a few targeted revisions can ensure employees have clear guidance and leadership has consistent standards to follow.

5. Benefits Eligibility and Employee Status Changes

Benefits eligibility errors can happen when employee status changes are not updated in a timely manner. Review employees who experienced changes during the past several months. This includes individuals who moved from part-time to full-time status, those who returned from leave, and employees who changed departments or compensation structures. Make sure eligibility for benefits matches the organization’s plan requirements.

Check that:

Newly eligible employees were offered enrollment opportunities
Terminated employees were removed from benefit plans promptly
COBRA notifications were issued when required
Dependent eligibility rules are being followed consistently

Even minor oversights in this area can create complications with carriers or leave employees temporarily without the coverage they expect.

6. Workers’ Compensation Classifications

Workers’ compensation classifications often remain unchanged year after year, even when job duties evolve.

If employees begin performing different tasks than originally described, their classification may no longer match the level of risk associated with the role. Incorrect classifications can lead to inaccurate premium calculations and potential audit findings later.

Take time to review job roles that involve:

Operational or physical work environments
Field service or travel responsibilities
Equipment use or safety considerations

Confirm that the workers’ compensation codes associated with these positions still reflect the work being performed.

Employers who review this annually are often better prepared when insurance audits occur.

7. HR and Payroll System Alignment

Finally, look at how your HR and payroll systems interact with each other .

Many organizations rely on multiple platforms for HR, payroll, benefits administration, and reporting. When systems do not communicate effectively, teams often compensate by manually transferring data between them. That can create hidden inefficiencies and increase the chance of errors.

Ask yourself:

Are employee records consistent across all systems?
Are onboarding updates automatically reflected in payroll and benefits platforms?
Are reporting tools pulling accurate workforce data?

For some employers, this review reveals that processes have become more manual than intended. Working with a partner that integrates HR, payroll, benefits, and insurance services can make much of this coordination significantly easier. At Simco , we help employers align these systems so information flows more smoothly and administrative teams spend less time reconciling data.

A Small Review Now Prevents Bigger Issues Later

Spring reviews do not have to be complicated or time-consuming. Even a few focused hours reviewing payroll accuracy, employee classifications, and benefits records can uncover issues that are much easier to fix now than later in the year. Employers who take time to review these areas early often avoid the mid-year scramble that happens when small inconsistencies finally surface.

A short operational check-in today can help ensure the rest of the year runs more smoothly for both your leadership team and your employees.

5 Auto Insurance Mistakes Drivers Don’t Realize They’re Making

Thu, 05 Mar 2026 21:46:58 GMT

Auto insurance is something most people set up once and rarely revisit. As long as the policy is active and premiums are paid, it’s easy to assume everything is working as it should. But over time, vehicles change, driving habits evolve, and insurance needs shift. Many drivers unknowingly make small decisions that can leave them underprotected, overpaying, or surprised when a claim occurs.

Here are five common auto insurance mistakes drivers make without realizing it, and how a quick review of your coverage can help prevent them.

1. Carrying Only the State Minimum Coverage

Many drivers assume that if they meet their state’s minimum insurance requirements, they’re fully protected. In reality, minimum coverage is typically designed to satisfy legal requirements, not necessarily to protect you financially in a serious accident.

For example, New York requires drivers to carry at least:

$10,000 for property damage for a single crash
$25,000 for bodily injury (and $50,000 for death) for one person in a crash
$50,000 for bodily injury (and $100,000 for death) for two or more people in a crash

These limits allow a vehicle to be legally registered and operated in New York State, but they may not fully cover the costs associated with a major accident, particularly as medical expenses and vehicle repair costs continue to rise. Because of this, many drivers choose higher liability limits to better protect their assets in the event of a serious claim.

2. Assuming Your Policy Automatically Keeps Up With Life Changes

Insurance policies don’t automatically adjust when life changes. Yet many drivers forget to update their coverage when their circumstances shift. For example, adding a teenage driver to the household, purchasing a newer or more expensive vehicle, or even relocating to a different area can all affect the type and amount of coverage you may need.

Common life events that should trigger a policy review include:

Moving to a new home or state
Adding a new driver to the household
Buying or leasing a new vehicle
Changing how often or how far you drive
Using your vehicle for business or gig work

If your insurer isn’t aware of these changes, your coverage may not accurately reflect your current situation, which could create complications or delays if a claim ever occurs.

3. Overlooking the Risk of Being Underinsured

A surprising number of drivers carry coverage that is technically valid but insufficient for real-world risks. While the policy may meet legal requirements, it may not fully protect against the financial impact of a serious accident.

This is especially important when considering uninsured and underinsured motorist coverage . If another driver causes an accident but does not have insurance, or carries only minimal coverage, these protections may help cover injuries or losses that the at-fault driver’s policy cannot.

In situations involving medical bills, lost wages, or long-term injury, the costs can quickly exceed basic policy limits. Without adequate protection in place, drivers may find themselves responsible for expenses they assumed would be covered.

4. Choosing Deductibles Without Reassessing Them

Deductibles often get set once and then forgotten. Over time, however, a deductible that once made sense might no longer align with your financial situation or your comfort level with risk.

For example:

A higher deductible may lower your premium but increase out-of-pocket costs after a claim.
A lower deductible may offer more predictable costs during a claim but can result in higher monthly premiums.

As vehicles age or financial circumstances change, it may make sense to revisit this balance. Some drivers choose to increase deductibles once they have built savings for emergencies, while others prefer lower deductibles to reduce uncertainty in the event of an accident. Periodically reviewing this choice ensures your policy reflects both your budget and your risk tolerance.

5. Not Reviewing Your Policy Regularly

Auto insurance is not meant to be a “set it and forget it” decision. Coverage that made sense a few years ago may no longer reflect your vehicle’s value, your driving habits, or today’s repair and liability costs. Vehicle repair costs, parts availability, and accident-related expenses have all changed significantly in recent years. New vehicle technology, advanced safety systems, and rising labor costs have made repairs more expensive than many drivers realize.

Taking a few minutes once a year to review your policy can help ensure your coverage keeps pace with these changes and continues to provide the protection you expect.

A Quick Coverage Review Can Make a Big Difference

Many auto insurance mistakes aren’t about reckless driving or major oversights. More often, they happen simply because policies are rarely revisited.

A quick review can help you:

confirm liability limits still make sense
evaluate deductibles and coverage options
account for life or vehicle changes
identify potential gaps before a claim occurs

Making Sure Your Coverage Still Fits

At Simco Insurance & Wealth Management, our licensed agents review coverage across multiple carriers to help individuals and families find solutions that fit their needs and budget. If it has been a while since you reviewed your auto insurance, taking a fresh look may help ensure your policy still provides the protection you expect. Because when it comes to insurance, the most expensive mistakes are often the ones people never realize they’re making.

The Hidden Costs of Disconnected HR, Payroll, and Benefits Systems

Wed, 25 Feb 2026 21:40:19 GMT

Over the past few years, employers have adopted more technology, more vendors, and more specialized partners than ever before. On paper, it makes sense. One provider handles payroll. Another manages benefits. A broker oversees commercial insurance. A third-party administrator handles retirement plans.

Individually, each relationship may work well. Collectively, however, fragmentation can quietly create inefficiencies, risk, and missed opportunities that compound over time.

As organizations grow and workforce expectations evolve, more employers are stepping back and asking a bigger question: Is our current structure helping us move faster, or slowing us down?

As an isolved Network Partner, we closely follow industry research and employer sentiment. In isolved’s Second-Annual Business Owner Report, 76% of business owners say owning a business has become more complicated in the past year, with increased costs cited as the leading driver of that complexity.

That complexity often does not stem from one single issue. It builds gradually, especially when systems, vendors, and processes are not aligned.

Here’s where the hidden costs of disconnected workforce management tend to show up.

Administrative Work That Multiplies Instead of Scales

When HR, payroll, benefits, insurance, and retirement services live in separate systems, the workload rarely stays separate. Teams often find themselves entering the same employee data into multiple platforms, reconciling discrepancies between systems, coordinating updates across vendors, and serving as the “go-between” when issues arise.

What starts as manageable complexity can become operational drag as your organization grows. Instead of scaling efficiently, internal teams spend valuable time maintaining systems that do not talk to one another.

In 2026, when speed and agility matter more than ever, duplicated effort is a cost many employers can no longer afford.

Errors That Ripple Across Departments

Disconnected systems increase the risk of misalignment. A simple change, such as a salary update or benefits adjustment, can require coordination across multiple vendors.

When systems are not integrated, even small inconsistencies can lead to:

Incorrect payroll deductions
Delayed or inaccurate retirement contributions
Benefits enrollment discrepancies
Insurance classification or coverage gaps

These issues are rarely intentional. They are structural. And when they occur, they impact compliance, employee trust, and leadership confidence.

The more vendors involved, the more potential points of failure.

Limited Visibility into Workforce Data

Today’s employers are expected to make data-driven decisions. But when workforce data is scattered across multiple platforms, clarity becomes harder to achieve.

Leaders may struggle to accurately analyze total labor costs, forecast benefits spending trends, identify compliance vulnerabilities, or understand retention or engagement patterns.

Without a unified view, decision-making becomes reactive instead of strategic. Employers often know they need better insight, but the systems in place make it difficult to access a full picture.

The Real Cost Isn’t Just Vendor Fees

Fragmentation does not just increase subscription costs. It creates hidden internal expenses that are harder to measure.

Consider the cumulative impact of:

Hours spent managing vendor relationships
Time dedicated to troubleshooting integration gaps
Implementation and training for multiple platforms
Costs associated with compliance corrections
Technology upgrades required to “bridge” disconnected systems

Over time, these operational inefficiencies compound. Resources that could support growth initiatives, employee development, or strategic planning are redirected toward maintaining infrastructure.

The financial impact is rarely immediate. It builds gradually.

Employee Experience Suffers Quietly

Employees feel the effects of fragmentation, even if they cannot articulate the cause. They may encounter multiple logins for payroll and benefits information, confusion about whom to contact for support, delays when issues require coordination between vendors, and inconsistent messaging across systems.

In today’s environment, where employee experience influences retention and recruitment, friction matters. A disconnected backend often creates a disconnected front-end experience.

Why More Employers Are Reconsidering Their Structure

In 2026, employers are thinking beyond cost comparisons. They are asking how their workforce infrastructure supports scalability, compliance confidence, data clarity, leadership decision-making, and a seamless employee experience.

Integration does not mean sacrificing expertise. It means aligning systems and services so they function together rather than independently.

When HR, payroll/HCM, benefits, commercial insurance, and retirement services are coordinated through a unified structure, organizations gain:

Reduced duplication of effort
Stronger compliance alignment
Clearer reporting and analytics
More responsive support
Greater operational efficiency

Most importantly, leaders gain time and visibility to focus on strategy instead of system maintenance.

A Strategic Moment to Evaluate Your Model

March is often a natural checkpoint. The year is underway. Hiring plans are in motion. Benefits utilization data is emerging. Payroll trends are clearer. This is an ideal time to step back and assess whether your vendor structure is supporting your long-term goals or creating unnecessary friction.

If your organization is juggling multiple providers for HR, payroll, benefits, commercial insurance, and retirement services, it may be worth exploring whether a more integrated approach could simplify operations and strengthen outcomes. At Simco , we work with employers who are ready to reduce complexity, improve alignment, and build infrastructure that supports growth rather than slows it down.

The hidden costs of fragmentation rarely show up all at once, but addressing them intentionally can create measurable impact across your organization.

Safer Internet Day 2026: What Smart, Safe AI Use Means for Employers

Tue, 10 Feb 2026 17:40:47 GMT

Today, February 10, 2026, marks Safer Internet Day, a global initiative focused on creating a safer, more responsible digital world. The event is coordinated in the United States by ConnectSafely and is recognized in more than 100 countries worldwide. This year’s theme, “Smart tech, safe choices: Exploring the safe and responsible use of AI,” could not be more timely.

While much of the conversation centers on children and young people, employers have an equally important role to play. Artificial intelligence is already embedded in the workplace, whether through productivity tools, hiring platforms, data analysis, customer interactions, or everyday decision-making. The question for employers is no longer whether AI is being used, but how responsibly and thoughtfully it is being integrated into work environments.

Why Safer Internet Day Matters in the Workplace

AI and smart technology do not just affect personal browsing habits. They influence how employees communicate, create content, analyze information, and make decisions. Without clear guidance, organizations can face real risks, including data privacy concerns, compliance issues, reputational damage, and erosion of trust.

Safer Internet Day serves as a reminder that responsible technology use is not just an IT issue. It is a people, policy, and culture issue, and employers play a critical role in setting expectations.

Smart Tech Requires Clear Choices at Work

The theme “smart tech, safe choices” translates directly to the workplace. Employees are navigating tools that can generate content, summarize data, automate tasks, and make recommendations, sometimes without fully understanding limitations, bias, or data exposure risks.

For employers, this raises important questions:

Are employees clear on when and how AI tools can be used at work?
Do existing policies address data security, confidentiality, and accuracy when using AI?
Are managers equipped to guide teams responsibly, not just efficiently?

Responsible AI use starts with clarity. When expectations are clear, employees are better positioned to make good choices without fear or confusion.

Key Areas Employers Should Be Thinking About

Safer Internet Day 2026 highlights several focus areas that directly apply to business environments.

Generative AI

AI tools can boost productivity, but they can also introduce risk if employees unknowingly share sensitive data or rely on outputs without validation. Employers should provide guidance on acceptable use, data boundaries, and accountability.

Media Literacy and Critical Thinking

AI-generated content can blur the line between fact and fiction. Encouraging critical thinking helps employees evaluate information, verify sources, and avoid spreading misinformation internally or externally.

Civility and Workplace Culture

Digital tools shape how people communicate. Employers set the tone for respectful, professional online interactions, whether through email, chat platforms, or AI-assisted communication.

Wellness, Identity, and Self-Respect

Always-on technology and AI-driven performance pressure can contribute to burnout or insecurity. Employers who acknowledge these realities and promote healthy boundaries help support long-term employee well-being.

Scams, Fraud, and Social Engineering

AI has made scams more sophisticated. Training employees to recognize phishing, deepfakes, and impersonation attempts is now a critical part of risk management.

What Employers Can Do, Starting Now

You do not need a perfect AI strategy to make progress. Even small, intentional steps can help create a safer, smarter digital workplace.

Review existing policies to see where AI and smart technology use should be addressed or clarified. Communicate clear expectations around data protection, confidentiality, and responsible use. Equip managers to have informed conversations with their teams about AI tools. Encourage questions and transparency rather than silent experimentation. Treat responsible technology use as an ongoing conversation, not a one-time rollout.

These actions signal to employees that technology is meant to support their work, not create risk or uncertainty.

A Shared Responsibility for a Better Internet and a Better Workplace

Safer Internet Day’s broader message, “Together for a Better Internet,” applies just as much inside organizations as it does online. Employers, leaders, and employees all share responsibility for how technology is used and how its impact is managed.

When organizations approach AI with intention, clarity, and care, they create workplaces that are not only more productive, but also more secure, ethical, and human.

At Simco, we work with employers to navigate the evolving intersection of technology, people, policy, and risk. If you are thinking about how AI and smart technology fit into your workplace and how to guide employees responsibly, we are here to help .

Is Your Workforce Prepared for Severe Weather?

Fri, 23 Jan 2026 21:57:08 GMT

Severe weather can disrupt business operations faster than almost anything else. From winter storms and flooding to extreme heat, wildfires, and hurricanes, these events don’t just impact buildings and schedules; they impact people, payroll, compliance, and decision-making in real time.

For employers, the question isn’t if severe weather will affect your workforce, but whether you’re prepared when it does. Organizations that plan ahead are better positioned to protect employees, maintain trust, and avoid costly missteps when conditions change quickly.

Preparation Starts Before the Weather Hits

When severe weather develops, decisions often need to be made quickly. Power outages, road closures, and evacuation orders can disrupt normal operations with little warning. The best way to navigate these moments is to lay the groundwork ahead of time, so you’re not starting from scratch when conditions change.

Start by taking a proactive approach:

Identify the types of severe weather most likely to affect your workforce based on geography and job roles
Outline clear safety and response plans so employees know what to do and who to contact
Communicate expectations in advance, including how closures, remote work, and updates will be handled

Preparation isn’t about anticipating every possible outcome. It’s about giving your organization a reliable framework to make decisions calmly, communicate clearly, and adapt as circumstances evolve.

Understanding Your Responsibility as an Employer

As an employer, you are responsible for providing a work environment that keeps people safe, even when conditions outside your control create added risk. Workplace safety laws, including OSHA’s General Duty Clause, require you to address recognized hazards that could lead to serious harm, and severe weather can quickly introduce or intensify those hazards.

Beyond OSHA, additional state and local regulations, industry-specific standards, and insurance requirements may come into play depending on where and how your employees work. Taking time to understand how these obligations align with your policies, procedures, and day-to-day operations helps you respond more confidently when weather conditions threaten employee safety.

Assessing Risk Across Your Workforce

No two workforces face the same risks. A meaningful severe weather plan starts with understanding how geography, job duties, and work environments affect exposure.

Key questions to consider include:

What types of severe weather are most common where employees live and work?
Which roles are essential during disruptions, and which can be performed remotely?
How could weather events impact commuting, utilities, or workplace safety?

Once you have a clearer picture of these risks, document practical safety measures, outline contingency plans, and clearly identify points of contact. When employees know who to reach out to and what steps to follow, they can respond more confidently and safely as conditions change.

Communication When It Matters Most

Power outages, spotty internet, and overwhelmed phone networks can make it difficult to reach employees at the exact moment guidance is needed. Thinking through communication ahead of time, even at a high level, can make a meaningful difference when conditions change quickly.

Start by deciding how you will share updates if your usual tools are unavailable. This might mean designating an alternate way to send messages, choosing a single place where updates will be posted, or clarifying who is responsible for communicating next steps. Even a simple, centralized approach can help employees know where to look for information and what to expect if they don’t hear from you immediately.

Clear direction, shared as early as possible, reduces uncertainty and helps employees make safe decisions without guessing. When people understand how and when updates will be provided, they’re better equipped to respond calmly, even if communication is delayed or limited.

Attendance, No-Shows, and Real-Life Constraints

Severe weather can prevent employees from reporting to work for reasons beyond their control, including unsafe travel conditions, school closures, or power outages. While attendance policies play an important role in normal operations, emergencies often require a more flexible approach. How these situations are handled can shape employee trust long after the weather clears.

Allowing for management discretion during severe weather events gives leaders the ability to respond thoughtfully to individual circumstances. Taking time to understand what employees are dealing with, communicating expectations clearly, and offering reasonable alternatives when possible can go a long way. Flexibility during these moments not only supports safety, but also reinforces engagement, loyalty, and confidence in leadership.

When Employees Don’t Feel Safe Traveling

Even when your workplace remains open, some employees may not feel safe commuting. Encourage open, honest conversations so concerns can be addressed early, and be prepared to offer practical alternatives such as temporary remote work, adjusted schedules, or time off when appropriate. It’s also helpful to understand what support may already be available through your business insurance coverage, as some policies include provisions for lodging, travel, or temporary relocation for employees in critical roles. Reviewing these options with your insurance advisor ahead of time can provide clarity and help you make timely, confident decisions when severe weather impacts operations.

Closures and Pay

Weather-related closures raise important wage and hour questions.

Nonexempt employees generally must be paid only for hours worked, though employers may choose to pay or require PTO use based on policy.
Exempt employees are typically entitled to their full salary for any week in which they perform work, even if the business closes for part of the week.

Clear policies and consistent application are essential to avoiding payroll and compliance issues.

Leave Protections and Legal Considerations

Severe weather may trigger eligibility for various job-protected leaves, including:

Family and Medical Leave Act (FMLA)
Military or National Guard service
Disability accommodations
State-specific emergency leave laws

Be prepared to recognize when these protections apply and provide required notices in a timely manner.

Workplace Injuries During Severe Weather

If an employee is injured while working during severe weather, immediate medical care should always be the top priority. Once the situation is stabilized and the employee is safe, ensure the injury is reported properly in line with workers’ compensation requirements and, where applicable, OSHA recordkeeping rules.

After the initial response and reporting are complete, take time to review what happened. Looking closely at the circumstances and identifying any corrective steps, whether that involves adjusting procedures, equipment, or scheduling, can help you reduce the risk of similar incidents in the future and reinforce a safer work environment overall.

Extended Disruptions: Layoffs, Furloughs, and Alternatives

When severe weather leads to prolonged disruptions, you may need to evaluate options such as temporary layoffs, furloughs, or reduced schedules. Each of these paths comes with important considerations, including how pay, benefits, unemployment eligibility, and employee morale may be affected. Taking the time to document your decisions, apply them consistently, and communicate clearly with employees can help reduce confusion and protect both your workforce and your organization during an already challenging time.

Flexible Scheduling as a Safety Tool

Alternative schedules can help protect employees when conditions are unsafe at certain times of day. Adjusted start times, split shifts, or temporary remote work arrangements can reduce risk while maintaining operations. Flexibility is often one of the most effective tools you have as an employer during severe weather events.

Supporting Employees Beyond the Workplace

Severe weather affects employees at home as well. Consider offering:

Emergency supplies or safety resources
Temporary lodging or travel assistance
Crisis-related financial support

Mental health support is also critical. Access to employee assistance programs, wellness benefits, and time off can help employees manage stress during and after a disaster.

Staying Alert as Conditions Evolve

Government responses to severe weather can shift quickly and may include emergency declarations, executive orders, or new employment requirements. Staying aware of changes in the jurisdictions where your employees work helps you adjust policies and practices as needed.

After the immediate disruption, encouraging volunteer or community support efforts can also help reinforce a culture of care and resilience.

So, Is Your Workforce Ready?

Severe weather may be unpredictable, but your response to it doesn’t have to feel like a scramble. When you take time to plan ahead, communicate clearly, and lead with flexibility, you give your organization a steadier footing to protect your workforce and keep operations moving when disruptions occur.

At Simco, we help employers align HR, payroll, benefits, compliance, and commercial insurance so they’re ready when the unexpected happens. If you’re unsure whether your current policies or systems are prepared for severe weather, our team is here to help. Click here to get in touch.

Simco Insurance & Wealth Management’s 2025 Year in Review

Wed, 07 Jan 2026 23:04:37 GMT

At Simco Insurance & Wealth Management, 2025 was a year defined by refinement. Rather than chasing growth for growth’s sake, our focus was on designing better systems, improving the rhythm of our work, and removing friction from the moments that matter most to our clients. Every adjustment was made with one priority in mind: creating an experience that feels organized, responsive, and genuinely supportive for the individuals and families we serve.

This recap highlights the operational progress and strategic shifts that shaped our year. For our clients, these efforts show up as clearer communication, smoother appointments, and more confident guidance. For those getting to know Simco Insurance & Wealth Management for the first time, it offers a look at how we’re intentionally preparing our team, tools, and processes to meet rising expectations with care and consistency.

Designing Retention With Intention

One of the most meaningful accomplishments this year was the development of an automated retention process focused on high-impact client touchpoints. By taking a closer look at recurring needs and communication patterns, the team built a system that strengthens relationships while reducing dependence on manual follow-up. This structure helps ensure consistency and follow-through, even during our busiest periods.

As a result, we’re able to stay more connected, responsive, and proactive, reinforcing trust and delivering a more reliable client experience.

A More Strategic Approach to AEP Planning

Preparation for the Annual Enrollment Period (AEP) 2026 began earlier and more strategically than ever before. In September, the team launched a strategic early booking initiative, starting one full month ahead of the industry norm.

The goal was twofold: maximize retention of existing clients while preserving capacity to support new business. The outcome exceeded expectations. More than 75% of existing clients were booked before AEP officially began , creating breathing room, reducing pressure, and allowing agents to focus fully on each client interaction.

Just as importantly, this initiative produced a measurable, repeatable system that can be refined and reused for future AEP cycles.

Visibility That Drives Accountability

To support better planning and performance, the team developed a Book of Business Tracker that provides real-time visibility into client retention and new enrollments.

This tool created clearer accountability for agent performance while also improving forecasting and decision-making throughout AEP. With better data came better conversations, better pacing, and more confident leadership.

Communication and Automation That Protect Relationships

Clear, timely communication is essential during periods of change. In 2025, the team produced and automated targeted emails for clients losing their plans, ensuring they were informed early and guided through next steps.

These systems helped protect client relationships, reduce uncertainty, and reinforce Simco’s reputation for calm, proactive service, even in complex or time-sensitive situations.

Reimagining the Client Appointment Experience

Much of the year’s progress focused on improving the flow and efficiency of daily client interactions. The scheduling process was redesigned to eliminate bottlenecks, overlapping appointments, and unnecessary delays. The result was a smoother daily rhythm, shorter wait times, and a noticeably calmer office environment.

Additional improvements included:

Creating cubicle-based laptops to help clients complete CareValue forms efficiently
Developing confirmation emails with embedded surveys so clients can submit doctors and medications in advance
Tracking visits versus enrollments to ensure clients move fully through the process

Together, these enhancements cut average appointment time by 50% , effectively doubling agent capacity while preserving quality and care.

Strengthening Data Accuracy and Operational Support

Behind the scenes, the team focused on maintaining clean, reliable data by entering missing client information and policy details on behalf of agents when needed. Repetitive processes were streamlined through automation and shared resources, reducing friction and freeing agents to focus on client relationships rather than administrative tasks.

Every workflow was designed with scalability in mind: systems that can be replicated, measured, and improved year after year.

Working on the Business, Not Just in It

Throughout 2025, the Simco Insurance & Wealth Management team embraced the Traction principle of working on the business, not just in it. Continuous improvement, team empowerment, and thoughtful system design guided every decision. Each change reinforced Simco’s Core Values and Vision, ensuring that every client touchpoint reflects consistency, clarity, and care.

Our Path Forward Into 2026

The work completed this year has created a stronger foundation for what’s next. With smarter systems, clearer data, and a more intentional client experience, we are positioned to serve individuals and families with even greater confidence in 2026 and beyond at Simco I&WM.

Thank you to our clients for your trust, and to our team for the dedication and care that made this progress possible.

We’re so proud of what we’ve built, and even more excited about where we’re headed!

This year-in-review report was developed by Shena Edington-Bright, Team Lead at Simco Insurance & Wealth Management.

Simco’s 2025 Year in Review

Mon, 05 Jan 2026 18:16:22 GMT

As the business landscape continues to evolve, so does Simco. While 2025 may have looked like a year of quiet focus from the outside, it was anything but. Behind the scenes, our teams were strengthening the systems and structures that support our HCM / payroll, benefits, HR, retirement, and commercial insurance services, all with one goal in mind: to deliver a smoother, more dependable, and more proactive client experience.

This recap offers a high-level look at what we’ve been building. If you're part of our existing client community, you’ll see how these investments enhance the service you receive every day. And for prospective partners and the broader market, consider this a window into how Simco is evolving to meet the growing expectations of the modern employer.

A Stronger Foundation for the Future

Much of our work throughout 2025 focused on reinforcing the operational backbone of Simco: the processes, tools, and training that enable our teams to support clients with consistency and confidence.

We refined and standardized the core elements of our service model, including:

Onboarding processes: creating a smoother, more predictable start for new clients by clarifying steps, responsibilities, timelines, and handoffs, ensuring everyone begins their Simco partnership with full visibility and support.

Day-to-day service workflows: enhancing how requests are managed, tracked, and communicated so that clients experience faster responses, fewer delays, and a more proactive approach to problem-solving.

Renewal experiences across multiple service lines: strengthening the structure behind annual renewals so they are more organized, timely, and transparent, with clearer communication and better preparation on both sides.

By strengthening the infrastructure that supports every client interaction, we’re ensuring that growth never comes at the expense of quality.

Communication That Sets Clear Expectations

One of the most meaningful shifts this year came from improving the clarity and cadence of communication. Whether you're a current Simco client or exploring us as a potential partner, you’ll see a growing emphasis on:

Setting expectations early: ensuring clients understand timelines, responsibilities, next steps, and key milestones upfront so there’s no confusion as projects or service requests move forward.

Addressing issues proactively: identifying potential challenges before they surface, communicating them quickly, and offering solutions early to prevent disruptions.

Creating more transparency in every interaction: providing clearer insights into processes, status updates, and decision-making so clients always know where things stand and what’s happening behind the scenes.

This work helps eliminate surprises and creates a smoother, more predictable experience.

Technology That Makes Service Smarter

2025 also brought strategic technology upgrades designed to improve accuracy, efficiency, and visibility.

Some key milestones include:

Expanded use of integrations and automations across platforms like isolved
Enhanced reporting and improved data accuracy
New tools to support onboarding, renewals, and Open Enrollment
The build-out of our new CRM, rolling out internally to employees in January 2026

For our clients, this CRM will grow into a client-facing portal that ultimately brings our services together in one place. It will give you clearer visibility into service activity, smoother access to support, and a more connected experience across everything you work with us on. We’re genuinely excited about what this unlocks, not just in terms of upgrading technology, but in how it helps us close gaps, improve communication, and support you more seamlessly across all areas of your business.

A More Coordinated Open Enrollment Season

The Simco Benefits Team completed Open Enrollment two weeks faster than the previous year, thanks to strengthened planning, better communication, and tighter internal coordination.

This improvement reflects our broader goal: to create processes that scale with growing demand while remaining predictable and client-centered.

A Strategic Shift: Separating Our B2B and B2C Divisions

In 2025, we completed the structural separation of our consumer-facing services, Simco Insurance & Wealth Management, from our core B2B operations. This was not simply an internal reorganization, but a strategic step toward honoring the very real differences between the needs of businesses and the needs of individuals and families. Employers require scalable systems, predictable processes, and deep operational support. Individuals, on the other hand, seek personalized guidance, protection, and long-term financial clarity. By creating space for each division to develop independently, we positioned both sides of our organization to serve their audiences with greater intention and expertise.

As our service offerings have expanded, so has the complexity of the problems we solve. The separation enables our B2B team to focus fully on the demands of an employer environment, including compliance, data accuracy, HR workflows, benefits strategy, service scalability, and beyond. At the same time, the B2C division can continue developing its advisory capabilities, client education tools, and one-to-one support models. Both sides continue to share the same core values, high standards, and service philosophy, but each now has the room to innovate in ways that make the most sense for the communities they serve.

We want to ensure that whether you’re engaging with Simco as an employer, or with Simco Insurance & Wealth Management as an individual or family, you’re connected to a team built specifically for your needs without losing the warmth, consistency, or integrity that define the Simco brand.

Growing Without Losing What Makes Us, Us and What This Means for Those We Serve

2025 was a year of meaningful expansion for Simco through new partnerships and client relationships. But growth alone isn’t the metric we celebrate, it’s sustainable growth. Behind the scenes, we focused on building structure and scalability so that every new relationship receives the same level of attention and consistency our long-standing clients expect from us.

Whether you're already part of the Simco family or seeing us for the first time, here’s what our 2025 investments translate to:

More consistency in how we serve
Greater proactivity in identifying and addressing issues
Enhanced accuracy and efficiency throughout every process
Improved capacity to support continued growth and complexity
A stronger, smarter foundation for the years ahead

To our current clients: thank you for trusting us with your business. Everything we built this year was designed to enhance the experience you rely on.

To those learning about Simco for the first time: consider this a preview of the service structure we believe all employers should expect, both today and in the future.

Looking Ahead to 2026

We’re entering the new year with momentum, clarity, and a renewed commitment to continuous improvement. The work we completed in 2025 positions us to deliver an even more streamlined, transparent, and dependable experience in 2026 and beyond.

Thank you for being part of our journey and for giving us the opportunity to support yours.

This year-in-review report was developed by Elisha Everson, Director of Operations at Simco.

IRS Mileage Rate Changes for 2026: What Employers Need to Know

Mon, 05 Jan 2026 16:54:02 GMT

As of January 1, 2026, the IRS mileage rate for business use officially increased. Understanding how the 2025 and 2026 rates differ, and how they apply to your organization, can help ensure compliance, accurate reimbursements, and clearer communication with employees.

What Is the IRS Mileage Rate?

The IRS mileage rate is a standardized per-mile amount used to calculate the deductible cost of driving for business, medical, or charitable purposes. For employers, the rate is most often used as a benchmark for reimbursing employees who use their personal vehicles for work.

While private employers are not legally required to reimburse at the IRS rate, it is widely adopted because it:

Provides a consistent and defensible reimbursement standard
Simplifies expense reporting and payroll processing
Helps avoid taxable income issues when reimbursements exceed IRS limits

The IRS Mileage Rate Change for 2026

The IRS announced on December 29, 2025, that the standard mileage rate for business use increased for 2026, while the rate for medical use decreased slightly.

2026 IRS Mileage Rates

Business use: 72.5 cents per mile
Medical use: 20.5 cents per mile
Charitable use: 14 cents per mile

This represents a 2.5-cent increase for business miles compared to 2025. The IRS cited higher overall transportation costs, including fuel volatility, vehicle maintenance, insurance premiums, and depreciation, as key drivers of the increase.

How the 2025 and 2026 Rates Compare

For reference, here are the IRS mileage rates that applied during 2025:

2025 IRS Mileage Rates

Business use: 70 cents per mile
Medical use: 21 cents per mile
Charitable use: 14 cents per mile

To put the change into perspective:

An employee who drove 10,000 business miles in 2025 could deduct or be reimbursed $7,000
That same mileage in 2026 equates to $7,250

While the difference may seem modest, it adds up quickly for organizations with sales teams, field employees, or frequent travel.

What This Means for Employers

For employers, the updated mileage rate affects more than just reimbursement amounts. It has implications for payroll accuracy, tax treatment, and employee expectations.

Key considerations include:

Reimbursement policies: If your organization uses the IRS rate, systems and policies should reflect the 2026 update.
Tax compliance: Reimbursements above the IRS rate may be considered taxable income for employees.
Budgeting and forecasting: Higher reimbursement rates can impact travel and operating expenses.
Employee communication: Clear guidance helps avoid confusion when rates change year over year.

Employers that rely on consistent processes and accurate data will find it easier to manage these changes smoothly.

Are Employers Required to Reimburse at the IRS Mileage Rate?

One of the most common questions employers have is whether they are legally required to reimburse employees at the IRS standard mileage rate. The short answer is no. The IRS mileage rate is not a mandate for private employers; it is a guideline used to determine how much mileage reimbursement can be treated as non-taxable. Employers are free to set their own reimbursement rates based on internal policy, budget considerations, or role-specific needs.

That said, the IRS rate often serves as a practical benchmark. Reimbursing at or below the IRS rate allows employers to treat the reimbursement as non-taxable income for employees, provided proper documentation is maintained. If an organization chooses to reimburse above the IRS rate, the excess amount may need to be treated as taxable wages and included in payroll. Because of this, many employers adopt the IRS rate as a simple, defensible standard that balances fairness to employees with tax and compliance considerations.

Why the IRS Adjusts the Mileage Rate Each Year

The IRS calculates the standard mileage rate using nationwide cost data from the prior year. Factors considered include:

Fuel prices
Vehicle maintenance and repair costs
Insurance premiums
Depreciation and financing costs
Broader transportation cost trends

In recent years, rising vehicle ownership costs and inflation have pushed rates higher. The 2026 increase reflects continued pressure in those areas and is intended to better align the rate with real-world driving expenses.

Best Practices for Managing Mileage Reimbursement

To stay compliant and reduce administrative burden, employers should consider:

Maintaining clear mileage reimbursement policies
Requiring proper documentation of business purpose and mileage
Using digital tools or systems that simplify tracking and reporting (such as GPS-based mileage tracking apps, expense reporting platforms, HCM technology with integrated reimbursement workflows, and mobile tools for real-time trip logging)
Reviewing reimbursement rates annually to align with IRS updates

Accurate mileage tracking not only supports compliance, but also protects both the employer and employee in the event of an audit.

Final Thoughts

Mileage rates will continue to change as transportation costs evolve. Staying informed, updating policies proactively, and ensuring systems are aligned helps employers avoid surprises and maintain trust with employees.

If you have questions about how mileage reimbursement impacts payroll, tax treatment, or employee policies, Simco is here to help. You can click here to get in touch with one of our specialists today.

2026 Retirement Plan Contribution Limits Raised by IRS: Key Updates for 401(k) and More

Thu, 20 Nov 2025 14:56:13 GMT

The IRS recently announced the updated retirement plan contribution limits for 2026, reflecting cost-of-living adjustments and new guidance under the SECURE 2.0 Act. Whether you’re an employer managing a company plan or an employee planning for your future, these changes are important to understand so you can make the most of your retirement savings.

Key Increases for 2026

Some of the most notable updates for defined contribution plans, including 401(k), 403(b), and 457(b) plans, are summarized in the chart below:

Why These Changes Matter for Employers

Understanding these new limits helps you make strategic decisions for your company retirement plan:

Plan compliance: Updated contribution limits affect nondiscrimination testing, annual filings, and IRS reporting requirements. Staying current prevents costly errors and penalties.

Smooth payroll coordination: For Simco payroll clients, we automatically update retirement deferral limits to ensure accurate processing for the 2026 plan year. Employers who do not use Simco payroll must ensure their internal payroll system or provider manually applies these new limits to avoid contribution errors or compliance issues.

Employee engagement: Sharing these updates with your team empowers employees to adjust contributions early and maximize their savings potential. This can boost participation, morale, and long-term financial wellness.

Strategic plan design: Use the new contribution limits as a chance to revisit your plan’s overall strategy. Look at plan features, employer matching, and contribution structures to ensure they encourage participation across your workforce, support long-term savings goals, and align with your company’s broader financial and talent objectives.

Cost management: Knowing the updated limits helps you maintain a balance between competitive employer contributions and overall plan expenses, keeping the plan efficient while delivering meaningful value to employees.

For employees, the higher limits mean more opportunity to grow retirement savings, especially for those nearing retirement age who can take advantage of increased catch-up contributions.

How Simco Can Help

Retirement plan rules and contribution limits can be complex, but we can guide you through them with confidence. We’ll work with you to evaluate Secure Choice , compare private 401(k) or 403(b) options, design a plan that fits your goals, stay compliant, and offer competitive benefits to attract and retain top talent.

 Contact us today to get started!

The Employer's Guide to 2026 Minimum Wage Updates

Wed, 05 Nov 2025 19:44:00 GMT

As we move into 2026, employers across many states and localities are preparing for significant minimum wage increases. Nearly 20 states and more than 40 local jurisdictions will raise their wage thresholds effective January 1, 2026. This poses important planning, budgeting, and compliance considerations, especially for mid-sized employers like those that partner with Simco, where payroll, HR, benefits and advisory services intersect.

Below we’ve summarized key state and local minimum wage updates and outlined the steps you should take now to stay ahead of the changes and mitigate risk.

State-Level Minimum Wage Increases (January 1, 2026)

The table below highlights selected state increases scheduled for January 1, 2026.

Note: This list covers states with announced increases effective January 1, 2026. Some states may still finalize details or schedule mid-year adjustments. Always check your jurisdiction’s official guidance.

Local Jurisdictions: Watch Your City & County

In addition to state increases, dozens of local municipalities are raising minimum wages on January 1, 2026. For many employers, this means you must coordinate across state + city/county + federal requirements and apply the highest applicable rate in each case.

Here are examples of selected city/county rate changes:

Flagstaff, AZ: $18.35
Tucson, AZ: $15.45
Menlo Park, CA: $17.55
Mountain View, CA: $19.70
Minneapolis, Minnesota: $16.37
Seattle, WA: $21.30

These examples underscore how varied and regional wage laws are becoming, meaning your payroll/HCM system must reflect location-based pay rules correctly.

What Employers Should Do Now

Review your workforce location footprint

Identify where your employees physically work (including remote workers) and ensure you apply the correct jurisdiction’s rate (state or local). The highest applicable rate generally wins .

Audit job classifications & salary bands

If some workers already make above the new minimum wage, consider whether internal parity and morale are impacted. Communicate clearly to the team, and coordinate with your HR/advisory services to ensure message consistency.

Update payroll and HCM systems

Ensure your HCM platform (such as isolved through Simco) is configured for the new rates effective 1/1/2026. Verify there are no legacy rules that would pay an outdated rate.

Prepare compliant poster notices & employee communications

Most jurisdictions require updated minimum wage notices. Additionally, inform staff of the upcoming change proactively (especially for minimum wage-eligible roles). Transparent communication is a differentiator for HR excellence.

Labor & Employment Law Posters: New York State & Federal
Federal and New York State law require employers to display up-to-date labor and employment law posters in the workplace. New York additionally requires that these posters be accessible online. Simco can assist you in obtaining both physical and electronic posters to ensure full compliance.

Physical posters: $50 each + $12.95 shipping (includes digital copy)
Electronic posters (only): $50 per poster

For assistance, please contact Melissa Haubner, HR Account Manager , at 585-441-0858 .

Budget for wage cost impact

Increases in minimum wage often ripple outward. Raises for entry-level staff may trigger internal wage progression adjustments or revisions to staffing models. Work with your benefits and commercial-insurance advisors to incorporate these into your 2026 planning.

Final Word

Employers must act now to ensure compliance and smooth operations in 2026. Review where your employees work, audit pay structures, update payroll and HCM systems, post required notices, communicate changes clearly, and adjust budgets to account for wage increases. Taking these steps now minimizes risk and keeps your workforce informed and fairly compensated.

Have questions? Simco is here to help! Click here to get in touch.

The Benefits of Outsourcing HR: Save Time, Cut Costs, and Boost Engagement

Fri, 24 Oct 2025 22:26:51 GMT

When HR Is Overloaded, Your Business Feels It

For many small to mid-sized businesses, HR is one of the most critical (and most overextended) functions. From payroll and benefits to onboarding and compliance reporting, administrative tasks can quickly consume your team’s time, leaving little room for strategic work that actually moves the business forward.

Sound familiar? You’re not alone. A recent survey from Champions of Change: isolved’s Fourth-Annual HR Leaders’ Research Study found that 51% of HR leaders spend four or more hours a day answering repetitive questions. This time could be better spent on employee engagement, culture, and growth initiatives. When HR teams are pulled in too many directions, the consequences ripple across the entire organization, resulting in missed deadlines, frustrated staff, compliance risks, and ultimately, higher turnover.

Why HR Leaders Consider Outsourcing

Outsourcing HR isn’t just for businesses without dedicated HR teams. In fact, a survey of 1,000 HR decision-makers found that 76% could benefit from outsourcing certain tasks, even though only 54% currently have plans to do so. HR outsourcing allows organizations to offload both core and strategic tasks, including payroll, benefits administration, recruitment, onboarding, compliance support, performance management, employee relations, and workforce analytics, without adding headcount. This augmentation provides a multiplier effect: a small HR team can function like a much larger one, accomplishing more in less time.

By leveraging experienced HR professionals through outsourcing, organizations can free up internal HR teams to focus on initiatives that directly impact business growth, such as talent development, employee engagement, and culture-building. Routine administrative tasks, when handled externally, no longer distract from these high-value priorities.

The True Cost of Administrative Overload

Overburdened HR teams don’t just affect your internal operations; they impact your employees’ experience. Inconsistent onboarding can create a rocky first impression for new hires. Delayed payroll or benefits questions lead to frustration and decreased trust. Compliance oversights expose your business to fines and legal risk. Even small inefficiencies add up. According to the National Association of Professional Employer Organizations (NAPEO), organizations that leverage an outsourced HR model achieve an average ROI of 27.2% per year, saving around $1,775 per employee while paying $1,395 per employee for outsourced services. That’s not just cost savings, it’s a reinvestment in your team and your business.

The Power of Strategic HR Outsourcing

Outsourcing doesn’t mean giving up control or handing HR off to a faceless provider. Done strategically, it’s about extending your team. Administrative tasks like payroll, benefits, onboarding, and reporting can be handled efficiently by experts, while HR teams gain confidence that compliance requirements are being met. Most importantly, it frees internal HR to pivot from reactive, day-to-day tasks toward engagement, culture-building, and retention strategies. Outsourced HR support can scale with your business, providing additional expertise during busy periods, leaves of absence, or rapid growth phases.

The impact is clear. Teams feel supported, employees feel heard, and the organization operates smarter, not harder. With the right outsourcing partner, a small HR team can act like a team of 10, and a team of five can perform like a team of 25, all while maintaining compliance and efficiency.

Retention Starts With the Right Employee Experience

When administrative burdens are reduced, HR teams can focus on creating meaningful experiences for employees. Transparent processes around pay, benefits, and policies build trust. Faster, more organized onboarding leaves a strong first impression. Access to modern self-service HCM tools empowers employees to manage their own information, reducing repetitive questions and improving engagement. By leveraging experienced HR professionals to handle gaps in internal processes, organizations can enhance overall employee satisfaction, ensuring every interaction, from onboarding to open enrollment, feels seamless and supportive.

A Smarter Approach to HR Means a Stronger Business

Across industries, companies are recognizing that HR outsourcing is no longer a luxury. It’s a strategic advantage. Organizations that adopt a blended model of technology and advisory support report measurable reductions in administrative workload, cost savings compared to maintaining fully in-house HR teams, and improved engagement for employees. Strategic HR outsourcing allows internal teams to shift from transactional tasks to big-picture initiatives, creating a more resilient, efficient, and high-performing workforce.

At the end of the day, HR isn’t just a function; it’s the backbone of your organization. When it’s overextended, the entire business suffers. But with the right support, HR teams can focus on meaningful initiatives, employees feel more valued, and the business benefits from measurable ROI. Strategic HR outsourcing isn’t about replacing your team, it’s about empowering it. Your people, your culture, and your bottom line all benefit.

Curious how Simco's HR Advisory services can help your business? Let's talk today.

Your Medicare Plan Is Discontinued: What’s Next?

Tue, 14 Oct 2025 18:58:13 GMT

If you recently received notice that your Medicare plan, or Medicare Advantage plan, is being discontinued, you’re not alone. Across the country (and right here in New York), insurers are scaling back or exiting less profitable markets ( Kiplinger ).

While this can feel stressful, there are steps you can take to make sure your coverage doesn’t lapse and to find a better plan for your health and budget.

Why Are Plans Being Discontinued?

A mix of financial pressure, federal reimbursement changes, and rising health costs is driving insurers to reduce their Medicare Advantage footprints:

Some major insurers are cutting back or exiting entire counties. For example, UnitedHealth announced it will discontinue its Medicare Advantage presence in 109 U.S. counties in 2026, according to Reuters .

Local carriers in New York are also making changes: MVP is dropping several plans, and CDPHP is eliminating certain drug-coverage options, the Times Union explains .

These shifts are happening alongside tighter government funding and increased regulatory strain.

Because insurers must absorb the extra cost of covering benefits while meeting regulatory caps (for example, on prescription drug out-of-pocket limits), some plans become financially unsustainable and are discontinued ( the Kaiser Family Foundation ).

Steps to Take if Your Plan Is Discontinued

Here’s how to act so you don’t lose coverage:

1. Review the notice you received carefully

Your insurer is required to send you a non-renewal or discontinuance notice. It often includes deadlines, whether you can enroll through a Special Enrollment Period (SEP), and what options you have.

2. Note the relevant enrollment period

The Annual Enrollment Period (AEP) runs October 15 to December 7, 2025 , during which you can switch Medicare Advantage or Part D plans.

If your plan was discontinued, some notices allow you to select a new plan until December 31 without penalty.

In limited cases, you may qualify for a Special Enrollment Period (SEP) following the discontinuation.

3. Research your options early

Don’t wait until the last minute. Compare plans available in your area. Key things to look at:

Provider networks: Will your doctors still be covered?

Drug formularies: Does the plan cover your medications and at what cost?

Premiums, deductibles, and out-of-pocket max: These can vary significantly.

Benefit trade-offs: Some plans reduce supplemental benefits (vision, dental, wellness perks) when trying to maintain financial viability.

4. Enroll in the new plan

Submit your enrollment by the relevant deadline (typically December 7 for the Annual Enrollment Period (AEP). However, If your plan was discontinued, you may have until December 31 to choose a new one without penalty). Make sure the new plan starts January 1 to avoid coverage gaps.

5. If your plan wasn’t discontinued, still review

Even if your current plan remains active, benefits, networks, and costs often change each year. It’s wise to compare alternatives anyway, especially after insurer shake-ups.

Why Timing & Support Matter

Delays cost you: Failing to enroll by deadlines could mean losing drug coverage or being locked into a less ideal plan.

Support can ease the burden: Licensed agents can help you compare side-by-side, explain trade-offs, and guide you through enrollment.

You deserve the best match: Everyone’s health and financial needs differ. Don’t settle for the first available option unless it truly fits.

How Simco Can Help

At Simco, we understand the stress of sudden plan changes. Our licensed insurance advisors are ready to:

Help you interpret your discontinuance notice

Compare plan options available in your area

Assist with enrollment paperwork

Explain benefit trade-offs and cost implications

You don’t have to navigate this alone. Whether your Medicare Advantage plan was discontinued or you’re simply exploring your options, our team is here to support you.

Contact us today to schedule a 1-on-1 consultation, and let us help you find the plan that keeps you covered and confident in 2026 and beyond.

isolved Named #1 for SMBs Across the Employee Lifecycle

Fri, 03 Oct 2025 21:55:43 GMT

At Simco, we’re proud to be a trusted isolved Network Partner , which means the Human Capital Management (HCM) technology we deliver to our clients is powered by isolved People Cloud™. And now there’s even more reason to celebrate: isolved has been recognized as the #1 SMB HCM provider across the entire employee lifecycle in Sapient Insights Group’s 28th Annual HR Systems Survey.

This annual survey is one of the most respected benchmarks in the HR technology industry. With feedback from over 4,500 HR professionals, Sapient Insights captures the real voice of the customer by evaluating vendors across two critical areas: User Experience (UX) and Vendor Satisfaction (VS). isolved earned an impressive 38 badges this year, the most awarded SMB vendor for the second year in a row, and ranked #1 in 13 different SMB categories .

Breaking Down the Results

isolved’s recognition wasn’t limited to a single function. It spanned the entire employee lifecycle, covering everything from payroll and benefits to recruiting and workforce management. Highlights from the survey include:

Payroll — Ranked #1 in both User Experience and Vendor Satisfaction for SMBs
Core HR — #1 in Vendor Satisfaction
Benefits — #1 in User Experience
Recruiting — #1 in both User Experience and Vendor Satisfaction
Time & Attendance — #1 in both User Experience and Vendor Satisfaction
Skills Management — #1 in User Experience
Rewards & Recognition — #1 in User Experience

In addition, isolved placed in the Top 5 across numerous other categories like onboarding, learning, performance management, workforce scheduling, and contingent management.

What does this mean? isolved’s solution isn’t just strong in one area, it’s consistently delivering across all the areas that matter most for small and mid-sized businesses.

Why This Matters for SMBs

Today’s SMBs face more challenges than ever. Recruiting is competitive, employee expectations are higher, and compliance requirements grow more complex every year. Business owners often find themselves piecing together multiple vendors to handle payroll, HR, benefits, and insurance, adding complexity and risk.

isolved’s sweep across the Sapient Insights report shows that SMBs no longer have to choose between great payroll software and effective talent tools, or between benefits management and workforce scheduling. With isolved, the technology already covers the full employee lifecycle, validated by real-world HR pros.

From Recognition to Results

isolved’s 38 badges and top rankings validate what our clients experience every day:

Accuracy and trust in payroll with fewer errors and compliance risks.
Simplified benefits administration that keeps employees happy and businesses competitive.
Recruiting and onboarding tools that make hiring more effective.
Time and scheduling solutions that align workforce needs with operational efficiency.

These results aren’t just about technology; they’re about enabling SMBs to compete, thrive, and support their people better.

The Simco Advantage: More Than Just Software

Here’s the ultimate key: technology is only half of the solution.

Technology is powerful, but the real impact comes from how it’s put into practice. At Simco, we go beyond simply providing software. We deliver a fully integrated HCM and advisory solution that ties every part of workforce management together.

Here’s what sets us apart:

One Point of Contact: A dedicated resource who understands your business and ensures your HCM, HR, benefits, insurance, and retirement services work in sync.
All-in-One Partner: From payroll and HR to insurance and 401(k) plans, we eliminate the hassle of juggling multiple vendors.
Advisory + Optimization: We don’t just implement technology. We guide you in using it to strengthen compliance, employee engagement, and growth strategies.

As your business grows, your needs change. By pairing isolved’s award-winning technology with Simco’s hands-on expertise, we help you stay ahead, operate more efficiently, and build better employee experiences.

Key Takeaways

isolved’s recognition in the Sapient Insights report shows that SMBs have access to enterprise-grade HR technology tailored for their needs. And with Simco as your partner, you’ll never have to choose between the strength of your platform and the quality of your service; you’ll have both.

Want to see how Simco + isolved can streamline your payroll, HR, benefits, and more? Contact us today.

Top 5 Cybersecurity Mistakes That Put Your Business at Risk

Wed, 01 Oct 2025 15:24:15 GMT

In today’s digital-first world, small and mid-sized businesses are just as vulnerable, if not more so, than large corporations when it comes to cyberattacks. Limited budgets, fewer in-house IT resources, and the perception of being “too small to target” often leave business owners dangerously exposed. The reality? Hackers don’t discriminate based on size; they look for the easiest entry points.

Here are the top five mistakes businesses make, how to avoid them, and what steps you can take today to protect your company, your employees, and your bottom line.

1. Relying on Weak or Outdated Passwords

Passwords are often the first line of defense, and also the weakest. Too many businesses rely on simple or reused passwords that can be cracked in seconds with modern tools.

The Modern MFA Landscape
While passwords remain standard, multi-factor authentication (MFA) has become the new baseline. However, how you implement MFA matters:

Avoid email for MFA codes. If a phishing attack compromises an employee’s inbox, bad actors can intercept the code and access sensitive systems.
SMS is better but not bulletproof. Text messages provide an extra layer of security but can still be intercepted.
Authenticator apps are the gold standard. Tools like Authy, Microsoft Authenticator, or Google Authenticator create time-based one-time codes that aren’t tied to email or SMS.

Forward-looking companies are also exploring passwordless authentication, a model that reduces dependence on static credentials altogether. Until then, tightening password hygiene and upgrading MFA methods should be immediate priorities.

2. Overlooking Employee Training

Even the most advanced cybersecurity tools can’t stop an employee from clicking a malicious link or downloading infected files. Human error remains the biggest vulnerability in most organizations.

What Employees Need to Know
Instead of broad, once-a-year sessions, ongoing training should focus on real-world risks employees face daily. Consider including:

How to spot suspicious links and attachments
Why “urgent” or “CEO fraud” emails are red flags
Safe internet practices for remote or hybrid workers
How to report suspicious activity without fear of blame

Building a Culture of Cyber Awareness

Cybersecurity isn’t just an IT issue; it’s a company-wide culture. Leadership should model secure behavior and celebrate employees who catch threats. Over time, security becomes second nature rather than an afterthought.

3. Neglecting Regular Software Updates

Software vendors release updates for a reason: to fix vulnerabilities. Delaying or ignoring these updates gives hackers a direct pathway into your systems.

The Risk of Outdated Systems
Running outdated operating systems, browsers, or applications often leaves “open doors” attackers can exploit. Businesses that don’t patch quickly enough have been at the center of major breaches.

Automating updates or assigning a designated IT contact for patch management ensures vulnerabilities are closed before they can be exploited. Even for smaller businesses without dedicated IT staff, outsourced providers or managed IT services can fill this role affordably.

4. Failing to Prepare an Incident Response Plan (IRP)

Too many businesses wait until a breach happens to figure out how to respond. By then, panic sets in, time is lost, and the financial damage increases.

Why an IRP Matters
An Incident Response Plan is essentially a playbook for what your business will do in the first 24–72 hours after an attack. It should outline:

Who is responsible for containment and communication
Steps for isolating affected systems
Legal or regulatory reporting requirements
How to restore backups and resume operations

Tip: Run Cybersecurity Fire Drills

Just like fire drills, businesses should run simulated cyber incidents. Testing your IRP helps employees understand their roles and uncovers gaps before a real attack occurs.

5. Assuming Insurance Alone Is Enough

Some business owners mistakenly believe their general liability insurance will cover cyber-related losses. Unfortunately, most policies exclude data breaches, ransomware, or social engineering scams.

The Role of Cyber Liability Insurance

Cyber liability insurance fills these gaps by covering costs like forensic investigations, customer notifications, legal fees, regulatory fines, and even ransom payments (where legal). For small businesses, this coverage can mean the difference between survival and bankruptcy after a breach.

But insurance should never replace prevention. Instead, think of it as a financial safety net that complements strong security practices, not one that replaces them.

Click here to learn more about how Simco’s Commercial Insurance team can help protect your business with cyber and data breach coverage and beyond.

Secure Your Business for the Future

Cybersecurity is no longer optional for businesses; it’s a core part of protecting your employees, customers, and reputation. By addressing these five common mistakes, you’ll not only reduce your risk of an attack but also build trust with clients who want assurance that their data is safe in your hands.

Taking proactive steps now, including strengthening authentication, investing in training, creating an IRP, and supplementing with cyber liability insurance, can save untold amounts of money, stress, and reputational damage later.

How to Avoid Gaps in Coverage During Open Enrollment Season

Tue, 23 Sep 2025 19:04:13 GMT

Open Enrollment season is just around the corner, running from October 15 to December 7 for Medicare and November 1 to January 15 for Marketplace/individual health plans (NYSOH in New York) . This is the annual window when you can review, change, or enroll in health insurance and Medicare coverage.

But with deadlines, plan changes, and fine print to consider, many people unintentionally leave themselves exposed to gaps in coverage: periods when they aren’t insured. These gaps can lead to unexpected costs, denied claims, and stress for you and your family.

Here’s how to make sure your coverage is seamless heading into 2026.

1. Know Your Enrollment Dates

Missing the open enrollment deadlines is the most common cause of coverage gaps. Mark your calendar for:

Medicare Open Enrollment : October 15 – December 7, 2025
Health Insurance Marketplace (NYSOH in NY) : November 1, 2025 – January 15, 2026
Employer-Sponsored Benefits : Dates vary by employer

Tip: Don’t wait until the last week. Plans can take time to process, and waiting until December may mean your new coverage isn’t active on January 1.

2. Review Any Notices From Your Current Plan

Insurance companies often send letters in the fall about plan changes for the upcoming year. Some plans are discontinued, premiums may rise, or provider networks may shrink. If you ignore these notices, you could roll into a plan that doesn’t meet your needs, or worse, be left without coverage.

Check your mail and email for plan notices and share them with a licensed agent if you need help understanding the changes.

3. Don’t Assume Last Year’s Plan Is Still Best

Healthcare needs change year to year, and so do insurance options. Prescriptions, providers, or even your financial situation may mean another plan is a better fit. Sticking with last year’s plan without comparing options could result in higher costs or limited benefits.

Make a list of your current doctors, prescriptions, and expected healthcare needs for 2026. Use this to compare plans carefully.

4. Watch for Coverage Overlaps or Lapses

Switching from one plan to another? Be mindful of dates. Sometimes old coverage ends before new coverage begins, leaving a gap. Other times, both plans overlap, causing billing confusion.

Confirm your effective date for the new policy. For most enrollments completed by December 7 (Medicare) or December 15 (Marketplace), coverage will start January 1.

5. Get Help From a Licensed Professional

Navigating Medicare Advantage, Part D, Medigap, or Marketplace health plans can feel overwhelming. Working with a licensed agent can help ensure your coverage aligns with your needs, and that you won’t face any surprises when you need care.

Reach out to Simco’s licensed agents for one-on-one guidance. We’ll walk you through your options and help you avoid coverage gaps.

Final Thoughts

Avoiding gaps in coverage during open enrollment comes down to being proactive, reviewing your options, and enrolling on time. Don’t wait until the last minute. Give yourself the peace of mind that you and your family will be covered heading into 2026.

Simco’s licensed agents are here to help. Whether you’re reviewing Medicare plans, Marketplace options, or supplemental coverage, we’ll make sure you stay protected without interruption.

Contact us today to schedule your coverage review before open enrollment begins.

Strategies for Supporting Employees During the School Year

Mon, 25 Aug 2025 12:57:08 GMT

As the 2025–26 school year gets underway, many employees are navigating the dual pressures of professional responsibilities and family life. For parents of school-aged children, this can mean adjusting to new routines, handling childcare logistics, and managing the emotional ups and downs that often accompany the start of the year.

For employers, this season offers an opportunity to demonstrate support and strengthen employee loyalty. Below are nine strategies businesses can adopt to help their workforce balance work and family demands more effectively.

Flexible Work Options

Flexibility remains one of the most powerful ways to support working parents. Allowing employees to shift their schedules, such as starting earlier or later, or offering hybrid and remote work options helps parents handle school drop-offs, pickups, and unexpected schedule changes. For example, permitting an employee to work from home two mornings a week may relieve the stress of managing transportation while ensuring business needs are still met. When employees feel trusted to manage both work and family responsibilities, engagement and productivity rise.

Back-to-School Support

The transition into a new school year often involves extra expenses and planning. Employers can ease this burden by organizing back-to-school supply drives, offering stipends for educational expenses, or sharing curated lists of local resources like tutoring programs or after-school care. Some businesses even host “lunch and learn” sessions on topics such as family budgeting or time management during the school year. These gestures show employees that the company understands their life outside of work and wants to help them succeed in both areas.

Prioritize Mental Well-Being

Back-to-school season can be stressful for the whole family, with shifting routines, homework expectations, and social adjustments. Employers can proactively support mental health by promoting counseling services, stress management programs, or mindfulness workshops. Offering access to telehealth therapy sessions or creating quiet spaces in the office for breaks can make a tangible difference. Focusing on mental well-being helps employees feel cared for and creates a healthier, more resilient workforce overall.

Paid Time Off for School Activities

Balancing school commitments with work obligations can be difficult without supportive policies. By providing paid time off specifically for school-related events, such as parent-teacher conferences, school plays, or volunteering opportunities, employers can reduce the guilt or anxiety parents may feel about taking time away from work. Even a few hours of school-activity leave per semester can significantly boost morale and demonstrate the company’s commitment to work-life balance.

Childcare Assistance

Childcare remains one of the greatest stressors for working parents. Businesses can step in by offering childcare subsidies, backup childcare arrangements for emergencies, or partnerships with local providers to secure discounted rates. Employers with larger workforces may explore on-site childcare facilities or after-school program collaborations. Even simply sharing information about community resources and vetted childcare options can make a big difference for employees struggling to find reliable solutions.

Open Communication

Encouraging honest, ongoing conversations between managers and employees is essential. Managers should be trained to ask about potential school-year challenges, such as altered availability during drop-off hours or the need to leave for school events, without judgment. Creating a culture where employees feel safe discussing these needs allows managers to find practical solutions, like shifting deadlines or redistributing workloads, that benefit both the employee and the organization.

Employee Assistance Programs (EAPs)

EAPs are often underutilized, yet they can be invaluable during the school year. These programs typically offer access to counseling, parenting support, financial planning, and more. Employers should not only remind employees that these resources exist but also explain how they can be used during this time of year. For example, highlighting financial counseling services in September, when school-related expenses spike, makes the EAP more relevant and accessible.

Family-Friendly Policies

Workplace policies should reflect the realities of family life. Review scheduling practices to avoid early morning or late afternoon meetings when parents are often unavailable. Consider policies that allow parents to swap shifts or trade hours with coworkers. Involving employees in creating or revising family-friendly policies ensures the solutions are practical, widely supported, and foster an inclusive culture that values everyone’s needs.

Recognition Matters

Acknowledging the extra effort parents put in during the school year can have a lasting impact. Recognition doesn’t have to be large-scale, a personal thank-you note, a shout-out during a team meeting, or a small gift card can go a long way toward showing appreciation. Celebrating milestones, like surviving the first week back to school, helps parents feel seen and valued, reinforcing their commitment to the company.

The Bottom Line

Supporting employees during the school year goes beyond providing benefits; it’s about creating an empathetic, flexible, and responsive workplace culture. By adopting these strategies, businesses not only help their employees manage family responsibilities with confidence but also foster a more engaged, loyal, and productive workforce.

Is Your Business Ready for New York’s Secure Choice Savings Program (SCSP)?

Fri, 22 Aug 2025 19:42:26 GMT

New York’s Retirement Plan Mandate Is Almost Here

Big changes are on the horizon for New York businesses. Soon, many employers will be required to provide retirement savings options through the state’s Secure Choice Savings Program. If your business doesn’t already offer a retirement plan, now is the time to understand the rules, prepare your payroll, and explore whether a private plan may be a better fit for you and your employees.

When will this take effect? Program enrollment is anticipated to begin in fall 2025 , at which point eligible employers will have nine months to register and set up payroll deductions according to The Official Website of New York State .

What Is Secure Choice?

Secure Choice is a state-sponsored retirement savings program structured as an automatic-enrollment Roth IRA. Employees are enrolled automatically but can opt out at any time. Employers do not contribute funds or manage investments. Their role is purely administrative: facilitate payroll deductions and provide access.

Who Must Participate?

An employer will be covered under Secure Choice if it:

Has 10 or more employees in New York during the prior calendar year,
Has been in business for at least two years , and
Does not currently sponsor a qualified retirement plan (such as a 401(k), 403(b), SIMPLE IRA, or SEP).

Covered employers will be required to register, provide employee data, process payroll deductions, and communicate program details to their employees.

What Employers Should Do Now

Review whether the mandate applies to your business
Gather exemption documentation if you already sponsor a retirement plan
Prepare payroll systems for after-tax Roth IRA deductions
Organize employee data for submission
Educate employees about Secure Choice and their options

Understanding the Limitations of Secure Choice

Secure Choice ensures employees have access to retirement savings, but it’s a baseline solution with limits : no employer contributions, capped savings, and few investment choices. For many businesses, it may not fully support workforce goals.

A Better Path: Advisory-Driven Retirement Solutions

We’ve recently expanded our services at Simco to include dedicated retirement plan advisory support. Just as we guide employers through HR and benefits complexities, we now provide licensed investment advisory for business retirement plans.

That means you’ll have an expert partner to help you:

Evaluate whether Secure Choice applies to your business,
Compare it with private plan alternatives such as custom 401(k)s or 403(b)s,
Design a retirement plan strategy that aligns with your goals,
Ensure compliance while keeping costs efficient, and
Strengthen your ability to attract and retain top talent with competitive retirement benefits.

Whether you’re required to implement Secure Choice or you’re exploring better ways to support your employees’ financial futures, our advisory team is here to provide clear, unbiased guidance.

Take the Next Step

Don’t wait until the mandate goes live. With program enrollment expected in fall 2025 and a nine-month compliance window following, the time to act is now; whether Secure Choice is right for you or a privately designed retirement solution makes better sense.

To learn more about Secure Choice and explore retirement plan alternatives, current Simco clients may contact their designated Client Success Manager. Others are encouraged to reach out directly to Marc Simmons, Simco’s Retirement Services Specialist, at (585) 750-2818, or click here .

Understanding Credible Coverage, Affordable Coverage, and 2025 Marketplace Tax Credits

Mon, 04 Aug 2025 20:31:27 GMT

Navigating health insurance options can feel overwhelming, especially with all the terms and guidelines around coverage and affordability. At Simco, we want to help you and your employees make sense of it all, from understanding what qualifies as credible coverage to how affordable coverage is determined, and what the income limits mean for Marketplace tax credits in 2025.

What Is Credible Coverage?

Credible coverage refers to health insurance plans that meet or exceed the minimum standards set by government regulations. This is important because if you have credible coverage, you generally don’t qualify for premium tax credits through the health insurance Marketplace.

Examples of credible coverage include:

Employer-sponsored group health plans
Medicare and Medicaid
Certain veterans’ health plans
Individual health insurance plans that meet minimum essential coverage standards

Most employer-sponsored health plans, whether from small businesses or large corporations, are considered credible coverage. This means if you or your employees have health insurance through your job, it likely meets these standards, protecting you from paying unnecessary penalties and possibly disqualifying you from claiming Marketplace subsidies.

Why does credible coverage matter? Because if you already have credible coverage, you generally won’t qualify for premium tax credits on Marketplace plans. The government uses this benchmark to ensure people aren’t “double-dipping” by receiving subsidies when they already have adequate insurance.

What Does Affordable Coverage Mean?

Affordable coverage refers to the cost threshold for employer-provided health insurance that determines if it’s affordable relative to your household income. The IRS sets this threshold annually, and for 2025, the maximum employee-only premium cost to be considered affordable is 9.02% of your household income .

Here’s how it works: If the monthly premium you pay for employee-only coverage is less than 9.02% of your household income, your coverage is deemed affordable. If it costs more, you or your employees may be eligible for Marketplace subsidies or tax credits if you choose to enroll there instead.

This affordability standard helps employees understand if they have access to reasonably priced insurance through their employer or if Marketplace options might be a better fit financially.

Income Guidelines for 2025 Marketplace Tax Credits

To qualify for premium tax credits that help lower the cost of Marketplace health insurance, your household income must fall within certain federal poverty level (FPL) ranges.

For 2025, individuals and families with household incomes between 100% and 400% of the federal poverty level may be eligible for these credits. The exact dollar amounts vary depending on your household size and location, but generally, the lower your income within this range, the greater your potential tax credit.

These credits are designed to make health insurance more accessible and affordable for people who do not have credible or affordable coverage through an employer.

Why This Matters as the 2025 Annual Enrollment Period Approaches

With the 2025 Annual Enrollment Period (AEP) approaching soon (October 15 to December 7), it’s the perfect time to review your Medicare coverage and evaluate your options. Many people discover that their current plans may no longer be the best fit, or that marketplace options and tax credits could help bridge coverage gaps.

Simco is here to guide you and/or your employees through the complexities of health insurance during AEP and beyond. We’ll assess your situation, explain your options, and guide you through enrollment with confidence. Have questions? Contact us today! We’ve got you covered.

Simco Launches Investment Advisory Services Through Simco Financial

Sun, 03 Aug 2025 18:15:19 GMT

At Simco, we’re always looking for ways to bring more value to the businesses we serve. Now, we’re excited to announce a powerful new addition to our suite of advisory services: Simco Financial , our new investment advisory division focused on business retirement plans.

“This is a big step forward for us,” said Marc Simmons, founder and CEO of Simco. “Just like we’ve built strong advisory support around HR and benefits, we’re now doing the same for retirement. Simco Financial gives our clients direct access to licensed investment advisors, right from within the Simco ecosystem.”

Why We’re Expanding Into Investment Advisory

For many business owners, offering a retirement plan is a key part of attracting and retaining top talent. But navigating the complex world of 401(k)s, fiduciary responsibilities, and investment options can be overwhelming, especially when it’s not your day job.

“We believe the retirement plan is an incredibly important part of the life cycle of a business,” Simmons explained.

By bringing licensed investment advisors in-house, Simco can now deliver unbiased guidance on a range of retirement solutions, from custom 401(k) plans to products like the Simco PEP (Pooled Employer Plan). Whether clients are starting a new plan or reevaluating an existing one, they’ll now have a dedicated advisor to support them from strategy through implementation.

What This Means for Our Clients

“This advisory service is completely unbiased,” Simmons emphasized. “The PEP, which we often promote, is just one of the products we offer. Our team is here to advise on whatever platform or solution is truly best for your business.”

In other words: you’re not locked into a one-size-fits-all option. Simco Financial advisors work with your goals in mind and help ensure your retirement plan is compliant, cost-effective, and competitive.

What’s Next?

For now, Simco Financial is focused on group retirement plans for businesses . Individual investment services are on the horizon, but not yet available. “We’re starting with the group side,” said Simmons. “But stay tuned, there’s more to come.”

With this move, Simco is continuing to expand its value to clients as a true one-stop advisory partner . From HR and benefits to now retirement planning, businesses can get the support they need: simplified, centralized, and personalized.

Disclosures:

Simco Financial is a registered investment advisor and a division of Simco. Investment advisory services are offered through Simco Financial only to clients or prospective clients where Simco Financial and its representatives are properly licensed or exempt from licensure.

The information provided herein is for educational and informational purposes only.

Investment and Insurance Products Are:

Not Insured by the FDIC or Any Other Government Agency
Not a Deposit or Other Obligation of, or Guaranteed by, Any Bank or Bank Affiliate
Subject to Investment Risks, Including Possible Loss of Principal

Simco's Pooled Employer Plan (PEP) is offered through Simco HCM. Investment advisory services related to the PEP are provided by Simco Financial.

Insurance products are sold through Simco Capital, which is licensed in the state of New York.

5 Reasons Why It’s Time to Automate Open Enrollment with a Unified HCM Platform

Tue, 15 Jul 2025 16:33:08 GMT

Open enrollment season: the yearly juggling act of compliance, employee questions, and endless paperwork. If you’re still managing benefits with spreadsheets, emails, and disconnected systems, it’s time for a serious upgrade.

At Simco, we’ve seen firsthand how automating open enrollment through a unified Human Capital Management (HCM) platform makes life easier for HR teams and employees alike. Here are five reasons why your business should make the switch, and why your workforce will thank you.

1. Slash Errors and Save Time with Automation

Manual benefits administration? It’s a recipe for costly mistakes and wasted hours. A unified HCM platform syncs data instantly across HR, payroll, and insurance, cutting out double entries and compliance slip-ups. That means fewer headaches for your HR team and more accurate payroll deductions for you.

What you get:

Real-time updates when employees change status or eligibility
Automatic compliance checks
Less time answering repetitive benefits questions

2. Give Employees a Smooth, Self-Service Experience

Your employees live on their phones (whether it’s banking, booking appointments, or shopping). Benefits enrollment should be just as easy. With a single login, employees can compare plans, enroll, and update info anytime, anywhere. Bonus: AI-powered decision tools make choosing the right coverage simpler than ever.

Why it matters:

Boosts employee confidence, satisfaction, and engagement
Fits their busy schedules, not yours
Simplifies benefits communication and reduces HR support requests

3. Stay Compliant Without the Last-Minute Scramble

Open enrollment comes with a complex web of federal, state, and local regulations that must be followed precisely. From tracking Affordable Care Act (ACA) requirements to managing COBRA eligibility and distributing mandatory notices, the compliance checklist can quickly become overwhelming, especially when benefits data is scattered across spreadsheets, emails, and disconnected systems.

Without a centralized platform, HR teams often find themselves scrambling at the last minute to gather accurate information, complete audits, and submit reports, putting the organization at risk for costly penalties and damaging employee trust.

A comprehensive HCM system builds compliance into the process from the ground up. Eligibility rules, coverage limits, and regulatory requirements are automatically enforced and updated, minimizing human error and ensuring you stay ahead of deadlines and regulatory changes, reducing stress and protecting your business.

4. Stand Out in a Competitive Talent Market

Benefits remain one of the most powerful ways to demonstrate to your employees that they are valued. However, a confusing or frustrating enrollment process can quickly undo that goodwill, leading to disengagement and even turnover. In today’s competitive job market, providing a seamless benefits experience is no longer optional, it’s essential.

According to our HCM technology partner isolved’s 2025 Workforce Report:

50% of employees say they would seriously consider looking for a new job following a poor open enrollment experience.
90% of job seekers actively compare benefits packages before accepting a job offer, often prioritizing ease of access and clarity.

This means that a complicated or outdated enrollment process isn’t just an inconvenience, it’s a real risk to your ability to attract and retain top talent. Investing in a user-friendly, automated benefits platform helps position your company as a modern employer of choice, showing that you care about your employees’ experience every step of the way.

5. Free Up Valuable Time for Your HR Team

Open enrollment season often means an overwhelming amount of compliance tasks, employee questions, and administrative work, all on a tight deadline. When benefits management is manual or spread across multiple disconnected systems, it drains your HR team’s time and energy.

Automating open enrollment with a unified platform reduces the need for repetitive data entry and minimizes errors, which means fewer fire drills and less time spent fixing problems. This allows your HR professionals to shift their focus from paperwork to higher-value activities like employee engagement, strategic planning, and talent development.

In other words, the right technology doesn’t just streamline processes, it gives your HR team the bandwidth to do what really matters: support your people and help your organization thrive.

Ready to leave enrollment headaches behind?
Get in touch with us today to see how a unified HCM platform can transform your benefits process, making it easier, smarter, and more employee-friendly.

Your Guide to 4th of July Fun, Fireworks, and Celebrating Safely in Ontario County

Mon, 30 Jun 2025 14:43:22 GMT

The Fourth of July is almost here, and communities across Ontario County are gearing up for a weekend filled with parades, fireworks, and hometown celebrations. Whether you're heading out for live music and lawn games or simply enjoying time with friends and family, there are plenty of ways to celebrate locally.

At Simco, we’re proud to support our neighbors with practical tips to enjoy the holiday safely, while making sure your insurance coverage is up to date and ready for the unexpected.

Where to Watch Fireworks in Ontario County

JULY 3

Farmington – Fireworks at dusk with food trucks and live music starting at 6 PM (Farmington Town Park)
Honeoye Lake – The beloved “Ring of Fire” lights up the lake, with parking available at Sandy Bottom Park

JULY 4

Canandaigua – Lincoln Hill Farms hosts an all-day celebration (1–10 PM) with fireworks after dark, music, games, and more. ($30 parking, cash only)

JULY 5

Canandaigua North Shore – Keep the celebrations going with another round of fireworks at dark

JULY 11

Geneva – Free Summerfest fireworks at 9:45 PM at the Geneva Recreation Center

Parade Lineup

JULY 3

Honeoye – Parade at 7 PM from United Church to Sandy Bottom Park. Stick around for the Honeoye Community Band and the Ring of Fire afterward!

JULY 4

Canandaigua – The city’s annual 4th of July Parade kicks off at 10 AM from City Hall and heads south along Main Street

JULY 12

Geneva – Firefighters Parade begins at 7 PM on Exchange Street, ending at the Geneva Rec Center for SummerFest festivities

What Fireworks Are Legal in New York?

While fireworks are a staple of July 4th, not everything that sparks and explodes is legal in New York State. Using illegal fireworks can actually void your insurance coverage if something goes wrong.

What’s Allowed in NY:

Ground-based or handheld sparkling devices (like cylindrical fountains or cones)
Wooden sparklers/dipped sticks
Party poppers
Snappers (the small “pop” ones)

What’s Not Allowed (and Not Covered):

Aerial consumer fireworks
Firecrackers
Chasers
Roman candles
Skyrockets
Bombs (even small ones!)
Metal wire sparklers (they burn much hotter than they look)

Quick Tip:
If it launches into the sky or explodes, it’s not legal. Stick to sparklers and save yourself a potential insurance headache.

Insurance Tips for a Safe Holiday

A little awareness goes a long way in protecting your home, family, and peace of mind this 4th of July.

Stay within NY guidelines. If an incident is caused by illegal fireworks, your insurer may deny the claim.
Keep safety front and center. Supervise all activities involving sparklers or devices and keep water nearby for emergencies.
Know what your policy covers. Not every homeowner’s policy includes damage from fireworks-related accidents. If you’re unsure, reach out. We’re happy to review your coverage.
Report incidents quickly. Prompt reporting helps ensure claims are handled smoothly and effectively.

From All of Us at Simco

We’re wishing you a joyful, memorable, and safe Independence Day. Whether you’re lighting up the sky with sparklers or relaxing lakeside with family, we’re here to help you protect what matters most, before, during, and after the festivities.

Have questions about your insurance coverage this summer?
�� Call us at 585-394-5482 or visit our Contact Us page.

Understanding Accent Discrimination in the Workplace: How Employers Can Lead with Inclusion

Wed, 25 Jun 2025 20:48:11 GMT

As organizations continue to grow and diversify, the way we communicate at work is evolving, bringing new opportunities for inclusion as well as potential blind spots. One issue that often goes overlooked is accent discrimination: the tendency to judge, exclude, or undervalue individuals based on their speech patterns, dialect, or pronunciation.

While accents are often rooted in geography, heritage, or culture, bias toward or against certain ways of speaking can influence decisions in hiring, promotions, evaluations, and daily interactions. For employers, particularly those in small to mid-sized organizations, understanding where this shows up and how to respond isn’t just about creating a respectful workplace. It’s also essential for risk mitigation and legal compliance.

What Constitutes Accent Discrimination?

Accent discrimination occurs when employees or candidates are treated unfairly due to the way they speak. This type of treatment may stem from overt, conscious bias, such as assuming someone is less capable based on how they sound, or from more subtle, unconscious preferences, like favoring those who speak in what’s perceived as a “standard” or “neutral” accent.

Legally, accent-based discrimination can be considered a form of national origin discrimination, which is prohibited under Title VII of the Civil Rights Act. Many states reinforce these protections through their own civil rights laws. Employers should be aware that even unintentional practices, such as informal communication preferences or subjective feedback, can result in compliance issues or reputational damage.

Clear Communication vs. Discriminatory Practice

It is important to distinguish between legitimate communication needs and bias. In certain narrowly defined circumstances, an accent may be relevant to an employee’s ability to perform essential duties. For instance, in roles that require precise, real-time verbal communication, such as emergency response or high-risk operational jobs, an employer may need to assess whether a language barrier or speech pattern materially interferes with safety or accuracy.

However, such evaluations must be backed by objective evidence and a clearly defined business necessity. Vague discomfort, personal preference, or client feedback based on unfamiliarity are not valid reasons to deny someone an opportunity. Any decision related to an accent must be both job-related and supported by measurable performance impacts.

Standardize Hiring and Promotion Processes to Minimize Bias

One of the most effective ways to reduce the risk of discrimination is by formalizing your hiring and promotion practices. Employers should examine whether their processes allow room for bias (conscious or unconscious) to influence decisions. Subjective impressions, especially in interviews or internal evaluations, can be disproportionately shaped by how a person speaks.

To counteract this, companies should move toward structured, competency-based hiring frameworks. Use consistent criteria and scoring systems across all candidates, and rely on written assessments or role-specific tasks where appropriate. Similarly, promotions should be guided by documented performance metrics, not informal perceptions of professionalism or communication style.

In doing so, not only do you reduce the chance for bias to affect outcomes, but you also make better staffing decisions that reflect skills, qualifications, and organizational fit: not speech patterns.

Why This Matters More Now

In today’s hybrid and remote work environments, the ability to navigate diverse communication styles has become even more important. With teams collaborating across geographic regions and cultural backgrounds, inclusivity in communication is essential for morale, cohesion, and productivity.

Moreover, younger workers and job seekers are placing a high value on belonging and inclusion. Discriminatory or exclusionary behavior, intentional or not, can quickly erode trust and lead to disengagement or turnover, especially when tied to identity-based characteristics like accent or dialect. Employers who lead with fairness in communication are more likely to attract and retain talent, maintain strong teams, and avoid costly compliance missteps.

Building a Culture Where All Voices Are Valued

Ultimately, embracing different accents in the workplace is about genuine, judgment-free listening. Employers should encourage active listening practices, create space for respectful clarification when needed, and ensure employees feel safe speaking up, regardless of how they sound. Miscommunication is a solvable issue. Discrimination is not.

Leaders who prioritize clarity, fairness, and consistency, rather than conformity, build workplaces that are both inclusive and high-performing. And the benefits go beyond compliance. They create environments where people thrive because they are heard and valued.

Balancing Holiday Time Off Requests Without Slowing Down Your Business

Wed, 18 Jun 2025 18:35:41 GMT

With summer travel in full swing and Labor Day just around the corner, expect a surge in time-off requests, and for good reason. Employees need time to recharge, spend time with family, and enjoy the season. For employers, especially in small to mid-sized businesses, this means finding the delicate balance between fostering a supportive work culture that respects employees’ need for time away and managing the practical realities of maintaining adequate coverage, meeting deadlines, and keeping operations running smoothly.

The good news? With thoughtful planning, clear communication, and the right tools in place, you can navigate this busy season effectively, ensuring your team gets the rest they deserve without compromising business continuity.

Here are a few practical strategies to help you manage PTO during the summer months while keeping your business running smoothly:

1. Plan Early and Communicate Clearly

Encourage employees to submit holiday PTO requests well in advance. Set a clear internal deadline (e.g., “All holiday time-off requests must be submitted by August 15”) and explain the process upfront, including:

How requests will be reviewed and approved
How overlapping requests will be handled
Any blackout dates or essential coverage periods

A clear and consistent approach eliminates guesswork, reduces friction, and helps everyone feel they’re being treated fairly.

2. Use a PTO Policy That Balances Fairness and Flexibility

Your time-off policy should include guidelines for high-demand periods like Thanksgiving, Christmas, and New Year’s. Some companies use:

First-come, first-served approvals
A rotation system so everyone eventually gets prime time off
A seniority or department-based system with built-in equity checks

Whatever method you choose, consistency is key. A well-documented policy gives managers a framework to follow, and gives employees peace of mind that decisions are made justly, not arbitrarily.

3. Leverage Your HCM or Scheduling Technology

If you're using a system like isolved , you already have powerful tools to streamline the PTO process. Automate request tracking, visualize department coverage in real time, and flag conflicts early to avoid blind spots. This gives HR and team leads the visibility they need to make smart, timely decisions.

Bonus tip: Use system alerts to notify managers when coverage is thin, or configure it to close PTO windows automatically after a set date. These features take manual work off your plate while protecting productivity.

4. Cross-Train and Create Holiday Coverage Plans

Rather than scrambling when someone’s out, prepare your team to adapt. Cross-train employees in advance so they can cover essential tasks if a teammate is unavailable. Before the busy season kicks in, put together a simple holiday coverage plan that outlines:

Who will monitor essential tasks (client inquiries, payroll processing, etc.)
What needs to get done and by whom each week
Who’s available for backup support if needed

A little upfront planning makes a big difference in keeping service levels steady during staff absences.

5. Appreciate Those Who Step Up

Don’t let holiday contributions go unnoticed. Employees who work through the holidays or shift their schedules to ensure coverage deserve meaningful recognition. Consider:

Spot bonuses or incentives
Public recognition in a team meeting or internal email
Additional time off (comp time) after the holidays

Even small gestures show your team that their flexibility and dedication are valued, and that you see the extra effort.

6. Set Expectations With Clients (and With Your Team)

If your operations will run on limited hours or staffing during the holidays, notify clients and partners well in advance. Clear communication avoids surprises and sets realistic expectations. Internally, define what’s essential versus what can wait, especially to avoid employees overworking during slower periods.

When everyone understands what’s expected, your team can better prioritize, delegate, and breathe a little easier during the season.

Final Thought: Flexibility Builds Loyalty

The holiday season is a test of your workplace culture. How you support your team, especially when juggling competing needs, leaves a lasting impression. Even when saying no to a request, doing so with empathy and transparency reinforces a culture of trust, fairness, and respect.

And in return, you'll see greater engagement, improved morale, and a team that’s ready to go the extra mile — during the holidays and beyond.

Need help building better time-off workflows or updating your PTO policies before year-end?
Simco’s HR and HCM experts are here to help. Let’s talk about how to balance compliance, efficiency, and employee satisfaction, all year round.

How Employers Can Support Working Parents This Summer

Mon, 02 Jun 2025 14:58:22 GMT

When school lets out, many working parents face a new set of challenges: piecing together childcare, coordinating summer camps, adjusting work schedules, and simply trying to maintain a sense of balance. For employers, this season presents a valuable opportunity to demonstrate empathy and build stronger connections with your workforce—especially your working parents.

By offering the right policies, benefits, and workplace flexibility, your company can help parents manage the summer shuffle—while keeping productivity and morale strong. Here are a few impactful ways to make that happen.

1. Offer Flexible Scheduling Options

Summer schedules are rarely predictable, especially for parents with younger children or teens involved in day camps, sports, or part-time jobs. Allowing employees to shift their working hours or compress their workweeks can be a game-changer. Early start and end times, four-day workweeks, or staggered hours give parents the flexibility to handle family logistics without sacrificing their jobs.

What you can do:

Encourage managers to have open conversations with team members about their summer availability.
Promote cross-training so employees can support each other during flexible hours or time off.
Formalize a “Summer Flex Hours” program to show company-wide support.

This kind of trust-driven flexibility not only improves work-life balance but also boosts engagement and retention.

2. Revisit Your Remote or Hybrid Work Policy

For companies that support remote work, summer is an ideal time to offer extra flexibility. Parents may need to be closer to home for child supervision or to avoid time-consuming commutes during camp drop-offs and pickups.

Even one or two remote days per week can ease the mental load on parents—helping them stay focused and productive during working hours. And it signals a deeper commitment to employee wellbeing.

Ways to implement:

Offer a seasonal “summer remote work option” if your company is traditionally office-based.
Empower department heads to tailor remote work flexibility to their team’s needs.
Reinforce accountability and results-based performance to support this model.

Tip: Simco is happy to help you review your remote work policy for both compliance and employee satisfaction!

3. Promote and Educate on Dependent Care Benefits

Many organizations offer dependent care support, but employees often forget—or aren’t aware—of what’s available.

Summer is a perfect time to highlight programs like:

Dependent Care FSAs (tax-free childcare reimbursements)
Childcare subsidies or stipends
Backup care assistance
Employee Assistance Programs (EAPs) with parenting or caregiver resources

Tip: Create a simple “Summer Benefits Guide” or a quick email campaign highlighting available benefits. If your team uses a digital portal or app, make sure this information is easily accessible and up to date.

4. Plan Ahead for PTO and Team Coverage

Summer means vacations—and for working parents, this might be the only chance they get to spend extended time with their families. That’s why it’s crucial to encourage early vacation planning and transparent communication among teams.

Strategies to support summer PTO:

Ask employees to submit summer PTO requests as early as possible.
Use shared calendars and collaborative tools to coordinate team coverage.
Train back-up team members ahead of time to avoid last-minute stress.
Consider adding a floating summer holiday or mental health day to give employees a breather.

When employees feel supported in taking time off, they’re more likely to return refreshed and ready to re-engage.

5. Build a Family-Friendly Workplace Culture

Supporting working parents isn’t just about policies—it’s about creating a culture of empathy and understanding. That starts with leadership modeling flexibility, and continues with teams who respect boundaries and accommodate personal obligations.

Ideas to build culture:

Create a parent resource group or Slack channel to exchange ideas and support.
Share local summer camp or childcare resources in your company newsletter.
Avoid scheduling late afternoon meetings that may interfere with family commitments.
Celebrate family milestones or kid-friendly moments in a light-hearted way.

These small cultural cues can go a long way in helping working parents feel seen, supported, and valued—especially during a season that’s often more stressful than relaxing.

Final Thoughts

Supporting working parents through summer break isn’t just the right thing to do—it’s a smart business strategy. Offering flexibility, benefits education, and an understanding culture helps companies retain top talent, foster loyalty, and create a healthier workplace for all.

Need Guidance?

At Simco, we specialize in helping businesses implement people-first policies and scalable benefit solutions. If you’re looking to enhance your workplace support for parents (or all employees), our specialists are here to guide you!

Let’s talk about how we can help your workforce thrive—this summer and beyond.

The Leader’s Guide to Running Impactful Mid-Year Performance Reviews

Fri, 30 May 2025 22:12:46 GMT

Let’s be honest—mid-year reviews often don’t get the attention they deserve. They sneak up between vacations, project deadlines, and Q3 planning. But when done right, these check-ins can be one of the most valuable tools you have for keeping employees engaged, aligned, and growing. They’re not just about checking a box or filling out a form. Mid-year reviews are a chance to reconnect, recalibrate, and reenergize your team—and they can have a big impact on retention and performance.

So, how do you make these conversations count? Let’s break it down.

Why Mid-Year Reviews Actually Matter

Think of the mid-year review as a strategic pit stop. You’ve made it halfway through the year—now’s the time to assess what’s working, what needs adjusting, and where your people want to grow.

And here’s why that matters:

Companies that implement regular performance feedback see 14.9% lower turnover rates than those that don’t, according to Gallup
Employees who receive consistent feedback perform better and are more engaged overall, according to studies conducted by the Harvard Business Review
Employees are far more likely to stay when they know their growth is supported

The takeaway? People want feedback. But more importantly, they want useful feedback—along with the tools to take the next step forward.

What to Ask: High-Impact Questions

Performance reviews should feel like conversations, not interrogations. Open-ended, thoughtful questions help create space for honest dialogue. Below are a few ideas to keep the conversation flowing—and meaningful.

Goals & Achievements

What’s been your proudest accomplishment this year?
What challenges have you worked through—and what did you learn?
Are we on track with the goals we set earlier this year?

Strengths & Value

What are you most confident about in your role?
Where do you feel you're making the biggest impact?

Growth Opportunities

Are there any skills you’re itching to develop?
Where could we offer more support or resources?

Looking Ahead

Where do you see yourself a year from now?
What kind of training or experiences would help you get there?

This isn’t just about reviewing the past—it’s about setting the tone for the future.

Turning Feedback into Development: Exploring the Role of Learning Management Systems

Identifying growth opportunities during a performance review is just the first step—real transformation happens when you take action on that feedback.

One effective way to support employee development is by leveraging a Learning Management System (LMS) . An LMS provides a structured and scalable way to turn feedback into forward momentum—whether you're preparing someone for a promotion or helping them build confidence in new skills.

Key LMS features that support performance development include:

Personalized learning paths aligned with individual or team goals
Access to broad training libraries, including compliance and skill-building content
Tools to track progress and measure learning impact
Engaging elements like AI assistance, gamification, and peer learning

These tools transform performance feedback into growth, helping businesses create a continuous learning culture.

Look No Further

At Simco , we support our clients through every stage of the performance management journey — from crafting the right review questions to delivering personalized, scalable learning opportunities. Our integrated HCM technology includes the isolved Learn & Grow Module, which features:

89,000+ courses including SCORM and state-compliant training
Custom curriculums for individuals and teams
AI-driven search and chatbot support
Dashboards, reporting, gamification, and more

Final Thoughts: Mid-Year Reviews Are a Strategic Lever

Mid-year reviews are more than a checkpoint — they’re a chance to re-engage your team, show appreciation, and chart a clear path forward. When you treat them as an opportunity for dialogue, reflection, and action, the benefits ripple across retention, morale, and performance.

Want to make your next round of reviews truly impactful? Let’s talk about how Simco can help streamline your process and empower your people.

Burn Ban Lifted in New York: Here’s How to Stay Safe and Protected

Thu, 15 May 2025 15:16:14 GMT

Each spring, New York State enforces a residential burn ban from March 16 through May 14 to help prevent wildfires. As of yesterday, the ban has officially been lifted , but fire safety should remain top of mind.

While the Finger Lakes has seen steady rain this week, the risk of fire can still escalate quickly with a few dry, breezy days. If you’re planning to burn brush, enjoy a backyard fire pit, or take part in spring clean-up, it’s important to do so with caution.

Why Does the Burn Ban Exist?

The annual burn ban is in place to reduce the threat of wildfires during one of the most vulnerable times of the year. In early spring, before trees and vegetation fully green up, dead grass, leaves, and branches are dry and highly flammable. Combined with seasonal winds and low humidity, even small outdoor fires can spark large, fast-moving wildfires—especially in rural areas.

This proactive ban has proven to significantly lower the number of wildfires across the state each year, protecting homes, farmland, and natural habitats.

What Homeowners Should Do Now

With the ban lifted, it’s a good time to:

Review your homeowners insurance to ensure you're protected against fire-related damages.
Practice safe outdoor burning , such as keeping fires a safe distance from structures and never leaving them unattended.
Consider additional coverage for properties with wooded acreage or high-risk features.

At Simco , we’re here to help you navigate risks like these—before they become problems. Whether you need a policy review or simply want to make sure your coverage keeps pace with your lifestyle, we’re just a call or click away .

Making Mental Health a Workplace Priority

Thu, 01 May 2025 16:31:29 GMT

May is Mental Health Awareness Month , and it's a great time to reflect on the mental well-being of your team. As awareness about the importance of mental health continues to grow, many employers are seeking ways to support their employees. It’s crucial to recognize that mental health plays a significant role in an employee's overall performance, job satisfaction, and well-being.

In the U.S., 76% of workers report experiencing at least one symptom of a mental health condition, and 81% say they’ll seek workplaces that prioritize mental health, according to the World Health Organization (WHO). Despite these numbers, many workers are hesitant to discuss mental health struggles, particularly when it comes to the workplace. As employers, it’s important to foster an environment where employees feel supported and understood.

Here are some impactful ways to support mental health in your workplace, including a few creative strategies you may not have considered:

Encourage Regular Mental Health Breaks and Downtime

Everyone needs a moment to breathe, and it's important that employees feel they can step back when necessary to recharge. This might mean taking a short break or an afternoon off to reset mentally. Allowing employees to work at a more manageable pace when needed can help prevent burnout and chronic stress. When employees feel supported in prioritizing their mental health, they’re more likely to remain productive, engaged, and loyal over time.

You can also encourage employees to take "mental health breaks" throughout the workday. These breaks can be as simple as setting reminders for short pauses to breathe, stretch, or step outside for a brief walk. These moments help employees clear their minds, reduce stress, and return to work more focused. It’s important to create a culture where taking breaks isn’t only accepted but encouraged, especially during stressful periods. By prioritizing both scheduled downtime and spontaneous breaks, you’ll help your employees maintain their mental well-being, leading to a more balanced and productive work environment.

Offer Paid Time Off, Mental Health Benefits, and Flexible Schedules

Offering paid time off and mental health benefits is not just about reducing financial barriers for employees—it’s about making mental health care more accessible. In many cases, employees may delay seeking help simply because they can’t afford to lose work hours or pay. Flexible schedules can also enable employees to attend therapy or make time for other mental health treatments that help them stay well. When employees know they have access to these resources, they’re more likely to seek help proactively rather than suffering in silence. This not only aids in their overall well-being but can prevent bigger issues from arising down the road, benefiting both the employee and the business.

Provide an Employee Assistance Program (EAP)

An Employee Assistance Program (EAP) provides employees with confidential access to professional resources for a variety of personal and mental health challenges. The beauty of EAPs is that they offer employees expert help without the stigma of speaking out at work. Offering an EAP ensures that employees can reach out for assistance on issues like stress, anxiety, addiction, or personal relationships—without fear of judgment or consequences.

At Simco, we provide an EAP through our HR advisory component to businesses, giving employees a safe space to get the support they need, which ultimately leads to better employee engagement and a healthier workforce.

Make Reasonable Accommodations

When an employee requests accommodations for a mental health condition, it’s important to handle the situation with care and understanding. Engaging in an open and respectful conversation to explore how you can adjust the work environment, expectations, or hours shows empathy and commitment to their well-being. For example, an employee struggling with anxiety may request flexible hours to avoid rush hour, or someone with depression may benefit from a quieter, more isolated workspace. By providing reasonable accommodations, you not only comply with the law but also create an inclusive environment where everyone can thrive regardless of their mental health challenges.

Create Digital Spaces for Friendships to Grow

Loneliness, especially in remote or hybrid work environments, can exacerbate feelings of isolation and stress. While it’s easy to assume that working from home or in digital spaces means less connection, the opposite is often true. Employees can feel more isolated and disconnected than ever. One effective way to mitigate this is by creating virtual spaces dedicated to casual, non-work-related conversations. Encouraging employees to use virtual platforms for socializing or setting up fun, interactive events like digital coffee breaks or team trivia games can create a sense of camaraderie. In a remote setting, human connection doesn’t have to be lost—it can be enhanced by making it a priority through digital spaces.

Promote Good Mental (and Physical) Health

Supporting employees’ mental health means supporting their overall well-being. You can encourage mental health by promoting healthy habits such as mindfulness, yoga, or even simply taking a walk during breaks. These activities not only relieve stress but can also increase focus and energy levels. Employers can organize weekly wellness programs, invite yoga instructors, or even provide access to apps that promote mental well-being. When employees see that their workplace is invested in their physical and mental health, they’re more likely to reciprocate with increased engagement, satisfaction, and productivity.

Normalize Conversations About Mental Health

Creating a culture where employees feel safe to speak openly about mental health is crucial. It’s not just about providing resources; it’s about creating an environment where it’s okay to ask for help. Encourage managers and leaders to lead by example—when leaders are transparent about their own mental health or well-being, it opens the door for others to do the same. This can be achieved through regular conversations, check-ins, and creating a space where mental health is normalized as part of a healthy workplace culture. Reducing the stigma around mental health ensures that employees don’t fear discrimination or judgment when discussing their struggles.

Leverage Additional Resources

There’s a wealth of resources available to businesses and employees. The U.S. Substance Abuse and Mental Health Services Administration provides virtual recovery resources, while the U.S. Surgeon General’s framework for workplace mental health offers actionable guidelines to improve mental well-being in the workplace. Beyond government resources, partnering with mental health organizations or consulting with benefits brokers can help you enhance your offerings.

At Simco, we support businesses with expert advisory services to help design employee benefits packages that prioritize mental health support, ensuring that employees have access to the right care at the right time.

Support Remote Employees by Encouraging Time Outside the Home

Remote work can offer flexibility, but it can also lead to feelings of isolation, especially for employees who lack social interaction with coworkers and spend long hours in the same environment. One way to combat this is by encouraging employees to occasionally work outside of their homes, whether at a local café, co-working space, or a public library. Changing the scenery not only helps break up the monotony but also allows employees to interact with different environments, which can boost creativity and reduce feelings of isolation. Employers can even offer stipends or reimbursements for working in co-working spaces or coffee shops to help facilitate this.

It’s important to remind remote employees that stepping outside the confines of home can be a helpful way to recharge, meet new people, and foster a sense of connection with the world beyond their screens. This small change can make a significant difference in mental health, improving both mood and productivity.

Key Takeaways

Investing in mental health benefits doesn’t just support your team. It also enhances productivity and creates a positive, inclusive company culture. Taking steps to support mental health in the workplace shows your employees that they are valued and cared for, leading to a happier and healthier workforce.

When mental health is integrated into your workplace strategy—not as an afterthought, but as a core focus—you create the conditions for long-term success, fueled by healthier, more focused, and more fulfilled employees.

Internship Programs: Key Considerations for Employers

Wed, 23 Apr 2025 19:03:17 GMT

Hiring interns—especially during the summer—can offer tremendous value to both the student and the employer. It provides an opportunity for students to gain valuable work experience while helping businesses bring in fresh perspectives and support on key projects. However, in addition to designing meaningful experiences, organizations must also navigate important legal and practical considerations, particularly around compensation.

Should Interns Be Paid?

While some internships are unpaid, it’s widely recommended—especially by career services professionals—that students receive at least minimum wage. Interns often contribute significantly to workplace operations and may perform tasks similar to those of regular employees.

The Fair Labor Standards Act (FLSA) does not specifically define “intern” or provide a blanket exemption for them. That said, most HR and legal experts agree that, unless specific criteria are met, interns should typically be treated as employees and paid accordingly. There are exceptions, such as individuals volunteering for public sector or nonprofit organizations with no expectation of compensation.

The DOL’s “Primary Beneficiary” Test

To determine whether an intern must be paid, the Department of Labor (DOL) uses a flexible, seven-part test that assesses who primarily benefits from the arrangement—the employer or the intern. No single factor outweighs the others, but the overall context matters. For instance, if the intern is replacing paid staff or if the company directly benefits from their work, it may trigger employee classification.

Here are the factors:

Both parties understand there’s no expectation of pay.
The experience includes training similar to that found in an educational environment.
The internship aligns with formal academic programs or offers academic credit.
The internship schedule accommodates academic calendars.
The experience offers significant educational value over time.
The intern’s tasks complement, rather than displace, paid employees.
There’s no expectation of a paid job after the internship ends.

When in Doubt—Pay

If your organization stands to benefit more than the student, it’s safest to classify the intern as an employee. Doing so reduces risk and aligns with legal expectations at both federal and local levels. Remember: even if a program meets federal guidelines, stricter state laws may apply.

Wage Requirements for Interns in New York State

New York State’s Minimum Wage Act and Wage Orders contain specific rules for pay and overtime. These rules apply in addition to those required by federal law, including the Fair Labor Standards Act. Here are some important considerations for employers in New York State:

Paid Internships: Generally, interns must be paid at least the state minimum wage. However, unpaid internships may be acceptable if they meet specific criteria, such as being part of an educational program overseen by an accredited institution that awards academic credit.

Exemption from Minimum Wage: An intern may be exempt from minimum wage and overtime requirements if they meet specific criteria set by both the U.S. Department of Labor and the New York State Department of Labor. This includes criteria like the internship being similar to an educational program, benefiting the intern, not displacing regular employees, and having no expectation of a paid job after the internship ends.

Paid and Unpaid Internship Clarification: There is no prohibition on an intern receiving academic credit while also being paid, as long as the employer adheres to minimum wage and overtime laws. The training should provide significant educational value, not just be for the employer’s benefit.

Nonprofit Organizations and Interns: Not-for-profit organizations may have unpaid interns if they meet all criteria to not be considered in an employment relationship.

Compensation and Classification

Assuming your interns qualify as employees, they will almost always be classified as nonexempt under the FLSA, meaning they’re entitled to minimum wage and overtime pay. Rates should comply with whichever is highest: federal, state, or local minimum wage.

Intern pay often varies by education level and field. According to the National Association of Colleges and Employers (NACE) , the average hourly rate for bachelor’s-level interns has increased annually and is now $23.04 in 2025. High school interns are typically paid minimum wage.

Health Benefits for Interns

Some employers choose to offer benefits, even though it’s not always required. Larger employers subject to the Affordable Care Act (ACA) may need to provide health insurance to interns classified as seasonal workers, depending on hours and duration of employment. If you’re considering extending benefits, it’s important to consult with your broker and review your benefit plan documents to confirm intern eligibility.

Offering health benefits can enhance your organization's image among job seekers and college placement offices, but it also comes with administrative responsibilities—such as managing enrollment and COBRA communications.

Best Practices for a Successful Internship Program

Before the Internship Begins:

Create a clear intern policy outlining job duties, compensation, benefits (if any), and at-will employment status.
Assign supervisory roles and evaluation responsibilities to ensure guidance and support.
When applicable, obtain documentation from schools confirming the educational value of the internship.
Confirm whether your business or the educational institution has insurance that covers interns.

Once the Intern Is Onboarded:

Provide orientation that includes your company’s mission, policies, and workflows.
Clearly explain pay schedules and applicable benefits.
Review child labor laws if hiring minors. Be mindful of hour and duty restrictions for younger workers. Always check your state’s specific labor laws and requirements, such as work permits for minors.

Final Thoughts

Whether paid or unpaid, interns should be treated with the same care and oversight as regular employees. This includes timekeeping for pay accuracy, applying company policies uniformly, and ensuring workplace protections are in place. Interns may still have the right to file claims under federal or state law—even if unpaid—if workplace violations occur.

A well-planned internship program not only benefits the student’s development but can also provide your business with fresh perspectives and assistance on key projects. Being proactive and compliant helps create a successful experience for all involved.

How the Right Payroll Tech Simplifies W-2s and Tax Filing

Tue, 15 Apr 2025 15:12:09 GMT

It’s April 15—Tax Day in the U.S.—and if you’re a business owner or HR professional, chances are W-2s, filings, and compliance have been front and center for weeks (if not months).

But here’s the thing: tax season doesn’t have to be stressful. The right payroll and HCM technology can turn what’s traditionally a time-consuming, error-prone scramble into a streamlined, accurate, and surprisingly painless process.

From automatically balancing year-to-date totals to generating and distributing W-2s on time, a robust payroll system ensures nothing slips through the cracks. No more cross-checking data across platforms, no more last-minute tax filings, and no more anxiety about penalties or missed deadlines.

At Simco, we get it—because we help businesses simplify this process every single day.

The Challenges of Traditional Payroll Tax Management

If you're still managing payroll taxes manually—or using disconnected software systems—it’s all too easy to fall behind. Some common issues employers face include:

Human error : Tax calculations, forms, and deadlines are complex. A small mistake can lead to penalties or costly overpayments.

Time-consuming manual work : Without automation, payroll processing can involve endless imports, exports, and reconciling data across multiple platforms.

Compliance risk : With ever-changing tax laws at the federal, state, and local levels, staying compliant can become overwhelming without the right tools.

How the Right Technology Can Make Tax Season a Breeze

Today’s modern payroll and HCM systems are designed to simplify these challenges. Here’s how the right technology can help:

1. Automated Tax Filing and Payments: An integrated payroll system automates tax calculations, deductions, and filings. Forms like W-2s and W-3s are automatically generated, filed, and paid—without manual input. This reduces the risk of late filings, penalties, and missed deadlines, ensuring compliance with the IRS and state tax agencies.

2. Streamlined W-2 Management: W-2s can be a headache to manage—especially if you have complex tax scenarios like multi-state employment. With an automated system, W-2s are generated and distributed electronically, ensuring accuracy even in complex situations. Employees receive the correct form without you having to spend valuable time cross-checking or manually making corrections.

3. Self-Balancing Capabilities: A self-balancing payroll system ensures that your year-to-date totals and tax filings are accurate, eliminating the need for extensive manual reconciliation. By automatically matching figures in real-time, it streamlines year-end reporting, providing peace of mind when the filing deadline approaches.

4. Fewer Third-Party Imports and Exports: With everything integrated into a single platform, you won’t need to rely on third-party software or services for tax filing and reporting. This means fewer opportunities for errors, fewer manual imports and exports, and significant time saved during payroll processing.

5. Automated Adjustments and Updates: Tax laws and rates change frequently. With the right payroll system, you won’t have to worry about manually updating deductions or tax rates. The system automatically applies changes—whether it’s an update to federal tax rates or state-specific deductions—so your payroll is always up to date.

6. Expert Support When You Need It: Even with the best technology, tax season can present complex challenges. That’s why it’s important to have access to expert support. Whether you need help with multi-jurisdiction filings, audit preparation, or just have questions about tax return procedures, our team of HCM Specialists at Simco is here to provide guidance and ensure that you’re compliant every step of the way.

Why Choose Simco for Smarter Payroll and Tax Management?

As an isolved Network Partner, we offer a fully integrated payroll and tax management system that is built to handle the complexities of tax season—and beyond. We provide businesses with the tools they need to automate tax filings, ensure compliance, and streamline payroll processing. Here's how we do it:

All-in-One Payroll & Tax Platform : From payroll processing to tax deposits and W-2 filings, everything happens within one system, reducing manual work and the risk of errors.

Automatic Filing & Timely Accuracy : Federal, state, and local tax filings are completed automatically and on time, ensuring your employees receive only one accurate W-2 form—even in multi-state tax scenarios.

Error-Free Tax Reporting : Our self-balancing ledger helps reduce errors and simplifies reconciliation, making tax reporting easier and faster.

Expert Support : Whether it’s navigating multi-jurisdictional filings, preparing for an audit, or handling amendments, our team is always available to offer expert advice and assistance.

Cost-Effective Solutions : We offer top-tier tech at competitive pricing, often matching or beating our competitors (learn about the Simco Price Match Commitment here !), while providing the personalized service that large providers can’t.

Let’s Make Next Tax Season Easier, Starting Today

It’s never too early to think about next year. With our unified payroll/HCM solution at Simco, you can save time, reduce stress, and ensure compliance all year long. It’s time to upgrade your payroll system to one that works smarter, not harder.

Let’s chat and explore how we can help streamline your payroll and tax processes, so you can focus on growing your business with confidence.

SMART Goals: The Key to Crushing Your Business Objectives

Fri, 04 Apr 2025 17:47:49 GMT

New month, fresh start! But let’s be real—how many times have you set a goal, only to watch it fizzle out? Maybe it was too vague, too ambitious, or just got buried under the daily chaos. If you’re tired of spinning your wheels, it’s time to take a smarter approach—literally.

Enter SMART goals —your secret weapon for turning ideas into reality. Whether you’re looking to improve employee retention, streamline operations, or boost revenue, this framework ensures your goals don’t just sound good but actually get done .

The SMART Formula for Success

Specific – Get laser-focused.
A goal like “improve employee morale” is too broad. Instead, ask yourself: What does success look like? Are you reducing turnover? Increasing engagement scores? Define it.

Measurable – Numbers don’t lie.
How will you know if you’ve succeeded? Instead of saying, “increase engagement,” set a target: “Boost employee engagement scores by 5%.” Tracking progress keeps you accountable.

Achievable – Dream big, but stay realistic.
Sure, we’d all love zero employee turnover, but is it feasible? Probably not. However, reducing turnover by 15%? Now that’s a goal within reach.

Relevant – Align with the bigger picture.
Every goal should move your business forward. If your focus is employee retention, then prioritizing revenue growth over culture initiatives might not be the best move. Keep your goals aligned.

Time-Bound – Set the clock.
“Improve retention” is a nice thought, but without a deadline, it’s just wishful thinking. Instead, say, “Increase retention by 5% by the end of the year.” A firm timeline drives action.

Track It or Lose It

A goal without tracking is just a wish. You wouldn’t set out on a road trip without checking the map, so why leave your goals to chance? Regular progress check-ins—whether through weekly reports, monthly reviews, or real-time dashboards—help keep you on course. Tracking not only highlights wins but also flags roadblocks early, giving you the chance to pivot before it’s too late. And here’s the key: don’t just track for the sake of tracking—use the data to refine your approach.

For example, imagine you're aiming to improve employee engagement scores by 5% by the end of the year. After tracking progress for a few months, you notice that engagement is lagging in one department. Instead of waiting until the year-end review, you dig deeper. Perhaps it’s due to lack of recognition or unclear communication—adjustments are made, and suddenly, the department starts seeing improvement. Tracking allows you to course-correct in real-time, ensuring that you hit your target rather than missing the mark.

The most successful businesses aren’t the ones that never face setbacks—they’re the ones that track, adapt, and push forward.

How We Use SMART Goals to Stay Ahead

At Simco, we don’t just talk about SMART goals—we live by them. Our team follows the Entrepreneurial Operating System (EOS) , which helps us stay focused, aligned, and results-driven. A big part of EOS is setting Rocks —key priorities for the next 90 days.

And guess what? Every Rock follows the SMART framework:

Clearly defined objectives
Measurable success markers
Challenging yet attainable goals
Aligned with our company vision
Locked in with a firm 90-day deadline

This system keeps us accountable, making sure we’re always moving the needle in the right direction.

Your Turn: Take Action Today

No more “someday” goals— today is the day to take control. Whether you’re aiming to increase revenue, refine your processes, or boost employee satisfaction, the SMART approach ensures you’re not just busy—you’re making real progress.

Need help aligning your HR, payroll, or benefits strategy with your business goals? Simco is here to help . Let’s make this your most productive quarter yet!

The Do’s and Don’ts of Office Pranks

Tue, 01 Apr 2025 18:09:06 GMT

April Fools' Day is often the perfect opportunity for some lighthearted fun at the office. Whether it's a harmless prank, a funny email, or a playful desk setup, these moments of levity can help break up the monotony of the workday and bring smiles to your team. However, as many HR professionals know, it’s essential to strike a balance between fun and professionalism.

While the intention behind pranks is typically harmless, they can sometimes cross boundaries and lead to uncomfortable situations, or worse, legal risks. Recently, an example came to light where one employee thought it would be funny to place a suggestive image on a coworker's desk. The issue arose when another employee saw the image and was offended, leading to a formal complaint. This scenario highlights the importance of knowing where to draw the line between lighthearted fun and inappropriate behavior.

A Fine Line: When Fun Turns into Harassment

Even if a prank isn't directly targeted at the offended person, it can still create a hostile work environment, especially if it makes someone uncomfortable. As an employer, it's crucial to ensure that your workplace remains respectful and free from harassment. If a prank results in a complaint, it's essential to follow your company's policies to investigate and address the situation. Proper documentation of your investigation and the actions taken is vital to demonstrate that you've fulfilled your obligations as an employer and to protect the organization in case of any future disputes.

Setting Clear Expectations

To avoid similar issues in the future, it's a good idea to review and clarify your company's stance on pranks and personal conduct in the workplace. Setting expectations starts with having a clear written policy that outlines what is and isn’t acceptable behavior, especially regarding pranks. Consider creating a set of guidelines that all employees can refer to, and be sure these expectations are communicated effectively to everyone.

Here are a few tips to guide you:

Establish a Formal Policy: Clearly define the boundaries of acceptable humor in your workplace. The policy should cover both pranks and jokes, specifying that while fun is encouraged, it should not come at the expense of respect, inclusion, or professionalism.

Communicate Expectations Clearly: Include these guidelines in your employee handbooks or conduct policies, and ensure they’re reviewed during onboarding. Hold periodic team meetings to remind everyone about the importance of maintaining a respectful environment and reinforcing your stance on pranks.

Set the Tone from Leadership: Managers and leaders should set an example when it comes to humor in the workplace. They should demonstrate the type of jokes or pranks that are acceptable and ensure their actions align with company policy. Employees are more likely to follow suit when they see their leaders taking these matters seriously.

Encourage Open Communication: Foster a culture where employees feel comfortable speaking up if they feel a joke or prank crosses the line. Providing a safe outlet to discuss concerns without fear of retribution will help create an open, transparent environment where everyone feels heard.

Categories of Pranks and Jokes That Cross the Line

While there’s no one-size-fits-all approach, there are certain categories of pranks and jokes that should generally be off limits in the workplace . These pranks have the potential to cause harm, create discomfort, or violate company policies. By categorizing these behaviors, you can help employees better understand where to draw the line.

Sexual or Gender-Based Humor : Avoid pranks with suggestive content, gestures, or language that can create a hostile work environment or be considered harassment.

Discriminatory Jokes : Refrain from jokes targeting someone's race, religion, gender, sexual orientation, or other protected characteristics, as they can be harmful and illegal.

Invasive Pranks : Don’t tamper with personal belongings or invade others' personal space, as this undermines comfort and respect.

Work Disruptions : Pranks that interfere with productivity or damage equipment should be avoided, as they can hurt overall efficiency.

Aggressive or Harmful Pranks : Any prank that causes physical harm or emotional distress, including pranks involving physical touch or intimidation, is off-limits.

Creating a Culture of Respect and Fun

The key to managing pranks and other fun activities is to cultivate a workplace culture where employees feel comfortable, respected, and empowered. Rather than banning all pranks, focus on fostering a professional environment where employees understand the line between harmless fun and actions that could potentially harm or offend others. Encourage employees to engage in team-building activities and moments of levity that unite them in a positive and inclusive way, without crossing into territory that could lead to complaints or workplace tensions.

As April Fools' Day passes, it’s important to remember that while pranks can provide a bit of comic relief, they should never come at the expense of respect or professionalism. By setting clear boundaries, encouraging open communication, and ensuring all employees understand your policies, you can create a workplace where everyone feels comfortable—whether they're laughing at a harmless joke or focusing on their next big project. Have fun in the workplace—but always ensure that a good laugh never comes at the expense of respect or professionalism!

Embrace the Future of HCM: AI, Automation, and Scalability | Simco + isolved

Mon, 24 Mar 2025 15:37:05 GMT

The future of work is changing fast, and HR leaders are taking notice. More than half of companies are planning to switch their HCM platform this year—but not just for any solution. They’re looking for intelligent, scalable, and AI-driven technology that doesn’t just process payroll but actively enhances business operations. The days of rigid, outdated systems are over. Now, businesses need platforms that adapt, automate, and evolve alongside them.

At Simco, we’re passionate about delivering the most advanced, transformative solutions to our clients. That’s why we’ve partnered with isolved, a recognized leader in the HCM space, to provide our clients with a powerful, AI-enabled platform that makes workforce management effortless. With a focus on automation, predictive analytics, and employee experience, isolved is changing the game for small and mid-sized businesses—and we’re here to help you make the most of it.

Why isolved Stands Out in the HCM Market

For the second consecutive year, Nucleus Research has named isolved a leader in its HCM Value Matrix for Small and Medium-Sized Businesses (SMBs). The firm’s analysis highlights isolved’s enterprise-grade functionality, designed specifically for SMBs looking to streamline operations, enhance compliance, and leverage AI to drive efficiency.

isolved’s adaptability ensures it evolves alongside customer needs. Whether an organization’s HR function matures or its priorities shift, isolved is uniquely positioned to support its success through continuous innovation. In 2024, the company launched 480+ product enhancements directly driven by direct customer feedback.

Nucleus Research’s report also highlights several key updates, including:

isolved's Candidate Match Tool , an AI-powered feature that evaluates and ranks candidates, streamlining the hiring process.

Enhanced Talent Acquisition Services , including recruitment process outsourcing (RPO), job placement assistance, and comprehensive hiring solutions for quick-service restaurants (QSRs).

A Broadened Content Library, now with over 95,000 courses designed for employee training, compliance, and professional development.

A Next-Gen Time Clock , featuring advanced facial recognition and remote access for secure and accurate time tracking.

The Power of Partnership: Simco + isolved

While technology is the foundation, the real value comes from how it’s applied. At Simco, we don’t just provide software—we offer a full-service HCM and advisory solution, ensuring that all aspects of workforce management integrate seamlessly.

Our clients benefit from:

A Dedicated Client Success Manager – Your go-to resource who oversees your relationship with Simco, ensuring that every service—HCM, HR advisory, benefits, insurance, and retirement—works together without gaps.

A Fully Integrated HCM & Advisory Solution – No need to juggle multiple vendors for payroll, HR advisory, employee benefits, commercial insurance, and 401(k)/retirement plans. Simco is your one-stop shop for all workforce solutions.

Strategic Guidance & Ongoing Optimization – We help businesses maximize their investment in HCM technology while aligning it with compliance, employee engagement, and long-term growth goals.

As businesses evolve, so do their workforce management needs. By combining isolved’s leading-edge technology with Simco’s hands-on service and industry expertise, we help businesses stay ahead of change, improve efficiency, and create better employee experiences.

Ready to explore the future of HCM? Contact us today to learn more about how we can transform your workforce operations!

How to Protect Your Business from Phishing Attacks and Spoofed Domains

Mon, 03 Mar 2025 16:17:20 GMT

Cybercriminals continue to evolve their tactics, making phishing attacks more sophisticated and harder to detect. Every day, countless phishing emails reach inboxes, often with the intent to steal sensitive information or spread malware. Unfortunately, many of these attacks succeed in just a matter of seconds— the median time for users to fall for phishing emails is less than 60 seconds according to the 2024 Verizon Data Breach Investigations Report . With stolen credentials being one of the most popular methods of attack, businesses face increasing risks as these types of cyber threats become more complex and dangerous.

How Phishing and Spoofed Domains Work

Phishing attacks aim to trick employees into revealing sensitive information, often through:

Fraudulent Email Links – These emails appear to be from trusted sources but contain malicious links that install malware or steal login credentials.

Look-Alike Domains – Hackers create fake websites that resemble real business portals, altering a single character in the domain (e.g., “micr0soft.com” instead of “microsoft.com”).

Credential Theft – Once hackers obtain login credentials, they sell them on the dark web, leading to widespread data breaches.

Red Flags: How to Identify a Phishing Email

Unusual Sender Addresses – Cybercriminals often spoof email addresses to look like trusted sources. Carefully inspect the sender's domain name for typos, extra characters, or strange formatting. A genuine email from "paypal.com" could be faked as "paypall.com" or "paypal-support.com."

Urgent or Threatening Language – Many phishing emails attempt to create a sense of urgency, claiming that an account will be suspended, a payment has failed, or legal action is imminent. If an email pressures you into immediate action, be suspicious.

Unexpected Attachments or Links – Hover over hyperlinks before clicking to see the actual URL destination. If the web address looks unfamiliar or mismatched with the sender's identity, do not click. Similarly, attachments that appear out of context—especially ZIP files, PDFs, or Word documents—could contain malware.

Requests for Sensitive Information – Legitimate organizations will never ask for passwords, Social Security numbers, or banking details via email. If an email requests confidential information, verify with the company directly using a trusted phone number.

Generic Greetings or Poor Grammar – Emails that start with “Dear Customer” instead of your name, or those containing awkward phrasing and misspellings, often indicate phishing attempts. Many cybercriminals operate internationally and use machine translations, leading to unnatural wording.

Best Practices to Protect Your Business

Train Employees Regularly – Frequent security awareness training helps employees recognize phishing attempts. Past studies by Proofpoint show that companies with ongoing cybersecurity training reduce phishing-related breaches by up to 60%. Implement simulated phishing tests to reinforce learning.

Enable Multi-Factor Authentication (MFA) – MFA significantly decreases the chances of an account being compromised, even if login credentials are stolen. Microsoft reports that MFA can block over 99% of automated cyberattacks . Ensure all employees activate MFA for business accounts.

Verify Requests Independently – If an email asks for sensitive actions (e.g., wire transfers, login changes, or software downloads), confirm the request through a known and trusted contact method. Never use the phone number or link provided in the email —instead, visit the company's official website or call using a verified number.

Monitor and Filter Emails – Implement robust email security tools that automatically flag suspicious messages. Advanced filtering systems, like those offered by Barracuda Networks, can block over 90% of phishing emails before they reach inboxes.

Encourage a Report-First Culture – Employees should feel empowered to report suspicious emails even if they are unsure. IT teams can analyze these reports to strengthen cybersecurity measures. Early detection prevents widespread damage.

Use a Password Manager – Employees often reuse passwords across multiple accounts, increasing security risks. Encourage the use of password managers like 1Password or LastPass to generate and store complex passwords securely.

New Tactic: The Rise of QR Code Phishing ("Quishing")

QR code phishing, or "quishing," is a new phishing tactic gaining momentum as attackers exploit the widespread use of QR codes. Unlike traditional phishing, which relies on malicious email links, quishing uses QR codes to redirect users to fake websites designed to steal login credentials.

Several factors contribute to quishing's success:

Ubiquity : QR codes are now commonly used for payments, tickets, and documents, reducing suspicion when they appear in emails.

Minimal Text : Unlike traditional phishing emails, quishing messages often contain little text, making them harder for security systems to flag.

Mobile Vulnerability : QR codes are scanned on personal devices, which typically lack the protection of corporate systems.

According to Abnormal Security , 90% of quishing attacks involve credential phishing , where users are tricked into entering sensitive data. Another common tactic is using fraudulent MFA alerts, which account for 27% of attacks , while 21% involve fake document-signing requests .

Final Thoughts

At the end of the day, protecting your company from phishing and cyber threats requires more than just technology—it’s about the people behind it. By fostering a culture of awareness and encouraging open communication, you empower your employees to be the first line of defense. Together, with vigilance and the right tools in place, you can ensure the safety of your sensitive data and build a more secure future for your business.

7 Thoughtful Ways to Celebrate Employee Appreciation Day

Fri, 28 Feb 2025 19:12:42 GMT

Employee Appreciation Day, which falls on March 7th this year, is an ideal occasion to express gratitude for the hard work and dedication of your employees. At Simco, we recognize that employee appreciation shouldn’t be limited to just one day, but this day presents a special opportunity to go above and beyond in showing your team how much they mean to the success of your organization. When employees feel recognized and valued, it enhances morale, engagement, and ultimately, productivity.

Here are several thoughtful and impactful ways to celebrate Employee Appreciation Day, creating lasting positive effects for both your employees and your company.

1. Personalized Appreciation

Nothing shows employees you truly value them more than personalized recognition. Tailor your appreciation efforts to each individual, acknowledging their unique contributions and the impact they’ve made. Personalized gestures help employees feel recognized for the specific work they’ve done, making the appreciation feel authentic and meaningful.

You can:

Write Personalized Thank-You Notes : Take the time to write handwritten notes to your employees, thanking them for their specific achievements and how they contribute to the company’s overall success.

Publicly Acknowledge Contributions : During a company meeting or via a group email, recognize each team member's individual contributions, celebrating their efforts with concrete examples.

Employee Spotlights : Feature standout employees in your internal newsletter or on social media to highlight their unique strengths and hard work.

2. Host an Engaging Celebration

Employee Appreciation Day is an excellent time to host a celebration that brings everyone together, whether virtually or in person. A well-planned event can boost morale and provide a chance for employees to connect with one another outside of their usual work routines.

Ideas for celebration include:

Catered Meals or Special Treats : Provide lunch, snacks, or a special treat to make the day feel celebratory. A fun lunch or dessert bar can offer an opportunity for employees to mingle and bond.

Themed Events : Host a fun, themed event such as a retro office party or a “thank you” happy hour where employees can unwind and enjoy themselves.

Virtual Celebration : For remote or hybrid teams, set up a virtual event like a game or trivia session where employees can engage and laugh together.

3. Offer Tangible Tokens of Appreciation

While a simple thank-you is powerful, offering a meaningful gift can take employee appreciation to the next level. Thoughtful rewards can show your team that you not only recognize their hard work but are also willing to invest in their well-being.

Consider:

Gift Cards : Offer gift cards to popular retailers, restaurants, or online stores, allowing employees to pick out something they personally enjoy.

Wellness Incentives : Gifts that promote health and wellness—such as fitness trackers, yoga classes, or access to mental health resources—show employees you care about their overall well-being.

Company Merchandise : High-quality, branded merchandise like apparel, accessories, or tech gadgets can serve as a lasting reminder of your appreciation.

4. Invest in Professional Development

One of the most meaningful ways to honor your employees is by helping them grow professionally. Employee Appreciation Day is a great time to invest in their future, whether through formal training, new opportunities, or fostering leadership skills.

Ways to offer growth opportunities include:

Learning Stipends : Offer financial support for employees to pursue further education, certifications, or online courses that align with their career goals.

Internal Development Programs : Launch mentorship initiatives or leadership programs that enable employees to expand their skill sets within the organization.

Growth Opportunities : Encourage employees to explore new roles or responsibilities that align with their career aspirations, reinforcing your commitment to their long-term success.

5. Encourage Peer Recognition

Employee appreciation doesn’t have to be a one-way street from management to employees. Encouraging peer-to-peer recognition helps build a strong team culture, where employees feel supported and valued by their colleagues as well. This helps foster camaraderie and teamwork, which benefits the entire organization.

Ideas for peer recognition:

Peer-to-Peer Appreciation Platforms : Create an internal platform where employees can nominate or thank their colleagues for their contributions, highlighting specific ways they've gone above and beyond.

Recognition Wall : Set up a virtual or physical wall where employees can post messages of appreciation for their peers, encouraging a culture of gratitude.

Monthly Recognition : Implement a peer-nominated “Employee of the Month” program to recognize and reward employees for their ongoing contributions.

6. Give Back

Employee Appreciation Day also provides an opportunity to show gratitude by giving back to the community. Many employees value working for companies that have a strong sense of corporate social responsibility. By organizing a charitable event or initiative, you demonstrate that your organization cares about making a positive difference beyond the workplace.

Ideas for giving back include:

Company Volunteer Days : Organize a day of service where employees can volunteer at a local charity or nonprofit, allowing them to contribute to causes they care about while bonding with their colleagues.

Matching Donations : Offer to match employee donations to their favorite charities, demonstrating that you support their personal values and causes.

Charitable Fundraising Events : Host fundraising activities or auctions with proceeds going to a charitable organization chosen by the team.

7. Seek Feedback

Finally, a key part of showing appreciation is listening to your employees and gathering feedback on how they feel valued. Employee Appreciation Day offers the perfect occasion to ask for input on what makes them feel appreciated and what could be improved. This helps ensure that future efforts are even more meaningful.

Ways to gather feedback:

Anonymous Surveys : Send out a survey asking employees what makes them feel most appreciated and if they have any suggestions for improving recognition practices.

One-on-One Check-ins : Arrange individual meetings with employees to hear their thoughts on workplace culture and recognition, providing an opportunity for honest feedback.

Cultivating a Culture of Appreciation Year-Round

Employee Appreciation Day is a special occasion, but the benefits of recognizing your team should last well beyond this single day. When employees feel consistently valued and appreciated, it leads to higher morale, greater job satisfaction, and increased engagement. By investing in recognition efforts, offering meaningful rewards, and fostering a culture of appreciation, you ensure that your team remains motivated, happy, and productive all year long.

At Simco, we believe that lifting and supporting employees is integral to creating a thriving workplace. Whether you celebrate Employee Appreciation Day with gifts, events, or personalized recognition, taking the time to show gratitude is a small gesture that can have a lasting impact on both your employees and your business.

Navigating Cannabis Employment Laws

Mon, 24 Feb 2025 00:49:15 GMT

As medical and recreational cannabis laws continue to evolve, employers in the Northeast face unique challenges when developing workplace policies. Understanding state-specific regulations is crucial to ensuring compliance while maintaining a safe and productive work environment.

This guide provides an overview of cannabis-related employment laws in key Northeastern states, offering clarity on what employers can and cannot do regarding hiring, discipline, and drug testing. Since state laws change frequently, employers should consult legal professionals and insurance carriers for the most up-to-date guidance.

Key Considerations for Employers

Employers must balance workplace safety with employees’ rights, particularly as state laws differ significantly. While federal regulations such as the Drug-Free Workplace Act and Department of Transportation (DOT) rules still apply, employers should also consider:

State disability discrimination laws – Some states require reasonable accommodations for medical cannabis use.
Lawful off-duty conduct laws – In certain states, employees cannot be disciplined for legally using cannabis outside of work.
Religious accommodations – Employers may need to accommodate cannabis use for religious purposes.
Wrongful termination claims – Firing an employee solely for cannabis use may violate public policy in some jurisdictions.
State drug testing laws – Some states impose restrictions on when and how employers can test for cannabis.

Employers may maintain drug-free workplace policies but should ensure they comply with state-specific requirements, particularly when disciplining employees or making hiring decisions.

State-Specific Employer Guidance

Below is a breakdown of cannabis-related employment laws in key Northeastern states.

Connecticut

With some exceptions, employers:
Cannot refuse to hire an applicant for using cannabis outside of work unless they would violate a federal contract or lose federal funding by hiring them.
Cannot discipline or discharge employees for using cannabis outside of work unless they have a written policy that is provided to employees prior to its effective date, and to applicants when they are offered a job.
Cannot discipline or discharge employees or applicants for testing positive for the main inactive metabolite of cannabis.
Can prohibit employees from working under the influence of cannabis.
Can discipline and discharge employees if they have a reasonable suspicion that they used cannabis at or during work or on call.
Can discipline and discharge employees who show specific, articulable symptoms of impairment while working or on call that negatively affect their job performance.

Employers may not discriminate against or discipline an applicant or employee based solely on their status as a medical cannabis patient, except when:
It would violate a federal law; or
The employer would lose federal funding.
Note: A court has held that a federal contractor’s required compliance with the Drug-Free Workplace Act did not qualify for either exception.

A court has held that a registered patient’s protected status includes using medical cannabis off duty.
Employers cannot prohibit employees who are qualifying palliative medical cannabis patients from possessing cannabis at work.
The medical cannabis law states that employers may prohibit employees from using cannabis during work and from working under the influence of cannabis.

Delaware

Employers may not discriminate against or discipline an applicant or employee based solely on their status as a medical cannabis patient.
Employers may not discipline or discharge applicants or employees based on a positive drug test unless they use, have, or are impaired by cannabis at work or during work.
The recreational cannabis law states that it doesn’t restrict employer rights with respect to setting and enforcing terms and conditions of employment (for example, accommodations, policies, or discipline) and that employers can prohibit the possession, use, and distribution of cannabis on their property.
Exceptions to employment protections under the medical cannabis law exist when the employer would:
Lose federal money; or
Lose a federal license.

District of Columbia

Employers may have drug policies prohibiting cannabis.
The recreational cannabis law states that employers are not required to accommodate cannabis use at work.
Protections have passed for medical cannabis use, but the effective date is still pending.
Employers may not test applicants for cannabis until after extending a conditional offer of employment, unless otherwise required by law.

Maine

Employers may prohibit employees from using recreational marijuana at or during work.
Employers may discipline employees for working under the influence of recreational marijuana.
The law previously specifically prohibited employers from disciplining employees for off-duty use, which the Maine Department of Labor interpreted to mean that employers cannot discipline an employee or disqualify an applicant based solely on a positive marijuana test.
Employers may not discriminate against or discipline an applicant or employee based solely on their status as a medical cannabis patient, except when the employer:
Would lose federal money; or
Would lose a federal license.
The medical cannabis law states that it does not require employers to allow employees to use cannabis at work or to work while under the influence of cannabis.

Maryland

The medical cannabis law does not address employers’ or employees’ rights or obligations specifically. However, the law states that medical cannabis patients cannot be penalized, disciplined, or denied any right or privilege for using or possessing medical cannabis in compliance with the law.
The recreational cannabis law does not address employers’ or employees’ rights or obligations.

Massachusetts

The recreational cannabis law states that it does not prevent employers from enforcing their drug policies restricting employees’ consumption of cannabis.
The cannabis laws state that employers are not required to accommodate medical or recreational use at work.
Employers are required to engage in the interactive process under state disability discrimination law regarding potential accommodations for off-duty medical use.

New Hampshire

The medical cannabis law states that it allows employers to prohibit employees from using cannabis at work or during work, and from working under the influence of cannabis.
Using medical cannabis off duty can be a reasonable accommodation under the state’s disability discrimination law.

New Jersey

Employers are prohibited from:
Requesting criminal cannabis history;
Making employment decisions based solely on an applicant’s or employee’s criminal cannabis history;
Discriminating against an employee or applicant because they use cannabis outside of work; or
Disciplining an employee solely for testing positive for THC.
Drug testing for cannabis/THC must include a physical evaluation to determine if the employee is currently impaired. The physical evaluation must be done by someone with a Workplace Requirement Recognition Expert (WIRE) certification.
Employers may not discriminate against an applicant or employee based solely on their status as a medical cannabis cardholder.
If an applicant or employee tests positive for THC, the employer must provide them with written notice of their right to present a legitimate medical explanation for the positive test result or request a retest of the original sample at the applicant’s or employee’s own expense. The applicant or employee then has three working days to provide their healthcare practitioner’s authorization for medical cannabis or a registry identification card.
Exceptions to these employment protections for medical cannabis are:
If the employee uses or has cannabis during work;
If the employer would violate federal law; or
If the employer would lose a federal license, a federal contract, or federal funding.
The medical cannabis law states that it allows employers to prohibit employees from using cannabis at or during work.
Employees can sue employers under the state disability discrimination law for failing to accommodate off-duty medical cannabis use.

New York

Employers may not discriminate against or discipline an applicant or employee based on their lawful off-duty consumption or use of cannabis off the employer’s premises.
Exceptions to these employment protections exist where:
The employer’s action is required by federal or state law or federal or state governmental mandate;
The employee is impaired by cannabis during work (see below); or
The employer would violate a federal law or lose federal funding or a federal contract.
An employee is impaired by cannabis at work if they have “specific articulable symptoms” that either negatively affect their job performance or interfere with the employer’s ability to provide a safe workplace.
The medical cannabis law states that it allows employers to prohibit on-duty impairment.
State disability discrimination protections apply to certified medical cannabis patients.
Exceptions to the medical cannabis employment protections exist when the employer would:
Violate federal law;
Lose a federal contract; or
Lose federal funding.

Pennsylvania

The medical cannabis law prohibits employers from discharging, threatening, refusing to hire, or otherwise discriminating or retaliating against an employee solely based on their status as a medical cannabis patient.
The medical cannabis law states that it does not:
Require employers to allow employees to use medical cannabis at work.
Prohibit employers from disciplining an employee for being under the influence of medical cannabis at or during work when the employee’s conduct falls below the standard of care normally accepted for that position.
Require employers to violate federal law.
The medical cannabis law states that it allows employers to prohibit employees from performing any duty that could result in a public health or safety risk while under the influence of cannabis.

Rhode Island

Employers may not discriminate against or discipline an applicant or employee based solely on their status as a medical cannabis cardholder, with the following exceptions:
The employee uses or has cannabis at work;
The employee is under the influence of cannabis at work;
The employee works under the influence of cannabis when doing so would be considered negligence or professional malpractice, or would jeopardize workplace safety;
The employee operates or physically controls a motor vehicle, equipment, or firearms while under the influence of cannabis;
The employee violates terms of a collective bargaining agreement;
The employer would lose federal funding; or
The employer would lose a federal licensing-related benefit.
The medical cannabis law states that it does not require employers to accommodate employees using medical cannabis at work.
Employers are prohibited from disciplining or discharging an employee for lawfully using cannabis off duty unless one of the following exceptions applies:
The employee works while under the influence of cannabis;
The employee is subject to a collective bargaining agreement that prohibits lawful, off-duty cannabis use;
The employer is a federal contractor and failing to discipline or fire the employee would cause the employer to lose a monetary or licensing-related benefit;
The employer is subject to a federal law or regulation, and failing to discipline or fire the employee would cause the employer to lose a monetary or licensing-related benefit; or
The employee’s job is hazardous, dangerous, or essential to public welfare or safety and the employer’s policy prohibits them from using cannabis for 24 hours before their scheduled shift (e.g., first responders, jobs that involve operating heavy equipment or machinery or commercial vehicles).

Vermont

The recreational cannabis law states that it does not:
Require an employer to allow employees to use or have cannabis at work;
Prevent an employer from having a policy that prohibits the use of cannabis at work;
Create a reason an employee can sue an employer; or
Prevent an employer from prohibiting or regulating cannabis at work.
The medical cannabis law does not address employers’ rights or obligations.

Navigating cannabis laws can be complex, but staying informed about your state's regulations is crucial. Employers in the should continually review their policies and seek legal counsel to ensure compliance, reduce liability, and maintain a safe work environment for all employees.

If you have any questions, contact us ! Simco is here to support your business.

New York Employers Must Update Employee Handbooks for Reproductive Health Rights

Mon, 03 Feb 2025 17:05:13 GMT

Overview of the New Ruling

New York employers are once again required to provide a notice in their employee handbooks about reproductive health rights following a recent ruling from the U.S. Court of Appeals for the Second Circuit. The ruling vacated a previous permanent injunction that had blocked the enforcement of the law, meaning employers must now comply with the New York Reproductive Health Bias Law (Labor Law § 203-e).

Reproductive Health Bias Law Requirements

The Reproductive Health Bias Law was enacted in November 2019 to ensure employees and their dependents can make reproductive health decisions without facing discrimination in the workplace. The law prohibits employers from taking retaliatory actions against employees regarding their reproductive health decisions and requires employers to keep employees' reproductive health information confidential unless there is prior written consent.

Under the law, employers must include a notice in their employee handbooks informing employees of their rights and remedies under the Act. This is an essential update that must be made to comply with the law.

Impact of the Second Circuit Ruling

Religious organizations had challenged the law, arguing that the notice requirement violated their First Amendment rights. However, the Second Circuit disagreed, ruling that the notice requirement was lawful and similar to other workplace disclosure laws. The court noted that while the policy motivating the law may be controversial, the law itself and the obligation for employers to comply are not in question.

Action Required for Employers

Even though there is no specific penalty for failing to comply with the notice requirement, employers are encouraged to review and update their employee handbooks in light of the court's ruling to ensure they are compliant with the law.

For Simco Clients:

For clients who utilize Simco’s employee handbook services, rest assured this requirement is already included, and no additional steps are needed.

Pre-Employment Drug Testing: What Job Seekers Need to Know

Sat, 01 Feb 2025 16:11:18 GMT

Pre-employment drug testing is a hiring practice that has sparked debate in recent years. While some industries rely on it for safety and compliance, others are rethinking its necessity—especially as marijuana laws evolve. If you're actively job searching, knowing what to expect can help you prepare, avoid surprises, and understand your rights.

Who Still Requires Drug Testing?

Not all industries conduct pre-employment drug testing, but for certain roles, it's still a non-negotiable requirement. Some of the most common sectors where testing remains standard include:

Transportation & Public Safety – Truck drivers, pilots, transit operators, and law enforcement
Healthcare & Childcare – Nurses, physicians, pharmacists, and daycare providers
Government & Military Contracts – Federal employees, military personnel, and defense contractors
Manufacturing & Construction – Heavy equipment operators and industrial workers handling hazardous materials

However, policies vary widely even within these industries. Some companies are now loosening restrictions for non-safety-sensitive positions, recognizing that outdated drug testing policies may limit their talent pool.

What Substances Are Typically Screened?

Most pre-employment drug tests screen for common illicit substances, but the depth of testing can vary. Standard screenings include:

Five-Panel Test – Detects marijuana, cocaine, amphetamines, opiates, and PCP
Expanded Panel Tests – Can include benzodiazepines, barbiturates, synthetic opioids, and even alcohol

Employers may use different types of tests, including urine, saliva, blood, or hair follicle analysis. Hair follicle testing, for example, can detect drug use from months prior—something applicants should be mindful of.

The Evolving Landscape of Marijuana Testing

One of the most significant changes in pre-employment drug testing involves marijuana. With over half of U.S. states legalizing marijuana in some form, companies are reevaluating their stance.

Some states prohibit employers from disqualifying candidates for off-duty marijuana use.
Other states still allow testing but require employers to prove impairment, not just presence.
Federally regulated positions, such as those in transportation, maintain strict no-tolerance policies.

This shift means that while some applicants may no longer face automatic disqualification for marijuana use, it’s still important to know an employer’s policy before assuming it won’t impact hiring decisions.

What Happens If You Fail a Pre-Employment Drug Test?

The consequences of failing a drug test depend on multiple factors, including company policy, industry regulations, and state laws.

In regulated industries (e.g., transportation, healthcare, federal employment), a failed test almost always results in immediate disqualification.
Some employers allow re-testing or a waiting period before reapplying, particularly for marijuana use in certain states.
If you have a valid prescription for a tested substance (e.g., opioids or ADHD medication), you may need to provide documentation to avoid disqualification.

Additionally, some companies offer assistance programs or second-chance policies, especially if an applicant is upfront about past use or addiction recovery.

Do Employers Really Benefit from Drug Testing?

With the workforce evolving, many companies are questioning whether traditional drug testing policies still serve their intended purpose. Some argue that testing reduces liability, improves workplace safety, and ensures reliable employees. However, others believe that outdated policies exclude qualified candidates, especially in a competitive job market.

The Arguments for Drug Testing:

Reduces workplace accidents in safety-sensitive roles
Ensures compliance with federal and industry regulations
Discourages drug use in high-responsibility positions

The Arguments Against Drug Testing:

May eliminate qualified candidates for non-safety-sensitive roles
Does not account for impairment vs. past use (especially with marijuana)
Can be costly and time-consuming for employers

Companies that still require drug testing must weigh these factors and ensure their policies align with modern workforce expectations.

The Future of Pre-Employment Drug Testing

The debate over drug testing isn’t going away anytime soon. As laws and attitudes continue shifting, companies may move toward impairment-based testing rather than zero-tolerance screening. This means job seekers should stay informed, especially in industries where testing is likely to remain a requirement.

For now, the best approach is to understand employer expectations, know your legal protections, and be prepared for potential screenings as part of the hiring process.

OSHA Form 300A Requirements: Key Deadlines for Employers

Thu, 30 Jan 2025 16:43:05 GMT

Workplace Posting for Form 300A Begins February 1

Employers with 11 or more employees at any point in 2024 must display the Occupational Safety and Health Administration (OSHA) Form 300A, Summary of Work-Related Injuries and Illnesses, from February 1 to April 30. Even if no recordable incidents occurred in 2024, this posting is mandatory. The form must be certified by a company executive and displayed prominently in each workplace where employee notices are typically posted.

Certain businesses are exempt from OSHA’s regular recordkeeping requirements, including this posting, if they employ 10 or fewer people or if their primary business activity is considered low hazard according to OSHA's guidelines. A full list of low-hazard industries, categorized by NAICS codes, is available here . However, even exempt companies must report fatalities or incidents resulting in hospitalization, amputation, or loss of an eye.

Electronic Submission of Form 300A Due by March 2

Businesses with 250 or more employees from the previous year, or those with 20-249 employees in high-risk industries, must submit their Form 300A data electronically through OSHA's Injury Tracking Application (ITA) by March 2, 2025. This requirement applies based on the number of employees at a specific location, not the entire company. Employers under State Plans are also required to submit electronically.

Exemptions from this electronic submission apply to employers who:

Are exempt from OSHA's regular recordkeeping rules.
Had fewer than 20 employees in the past year.
Had between 20 and 249 employees but aren’t in the designated high-risk industries.

Additional resources, FAQs, and access to the ITA are available on OSHA’s ITA page .

Submission of Forms 300 and 301 Required by March 2

Employers in high-hazard industries with 100 or more employees are required to submit data from both their Form 300 (Log of Work-Related Injuries and Illnesses) and Form 301 (Injury and Illness Incident Report) through the ITA, in addition to their Form 300A submission.

Help with Coverage Determination

Employers can use OSHA’s ITA Coverage Application to assess whether they need to submit injury and illness data electronically or refer to the State Plan for specific reporting requirements.

Top 5 HR Trends That Will Shape Businesses in 2025

Tue, 07 Jan 2025 23:46:02 GMT

As 2025 kicks off, the HR landscape is evolving faster than ever before. Technology, shifting workforce expectations, and the need for businesses to be agile in a dynamic global environment are all driving change. What worked yesterday may not be enough today, and companies must adapt to stay ahead. Here are the top five HR trends you’ll need to watch closely in 2025:

1. AI is Changing the Hiring Game

Artificial intelligence is no longer just a buzzword in HR—it’s a game-changer. Tools that can scan resumes, match candidates to roles, and even conduct initial assessments are becoming staples for businesses aiming to save time and improve hiring outcomes. In 2024, many organizations began integrating AI to remove unconscious bias and make their hiring practices more inclusive, and this trend is expected to accelerate.

2. Flexibility Isn’t Just a Perk Anymore

Hybrid and remote work models are here to stay, but the conversation has shifted. In 2025, it’s less about offering flexibility and more about making it work effectively. Companies are adopting sophisticated tools for remote collaboration, redefining performance metrics, and ensuring policies address the nuances of managing both in-office and remote teams. The focus is on maintaining productivity without compromising employee well-being.

3. Wellness Goes Beyond Gym Memberships

In recent years, wellness programs have evolved beyond basic offerings like gym memberships to address a wider range of employee needs. As companies recognize the link between employee well-being and productivity, they’re broadening their focus to include mental health, financial stability, and holistic support. In 2023 and 2024, for example, Delta expanded its employee wellness initiatives by improving access to mental health care. The airline worked with Spring Health, a new EAP provider, to create a larger and more diverse network of mental health professionals, offering better support for both employees and their household members.

Looking ahead to 2025, wellness will become more deeply integrated into company cultures. Expect companies to go beyond providing reactive support to fostering proactive wellness through personalized tools, such as mental health apps, financial coaching, and enhanced benefits like paid leave for caregiving. With these programs, businesses are not just addressing immediate health concerns but also empowering employees to manage their overall well-being in a more holistic way. The focus will be on creating a supportive, sustainable work environment that helps employees thrive both at work and in their personal lives.

4. Upskilling is a Competitive Necessity

Technology is evolving faster than ever, and companies are racing to keep up. Upskilling employees in areas like data analysis, AI, and emerging tech became a priority in 2024, and it’s clear that this trend will only grow. Businesses that invest in continuous learning programs—whether through certifications, on-the-job training, or digital learning platforms—are better positioned to stay ahead in their industries.

5. Data is Driving HR Decisions

HR is leaning heavily on people analytics to guide decision-making. Instead of relying on intuition, businesses are using data to understand employee engagement, pinpoint reasons for turnover, and improve productivity. The emphasis on metrics like employee sentiment and workforce utilization gained traction last year, and more organizations are embedding analytics into their HR strategies to tackle challenges proactively.

Final Thoughts

The HR landscape in 2025 will be shaped by these transformative trends. Businesses that embrace innovation and prioritize their people will find themselves not just adapting but thriving in the evolving workplace. As these trends unfold, staying proactive and flexible will be the key to turning challenges into opportunities.

IRS Announces 2025 PCORI Fee Update

Mon, 06 Jan 2025 02:47:37 GMT

The IRS has released the 2025 Patient-Centered Outcomes Research Institute (PCORI) fee , which will increase to $3.47 per covered life —a $0.25 increase from 2024. This fee applies to plan years ending on or after October 1, 2024 , and before October 1, 2025 .

What is the PCORI Fee?

The PCORI fee was introduced as part of the Affordable Care Act (ACA) to help fund the research conducted by the Patient-Centered Outcomes Research Institute (PCORI). This research focuses on improving healthcare outcomes by comparing different medical treatments. The fee is levied on insurers, as well as self-insured and level-funded health plans.

The fee is calculated based on the average number of covered lives under a plan and is due once a year, with the filing occurring during the second quarter on Form 720 , the Quarterly Federal Excise Tax Return . The payment is due by July 31 each year.

Key Details for Employers and Plan Sponsors

Who is Affected? : The fee applies to health insurers, self-insured health plans, and level-funded health plans.

When is it Due? : The fee must be reported on Form 720 and paid by July 31 each year.

How is it Calculated? : The fee is based on the average number of covered lives during the plan year.

The updated $3.47 per covered life fee will be in effect for health plans with policy years ending between October 1, 2024, and October 1, 2025. Employers should be prepared to account for this increase when filing for 2025.

For more information on the PCORI fee and its reporting requirements, consult the IRS Bulletin 2024-49 , published on December 2, 2024, or visit the IRS PCORI Fee page .

Federal DOL Restores Simplified Tip Credit Rule: Employer Guidance

Mon, 06 Jan 2025 02:17:50 GMT

In a move welcomed by many employers in the hospitality and service industries, the U.S. Department of Labor (DOL) has officially reinstated the pre-2021 tip credit rule. This change, effective December 17, 2024, follows a recent court of appeals decision that vacated the “80/20/30” tip credit rule that had been implemented under the Trump administration. If you’re wondering what this means for your business, don’t worry—this update doesn’t require any immediate action on your part.

What Was the "80/20/30" Rule?

Before we dive into the implications of the DOL’s latest rule change, let’s quickly review the "80/20/30" rule. This rule, introduced in 2021, placed specific restrictions on how much time tipped employees (such as waitstaff and bartenders) could spend on non-tip-generating duties (e.g., cleaning, setting up, and other side work). The rule essentially required that tipped workers spend at least 80% of their work hours on tip-generating activities to continue qualifying for the tip credit.

Moreover, under the "80/20/30" rule, employers could no longer use the tip credit to offset wages for certain non-tip-producing activities, and they had to ensure that employees spent no more than 30 minutes at a time on side duties. This increased the burden on employers, as it required more careful tracking of employee duties and work hours to remain in compliance.

Why Was the Rule Vacated?

The court of appeals decision in August 2024 ruled that the "80/20/30" rule was too restrictive and inconsistent with the intent of the Fair Labor Standards Act (FLSA), which allows employers to take a tip credit for workers who perform both tipped and non-tipped duties. The court found that the new rule created unreasonable administrative burdens and restrictions that were not in line with past practices or legal precedents. In response to this ruling, the DOL moved quickly to restore the pre-2021 tip credit rule.

What Does the Reinstatement of the Pre-2021 Rule Mean for Employers?

With the reinstatement of the pre-2021 tip credit rule, the DOL has effectively simplified the way employers can apply the tip credit to their workers. Under the prior rule, employees who perform a combination of tipped and non-tipped duties can still qualify for the tip credit, as long as their primary job responsibility is related to tipped work.

Employers no longer have to track the precise breakdown of time spent on tip-generating vs. non-tip-generating activities in the same way. This returns to the more flexible guidelines where as long as tipped employees perform "related" duties (e.g., cleaning their station, setting up for service), they can still receive the tip credit for those hours, provided those activities don’t dominate their workday.

What Action Is Needed from Employers?

For most employers, this change will not require any immediate action, as the final rule effectively restores the pre-2021 approach. The main thing to note is that employers should continue to comply with the broader requirements of the Fair Labor Standards Act (FLSA) and ensure they are properly paying employees at least the federal minimum wage (including tips) when they apply the tip credit.

Here are a few things to keep in mind:

Reassess Timekeeping Systems: While the rule change simplifies some aspects of record-keeping, employers still need to ensure they have a timekeeping system in place that accurately tracks the hours worked by tipped employees. It is essential to ensure that the wages (base pay plus tips) equal at least the federal minimum wage.

No Need for Immediate Adjustments: If you were already applying the pre-2021 tip credit rule, no changes are necessary on your part. For those who had adjusted to the "80/20/30" rule, reverting back to the previous method should not require significant changes.

State and Local Laws: Employers should still be mindful of any state or local laws that may have stricter requirements than federal law. Always check your state’s labor regulations to ensure full compliance.

Why Is This Change Important?

The reinstatement of the simplified tip credit rule provides relief to many employers, particularly in industries like restaurants, hotels, and other service-based businesses where tipping is common. The pre-2021 rule is seen as more employer-friendly, offering more flexibility in how tipped employees can spend their time without losing eligibility for the tip credit.

For employers, this means less administrative burden, reduced risk of compliance issues, and potentially fewer legal challenges. This shift is a step toward simplifying labor law compliance for businesses already struggling with the complexities of wage and hour rules.

Looking Ahead

As we move further into 2025, it’s important for employers to stay informed of any future changes in federal labor regulations. While this change restores a previous rule, the DOL’s stance on tip credits and wage issues can continue to evolve. Employers in tip-dependent industries should continue to monitor updates from the Department of Labor and legal rulings to ensure ongoing compliance.

The DOL’s restoration of the pre-2021 tip credit rule is a welcome change for many businesses, offering a return to simpler guidelines and less restrictive requirements. For most employers, no immediate action is required, but it’s always a good idea to review your practices to ensure they align with the updated rule.

If you need further assistance in navigating these changes, reach out to Simco to ensure your business stays compliant in 2025 and beyond.

New Year, New Rules: Key Federal Updates for 2025

Fri, 03 Jan 2025 01:52:49 GMT

As we move into 2025, several important federal law changes have taken effect or will soon take effect. Here’s a roundup of the key updates that impact businesses and employees:

IRS Mileage Reimbursement Rate

Effective January 1, 2025, the IRS standard mileage rate has increased to 70 cents per mile for business travel, up from 67 cents in 2024. This rate applies to all vehicles, including electric and hybrid models.

While using the IRS rate for mileage reimbursement is optional, it remains a widely accepted standard for reimbursing employees who use their personal vehicles for work-related travel. If your organization uses the IRS rate, be sure your systems reflect this updated rate.

Extension for EAD Automatic Extension Period

Since 2022, the Department of Homeland Security has had temporary rules extending the automatic extension period for Employment Authorization Documents (EADs) from 180 days to 540 days due to processing backlogs. Starting January 13, 2025, this 540-day extension will become the permanent standard for certain EAD renewals.

The final rule applies to EAD applications filed on or after May 4, 2022, that remain pending. For more details on this change, you can review the official guidance on EAD extensions.

Federal Contractor Minimum Wage Increases

As of 2025, the minimum wage for employees working under federal contracts has increased as follows:

Contracts Covered by Executive Order 13658 : The minimum wage has risen to $13.30 per hour, with the minimum base wage for tipped employees increasing to $9.30 per hour.

Contracts Covered by Executive Order 14026 : The minimum wage for both tipped and non-tipped employees is now $17.75 per hour.

For more information on the contracts covered by these executive orders, including helpful FAQs and a side-by-side comparison, visit the Department of Labor's resources here .

Transforming Your HR Tech Stack: Why the Right Tools Matter

Sun, 29 Dec 2024 17:14:12 GMT

Your HR technology does more than manage processes—it shapes the employee experience (EX) and directly impacts engagement. From onboarding to payroll and everything in between, the tools you choose can make or break how your workforce feels about their workplace.

With 2024 winding down, organizations recognize that improving EX and employee engagement is crucial. Selecting a robust, scalable, and user-friendly human capital management (HCM) platform is no longer optional—it’s a cornerstone of strategic HR management.

Why Businesses Are Rethinking Their HR Platforms

The decision to invest in or replace an HCM system often comes down to both practical benefits and long-term strategy. A top-tier HCM platform should:

Unify the employee lifecycle into a seamless, connected system.
Scale with your business , meeting the needs of today while planning for tomorrow.
Provide intuitive tools that empower employees to handle HR tasks independently.

Organizations are prioritizing improvements in these key areas:

Enhancing employee engagement and overall experience.
Increasing transparency and communication across teams.
Simplifying HR processes by consolidating multiple tools into one platform.
Automating repetitive tasks to create efficiency.

A recent trend shows that more than a third of businesses are considering switching HCM providers in the coming year. While cost reduction is the leading motivator, businesses also seek solutions that align with digital transformation goals and long-term growth.

Tackling Security and Complexity

As companies grow, managing employee data across multiple systems becomes increasingly risky. Disconnected platforms not only create inefficiencies but also heighten the potential for data breaches—a top concern for HR leaders today.

As an isolved Network Partner, we at Simco offer a streamlined, all-in-one HCM platform. By consolidating HR processes into a single solution, we help businesses simplify workflows, protect sensitive employee information, and reduce the likelihood of security vulnerabilities.

What Makes an HCM Solution Stand Out?

When exploring HCM options, decision-makers look for features that drive efficiency, growth, and adaptability. The most sought-after platform capabilities include:

End-to-end support for every stage of the employee lifecycle.
Compliance tools that keep pace with changing regulations.
Scalability to grow alongside your organization.
User-friendly design that’s easy for both employees and administrators to navigate.

Additionally, HR teams value vendors who:

Continuously innovate to meet emerging needs.
Prioritize the security of employee and business data.
Offer dedicated support and training for their clients.

The Case for Automation

Automation is rapidly becoming a game-changer in HR. Key areas like recruiting, onboarding, benefits enrollment, and payroll can all benefit from automation, saving time and reducing errors. By streamlining these functions, HR teams can focus on strategic initiatives, like fostering a positive company culture and enhancing the employee experience.

With an HCM platform like isolved, businesses can not only automate repetitive tasks but also gain deeper insights into their workforce. These insights can drive smarter decision-making and help create a more agile, productive organization.

What Sets Simco Apart: HR Advisory Services

At Simco, we offer more than technology solutions. We provide expert advisory HR services that help businesses navigate complex HR challenges and optimize their processes. Whether you need support on a specific project or comprehensive ongoing HR assistance, we offer flexible advisory services in both à la carte and package form.

Our HR specialist works closely with you to understand your organization’s unique needs and create tailored solutions. From compliance to custom handbooks to recruiting, our services ensure that your HR practices align with your business objectives and help you maximize the impact of your technology investment.

Ready to Upgrade Your HR Strategy?

Modernizing your HR tech stack and strategy is about more than keeping up with trends—it’s about creating a system that supports your business and employees today, while preparing for tomorrow.

With our comprehensive HCM solutions and advisory services, you can optimize your HR strategy, enhance employee engagement, and set your organization up for long-term success.

Let’s start the conversation about how we can help you transform your HR processes. Contact us today to learn more!

Source Information

This blog post incorporates insights from isolved’s Fourth-Annual HR Leaders Report, which analyzed responses from over 1,000 HR decision-makers in management roles or higher across the United States. Conducted in early 2024, the report provides a comprehensive overview of trends, challenges, and opportunities in human capital management. It includes data from industries such as healthcare, manufacturing, and retail, with representation from organizations of all sizes. For additional details about the study, contact Simco!

Preparing for 2025: Key New York Employment Law Updates

Fri, 06 Dec 2024 21:36:58 GMT

As we welcome the New Year, employers across New York State must prepare for significant employment law changes that take effect on January 1, 2025. These updates, applicable to businesses of all sizes, highlight New York’s commitment to supporting workers and their families. Here's a breakdown of what’s new and how your organization can stay compliant.

Paid Prenatal Leave: A New Benefit for Expecting Employees

Starting January 1, 2025, New York employees who are pregnant will be entitled to 20 hours of paid prenatal leave within any 52-week period. This leave can be used for healthcare services related to their pregnancy and taken in increments as small as one hour.

Importantly, employers cannot require employees to provide medical documentation or information about their health condition to access this leave. Click here to read the state’s recently released FAQs .

Action Steps for Employers

Update Your Employee Handbook : Add a section on paid prenatal leave to ensure compliance.
Train Your Managers : Educate leadership on this new entitlement to support expecting employees appropriately.

Minimum Wage and Salary Threshold Adjustments

To reflect the state’s continued focus on fair pay, minimum wages and salary thresholds are increasing in 2025. The changes vary based on location, with notable distinctions between New York City (and surrounding counties) and the rest of the state.

New York City, Suffolk, Nassau, and Westchester Counties

Minimum Wage : $16.50/hour

Tipped Hospitality Workers :

Service Employees: $13.75/hour
Food Service Workers: $11/hour

Home Care Aides : $19.10/hour

Exempt Employees :

Minimum Salary Threshold: $1,237.50/week ($64,350 annually)

Rest of New York State

Minimum Wage : $15.50/hour

Tipped Hospitality Workers :

Service Employees: $12.90/hour
Food Service Workers: $10.35/hour

Home Care Aides : $18.10/hour

Exempt Employees :

Minimum Salary Threshold: $1,161.65/week ($60,405.80 annually)

How to Stay Ahead of Compliance

Review Payroll Practices : Ensure that your systems reflect the updated minimum wages and salary thresholds starting January 1, 2025.
Communicate Changes : Inform employees about the new wage rates and ensure tipped and exempt employees understand how these adjustments affect them.
Monitor Industry-Specific Rules : Pay special attention to wage requirements for roles like tipped workers and home care aides.

Looking Ahead

New York State’s 2025 employment law updates reflect an evolving workplace landscape that prioritizes both fair wages and family-focused benefits. By proactively implementing these changes, businesses can foster compliance, improve employee satisfaction, and position themselves as forward-thinking employers.

For additional guidance or support in updating your policies, Simco is here to help!

Understanding What Drives Workplace Turnover in 2024

Fri, 22 Nov 2024 18:56:49 GMT

As 2024 draws to a close, one question looms large for employers: What’s driving employees to switch jobs? While salary and benefits consistently top the list of reasons employees explore new opportunities, a deeper dive reveals the factors that prompt them to make the leap.

Benefits: A Critical Factor in Employee Decisions

For employees who changed jobs in 2024, benefits were the most significant factor influencing their decision. This highlights a gap in the quality of benefits many employers provide. While 401(k) matching is the most common benefit reported by respondents, other essential offerings are surprisingly scarce:

Only 43% of respondents have health insurance through their employer.
Just 35% report having access to paid time off (PTO).

These numbers suggest that many companies are falling short of what employees now view as basic expectations.

Flexibility: The New Workplace Priority

When deciding to accept a new role, flexibility in work environment emerged as the top motivator for employees, surpassing salary for the first time. This represents a significant shift from 2023, when 68% of respondents prioritized salary above all else. Today, remote or hybrid work options are reshaping how employees evaluate job opportunities.

Millennials and Gen Z, in particular, are driving this trend, as they place a high value on flexible arrangements that support their lifestyles. For Millennials, flexibility ranks as a key factor in staying with an employer—26% cited it as their primary reason for remaining in their current role. Moreover, 16% of employees across generations indicated that flexible work environments are the top reason they’re not seeking new opportunities.

Flexibility Is More Than Just Remote Work

Flexibility doesn’t stop at where employees work—it’s about how they work. Flexible hours on top of hybrid models and remote options can be critical to reducing burnout and improving job satisfaction.

48% of employees believe flexible work environments help prevent burnout.
40% view a lack of flexibility as a threat to positive company culture.
1 in 10 employees would leave their job solely to gain more flexibility.

By offering adaptable work arrangements, employers can improve retention and create a workplace that meets the evolving needs of today’s workforce.

The Role of Personalization in Benefits

Younger generations are also calling for more personalized benefits packages. Standard, one-size-fits-all plans no longer meet their diverse needs. Here’s how generational preferences vary:

Younger employees prioritize tuition reimbursement and student debt relief nearly twice as much as older generations.
Boomers value vision benefits three times more than Millennials.

These differences underscore the need for employers to offer tailored benefits that reflect the unique needs of their workforce.

The Impact of Benefits Enrollment Stress

A significant portion of employees (72%) find benefits selection stressful, with unclear information and difficulty comparing plans being the top pain points. This stress can have serious consequences for employers:

More than half of employees indicated that a poor benefits enrollment experience would drive them to seek a new job.
50% said a negative benefits experience overall would prompt them to leave.

To address these issues, companies can leverage technology that simplifies the enrollment process. Tools that offer real-time comparisons and transparent cost breakdowns can significantly enhance the employee experience (EX).

Payroll Errors: A Major Employee Concern

While benefits play a crucial role in retention, payroll processes remain a top area for improvement. A staggering 60% of employees reported being affected by payroll errors. This underscores the importance of getting the basics right when it comes to HR functions. Accurate and reliable payroll processes are fundamental to fostering trust and satisfaction among employees.

Meeting the Evolving Needs of Employees

To attract and retain top talent, employers must adapt to changing expectations. This means:

Enhancing benefits : Offer comprehensive, tailored packages that address generational preferences.
Improving technology : Simplify benefits enrollment and ensure payroll accuracy.
Prioritizing flexibility : Embrace remote, hybrid, and flexible work models to support employees’ work-life balance.

By addressing these areas, employers can build a competitive edge in recruitment and retention, ensuring they meet the needs of a diverse and tech-savvy workforce.

Survey Insights
The insights in this article are based on the "Voice of the Workforce" report by isolved, which analyzed responses from 1,127 full-time U.S.-based employees ranging from entry-level staff to C-suite executives. The survey was conducted online in Q3 of 2024.

Risk Mitigation Tips for Company Holiday Parties

Thu, 31 Oct 2024 20:54:21 GMT

The holiday season is a time for celebration, but it can also bring potential risks for employers. To ensure a safe and enjoyable experience for all employees, consider the following strategies to mitigate risks during your company’s holiday gathering.

1. Make Attendance Optional

Clearly communicate that attendance at the holiday party is optional. It’s essential to create an environment where employees don’t feel pressured to attend, as this can lead to resentment or claims of discrimination. Ensure that managers understand the importance of not implying that attendance is linked to performance evaluations.

2. Keep It Non-Work Related

To maintain the festive spirit, avoid any work-related activities, such as presentations or updates. Hosting the event off-site and outside of regular business hours can reinforce the idea that this gathering is a time for relaxation and fun. Allowing employees to bring a guest can also enhance the social atmosphere.

3. Set Clear Expectations

Prior to the event, establish guidelines around respectful behavior and responsible drinking. Remind employees that company policies, including those regarding harassment and conduct, remain in effect during the festivities.

4. Monitor Alcohol Service

Plan to manage alcohol service carefully. Ensure that no minors or visibly intoxicated individuals are served alcohol. Consider hiring professional servers or holding the event at a venue with trained staff who can refuse service to those who have had enough to drink.

5. Opt for a Cash Bar

Hosting a cash bar can reduce liability, as it signals that the company is not providing alcohol directly. This approach may also limit consumption, as employees will be more mindful of their spending.

6. Limit Alcohol Intake

Distributing a set number of drink tickets can help control the amount of alcohol each attendee consumes. While this tactic has limitations, it can be beneficial in promoting responsible drinking.

7. Choose Appropriate Entertainment

Select entertainment and venues that foster a respectful and inclusive atmosphere. Avoid any activities that could be seen as provocative or offensive, as these settings can lead to uncomfortable situations, especially when combined with alcohol.

8. Plan for Safe Transportation

Make arrangements for employees to get home safely after the event. Options may include providing ride-sharing services, public transportation vouchers, or organizing group transportation. Encouraging attendees to designate a sober driver at the beginning of the party can also be an effective strategy.

9. Offer Food and Non-Alcoholic Beverages

Provide a variety of food and non-alcoholic drinks. This consideration not only helps ensure the safety of employees but also demonstrates that the company values all attendees, including those who may not wish to consume alcohol.

10. Act Responsively

If an employee is visibly intoxicated and needs assistance getting home, don’t hesitate to arrange transportation. It’s crucial to prioritize employee safety over any reluctance to intervene, as taking swift action can prevent serious consequences.

Conclusion

By implementing these strategies, employers can create a holiday party that fosters enjoyment while prioritizing safety and respect. With thoughtful planning and proactive measures, your company’s celebration can be a memorable and positive experience for all employees.

Happy holidays from Simco!

New DOL Overtime Rule Effective January 1, 2025: What Employers Need to Know

Thu, 31 Oct 2024 17:49:52 GMT

In April 2024, we shared the U.S. Department of Labor’s (DOL) announcement of a new overtime rule under the Fair Labor Standards Act (FLSA), setting higher salary thresholds for white-collar exemptions, which first took effect on July 1, 2024. Now, as the second increase approaches, employers should prepare for the final phase of the rule, effective January 1, 2025, when salary levels will again rise for executive, administrative, and professional employees, as well as highly compensated employees.

What Are the New Salary Thresholds?

Starting January 1, 2025, employers will need to ensure that salaries meet the new DOL requirements to maintain overtime exemptions:

Executive, Administrative, and Professional (EAP) Employees:
To qualify for the overtime exemption, EAP employees must now earn a minimum salary of $58,656 per year (or $1,128 per week).

Highly Compensated Employees (HCE):
HCEs must earn at least $151,164 annually to maintain their exempt status under the new guidelines.

These changes aim to ensure fair compensation and proper classification for employees, helping prevent wage and hour violations.

Action Steps for Employers

While there may be challenges ahead, employers must take proactive steps to get ready for the rule’s implementation as scheduled. Here are some recommended actions:

Evaluate Your Workforce and Classifications: Review exempt roles, including job responsibilities and salary levels, to determine how upcoming changes will affect your organization and identify any necessary adjustments.

Seek Legal Guidance: Collaborate with your legal team to understand the new rule's implications and ensure compliance with state laws.

Prepare for Changes: Develop strategies for potential reclassifications, including necessary training and clear communication plans to inform affected employees about changes to their status and compensation.

Final Thoughts

As you prepare for the upcoming changes in the DOL's overtime rule, take this opportunity to review and optimize your compensation practices. Ensuring that employee classifications and salaries align with the new thresholds will help safeguard your organization against compliance issues and promote a fair work environment for all employees.

If you need assistance or have questions, contact Simco !

Navigating Rising Home and Auto Insurance Costs: Simco Can Help

Wed, 09 Oct 2024 20:17:21 GMT

The cost of personal insurance—homeowners and auto policies—has seen significant increases in recent years. Between 2021 and 2023, the average annual rate for homeowners insurance jumped by nearly 20%, according to Insurify . Auto insurance premiums, too, have risen by 16.5% in just the last year, based on data from the Bureau of Labor Statistics . With these rising costs, staying with your current insurer without exploring other options could mean you're overpaying.

Here’s what you need to know about why rates are increasing and how you can mitigate those costs.

Why Are Insurance Rates Rising?

Several factors are contributing to the rise in personal insurance rates:

1. Climate Change and Natural Disasters: Extreme weather events, including hurricanes, wildfires, and floods, have caused a surge in claims, leading insurers to raise premiums to cover future risks.

2. Increased Cost of Materials and Labor: Rebuilding or repairing homes and vehicles is more expensive today due to rising costs in construction materials and labor.

3. Higher Medical Costs: Auto insurance premiums are also influenced by the cost of treating injuries after an accident. As healthcare costs continue to rise, so do insurance premiums.

4. Supply Chain Disruptions: Global supply chain issues have made vehicle repairs and replacements more expensive, driving up auto insurance rates.

What You Can Do to Manage These Costs

1. Shop Around Regularly: While many people tend to stick with the same insurer year after year, it’s always a good idea to shop around. Comparing quotes from different providers can help you find better rates or discounts that you may not be aware of. Often, new customers are eligible for introductory offers that can save you money in the short term.

2. Review and Adjust Your Coverage: It’s important to ensure your coverage accurately reflects your current needs. For instance, you may be paying for unnecessary add-ons or more coverage than is required for your vehicle or home. On the flip side, underinsuring can be costly in the event of a claim. A thorough review of your policies can help you strike the right balance.

3. Bundle Your Policies: Many insurance companies offer discounts for bundling multiple policies, such as home and auto insurance. Bundling can be a simple way to reduce your premiums without sacrificing coverage.

4. Take Advantage of Discounts: Insurance companies often provide discounts for things like installing a home security system, having a good driving record, or being a long-time customer. Be sure to ask about available discounts when reviewing your policy.

5. Reach Out to a Specialist (Us!): Navigating the world of insurance can be a daunting task, especially with the rising costs of homeowners and auto policies. That's where having a specialist on your side can make all the difference. At Simco, we’re committed to helping you find the best coverage at the most competitive rates.

How Simco Can Help

Our team works with multiple insurance carriers, allowing us to shop the marketplace for you. This means we can deliver not just the lowest rates but also maintain the coverage you already have or suggest any changes that better suit your needs. Plus, switching is a breeze! We handle the entire process for you, including canceling your old policies—no hassle on your end.

Working with a specialist at Simco means you can also benefit from annual policy reviews. This proactive approach ensures that if you notice a significant increase in your rates, we can quickly explore other options to save you money and guarantee you’re getting the best deal available. You’re never stuck with the same company, and we’re here to help you find the right coverage for your unique situation.

At Simco, we understand the frustration that comes with rising insurance costs, and we're here to support you every step of the way. If you’re looking for guidance or want to explore your options, don’t hesitate to contact us today!

8 Key Benefits of Upgrading Your Onboarding Process

Tue, 01 Oct 2024 15:02:45 GMT

The onboarding process is critical for any organization. It sets the tone for a new hire’s experience, influences employee retention, and ultimately contributes to the overall success of the company. A well-structured onboarding process can help new employees feel welcomed, supported, and equipped for their roles. Leveraging Human Capital Management (HCM) software can enhance these processes, ensuring a seamless and efficient onboarding experience.

Here are some of the top benefits of improving your onboarding process and how HCM software plays a pivotal role.

1. Faster Time to Productivity

One of the most significant advantages of a streamlined onboarding process is the reduction in time it takes for new hires to become productive. By automating routine tasks such as document collection, training schedules, and policy acknowledgment, organizations enable new employees to focus on learning their roles rather than navigating administrative hurdles, allowing them to contribute to their teams more quickly.

2. Improved Employee Retention

Research shows that effective onboarding can increase employee retention rates by up to 82%. By using HCM solutions to create a structured program, companies can provide consistent experiences that make new hires feel valued and engaged. Features such as progress tracking and feedback loops within the system allow managers to monitor integration and satisfaction levels, making it easier to address any concerns promptly.

3. Enhanced Compliance and Risk Management

Compliance is a crucial aspect of onboarding, especially for industries with specific regulations. HCM technology ensures that all necessary training and documentation are completed before the employee starts their role. Automated reminders and tracking features help prevent any oversight, reducing the risk of non-compliance and potential penalties.

4. Personalized Training and Development

With the help of innovative tools, organizations can tailor onboarding experiences to meet the unique needs of each employee. Advanced HCM software can analyze skills, learning styles, and role requirements to recommend personalized training modules. This individualized approach helps employees feel supported and valued, leading to higher engagement levels.

5. Consistent Communication and Engagement

Effective communication during the onboarding process is essential for setting expectations and fostering relationships. The right software provides tools for consistent outreach, such as automated welcome emails, reminders for upcoming meetings, and resources for new hires to access at any time. This ongoing engagement helps build rapport between new employees and their teams, contributing to a more cohesive work environment.

6. Streamlined Document Management

Onboarding often involves a significant amount of paperwork, from tax forms to company policies. A centralized document management system allows new hires to complete and submit necessary forms electronically. This not only saves time but also reduces the likelihood of errors or lost paperwork, ensuring a smooth transition into the organization.

7. Data-Driven Insights for Continuous Improvement

Advanced analytics provide valuable insights that can help organizations assess the effectiveness of their onboarding processes. By using HCM software to track metrics such as employee satisfaction, retention rates, and training completion times, companies can identify areas for improvement. This data-driven approach enables continuous refinement of onboarding strategies, ensuring they remain effective and relevant.

8. Creating a Strong Organizational Culture

A positive onboarding experience is an opportunity to instill the company’s values and culture in new employees. HCM technology can facilitate cultural training and integration, helping new hires understand their role within the broader context of the organization. By showcasing the company culture early on, employers can foster a sense of belonging and alignment with organizational goals.

Investing in a better onboarding process is crucial for any business looking to enhance employee satisfaction and retention. HCM solutions provide the tools and resources necessary to streamline onboarding, making it more efficient and effective. By leveraging technology to create seamless processes, organizations can ensure that new hires feel welcomed, supported, and prepared for success from day one. As a result, companies can build a stronger workforce and cultivate a positive organizational culture that drives long-term success.

Contact Simco to learn more about how our solution can transform your organization's onboarding strategy.

October is Fire Prevention Month: Why Fire Safety Matters for Your Business

Tue, 01 Oct 2024 01:05:15 GMT

As we move into October, businesses have a unique opportunity to focus on safety in the workplace and beyond. October is Fire Prevention Month, with Fire Prevention Week running from October 6–12, 2024. This year’s theme, announced by the National Fire Protection Association® (NFPA®), is “Smoke alarms: Make them work for you!” – an essential reminder for both employers and employees to prioritize fire safety measures in all environments, whether at work or at home.

Why Fire Safety Matters for Your Business

For employers, fire safety is more than just a legal requirement; it’s about ensuring the well-being of employees and safeguarding company property. Fires can happen anywhere, at any time, and while workplace fire drills and safety measures are critical, it’s equally important that employees extend these safety practices to their homes.

According to the NFPA, three out of five fire-related deaths in the U.S. occur in homes without working smoke alarms or where no smoke alarms are present at all. Ensuring that your employees are educated about the importance of fire safety, both in the workplace and at home, can be life-saving.

Fire Prevention Week 2024: What Employers Should Know

This year’s Fire Prevention Week campaign aims to raise awareness about the life-saving power of smoke alarms, which, when properly installed and maintained, reduce the risk of dying in a home fire by over 50%. For business leaders, it's a great time to encourage fire safety awareness through simple steps employees can take at home.

Here are some key takeaways from this year’s theme:

Install smoke alarms in every bedroom, outside sleeping areas, and on each level of the home.
Test smoke alarms monthly by pressing the test button.
Replace smoke alarms every 10 years or sooner if they aren’t functioning correctly.
Consider sensory needs: Make sure smoke alarms meet the needs of everyone in the household, including those with disabilities.

What Businesses Can Do This Month

Fire Prevention Week and Month isn’t just about personal home safety—it also extends to the workplace. Business owners can take proactive steps to create a fire-safe environment and ensure employees are prepared in case of an emergency.

Here’s how you can get involved:

Review Workplace Fire Safety Protocols
Make sure your employees are familiar with your workplace fire prevention measures, exit routes, and safety equipment locations (such as fire extinguishers). Consider conducting a fire drill or a safety walkthrough this month.
Share Fire Safety Resources
Direct your employees to the NFPA's Fire Prevention Week resources on NFPA.org . These tools offer educational materials that your team can easily access to stay informed about fire prevention practices.
Encourage Home Fire Safety
Emphasize the importance of fire safety beyond the workplace by encouraging your employees to check the smoke alarms in their homes. You can distribute helpful reminders or even host a fire safety awareness session to educate your team on key best practices.
Create a Culture of Safety
Fire safety should be an ongoing conversation in your business, not just during October. By instilling a culture of safety, you ensure that both your employees and your workplace remain protected year-round.

Conclusion

Fire Prevention Month is a timely reminder of the importance of safety—both in the workplace and at home. As a business owner, you play a critical role in encouraging awareness and proactive measures that could save lives. Join the nationwide effort this October by revisiting your workplace fire safety protocols and sharing essential fire prevention tips with your employees. Together, we can create safer environments, ensuring that whether at home or work, everyone is prepared and protected.

For more information and resources on Fire Prevention Week and the 2024 theme, “Smoke alarms: Make them work for you!”, visit the official NFPA site at fpw.org .

New Workplace Violence Prevention Rules for New York Retailers

Thu, 26 Sep 2024 20:44:34 GMT

As workplace safety continues to gain priority for businesses, new laws are emerging to protect employees, particularly in sectors that face higher risks of violence. If you’re an employer in the retail sector, it’s essential to stay informed about the updated compliance requirements in New York. The Retail Worker Safety Act , which was originally set to take effect on March 4, 2025, has now been amended and will take effect on June 2, 2025 .

Starting on this date, all retail businesses with 10 or more employees must have a written Workplace Violence Prevention Policy and provide a formal Employee Training Program .

Let’s break down the key updates and how to prepare for these new regulations.

Who Does This Apply To?

This new law applies to employers in retail settings with 10 or more employees , excluding businesses that primarily sell food for consumption on-site, such as restaurants and cafes.

As part of this requirement, retail employers must create a written policy on workplace violence prevention and ensure employees are trained annually. Both the policy and training program must be presented to employees in their primary language upon hire and during annual training sessions.

What Should the Workplace Violence Prevention Policy Include?

The policy must clearly outline how your business will:

Identify and assess potential hazards of workplace violence.
Implement preventive measures to mitigate those risks.
Define the roles and responsibilities of management and staff in maintaining a safe work environment.
Establish procedures for reporting, investigating, and responding to workplace violence incidents.

The New York Department of Labor (NYDOL) is expected to release a model policy and training materials that employers can adopt and implement. These resources are designed to help ease the burden on businesses by providing a ready-to-use framework. If you prefer, you can also develop your own policy and training program, as long as they meet or exceed the minimum standards set by the state.

Why is This Important?

Workplace violence is a significant concern, particularly in retail environments where employees interact with the public. According to OSHA, nearly 2 million U.S. workers report being victims of workplace violence every year, and retail workers are often at higher risk due to frequent exposure to volatile customer interactions, cash transactions, and late working hours.

By implementing these new policies and training programs, not only are you complying with legal requirements, but you’re also taking proactive steps to protect your employees and minimize the risk of violent incidents.

Additional Panic Button Requirement for Large Retailers

In addition to the workplace violence prevention policy and training, businesses with 500 or more retail employees nationwide must also implement a panic button system by January 1, 2027. This can be fulfilled by providing employees with wearable panic buttons or mobile phone-based panic button solutions. These devices must be available throughout the workplace, giving employees an immediate means to signal for help in the event of a violent or dangerous situation.

This added layer of protection is crucial in large retail settings where employees may be spread across different areas of the store, making it difficult to alert colleagues or security quickly during an emergency.

Steps to Take Now

While the effective dates may seem far off, preparing early is key to ensuring compliance and safeguarding your employees. Here are some steps you can take now:

Review Your Current Safety Policies: If you already have safety policies in place, assess whether they address workplace violence adequately. If not, begin outlining a strategy for incorporating these new requirements.
Stay Informed: Keep an eye on updates from the New York Department of Labor, as the model policy and training materials will help guide your compliance efforts.
Consider Panic Button Options: If your business falls under the 500+ employee requirement, start researching panic button systems that can be implemented in your stores.
Prepare Your Team: Start communicating these upcoming changes with your HR team and managers. Early planning ensures a smooth transition when the law goes into effect.

Looking Ahead

The workplace violence prevention policy and panic button requirements reflect a broader trend toward enhancing workplace safety across the retail industry. By complying with these new laws, you’re not only protecting your business from potential penalties but also fostering a safer, more supportive environment for your employees.

Stay tuned for further updates, and don't hesitate to reach out to us if you have any questions about how this impacts your business.

Upcoming Voting Leave Compliance Obligations

Thu, 12 Sep 2024 21:35:56 GMT

With Election Day fast approaching, now is the perfect time for employers to ensure they’re fully informed about their responsibilities regarding voting leave laws and mandatory notices. Elections are a cornerstone of democracy, and it’s important to make sure your employees have the opportunity to exercise their right to vote without unnecessary hurdles. Many states have laws in place requiring employers to provide time off, sometimes paid, for employees to cast their ballots. As an employer, staying compliant and encouraging your workforce to vote helps foster a supportive and engaged environment.

Additionally, it's crucial to understand any obligations you may have to notify employees of their rights around voting leave. Especially with the rise of remote work, ensuring all employees are aware of these rights—whether they are working on-site or remotely—demonstrates a commitment to both legal compliance and the well-being of your team.

Let’s take a closer look at what you need to know as we approach the November 5 election.

Voting Leave

Most states require that employers provide at least a few hours off to vote, and sometimes those hours need to be paid. Often these laws require very little advance notice from employees about their need for leave, so employers should be prepared to grant last-minute requests to leave work to vote.

If you’re in a state with early voting, you may want to encourage employees to take advantage of that option—by offering the same time-off benefit—to reduce the number of absences on Election Day. The availability of early voting and absentee ballots, however, doesn’t change an employee’s right to vote on Election Day if that’s their preference.

Required Notices

California, DC, and New York also require that employers post a notice about employees’ voting rights in a conspicuous location in the workplace. Employees who work from home or don’t report to the workplace regularly should be provided with these notices electronically.

New York

New York requires the notice to be posted at least 10 working days before the November 5 election (this would be October 22 for a Monday through Friday workplace). New York’s notice is available here .

By understanding and adhering to your state’s voting leave laws and notice requirements, you not only stay compliant but also contribute to a positive, supportive workplace culture. Make sure your employees know their rights, and encourage them to get out and vote. A little preparation now will ensure a smooth Election Day for your team and your business.

Navigating AI for Professionals

Fri, 30 Aug 2024 20:25:36 GMT

According to a Glassdoor report , in the year after the launch of ChatGPT, usage of that tool or those like it by professionals in the workplace more than doubled. Are you using an AI tool to help you with your work tasks? Have you considered doing so? If so, read on. There are advantages to be had and risks to note.

The Basics of AI

Artificial intelligence (better known as AI) is an umbrella term for a machine’s ability to make predictions, recommendations, decisions, and perform other tasks that would normally require human intelligence. Generative AI models, for instance, can create text, image, audio, and video in response to user prompts. ChatGPT is a kind of generative AI tool called a large language model. It functions similarly to the text predictor on your text messaging app—the feature that predicts and suggests what your next word will be—but at a much greater scale and with much more sophistication.

It’s important to note that AI is not actually intelligent. It isn’t cognitive or aware. If you asked ChatGPT to give you a compliment, the AI model would say something nice about you, but it wouldn’t mean it. It isn’t capable of feelings, perceptions, or opinions. Given this limitation, AI should not be used as a substitute for human judgment.

The Legal Landscape

All the laws that govern employment still apply when you use AI to help make decisions or take action. Hiring and promotional decisions based on AI must still be free of discrimination. AI used in conjunction with providing and administering employee benefits must comply with the Employee Retirement Income and Security Act (ERISA) for covered employers. Using AI for data analysis must still comply with the Health Insurance Portability and Accountability Act (HIPAA), the Health Information Technology for Economic and Clinical Health Act (HITECH Act), and other laws. AI does not absolve you of your compliance obligations. As more and more AI solutions enter the market and AI becomes further integrated into the workplace, we can expect more legislative and regulatory activity.

Best Practices

If you decide to leverage AI for HR and compliance purposes, we recommend the following practices:

Be diligent when considering and testing AI tools—no AI tool will be perfect, but some may be more reliable than others. Consult with an attorney when vetting AI vendors and reviewing contracts.

Maintain the highest level of privacy practices and standards with all information exchanged with an AI tool.

Implement and enforce an AI policy or set of guidelines so employees understand how they should and shouldn’t use AI at work.

Rely on human expertise to evaluate what AI creates for you. As when using any knowledge-supporting tool (e.g., a search engine), assume it can and will make mistakes.

Set aside time to fact check information and materials created by an AI tool and monitor AI use for discriminatory outcomes and other unlawful practices.

Make sure any AI product your organization uses aligns with and contributes to your business needs.

Keep your actual pain points in mind when thinking about ways to leverage AI tools. Survey employees about aspects of their work they dislike the most and areas of their work they think may benefit from an AI solution.

Develop an AI strategy that explains what you’re using AI to accomplish and how you’ll measure success. Periodically evaluate your uses of AI against those goals and metrics. For example, if a goal for using AI is to save time, does using it in fact save time?

Be transparent with employees regarding your point of view and intentions related to AI. Not everyone is excited about AI and what it means for their jobs. People have very strong feelings about it, positive and negative. As you develop and implement AI practices, monitor morale, solicit employee feedback, and show your appreciation for it. You’ll likely get more buy-in from employees if they have a say in how AI changes their work.

Encourage employees to share how they’re using AI and what’s working and not working. Ensure that everyone feels safe raising concerns, asking for help, or admitting that AI isn’t working as the company may have hoped.

Plan for continued education and constant monitoring. AI technology is advancing rapidly. Employees will need regular training as models develop and new laws pass.

Continuously monitor federal and state law.

Practices to Avoid

Some practices may spell trouble for your organization. We recommend avoiding the following:

Assuming an AI model or its output complies with federal and state laws. When asked to draft a termination letter, for example, an AI tool may produce a letter that cites reasons for the termination that it pulls out of thin air—and those reasons may even be unlawful. Don’t hand over AI generated resources or publish AI produced copy without thoroughly vetting it.

Assuming AI’s sources are reliable or real. Just because AI tells you a law, regulation, or court case exists or says a certain thing doesn’t mean it does.

Allowing yourself to be persuaded by AI’s confident tone. AI can sound authoritative when what it’s telling you is wrong or completely made up.

Relying on AI to make employment-related decisions. AI does not provide you with a “get out of liability free” card.

Using AI technology to analyze employee data containing protected health or personally identifiable information.

Creating legal or legally required documents with generative AI.

Uploading anything into an AI model that you wouldn’t want shared publicly.

Replacing human expertise with AI content.

In conclusion, while AI tools can offer significant advantages in streamlining workplace tasks and decision-making, it's crucial to navigate their use with caution. Adhering to legal standards, maintaining privacy, and integrating human oversight are essential to harnessing the benefits of AI responsibly. By approaching AI thoughtfully, organizations can leverage its capabilities while mitigating potential risks and ensuring compliance with relevant regulations.

Managing Political Conversations and Supporting Employee Voting Rights

Mon, 26 Aug 2024 15:48:33 GMT

Given the continuing divisive political climate in the United States, many companies are grappling with whether and how to attempt to limit conversations about politics in the workplace.

Some companies are also interested in channeling Election Day energy into supporting voter turnout efforts and providing nonpartisan voter education information and resources. This article explains what employers and managers can do and what pitfalls to avoid.

Managing Workplace Political Conversations

A private employer generally has wide latitude to limit political expression in the workplace provided they don’t run afoul of protected activity under Section 7 of the National Labor Relations Act (NLRA) or applicable state laws. However, it’s nearly impossible to limit all political conversation in the workplace, and any attempt to do so may hurt morale or employee engagement.

At the same time, without guidelines, political conversations can quickly become disruptive and devolve into activity that is not in line with company policies or behavioral expectations. Here are approaches to consider for dealing with political expression in the workplace; the right approach will ultimately depend on the employer’s specific situation and culture.

Most Permissive: Allowing Political Discussion

Where a work environment has well-established norms around upholding an inclusive culture and respectful treatment of colleagues, an employer can often trust staff to be mindful of how they engage on hot-button topics and address any related issues on an as-needed basis. However, given current political polarization, even if a company has laid the groundwork to ensure its culture is civil and respectful, it may prove useful to communicate some ground rules ahead of the election.

There is no way to guarantee that employees engage with civility, compassion, and measured language. An employer can, however, help set the stage by:

Acknowledging that regardless of political party or beliefs, tensions are running high, and many team members may be feeling stress or fear related to the upcoming election.
Reminding employees that the workplace is a place where everyone should feel safe, welcomed, respected, and included.
Reminding managers that they shouldn’t assume that all employees share the same political beliefs.
Communicating to employees that the company doesn’t want to limit healthy dialogue about important social issues, but it also has a vested interest in reducing disruptions and maintaining a culture of respect.
Redistributing company harassment, discrimination, and general conduct policies.
Prohibiting comments about candidates (or anyone else) that are discriminatory or harassing based on the candidates’ or their supporters’ race, sex, national origin, religion, color, age, disability, or any other legally protected characteristic.
Reminding employees that too much personal conversation of any kind can interfere with performance expectations. Even an exchange that’s only a few minutes long, if it is divisive or disrespectful, could result in a loss of productivity and damage to morale.
Encouraging employees to be mindful of how and when they engage in conversation on political topics. Some people enjoy talking politics while others find it stressful and don’t want to engage in political conversation at work.
Encouraging employees to approach these conversations from a place of curiosity. Employees should attempt to understand the viewpoints of others, accepting that they may not find common ground. Conversation should be seen as an opportunity for better understanding, not a means to change someone’s mind.
Setting guidelines for managers related to the election and political conversations, such as the ones at the end of this guide.

Middle Ground: Prohibiting Certain Behaviors

Employers may want to curb but not eliminate the possibility of political discourse in the workplace. In this case, it may be enough to spell out specific activities that are off-limits. For example:

Distributing political materials in working areas or displaying campaign materials in employee workstations.
Talking about political candidates in front of customers, vendors, or other workplace visitors.
Discussing political candidates on company computers or internal communication channels (keep in mind that if employees are working from home, this will amount to a total ban).
Prohibiting solicitation of money or support for political candidates or causes during work time.

Employers should avoid cherry-picking topics that cannot be discussed. Singling out certain topics, such as “No discussing Black Lives Matter,” is likely to create employee morale issues and could even give rise to a discrimination claim. And even with a neutral policy, such as “No discussing religion,” employers need to ensure that they are perfectly consistent in enforcement. If, for instance, an employer only disciplined employees who were arguing about Judaism in the lunchroom, but not employees talking about Sunday’s Mass over the cubicle wall, that would be discriminatory. (This is why having a policy around civility, respect, and the use of “inside voices” will generally be safer and ultimately more effective in achieving the goal of a harmonious workplace.)

Finally, the fact that many political topics bleed into one another makes enforcement an exercise in futility. A conversation on the topic of religious liberty might quickly turn into a conversation about trans rights or women’s rights, and a discussion about abortion might suddenly switch to a discussion about welfare policy and immigration.

Employers taking the middle ground approach should also provide the guidelines presented above for the most permissive workplace and make sure they are familiar with Section 7, discussed next.

Most Restrictive: Prohibiting Political Discussions

An employer is within its rights to attempt to ban almost all political discussions in the workplace (exceptions are discussed below). That said, the risks of this approach are significant. A strict ban on talking politics in the workplace can send a message that an employer doesn’t trust employees to use good judgment and engage with coworkers respectfully. It also fails to recognize the impact that current political and social issues have on employees.

Employers may also find it difficult to delineate what is considered political versus not political. What one person might consider an over-politicized issue may be very personal to someone else. For instance, prohibiting discussions about religious freedom, civil rights, and LGBTQ+ rights could feel like a prohibition on discussing an employee’s basic human experience. This can lead to feelings of exclusion and can potentially fuel claims of discrimination.

It’s a common misconception that all speech is protected in all places, but the First Amendment right to free speech only protects people from having their speech limited by the government. Under federal law, private employers are free to regulate speech in almost any way that does not conflict with Section 7 of the National Labor Relations Act. However, some states have protections that could limit an employer’s ability to prohibit political speech. For example, California and the District of Columbia protect political affiliation and Connecticut protects employees’ First Amendment rights. Employers should check their state laws to ensure any limitations are legal.

Section 7 of the National Labor Relations Act gives non-supervisory employees the right to discuss the terms and conditions of their employment at any time, in any forum (e.g., the break room, the sidewalk, Facebook, or Yelp).

This includes discussing:

How much money they make, including any opinions about how their pay is impacted by race, national origin, sex, or their inclusion in any other protected class.
Workplace safety, whether it relates to coming in to work during protests, specific hazards, or anything else safety related.
Employer-required or recommended personal protective equipment.
Treatment from management.
Shift assignments.
Anything related to unionizing.

While this law protects some political activities, it doesn’t give employees the right to discuss politics that aren’t work-related during work hours.

Employers that intend to limit workplace conversations should learn about Section 7 of the NLRA since it is easy to violate if its protections aren’t fully understood. Employers should make it clear in their communications that the company does not prohibit conversations that would be protected under the NLRA and does not limit employees’ ability to engage in off-duty political activities but may investigate off-duty conduct that violates company policy.

When Employees Speak with Their Wardrobe

As a general matter, employers can set and enforce consistently applied neutral uniform policies and dress codes. However, the NLRA makes it illegal to prohibit employees from wearing union buttons, t-shirts, and other insignia related to working conditions unless special circumstances warrant the restriction, such as legitimate safety concerns.

Some workplaces ban clothing with graphics or slogans regardless of the political climate, which will generally solve for the political clothing problem automatically. But employers that have had a lax dress code (or, in many cases, no dress code) should consider whether the benefits of implementing stricter guidelines would outweigh the potential negative impact on culture and morale.

Voting Leave

It comes as a surprise to many employers that a majority of states require that employees be given time off to vote, and in many cases, that time must be paid.

While we encourage employers to go above and beyond the bare minimum in any given year, providing added flexibility remains important to employees. Even where it’s possible to vote by mail or absentee ballot, many people still like to vote in person, so it’s important not to assume that everyone can or should vote by mail.

Employers can do their part to encourage voting participation by removing obstacles at work.

Ways to Facilitate Voting

The most generous approach to encourage voting is making Election Day a paid holiday. This will maximize employees’ ability to vote without concern over lost income. However, this isn’t an option for many businesses, so employers may consider some of the following alternatives:

Make Election Day a no-meetings day. Any meetings that are already scheduled should be rescheduled.
Make Election Day a meeting-light day. Move meetings to allow the most time for voting and shorten meeting agendas.
Work with managers to accommodate absences due to voting.
Provide as much paid time off as an employee reasonably needs to vote (even if it’s not required by law).
Trust employee estimates of how much time is reasonable or sufficient. Anticipate long lines.
Be flexible and plan for last-minute voting leave requests.

Voter Education and Civic Engagement

Employers can help employees to be well informed of their state voting requirements and procedures and can take steps to promote civic engagement. Suggestions for this extra step include the following:

Provide nonpartisan information about voting processes and procedures in each state where the company operates. There are many resources for this online. Choose a credible, nonpartisan source to share.
Provide links to nonpartisan sites with information on how to volunteer as a poll worker or otherwise be involved in helping ensure a safe and smooth election process.
Encourage employees to explore early voting options where applicable.
Provide paid time off (volunteer time off) for voting-related volunteer activities such as being a poll worker.

A few things not to do:

Attempt to influence the political decisions of employees (e.g., by saying, “Our business won’t survive if candidate X gets elected” or “If you want to have a job, vote for candidate Y.”).
Provide partisan information to employees.
Force any employee or group of employees to participate in any political discussion, even if it seems nonpartisan.
Ask employees how they voted.
Take adverse actions, threaten, or retaliate against employees for how they vote or for their political beliefs.

Whatever the company decides, even if it’s to provide the minimum required by law, it should communicate early and often about employees’ ability to take the needed time off to vote.

Manager Guidelines

In whatever way an employer decides to address workplace political discussion and voting leave, communication around manager expectations is key. Consider guiding managers to:

Unify their team as much as possible while making space for different perspectives.
Help employees avoid tension caused by differing political beliefs by separating the person from their politics. Get to know one another’s hobbies, pets, family, or life goals.
Ground discussions in company values or strategic goals instead of political persuasion. For example, “The company believes racial justice is a human rights issue and aligns with our desire to create an inclusive workplace.”
Limit discussion of their own political beliefs to avoid an appearance of favoritism for team members with similar beliefs.
Monitor team discussions and climate, helping to redirect conversations as needed.
Know the applicable state voting leave requirements and be as flexible as possible in allowing time off to vote.
Follow company policy related to social media engagement with team members and colleagues.
Avoid getting involved in employees’ off-the-clock political lives unless it has a connection to work or violates a company policy. Concerns about off-duty political activities should be brought to HR for guidance.
Avoid attempting to influence employees’ political decisions or ask how they voted.
Not take adverse actions, threaten, or retaliate against employees for how they vote or their political beliefs.

In conclusion, navigating political discussions in the workplace requires a careful balance between maintaining a respectful environment and acknowledging employees' diverse viewpoints. By implementing clear guidelines and fostering an atmosphere of open, nonpartisan dialogue, employers can support a productive work environment while also encouraging civic engagement and respecting individual political beliefs.

2025 Open Enrollment Checklist

Fri, 02 Aug 2024 15:40:18 GMT

To get ready for open enrollment, employers who sponsor group health plans should be aware of compliance changes affecting the design and administration of their health plans for plan years beginning on or after Jan. 1, 2025. These changes include limits that are adjusted for inflation each year, such as the Affordable Care Act’s (ACA) affordability percentage and cost-sharing limits for high deductible health plans (HDHPs). Employers should review their health plan’s design to confirm that it has been updated, as necessary, for these changes.

In addition, any changes to a health plan’s benefits for the 2025 plan year should be communicated to plan participants through an updated summary plan description (SPD) or a summary of material modifications (SMM).

Health plan sponsors should also confirm that their open enrollment materials contain certain required participant notices, such as the summary of benefits and coverage (SBC), when applicable. Some participant notices must also be provided annually or upon initial enrollment. To minimize costs and streamline administration, employers should consider including these notices in their open enrollment materials.

Plan Design Changes

ACA Affordability Standard

The ACA requires ALEs to offer affordable, minimum-value health coverage to their full-time employees (and dependents) or risk paying a penalty to the IRS. This employer mandate is also known as the “pay-or-play” rules. An ALE is an employer with at least 50 full-time employees, including full-time equivalent employees, during the preceding calendar year.

An ALE’s health coverage is considered affordable if the employee’s required contribution for the lowest cost self-only coverage that provides minimum value does not exceed 9.5% (as adjusted) of the employee’s household income for the taxable year. For plan years beginning in 2024, the adjusted affordability percentage is 8.39%.

The affordability percentage for plan years beginning on or after Jan. 1, 2025, has not been released yet. Going forward, ALEs should take the following steps:

Monitor future developments for the IRS’ release of the affordability percentage for 2025; and
Once the affordability percentage is released, confirm that at least one of the health plans offered to full-time employees satisfies the ACA’s affordability standard. Because an employer generally will not know an employee’s household income, the IRS has provided three optional safe harbors that ALEs may use to determine affordability based on information that is available to them: the Form W-2 safe harbor, the rate-of-pay safe harbor and the federal poverty line safe harbor.

Out-of-Pocket Maximum Limits

Non-grandfathered health plans and health insurance issuers are subject to limits on cost sharing for essential health benefits (EHB). EHBs reflect the scope of benefits covered by a typical employer plan and must include items and services in 10 general categories, including emergency services, hospitalization, ambulatory patient services, prescription drugs, pregnancy, maternity and newborn care, mental health and substance use disorder services, rehabilitative and habilitative services, laboratory services, preventive and wellness services and chronic disease management, and pediatric services.

The annual limits on total enrollee cost sharing for EHB for plan years beginning on or after Jan. 1, 2025, are $9,200 for self-only coverage and $18,400 for family coverage. With this in mind, employers should take the following steps:

Review the out-of-pocket maximum limits for the health plan to ensure they comply with the ACA’s limits for the 2025 plan year; and
Keep in mind that the out-of-pocket maximum limits for HDHPs compatible with HSAs must be lower than the ACA’s limits. For the 2025 plan year, the out-of-pocket maximum limits for HDHPs are $8,300 for self-only coverage and $16,600 for family coverage.

Preventive Care Benefits

The ACA requires non-grandfathered health plans and issuers to cover a set of recommended preventive services without imposing cost-sharing requirements, such as deductibles, copayments or coinsurance, when the services are provided by in-network providers. The recommended preventive care services covered by these requirements are:

Evidence-based items or services with an A or B rating in recommendations of the U.S. Preventive Services Task Force;
Immunizations recommended by the Advisory Committee on Immunization Practices for routine use in children, adolescents and adults;
Evidence-informed preventive care and screenings in guidelines supported by the Health Resources and Services Administration (HRSA) for infants, children and adolescents; and
Other evidence-informed preventive care and screenings in HRSA-supported guidelines for women.

Health plans and issuers are required to adjust their first-dollar coverage of preventive care services based on the latest preventive care recommendations. In general, coverage must be provided for a newly recommended preventive health service or item for plan years beginning on or after the one-year anniversary of when the recommendation was issued. For example, health plans and issuers must cover screenings for anxiety disorders in adults , including pregnant and postpartum patients, effective for plan years beginning on or after June 30, 2024 (e.g., the plan year beginning Jan. 1, 2025, for calendar-year plans). More information on the recommended preventive care services is available at www.HealthCare.gov .

Before the beginning of the 2025 plan year, employers should take the following step:

Confirm the health plan covers the latest recommended preventive care services without imposing any cost sharing when the care is provided by in-network providers.

Health FSA Contributions

The ACA imposes a dollar limit on employees’ pre-tax contributions to a health FSA. This limit is indexed each year for cost-of-living adjustments. An employer may set their own dollar limit on employees’ contributions to a health FSA as long as the employer’s limit does not exceed the ACA’s maximum limit in effect for the plan year. For plan years beginning in 2024, the health FSA limit is $3,200. The IRS has not yet released the health FSA limit for plan years beginning in 2025. Moving forward, employers with health FSAs should take these steps:

Monitor future developments for the release of the health FSA limit for 2025;
Once the IRS releases the health FSA limit, confirm that employees will not be allowed to make pre-tax contributions in excess of the limit for the 2025 plan year; and
Communicate the health FSA limit to employees as part of the open enrollment process.

HDHP and HSA Limits

The IRS limits for HSA contributions, HDHP minimum deductibles and HDHP maximum out-of-pocket expenses all increase for 2025. The HSA contribution limits will increase effective Jan. 1, 2025, while the HDHP cost-sharing limits will increase effective for plan years beginning on or after Jan. 1, 2025. Looking ahead, employers should take these steps:

Check whether HDHP cost-sharing limits need to be adjusted for the 2025 limits; and
Communicate HSA contribution limits for 2025 to employees as part of the enrollment process.

The following table contains the HDHP and HSA limits for 2025 compared to 2024. It also includes the catch-up contribution limit that applies to HSA-eligible individuals age 55 and older, which is not adjusted for inflation and stays the same from year to year.

HDHPs: Expiration of Design Options

To be eligible for HSA contributions for a month, an individual must be covered under an HDHP as of the first day of the month and have no other impermissible coverage. In general, except for preventive care benefits, no benefits can be paid by an HDHP until the minimum annual deductible has been satisfied. However, there are a few narrow exceptions to the minimum deductible requirement, including the following exceptions that are expiring:

For plan years ending after Dec. 31, 2024, an HDHP is no longer permitted to provide benefits for COVID-19 testing and treatment without a deductible (or with a deductible below the minimum deductible for an HDHP); and
For plan years beginning on or after Jan. 1, 2025, an HDHP is no longer permitted to provide benefits for telehealth or other remote care services before plan deductibles have been met.

Due to these changes, employers with HDHPs should take these steps for plan years beginning in 2025:

Confirm that HDHPs will not pay benefits for COVID-19 testing and treatment before the annual minimum deductible has been met;
Confirm that HDHPs will not pay benefits for telehealth or other remote care services (except for preventive care benefits) before the annual minimum deductible has been met; and
Notify plan participants of any changes for the 2025 plan year regarding COVID-19 testing and treatment and telehealth services through an updated SPD or SMM.

EBHRA Limit

An excepted benefit health reimbursement arrangement (EBHRA) is an employer-funded health care account that reimburses employees for their eligible medical expenses on a tax-free basis. Employers can use EBHRAs to supplement their traditional group health plan coverage and help employees with their out-of-pocket medical expenses, including deductible, copayment and coinsurance amounts. Employers of all sizes may offer EBHRAs. Although an employer must offer a traditional group health plan, employees are not required to enroll in the employer’s group coverage (or any other type of coverage) to be eligible for the EBHRA.

Only employers can contribute to HRAs, including EBHRAs. EBHRAs are subject to a maximum amount that may be made newly available for the plan year. This maximum amount is adjusted annually for inflation. For 2024 plan years, the contribution limit is $2,100. This limit increases to $2,150 for plan years beginning in 2025.

Employers that sponsor EBHRAs should take the following steps:

Decide how much will be contributed to the EBHRA for eligible employees for the 2025 plan year, up to a maximum of $2,150; and
Communicate the EHBRA’s annual benefit amount to employees as part of the open enrollment process.

Mental Health Parity – Required Comparative Analysis for NQTLs

The Mental Health Parity and Addiction Equity Act (MHPAEA) requires parity between a group health plan’s medical/surgical benefits and its mental health or substance use disorder (MH/SUD) benefits. These parity requirements apply to financial requirements and treatment limits for MH/SUD benefits. In addition, any nonquantitative treatment limitations (NQTLs) placed on MH/SUD benefits must comply with MHPAEA’s parity requirements. For example, NQTLs include prior authorization, step therapy protocols, network adequacy and medical necessity criteria.

MHPAEA requires health plans and issuers to conduct comparative analyses of the NQTLs used for medical/surgical benefits compared to MH/SUD benefits. This analysis must contain a detailed, written and reasoned explanation of the specific plan terms and practices at issue and include the basis for the plan’s or issuer’s conclusion that the NQTLs comply with MHPAEA. Plans and issuers must make their comparative analyses available to specific federal agencies or applicable state authorities upon request. In recent years, the U.S. Department of Labor (DOL) has made MHPAEA compliance a top enforcement priority, with a primary focus being MHPAEA’s parity requirements for NQTLs. Considering this information, employers should take the following step:

Reach out to health plan issuers (or third-party administrators) to confirm that comparative analyses of NQTLs will be updated, if necessary, for the plan year beginning in 2025.

Prescription Drug Benefits – Creditable Coverage Determination

The Inflation Reduction Act of 2022 (IRA) includes several cost-reduction provisions affecting Medicare Part D plans, which may impact the creditable coverage status of employer-sponsored prescription drug coverage beginning in 2025. For example, effective for 2025, Medicare enrollees’ out-of-pocket costs for prescription drugs will be capped at $2,000.

Employers that provide prescription drug coverage to individuals who are eligible for Medicare Part D must inform these individuals and the Centers for Medicare and Medicaid Services (CMS) whether their prescription drug coverage is creditable, meaning that the employer’s prescription drug coverage is at least as good as Medicare Part D coverage. These disclosures must be provided on an annual basis and at certain other designated times, including when there is a change to a prescription drug benefit’s creditable coverage status.

Previously, CMS stated that one of the methods for determining whether coverage is creditable (the “simplified determination” method) would no longer be valid as of calendar year 2025, given the significant changes made to Medicare Part D by the IRA. However, CMS subsequently decided that it will continue to permit the use of the simplified determination methodology, without modification, for calendar year 2025 for group health plan sponsors who are not applying for the retiree drug subsidy.

Due to these developments, employers should take the following steps:

Confirm whether their health plans’ prescription drug coverage for 2025 is creditable or noncreditable as soon as possible to prepare to send the appropriate Medicare Part D disclosure notices; and
Continue to utilize the simplified determination method for determining whether prescription drug coverage is creditable for 2025, if applicable.

Open Enrollment Notices

Employers who sponsor group health plans should provide certain benefits notices in connection with their plans’ open enrollment periods. Some of these notices must be provided at open enrollment time, such as the SBC. Other notices, such as the WHCRA notice, must be distributed annually. Although these annual notices may be provided at different times throughout the year, employers often choose to include them in their open enrollment materials for administrative convenience.

In addition, employers should review their open enrollment materials to confirm that they accurately reflect the terms and cost of coverage. In general, any plan design changes for 2025 should be communicated to plan participants either through an updated SPD or an SMM.

Summary of Benefits and Coverage

The ACA requires health plans and health insurance issuers to provide an SBC to applicants and enrollees each year at open enrollment or renewal time. Federal agencies have provided a template for the SBC, which health plans and issuers are required to use. To comply with the SBC requirements, employers should include an updated SBC with open enrollment materials.

Take note that the plan administrator is responsible for providing the SBC for self-funded plans. For insured plans, the issuer usually prepares the SBC. If the issuer prepares the SBC, an employer is not required to also prepare an SBC for the health plan, although they may need to distribute the SBC prepared by the issuer.

Medicare Part D Notices

Group health plan sponsors must provide a notice of creditable or noncreditable prescription drug coverage to Medicare Part D-eligible individuals covered by, or who apply for, prescription drug coverage under the health plan. This creditable coverage notice alerts individuals about whether their prescription drug coverage is at least as good as the Medicare Part D coverage. The notice generally must be provided at various times, including when an individual enrolls in the plan and each year before Oct. 15 (when the Medicare annual open enrollment period begins). Model notices are available on the Centers for Medicare and Medicaid Services’ website .

Annual CHIP Notices

Group health plans covering residents in a state that provides a premium subsidy to low-income children and their families to help pay for employer-sponsored coverage must send an annual CHIP notice about the available assistance to all employees residing in that state. The DOL has provided a model notice . Employers should confirm they are using the most recent model notice, as the DOL updates it regularly.

Initial COBRA Notices

COBRA applies to employers with 20 or more employees who sponsor group health plans. Group health plan administrators must provide an initial COBRA notice to new participants and certain dependents within 90 days after plan coverage begins. The initial COBRA notice may be incorporated into the plan’s SPD. A model initial COBRA notice is available from the DOL.

SPDs

Plan administrators must provide an SPD to new participants within 90 days after plan coverage begins. Any changes made to the plan should be reflected in an updated SPD booklet or described to participants through an SMM. Also, an updated SPD must be furnished every five years if changes are made to SPD information or the plan is amended. Otherwise, a new SPD must be provided every 10 years.

Notices of Patient Protections

Under the ACA, group health plans and issuers that require the designation of a participating primary care provider must permit each participant, beneficiary and enrollee to designate any available participating primary care provider (including a pediatrician for children). Additionally, plans and issuers that provide obstetrical/gynecological care and require a designation of a participating primary care provider may not require preauthorization or referral for such care. If a health plan requires participants to designate a participating primary care provider, the plan or issuer must provide a notice of these patient protections whenever the SPD or similar description of benefits is provided to a participant. If an employer’s plan is subject to this notice requirement, they should confirm that it is included in the plan’s open enrollment materials. This notice may be included in the plan’s SPD. Model language is available from the DOL.

Grandfathered Plan Notices

If an employer has a grandfathered plan, they should make sure to include information about the plan’s grandfathered status in plan materials describing the coverage under the plan, such as SPDs and open enrollment materials. Model language is available from the DOL.

Notices of HIPAA Special Enrollment Rights

At or before the time of enrollment, an employer’s group health plan must provide each eligible employee with a notice of their special enrollment rights under HIPAA. This notice may be included in the plan’s SPD.

HIPAA Privacy Notices

The HIPAA Privacy Rule requires covered entities (including group health plans and issuers) to provide a Notice of Privacy Practices (or Privacy Notice) to each individual who is the subject of protected health information (PHI). Health plans are required to send the Privacy Notice at certain times, including to new enrollees at the time of enrollment. Also, at least once every three years, health plans must either redistribute the Privacy Notice or notify participants that the Privacy Notice is available and explain how to obtain a copy.

Self-insured health plans must maintain and provide their own Privacy Notices. However, special rules apply for fully insured plans, where the health insurance issuer, not the plan itself, is primarily responsible for the Privacy Notice.

Special Rules for Fully Insured Plans

The sponsor of a fully insured health plan has limited responsibilities with respect to the Privacy Notice, including the following:

If the sponsor of a fully insured plan has access to PHI for plan administrative functions, they are required to maintain a Privacy Notice and provide the notice upon request; and
If the sponsor of a fully insured plan does not have access to PHI for plan administrative functions, they are not required to maintain or provide a Privacy Notice.

A plan sponsor’s access to enrollment information, summary health information and PHI that is released pursuant to a HIPAA authorization does not qualify as having access to PHI for plan administration purposes.

Model Privacy Notices are available through the U.S. Department of Health and Human Services.

WHCRA Notices

Plans and issuers must provide a notice of participants’ rights to mastectomy-related benefits under the WHCRA at the time of enrollment and on an annual basis. The DOL’s compliance assistance guide includes model language for this disclosure.

SARs

Plan administrators required to file Form 5500 must provide participants with a narrative summary of the information in Form 5500, called a summary annual report (SAR). Group health plans that are unfunded (that is, benefits are payable from the employer’s general assets and not through an insurance policy or trust) are not subject to the SAR requirement. The plan administrator generally must provide the SAR within nine months of the close of the plan year. If an extension of time to file Form 5500 is obtained, the plan administrator must furnish the SAR within two months after the close of the extension period. A model notice is available from the DOL.

Wellness Program Notices

Group health plans that include wellness programs may be required to provide certain notices regarding the program’s design. As a general rule, these notices should be provided when the wellness program is communicated to employees and before employees provide any health-related information or undergo medical examinations. These notices are required in the following situations:

HIPAA Wellness Program Notice —HIPAA imposes a notice requirement on health-contingent wellness programs offered under group health plans. Health-contingent wellness plans require individuals to satisfy standards related to health factors (e.g., not smoking) to obtain rewards. The notice must disclose the availability of a reasonable alternative standard to qualify for the reward (and, if applicable, the possibility of waiver of the otherwise applicable standard) in all plan materials describing the terms of a health-contingent wellness program. The DOL’s compliance assistance guide includes a model notice that can be used to satisfy this requirement.
Americans with Disabilities Act (ADA) Wellness Program Notice —Employers with 15 or more employees are subject to the ADA. Wellness programs that include health-related questions or medical exams must comply with the ADA’s requirements, including an employee notice requirement. Employers must give participating employees þ a notice that tells them what information will be collected as part of the wellness program, with whom it will be shared and for what purpose, as well as includes the limits on disclosure and the way information will be kept confidential. The U.S. Equal Employment Opportunity Commission has provided a sample notice to help employers comply with this ADA requirement.

ICHRA Notices

Employers may use individual coverage health reimbursement arrangements (ICHRAs) to reimburse their eligible employees for insurance policies purchased in the individual market or for Medicare premiums. Employers with ICHRAs must provide a notice to eligible participants about the ICHRA and its interaction with the ACA’s premium tax credit. In general, this notice must be provided at least 90 days before the beginning of each plan year. Employers may provide this notice at open enrollment time if it is at least 90 days prior to the beginning of the plan year. A model notice is available for employers to use to satisfy this notice requirement.

LINKS AND RESOURCES

Revenue Procedure 2024-25 , which includes the inflation-adjusted limits for health savings accounts (HSAs) and HDHPs for 2025
Model notices for group health plans, including the Women’s Health and Cancer Rights Act (WHCRA) notice
Model COBRA notices for group health plans

Stay Interview Best Practices for Employers

Wed, 31 Jul 2024 17:14:58 GMT

The Importance of Stay Interviews

Stay interviews aim to discover what makes an employee want to work—or stop working—for the organization and identify any aspects of the company that need to be addressed to make working there more attractive. Not only can stay interviews enlighten small businesses about issues before they manifest into employee departures, but they also help employees feel heard, showing them that their employer cares enough about retaining them to improve workplace operations.

Stay Interview Best Practices for Employers

Impactful stay interviews can help maximize employee satisfaction, engagement, and retention. Consider the following best practices for stay interviews:

Establish Clear Objectives: Before conducting stay interviews, employers should establish clear objectives and goals. It’s important to determine what information should be gathered from employees and how it will be used to improve engagement and retention strategies. Examples of clear objectives might include:
Identifying specific factors that contribute to employee job satisfaction and areas for improvement.
Understanding employee career aspirations and development needs to tailor growth opportunities.

Integrate Stay Interviews into Onboarding: Stay interviews aren’t just for the company’s tenured employees; they can be incorporated into the 30-, 60-, and 90-day milestones of employee onboarding. By gauging employee satisfaction early on, small businesses can proactively address any issues and make necessary adjustments.

Create a Safe and Confidential Environment: Employees should be assured that their feedback will be kept confidential and that there will be no negative repercussions for sharing their thoughts and concerns.

Train Interviewers: Ensure that managers and HR professionals conducting stay interviews are adequately trained in effective communication and active listening skills. This helps in building trust and encouraging honest feedback from employees.

Ask Open-ended Questions: Open-ended questions can prompt employees to freely share their thoughts, feelings, and experiences. Examples of open-ended questions include:
Are there any challenges or obstacles you’re currently facing in your role?
How can we better support your professional growth and development?
What would cause you to consider leaving the organization?

Identify Actionable Insights: After conducting stay interviews, feedback must be analyzed to identify common themes, trends, and actionable insights. This analysis can reveal underlying issues that need to be addressed to improve employee satisfaction and retention.

Follow Up and Track Progress: Following up with employees after stay interviews is crucial to communicate any actions taken based on their feedback and provide progress updates. This demonstrates that the organization values their input and is committed to making improvements.

Additional Tips for Navigating Stay Interviews

Navigating stay interviews effectively requires careful planning and execution. Here are some additional tips to enhance the stay interview process:

Schedule Regular Stay Interviews: Instead of waiting for an employee to reach a critical point, schedule stay interviews at regular intervals. This proactive approach helps in continuously monitoring employee satisfaction and addressing issues promptly.

Tailor Questions to Individual Roles: Customize the questions based on the specific roles and responsibilities of employees. This ensures that the feedback is relevant and provides deeper insights into role-specific challenges and opportunities.

Encourage Honest Feedback: Foster a culture where honest feedback is valued and appreciated. Encourage employees to share their genuine thoughts and feelings, even if they are critical, to gain a true understanding of their experiences.

Document and Share Success Stories: Share success stories where stay interviews have led to positive changes within the organization. This can motivate other employees to participate actively and provide valuable feedback.

Stay interviews represent a proactive approach to employee retention, as they allow small businesses to gain valuable insights into the factors influencing job satisfaction and commitment. By implementing best practices, organizations can strengthen employee engagement, improve retention rates, and foster a positive workplace culture.

Navigating Mental Health Care in the Digital Age

Fri, 26 Jul 2024 16:47:20 GMT

In today's digital era, technology's influence on mental health care is rapidly evolving. Two notable trends are the use of Artificial Intelligence (AI) and social media platforms. While these technologies offer potential benefits, they also present significant risks. This blog explores the impact of AI on mental health care and the dangers of self-diagnosis through social media.

The Influence of AI on Mental Health Care

Artificial intelligence (AI) in mental health is still relatively new but holds promise for future applications. Some individuals are turning to AI platforms, such as ChatGPT, for mental health support. However, this behavior can be risky since AI lacks the qualifications of a mental health professional.

Potential Benefits of AI in Mental Health Care:

Increased accessibility
Boosted mental health literacy
Preserved anonymity

While AI has great potential, its development is not yet advanced enough for mental health-related topics. It's crucial to recognize the pitfalls, which include:

Pitfalls of Using AI for Mental Health:

False information
Misinterpretation of information
Ethical concerns (e.g., data privacy and bias)

Social Media and the Risks of Self-diagnosis

Increasingly, individuals use social media platforms like Instagram and TikTok to self-diagnose mental health conditions. Although raising awareness and understanding mental health issues is beneficial, certain exposures to information on these platforms can be harmful. Accurate diagnosis is essential for effective mental health treatment and recovery.

Potential Benefits of Self-diagnosis Through Social Media:

Taking responsibility for mental health
Learning about mental health conditions
Destigmatizing mental health issues

However, there are significant risks associated with self-diagnosing based on social media content:

Risks of Self-diagnosis Through Social Media:

Spread of misinformation
Misinterpretation of symptoms
Inaccurate self-diagnosis leading to improper focus on diagnostic labels

Tips for Navigating AI and Social Media for Mental Health

Navigating the digital landscape for mental health care requires a balanced and informed approach. Here are some tips to help you make the most of AI and social media while minimizing risks:

1. Verify Sources: Always check the credibility of the information and the qualifications of the person or entity providing it. Trust content from verified health organizations and professionals.

2. Seek Professional Guidance: Use AI and social media as supplementary tools, not replacements for professional mental health care. Consult with a qualified mental health professional for accurate diagnosis and treatment plans.

3. Be Critical of Information: Understand that not all information online is accurate or applicable to everyone. Be skeptical of sweeping generalizations and anecdotal evidence.

4. Educate Yourself Continuously: Stay informed about the latest developments in mental health care and digital health technologies. This can help you make better decisions and recognize when to seek professional help.

5. Protect Your Privacy: Be mindful of sharing personal health information online. Ensure that any AI platforms or social media services you use have robust privacy policies to protect your data.

6. Balance Digital and Real-life Interactions: While digital tools can be helpful, they should not replace face-to-face interactions and support from friends, family, and healthcare providers.

Takeaway

Although social media can increase mental health literacy and help destigmatize mental illnesses, it is not a replacement for professional health care. AI also holds potential but requires further development and ethical considerations. For accurate diagnosis and effective treatment, contact a qualified medical provider for personalized guidance.

By understanding both the benefits and risks of these digital tools, we can better navigate the complex landscape of mental health care in the digital age.

Recent Case Serves as Reminder That Employees Are Entitled to Certain Benefit-related Documents

Fri, 26 Jul 2024 15:37:57 GMT

The U.S. District Court for the District of Montana recently awarded over $32,000 in penalties against an employer’s self-insured health plan and its third-party administrator (TPA) for failing to provide information to a plan participant upon request. Employees should be aware of their benefits-related rights and understand how to obtain the information they need.

What Are ERISA Requirements?

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for employee benefit plans maintained by private-sector employers, requiring employers to automatically provide employees with certain benefits-related documents, such as a summary plan description (SPD).

ERISA also requires employers to provide certain documents upon written request by a participant or a beneficiary. These documents include the latest SPD, Form 5500, bargaining agreement, trust agreement, and any contract or other instrument under which the plan is established or operated.

What Happened in Court?

In this most recent case, a plan participant and his daughter sued their self-insured health plan and its TPA after the plan denied coverage for the daughter’s mental health treatments. In part, the plaintiffs alleged that the plan violated the federal Mental Health Parity and Addiction Equity Act (MHPAEA) by applying a more restrictive limitation on mental health treatment than on treatment for medical and surgical issues. The plaintiffs requested a copy of documents related to the plan’s compliance with MHPAEA, including information regarding the plan’s application of nonquantitative treatment limitations.

The court concluded that the requested MHPAEA-related documents fell under ERISA’s disclosure requirement, which means that the defendant’s failure to respond triggered penalties. The court awarded penalties of $110 per day for 294 days, from 30 days after the plaintiffs’ written request through the date the lawsuit was filed, totaling $32,340.

What Does This Mean?

ERISA is meant to help employee benefits plan participants understand how their plan works and their eligibility for benefits. As such, employees are entitled to certain benefit-related documents, and upon request, they must be provided in a timely manner.

Talk to your manager or HR representative if you have any questions or concerns about employee benefits.

7 HR Midyear Trends to Follow

Fri, 19 Jul 2024 17:14:42 GMT

By staying current on trends, HR professionals can plan for changing compliance requirements, navigate new technologies and adapt to employee needs. The middle of the year is a great time to evaluate HR progress, recalibrate any efforts to close the year strong and inform forward-thinking strategies to maintain a competitive edge moving into 2025.

This blog article highlights seven HR trends to follow during the second half of 2024.

1. Employee Attraction

During the time of record-high labor figures in 2021 and 2022, workers used their leverage to demand higher wages, better benefits and more career development opportunities and were willing to change employers to do so. Today, labor metrics show that the worker-friendly employment landscape has recovered to give more leverage back to employers. However, attracting employees can still be difficult, particularly for industries with high turnover rates and roles that require niche skill sets.

2. Pay Transparency

Although there is no comprehensive federal pay transparency law in the United States, around a quarter of all workers are covered under pay transparency laws. The number of employees covered by such laws continues to grow each year, with more laws taking effect in 2025. Not all organizations are covered by these rules, but more employers are pursuing transparent job postings to stay ahead of requirements and win over workers.

3. Artificial Intelligence (AI)

The use of AI has gained even more traction this year. Research from Microsoft published in May 2024 found that the use of generative AI had doubled in just the most recent six months. Today, around 75% of global knowledge workers use AI. Lingering concerns remain as more organizations implement AI into their day-to-day operations and equip workers to use tools to enhance their job performance.

4. Well-being and Productivity

One of the most notable proactive wellness trends is how employers tie this concept to employee productivity. Data consistently shows that employees with a poor sense of well-being are less productive. Research from Gallup found that $322 billion in turnover and lost productivity costs globally are due to employee burnout. Other factors, such as poor physical health, can drive workers to miss more work.

5. Learning and Development (L&D)

More employers are concerned that they cannot train their employees fast enough to keep up with technology development, so they are shifting their core L&D focus to future-proofing. The current workplace requires frequent learning and relearning of new skills. To ensure workers’ skills keep up with workplace demands, employers are upskilling technology abilities and developing transferrable soft skills.

6. Voluntary Benefits

According to Zywave’s 2023-24 Attraction and Retention Benchmarking Overview, 69% of survey respondents identified offering competitive health care benefits amid rising costs as one of their organization’s top three most significant attraction and retention challenges. Almost 16% of respondents plan to expand voluntary benefits options in the next year, and most respondents (64.75%) offer voluntary benefits as part of a strategy to improve employee attraction and retention.

7. Election Season

Federal, state and local elections are scheduled for Tuesday, Nov. 5. During recent election cycles, politically charged environments have created contention in the workplace (e.g., inappropriate workplace behavior, social media activism, free speech disputes and dress code controversies). Employers in states without formal voting requirements often offer lenient voter leave options. A well-planned approach can help deter inappropriate behavior and use the election cycle to engage employees.

Contact Simco today for more information or for your copy of the 2024 Midyear HR Trends to Monitor.

Why Aren't U.S. Workers Using Their PTO to the Fullest?

Sat, 13 Jul 2024 23:20:46 GMT

A new Harris Poll survey found that most employed Americans are satisfied with their company’s paid time off (PTO) policy; however, 3 in 4 said they didn’t use the maximum PTO permitted by their employer.

According to the survey, most U.S. workers get between 11 and 30 PTO days yearly. Last year, the average employed American took 15 paid days off despite many being allowed more. The top use cases were vacation and health and wellness (e.g., sick days and doctor appointments). Consider these additional key findings from the survey:

Most Americans (83%) are satisfied with their company’s PTO policy.

Over half (60%) are given more than 10 PTO days annually.

An additional 7% have an “unlimited vacation policy.” Nearly one-third (32%) of American workers indicate that “unlimited vacation policy” means more than 30 days off.

Most (78%) do not use the maximum PTO allowed by their employer. The average worker took 15 paid days off last year despite half (49%) being allowed more than that by their employer.

The top barriers preventing workers from taking more time off are “pressure to always be available and responsive to demands” (31%) and “heavy workload” (30%).

Even when workers took time off, 60% reported struggling to fully disconnect from work. As such, 86% checked emails from their boss, and 56% took work-related calls during time off. Similarly, nearly half of the workers said they felt guilty about taking the time off in the first place. Specifically, Millennials and Generation Z are nervous about requesting PTO due to employer reactions and career implications. As a result, many millennials admitted to workarounds, such as moving their mouse to maintain online messaging status or taking time off without telling their manager.

According to the Harris Poll survey, 76% of workers say,

“I wish my workplace culture placed a stronger emphasis on the value of taking regular breaks and utilizing PTO.”

Employer Takeaway

Despite more employers expanding their PTO policies, workplace culture and workload pressures tend to dictate working Americans’ benefit usage. Furthermore, many workers still check their email or feel guilty during their time off, which can cause them not to recharge as intended. To combat these behaviors and the potential for burnout, employers can foster a company culture focused on taking PTO, not just the policy itself. Today’s workers find it increasingly challenging to balance their work commitments and personal time off, but employers may choose to work on building a culture that supports and encourages breaks.

Employers should continue to monitor trends to make the right employee benefits decisions for their respective organizations and employees.

Contact Simco today for more information.

U.S. Supreme Court Overrules Chevron Deference

Mon, 01 Jul 2024 16:35:12 GMT

On June 28, 2024, the U.S. Supreme Court issued a decision in Loper Bright Enterprises v. Raimondo and Relentless Inc. v. Department of Commerce . The Court overruled its 1984 decision in Chevron, U.S.A. Inc. v. Natural Resources Defense Council Inc. , which held that courts should defer to federal agencies to interpret ambiguities and gaps in the laws that the agencies implement (known as Chevron deference).

Background

Congress has the authority to pass laws that govern employers, and federal agencies have the authority to enforce those laws. To fill in any gaps or to remedy any ambiguities, federal agencies may issue more detailed guidance on how the laws should be interpreted and applied. For example, agencies may publish informal guidance, issue opinions or publish formal regulations. Under the doctrine of Chevron deference, courts are directed to defer to such agency guidance where the statute is ambiguous and the agency’s interpretation is reasonable.

In Loper and Relentless , the plaintiffs argued that Chevron should be overruled. The plaintiffs contended that courts should have the authority to interpret ambiguous laws and should have no obligation to adhere to federal agency guidance.

Supreme Court Ruling

The Supreme Court overruled Chevron deference in a 6-3 decision. In its opinion, the Supreme Court held that the Administrative Procedure Act requires courts to exercise their independent judgment in interpreting the law, and consequently, “courts may not defer to an agency interpretation of the law simply because the statute is ambiguous.” However, the Supreme Court noted that the holdings of prior cases that relied on Chevron deference remain lawful and may not be overturned solely because they relied on Chevron .

Impact on Employers

Chevron deference has had a meaningful influence on the interpretation and enforcement of employment laws. Federal employment agencies, including the U.S. Equal Employment Opportunity Commission, the Occupational Health and Safety Administration, the U.S. Department of Labor (DOL) and the National Labor Relations Board, have relied on Chevron deference in issuing and defending agency interpretations.

In light of the Supreme Court’s ruling, federal agencies will not be able to rely on Chevron deference in existing litigation, including lawsuits that have been filed to challenge the DOL’s independent contractor and overtime rules, and may be subject to additional legal challenges regarding existing rules. Federal agencies may also issue fewer regulations and take more moderate positions in the regulations they issue, and they may face greater difficulty in addressing policy issues.

Building a Successful Learning and Development Program

Mon, 01 Jul 2024 00:35:56 GMT

In today’s fast-paced and ever-changing workplaces, employee retention is at the top of many employers’ minds. As such, savvy employers are offering continuous learning and development (L&D) opportunities to make their organizations attractive places to work and stay. Employers who invest in robust L&D programs not only enhance their workforce’s skills and knowledge but may also boost employee engagement, retention and overall organizational performance.

This article explains key elements of an L&D program, highlights common pitfalls to avoid and outlines best practices for developing a sustainable program.

Defining a Successful Program

A successful L&D program aligns with the organization’s strategic goals and addresses the specific needs of its employees. It is comprehensive, covering a range of learning styles and methods to ensure inclusivity and effectiveness. With this in mind, here are the key elements of L&D programs:

Business goal alignment —An L&D program should support the company’s mission, vision and strategic objectives. This alignment ensures that the skills and knowledge gained through this program directly contribute to the organization’s success.

Needs assessment —In general, employers pursue L&D to upskill employees, address skills gaps and labor shortages, develop talent for highly skilled positions or leadership, and retain motivated employees seeking career growth. Employers should conduct a thorough analysis to identify the skills and knowledge gaps within the organization. Such assessment should involve input from various stakeholders, including employees, managers and executives.

Diverse learning methods —It’s important to incorporate a mix of learning formats, such as career development plans, e-learning, workshops, on-the-job training, mentoring and coaching. Diversity in learning methods caters to different employee learning preferences and needs and helps maintain engagement.

Measurable outcomes —As with any workplace initiative, it’s critical to establish clear, measurable goals for an L&D program. Metrics such as employee performance improvements, promotion rates and retention rates can help gauge a program’s effectiveness.

Continuous improvement —L&D is not a “one-and-done” type of effort. To ensure a program remains relevant and effective, employers should regularly review and update their programs based on feedback and changing organizational needs.

Common L&D Mistakes

Despite an organization’s best intentions, some mistakes can hinder the success of an L&D program. Here are some common pitfalls to avoid:

Not aligning with business goals —An L&D program that does not align with the organization’s objectives can result in wasted resources and minimal impact on performance. Employers should always ensure that their programs support the broader strategic goals.

Using a one-size-fits-all approach —A lack of personalization can lead to disengagement, so avoid using a uniform approach for all employees. Individual learning needs and preferences vary, and programs should reflect that.

Neglecting feedback —Failing to gather and act on feedback from participants can prevent a program from evolving and improving. Employers should regularly solicit employee feedback to make necessary adjustments.

Ignoring the importance of soft skills —While technical skills are important, soft skills (e.g., communication, resilience, accountability and problem-solving) are equally critical. Impactful L&D programs address both hard and soft skills.

Evaluating insufficiently —Without proper evaluation, it’s challenging to measure the effectiveness of an L&D program. Robust evaluation methods—such as employee engagement surveys, manager and employee feedback, and key performance indicators—can assess a program’s impact and identify areas for improvement.

L&D Best Practices for Employers

Implementing a successful L&D program requires careful planning and execution from organizations. Best practices for employers to consider include the following:

Foster a learning culture. Employers should encourage a culture where learning is valued and supported at all levels of the organization. This can be achieved by promoting sustained learning and providing employees with the necessary resources and time to engage in L&D activities.

Leverage technology. Learning management systems (or LMSs) and other digital tools can help deliver and manage training programs. Technology can also facilitate personalized learning experiences and provide valuable data for measuring program effectiveness.

Engage leadership. Company leaders and managers should be actively involved in the L&D program; their support and participation can drive employee engagement and demonstrate the importance of continuous development.

Personalize programs to individual needs. It’s critical to customize learning paths based on individual employees’ roles, career aspirations and learning styles. Personalized learning experiences can significantly enhance motivation and retention.

Promote collaboration. Employers can encourage collaborative learning through group projects, peer mentoring and team-based training sessions. Collaboration fosters a sense of community and allows employees to learn from each other’s experiences.

Summary

Employers of all sizes are building L&D programs, but not all programs are alike. Establishing a successful L&D program is a strategic investment that can yield significant returns for employers and enhance their workforce’s capabilities and success. As the business landscape evolves, a commitment to ongoing L&D will remain a critical factor in maintaining a competitive edge in the race for top talent.

How Noncompete Agreements Impact Hiring

Fri, 28 Jun 2024 21:13:47 GMT

Noncompete agreements are often viewed as a double-edged sword in hiring and employee management. While they may help safeguard proprietary and confidential information, they can pose hiring challenges.

As such, employers must carefully navigate the complexities of noncompete clauses, balancing their protective benefits with the need to maintain a motivated and mobile workforce. As regulatory landscapes evolve, companies may need to reevaluate their reliance on noncompete agreements and explore alternative strategies for safeguarding their competitive interests. This article explores noncompete agreements, their impact on employers and considerations when drafting them.

Overview of Noncompete Agreements

A noncompete agreement, also known as a restrictive covenant agreement, is a contractual term between an employer and a worker. It blocks the employee from working for a competing employer or starting a competing business, typically within a certain geographic area and period of time after their employment ends. These agreements can protect companies from losing valuable employees and confidential information to competitors and help maintain competitive advantages.

Noncompete agreements are more prevalent in industries such as technology, sales and health care, where sensitive information and specialized skills are crucial. However, enforceability varies by jurisdiction.

Noncompete Bans

The enforceability of a noncompete agreement is generally determined by state and local legislatures and courts. Some states impose strict limitations or outright bans on noncompete clauses.

On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a final rule prohibiting employers from entering into or enforcing noncompete clauses with most employees. Scheduled to take effect on Sept. 4, 2024, the final rule applies to noncompete agreements with all current and former workers, whether full-time or part-time, including but not limited to employees, independent contractors, interns, externs and apprentices. However, employers should note that the FTC ban will only prohibit post-employment noncompetes. Employers may still restrict current employees from engaging in competitive activities.

The FTC stated that it aims to promote competition by protecting workers' freedom to change jobs, increasing innovation and fostering new business formation.

The Hiring Impact of Noncompetes

The labor market likely will continue to be competitive. Without a noncompete, workers have more freedom to move to another company in the same industry without legal repercussions. As a result, the fight for talent could get even tougher.

As with any workplace decision, using noncompete agreements comes with advantages and drawbacks. Consider the following pros of noncompetes as they relate to employee attraction and retention:

Increased employee retention —Noncompetes discourage employees from leaving the organization and working for competitors, which can result in lower turnover rates. Organizations invest heavily in their workers, including onboarding, learning and professional development resources.

Maintained competitive advantage —Noncompetes aim to protect sensitive business information, including trade secrets and customer base. Organizational success will likely be achieved by safeguarding company information and relationships that differentiate them from the competition. As such, top talent wants to work for a leading company.

Conversely, here are some talent-related cons of noncompetes for companies to consider:

Deterrent to candidates —Job candidates may have concerns about the necessity of noncompetes, causing them to remove themselves from consideration or reject offers.

Increased legal liability and costs —Noncompetes are employment contracts with complex rules. Organizations that impose unfair restrictions could face employee lawsuits. Additionally, it can be costly for employers to enforce such agreements. Employee lawsuits also have the potential to damage the employer’s reputation, impacting attraction and retention.

Employer Considerations

First, employers should consider whether a noncompete agreement is legally enforceable in their state. Legal counsel can advise employers on how enforceable a noncompete agreement would be in the company’s location and industry.

Employers can also assess any industry-specific concerns. For example, companies with patented technologies or workers in sales roles may use noncompete agreements. Organizations can also research whether industry competitors require noncompetes with their employees to strengthen attraction and retention efforts. It can be beneficial to remain consistent with the industry, which levels the playing field when competing for talent.

Aside from legality, employers can also consider if noncompete agreements are fair and reasonable to departing employees. When employees who have signed a noncompete leave the company for another job, it’s important for the agreement not to hinder their ability to make a living. Employees may take a new job for many reasons, such as a career progression the current employer couldn’t offer, greater compensation and a more suitable location. Employers should review the terms of their noncompetes to ensure fairness even if the employee is moving to a competitor.

Lastly, being upfront about whether an organization requires new hires to sign noncompete agreements is important. Include that information in job postings or communicate it immediately with candidates so the clause doesn’t become an issue later in the interview or hiring process. Companies may lose good candidates due to noncompetes, but it’s better to have the conversation early on to avoid wasting the time of candidates and recruiting teams. Employers may also keep candidates formerly employed by competitors in the pipeline and reconnect with them after their noncompete has expired.

Summary

Employers need to take many considerations into account before implementing a noncompete agreement while also staying up to date on the latest rules and laws. Furthermore, since noncompete agreements are often the subject of litigation, employers should consult their legal counsel before making any decisions.

Contact Simco for more workplace guidance.

Over 80% of Employers Will Add or Improve Benefits in the Next Year

Thu, 27 Jun 2024 13:38:32 GMT

A new report by health care benefits company Lively found that 81% of organizations plan to add or improve employee benefits in the next year to better recruit and retain employees. Furthermore, the report showed that employee experience, feedback and ease of use matter the most when benefits leaders decide to select or renew with benefits providers.

Lively’s report gathered employee benefits data and insights from 250 U.S.-based HR and benefits decision-makers. Consider these additional key takeaways from the 2024 report:

Flexible benefit offerings are on the rise. One in 4 organizations plan to add wellness benefits, bonuses and emergency savings accounts in the next year. Furthermore, 1 in 5 companies plan to add pet insurance, professional development, paid time off and lifestyle spending accounts.

Employee input is the most trusted source of information about benefits. Employee feedback and complaints are the top reasons, rather than cost, that benefits leaders renew or switch providers.

Employee experience with benefits drives benefits leaders’ decision-making. Employees’ ease of use is the most important factor in choosing a benefits provider, but providers often fall short.

The report revealed that the biggest reason for adding or improving benefits is to attract and retain employees, with employee demand also figuring heavily into benefits leaders’ decision-making.

“Employee benefits are a critical decision for companies and impact their goals and bottom line. They go far beyond health insurance, as the right package of flexible benefits enables employees to afford everyday expenses, plan for the future and counter financial stress.”

- Alex Cyriac, co-founder and CEO of Lively

Employer Takeaways

Although many companies’ budgets have suffered in the past couple of years, employers need to be more strategic about their benefits offerings now than ever. Flexible benefits that are easy to use and meet workers’ needs, such as health savings and lifestyle spending accounts, can help improve employee recruitment, satisfaction and retention.

Employers should continue to monitor benefits trends, employee utilization and spending. Contact Simco for more resources.

Tips for Retaining Employees in 2024

Sun, 23 Jun 2024 00:25:31 GMT

Around 27% of U.S. workers quit their jobs in 2023, which, according to a common turnover calculation, cost employers nearly a trillion dollars to replace. Unfortunately, turnover is expected to climb this year, and labor experts predict another form of the “Great Resignation” to take place as workers choose to leave their jobs. Employee retention remains a critical challenge this year for employers across industries. A LinkedIn survey found that 85% of workers plan to look for a new role in 2024, which is almost a 20% jump from the previous year. The trend particularly applies to younger generations, including Generation Z, millennials and Generation X.

While today’s workers see both the possibilities and risks of job or career changes, many are choosing to explore new opportunities and leave their current employers. This article outlines tips for employers on employee retention.

Reasons Why Employees are Quitting

In the past few years, many workers have joined the mass exodus from the workplace. In general, workers are leaving employers due to the following:

Inadequate salaries
Limited career advancement
Work-life imbalance
Health and family issues
General unhappiness with management or the company

Employees are taking more ownership of their happiness, finding the job that’s the best fit for them while still fulfilling other personal responsibilities.

Retention Best Practices for Employers

As the job market evolves and employee expectations shift, companies must adopt innovative strategies to keep their talent engaged and satisfied. Consider these strategies for retaining employees:

Foster a positive work culture. A positive workplace culture is foundational to employee retention, regardless of the current labor market. Employees are more likely to stay with a company where they feel valued, respected and part of a cohesive team. Foster an inclusive environment that celebrates each employee and promotes collaboration. Employers can regularly recognize and reward employee achievements to boost morale and create a sense of belonging.

Offer competitive compensation and benefits. In 2024, competitive compensation goes beyond salary. Employers must provide comprehensive benefits packages that address the needs of their workforce. This may include health and wellness programs, retirement plans, paid time off (PTO) and flexible working arrangements.

Provide career development opportunities. Employees are likelier to stay with a company that invests in their professional growth. Employers can provide opportunities for skill development, training, career advancement, mentoring and career pathing.

Embrace flexibility. Flexibility has become a key factor in employee retention. Working remotely or having flexible hours can significantly enhance job satisfaction. Hybrid and remote work models allow employees to effectively balance work and personal life.

Promote work-life balance. Promoting work-life balance is essential for preventing burnout and maintaining employee well-being. Encourage employees to take breaks, use their PTO and disconnect after work hours.

Cultivate strong leadership. Effective leadership is crucial for employee retention. Leaders should be approachable, empathetic and transparent. Leadership training can help ensure managers are equipped with the skills to support their teams effectively. Authentic and strong leaders can inspire and motivate employees, fostering loyalty and commitment to the organization.

Encourage open communication. Open and transparent communication is vital for a healthy workplace. Encourage employees to share their ideas, concerns and feedback without fear of retribution. Transparency builds trust and can prevent misunderstandings and conflicts.

Solicit and act on employee feedback. Regularly soliciting employee feedback can help identify potential issues before they escalate. Employers can gather input from exit interviews, surveys, suggestion boxes and oneon-one meetings. More importantly, when organizations act on feedback, it demonstrates to employees that their voices are heard and valued. This transparency can significantly improve job satisfaction and retention.

Enhance employee engagement. Engaged employees are more likely to stay with their employers. Enhance engagement by involving employees in decision-making processes, providing meaningful work and creating opportunities for social interaction. Employers can organize team-building activities and company events to strengthen relationships and foster a sense of community.

Recognize and reward performance. Regular recognition can significantly boost employee morale and retention. Employers may consider a recognition program that acknowledges both individual and team achievements. Various forms of recognition exist, such as bonuses, awards, public acknowledgment and career advancement opportunities. Regardless of the reward, consistent appreciation can reinforce positive behaviors and commitment.

Invest in employee well-being. A healthy workforce is more productive and loyal. Furthermore, employee well-being is a holistic concept that includes physical, mental and emotional health. More than ever before, today’s workers need resources and programs that support overall well-being, such as mental health days, counseling services, fitness programs and stress management workshops.

To be impactful, employers should also regularly monitor the effectiveness of their retention strategies and be prepared to adapt as needed.

Summary

Retaining employees in 2024 requires a multifaceted approach that addresses workers’ diverse needs and expectations. As more workers consider exploring new job opportunities, savvy employers can implement various strategies to not only enhance employee rete ntion but also contribute to a more engaged and productive workforce.

Employers should continue to monitor trends and consider strategies to retain and attract talent in response to the changing dynamics of the workforce. Contact Simco today for more workplace guidance.

PCORI Fees Due July 31, 2024

Mon, 03 Jun 2024 14:32:45 GMT

The Affordable Care Act (ACA) requires health insurance issuers and self-insured plan sponsors to pay Patient-Centered Outcomes Research Institute fees (PCORI fees). The fees are reported and paid annually using IRS Form 720 , the Quarterly Federal Excise Tax Return.

Form 720 and full payment of the PCORI fees are due by July 31 of each year, and generally covers plan years that end during the preceding calendar year. For plan years ending in 2023, the PCORI fees are due by July 31, 2024.

Overview of the PCORI Fees

The PCORI fees were scheduled to expire for plan years ending on or after Oct. 1, 2019. However, a federal spending bill enacted at the end of 2019 extended the PCORI fees for an additional 10 years. As a result, these fees will continue to apply for the 2020-2029 fiscal years.

Calculating the PCORI Fee Payment

In general, the PCORI fees are assessed, collected and enforced like taxes. The PCORI fee is imposed on an issuer of a “specified health insurance policy” and a plan sponsor of an “applicable self-insured health plan” based on the average number of lives covered under the plan. Final rules outline a number of alternatives for issuers and plan sponsors to determine the average number of covered lives.

Using Part II, Number 133 of Form 720, issuers and plan sponsors report the average number of lives covered under the plan separately for specified health insurance policies and applicable self-insured health plans. That number is then multiplied by the applicable rate for that tax year ( $3.00 for plan years ending on or after Oct. 1, 2022, and before Oct. 1, 2023, or $3.22 for plan years ending on or after Oct. 1, 2023, and before Oct. 1, 2024). The fees for specified health insurance policies and applicable self-insured health plans are then combined to equal the total tax owed.

Action Steps

To assess their obligations, employers should:

Determine which plans are subject to the PCORI fees;
Assess plan funding status (insured versus self-insured) to determine whether the issuer or the employer is responsible for the fees; and
For self-insured plans, select an approach for calculating average covered lives.

The IRS provides helpful resources, including a chart on how the fees apply to specific types of health coverage or arrangements.

Important Updates to New York State and NYC Labor Law Postings

Mon, 03 Jun 2024 00:49:39 GMT

Keeping up with labor law changes is crucial for employers to ensure compliance and protect employee rights. Recently, both New York State and New York City have introduced significant updates to their labor law postings. These changes reflect new protections and requirements that all employers must adhere to. Here’s a breakdown of the latest updates.

New York & New York City Labor Law Posting Changes

New York State Change

New York has released an updated Fair Employment / Discrimination required notice. The notice now includes citizenship or immigration status as a new protected category, prohibiting employers from discriminating on these grounds. Additionally, the update extends the statute of limitations for discrimination claims under the New York State Human Rights Law from one year to three years.

New York City Change

New York City has introduced the Workers' Bill of Rights required notice. This notice serves as a gateway to a comprehensive guide to rights in the workplace in New York City. Employers must both post and give each employee a copy of this notice. Additionally, the poster must be made available on any online platform used to communicate with employees.

Staying informed about these changes is vital for maintaining compliance and fostering a fair workplace. The updated New York and New York City labor posters are now available, ensuring that your business meets the latest legal requirements. For further details and to access the new posters, contact Simco.

HSA/HDHP Limits Will Increase for 2025

Sun, 02 Jun 2024 18:50:18 GMT

On May 9, 2024, the IRS released Revenue Procedure 2024-25 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2025. The IRS is required to publish these limits by June 1 of each year.

These limits include the following:

The maximum HSA contribution limit;
The minimum deductible amount for HDHPs; and
The maximum out-of-pocket expense limit for HDHPs.

These limits vary based on whether an individual has self-only or family coverage under an HDHP. Eligible individuals with self-only HDHP coverage will be able to contribute $4,300 to their HSAs for 2025, up from $4,150 for 2024. Eligible individuals with family HDHP coverage will be able to contribute $8,550 to their HSAs for 2025, up from $8,300 for 2024. Individuals age 55 and older may make an additional $1,000 “catch-up” contribution to their HSAs.

The minimum deductible amount for HDHPs increases to $1,650 for self- only coverage and $3,300 for family coverage for 2025 (up from $1,600 for self-only coverage and $3,200 for family coverage for 2024). The HDHP maximum out-of-pocket expense limit increases to $8,300 for self-only coverage and $16,600 for family coverage for 2025 (up from $8,050 for self-only coverage and $16,100 for family coverage for 2024).

Action Steps

Employers sponsoring HDHPs should review their plan’s cost-sharing limits (i.e., the minimum deductible amount and maximum out-of-pocket expense limit) when preparing for the plan year beginning in 2025. Also, employers allowing employees to make pre-tax HSA contributions should update their plan communications with the increased contribution limits.

HSA/HDHP Limits

The following chart shows the HSA and HDHP limits for 2025 as compared to 2024. It also includes the catch-up contribution limit that applies to HSA-eligible individuals age 55 and older, which is not adjusted for inflation and stays the same from year to year.

EEOC Releases Workplace Guidance to Prevent Harassment

Wed, 22 May 2024 14:44:12 GMT

On April 29, 2024, the U.S. Equal Employment Opportunity Commission (EEOC) published its final guidance on harassment in the workplace. The guidance explains how the EEOC may enforce equal employment opportunity (EEO) laws against an employer when workplace harassment is alleged or suspected.

Background

The EEO laws are a collection of federal laws that prohibit covered employers from discriminating against or harassing individuals based on certain characteristics. These characteristics, also known as protected traits, include race, color, religion, national origin, sex (including sexual orientation, gender identity and pregnancy, childbirth, or related medical conditions), disability, age (40 and older) and genetic information (including family medical history).

Between 1987 and 1999, the EEOC issued several documents designed to guide agency staff members who investigate claims of harassment under EEO laws. The agency issued proposed enforcement guidance on these topics on Oct. 2, 2023. This final guidance consolidates and replaces the earlier documents.

Final Guidance

In its final guidance, the EEOC provides several updated examples to reflect a wide range of modern scenarios and address emerging issues, such as how social media posting and other online content may contribute to a hostile work environment. It also incorporates current case law, including the U.S. Supreme Court’s 2020 decision in Bostock v. Clayton County, that discrimination on the basis of sexual orientation or gender identity constitutes sex discrimination in violation of Title VII of the Civil Rights Act of 1964 (one of the EEO laws).

The final guidance focuses on three main considerations to analyze in any workplace harassment claim:

Whether the conduct is based on the individual’s legally protected trait;
Whether the conduct resulted in a hostile work environment or explicit change to the terms or conditions of employment; and
Whether there is any legal basis for holding the employer liable.

The guidance explains that an employer may be liable for workplace harassment under several legal standards that often depend on the harasser’s relationship with the employer. The guidance also describes preventive and corrective actions an employer may take to help establish defenses against liability for workplace harassment.

Employer Takeaways

Although the final guidance is not legally binding, it provides insight into how the EEOC will investigate harassment claims. The EEOC also identifies a number of steps employers can take to prevent harassment, such as:

Establishing a clear, easy-to-understand anti-harassment policy;
Having a safe and effective procedure that employees can use to report harassment, including having more than one option for reporting;
Providing recurring training to all employees (including supervisors and managers) about the company’s anti-harassment policy and complaint process; and
Taking steps to ensure the anti-harassment policy is being followed and the complaint process is working.

Employers should consider reviewing and familiarizing themselves with the updated guidance. For additional information, employers may review other EEOC resources regarding workplace harassment, including:

EEOC Harassment Home Page
EEOC Sexual Harassment Home Page
Summary of Key Provisions : EEOC Enforcement Guidance on Harassment in the Workplace
Questions and Answers for Employees : Harassment at Work

DOL Issues Guidance on AI-related Wage and Hour Risks

Sat, 11 May 2024 00:51:01 GMT

On April 29, 2024, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) published Field Assistance Bulletin (FAB) No. 2024-1 on the use of artificial intelligence (AI) in the workplace.

The FAB follows a statement released by the White House announcing key AI-related actions following President Joe Biden’s executive order issued on Oct. 30, 2023, on establishing standards for AI safety and security.

Guidance on AI-related Wage and Hour Risks

Employers are increasingly using AI tools to generate timecards, set schedules, monitor performance, track employee hours and process payroll. As such, the FAB highlights certain compliance risks under the Fair Labor Standards Act (FLSA) for employers using these tools. These risks include:

Tracking employee work time;
Monitoring employee break and waiting time;
Using location-based monitoring for individuals performing work at multiple geographic locations;
Calculating employees’ regular rate of pay and overtime compensation; and
Violating the FLSA’s antiretaliation provisions

To aid employers in addressing these compliance risks, the WHD identifies recommended practices, including exercising proper human oversight, to help ensure that AI systems and tools do not violate the FLSA.

Additional AI-related Guidance

In addition to addressing FLSA compliance risks, the FAB also examines certain AI-related risks that may arise under other laws, including the Family and Medical Leave Act (FMLA), the Providing Urgent Protections for Nursing Mothers Act (PUMP Act) and the Employee Polygraph Protection Act (EPPA). For example, using AI tools to administer FMLA leave can create potential risks for violating the law’s certification requirements when determining whether an employee’s leave is FMLA-qualifying.

Employer Action Items

While FABs are not necessarily legally binding, they offer insight into how the DOL interprets laws it enforces and how agency officers will analyze workplace conditions and circumstances to enforce compliance.

Using AI systems for scheduling, timekeeping and calculating rates of pay and overtime may increase an employer’s risk under the FLSA. Therefore, employers should ensure that their AI systems and tools comply with all federal laws and regulations by examining potential legal and business risks associated with AI, implementing AI usage policies and establishing internal best practices.

Nurturing Your Mind: Embracing Mental Health Awareness Month

Tue, 30 Apr 2024 20:16:01 GMT

As we step into May, we're reminded of the importance of mental health and well-being. May marks Mental Health Awareness Month, offering us an opportunity to renew our commitment to nurturing our minds and fostering supportive environments, both in and out of the workplace. In this blog post, we'll explore practical strategies for enhancing mental health, including small tips that can refresh you mentally during the workday.

Embracing Self-Care

Amid life's hustle and bustle, it's crucial to carve out time for self-care. Whether it's practicing mindfulness, engaging in hobbies, or simply taking a moment to breathe deeply, prioritizing self-care nurtures mental resilience and fosters a sense of inner peace.

Cultivating Work-Life Balance

In today's fast-paced world, achieving a healthy work-life balance is essential for mental well-being. Set boundaries between work and personal life, establish a routine that includes breaks and leisure activities, and strive to unplug from technology during downtime. Remember, balance is key to sustaining productivity and happiness.

Fostering a Supportive Workplace Culture

Employers play a pivotal role in promoting mental health in the workplace. Encourage open dialogue about mental health, offer resources such as counseling services or mental health days, and prioritize flexibility to accommodate employees' well-being needs. By fostering a supportive culture, organizations cultivate environments where employees feel valued, understood, and empowered to prioritize their mental health.

Supporting Loved Ones

If someone you care about is struggling with mental health challenges, your support can make a significant difference. Listen without judgment, offer empathy and reassurance, and encourage them to seek professional help if needed. Remember, your presence and understanding can provide comfort and strength during difficult times.

Practicing Gratitude

Gratitude is a powerful tool for enhancing mental well-being. Take time each day to reflect on moments of gratitude, whether it's appreciating the beauty of nature, expressing gratitude for supportive relationships, or acknowledging personal achievements. Cultivating a mindset of gratitude fosters resilience and enhances overall happiness.

Small Tips to Refresh Your Mind During the Workday

Take short breaks: Step away from your desk for a few minutes to stretch, walk around, or simply gaze out the window. These brief pauses can rejuvenate your mind and boost productivity.

Practice deep breathing: Incorporate deep breathing exercises into your day to reduce stress and promote relaxation. Close your eyes, inhale deeply through your nose, hold for a few seconds, and exhale slowly through your mouth.

Connect with nature: Spend time outdoors during your lunch break or coffee breaks. Even a brief stroll in a nearby park or green space can invigorate your senses and clear your mind.

Listen to music: Create a playlist of soothing music or uplifting tunes to listen to during work breaks. Music has the power to uplift your mood, reduce anxiety, and enhance focus.

Stay hydrated: Drink plenty of water throughout the day to stay hydrated and maintain mental alertness. Dehydration can impair cognitive function, so keep a water bottle handy and sip regularly.

Practice mindfulness: Take a few moments to practice mindfulness or meditation exercises. Focus on your breath, observe your thoughts without judgment, and cultivate a sense of presence and calm.

Declutter your workspace: A clutter-free workspace can promote mental clarity and productivity. Take a few minutes to tidy up your desk, organize files, and create a calming environment conducive to focus.

Engage in positive self-talk: Replace negative self-talk with affirming and encouraging statements. Remind yourself of your strengths, accomplishments, and capabilities, and cultivate a mindset of self-compassion and resilience.

Connect with colleagues: Build supportive relationships with coworkers by engaging in meaningful conversations, sharing experiences, and offering mutual support. A sense of camaraderie and connection can foster a positive work environment and bolster mental well-being.

As Mental Health Awareness Month unfolds, let's commit to nurturing our minds and supporting those around us. By embracing self-care, fostering work-life balance, promoting workplace well-being, and offering compassionate support to loved ones, we contribute to a culture of mental health awareness and resilience.

Remember, you are not alone. Reach out for support if you need it, and let's journey toward better mental health together.

DOL Announces Final Overtime Rule Increasing Salary Levels for White-collar Employees

Tue, 30 Apr 2024 00:50:16 GMT

On April 23, 2024, the U.S. Department of Labor (DOL) announced a final rule to amend current requirements employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA). The final rule will take effect on July 1, 2024.

Increased Salary Level

The FLSA white-collar exemptions apply to individuals in executive, administrative, professional, and some outside sales and computer-related occupations. Some highly compensated employees may also qualify for the FLSA white-collar overtime exemption.

To qualify for this exemption, white-collar employees must satisfy the standard salary level test, among other criteria. This salary level is a wage threshold that white-collar employees must receive to qualify for the exemption.

Starting July 1, 2024, the DOL’s final rule increases the standard salary level from:

$684 to $844 per week ($35,568 to $43,888 per year); and
$107,432 to $132,964 per year for highly compensated employees.

On Jan. 1, 2025, the standard salary level will then increase from:

$844 to $1,128 per week ($43,888 to $58,656 per year); and
$132,964 to $151,164 per year for highly compensated employees.

Automatic Updates

The DOL’s final rule also includes mechanisms allowing the agency to automatically update the white-collar salary level thresholds without having to rely on the rulemaking process. Effective July 1, 2027, and every three years thereafter, the DOL will increase the standard salary level. The agency will apply up-to-date wage data to determine new salary levels.

Impact on Employers

The first salary level increase in July is expected to impact nearly 1 million workers, while the second increase in January is expected to affect approximately 3 million workers. Employers should become familiar with the final rule and evaluate what changes they may need to adopt to comply with the rule’s requirements. Legal challenges to the rule are anticipated, which may delay the final rule’s implementation.

New York Passes Prenatal Leave, Sets End Date for COVID-19 Leave

Mon, 29 Apr 2024 16:39:46 GMT

The recently enacted New York budget for fiscal year 2024-25 includes provisions mandating paid prenatal leave for the state’s workers, beginning Jan. 1, 2025, and repealing the New York COVID-19 sick leave law, effective July 31, 2025.

Paid Prenatal Personal Leave

The budget amends the state sick leave law by adding what is being touted as a first-in-the-nation requirement that all employers provide their employees with 20 hours of paid prenatal personal leave per 52-week period, starting Jan. 1, 2025. The amendment does not require employees to accrue the new leave, nor does it impose a waiting period before employees may use the leave; the full 20 hours must be made available on Jan. 1, 2025.

Employees on leave must be paid their regular rate of pay or minimum wage if the applicable minimum wage is higher; however, employers are not required to pay out unused prenatal personal leave when an employee separates from employment.

Permitted Uses of Prenatal Personal Leave

Prenatal personal leave may be taken for health care services received by an employee during their pregnancy or related to the pregnancy, including physical examinations, medical procedures, monitoring and testing, and discussions with a health care provider related to the pregnancy. The new provisions do not require advance notification or documentation after the fact for using leave.

Interaction With Paid Sick Leave and FMLA Leave

The new requirement is in addition to the annual sick leave the law already mandates, which ranges from 40-56 hours and may be paid or unpaid, depending on the employer’s size and income. The amendment does not indicate that the leave runs concurrently with any federal Family and Medical Leave Act (FMLA) leave taken for prenatal care, meaning the state prenatal personal leave would be in addition to any FMLA leave taken for this purpose.

Sunset Date for COVID-19 Leave

The budget also establishes July 31, 2025, as the expiration date for New York’s COVID-19 employee sick leave law . The law took effect at the beginning of the COVID-19 pandemic, on March 18, 2020, and requires leave of up to 14 days, depending on the size and income of the employer. As with the regular sick leave law, whether leave must be paid also depends on the size and income of the employer. The sunsetting of the law comes in the wake of expired states of emergency and changed recommendations for isolation and quarantine.

Steps for Employers

New York employers should prepare for the start of paid prenatal personal leave in January 2025 and watch for any agency regulations and guidance implementing the new leave entitlement. Employers should also train managers and supervisors about the new requirements and make sure employee policies and handbooks are up to date.

Employers should continue to allow COVID-19 sick leave when it applies and keep in mind that other leave requirements, such as paid sick leave, may allow employees to take time off from work for illness, including COVID-19.

FTC Announces Rule Banning Noncompetes

Thu, 25 Apr 2024 18:28:29 GMT

On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a final rule that would ban noncompete agreements in virtually all employment relationships. The final rule has not yet been filed in the Federal Register, but is scheduled to take effect 120 days after such filing.

Final Rule

The final rule defines a noncompete clause as a term or condition of employment that prohibits a worker from, penalizes a worker for or functions to prevent a worker from:

(i) Seeking or accepting work in the United States with a different person where such work would begin after the conclusion of the employment that includes the term or condition; or

(ii) Operating a business in the United States after the conclusion of the employment that includes the term or condition. Such terms or conditions include employee contracts or workplace policies, whether written or oral.

Subject to very limited exceptions, the final rule provides that:

The use of noncompete clauses will be banned as of the effective date;
Any existing noncompete clauses (other than those entered into with senior executives) will be invalidated;
Employers must notify all employees (other than senior executives whose existing noncompete agreements will remain enforceable) that their existing noncompete agreements will not be enforced.

Currently, the enforceability of noncompete clauses is determined by state and local legislatures and courts. The FTC rule would instead govern the enforceability of noncompete clauses at the federal level and supersede any less restrictive state laws or judicial interpretations.

Legal Challenges

On April 24, 2024, the U.S. Chamber of Commerce sued the FTC, seeking to block the final rule. The complaint was filed in the U.S. District Court for the Eastern District of Texas and argues that the FTC lacks the authority to issue rules that define unfair methods of competition. Additional legal challenges are likely, so employers should monitor for updates and anticipate potential uncertainty in the coming months.

Next Steps for Employers

Employers may consider reviewing existing employee agreements or form agreements (such as new hire paperwork) to determine whether any contain noncompete clauses that would be invalidated under the rule. Employers may also begin preparing revisions to such agreements and consider whether to use alternatives to noncompete clauses (e.g., nondisclosure clauses) to protect competitive business information.

What You Should Know About the 2024 Total Solar Eclipse

Mon, 08 Apr 2024 14:05:14 GMT

You likely have heard about the upcoming 2024 total solar eclipse. In the United States, Mexico and Canada, the solar eclipse will take place today: Monday, April 8, 2024. You may have questions about when it will occur, where you can see it and how to view it safely. If you are planning to view the solar eclipse, safety should be the number one priority.

This article provides information about the 2024 solar eclipse, including how to stay safe and how you can learn more. The details provided are compiled from the National Aeronautics and Space Administration (NASA).

What Is a Total Solar Eclipse?

A total solar eclipse happens when the moon passes between the sun and Earth, completely blocking the face of the sun. People viewing the eclipse from locations where the moon’s shadow completely covers the sun, known as the path of totality, will experience a total solar eclipse. The sky darkens, similar to a normal dawn or dusk.

The 2024 total solar eclipse will only last for two to four minutes, depending on the viewer’s location. However, the full experience will last over an hour from the initial partial eclipse to the conclusion of the event.

If weather allows, viewers along the path of totality will see the sun’s corona, or outer atmosphere, which is usually obscured by the face of the sun.

Where Can I See the Total Solar Eclipse?

In the United States, the path of the solar eclipse will extend from Texas to Maine, crossing through Oklahoma, Arkansas, Missouri, Illinois, Kentucky, Indiana, Ohio, Pennsylvania, New York, Vermont and New Hampshire. Depending on your location , the total eclipse will take place between 12:23 p.m. and 3:02 p.m. CDT and between 1:59 p.m. and 4:40 p.m. EDT.

An estimated 31.6 million people live in the path of totality this year, and an additional 150 million people live within 200 miles of the path of totality. Millions more are expected to travel to prime viewing locations over the weekend.

Even if you don’t live directly on the path of totality, you may be able to see a partial eclipse. NASA estimates that 99% of people in the country will be able to see a partial or total eclipse from where they live.

The solar eclipse will also be viewable online. NASA will be showing a live stream on Monday, April 8, from 1-4 p.m. EDT. The live stream will be available for viewing here .

Is This Different Than the Solar Eclipse That Happened in 2017?

The total solar eclipse that took place on Aug. 21, 2017, and this year’s total solar eclipse are similar events. However, the path of the 2017 eclipse was narrower than what will take place during the 2024 total solar eclipse. On April 8, 2024, the total solar eclipse will be visible to more people in the United States and last longer.

How Often Does a Total Solar Eclipse Happen?

Total solar eclipses happen, on average, once every 18 months across the globe. In North America, a total solar eclipse occurs only six times between 2001 and 2050. After the 2024 solar eclipse, there will be one that is viewable from some parts of Alaska in 2033. A total solar eclipse will be viewable by some northwestern states in 2044, followed by one that broadly reaches the U.S. in 2045.

How Can I Stay Safe?

During the total solar eclipse, looking directly at the sun without specialized eye protection for solar viewing is not safe. According to NASA, the exception is during the brief total phase of a total solar eclipse, when the moon completely blocks the sun.

Here are safety tips to consider:

Avoid looking at the sun directly. Viewing any part of the sun through a camera lens, binoculars or a telescope without a special-purpose solar filter secured over the front of the optics will instantly cause severe eye injury.

Use safety protection. When watching the partial phases of the solar eclipse—which happens before and after totality—directly with your eyes, you must always look through safe solar viewing glasses (“eclipse glasses”) or a safe handheld solar viewer. You can also use an indirect viewing method, such as a pinhole projector. Learn more about safe solar viewers and filters here .

Don’t use viewing devices that are not approved for use during the solar eclipse. Use only approved devices. NASA specifically advises against wearing standard sunglasses during the solar eclipse.

Wear sunscreen. If you are outside for hours, you may be subject to ultraviolet rays from the sun. It’s important to properly apply SPF for your skin safety.

Prepare for large crowds. If you are viewing the eclipse in or near any city on the path of totality, you should expect more traffic and crowds than normal. Plan ahead for longer transportation times and bring water and anything else you’ll need to stay comfortable.

There are ways to experience this event while staying safe. NASA provides more information about safety during the total solar eclipse.

Learn More

If you plan on viewing this event, create a plan to prepare for and stay safe during the total solar eclipse. This is a once-in-a-lifetime experience for many viewers, but it can create safety risks for participants who don’t take precautions.

Check out resources from NASA’s website to learn more.

Report Highlights Growing Demand for Family-friendly Benefits

Mon, 01 Apr 2024 13:51:15 GMT

A new report released by family health benefits platform Ovia Health by Labcorp (Ovia) uncovered U.S. workers’ preferences for family-friendly workplace benefits. American employees are looking for company benefits and policies that support their families, and nearly three-quarters (73%) would leave their current jobs to find them.

Respondents also expressed widespread dissatisfaction with available family-friendly benefits. Many (62%) employees don’t consider their employer family-friendly, and almost half (43%) graded their benefits a “C” or lower. Overwhelmingly, working parents seek longer and more pay during parental leave, stronger flexibility policies and child care support.

Furthermore, parental leave is generally associated with the birth of a baby, but respondents expressed a need to expand that thinking regarding benefits. In fact, 10%-20% of pregnancies end in miscarriage, validating the employee demand for better maternity management support (to identify risk and intervene) and pregnancy loss support.

Along with fertility benefits, there is a growing demand for family-building offerings, including adoption, foster and surrogacy support. One-third (38%) of respondents said family-building benefits are important, but only 5%-14% of employees can access them. Today’s workers want and need unbiased support and alternative family planning support, including adoption and surrogacy.

“Pregnancy among people in their 30s and 40s is on the rise, and thankfully, same-sex couples are able to speak more openly about their intentions to build their families. There's more of a need for alternative family-planning support.”

- Dr. Jenny Carrillo, president of Ovia

Employer Takeaway

The Ovia report stated that if an organization values retention, productivity and engagement, it should prioritize fostering a family-friendly culture in 2024 and beyond. To round out a great family benefits package and contribute to holistic wellness, employers can also incorporate nutrition, health screenings and menopause support. An organization can promote a family-friendly culture by making its commitment to its workforce’s health obvious. More workers today are looking for a company culture that inclusively supports their families, assists with various paths to parenthood and helps them navigate life’s journeys.

Employers should continue to monitor workers’ desires and adjust their health benefits strategy as needed. Contact Simco today for more information.

Final Rule Released on Short-term, Limited-duration Insurance and Fixed Indemnity Coverage

Mon, 01 Apr 2024 13:41:15 GMT

Highlights

The final rule’s changes are intended to help consumers differentiate between comprehensive health coverage and certain types of coverage that are not subject to the ACA’s consumer protections. These changes:

Amend the federal definition of STLDI to reduce the initial contract period to no more than three months;
Prohibit a practice known as “stacking” that allows issuers to evade the duration limits for STLDI; and
Expand a consumer notice requirement to apply to fixed indemnity excepted benefits coverage sold in the group market.

On March 28, 2024, the U.S. Departments of Labor, Health and Human Services, and the Treasury (Departments) released a final rule on certain types of health coverage that are not subject to the Affordable Care Act’s (ACA) consumer protections, namely short-term, limited-duration insurance (STLDI) and fixed indemnity coverage. This rule finalizes some of the changes included in a proposed rule from July 2023.

The Departments are making changes to STLDI and fixed indemnity coverage to help consumers distinguish them from comprehensive health coverage and increase consumer awareness of coverage options that include the ACA’s consumer protections. These protections include, for example, the prohibition of discrimination based on health status, the prohibition of preexisting condition exclusions, and the prohibition of lifetime and annual dollar limits on essential health benefits.

STLDI

STLDI is a type of health insurance coverage designed to fill temporary gaps in coverage when an individual transitions from one plan or coverage to another. STLDI is specifically exempt from the definition of “individual health insurance coverage” and, therefore, is not subject to the ACA’s requirements for comprehensive coverage.

Currently, STLDI is defined as coverage with an initial contract period of less than 12 months and a maximum total duration of up to 36 months, which includes renewals and extensions. Effective for coverage periods beginning on or after Sept. 1, 2024 , the final rule limits the length of the initial contract period to no more than three months and the maximum coverage period to no more than four months , taking into account any renewals or extensions.

In addition, the final rule:

Prohibits a practice known as “stacking,” where the same insurer issues multiple STLDI policies to the same policyholder within a 12-month period; and

Amends the consumer notice requirement to further clarify the differences between STLDI and comprehensive coverage and identify options for consumers to obtain comprehensive coverage. The notice must be prominently displayed on the first page of the policy, certificate or contract of insurance—including for renewals and extensions—and included in any marketing, application and enrollment (or reenrollment) materials.

The final rule also includes a reminder that coverage sold to individuals through a group trust or association, other than in connection with a group health plan, is not group coverage for purposes of federal law and must meet the federal definition of STLDI or it is subject to the federal consumer protections and requirements for comprehensive individual health insurance coverage.

Fixed Indemnity Excepted Benefits Coverage

Certain categories of coverage—called “excepted benefits”—are not subject to certain federal consumer protections, including the ACA’s requirement for comprehensive coverage. Fixed indemnity coverage is exempt from these protections because it is designed to provide a source of income replacement rather than full medical coverage.

Effective for plan years beginning on or after Jan. 1, 2025 , the final rule requires a consumer notice to be provided when offering fixed indemnity excepted benefits coverage in the group market to ensure that consumers can distinguish between this coverage and comprehensive medical coverage. Health plans and issuers must prominently display the notice in marketing, application and enrollment (and reenrollment) materials.

In the July 2023 proposed rule, the Departments proposed new standards regarding the payment standards and noncoordination requirement for fixed indemnity excepted benefits. The Departments are not finalizing these proposed standards at this time , but they intend to address the issues in future rulemaking after additional study and consideration.

Tax Treatment of Fixed Indemnity Health Coverage

In the July 2023 proposed rule, the Departments proposed to clarify that payments from employer-provided fixed indemnity health insurance plans are not excluded from a taxpayer’s gross income if the amounts are paid without regard to the actual amount of any incurred medical expenses and where the premiums or contributions for the coverage are paid on a pre-tax basis. This rule also proposed to clarify that the taxpayer must meet substantiation requirements for reimbursements for qualified medical expenses from any employer-provided accident and health plan to be excluded from the taxpayer’s gross income. To provide more time to study the issues and concerns raised by commenters, the Departments are not finalizing these proposed changes at this time.

New CDC Isolation Guidance and Employee Leave Considerations

Fri, 29 Mar 2024 17:19:34 GMT

Highlights

The CDC has dropped the five-day isolation recommendation for COVID-19-positive individuals.

People are now advised to stay home until they have been fever-free for 24 hours and symptoms are improving.

Not all COVID-19-specific employee leave laws have expired.

Federal and state family and medical leave laws, and state and local sick leave laws, will often apply to employees with COVID-19.

Important Date

March 1, 2024: The CDC revised its isolation recommendations for people with COVID-19.

The Centers for Disease Control and Prevention’s (CDC) new guidance that individuals no longer need to isolate from work for five days following a positive COVID-19 test may raise questions with employers about what leave they are required to provide to employees with the virus.

The revised guidance, issued March 1, 2024, advises that people who are sick with COVID-19 or another respiratory virus stay home and away from others. However, isolation is not necessary if an individual with COVID-19 has been fever-free for at least 24 hours without medication and their symptoms are improving. The guidance states that the period people should stay home and away from others could be shorter, the same or longer than the previous guidance for COVID-19 isolation. The new guidance is not applicable to health care settings, which have their own CDC recommendations .

From an employee leave perspective, employers should note that while most COVID-19-specific employee leave laws have expired, some—like New York state’s—are still in effect. Moreover, state and local paid sick leave laws that are not specific to COVID-19 apply to illness generally, including for a worker experiencing COVID-19 symptoms like fever. Some of these laws have specific provisions concerning communicable disease.

In addition, sick workers may be eligible for leave for their own illness or to care for an ill family member under the federal Family and Medical Leave Act or similar state family and medical leave laws.

Action Steps

Employers should familiarize themselves with any remaining state or local COVID-19 leave laws that apply to them. They should also ensure compliance with non-COVID-19 federal, state and local leave law mandates, as they may apply to workers with COVID-19.

Addressing Small Business Talent Challenges

Fri, 29 Mar 2024 16:29:14 GMT

Employers of all sizes continue to face attraction and retention challenges. Successful efforts to win over workers can require significant time and carry high costs, but failing to attract talent or losing existing employees is particularly costly for small businesses. Unfortunately, small businesses often don’t have the excess resources to invest in attraction and retention efforts in today’s labor market, making it difficult to compete with larger organizations. Along with the costs associated with recruiting, hiring and training, attraction and retention struggles can significantly impact workplace operations and culture, especially in a smaller environment. For these reasons, small businesses cannot afford to ignore their attraction and retention efforts.

This article outlines talent challenges faced by small businesses and practical strategies to overcome them.

Attraction and Retention Tips

Economic pressures continue to make it challenging for small businesses to hold on to their best talent and appeal to other top-tier workers. Regardless of size, employers are straining to keep up with workers’ compensation expectations and demands. Furthermore, rising health care costs are stressing employees and employers alike. Workers are looking for robust health care coverage and affordable and quality care options from their employers, while employers consider ways to move away from cost-shifting to employees. Aside from expense concerns, employers are also experiencing a growing skill gap as many workers join organizations without all the desired skills.

However, there are ways that small businesses can overcome these hurdles in the race for talent. Consider the following attraction and retention strategies:

Select the right benefits. Health insurance is valued highly by workers. Simply offering health insurance can give small businesses a competitive edge against those that don’t. However, health insurance is just one component to consider as part of a benefits package; small businesses should tailor their benefits offerings to meet the specific demands of current and prospective employees. The best benefits vary for each organization, but they can be used to attract and retain employees. In general, some popular benefits include competitive health insurance, leave benefits, performance benefits, retirement planning and professional development opportunities.

Embrace technology and generative artificial intelligence (AI) tools. Small businesses often have limited resources for recruiting, hiring and onboarding practices, so it’s important to be as efficient as possible. Leveraging cost-effective technology, such as applicant tracking systems and digital tools, can help small businesses improve these practices. Generative AI can also help workers spend less time on tedious tasks, such as manual data entry. In turn, employers’ costs may be reduced, and they can focus on finding new employees rather than dealing with time-consuming and tiresome recruiting tasks.

Expand recruitment reach. If an employer isn’t receiving the number of quality candidates they desire, it’s worth strategizing to grow their talent pool. Expanding an organization’s online presence is a good start. This may include creating and maintaining multiple online profiles, posting content regularly and informing prospective workers of job opportunities.

Focus on developing employees. Attraction and retention challenges aren’t always about bringing enough employees through the doors; today, many small businesses face skills gaps. Recruiting specific skills may close these gaps, but this solution overlooks existing employees. As such, small businesses should consider how they can bridge skills gaps in-house. Some strategies may include providing career pathing plans, creating mentorship programs, offering microlearning workshops to focus on specific skills, or paying for employees to attain certifications or further their education outside the workplace.

Offer a flexible work environment. Many of today’s employees worked remotely during the COVID-19 pandemic and would prefer to work from home. Flexible work arrangements, such as work-from-home arrangements and hybrid or flexible schedules (including flex time or days), can help small businesses maintain a competitive edge over employers who don’t offer such flexibility.

Create a strong workplace culture. Small businesses should aim to foster a desirable workplace. A healthy company culture can help retain employees and, in turn, create an environment that’s attractive to applicants. Many small businesses are currently focusing on creating a strong workplace culture by training managers to identify employee burnout, designate fair workloads and support workers’ needs.

Summary

Like many organizations, small businesses face several challenges with attracting and retaining the employees they need. Fortunately, small businesses can leverage these strategies to help them compete in today’s talent market.

Contact Simco today for more small business guidance.

Medical Debt Affects 43% of U.S. Workers With Employer-sponsored Insurance

Tue, 19 Mar 2024 17:11:43 GMT

Despite employers’ best efforts to offer competitive health care benefits to workers, many employees struggle with medical debt. According to a new survey commissioned by Goodroot, a community of health care companies, more than 4 in 10 employees report having experienced medical debt.

“When employees are struggling with a massive, unpayable medical bill, it not only puts tremendous stress on their family but also harms their ability to be productive and contribute to company culture.”

- Goodroot CEO Mike Waterbury

Medical Debt in the United States

In 2023, employers spent an average of $17,393 for family coverage per employee, a 48% increase since 2013. Although employers increasingly invest in their sponsored health care benefits, employees still face medical debt. Consider these key findings from the Goodroot survey:

Medical debt remains the leading cause of bankruptcy in the country. Half (52%) of Americans in medical debt owe more than $2,500.

Medical debt impacts employees’ ability to cover daily living expenses. At some point, nearly 4 in 10 people have been unable to afford rent, groceries or utilities due to medical bills.

People are delaying health care in anticipation of high costs. The majority of Americans (86%) who have experienced medical debt delayed care due to the expected cost.

Younger workers are more likely than older ones to experience medical debt, and their debts are larger. Of employees aged 42 or under with medical debt, 59% owe more than $2,500, compared to 45% of workers aged 43 or older.

Goodroot stressed that employees often are unaware that financial help is available. Hospitals are federally mandated to offer “community benefits, including free or discounted urgent and medically necessary care to patients unable to pay.” However, each health system has its own financial assistance policy, eligibility criteria and application form, which can be confusing for patients.

Employer Takeaway

Medical debt is taking a toll on many Americans. Employers can help their workers by integrating hospital financial assistance into health benefits. In addition to health care benefits, some employers are also exploring providing a health-cost navigator who will work directly with employees to help them understand and use their benefits effectively by comparing pricing, reviewing bills and negotiating costs.

Employers should continue to monitor health care and benefits trends. Contact us for more resources.

Keeping Up With Compliance: 1st Quarter 2024

Thu, 29 Feb 2024 23:03:03 GMT

Keeping up with compliance developments can be difficult and time-consuming. This quarterly update highlights recent legal developments to help your organization stay on top of new requirements and minimize its compliance risks.

Recent Federal Developments

DOL Issues Independent Contractor Final Rule

On Jan. 10, 2024, the U.S. Department of Labor (DOL) issued a final rule, effective March 11, 2024, revising its guidance on how to analyze who is an employee or independent contractor under the Fair Labor Standards Act (FLSA). The DOL’s new rule reinstates the multifactor and totality-of-the-circumstances analysis, which is generally viewed as more employee-friendly. As a result, the new rule will likely lead to more workers being classified as employees.

DOL Updates Model Employer CHIP Notice

The DOL has released a new model employer Children’s Health Insurance Program (CHIP) notice with information current as of Jan. 31, 2024. An employer is subject to this annual notice requirement if its group health plan covers participants who reside in a state that provides a premium assistance subsidy under a Medicaid plan or a CHIP, regardless of the employer’s location. The DOL’s model notice, which employers may use for this disclosure, is updated periodically to reflect changes in the states that offer premium assistance subsidies.

Employers Must Use New Form I-9

As of Nov. 1, 2023, employers are required to use the newest version of the Employment Eligibility Verification form (Form I-9). The new Form I-9 includes updated instructions and many notable changes, including alternative remote verification procedures that employers enrolled in E-Verify can use to comply with their Form I-9 obligations. Employers should ensure they are using the new Form I-9, as continuing to use the outdated Form I-9 can trigger penalties.

NLRB Issues New Joint Employer Final Rule

On Oct. 27, 2023, the National Labor Relations Board released a final rule establishing new, broader criteria for determining joint-employer status. Joint employment situations can happen when two or more employers share personnel hiring, supervision and management practices. When a joint employment status exists, joint employers are equally responsible for compliance with applicable laws and regulations. The final rule had been set to take effect on Feb. 26, 2024. However, on Feb. 22, 2024, a federal judge in the U.S. District Court for the Eastern District of Texas delayed the implementation of the final rule to Mar. 11, 2024.

DOL Increases Civil Penalty Amounts for 2024

On Jan. 11, 2024, the DOL released its 2024 inflation-adjusted civil monetary penalties that may be assessed on employers for violations of a wide range of federal laws, including the FLSA, ERISA, the Family and Medical Leave Act, and the Occupational Health and Safety Act. For example, the maximum penalty for failing to file a Form 5500 for an employee benefit plan increased from $2,586 to $2,670 per day. Employers should periodically review their pay practices, benefit plan administration and safety protocols to ensure compliance with federal requirements.

EEOC Increases Enforcement Activity

The U.S. Equal Employment Opportunity Commission (EEOC) is a federal agency responsible for enforcing federal employment discrimination laws, such as Title VII of the Civil Rights Act, the Americans with Disabilities Act and the Pregnant Workers Fairness Act. The EEOC experienced several noteworthy changes in 2023, including new leadership, structural changes and an increased budget. It also multiplied its enforcement efforts; at the end of fiscal year 2023, the agency reported a 52% increase in lawsuit filings from the previous year. These efforts are likely to continue in 2024.

Recent State Developments

New York Increases Salary Threshold for Exempt Employees

On Sept. 15, 2023, New York State amended its Labor Code to increase the salary threshold executive, administrative and professional (EAP) employees must meet in order to qualify for the state’s exemptions from pay frequency laws. Beginning March 13, 2024, EAP employees who earn less than $1,300 per week (up from $900 per week) will be subject to the same wage payment protections as other nonexempt employees.

For more information on these topics, please contact Simco.

5 Employment Policies to Review in 2024

Thu, 29 Feb 2024 22:38:42 GMT

Employee handbooks are important tools for establishing employee expectations, addressing workplace issues and defending against potential lawsuits. Failing to update the employment policies in these handbooks regularly can make employers vulnerable to legal risks and liabilities, resulting in costly fines, penalties and attorneys’ fees. Employment laws are often complicated, and employers must be aware of new regulatory developments that may impact their organizations and workforce. The start of the year provides employers with an excellent opportunity to review and update their policies.

To assist with this effort, this article explores five employment policies employers should consider reviewing in 2024.

1. CROWN Act

In 2023, many states and localities enacted laws prohibiting discrimination based on an individual’s hair texture and style associated with a protected class, such as race. As of September 2023, 23 states had passed the Creating a Respectful and Open World for Natural Hair (CROWN) Act. Additionally, the U.S. Virgin Islands and more than 40 localities have passed CROWN laws. Many states that have not passed a CROWN Act have filed or pre-filed similar legislation. CROWN laws generally forbid discrimination based on hair textures or protective hairstyles commonly associated with a protected characteristic, such as race, national origin and ethnicity. Looking ahead, the U.S. Equal Employment Opportunity Commission (EEOC) has signaled that it will pursue discrimination claims related to hair texture and style.

As many states and localities adopt hair discrimination laws, employers must ensure their workplace dress code policies are current and comply with state and local laws. It is critical to review existing policies to ensure they accommodate different hairstyles by not banning or restricting certain hair textures and styles that are associated with race, national origin and ethnicity.

2. Pregnant Workers Fairness Act

The Pregnant Workers Fairness Act (PWFA), signed into law on Dec. 29, 2022, became effective on June 27, 2023. Under this law, employers with at least 15 employees must provide reasonable accommodations to workers with known limitations related to pregnancy, childbirth or related medical conditions unless the accommodation will cause the employer an “undue hardship.” The EEOC has started accepting charges under the PWFA for situations occurring on June 27, 2023, or later.

The number of lawsuits claiming employers failed to accommodate pregnant workers will likely increase in 2024. As such, employers should review and familiarize themselves with this law. Savvy employers will look at the EEOC’s final PWFA regulations and consider including a policy in their 2024 employee handbook that explicitly addresses PWFA accommodations. Moreover, forward-thinking employers will increasingly engage in the interactive process with covered employees and applicants who require accommodations under PWFA.

3. Noncompete Agreements

In January 2023, the Federal Trade Commission (FTC) proposed a rule banning most noncompete agreements. The FTC is expected to vote on this rule in April 2024. Additionally, about six months after the FTC announced its proposed rule, the National Labor Relations Board stated that most noncompete and nonsolicitation agreements violate the National Labor Relations Act. Many states have also passed noncompete bans or taken action to ensure noncompetes are unenforceable.

Due to the shifting legislation surrounding these policies, employers need to ensure their noncompete agreements are tailored to the state and locality where their employees work. Moreover, employers can consider limiting or eliminating noncompete agreements and policies to avoid potential litigation and unnecessary enforcement hurdles.

4. Form I-9

In 2023, the U.S. Department of Homeland Security’s (DHS) Citizenship and Immigration Services published an updated Employment Eligibility Verification form (Form I-9) and instructions. The DHS also issued a final rule that will amend agency regulations to allow for the authorization of alternative document examination procedures, such as remote documentation verification and examination. Employers had to start using the new form as of Nov. 1, 2023, to avoid penalties.

Complying with Form I-9 requirements is often challenging and places a significant administrative burden on employers. Failing to complete and retain Forms I-9 for all employees can be extremely costly. Form I-9 violations often can lead to additional fines and penalties from other government agencies. While the required timelines for completing Forms I-9 for employees haven’t changed, the updated form will likely force employers to make some changes to their Form I-9 operations and processes. Therefore, employers should familiarize themselves with the updated form and establish a plan for implementing the required changes. Savvy employers will also train employer representatives and communicate with employees about plan updates. Due to the complexities of complying with Form I-9 requirements, employers are encouraged to seek legal counsel to discuss specific issues and concerns.

5. FLSA Overtime and Minimum Wage Exemptions

On Aug. 30, 2023, the U.S. Department of Labor (DOL) announced a proposed rule to amend current requirements that executive, administrative and professional employees must satisfy to be exempt from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime requirements. With this rule, the DOL proposes increasing the minimum salary level from $684 to $1,059 per week (from $35,568 to $55,068 per year) and from $107,432 to $143,988 per year for highly compensated employees. The rule would also enable the DOL to update salary levels automatically every three years without relying on the rulemaking process. The final overtime rule is expected to be released in April 2024.

While the proposal doesn’t impose any new requirements on employers until the rule is published, proactive employers will review the FLSA’s proposed rule and evaluate the changes needed to remain compliant with the new law. This may include reviewing employee compensation, auditing exempt employees’ job duties and revising workplace policies to ensure compliance.

Summary

Outdated policies can often expose organizations to unnecessary legal risks. Regularly reviewing and updating employment policies is an effective and cost-effective way for employers to protect themselves. By understanding the most important rules and regulations to study in 2024, employers can take steps to ensure their employment policies are current and reflect the most recent regulatory developments.

For more workplace resources, contact Simco today.

New York State Strengthens Pay Protections for Freelance Workers

Thu, 29 Feb 2024 21:44:01 GMT

New York law requires written contracts and timely payment for freelance workers.

On Nov. 22, 2023, the state of New York enacted the Freelance Isn’t Free Act (the Act) to strengthen protections for freelance workers by requiring written contracts, timely payment and non-retaliation. The Act takes effect on May 20, 2024 , and generally mirrors the New York City Freelance Isn’t Free Act (the NYC Act) that took effect in 2017.

Freelance Workers Defined

A “freelance worker” includes any natural person or single-person organization that is hired or retained as an independent contractor by a nongovernmental hiring party to provide services in exchange for compensation of at least $800 or $800 in the aggregate during the preceding 120 days. The definition of “freelance worker” does not include sales representatives, attorneys, licensed medical professionals, construction contractors or any workers hired as employees.

Written Contract Requirements

The Act requires the hiring party and freelance worker to enter into a written contract for services, a copy of which must be provided to the freelance worker. The hiring party must also retain a copy of the contract for six years.

At a minimum, the contract must include the name and mailing address of each party, an itemization of services to be provided, the value of such services, the rate and method of compensation, the date of payment (or mechanism by which such date will be determined), and the date by which the freelance worker must submit a list of services rendered to ensure timely payment. The New York Department of Labor (NYDOL) will provide model contracts on its website for use by the general public at no cost.

Timely Payment

The hiring party must pay freelance workers no later than the date specified in the contract or, if a date is not specified, no later than 30 days after the completion of services. Once a freelance worker begins to render services, the hiring party may not require that the freelance worker accept less than the agreed-upon compensation as a condition of timely payment.

Non-Retaliation

The hiring party may not threaten, intimidate, discipline, harass, deny a work opportunity, discriminate against or take any other action to retaliate against freelance workers for or deter them from exercising their rights under the Act.

Penalties and Other Remedies

Freelance workers may file a complaint with the NYDOL alleging violations of the Act, and the NYDOL may award civil or criminal penalties. Freelance workers may also file a civil action for damages, including double damages, injunctive relief and attorneys’ fees (for nonpayment or underpayment), statutory damages equal to the contract price (for retaliation), or statutory damages equal to $250 (for failure to enter into a written contract).

If there is reasonable cause to believe that a hiring party has a pattern or practice of violations, the New York attorney general may bring a civil action on behalf of the state and seek fines of up to $25,000 and other appropriate relief.

Hiring Party Considerations

The Act does not apply to contracts entered into before May 20, 2024. However, hiring parties should review their existing contracts and payment practices now and make any necessary changes to ensure compliance by this date. Moreover, the Act does not provide a determination about the legal classification of any freelance worker as an employee or independent contractor, so hiring parties should ensure that such workers are properly classified.

15 Low- and No-cost Employee Benefits to Offer

Tue, 27 Feb 2024 18:33:48 GMT

Employee benefits are the cornerstone of a thriving organization. Perks and benefits are pivotal in enhancing job satisfaction, attraction and retention rates, employee well-being and overall workplace morale. While some organizations may feel constrained by budget limitations, there are numerous low- and no-cost benefits that can significantly impact employee happiness and productivity.

This article highlights 15 budget-friendly employee benefits.

Affordable Benefits That Employees Want

Many of today’s most popular benefits come at little to no cost for employers. As the race for talent remains tight, employers may consider offering the following affordable employee benefits to appeal to workers:

1. Flexible work arrangements —Many of today’s workers desire flexible work hours or the option to work remotely. This flexibility can greatly improve work-life balance and reduce stress levels. Remember that flexible work arrangements require clear policies and communication to ensure accountability and consistency among workers.

2. Flexible vacation policies —Instead of rigid vacation accrual systems, more employers are implementing unlimited or flexible vacation policies. Trusting employees to manage their time off can lead to greater autonomy and responsibility and help reduce burnout. However, flexible policies require trust and accountability from employees and may entail additional coordination to manage leave schedules.

3. Wellness programs —Popular wellness initiatives include yoga classes, meditation sessions or health challenges. Promoting physical and mental well-being can lead to healthier, happier employees. Wellness programs are trending as a way to foster positive company culture, but it’s important to keep in mind that they often require commitment and resources for planning and implementation.

4. Family-friendly policies —The path to and journey of parenthood are unique. Employers can offer attractive family-friendly policies, such as parental leave, flexible child care arrangements, generous nursing breaks or assistance with adoption expenses. Supporting employees in their family responsibilities can improve loyalty and morale.

5. Professional development opportunities —Today’s workers value learning and development programs for their career growth. Investing in employee professional growth opportunities, such as online courses, workshops or conferences, demonstrates a commitment to their long-term success.

6. Employee recognition programs —Emotional salary, which comprises non-monetary components contributing to an employee feeling adequately rewarded at work, contributes to higher levels of job satisfaction. Frequent recognition is one such factor of emotional salary that can help keep workers happy. When employees feel valued, recognized and appreciated for their contributions, they are more likely to enjoy their work and find it fulfilling. Therefore, employers can establish a system for publicly acknowledging and rewarding outstanding performance. Recognition doesn’t always have to come with a monetary reward; a simple “thank you” can go a long way.

7. Employee assistance programs (EAPs) —These programs can help employees save on health care expenses, provide tax benefits and promote financial wellness. While such programs require administrative setup, the payoff can be worth it, as EAPs provide confidential support for employees dealing with personal or work-related issues.

8. Flexible spending accounts (FSAs) or health savings accounts (HSAs) —Even if an organization can’t afford to provide comprehensive health care benefits, offering FSAs or HSAs allows employees to set aside pre-tax dollars for medical expenses, which may reduce their financial burden.

9. Financial education workshops —More workers want guidance to increase their financial literacy. To meet this desire, employers can provide resources or workshops on personal finance management, budgeting and retirement planning. Empowering employees with financial literacy can alleviate stress and improve overall well-being.

10. Mentorship programs —Mentorship can facilitate knowledge transfer, boost career development and employee engagement, and strengthen the company’s talent pipeline. By offering mentoring resources or pairing junior employees with experienced mentors within the organization, a company can foster professional growth, skill development and a sense of belonging. A mentorship program can easily be scaled based on employees, roles and organization.

11. Paid volunteer time —Employers can encourage community engagement by granting paid time off for employees to volunteer with charitable organizations. Giving back to the community fosters a sense of purpose and fulfillment and may even enhance team bonding.

12. Casual dress code —Relaxing the dress code policy can make employees feel more comfortable and increase morale. This option could entail casual Fridays or more lax requirements during summer. The dress code policy should be clearly defined to avoid confusion.

13. Summer hours —To help boost employee morale and satisfaction during the summer months, employers can offer summer hours, such as closing an hour or two early on Fridays. This perk demonstrates flexibility and trust from the employer and can ultimately help improve employees’ work-life balance during vacation season.

14. Employee discount programs —Employers can offer discounts that appeal to workers’ interests and needs. This perk allows employees to save money on their everyday purchases, which can improve their financial literacy and boost company loyalty. Keep in mind that exclusive discounts hinge on partnerships and negotiation, and they may not be equally beneficial to all employees, depending on their interests and preferences.

15. Health and wellness resources —It may be beneficial to provide access to resources such as mental health hotlines, virtual counseling sessions, or fitness and meditation apps. Prioritizing employee well-being sends a clear message that their health is valued.

Summary

Offering employee benefits doesn’t have to come with a hefty price tag. These low- or no-cost benefits that workers value can enable employers to create a supportive and fulfilling work environment that, in turn, attracts and retains top talent. Investing in employee satisfaction not only boosts morale and productivity but also strengthens the overall success and reputation of the organization.

Contact Simco for more information.

Medicare Part D Disclosures due by Feb. 29, 2024 for Calendar Year Plans

Mon, 26 Feb 2024 02:35:01 GMT

Each year, group health plan sponsors are required to complete an online disclosure form with the Centers for Medicare & Medicaid Services (CMS), indicating whether the plan’s prescription drug coverage is creditable or non-creditable. This disclosure requirement applies when an employer-sponsored group health plan provides prescription drug coverage to individuals who are eligible for coverage under Medicare Part D.

CMS Disclosure Deadline

The plan sponsor must complete the online disclosure within 60 days after the beginning of the plan year . For calendar year health plans, the deadline for the annual online disclosure is Feb. 29, 2024 (since 2024 is a leap year).

In addition to the annual disclosure requirement, the disclosure to CMS must be made whenever any change occurs that affects whether the coverage is creditable. More specifically, within 30 days after any change in the plan’s creditable coverage status or after the termination of a plan’s prescription drug coverage.

Online Disclosure Method

Plan sponsors are required to use the online disclosure form on the CMS creditable coverage website. This is the sole method for compliance with the disclosure requirement unless the entity does not have internet access.

The disclosure form lists the required data fields that must be completed in order to generate the disclosure notice to CMS, such as types of coverage, number of options offered, creditable coverage status, period covered by the disclosure notice, number of Part D-eligible individuals covered, date the creditable coverage disclosure notice is provided to Part D-eligible individuals, and change in creditable coverage status.

CMS has also provided guidance and instructions on how to complete the form.

Action Steps

To determine whether the CMS reporting requirement applies, employers should verify whether their group health plans cover any Medicare-eligible individuals (including active employees, disabled employees, COBRA participants, retirees, and their covered spouses and dependents) at the start of each plan year.

Employers that are required to report to CMS should work with their advisors to determine whether their prescription drug coverage is creditable or non-creditable. They should also visit CMS’ creditable coverage website , which includes links to the online disclosure form and related instructions.

Important Dates

Feb. 29, 2024

The deadline for sponsors of calendar year plans to complete an online disclosure form with CMS.

Oct. 14, 2024

The deadline for group health plan sponsors to provide creditable coverage disclosures to Medicare-eligible individuals.

The Importance of Proper Classification in General Liability and Workers' Compensation Insurance

Mon, 19 Feb 2024 18:02:04 GMT

In the complex world of business insurance, proper classification on your general liability and workers' compensation policies is not just a bureaucratic necessity – it's a critical component that can significantly impact your bottom line and overall business success. Being properly classified means accurately categorizing your business based on factors such as industry type, business size, and the level of risk associated with your operations. It ensures that you pay the right amount for your insurance coverage, comply with regulatory requirements specific to your industry, and have the appropriate coverage to protect your business from potential risks.

In this article, we'll explore why being accurately classified is so vital and delve into the potential implications of being incorrectly categorized.

Why Proper Classification Matters

1. Accurate Premiums: Proper classification ensures that you pay the right amount for your insurance coverage. Insurance premiums are calculated based on factors such as industry type, business size, and the level of risk associated with your operations. Incorrect classification can result in either overpaying for coverage you don't need or being underinsured, leaving your business exposed to unforeseen risks.

2. Compliance with Regulations: Adhering to regulatory requirements is a fundamental aspect of running a business. Different industries have specific rules and regulations governing insurance coverage. Being properly classified ensures that your business is compliant with these regulations, reducing the risk of fines or legal repercussions.

3. Accurate Coverage: Proper classification ensures that you have the right coverage for potential risks associated with your industry. In the event of a claim, having the correct classification means that your insurance policy is more likely to cover the damages or liabilities, providing the financial protection your business needs.

Implications of Incorrect Classification

1. Financial Consequences: Incorrectly classified businesses may face financial consequences on multiple fronts. Overpaying for unnecessary coverage strains resources, while being underinsured can result in significant out-of-pocket expenses when a claim arises.

2. Legal Complications: Misclassification may lead to legal challenges, especially in workers' compensation cases. If an employee is injured on the job and your classification doesn't accurately reflect your operations, you may find yourself in legal battles, facing potential lawsuits, fines, and increased insurance costs.

3. Damage to Reputation: Inaccurate classification can harm your business's reputation. Inconsistent or incorrect information can lead to mistrust among clients, partners, and employees, potentially impacting your ability to secure contracts or attract top talent.

Proper classification on your general liability and workers' compensation insurance policies is not just a matter of administrative convenience – it's a strategic decision that can significantly impact the financial health, compliance, and reputation of your business. Taking the time to ensure accurate classification is an investment in the long-term success and resilience of your enterprise. Regularly reviewing and updating your insurance policies to account for any changes in your business operations will help you stay ahead and mitigate potential risks effectively.

7 SECURE 2.0 Provisions to Boost Small Business Retirement

Wed, 14 Feb 2024 20:43:12 GMT

The Securing a Strong Retirement Act of 2022 (SECURE 2.0) has emerged as a significant milestone to improve small businesses’ access to retirement benefits. SECURE 2.0 builds on the initial 2019 SECURE law. The act focuses on retirement savings, such as 401(k) and 403(b) plans and individual retirement accounts (IRAs). The comprehensive rule was enacted on Dec. 29, 2022, and many of its provisions apply specifically to small businesses with 100 or fewer employees.

A survey by ShareBuilder 401k revealed that only one-quarter (26%) of small businesses offer 401(k) plans. Many respondents stated that they didn’t offer plans because they thought their business was too small to qualify, they couldn’t afford to match contributions, and retirement plans were too expensive to set up and manage. Fortunately, by embracing new provisions offered through SECURE 2.0, small businesses can better support workers’ retirement plans.

This article explores key aspects of SECURE 2.0 that small businesses should be aware of and suggests how they can use them to their advantage.

Understanding SECURE 2.0 Provisions

Congress’s passing of SECURE 2.0 is meant to improve small businesses’ access to retirement benefits, improve retirement rules and encourage more retirement savings. The act contains more than 90 retirement-related provisions, so consider these seven favorable provisions impacting small businesses:

1. Startup credit —The startup credit will cover 100% (up from 50%) of administrative costs up to $5,000 for the first three years of plans 1. established by employers with up to 50 employees. Small businesses joining a multiple employer plan (or MEP) are also eligible for the credit. The tax credit offering incentivizes employers by limiting the administrative burdens of establishing and managing retirement plans.

2. Starter 401(k) plans —Starting in 2024, employers who don’t already offer retirement plans can offer a starter 401(k) or safe harbor 403(b) plan to employees who meet age and service requirements. The starter plan provides an ideal first step for small businesses since employers aren’t required to match contributions. With this provision, even the smallest businesses can offer their employees something to help with retirement. Through this provision alone, the American Retirement Association estimates that 19 million workers will gain access to a workplace retirement plan.

3. Automatic enrollment —Beginning in 2025, many 401(k) and 403(b) plans will be required to enroll eligible participants automatically; however, employees may opt out of coverage. Remember, there’s an exception for small businesses with 10 or fewer employees and new businesses under 3 years old. The expansion of automatic enrollment is meant to help workers—especially younger and lower-paid workers—save for retirement.

4. Required minimum distribution (RMD) —At a certain age, savers must start withdrawing a minimum amount from specific retirement accounts, including 401(k) and traditional IRAs. Since Jan. 1, 2023, a provision for later-stage savers increased the RMD age to 73—and, in 2033, the RMD age will increase to 75. Furthermore, starting this year, Roth contributions won’t be included when calculating the RMD.

5. Part-time worker offerings —Starting in 2025, employers will be required to allow part-time employees with more than 500 hours per year after two consecutive years of service to participate in their retirement plan. Employees exceeding 1,000 hours of service will be included in plans after one year of service. This will increase the number of workers eligible to contribute to employer-sponsored retirement plans.

6. Student loan matching —Individuals with student loans can balance saving for retirement and repaying student loans instead of choosing one or the other. Starting in 2024, when a borrower makes a qualified student loan repayment, their employer may match that amount by contributing to a 401(k) plan, 403(b) plan or SIMPLE IRA.

7. 529 plans —A 529 plan (or college savings account) is a tax-advantaged plan used to pay for education expenses. Starting January 2024, 529 beneficiaries can roll up to $35,000 to a Roth IRA from a 529 plan if it’s been open for at least 15 years. Previously, 529 accountholders faced taxes and penalties for nonqualified withdrawals, so this change allows beneficiaries to roll leftover 529 funds (e.g., unused educational funds) to the beneficiary’s Roth IRA to help save for retirement.

SECURE 2.0 changes may help American workers save for retirement while balancing current expenses. In turn, these changes also allow small businesses to support their employees with retirement savings, which can improve their attraction and retention efforts.

Summary

With most American workers employed by small businesses, employers must be empowered with the tools and resources to offer workers retirement options. Although complex, SECURE 2.0 presents many opportunities for small businesses to strengthen their employee benefits and support the overall financial well-being of their workforce.

It’s critical for employers to stay informed on SECURE 2.0 changes and be proactive in their adoption. Contact us today for more workplace guidance.

Ways AI Will Impact the Workplace in 2024

Thu, 01 Feb 2024 14:37:32 GMT

Artificial intelligence (AI) garnered attention from every industry in 2023, revolutionizing the way organizations operate and make decisions. Many employers adopted this technology to streamline operations, enhance workflows and improve customer experience. Looking ahead, organizations are expected to adopt AI at an even more rapid pace. According to Grand View Research, AI has an expected annual growth rate of 37.3% between 2023 and 2030, indicating the growing impact of AI technology in the coming years.

In 2024, employers are expected to increasingly rely on AI to make critical business decisions and improve productivity. Savvy employers will stay current on evolving legal, ethical and transparency issues surrounding the heightened adoption of AI in the workplace. This article discusses four key impacts AI will have on workplaces in 2024.

1. Enhanced Decision-making Capabilities

In 2023, many employers adopted AI to streamline HR and managerial functions such as hiring, onboarding, training and open enrollment. As this technology advances, employers will likely increasingly rely on AI to support HR professionals and managers in areas where they are inexperienced or burnt out. For example, in 2024, AI may be used to create thoughtful performance reviews and career coaching and identify internal growth opportunities for employees, empowering organizations to grow and upskill their workforce.

In addition, as employers place more trust in AI’s decision-making capabilities, organizations may rely on this technology for cybersecurity. In this capacity, AI’s ability to rapidly sift through large amounts of information, gain insights and create business strategies may proactively identify and mitigate potential cyberthreats to protect company data.

2. Increased Productivity

Chatbots and virtual assistants showed significant potential in 2023, with the ability to enhance the employee experience, respond to customer inquiries, and perform mundane and repetitive tasks. These capabilities can free employees to focus on solving more complex issues more efficiently. A 2023 report by management consulting company Mckinsey & Company found that current generative AI and other technologies can potentially automate work activities that take up 60% to 70% of employees’ time today. As AI capabilities advance, these technologies may also create workplace-specific algorithms to identify project misalignments and tasks requiring immediate attention. Thus, this year, these algorithms will be increasingly used to bolster employee productivity and ensure customers receive timely and personalized feedback on complex queries.

3. Greater Focus on Legality, Ethics and Transparency

AI legislation is beginning to evolve, with various states and cities—such as Illinois, Maryland and New York City—creating laws regarding its use. The U.S. Equal Employment Opportunity Commission has also prioritized the enforcement of applicable federal laws concerning AI in employment. These regulations are expected to expand further as lawmakers face growing pressure to regulate its use. As such, remaining abreast of legal developments regarding AI will be crucial for organizations this year. Failing to comply with applicable regulations could result in costly lawsuits, fines and penalties, as well as reputational damage.

Employers may also focus more on ensuring that AI systems are fair and transparent. This will include understanding the sources used to train AI, potential biases in these datasets and the ethical implications of AI-powered decisions. Employee training will also be critical to ensuring safe and ethical use. A recent survey by social networking platform FishBowl found that just 32% of individuals who use AI tools at work do so with their boss’s knowledge. Moreover, according to the Josh Bersin Company, only 4% of organizations have a defined strategy for AI in HR. In 2024, employers are expected to prioritize creating formal AI policies to meet evolving legal, ethical and transparency standards.

4. Heightened Focus on Skills-based Hiring

Increased adoption of AI is expected to change the qualities employers look for in employees in 2024 and beyond. There will likely be a greater focus on hiring employees with behavioral skills, such as data analysis, AI literacy and the ability to work alongside AI systems. “Human” soft skills, such as problem-solving and communication, that AI can’t replicate, will also be in high demand. Additionally, as generative AI takes over certain workplace tasks, it will also create the need for new job roles and requirements. For example, AI ethicists, data curators and algorithm trainers may become emerging professions. AI proficiency may become a popular requisite on job postings as employers create more AI-centric business strategies. As such, the 2024 workforce will likely be defined by the ability to learn and work productively with AI technology.

Conclusion

The prevalence of AI in the workplace is a trend that isn’t going away. As this technology advances, employers will increasingly integrate AI into everyday operations and decision-making processes. However, the relative newness of this technology has the potential to create legal and ethical issues for organizations that adopt AI without proper protocols in place. Employers can stay ahead by monitoring AI trends impacting the workplace in 2024 and beyond.

7 Key Employee Benefits Trends in 2024

Wed, 31 Jan 2024 14:45:18 GMT

Attracting and retaining employees has challenged employers since the onset of the COVID-19 pandemic. In 2024, the labor market is expected to cool slightly; however, competition for talent will remain. As such, employers must remain agile and adapt to developing labor and market trends that will shape the market in 2024. In particular, current labor challenges are forcing employers to find ways to balance rising health care costs and inflation while providing employees with benefits they value and need. Understanding this year’s key employee benefits trends can help employers attract and retain talented individuals in an evolving labor market.

This article discusses seven key employee benefits trends in 2024.

1. Managing Health Care Costs

High inflation, provider shortages, an increase in serious chronic conditions and deferred care due to the pandemic continue to drive health care costs. According to several industry surveys and reports, employers anticipate health care costs to grow between 6% and 8.5% in 2024, the largest increase in more than a decade. This year, employers may struggle to mitigate skyrocketing health care costs while keeping benefits affordable for employees. Thus, many employers will plan and implement multiple cost-saving strategies in 2024 to mitigate rising health care costs, such as:

Modifying health plan designs
Incorporating health care analytics
Using artificial intelligence to streamline administrative workflows, help employees make informed benefits decisions and decrease costs
Implementing pharmacy management strategies
Maintaining full coverage of recommended prevention and screening services
Tailoring benefits to meet employees’ specific needs
Expanding voluntary benefits offerings
Improving employee health care literacy
Investing in more virtual health opportunities
Incentivizing employees to seek cost-effective care options
Revisiting cost-sharing arrangements

2. Increasing Personalization and Flexibility

The modern workforce is comprised of four or five generations of workers from various backgrounds. In 2023, many employers struggled to find a benefits plan that satisfied their entire workforce. According to the Life Insurance Marketing and Research Association’s 2023 Workforce Benefits Study, nearly a third of all employers said that meeting the needs of their multigenerational workforce was a primary challenge. In 2024, employers will increasingly offer personalized and flexible benefits to address the unique needs and expectations of individual employees. The following are popular options for benefits customization:

Flexible spending accounts
Flexible work arrangements
Customized retirement plans
Convertible paid time off
Domestic partner benefits
Broader medical coverage
Expanded leave
Diverse wellness programs
Personalized learning and development opportunities

3. Prioritizing Employee Mental Health

Employee mental health is a priority for many employers in 2024. Countless employees are experiencing a combination of mental health concerns, including stress, lack of motivation and reduced focus. High inflation and widespread financial stress are exacerbating these issues, impacting workplace productivity, retention and morale. Given the impact employees’ mental health can have on an organization, employers are considering employees’ mental health while making important business decisions in 2024. To this end, savvy employers will continue prioritizing employee mental health in 2024 with the following methods:

Finding specialized mental health treatment from chosen vendors
Providing meditation and mindfulness resources
Expanding employee assistance programs to address burnout and other mental health challenges
Offering virtual therapy sessions
Providing managers with training to recognize employee behavioral issues
Expanding mental health service offerings
Investing in programs that build resiliency and improve coping strategies
Conducting anti-stigma behavioral campaigns

4. Focusing on Belonging

While more employers invested in diversity, equity and inclusion (DEI) initiatives in 2023, many employees—especially those from underrepresented and marginalized groups—continue to feel excluded. These emotions can undermine work performance, inhibiting creativity, participation and willingness to collaborate. They can also increase the risk of burnout and stress, leading to increased turnover and higher rates of absenteeism.

In 2024, employers are expected to address belonging to bridge the gap between existing DEI initiatives and the impact felt by employees. With that in mind, many employers are more often focusing on the factors that impact workplace belonging, such as organizational culture, leadership behaviors and personal relationships among employees. Others are introducing initiatives to foster belonging, such as:

Encouraging supervisors to check in with employees
Promoting social bonds within the organization
Encouraging open-door policies
Creating time for employees to connect socially
Facilitating trusting relationships (e.g., mentorships)
Celebrating employee achievements
Involving employees in critical business decisions
Creating fair and transparent compensation and promotion practices

5. Expanding Family-building and Reproductive Health Benefits

Reproductive health care benefits became a key issue for employers in 2023 after the U.S. Supreme Court’s Dobbs v. Jackson Women’s Health Organization decision ended federal protections for abortion rights and permitted states to implement their own regulations. Numerous employers will continue to expand reproductive health benefits in 2024 to meet employee needs and remain competitive.

Additionally, more employers are offering family-building benefits, as they have proven to be highly valued among employees who are looking to start or build their families. The impact of these benefits also often extends beyond affected individuals to make employees feel welcomed and supported in the workplace, improving engagement, productivity and retention. In the next year, many employers are expanding benefits offerings to include the following:

Paid parental and adoption leave
Child care subsidies
Flexible scheduling and remote and hybrid work options
Surrogacy benefits
Family planning assistance
High-risk pregnancy care
Pregnancy, lactation, postpartum and menopause support
Testosterone deficiency treatments

Employers providing legal reproductive care benefits should assess the implications of these offerings as reproductive health care laws continue to evolve.

6. Balancing Flexibility With Return-to-Office Mandates

Many employers responded to 2023’s tight labor market by offering remote and flexible work opportunities. As some employers begin issuing return-to-office mandates in 2024, organizations that are rigid in their policies may risk losing talented individuals and DEI efforts. They may also struggle to attract new employees from a smaller talent pool. As such, in 2024, proactive employers will focus on balancing employee expectations and needs with the benefits of having employees in the office. For instance, they may offer hybrid work options as a compromise for employees who are happier and more productive with flexible work arrangements.

Additionally, employers are increasingly focusing on creating safe, empathetic and transparent workplace environments to promote employee well-being as they return to the office. Some employers are also offering incentives for in-person employees, such as:

Commuter benefits
Child care benefits
Catered meals

7. Prioritizing Preventive Care Services

In 2023, record-high inflation and skyrocketing medical care costs prevented numerous employees from seeking necessary preventive care for fear of incurring medical debt. However, avoiding medical care can worsen long-term health outcomes and increase costs for both employers and employees by preventing the early detection of serious illnesses. As employers struggle to mitigate rising health care costs in 2024, many will focus on keeping employees healthy and providing benefits education to help guide them on their journeys to be educated health care consumers, maximize their benefits and understand the importance of routine care.

Summary

Although every workplace is different, employers who understand current benefits trends will be better equipped to provide employees with the benefits they desire and need. In an evolving labor market, an attractive benefits plan is critical to maintaining a healthy, happy and productive workforce, which can ultimately impact organizational productivity, engagement and revenue.

Leap Year’s Impact on Compliance Requirements in 2024

Mon, 29 Jan 2024 16:55:21 GMT

In 2024, leap day will occur on Thursday, Feb. 29. A leap year can create administrative and compliance challenges for organizations every four years. For example, a leap year can impact payroll processing or tax reporting obligations by adding an extra payday to the year. This can increase the number of pay periods from 26 to 27 for employees paid biweekly or from 52 to 53 for employees paid weekly, potentially altering how employees are paid. As a result, it’s essential that employers understand their compliance obligations and assess how an extra day in 2024 may impact any compliance requirements and deadlines.

This article explores how the 2024 leap year can impact compliance deadlines and how employers can proactively prepare and navigate any potential changes. However, the compliance considerations presented in this article are only examples. Employers should consult with their legal counsel to address any specific issues.

Payroll Considerations

Adding an extra day in February 2024 can create an additional pay period for employees who are paid on a weekly or biweekly basis. In 2024, there will be 53 Mondays and 53 Tuesdays. Therefore, weekly or biweekly salaried employees paid on either of these days will have an extra pay period. However, salaried employees paid monthly or semimonthly and employees paid hourly will not be impacted.

When faced with an extra pay period, most employers decide not to change how they pay employees each pay period despite the additional cost. As a result, impacted employees receive an additional pay period for the year, resulting in slightly higher salaries. Other organizations may opt to change their pay frequency or date to account for a leap year.

Some employers may decide to keep employees’ total annual salary the same but spread it out over the entire year. Employers can do this by counting the number of pay periods that will occur during the year and adjusting employee paychecks to account for an extra pay period. However, because of the extra pay period, employees would receive slightly less each paycheck, even though their total annual salary will remain the same. This can create confusion or negatively impact employees unless employers explain ahead of time why workers will receive slightly less each pay period, allowing employees time to prepare. Additionally, employers can explain that an extra pay period may impact employee deductions for benefits and contributions to retirement or health savings plans.

IRS tax withholding requirements do not change when there’s an additional pay period during the year. Therefore, employers must adjust their withholding calculations to ensure they withhold sufficient federal, state and local income taxes. To help avoid errors and ensure accurate payroll calculations, employers can review their payroll systems to ensure they can address leap-year payroll correctly. This can include accounting for an additional pay period, if applicable; withholding taxes correctly; and reviewing pay dates so employees are paid on time. Organizations can also prepare for an additional pay period by ensuring proper budgeting and cash flow to avoid any issues.

Benefits Considerations

Health plan deductions are typically determined by the number of pay periods. As a result, a leap year may force employers to recalculate health plan deductions. Additionally, a leap year can impact employee contributions to 401(k)s, health savings accounts and flexible savings accounts, requiring employees to adjust how much is deducted from each paycheck to ensure they contribute the maximum amount by the end of the year. Therefore, it’s important employers communicate how a leap year may impact employee contributions and allow employees sufficient time to adjust.

The IRS recently finalized reporting regulations under the Affordable Care Act that established a permanent 30-day automatic extension from Jan. 31 for employers to furnish Form 1095-C to employees. According to IRS guidance, applicable large employers must furnish Forms 1095-C to their employees no later than March 2. However, because of the 2024 leap year, the deadline this year is March 1, 2024.

Moreover, the Medicare Modernization Act requires organizations whose health care policies include Medicare prescription drug coverage to notify Medicare-eligible policyholders whether their prescription drug coverage is creditable. These entities must report the credible coverage status of their prescription drug plan to the Centers for Medicare (CMS) no later than 60 days from the beginning of a plan year. If a plan year starts at the beginning of the year, employers typically have until March 1 to report to the CMS. In 2024, however, the reporting must be done by Feb. 29.

Employer Compliance Considerations

The 2024 leap year may also impact certain employer compliance requirements. Employers should review their compliance obligations to ensure they avoid any potential violations.

While many laws are silent on the impact of a leap year, employer obligations are not altered. For example, the Fair Labor Standards Act (FLSA), which establishes minimum wage, overtime pay, recordkeeping and youth employment standards, does not specifically address leap-year considerations. However, since a leap year can create 27 or 53 pay periods (rather than 26 and 52), an employee’s weekly salary may drop below the federal or state-exempt salary threshold in certain circumstances. If this occurs, that employee would lose their FLSA exempt status, which could result in wage and hour violations if not properly addressed. Calculating any pay period adjustments at the start of the year can help employers prepare and avoid potential FLSA overtime and meal and rest break violations that may occur if employees lose their FLSA exempt status due to the additional pay period.

Additionally, employers can review offer letters and other compensation-related documents, including collective bargaining agreements, to determine how best to account for any extra pay periods. In some instances, these documents may state how frequently employees must be paid (e.g., weekly, biweekly). Reviewing these documents can help organizations comply with their legal obligations when determining how to adjust employee compensation during a leap year.

Summary

The additional day in 2024 may present various administrative and compliance challenges for some organizations. Understanding how a leap year impacts compliance requirements can enable employers to prepare and help them avoid costly mistakes. By taking a proactive approach and reassessing timelines, employers can help ensure they meet any compliance requirements and mitigate any potential legal risks.

DOL Increases Civil Penalty Amounts for 2024

Fri, 26 Jan 2024 16:31:07 GMT

The Department of Labor (DOL) has released its 2024 inflation-adjusted civil monetary penalties that may be assessed on employers for violations of a wide range of federal laws, including:

The Fair Labor Standards Act (FLSA)
The Employee Retirement Income Security Act (ERISA)
The Family and Medical Leave Act (FMLA)
The Occupational Safety and Health Act (OSH Act)

To maintain their deterrent effect, the DOL is required to adjust these penalties for inflation, no later than Jan. 15 of each year. Key penalty increases include the following:

The maximum penalty for violations of federal minimum wage or overtime requirements increases from $2,374 to $2,451 per violation.

The maximum penalty for failing to file a Form 5500 for an employee benefit plan increases from $2,586 to $2,670 per day.

The maximum penalty for violations of the poster requirement under the FMLA increases from $204 to $211 per offense.

Action Steps

Employers should become familiar with the new penalty amounts and review their pay practices, benefit plan administration and safety protocols to ensure compliance with federal requirements.

ACA Reporting Deadlines and Penalties Cheat Sheet

Wed, 24 Jan 2024 17:45:20 GMT

Employers subject to Affordable Care Act (ACA) reporting under Internal Revenue Code Sections 6055 or 6056 should prepare to comply with reporting deadlines in early 2024. The following employers are subject to ACA reporting under Sections 6055 and 6056:

Employers with self-insured health plans (Section 6055 reporting); and
Applicable large employers (ALEs) with either fully insured or self-insured health plans (Section 6056 reporting). ALEs are employers with 50 or more full-time employees (including full-time equivalent employees) during the preceding calendar year.

Reporting Deadlines

The following chart provides the ACA reporting due dates for 2023 calendar year reporting. Note that there are no reporting obligations for non-ALEs without a plan or non-ALEs with fully insured plans (because non-ALEs are not subject to Section 6056 reporting and the carrier will complete Section 6055 reporting).

*Beginning in 2024, reporting entities that file at least 10 returns during the calendar year must file electronically . Reporting entities must aggregate most information returns, such as Forms W-2 and 1099, to determine if they meet the 10-return threshold for mandatory electronic filing.

Adjusted Reporting Penalties

The following chart provides the different types of penalties that can apply for 2023 returns and individual statements that are filed and furnished in 2024. A reporting entity that fails to comply with the ACA reporting requirements may be subject to the general reporting penalties for:

Failure to file correct information returns (under Code Section 6721); and
Failure to furnish correct payee statements (under Code Section 6722).

However, penalties may be waived if the failure is due to reasonable cause and not willful neglect. Penalties may also be reduced if the reporting entity corrects the failure within a certain period of time, as shown below.

*The maximum penalty amounts are different for small businesses and large businesses. For purposes of the penalty maximum, a small employer is one that has average annual gross receipts of up to $5 million for the three most recent taxable years. There is no maximum penalty for intentional disregard.

Top 2024 Wellness Trends

Wed, 17 Jan 2024 22:19:33 GMT

As the workplace landscape continues to evolve, so does the understanding of employee wellness. In 2024, organizations are embracing innovative strategies to prioritize their workforce's physical, mental and financial health. While organizations may have already expanded their mental health support in past years, some are now pivoting and embracing a holistic approach to employee well-being.

This article highlights five employee wellness trends to look out for in 2024.

1. Supporting Employee Burnout

Employers shouldn’t expect employee burnout to disappear anytime soon. A 2024 trends report from wellness portal provider MediKeeper notes that toxic workplaces, long hours, understaffing, lack of recognition, interpersonal conflict and unclear or inexplicable workplace policies are contributing to employee burnout. As such, organizations may prioritize strategies to prevent and alleviate burnout. Flexible work arrangements, realistic workload expectations and designated downtime are being implemented to help employees maintain a healthy work-life balance. Moreover, companies could encourage open communication channels that allow employees to voice their concerns and seek support as needed.

On a related note, many employers will renew their focus on mental health in 2024 as they acknowledge the impact of mental health on employees’ overall well-being. Employee assistance programs (EAPs), counseling services and stress management workshops are increasingly becoming key components of workplace wellness initiatives. More employers are also investing resources to destigmatize the topic of mental health (e.g., anti-stigma campaigns, mental health literacy training and EAPs) and foster a culture where employees feel comfortable seeking mental health support.

2. Integrating Technology

Technological advancements will shape a new employee wellness landscape that incorporates digital health platforms, wearable technology and artificial intelligence (AI) solutions. More employers will explore these types of technology to understand how to integrate them into wellness or employee-focused programs.

Technology can enable real-time health monitoring, personalized wellness plans and immediate 24/7 access to health resources and services. Virtual health platforms can help overcome barriers to health care access. In 2024, apps are expected to go beyond fitness tracking and feature mindfulness exercises, nutritional guidance and personalized wellness plans. Despite their limitations, AI-driven approaches have the potential to promote preventive health care and detect or manage health issues. Personalized data allows employees to understand their health better and make informed decisions about their health or lifestyle. Employers are leveraging technology to tailor and improve their employees’ well-being experiences.

3. Expanding Financial Wellness Programs

Money is a top stressor for employees and concerns have been exacerbated by prolonged inflation pressures throughout 2023. Financial stress can significantly impact an individual's mental and emotional health. In 2024, employers are expected to extend their wellness programs to include financial education and support to help contribute to a more secure and stable workforce.

Employers can consider the following common personal financial goals as they design their financial support efforts:

Building an emergency savings
Navigating cashflow changes
Managing debt
Choosing proper health insurance and benefits
Preparing for significant life events
Saving for retirement

Many organizations employ a multigenerational workforce, which means employees often face unique financial stressors. To provide relief, some employers offer financial wellness programs that vary in complexity but can include virtual personal financial planning meetings, tuition reimbursement and seminars. EAPs can also help employees navigate financial challenges. The idea is to provide a wide variety of services for the workforce. Employers can help reduce employee financial stress by exploring financial wellness resources and support options and offering attractive programs for current and prospective employees. Financial wellness is a critical component of well-being and can be a competitive offering.

4. Taking a Holistic Approach to Wellness

The days of compartmentalizing physical, mental and emotional well-being are over. In 2024, organizations are adopting a holistic approach that considers the entire employee. For example, holistic wellness programs encompass nutrition, fitness, mental health and stress management. An integrated approach aims to create a work environment that nurtures every aspect of an employee's well-being, fostering a sense of balance and resilience.

This renewed focus on holistic wellness is not just a trend; it's a fundamental shift in how companies approach employee care. Organizations can create a supportive culture that encourages education, open conversations and utilization of available resources by prioritizing mental and financial well-being in health and wellness initiatives.

5. Cultivating a Company Culture of Care

Perhaps the most transformative trend is the conscious effort to cultivate a culture of care within organizations. This goes beyond workplace policies and programs; it's about fostering an environment where employees feel seen, heard, valued and supported. Team-building activities, mentorship programs and leadership training focused on empathy and emotional intelligence are becoming integral components of organizational efforts.

Additionally, psychological safety is a growing priority for employers. Being psychologically safe means employees feel secure in talking and being vulnerable in front of others. Organizations benefit when employees feel comfortable asking for help, sharing ideas or challenging the status quo without fear of negative consequences. Leaders play an essential role in nurturing psychological safety in the workplace, so it starts at the top. Employers can foster a psychologically safe work environment by reflecting on leadership styles, accommodating dispersed employees and demonstrating concern for employees. Employee wellness initiatives play perfectly into this. Employers can proactively train employees and managers on psychological safety to raise awareness and teach supportive behaviors and practices that foster trust and transparency around health and wellness topics (e.g., burnout and stress). Remember that psychological safety is a key work dynamic that takes time to build but just moments to destroy. It comes down to employers creating opportunities for open feedback and dialogue so employees can be themselves in the work environment.

Summary

Employee wellness is taking center stage in 2024, with organizations recognizing the interconnected nature of physical, mental and financial health. More employers are paving the way for a holistic approach to workplace wellbeing. As these trends evolve, employees can expect a more supportive and nurturing work environment that values their overall health and happiness.

Organizations can start by evaluating current wellness initiatives and thinking about ways to improve them. To ensure offerings and investments resonate with the workforce, it can be helpful to survey employees first and see what they find most valuable and necessary for their overall well-being.

Breaking Down Auto Insurance Costs: EVs and Popular Vehicles

Fri, 05 Jan 2024 19:23:57 GMT

Auto insurance costs can be a perplexing landscape, especially with the growing popularity of Electric Vehicles (EVs). Understanding the dynamics behind insurance expenses for EVs and traditional vehicles is crucial for making informed decisions. In this article, we delve into the surprising realities of insuring EVs and the broader considerations for popular vehicles.

Electric Vehicle Insurance Expenses

The cost of insuring electric vehicles (EVs) often exceeds expectations, with rates generally higher than those for traditional gas vehicles. This increase is attributed to the elevated average cost of EVs, standing at $52,345 according to Cox Automotive, impacting collision and comprehensive insurance expenses. To provide context, this surpasses the average costs for other vehicle types:

$31,992 for a mid-size gas car
$35,542 for a compact gas SUV
$46,100 for a mid-size gas SUV

Factors such as the complexity of repairs, necessitating specialized professionals, contribute to higher insurance costs for EVs. Additionally, the extra weight of EVs due to battery components can lead to more substantial damage in collisions with lighter vehicles, resulting in elevated liability insurance payouts.

Understanding Insurance Costs for Popular Vehicles

The choice of your vehicle significantly influences your car insurance expenses. The potential damage your car can cause to others impacts your liability insurance costs, covering damage or injuries to others or their property. The value of your vehicle and its repair costs play a role in determining the expenses for collision and comprehensive coverage. Car insurance companies consider the historical claims associated with your vehicle make and model when determining your auto insurance rates.

As you navigate the terrain of auto insurance costs, whether for EVs or popular gas vehicles, being informed is your best ally. The intricacies involved highlight the need for tailored insurance that comprehensively addresses the unique features and potential risks associated with your chosen vehicle. By understanding these nuances, you can make well-informed choices that align with both your budget and coverage needs.

Navigating Winter Roads: Essential Driving Tips

Wed, 03 Jan 2024 23:06:12 GMT

Traveling during severe winter weather can be daunting and poses serious dangers. According to the AAA Foundation for Traffic Safety (as quoted by AAA East Central), winter storms, bad weather and poor road conditions contribute to nearly half a million crashes and over 2,000 road deaths annually in the U.S. To stay safe during winter driving, it’s important to understand how cold conditions change the way you drive and how you prepare. Below are key tips for navigating snowy and icy conditions with confidence.

Cold Weather Driving Tips

When temperatures drop, it’s essential to think ahead. A well-prepared vehicle can make all the difference. Keep essentials in your car, such as:

extra food and water
warm clothing
a flashlight and a glass scraper
blankets, medications, and other must-haves

And while you’re preparing your kit, remember a few mechanical basics. Make sure your tires are properly inflated and have enough tread to handle slick winter roads. It also helps to keep at least half a tank of fuel at all times. Winter delays and detours can be unpredictable.

One more thing: never warm up your car in an enclosed space , like a garage, and avoid using cruise control when the roads are icy or snow-covered.

Tips for Driving in the Snow

Winter driving requires slowing down and being intentional. If conditions are severe, it’s always safest to simply stay home unless absolutely necessary. But when you do need to head out, keep the following in mind:

Drive slowly and adjust your speed as traction decreases
Accelerate and decelerate gently to prevent skids
Increase your following distance and aim for five to six seconds instead of the typical two or three

Your brakes are key here as well. Know how they respond on slippery surfaces and use firm, steady pressure when you need to stop. Avoid sudden halts; sometimes maintaining a slow roll is safer until traffic allows you to proceed. And if you’re approaching a hill, don’t power up too aggressively. Instead:

Build momentum on flat ground
Avoid stopping midway up
Maintain steady movement to prevent slipping back on ice

Tips for Long-Distance Winter Trips

A winter road trip can be totally manageable, as long as you plan ahead. Before hitting the highway, it’s smart to have your vehicle inspected (battery, brakes, tires, fluids). A quick check now can prevent a dangerous stall later. You’ll also want to:

Review the weather forecast along your entire route
Delay your trip if major storms are expected
Let a friend or family member know your destination, route, and estimated arrival time

Staying connected matters more in winter, especially when conditions can change quickly.

If You Get Stuck in the Snow

Getting stuck can be stressful, but staying calm and following a few simple steps keeps you safe. The most important thing: stay with your vehicle . It provides shelter and helps rescuers locate you.

Avoid exhausting yourself by digging too aggressively. Instead, focus on making yourself visible by using brightly colored items or fabric. A few additional safety musts:

Clear your exhaust pipe to prevent carbon monoxide poisoning
Use anything available, like blankets, floor mats, newspapers for insulation
Run your engine and heater sparingly to conserve fuel, just enough to stay comfortably warm

Simco wishes you safe travels!

Have questions about auto insurance? Click here .

Establishing Inclusive Hiring and Onboarding Practices

Tue, 02 Jan 2024 02:03:51 GMT

The hiring and onboarding processes are crucial to ensure employees feel welcome and included. Onboarding sets the tone for an employee’s tenure with the company, laying the foundation of their work experience. Effective hiring and onboarding practices can make employees feel seen and valued from their first job day, impacting retention, engagement and productivity. An inclusive work environment is also highly attractive to workers and may help employers gain a competitive advantage in the labor market. Research from the American Psychological Association’s 2023 Work in America survey found that 94% of employees say it’s somewhat or very important to them that their workplace is somewhere they feel they belong.

This article provides guidance to employers on how to create and evaluate inclusive hiring and onboarding policies.

Creating Inclusive Hiring and Onboarding Practices

Some employers may focus more on preparing new hires to contribute and be productive rather than helping them settle in. Unfortunately, this can lead to exclusive hiring and onboarding practices. Employees who don’t feel welcomed or accepted by their employer may leave an organization quickly in search of a more inclusive employer. In fact, nearly 40% of U.S. employees would switch jobs to be part of a more inclusive workplace culture, according to a survey by QuestionPro Workforce and EQ Community. As employees’ first impressions of an organization are typically formed during their first few months, it’s vital that organizations implement inclusive hiring and onboarding practices, such as the following:

Assess job descriptions. Employers’ use of language in job descriptions can significantly impact how job candidates feel about an organization. Exclusive language can discourage talented job applicants from applying for open positions. For example, phrases like “must be a native English speaker” can discourage people who speak English as a second language from applying. Employers should evaluate their job postings for unintentionally exclusive language and rewrite them as needed.

Emphasize diversity, equity, inclusion and belonging (DEIB) during hiring and onboarding. Job candidates and new hires want to know what their employers value. The hiring and onboarding processes are an opportunity for employers to emphasize the importance of DEIB and share how their organization strives to create a more inclusive environment. This may include providing resources on how to get involved in workplace DEIB efforts (e.g., employee resource groups).

Prepare the team for new hires. Adding a new employee to a team will inevitably affect team dynamics. It’s crucial that every team member understands their responsibility to create an inclusive and welcoming environment. Managers can prepare their teams for new hires by establishing clear expectations and responsibilities for existing employees. Employers can also provide new hires with a mentor or advisor to ensure they don’t feel neglected or overlooked during onboarding.

Establish inclusive self-identification policies. Employees want to feel valued and respected as their authentic selves at work. For employers, this means respecting the way employees self-identify. Employers can create an inclusive environment for new hires by asking for their preferred pronouns, encouraging employees to use their pronouns in their email signatures and educating existing employees when needed.

Personalize the onboarding process. While certain aspects of the onboarding process may need to remain uniform (e.g., mandatory forms and company policy), employers can help new hires feel welcome by personalizing certain aspects. Personal touches, such as introductory meetings with co-workers and managers, can help employees feel welcomed after joining an organization.

Maintain open communication. Employers should continue to check in with recent hires after the initial orientation process. This can help relieve employee anxieties, make new hires feel welcome and provide employees with a resource for any questions or issues.

Evaluating the Hiring and Onboarding Process

A strong first impression can help employers attract and retain employees from various backgrounds, cultivating a work environment that appeals to today’s talent. This can help employers be more productive and gain a competitive advantage over similar organizations. Employers can evaluate their hiring and onboarding processes and consider the following practices:

Enable individuals to report issues. Employers that allow applicants and employees to report accessibility issues with their website or job descriptions (e.g., providing a form or link) can quickly respond to improve the user experience. This shows potential job candidates that the organization cares about their experience and is committed to providing an inclusive experience for all users.

Ask for employee feedback. Employee feedback is essential to create inclusive hiring and onboarding experiences. Employers can ask new hires to share their experiences through multiple channels (e.g., in-person or anonymously) to improve their understanding of the onboarding experience and how to improve for future hires.

Evaluate critical metrics for success. Standard measures of positive hiring outcomes typically include employee performance, job satisfaction and organizational loyalty. Employers can assess critical metrics, such as retention rates and employee competency, to evaluate the success of inclusive hiring and onboarding practices. Employers may need to reevaluate and start again if inclusive measures don’t yield expected improvements.

Conclusion

Employers that make the extra effort to create inclusive hiring and onboarding practices may be more successful at creating diverse, productive and welcoming workplaces. This can boost attraction, improve workplace culture, strengthen employer branding, increase employee loyalty and ultimately impact an organization’s bottom line.

Contact Simco today for more workplace resources.

Understanding the Importance of Long-term Care Insurance

Tue, 02 Jan 2024 01:47:40 GMT

The American workforce has gotten older, with people staying in school longer and others delaying retirement. According to the U.S. Department of Health and Human Services, nearly 70% of 65-year-olds will need long-term care (LTC) in their lifetimes. As such, LTC insurance has become a crucial component of financial planning, offering a safety net for individuals facing extended periods of health care and assistance needs. As the workforce ages, employers should recognize the importance of offering comprehensive benefits.

This article explores the significance of LTC insurance, outlines the potential benefits and drawbacks of offering such coverage as a sponsored benefit, and offers best practices for employers to consider when incorporating these policies within their voluntary benefits offerings.

Overview of LTC Insurance

LTC refers to a wide array of medical care, personal assistance and social support services for people who are physically or mentally unable to independently care for themselves for an extended period. This care can be provided in a nursing home, an assisted living facility or one’s home. Individuals needing LTC usually require assistance performing basic activities for daily living or have severe cognitive impairment. Generally, the conditions that necessitate LTC are caused by accidents, illnesses or advanced age.

Unfortunately, LTC often carries substantial costs. That’s where LTC insurance can help. Such coverage can protect individuals against incurring large out-of-pocket expenses for LTC in the future through affordable monthly premiums now. There are two different types of LTC insurance policies available, including the following:

Individual LTC insurance

Group LTC insurance

Individual policies are generally purchased by people whose employers do not offer group policies, or by those who feel they need to supplement their employer-provided policies to obtain the most coverage possible. On the other hand, some employers and associations offer LTC insurance to employees in the form of group policies. In these cases, such coverage may not offer the same level of protection afforded by individual policies. Before purchasing group policies, comparing the level of protection offered and the level of protection guaranteed in comparable individual policies is wise. LTC insurance policies should also clearly state whether they are individual or group policies.

Pros and Cons of LTC Insurance

More employers are expanding their voluntary benefits offerings, including LTC insurance. This coverage augments a medical plan and helps protect employees’ retirement savings. Employers can offer LTC insurance to their employees as a voluntary benefit, allowing them to choose to enroll in the plan and pay the premiums themselves. Alternatively, some employers may contribute to the cost of LTC insurance premiums as part of their benefits packages.

If employers are considering offering LTC insurance as a sponsored benefit, they may start by weighing the pros and cons of doing so. Employee benefits have the potential to impact staff attraction, retention and well-being. As the workforce ages, employees are placing greater importance on benefits that address long-term health and financial security.

Specific advantages of providing LTC insurance as a sponsored benefit include the following:

Financial security —LTC insurance can help protect employees’ assets and savings from being depleted by the high cost of extended health care services. This financial security can contribute to a more stable and engaged workforce.

Tax advantages —In some cases, both employers and employees may benefit from tax advantages associated with LTC insurance premiums. Employers should explore these potential tax incentives to make the benefit even more attractive.

Workforce support —With many employees delaying retirement, employers are faced with an aging workforce. LTC insurance can be a proactive solution for companies looking to support the changing needs of their employees and foster a culture of care and concern.

There are also potential drawbacks of offering LTC insurance as a sponsored benefit, such as the following:

Cost concerns —One of the primary drawbacks for employers may be the cost associated with offering LTC insurance. Striking a balance between providing valuable benefits and managing expenses is crucial. Employers should assess their budgetary constraints and explore different insurance options for the most cost-effective solution.

Employee misunderstanding —LTC insurance can be complex, and employees may not fully understand its importance. Employers should invest in educational resources and communication strategies to ensure employees grasp the value of this benefit.

Employer Best Practices

When providing LTC insurance as a sponsored benefit, employers should note that employee education is critical. Simply offering LTC insurance as a voluntary benefit isn’t enough to encourage employee enrollment. Benefits, and insurance policies especially, are complex and require some education so employees can better understand these offerings and determine which ones are a good fit for their lives and budgets.

Here are some additional strategies for employers to consider when adding LTC insurance to their benefits offerings:

Switch to off-cycle enrollment. LTC insurance is complex, so off-cycle enrollment (outside the annual open enrollment period) can give employees more time to review this benefit and understand how it could meet their health care and financial needs.

Offer educational opportunities. When employees understand the risks associated with LTC, they may be more willing to start planning for this care and purchase coverage at a younger age. Educational workshops, seminars, team lunches and emails can help educate employees about the significance of LTC insurance. Bringing in insurance experts to explain the intricacies of this coverage and answer employees’ questions can demystify the process.

Personalize the experience. Personalized consultations with insurance representatives can help employees make informed benefits decisions based on their unique needs. A one-on-one approach can address specific concerns and boost employee confidence in chosen coverage offerings.

Communicate clearly. Employers should provide clear and concise communication materials, including brochures, FAQs and online resources, to help employees understand the key features and benefits of LTC insurance.

Employers should keep in mind that some states have begun mandating LTC insurance, so it’s best to consult with legal counsel before making any benefits changes.

Summary

Employers have an opportunity to make benefits offerings convenient and economical for their employees, and that includes offering LTC insurance as a voluntary benefit. LTC insurance can provide employees with a sense of security, knowing that they have a financial cushion in place should they require extended medical care. This can contribute to reduced stress levels and improved overall well-being, positively impacting productivity and job satisfaction. However, group LTC insurance, like any type of offered benefit, may not be the right choice for all employers.

Contact Simco for more information about LTC insurance.

IRS Releases Comprehensive Guidance on Various SECURE 2.0 Provisions

Tue, 02 Jan 2024 01:30:43 GMT

On Dec. 20, 2023, the IRS issued Notice 2024-2 , providing guidance in the form of questions and answers with respect to various provisions of the legislation known as the “SECURE 2.0” Act.

Background

The Consolidated Appropriations Act of 2023 was signed on Dec. 29, 2022, which is an omnibus bill that includes the SECURE 2.0 legislation, referred to as such because it builds on the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. The legislation is intended to increase employees’ retirement savings and makes numerous important changes that employers should be aware of. A section-by-section summary of the legislation can be found here .

Plan Amendments

Under Section 501 of SECURE 2.0, the plan amendment deadline for SECURE Act and SECURE 2.0 Act provisions is the last day of the first plan year beginning or after Jan. 1, 2025 (or Jan. 1, 2027, in the case of certain collectively bargained or governmental plans). The new guidance extends the plan amendment deadlines under Section 501 .

Section Summary

In addition to extending plan amendment deadlines under Section 501, Notice 2024-2 addresses issues under the following sections of the SECURE 2.0 Act:

Section 101 (expanding automatic enrollment in retirement plans);
Section 102 (modification of credit for small employer pension plan startup costs);
Section 112 (military spouse retirement plan eligibility credit for small employers);
Section 113 (small immediate financial incentives for contributing to a plan);
Section 117 (contribution limit for SIMPLE plans);
Section 326 (exception to the additional tax on early distributions from qualified plans for individuals with a terminal illness);
Section 332 (employers allowed to replace SIMPLE retirement accounts with safe harbor 401(k) plans during a year);
Section 348 (cash balance);
Section 350 (safe harbor for correction of employee elective deferral failures);
Section 601 (SIMPLE and SEP Roth IRAs); and
Section 604 (optional treatment of employer contributions or nonelective contributions as Roth contributions).

The Treasury Department and the IRS invite comments and suggestions on the guidance, which should be submitted on or before Feb. 20, 2024 .

Upcoming ACA Reporting Deadlines

Fri, 29 Dec 2023 19:52:39 GMT

Employers subject to Affordable Care Act (ACA) reporting under Internal Revenue Code Sections 6055 or 6056 should prepare to comply with reporting deadlines in early 2024. For the 2023 calendar year, covered employers must:

Furnish statements to individuals by March 1, 2024 (an alternative method of furnishing statements to covered individuals is available in certain situations); and

File paper returns with the IRS by Feb. 28, 2024 , or April 1, 2024 , if filing electronically. Beginning in 2024, employers that file at least 10 returns during the calendar year must file electronically.

Penalties may apply if employers are subject to ACA reporting and fail to file returns and furnish statements by the applicable deadlines.

Individual statements for 2023 must be furnished within 30 days of Jan. 31, 2024. Because 2024 is a leap year, the deadline for individual statements is March 1, 2024. In addition, electronic IRS returns for 2023 must be filed by March 31, 2024. However, since this is a Sunday, electronic returns must be filed by the next business day, which is April 1, 2024.

Covered Employers

The following employers are subject to ACA reporting under Sections 6055 and 6056:

Employers with self-insured health plans (Section 6055 reporting)

Applicable large employers (ALEs) with either fully insured or self-insured health plans (Section 6056 reporting)

ALEs are employers with 50 or more full-time employees (including full-time equivalent employees) during the preceding calendar year. Note that ALEs with self-funded plans are required to comply with both reporting obligations. However, to simplify the reporting process, the IRS allows ALEs with self-insured plans to use a single combined form to report the information required under both Sections 6055 and 6056.

Section 6055 and 6056 Reporting

Section 6055 applies to providers of minimum essential coverage (MEC), such as health insurance issuers and employers with self-insured health plans. These entities generally use Forms 1094-B and 1095-B to report information about the coverage they provided during the previous year.

Section 6056 applies to ALEs—generally, those employers with 50 or more full-time employees, including full-time equivalents, in the previous year. ALEs use Forms 1094-C and 1095-C to report information relating to the health coverage that they offer (or do not offer) to their full-time employees.

Employers reporting under both Sections 6055 and 6056—specifically, ALEs with self-insured plans—use a combined reporting method by filing Forms 1094-C and 1095-C.

Annual Deadlines

Generally, forms must be filed with the IRS annually, no later than Feb. 28 (March 31, if filed electronically) of the year following the calendar year to which the return relates. Employers may receive an automatic 30-day extension to file with the IRS by completing and filing Form 8809 by the due date of the return. Additional extensions of time to file may also be available under certain hardship conditions.

In addition, a reporting entity must furnish statements annually to each individual who is provided MEC (under Section 6055) and each of the ALE’s full-time employees (under Section 6056). Individual statements were generally due on or before Jan. 31 of the year immediately following the calendar year to which the statements relate. However, beginning with the 2021 calendar year, the IRS has provided an automatic extension of 30 days to furnish statements (Forms 1095-B and 1095-C) to individuals under Sections 6055 and 6056. Because the extension is automatic, reporting entities do not need to formally request an extension from the IRS.

Under this deadline extension, statements furnished to individuals will be timely if furnished no later than 30 days after Jan. 31 of the year following the calendar year to which the statement relates. If the extended furnishing date falls on a weekend or legal holiday, statements will be timely if furnished on the next business day.

New Electronic Filing Threshold

There is a new electronic filing threshold for information returns required to be filed on or after Jan. 1, 2024, which has been decreased to 10 or more returns (originally, the threshold was 250 or more returns). Specifically, the instructions for 2023 returns (filed in 2024) provide the following clarifications and reminders:

The 10-or-more requirement applies in the aggregate to certain information returns. Accordingly, a reporting entity may be required to file fewer than 10 of the applicable Form 1094 and 1095, but still have an electronic filing obligation based on other kinds of information returns filed (e.g., Forms W-2 and 1099).

The electronic filing requirement does not apply to those reporting entities that request and receive a hardship waiver; however, the IRS encourages electronic filing even if a reporting entity is filing fewer than 10 returns.

The formatting directions in the instructions are for the preparation of paper returns. When filing forms electronically, the formatting set forth in the “XML Schemas” and “Business Rules” published on IRS.gov must be followed rather than the formatting directions in the instructions. For more information regarding electronic filing, see IRS Publications 5164 and 5165 .

Alternative Method of Furnishing Under Section 6055

As of 2019, the individual mandate penalty has been reduced to zero. As a result, an individual does not need the information on Form 1095-B to calculate their federal tax liability or file a federal income tax return. The IRS has provided an alternative manner for a reporting entity to furnish statements to individuals under Section 6055 , which applies for all years when the individual mandate penalty is zero.

Under this alternative manner of furnishing, the reporting entity must post a clear and conspicuous notice on its website stating that responsible individuals may receive a copy of their statement upon request. The notice must include an email address, a physical address to which a request may be sent and a telephone number to contact the reporting entity with any questions. For 2023 statements, reporting entities must post the notice by March 1, 2024 , and must retain the website notice through Oct. 15, 2024.

ALEs offering self-insured health plans are generally required to use Form 1095-C, Part III, to meet the Section 6055 reporting requirements, instead of Form 1095-B. A self-insured ALE may use this relief for employees who are enrolled in the ALE’s self-insured plan and are not full-time employees of the ALE, as well as for nonemployees (e.g., former employees) who are enrolled in the self-insured plan. However, an ALE may not use the alternative method of furnishing for full-time employees who are enrolled in the self-insured plan.

Important Dates

Feb. 28, 2024

Paper IRS returns for 2023 must be filed by this date. Reporting entities can file up to 10 returns on paper under the new filing threshold.

March 1, 2024

Individual statements for 2023 must be furnished by this date. An alternative method of furnishing Forms 1095-B is available.

April 1, 2024

Electronic IRS returns for 2023 must be filed by this date. Most employers must file electronically beginning in 2024.

Individual Statements

Furnishing Deadline

The IRS extended the deadline for furnishing statements to individuals. The due date for filing with the IRS is unchanged.

Furnishing Under Section 6055

The IRS has provided an alternative method for furnishing statements to individuals under Section 6055. This alternative method generally requires statements to be provided upon request only.

House Passes Bipartisan Act to Lower Health Care Costs and Increase Price Transparency

Tue, 26 Dec 2023 18:45:52 GMT

On Dec. 11, 2023, the U.S. House of Representatives passed landmark bipartisan legislation to lower the cost of health care and increase pay transparency for patients. The Lower Costs, More Transparency Act, which passed by a vote of 320-71, takes an initial step toward curbing Americans’ skyrocketing health care spending. However, this bill will likely face strong opposition from hospitals and other industry groups. The bill would have to pass the Senate and be signed by the president before becoming law.

“By requiring nearly every corner of our health system to publicly disclose their prices, the Lower Costs, More Transparency Act will empower patients and create incentives to lower prices across the board. “

- House Ways and Means Committee Chair Jason Smith

If enacted into law as written, this act could help patients in the following ways:

Increase price transparency to reveal the cost of prescription drugs by empowering patients and employers to make informed health care decisions, making price information available publicly, and requiring health insurers and pharmacy benefit managers to disclose negotiated drug rebates and discounts.

Address the cost of prescription drugs by lowering out-of-pocket costs for seniors who receive medication at hospital-owned outpatient facilities, expanding access to affordable generic drugs and equipping employer health plans with the information they need to make informed decisions about drug prices.

Support patients, health care workers, community health centers and hospitals by fully paying for expiring health care programs that support community health centers, supporting training programs for new doctors in communities, preserving Medicaid for hospitals that care for uninsured and low-income patients, and extending funding for research to improve treatments and cures for diabetes.

Next Steps

Heightened health care costs are likely to continue impacting employers and employees for the foreseeable future. To combat rising costs, employers are focusing on improving employee health outcomes, reducing unnecessary services, and prioritizing prevention and primary care. Additionally, employers may benefit from improving benefits education and employee communication to help workers understand their benefits and the best ways to utilize and maximize them.

Employers should continue to monitor the progress of this bill, as it could significantly impact health care costs. We’ll keep you appraised of any notable updates.

IRS Announces 2024 Standard Mileage Rates

Fri, 15 Dec 2023 18:59:11 GMT

On Dec. 14, 2023, the IRS announced the 2024 optional standard mileage rates, which are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The 2024 standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

67 cents per mile driven for business use, up 1 ½ cents from the rate for 2023;
21 cents per mile driven for medical purposes or for moving purposes for qualified active duty members of the Armed Forces, down one cent from the rate for 2023; and
14 cents per mile driven in service of charitable organizations. The rate is set by statute and remains unchanged from 2023.

Under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Taxpayers can use the standard mileage rate, but they must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.

Important Dates

Dec. 14, 2023: IRS announced the standard mileage rates for use in 2024.

Jan. 1, 2024: New standard mileage rates go into effect.

Understanding Pooled Employer Plans (PEPs)

Wed, 13 Dec 2023 00:52:42 GMT

Pooled Employer Plans (PEPs) have emerged as a game-changer in the retirement savings landscape, offering businesses and employees a streamlined and cost-effective approach to retirement planning. This article aims to demystify the concept of PEPs, exploring their structure, advantages, and the potential impact they can have on the retirement readiness of employees.

What is a Pooled Employer Plan?

A Pooled Employer Plan is a type of retirement savings arrangement established by the Setting Every Community Up for Retirement Enhancement (SECURE) Act in 2019. The SECURE Act introduced PEPs to encourage more small and medium-sized businesses to offer retirement benefits to their employees. PEPs enable unrelated employers to join a single retirement plan, sharing the administrative and fiduciary responsibilities, which can lead to significant cost savings.

Key Features

Multiple Employers, One Plan: PEPs allow unrelated employers to participate in a single retirement plan. This consolidation of resources is designed to make retirement benefits more accessible to a broader range of businesses.
Administrative Efficiencies: By pooling resources, employers in a PEP can achieve economies of scale. This means shared administrative costs and responsibilities, reducing the burden on individual businesses and potentially lowering overall plan costs.
Fiduciary Oversight: A PEP typically designates a pooled plan provider, responsible for assuming the role of the named fiduciary. This provider takes on certain administrative and fiduciary responsibilities, relieving employers of some of the legal obligations associated with offering a retirement plan.

Benefits for Employers

Cost Savings: PEPs offer the advantage of reduced administrative and operational costs. Sharing these expenses among multiple employers can result in considerable savings compared to maintaining individual retirement plans.
Reduced Administrative Burden: Employers participating in a PEP can offload much of the day-to-day administrative tasks to the pooled plan provider. This allows businesses to focus on their core operations while ensuring employees receive valuable retirement benefits.
Access to Expertise: PEPs are often managed by experienced professionals, providing a level of expertise that might be challenging for individual small businesses to secure. This can enhance the overall quality of the retirement plan.

Benefits for Employees

Enhanced Investment Options: PEPs, with their larger asset pools, may offer a more diverse range of investment options for participants. This can empower employees to tailor their investment strategy based on their individual preferences and risk tolerance.
Increased Portability : As employees move between employers participating in the same PEP, they can maintain continuity in their retirement savings. This portability is especially beneficial in today's dynamic job market.
Simplified Decision-Making: With the administrative aspects managed by the pooled plan provider, employees can enjoy a simplified and user-friendly experience when it comes to enrolling, managing contributions, and accessing information about their retirement plan.

PEPs versus Traditional 401(k)/403(b)

Compared to traditional 401(k) or 403(b) plans, PEPs offer a distinct advantage by consolidating administrative tasks. Traditional plans for individual employers often come with higher administrative burdens and costs, making them less feasible for smaller businesses. PEPs, with their shared responsibilities and reduced costs, level the playing field, allowing a broader spectrum of businesses to provide robust retirement benefits.

Another notable difference lies in fiduciary responsibilities. In a PEP, a pooled plan provider assumes many fiduciary duties, alleviating individual employers from some of the legal obligations associated with managing a retirement plan. This shift in responsibility can be particularly advantageous for businesses with limited resources or expertise in retirement plan administration.

In essence, while traditional plans continue to be a staple in the retirement benefits landscape, PEPs introduce a modern, collaborative approach that addresses the evolving needs of both employers and employees. The decision between a PEP and a traditional plan hinges on the specific requirements and circumstances of each employer, emphasizing the importance of a tailored approach to retirement planning.

Contact Simco today for more information.

2024 Minimum Wage Rates By State

Wed, 06 Dec 2023 21:56:00 GMT

2024 Minimum Wage Rates By State

Under federal and state laws, employers must compensate their employees with one and one-half their regular rate of pay for any hours of overtime work. However, under these laws, employees who work in an executive, administrative or professional (EAP) capacity are exempt from overtime pay if they satisfy, among other things, the salary level requirements for their exemption.

Under federal law, the salary level requirement for the EAP exemption is $684 per week on a salary or fee basis. For highly compensated employees, the salary level is $107,432, which includes at least $684 per week paid on a salary or fee basis.

Important Dates

Jan 1., 2024: The minimum wage rate is expected to increase in 25 states.

July 1, 2024: The minimum wage rate is expected to increase in the District of Columbia, Nevada, and Oregon. These rates will likely be published during the first half of 2024.

Sept. 30, 2024: A new minimum wage rate is expected in Florida.

Poster Requirements

New minimum wage rates may require employers to visit individual states' department of labor websites to update their wage and hour notices.

LINKS AND RESOURCES:

U.S. Department of Labor table of minimum wage by state
U.S. Department of Labor federal minimum wage page

CMS Releases Cost-sharing Limits for 2025 Plan Years

Wed, 29 Nov 2023 16:30:13 GMT

On Nov. 15, 2023, the Centers for Medicare and Medicaid Services (CMS) released the maximum limits on cost sharing for 2025 under the Affordable Care Act (ACA). For 2025, the maximum annual limitation on cost sharing is $9,200 for self-only coverage and $18,400 for family coverage . This represents an approximately 2.6% decrease from the 2024 limits of $9,450 for self-only coverage and $18,900 for family coverage.

Out-of-Pocket Maximum

The ACA requires most health plans to comply with annual limits on total enrollee cost sharing for essential health benefits (EHBs). These cost-sharing limits are commonly referred to as an out-of-pocket maximum. Once the out-of-pocket maximum is reached for the year, the enrollee cannot be responsible for additional cost sharing for EHBs for the remainder of the year.

Under the ACA, EHBs must reflect the scope of benefits covered by a typical employer plan and must include items and services in ten general categories, including emergency services, hospitalization, prescription drugs, pediatric services, outpatient care and maternity and newborn care.

CMS annually adjusts the ACA’s out-of-pocket maximum for inflation and publishes the limits by January of the year preceding the applicable benefit year. The ACA’s cost-sharing limits apply to all non-grandfathered health plans, including self-insured health plans, level-funded health plans and fully insured health plans of any size.

Any out-of-pocket expenses required by or on behalf of an enrollee with respect to EHBs must count toward the cost-sharing limit. This includes deductibles, copayments, coinsurance and similar charges but excludes premiums and spending for noncovered services. Health plans that use provider networks are not required to count an enrollee’s expenses for out-of-network benefits toward the cost-sharing limit. Also, the ACA requires health plans to apply an embedded out-of-pocket limit for everyone enrolled in coverage. Each enrollee must have an individual out-of-pocket limit on EHBs that is not higher than the ACA’s out-of-pocket maximum for self-only coverage.

Limits for 2024 and 2025

For plan years beginning in 2024, the out-of-pocket maximum is $9,450 for self-only coverage and $18,900 for family coverage. For plan years beginning in 2025, the limits are $9,200 and $18,400, respectively. Employers should review the plan designs each year to ensure they comply with the ACA’s cost-sharing limits.

Utilizing Technology to Enhance Campus Recruiting

Tue, 28 Nov 2023 20:38:32 GMT

Educational institutions are well-established sources of high-quality talent. Recent graduates can bring creativity, energy and strong digital skills to the workforce. They’re also likely to be loyal to organizations that provide them with learning and growth opportunities, which can improve employee retention rates and boost morale. Employers that successfully engage, recruit and hire individuals from college campuses—a strategy known as campus recruiting—can secure talented young employees with the potential for growth in their careers and create a pipeline of talented individuals. Depending on their unique needs, employers can connect with job candidates from various educational establishments, including trade schools, technical schools, liberal arts schools and community colleges.

Technology plays a crucial role in the success of a campus recruiting strategy. College students are typically tech-savvy and more likely to rely on social media and online resources for information about an organization. Furthermore, the lead time for campus recruiting is often longer than traditional recruiting, which gives employers the opportunity to leverage technology to build their brand on campus, improving recruiting efforts. This article explains how employers can use technology to attract, engage and recruit individuals from college campuses.

Utilizing Technology for Campus Recruiting

Skilled graduate talent is in high demand. Employers can leverage technology to boost their campus recruiting efforts with the following practices:

Use social media. Research by business services company Experian found that 98% of college-aged students are on social media. Employers can capitalize on this trend by ramping up social media efforts, sharing organizational and employee successes on social media and building an online presence that will improve employer brand. Additionally, employers can involve employees in social media campaigns and fully complete company and brand pages on employment websites.

Recruit on popular job sites. According to LinkedIn data, 86% of small businesses get a qualified candidate within the first 24 hours of posting a job on LinkedIn’s platform. Posting open roles and opportunities on job sites is crucial for recruiting recent graduates. Many of these individuals rely solely on employment sites, such as Handshake or LinkedIn, for information on job postings.

Recruit virtually. Many colleges or universities don’t have a centralized campus. According to Forbes, nearly 2.8 million students enroll at online colleges and universities. This accounts for almost 15% of all U.S. postsecondary learners. Organizations can reach these students by leveraging online platforms, such as social media and virtual information sessions. Video interviews are another way employers can connect with students. Many students prefer virtual interviews and find them less intimidating, helping employers form relationships. Employers can also use online portals, such as Handshake, to connect with students and begin personalized recruiting conversations.

Attend virtual recruiting events. Educational institutions may offer virtual recruitment sessions or career fairs to improve access for students who have financial or transportation obstacles and are unable to meet recruiters on campus. These events may include virtual presentations or webinars focused on particular industries, professions or geographic areas. Participating in these events can help employers connect with college students and find candidates with specific skills (e.g., computer science or engineering majors).

Use mobile-friendly apps. College students rely heavily on their mobile devices for online activities. This includes searching and applying for jobs. Employers can boost engagement among college students and recent graduates by creating mobile-friendly experiences, including mobile-friendly job postings and a user-friendly application process.

Benefits of Using Technology for Campus Recruiting

In today’s digital age, employers whose campus recruiting efforts are limited to in-person fairs will likely miss out on opportunities to engage and connect with talented individuals online and through social media. The benefits of incorporating technology into campus recruiting efforts include the following:

Provide a holistic view. Employers that are recruiting applicants across multiple educational institutions can use technology, such as candidate sourcing and candidate evaluation software, to schedule interviews, track return on investment and store notes, data and other information that will provide clarity during the recruiting and hiring process. This can lead to better acceptance and retention rates.

Broaden reach. Employers can’t be everywhere at once. Job sites, such as LinkedIn and Handshake, can help employers reach students in new and remote locations. Furthermore, employers can use technology to connect virtually with job candidates, host webinars and hold virtual interviews.

Build employer branding. Online platforms can help employers build brand awareness and share organizational values with a broad range of potential candidates. This is especially important when recruiting younger individuals, who tend to be more value-driven when making career decisions. Therefore, organizations that show candidates their values may have more recruiting success. Employers can leverage technology to promote company culture online via social media or employment websites.

Save time. Recruiting technology can help employers quickly scan resumes and filter out candidates who don’t have the necessary qualifications. This allows employers to dedicate more time to evaluating top job candidates.

Conclusion

Employers that utilize technology effectively may experience a competitive advantage when it comes to engaging and recruiting tech-savvy college students. Campus recruiting technology can also help employers spread information quickly, filter out candidates, reach passive candidates, save money and find job candidates who are a good culture fit. This can improve attraction, branding and hiring outcomes.

Strategies to Address Barriers to Mental Health Benefits

Mon, 27 Nov 2023 17:15:00 GMT

In fast-paced and demanding work environments, the importance of mental health cannot be overstated. Employees who are mentally well are more productive, engaged and satisfied with their jobs.

Mental health treatment, including therapy, medication and self-care, can help people who are experiencing mental illness. However, taking that first step toward recovery or seeking help can be challenging. The National Alliance on Mental Illness (NAMI) reports that the average delay between the onset of mental health symptoms and treatment is 11 years. A myriad of factors, such as cost, access and stigma, can hold workers back from receiving the mental health support and treatment they need. Employers can help employees overcome these barriers, understand available treatment options and start their recovery journey.

This article explores barriers to mental health care and ways employers can help break them down to support employees holistically.

The Importance of Mental Health Benefits

Before delving into the strategies, it’s crucial to understand why mental health benefits are so essential in the workplace:

Improved employee well-being —Mental health benefits help employees manage stress, anxiety and other mental health issues, which can lead to improved overall well-being and happiness.

Increased productivity —Employees with access to mental health support are more likely to be productive, as they can better manage work-related stress and challenges.

Reduced absenteeism —Mental health benefits can help reduce absenteeism caused by mental health issues, leading to employer cost savings. In fact, the U.S. Centers for Disease Control and Prevention reports that depression alone causes an estimated 200 million lost workdays each year, costing employers $17 billion to $44 billion.

Enhanced employee engagement —Employees who feel supported in their mental health are more engaged and committed to their jobs and the company.

Talent attraction and retention —Offering robust mental health benefits can make an organization more attractive to potential employees and help retain current talent.

While more employers may focus on their businesses’ bottom line, mental health support is not to be overlooked as it can have ripple effects. A 2023 study by mindfulness app Calm found that for every $1 invested in employees’ mental health, employers can save $2-$4 on other expenses, such as health care costs—that’s a win-win in today’s economic climate. Employee mental health is more important than ever before, and employers are in a position to offer resources and support their employees.

Removing Benefits Barriers

More employers recognize the significance of promoting mental well-being in the workplace and offer a range of mental health benefits to support their employees. However, barriers can still prevent employees from accessing these essential benefits. To address the numerous barriers to mental health care, employers can consider the following strategies for increasing access to proper care and normalizing mental health support:

Review benefits offerings. One way to address employee mental health is by ensuring mental health is incorporated into health care offerings. These are some popular benefits or policies:

Inclusive health insurance plans with mental health coverage
Employee assistance programs
Flexible work arrangements
Paid caregiving leave
Mental health days

Educate about available benefits. In addition to educating employees about available mental health benefits and resources, employers can explain how to leverage other benefits to make mental health treatment and services more attainable or offset out-of-pocket expenses. For example, funds from health savings and flexible spending accounts can generally be used to pay for mental health therapy.

Reduce the stigma. Employers can build trust with employees by showing them they won’t be fired or punished for mental health issues. They can do this by openly discussing mental health in the workplace, encouraging self-care and allowing flexible scheduling for employees to get mental health treatment. Additionally, employers can educate employees on improving their mental health with in-office training on self-care, stress management and mental health issues.

Promote work-life balance. Employees who feel they have a good balance between their jobs and personal lives are likelier to be healthy, happy and productive workers. Organizations can foster a healthy work-life balance among workers by providing them the time and flexibility they need for a flourishing personal life, requiring them to take minimum vacation time, and encouraging them to unplug from their jobs when not in the office or outside of working hours. Additionally, flexible work schedules can allow employees sufficient time to seek and obtain mental health services.

Support caregiver responsibilities. The COVID-19 pandemic put caregiving in the spotlight, illuminating the mental health challenges that they can face. While caregivers often focus on others, they should also care for their mental health.

Support employee wellness. Exercise, healthy eating and good sleep habits are crucial for mental health and resilience. Employers can boost employees’ mental health by encouraging healthy behaviors through wellness programs and offering employee incentives, such as healthy lunches and free gym memberships. Employers should also consider offering employee assistance benefits (e.g., free counseling or therapy) to help employees struggling with mental health or other problems.

Summary

Mental health challenges are prevalent in the workplace. Fortunately, employers can be impactful by supporting and facilitating mentally healthy workplaces. They can boost employee mental health and overall wellness by creating open and trusting work environments and providing employees with mental health resources and support.

Winter Attraction and Retention Tips

Sun, 26 Nov 2023 17:33:10 GMT

While some industries are busy due to holiday shopping and seasonal employment, recruiting often slows during the winter months—especially after the winter holidays. However, winter is also when many job candidates are setting goals and making plans for the coming year, which may include searching for new jobs and opportunities. Additionally, less recruiting activity means employers seeking to attract and hire employees during the winter may experience a competitive advantage over similar organizations.

Simultaneously, many employers struggle to keep employees engaged during the winter months. Employers may notice decreased workplace productivity and morale associated with the cold, dark weather and stress of the holidays and winter months. Left unaddressed, a winter slump can negatively impact employee satisfaction and retention, leading to increased turnover rates and other employment challenges.

Savvy employers can use winter employment challenges as opportunities to attract talented job candidates and re-energize the workforce. This article provides guidance for winter attraction and retention.

Winter Attraction Tips

Many individuals have more free time around the holidays. This provides an opportunity for employers to boost their recruiting efforts at a time when potential candidates have more free time and lenient schedules. Employers can consider the following strategies to improve winter attraction:

Ramp up social media efforts
Launch an employee referral program
Share organizational and employee successes on social media
Schedule interviews while candidates have free time around the holidays
Build a talent pipeline to take advantage of the reduced hiring competition
Recruit college or university students who graduated during the fall semester
Use employment websites to improve branding and candidate outreach.
Create a mobile-friendly application process
Be quick and transparent with all candidate communications.

Winter Retention Tips

During the winter, employees often get less physical activity, spend less time outdoors and see their friends more infrequently. Additionally, many individuals experience a post-holiday slump, which refers to a period of mental fatigue or depression due to the emotional, financial and physical stress of the holiday season. This can negatively impact employees’ mental health and workplace performance. Employers can consider the following practices to boost employee engagement and retention during the winter months:

Recognize and reward employees for good work and accomplishments
Encourage goal-setting at the team, department and individual level
Train employees to ensure they’re well-equipped to handle their workplace responsibilities
Host active work breaks, such as 10-minute stretching or exercise options around the office
Offer employees flexibility on days of severe winter weather
Promote idea sharing and collaboration.
Check-in with employees on a personal and professional level.
Design a comfortable workspace (e.g., soft lighting and lounge chairs).
Celebrate and encourage employees’ personal successes (e.g., birthdays and weddings).
Encourage employees to take work breaks together.
Offer holiday bonuses and other incentives (e.g., gift cards or prepaid cards).
Encourage employees to take paid time off.

Conclusion

Winter can create employment challenges for employers looking to attract and retain talented individuals. Employers that adopt a proactive approach to attraction and retention during the winter months can combat employment challenges that might otherwise contribute to low morale, decreased productivity and high turnover rates.

Summary of the 2023 Employer Health Benefits Annual Survey

Sun, 26 Nov 2023 01:20:47 GMT

Each year, the Kaiser Family Foundation conducts a survey to examine employer-sponsored health benefits trends. This article summarizes the main points of the 2023 Employer Health Benefits Survey .

Health Insurance Premiums

In 2023, the average premiums for employer-sponsored health insurance were $8,435 for single coverage and $23,968 for family coverage. The average single and family premiums increased by 7% over the last year, which was faster than the previous year (2% and 1%, respectively). Premiums for 2023 were expected to increase more in recent years since many 2022 premiums were locked in months before inflation became a significant concern.

Additionally, the Kaiser report notes an increase of 5.2% in workers’ wages and inflation of 5.8%. The average premium for family coverage has risen 22% over the last five years, compared with a 27% increase in workers’ wages and 21% inflation.

Premiums under high deductible health plans with savings options (HDHP/SOs) were still lower than the average premium. HDHP/SOs’ annual premiums for single and family coverages were $7,753 and $22,344, respectively.

Conversely, on average, the premiums for workers enrolled in preferred provider organization (PPO) plans were higher than others. The average PPO premium was $8,906 for single coverage and $25,228 for family coverage in 2023.

Worker Contributions

The average worker contribution toward the premium was 17% for single coverage and 29% for family coverage in 2023, similar to 2022 percentages.

In terms of dollar amounts, workers contributed $1,401 and $6,575 toward their premiums for single coverage and family coverage in 2023, respectively. Once again, these numbers were similar to 2022 figures but greater than five years ago.

Plan Enrollment

Enrollment figures were reasonably similar to last year’s. The following were the most common plan types in 2023:

PPOs: 47% of workers covered
HDHP/SOs: 29% of workers covered
Health maintenance organizations (HMOs): 13% of workers covered
Point-of-service (POS) plans: 10% of workers covered
Conventional (indemnity) plans: 1% of workers covered

Self-funding

In the past few years, self-funded plans have become more popular. Many large organizations self-fund or pay for some or all health services for their workers directly from their own funds rather than purchase health insurance. In 2023, 65% of covered workers—including 18% at small firms and 83% in large firms—are enrolled in self-funded plans. The percentage of covered workers in self-funded plans in 2023 was similar to 2022.

Employee Cost Sharing

Most workers must pay a share of their health care costs, and the average deductible for single coverage was $1,735 in 2023, similar to last year’s number. The average annual deductible has increased 10% over the past five years and 53% over the past decade. The percentage of covered workers with a general deductible of $2,000 or greater for single coverage has increased by 5% over the last five years.

Beyond deductibles, most workers cover some portion of the costs of their health care services. For example, 63% of covered workers had coinsurance, and 10% had a copay for hospital admissions. The average hospital admission coinsurance rate was 20% in 2023; the average payment amount is $404.

In addition, nearly all workers are covered by a plan with an out-of-pocket maximum (OOPM), but the costs vary considerably. Among covered workers with single coverage, 13% had an OOPM of less than $2,000, and 21% had an OOPM of $6,001 or more.

Availability of Employer-sponsored Coverage

While nearly all large firms (those with 200 or more workers) offer health benefits to at least some workers, small firms (three to 199 workers) are significantly less likely to do so. In 2023, 53% of all firms offered some health benefits, which was similar to last year’s percentage (51%).

Although the vast majority of workers are employed by firms offering health benefits, many aren’t covered by their employers. Some are not eligible to enroll, while others choose not for various reasons. Overall, 79% of workers are eligible for health benefits at firms that offer coverage, and 75% of eligible workers take up the organization’s offer. That works out to be 59% of workers at firms that offer health benefits enrolling in coverage.

Among firms that offer health benefits and firms that do not, 53% of all workers were covered by health plans offered by their employer. This is similar to last year’s percentage.

Health Promotion and Wellness Programs

Many firms have programs that help workers identify health issues and manage chronic conditions. The 2023 Kaiser report highlights the following programs:

Health risk assessments —Among organizations offering health benefits, 36% of small firms and 54% of large firms provided workers the opportunity to complete a health risk assessment, similar to last year. Among large firms that offer a health risk assessment, 59% used incentives or penalties to encourage workers to complete the assessment, higher than the percentage (50%) in 2022.

Biometric screenings —Similar to last year’s trend, in 2023, workers at 15% of small firms and 42% of large firms were given the opportunity to complete a biometric screening. Among large firms with a biometric screening program, 67% use incentives or penalties to encourage workers to complete the assessment. Although this is a larger share than last year (57%), it is not significantly different.

Health and wellness promotion programs —Organizations offer such programs to help employees improve their lifestyles and avoid unhealthy habits. Most employers—62% of small and 80% of large—offered a program in at least one of these areas: smoking cessation, weight management, and behavioral or lifestyle coaching. These figures are similar to those of last year.

Disease management programs —Among organizations that offer health benefits, 36% of small firms and 64% of large firms offer disease management programs to improve employee health and reduce enrollees’ costs for certain chronic illnesses. These programs aim to educate workers about their disease and suggest treatment options.

Telemedicine

Large firms are more likely than small firms to cover telemedicine services. In 2023, 91% of large employers with 50 or more workers covered health care services through telemedicine in their largest health plan, similar to last year. While small firms are more likely than large firms to provide telemedicine services only through their health plan, large firms are more likely to provide telemedicine services through a specialized telemedicine provider.

Since the COVID-19 pandemic officially ended, medical services are now generally available in person, and many employees have partially or fully returned to their workplaces. The Kaiser report highlighted how employers with 50 or more enrollees felt about the importance of telemedicine going forward. Overall, 28% of organizations believe telemedicine will be “very important” in providing access to enrollees in the future; another 32% say it’ll be “important.” While 41% of organizations say telemedicine will be “very important” in providing access to behavioral health services in the future, an additional 30% say it will be “important.” Fewer organizations feel that primary and specialty care—27% and 16%, respectively—will be “very important” in providing health care access.

Abortion Services

The U.S. Supreme Court decision in Dobbs v. Jackson, overturning Roe v. Wade, and subsequent state activity to regulate abortion has increased interest in coverage for abortion services in employer plans. In the 2023 survey, 32% of large firms (those with 200 or more workers) offering health benefits said that legally provided abortions are covered in most or all circumstances, and 18% said legally provided abortions are only covered under limited circumstances (e.g., rape, incest, or health or life endangerment of the pregnant enrollee). The majority of employers (40%) answered “Don’t know” to the prompt, perhaps reflecting the complexity of the issue and the changing landscape of state laws.

A small percentage (7%) of large firms offering health benefits provide or plan to provide financial assistance for travel expenses for enrollees who travel out of state to obtain an abortion if they do not have access near their home.

Conclusion

As expected, the average annual premiums for both single and family coverage significantly increased in 2023 as the economy impacts health benefits. Looking ahead, inflation and wages are projected to moderate over the next two years. Employers should begin identifying tools and resources to offset higher premiums and offer robust mental health support.

For more information on benefits offerings, contact us today.

IRS Announces 2024 Retirement Plan Limits

Wed, 22 Nov 2023 16:51:12 GMT

The Internal Revenue Service (IRS) has released Notice 2023-75 , containing cost-of-living adjustments for 2024 that affect amounts employees can contribute to 401(k) plans and individual retirement accounts (IRAs).

2024 Increases

The employee contribution limit for 401(k) plans in 2024 has increased to 23,000 , up from $22,500 for 2023. Other key limit increases include the following:

The employee contribution limit for IRAs is increased to $7,000 , up from $6,500.

The IRA catch‑up contribution limit for individuals aged 50 and over remains unchanged at $1,000 for 2024 (despite this limit now including an annual cost‑of‑living adjustment because of legislation enacted at the end of 2022, referred to as “SECURE 2.0”).

The employee contribution limit for SIMPLE IRAs and SIMPLE 401(k) plans is increased to $16,000 , up from $15,500.

The limits used to define a “highly compensated employee” and a “key employee” are increased to $155,000 (up from $150,000) and $220,000 (up from $215,000), respectively.

The annual limit for defined contribution plans (for example, 401(k) plans, profit-sharing plans and money purchase plans) is increased to $69,000 , up from $66,000.

The annual compensation limit (applicable to many retirement plans) is increased to $345,000 , up from $330,000.

The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan remains unchanged at $7,500 . Therefore, participants in these plans who are 50 and older can contribute up to $30,500 , starting in 2024.

The income ranges for determining eligibility to make deductible contributions to traditional IRAs, contribute to Roth IRAs and claim the Saver’s Credit (also known as the Retirement Savings Contributions Credit) also increased for 2024.

More Information

The IRS’s news release contains more details on the cost-of-living adjustments for 2024.

NLRB Announces New Joint-employer Standard

Sat, 28 Oct 2023 00:21:05 GMT

On Oct. 26, 2023, the National Labor Relations Board (NLRB) announced a final rule that establishes new criteria to determine joint-employer status. Joint employment situations can happen when two or more employers share personnel hiring, supervision and management practices. When a joint employment status exists, joint employers are equally responsible for compliance with applicable laws and regulations.

Update as of Nov. 20, 2023: On Nov. 16, 2023, the National Labor Relations Board (NLRB) announced it would push the effective date of the new joint-employer rule to Feb. 26, 2024. The final rule was initially set to become effective on Dec. 26, 2023. However, the agency has delayed the effective date by two months to facilitate the resolution of legal challenges regarding the new rule. Notice of the extension will be published in the Federal Register.

Joint Employment

Whether joint employment is by design or unintentional, joint employers are equally:

Liable for unfair labor practices committed by other joint employers;
Required to bargain with the union that represents jointly employed workers; and
Subject to union picketing or other economic pressure if there is a labor dispute.

To determine whether a joint-employer relationship exists, employers must evaluate the degree of control they exert over “essential terms and conditions of employment.” Essential terms and conditions of employment include wages, benefits, hours of work and employee hirings, discharges, discipline, supervision and direction.

2020 Joint-Employer Standard

The NRLB adopted the current joint-employer standard on April 27, 2020. This standard applies to labor issues related to the National Labor Relations Act .

The current standard considers the “substantial direct and immediate control” employers have over essential terms and conditions of employment for individuals who are employed by another organization. Specifically, the 2020 joint-employer standard indicates that a business is a joint employer of another employer’s employees only if the degree of joint control is of sufficient magnitude to lead to the conclusion that the joint employer meaningfully affects matters relating to the employment relationship.

In addition, under the 2020 rule, other evidence may suggest (but not prove) the existence of joint-employer status, particularly when the evidence points to indirect control or the right to exert control through contract or agreement (especially when control is never exercised).

Overview of the 2023 Rule

The new rule rescinds the 2020 joint-employer standard and:

Clarifies the definition of “essential terms and conditions of employment,”
Identifies the types of control that are necessary to establish joint-employer status and the types that are irrelevant to the joint-employer inquiry; and
Describes the bargaining obligations of joint employers.

Employers should pay particular attention to the fact that the 2023 rule was drafted to be more inclusive than the 2020 rule. This means it will become easier for employers to be classified as joint employers. The 2023 rule created this more inclusive standard for determining joint-employer status by removing the requirement that joint employers must “possess and exercise … substantial direct and immediate control” over essential terms and conditions of employment.

In addition, the new standard more faithfully grounds the joint-employer rule in established common-law agency principles. Specifically, the rule considers the alleged joint employers’ authority to control essential terms and conditions of employment, regardless of whether such control is exercised.

Finally, the NLRB has also stated that “the new rule also provides extensive guidance to parties regarding their rights and responsibilities in situations where joint-employer status has been established.”

Terms and Conditions of Employment

The final rule limits terms and conditions of employment to:

Wages, benefits and other compensation;
Hours of work and scheduling;
The assignment of duties to be performed;
The supervision of the performance of duties;
Work rules and directions governing the manner, means and methods of the performance of duties and the grounds for discipline;
The tenure of employment, including hiring and discharge; and
Working conditions related to the safety and health of employees.

Impact on Employers

Employers, particularly contractors and subcontractors, should become familiar with the new rule and determine whether a more inclusive joint-employer standard would reclassify them as joint employers in their operations by the rule’s effective date. Employers affected by the new standard should also take precautionary steps to ensure other joint employers comply with regulations regarding labor and employment laws for joint employees.

Enhancing Employee Learning and Development With Learning Management Systems

Thu, 26 Oct 2023 19:57:12 GMT

A recent survey by management consulting company Gallup found that nearly three-quarters of the U.S. workforce are not engaged. Learning and development (L&D) opportunities provide employees with a purpose, encourage community and foster curiosity, all of which can contribute to increased employee engagement. Furthermore, these programs show employees their development is valued, which can boost morale and improve attraction and retention. In fact, educational technology company LinkedIn Learning found that three of the top five reasons employees search for new jobs relate to their desire to learn, grow and develop new skills.

Successful L&D programs can also help employers reduce skills gaps and drive operational excellence. Yet, traditional learning opportunities aren’t always compatible with a modern workforce. For example, employers with a multi-generational workforce, a significant number of remote or semi-remote employees, or employees with a wide range of learning styles may find that conventional learning practices create unequal growth and learning opportunities within an organization. Therefore, finding an effective means for online training, such as a learning management system (LMS), is a critical aspect of many L&D programs.

This article explains how LMSs can be used to further L&D programs and outlines potential benefits and drawbacks.

LMS Overview

An LMS is a software application or web-based technology employers can use to plan, design, implement and evaluate their L&D programs. They’re often used to store e-learning content and automate employee learning processes. LMSs can have basic functionality or be highly advanced technology that can gamify learning, advance social and mobile learning, and use artificial intelligence. The following are common functions of LMSs:

Oversee training and e-learning
Store, organize and distribute courses
Track individual progress
Set employee goals
Communicate with individuals
Provide detailed analyses
Identify skills gaps
Indicate individuals in need of additional support

Benefits of Using LMSs

LMSs can benefit organizations that want to provide self-paced learning opportunities or have a widely dispersed workforce. They can help organizations evolve, accelerate growth and address talent shortages.

Using an LMS for L&D programs may be advantageous, as it may achieve the following:

Reduce cost. Over the long term, e-learning can be a cost-effective learning solution. With LMSs, employers don’t need to pay for travel, instructors, vendors or other materials (e.g., training manuals), which can reduce total training costs.
Save time. These systems allow employers to build complete courses quickly. These courses can continually reused and revised, reducing the time needed to onboard or retrain employees. Furthermore, LMSs lessen the administrative burden by automating much of the learning process. They also allow employees the opportunity for self-paced learning, which can reduce the amount of time employees spend away from work training.
Promote a learning culture. Giving employees a tool for continual and self-driven learning with LMSs can enable employers to create a culture of growth and learning. This can benefit both employers and employees by providing individuals with access to updated training and upskilling programs that can reduce skills gaps within an organization. LMSs also allow organizations to understand how effective their training programs are by measuring learning outcomes and connecting them to organizational performance.
Ensure compliance. Many organizations are required to provide employees with certain mandatory training (e.g., anti-harassment or health and safety training). LMSs track and store information proving that employees took and understood the required training. This can benefit employers in case of an audit or accident.
Boost engagement. Employers can create innovative and meaningful content to boost employee interest and engagement in L&D. Many LMSs allow for gamification, in which employees can unlock higher skill levels by gaining certain features, such as trophies and badges. This can motivate employees to reach new levels of learning and achievement, increasing engagement and improving the user experience.
Provide flexible learning. LMSs can easily be scaled up or down to meet the needs of an organization. Employers may choose from a wide variety of learning formats, including videos, webinars and e-learning modules. Personalized learning paths can also be created to meet individual needs, providing employees with an effective learning experience suited for them.
Increase accessibility. Using an online learning system can help employers provide all employees with equal access to onboarding and learning opportunities. This can help ensure that employees won’t be held back from professional growth due to location, schedule availability or learning styles.

Drawbacks of LMSs

As a software system, an LMS may not be right for every organization. Before purchasing an LMS, employers should consider the following potential disadvantages:

Set-up time — There is a significant upfront time commitment to implementing an LMS. After researching different LMS options, employers must learn how to create courses and implement the system, which may require administrators to undergo system training before launching the course. Additionally, coding and IT knowledge may be required to customize the courses.
User-friendliness —Employees who aren’t tech-savvy may initially struggle to adapt to online learning. As a result, it may take more time for some individuals to adapt to the new technology. Employers can help by selecting LMSs with simple and engaging features to improve employee engagement and use.
Associated costs —Although LMSs are generally a cost-effective learning solution, there are necessary expenditures, such as purchase fees and implementation, training, security and maintenance costs. These can quickly exceed an employer’s L&D budget. Employers may also find that they must hire additional third-party platforms to boost compatibility and functionality.
Limited options for personalized learning —The ability to individualize learning to meet employee needs is a crucial benefit of LMSs. However, some LMSs may provide limited opportunities for personalization, which can make employee learning and engagement less effective.
User issues —If LMS support fails to meet the needs of an organization, it can dramatically impact the functionality of an LMS and cause decreased employee engagement. For example, if an LMS only provides basic tutorial information, administrators and users may struggle with the functionality of courses. Furthermore, e-learning may not be right for all learning styles or all types of training (e.g., physical skills). It also lacks human connection, which some individuals may need or desire for optimal learning.
Lack of enforceability —Unlike in-person training, which is easy to enforce, LMSs require employees to be self-disciplined and follow through with their training with minimal oversight. As a result, employees may fail to complete essential training. They may also be able to cheat their way through LMS courses, which can undermine the effectiveness of L&D programs.

Conclusion

Employee L&D is a long-term investment that can contribute to organizational success by lowering turnover, reducing skills gaps and improving employee satisfaction. As organizations navigate the diverse needs of a modern workforce, learning technology such as LMSs may help ensure that all employees have equal access to L&D opportunities.

EEOC Releases Strategic Enforcement Plan for FYs 2024-28

Wed, 25 Oct 2023 17:00:21 GMT

The U.S. Equal Employment Opportunity Commission (EEOC) recently released its Strategic Enforcement Plan (SEP) for fiscal years (FYs) 2024-28. The SEP establishes the agency’s subject matter priorities as it works to prevent and remedy discrimination in the workplace.

In particular, the SEP updates and refines the commission’s subject matter priorities to reflect progress in achieving its goals of equal employment while recognizing the challenges that remain in reaching those goals. This plan will help guide the EEOC’s work, including outreach, education, technical assistance, enforcement and litigation.

The EEOC’s subject matter priorities for FYs 2024-28 include the following:

Eliminating barriers in recruitment and hiring
Protecting vulnerable workers and individuals from underserved communities from employment discrimination
Addressing selected emerging and developing issues, such as protections for workers affected by pregnancy, childbirth or related medical conditions; employment discrimination associated with the long-term effects of COVID-19 symptoms; and technology-related employment discrimination
Advancing equal pay for all workers
Preventing and remedying systemic harassment
Preserving access to the legal system by addressing employment waivers, releases, and nondisclosure and nondisparagement agreements

Employer Takeaways

As the SEP will guide the agency’s enforcement priorities for the next five years, employers should consider reviewing the plan to determine how it may impact their organizations. We will keep you apprised of any notable updates.

Final Forms and Instructions for 2023 ACA Reporting Released

Tue, 24 Oct 2023 22:01:44 GMT

The IRS has released final 2023 forms and instructions for reporting under Internal Revenue Code Sections 6055 and 6056:

2023 Forms 1094-B and 1095-B (and instructions ) will be used by providers of minimum essential coverage, including self-insured plan sponsors that are not applicable large employers (ALEs), to report under Section 6055.
2023 Forms 1094-C and 1095-C (and instructions ) will be used by ALEs to report under Section 6056 as well as for combined Section 6055 and 6056 reporting by ALEs who sponsor self-insured plans.

Draft versions of these forms were released in July, and draft instructions were released in September. No major substantive changes were made to the final forms and instructions for 2023 reporting.

Final Instructions Address New Electronic Filing Threshold

The 2023 instructions include information on the new electronic filing threshold for information returns required to be filed on or after Jan. 1, 2024, which has been decreased to 10 or more returns (originally, the threshold was 250 or more returns).

Specifically, the instructions provide the following clarifications and reminders:

The 10-or-more requirement applies in the aggregate to certain information returns. Accordingly, a reporting entity may be required to file fewer than 10 of the applicable Form 1094 and 1095, but still have an electronic filing obligation based on other kinds of information returns filed (e.g., Forms W-2 and 1099).
The electronic filing requirement does not apply to those reporting entities that request and receive a hardship waiver; however, the IRS encourages electronic filing even if a reporting entity is filing fewer than 10 returns.
The formatting directions in the instructions are for the preparation of paper returns. When filing forms electronically, the formatting set forth in the “XML Schemas” and “Business Rules” published on IRS.gov must be followed rather than the formatting directions in the instructions. For more information regarding electronic filing, see IRS Publications 5164 and 5165 .

Action Steps

Employers should become familiar with these forms and instructions for 2023 calendar year reporting and begin to explore options for filing ACA reporting returns electronically (e.g., they may be able to work with a third-party vendor to complete the electronic filing). Reporting entities that may be in a position to perform their own electronic reporting can review the IRS’ ACA Information Returns (AIR) Program webpage .

A Primer for Employers on Medicare Coordination of Benefits

Mon, 23 Oct 2023 19:21:29 GMT

When a plan participant or beneficiary has Medicare and other health insurance, such as group health plan insurance, retiree coverage or Medicaid, there can often be confusion as to which insurance pays first on claims. Coordination of benefits (COB) rules, which are specified in plan documents or insurance policies, decide which insurance pays first. One plan is considered the primary payer that covers most expenses, while the secondary plan covers any remaining allowable expenses not covered by the primary plan. The COB allows health plans to provide health or prescription drug coverage to individuals receiving Medicare to determine their payment responsibilities. This helps ensure that the total amount paid by all insurance plans does not exceed the total costs of the health care expenses for Medicare-covered services and items.

This article provides a general overview of COB rules under Medicare.

How Does Medicare Work With Other Insurance?

There are many important facts to remember regarding how other insurance works with Medicare-covered services and items, such as the following:

The primary payer pays first and up to its coverage limits.
The secondary payer only pays if there are costs the primary payer doesn’t cover.
The secondary payer, which may be Medicare in certain situations, might not pay all the uncovered costs from the primary payer.
If a group health plan or retiree coverage is the secondary payer, the individual may need to enroll in Medicare Part B before that insurance would pay.

If a Medicare-covered individual’s other health insurance is the primary payer and fails to promptly pay a claim, typically within 120 days, that individual’s doctor or service provider may bill Medicare. Medicare can make a conditional payment for the individual’s claim, recovering any payments the primary payer should have paid at a later date.

What’s a Conditional Payment?

A conditional payment is a payment Medicare makes for services for which another payer may be responsible. Medicare makes this payment, so the plan participant or beneficiary won’t have to pay the claim. The payment is conditional because it must be repaid to Medicare if the Medicare-covered individual receives a settlement, judgment, award or other payment later.

Who Pays First?

When an individual has Medicare and other insurance, there are rules for whether Medicare or the other insurance is the primary payer for Medicare-covered services and items.

Medicare is typically the primary payer for Medicare-covered services and items in the following circumstances:

An individual is covered by only Medicare and Medicaid.
An individual covered by Medicare refuses group health coverage.
Medical services or supplies are not covered under a group health plan but are covered under Medicare.
A Medicare-covered individual is covered by a group health plan but has exhausted their coverage under the group health plan.
A Medicare-covered individual is 65 or older and covered by a group health plan (because the individual or their spouse is still working) offered by an employer with fewer than 20 employees.
A Medicare-covered individual is 65 or older and covered by an employer group health plan after retirement.
A Medicare-covered individual is 65 or older (or disabled) and covered by Medicare and the Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage.
A Medicare-covered individual is disabled and covered by a large group health plan offered by an employer with fewer than 100 employees.
A Medicare-covered individual has end-stage renal disease and is enrolled in a group health plan or COBRA (after 30 months of eligibility or entitlement to Medicare).
A Medicare-covered individual has only Medicare and TRICARE coverage unless the individual is on active duty and receives services and items from a military hospital, clinic or other federal health care provider.

For a complete list of situations where Medicare is the primary payer, visit Medicare.gov or review the Centers for Medicare and Medicaid Services’ guide, Medicare & Other Health Benefits: Your Guide to Who Pays First .

How Does Medicare Know if an Individual Has Other Coverage?

COB permits an individual’s Medicare eligibility information to be shared with other payers and sends Medicare-paid claims to secondary payers for payment. The Benefits Coordination and Recovery Center (BCRC) does the following on Medicare’s behalf:

Collect and manage information on other types of coverage an individual with Medicare may have.
Determine whether an individual’s other coverage pays before or after Medicare.
Pursue repayment when Medicare makes a conditional payment.

Medicare doesn’t automatically know if a Medicare-covered individual has other health insurance; however, insurers are required to notify Medicare when they’re responsible for paying first for Medicare-covered services and items. In some instances, the individual’s health care provider, employer or insurer may ask them about their current coverage so they can report that information to Medicare. Additionally, insurers must report coverage changes to Medicare.

Summary

Understanding COB rules is vital to ensuring that a Medicare-covered individual’s claims are paid correctly. While COB rules can be complex, they can help Medicare plan participants and beneficiaries make the best use of their health care coverage.

For more health care resources, contact Simco today.

Understanding Insurance Audits and Policyholder Responsibilities

Tue, 17 Oct 2023 19:41:59 GMT

Insurance audits are a fundamental aspect of the insurance industry, serving to determine accurate premium rates and ensure that policyholders are paying the correct amount for their coverage. These audits are a collaborative effort between the insurance provider and the policyholder. In this article, we will delve into what insurance audits entail and the essential responsibilities of policyholders to guarantee their accuracy.

What is an Insurance Audit?

An insurance audit is a review of a policyholder's financial records to confirm that the premium paid aligns with the actual risk exposure and operational changes within the policy period. It's a mechanism employed by insurers to establish accurate premium rates, especially for policies with variable factors such as worker's compensation or general liability insurance.

Why Are Insurance Audits Necessary?

Insurance audits are vital for maintaining the integrity of the insurance system. They ensure that policyholders are appropriately charged based on the level of risk associated with their business or personal circumstances. Here's why they are necessary:

Premium Accuracy: Audits help prevent overpayment or underpayment of premiums, ensuring fairness for both the insurer and policyholder.
Risk Assessment: Businesses evolve, and operational changes can affect insurance requirements. Audits allow insurers to adjust coverage to match a company's evolving needs.
Legal Compliance: Many insurance policies require audits to ensure compliance with regulations and contractual obligations.

Responsibilities of the Policyholder

Policyholders play a crucial role in the insurance audit process. Here are their key responsibilities:

Accurate Record Keeping: Maintain detailed and accurate financial records, including payroll, revenue, certificates of insurance for all vendors or subcontractors, and any other information pertinent to your policy.
Timely Reporting: Notify your insurance provider of any significant changes in your business operations, such as new hires, additional locations, or changes in job classifications. Timely reporting ensures that your policy remains up to date.
Cooperation: Cooperate with the auditor when they visit your premises or request information. This includes providing access to financial records, employee records, and any other documents necessary for the audit.
Transparency: Be transparent about your operations. Hiding or misrepresenting information can lead to costly consequences and potential policy cancellations.
Ask Questions: If you're uncertain about any aspect of the audit, don't hesitate to ask questions. It's essential to have a clear understanding of the process and its implications.
Review the Audit: After the audit is completed, carefully review the auditor's findings to ensure accuracy. If you have any concerns or discrepancies, address them promptly with your insurance provider.

Insurance audits are a collaborative process that benefits both policyholders and insurance providers. They help ensure accurate premiums, compliance with regulations, and alignment of coverage with changing business needs. As a responsible policyholder, maintaining accurate records, reporting changes promptly, and cooperating with auditors are essential steps to ensure the process goes smoothly and accurately reflects your insurance needs. By fulfilling your responsibilities, you can help maintain a fair and transparent insurance system that benefits everyone involved.

Cyber Security Awareness Month: Protecting Your Business from Digital Threats

Mon, 02 Oct 2023 12:28:25 GMT

October is Cybersecurity Awareness Month, making it the perfect time to safeguard your business against the rising tide of cyber threats. Learn how to defend your company's digital assets and ensure long-term security.

Businesses, both large and small, are increasingly reliant on the internet for daily operations, creating attractive and potentially lucrative targets for cyber criminals.

With such heavy use of and reliance on computers and the internet by both large and small organizations, protecting these resources has become increasingly important. Learning about cyberattacks and how to prevent them can help you protect your company from security breaches.

Cyberattacks Compromise Your Company

Cyberattacks include many types of attempted or successful breaches of computer security. These threats come in different forms, including phishing, viruses, Trojans, key logging, spyware and spam. Once hackers have gained access to the computer system, they can accomplish any of several malicious goals, typically stealing information or financial assets, corrupting data or causing operational disruption or shutdown.

Both third parties and insiders can use a variety of techniques to carry out cyberattacks. These techniques range from highly sophisticated efforts to electronically circumvent network security or overwhelm websites to more traditional intelligence gathering and social engineering aimed at gaining network access.

Cyberattacks can result directly from deliberate actions of hackers, or attacks can be unintentionally facilitated by employees—for example, if they click on a malicious link. According to historical claim data analyzed by Willis Towers Watson, 90 percent of all cyber claims stemmed from some type of employee error or behavior. The high-profile Equifax, Snapchat and Chipotle data breaches were all caused by employee error or behavior.

A breach in cyber security can lead to unauthorized usage through tactics such as the following:

Installing spyware that allows the hacker to track Internet activity and steal information and passwords
Deceiving recipients of phishing emails into disclosing personal information
Tricking recipients of spam email into giving hackers access to the computer system
Installing viruses that allow hackers to steal, corrupt or delete information or even crash the entire system
Hijacking the company website and rerouting visitors to a fraudulent look-alike site and subsequently stealing personal information from clients or consumers

Cyberattacks may also be carried out in a manner that does not require gaining unauthorized access, such as denial-of-service (DoS) attacks on websites in which the site is overloaded by the attacker and legitimate users are then denied access.

The Vulnerable Become the Victims

The majority of cyber criminals are indiscriminate when choosing their victims. The Department of Homeland Security (DHS) asserts that cyber criminals will target vulnerable computer systems regardless of whether the systems belong to a Fortune 500 company, a small business or a home user.

Cyber criminals look for weak spots and attack there, no matter how large or small the organization. Small businesses, for instance, are becoming a more attractive target as many larger companies tighten their cyber security. According to the industry experts, the cost of the average cyberattack on a small business is increasing exponentially and shows no signs of slowing down. Nearly 60 percent of the small businesses victimized by a cyberattack close permanently within six months of the attack. Many of these businesses put off making necessary improvements to their cyber security protocols until it is too late because they fear the costs would be prohibitive.

Simple Steps to Stay Secure

With cyberattacks posing such a prominent threat to your business, it is essential to create a plan to deal with this problem. Implementing and adhering to basic preventive and safety procedures will help protect your company from cyber threats.

Following are suggestions from a Federal Communications Commission (FCC) roundtable and the DHS’s Stop.Think.Connect. program for easily implemented security procedures to help ward off cyber criminals. These suggestions include guidelines for the company as well as possible rules and procedures that can be shared with employees.

Security Tips for Your Company

Cyber security should be a company-wide effort. Consider implementing the following suggestions at your organization:

Install, use and regularly update anti-virus and anti-spyware software on all computers.
Download and install software updates for your operating systems and applications as they become available.
Change the manufacturer’s default passwords on all software.
Use a firewall for your internet connection.
Regularly make backup copies of important business data.
Control who can physically access your computers and other network components.
Secure any Wi-Fi networks.
Require individual user accounts for each employee.
Limit employee access to data and information, and limit authority for software installation.
Monitor, log and analyze all attempted and successful attacks on systems and networks.
Establish a mobile device policy and keep them updated with the most current software and anti-virus programs.

Security Tips for Employees

Use strong passwords, change them periodically and never share them with anyone. Never repeat a password across accounts.
Protect private information by not disclosing it unless necessary, and always verify the source if asked to input sensitive data for a website or email.
Don’t open suspicious links and emails; an indication that the site is safe is if the URL begins with https://.
Scan all external devices, such as USB flash drives, for viruses and malicious software (malware) before using the device.

Securing Your Company’s Mobile Devices

Gone are the days when contact names and phone numbers were the most sensitive pieces of information on an employee’s phone. Now a smartphone or tablet can be used to gain access to anything from emails to stored passwords to proprietary company data. Depending on how your organization uses such devices, unauthorized access to the information on a smartphone or tablet could be just as damaging as a data breach involving a more traditional computer system.

The need for proper mobile device security is no different from the need for a well-protected computer network. Untrusted app stores will continue to be a major source of mobile malware which drives traffic to these stores. This type of “malvertising” continues to grow quickly on mobile platforms.

Most importantly, stay informed about cyber security and continue to discuss internet safety with employees.

Don’t Let it Happen to Your Company

According to the DHS, 96 percent of cyber security breaches could have been avoided with simple or intermediate controls. Strengthening passwords, installing anti-virus software and not opening suspicious emails and links are the first steps toward cyber security. In addition to the listed tips, the FCC provides a tool for small businesses that can create and save a custom cyber security plan for your company, choosing from a menu of expert advice to address your specific business needs and concerns.

A data breach could cripple your small business, costing you thousands or millions of dollars in lost revenue, sales, damages and reputation. Contact SimcoHR today. We have the tools necessary to ensure you have the proper coverage to protect your company against losses from cyberattacks.

Helping Employees Navigate Rising Health Care Costs

Wed, 27 Sep 2023 13:54:33 GMT

Employers continue to struggle with rising health care costs and providing employees with affordable and quality care options. Unfortunately, employers expect health care costs to increase significantly in 2024, according to several industry surveys and reports. These findings revealed that employers anticipate health care costs to grow between 6.5% and 8.5% in 2024, the largest increase in more than a decade. As a result, employer-sponsored health care plans may cost more than $15,000 per employee.

For the most part, employers have avoided shifting increasing health care costs onto employees due to the tight labor market and ongoing attraction and retention challenges. Despite employers’ reluctance to shift the burden of rising costs onto employees, workers will likely pay more for health care as overall medical expenses increase. Health insurance costs are already among the biggest expenses for American families; therefore, employees will likely feel increasingly stressed and burdened financially as they are forced to pay more for care. As such, employers have an opportunity to support their workers by helping them navigate rising costs.

This article provides guidance to help employers discuss increasing health care costs with their workers and aid employees in mitigating these expenses.

Why Are Health Care Costs Rising?

Health care costs have increased relatively slowly over the last few years, in part due to decreased utilization during the COVID-19 pandemic and because insurer contracts typically are not renegotiated annually. However, several market conditions have recently led to steep increases in health care costs. For example, health care utilization has rebounded, resulting in medical plan costs returning to pre-pandemic levels. Utilization has especially increased for catastrophic claims and among individuals with chronic health conditions.

Inflation is also causing health care costs to rise. Hospitals and medical providers are increasing prices to address rising employee wages and supply costs. Additionally, consolidation among hospitals, physician practices and commercial insurers has resulted in higher health care prices for insurers.

Other reasons why health care costs are expected to increase in 2024 include the following:

Specialty and costly prescription drugs, especially the high demand for diabetes and obesity drugs
Cell and gene therapies
Technological advancements
Workforce shortages

These market conditions started affecting insurance rates and contracts in 2023, and their impact is only expected to grow in 2024. As a result, increases in health plan expenses are expected to impact all employers, regardless of size and whether they are fully or self-insured.

How Employers Are Responding to Rising Costs

While some employers may pass increasing health care costs onto their employees, many employers are expected to absorb most of the higher costs to remain attractive to top talent and retain their workforce. Instead, these employers are expected to embrace cost control initiatives, such as requiring prior authorization, utilizing disease management and adding nurse advice lines. Other strategies employers will likely implement to manage rising health care costs include wellness programs; plan design initiatives (e.g., offering high deductible health plans, requiring spousal surcharges or carve-outs and conducting dependent eligibility audits); and offering telemedicine, price transparency tools and centers for excellence.

Helping Employees Navigate Rising Health Care Costs

Even though most employers will not pass rising health care costs onto employees, how employers communicate changes and information related to increasing medical costs is critical. It presents employers with an opportunity to build trust, strengthen employee loyalty and reduce the risk of turnover. Employers should consider the following strategies for communicating with employees about rising health care costs.

Establish Key Messaging

How employers communicate about rising health care costs and any benefits changes to employees can often impact whether they are understood and accepted. By keeping key messaging simple and clear, such as focusing on new or updated benefits offerings, employers can better ensure that employees understand any changes. Clear and simple messaging can be repeated often, helping to distribute important health care and benefits information to the entire workforce.

If changes to benefits plans result in increased costs or reduced offerings for employees, employers can find ways to communicate not only takeaways but also givebacks (e.g., increasing employee premium contributions but adding certain supplemental benefits, such as transportation benefits). This allows employers to demonstrate to employees what they are doing to address rising health care costs and that they are mindful of employees’ financial burden due to increasing costs. This can help organizations get employee buy-in for any benefits changes and build loyalty and trust with their workforce, which can help improve productivity and attraction and retention efforts.

Communicate Changes to Employees

As organizations make changes to their health insurance plans and offerings to address increasing medical costs in 2024 and beyond, it’s important to clearly communicate those changes to employees. Failing to do so may result in employees paying for expensive and, in some cases, unnecessary care. This may include employees going needlessly out of network to receive care, resulting in increased medical costs. With this in mind, effective employee communication can help employers with implementing cost control measures.

Select Appropriate Communication Channels

Since every workplace is different, selecting multiple communication channels that are engaging and relevant to the workforce is essential. Leveraging technology can help employers communicate frequently and effectively with employees about changes to health care costs, benefits and offerings rather than simply relying on in-person or physical communication methods. Digital channels allow employees to access information when and where they need it. Still, in-person communication, on-site meetings and physical mailers can play an important role in communicating increasing costs and benefits changes to employees as well as ensuring these changes are understood and received.

Educate Employees About Health Care Costs

Employers can educate employees on the current state of the health insurance industry and how to effectively use their health plans to avoid unnecessary or high-cost care. By focusing on educating employees about any changes and rising costs, organizations can enhance the overall effectiveness of their communication methods and increase the likelihood that employees will accept them. Employers can also give employees a breakdown of total health care premiums and the portions paid by each party to help workers understand how medical costs impact a company’s bottom line as well as the total value of the benefits provided to employees. Additionally, employers can provide tools to help employees make the most cost-effective health care decisions.

Employer Takeaway

Helping employees navigate rising health care costs is an ongoing process, but it’s essential that workers feel properly informed about medical expenses, benefits options and mitigation strategies. Establishing strategies to communicate important information regarding increasing health care costs and benefits changes is vital to the health and well-being of an organization’s workforce. As health care costs will likely increase for the foreseeable future, employers who act now to address workers’ concerns regarding rising health care costs and provide actionable solutions can improve employee retention, increase productivity, strengthen staff morale and gain a leg up on their competition.

For additional employee benefits resources, contact us today.

White House Announces First 10 Drugs Subject to Medicare Price Negotiations

Tue, 26 Sep 2023 16:55:02 GMT

On Tuesday, Aug. 29, the Biden administration unveiled the first 10 prescription drugs subject to Medicare price negotiations. Medicare provides health insurance coverage to 65 million Americans, including 57 million seniors.

More than 60% of the 65 million people on Medicare take prescription medication, and 25% take at least four prescriptions, according to a Kaiser Family Foundation survey.

Under the Inflation Reduction Act, the Medicare Drug Price Negotiation Program allows the federal government to negotiate directly with drug manufacturers to improve access to some of the costliest brand-name drugs. Many Medicare Part D enrollees depend on medications to treat life-threatening conditions, such as diabetes and heart failure, but may not be able to access them due to costs. The following Medicare Part D drugs will be the first ones subject to these negotiations:

Eliquis , for preventing and treating blood clots
Jardiance , for treating diabetes and heart failure
Xarelto , for preventing and treating blood clots; risk reduction for patients with coronary or peripheral artery disease
Januvia , for treating diabetes
Farxiga , for treating diabetes, heart failure and chronic kidney disease
Entresto , for treating heart failure
Enbrel , for treating rheumatoid arthritis, psoriasis and psoriatic arthritis
Imbruvica , for treating blood cancers
Stelara , for treating psoriasis, psoriatic arthritis, Crohn’s disease and ulcerative colitis
Fiasp/Novolog , for treating diabetes

These 10 drugs are among the highest costs in total spending in Medicare Part D. In fact, Medicare enrollees taking these drugs paid a collective $3.4 billion in out-of-pocket costs in 2022 to obtain them. Due to the high costs of these prescriptions, many Americans are forced to choose between paying for vital medications or food and other necessities.

What’s Next?

The Medicare Drug Price Negotiation Program is the Biden administration’s latest effort to combat rising health care costs. As such, Medicare drug price negotiation aims to lower out-of-pocket costs for millions of seniors and offer savings for taxpayers.

The first round of Medicare Part D drug negotiations will begin this year, with the new prices becoming effective in 2026. Over the next four years, Medicare plans to negotiate prices for up to 60 Part D and Part B drugs—and up to an additional 20 drugs every year after that.

Employers should continue to monitor health care trends, utilization and spending. Contact us today for more information.

Pay Transparency Law for Employers

Mon, 25 Sep 2023 19:52:39 GMT

New York State’s Pay Transparency Law (New York State Labor Law Section 194-b) requires employers with four (4) or more employees to include a range of pay for all advertised job, promotion, or transfer opportunities. This fact sheet is intended to help employers navigate the new law and meet its requirements.

NYS PAY TRANSPARENCY LAW

As of September 17, 2023, the New York State Pay Transparency Law requires all job, promotion or transfer opportunities advertised by an employer to include a salary, hourly rate, or range of pay.
This law applies to employers with four (4) or more employees.
This applies to all job, promotion or transfer opportunities that will be physically performed, at least in part, in New York State.
The law also applies to opportunities performed outside New York State that report to a supervisor or office in New York State.
Any remote or telecommuting opportunities that will report to a supervisor, office or worksite in the state of New York are covered by this law, regardless of whether the employee will be working from home outside New York State.
If an employee’s physical presence in New York State is only for occasional work-related purposes, such as a meeting, a conference, or communicating with employees based in New York State, that would not be enough activity to be considered a job performed in New York State.
Under this law, employers are prohibited from retaliating against employees who discuss their compensation with coworkers.

ADVERTISEMENTS COVERED BY THIS LAW

Advertisements require a range of pay regardless of how or where they are posted.
This law covers any job posting shared with more than one person and made available internally or to the public.
Covered posting mediums include but are not limited to: newspaper ads, printed flyers, social media posts, website postings, anything sent to an electronic mailing list, and emails sent to a pool of more than one applicant.
Opportunities are covered whether posted by the employer directly or on the employer’s behalf by a third-party such as through a job-listing website.
Employers are not responsible for any postings that are re-posted or “scraped” by a third-party website without their consent.
If an employer requires more space to include full range of pay information, they may post it in a separate location, as long as the information is still available free of charge and easily accessible. For instance, posting on social media with a link to the full job posting on the company’s website.

HOW TO DRAFT A PAY RANGE

A pay range must include a minimum and maximum annual salary or hourly rate of compensation for a job, promotion, or transfer opportunity that the employer in good faith believes to be accurate at the time of the posting.
If the employer does not plan to offer a range, but instead plans to offer a single fixed rate, such as $30 an hour, the fixed rate must be listed.
A pay range cannot be open-ended. For example, “$20+ an hour” is not allowed.
A range of pay cannot include other forms of compensation or benefits such as employer provided insurance, paid leave or retirement savings. However, employers are encouraged to disclose such benefits separately.
If compensation for an opportunity is completely commission based, employers must state that clearly when advertising the opportunity.
The law specifies employers must make a good faith effort to determine range of pay.

GOOD FAITH EFFORT

A good faith pay range is one that an employer legitimately believes they are willing to pay at the time of the advertisement’s posting.
Employers should consider factors such as the job market, current employee pay levels, hiring budget and the experience/education levels they are willing to accept from the candidate in determining a good faith range of pay.
An employer may adjust the range of pay in an advertisement after collecting additional information during the hiring process.

HOW TO DRAFT A POSTING FOR MULTIPLE LOCATIONS OR OPPORTUNITIES

A range of pay must be for single opportunity and location/region.
Postings that include multiple possible locations or multiple opportunities at different levels of seniority must include a separate pay range for each location or opportunity.
For example, if an employer is using one post to seek three Plant Manager positions in three different counties, the employer must post a range for each location:

PLANT MANAGER LOCATION RANGE OF PAY

Westchester County $100,000 - $125,000

Erie County $75,000 - $90,000

Clinton County $75,000 - $90,000

TEMPORARY HELP FIRMS

This law does not apply to temporary help firms seeking to hire workers to perform work or services for other organizations.
Employers seeking to hire workers through a temporary help firm must include a range of pay.
However, any advertisement for an opportunity to work directly for the temporary help firm, for instance as the Executive Director, must include a range of pay.

JOB DESCRIPTIONS

All postings for a job, promotion or transfer opportunity must contain a job description when available.
An employer must create a job description except in the limited circumstance where the title conveys the job duties.
When the job title clearly conveys the duties for the job, for instance, dishwasher, a job description is not required.

WHAT THIS LAW DOES NOT DO

This law does not require employers to create a posting for every available job, promotion, or transfer opportunity.
This law does not require employers to use a specific medium for advertisements.

Educating Young Employees on Open Enrollment

Mon, 25 Sep 2023 14:11:50 GMT

Many employees need help with open enrollment. This is particularly true among younger workers, who typically have less experience selecting benefits than older generations that have been in the workforce longer. A study by insurance and employee benefits provider MetLife found that 26% of Generation Z (Gen Z) employees are insecure about making benefits decisions.

Employers who successfully educate young employees about open enrollment are likely to find that workers are more satisfied with their benefits packages, make better financial decisions and are more likely to recommend their organization to other people. Such positive outcomes can significantly influence an organization’s overall financial performance.

To this end, employers can implement several strategies for educating young employees to help them navigate open enrollment.

Educating Young Employees

Clear communication is crucial to ensure workers understand the open enrollment process and the benefits they’re signing up for. Employers should consider the following strategies for educating younger employees on open enrollment:

Prioritize internal communications. Young employees may be unfamiliar with the open enrollment process. Inform employees about the upcoming open enrollment through multiple channels (e.g., emails, flyers and meetings). Ensure every employee knows when open enrollment begins, the last day to complete enrollment and the consequences of failing to enroll in time.
Create multiple avenues for communication. Ensure young workers know how to ask questions about open enrollment and feel comfortable speaking to HR and their managers about the upcoming enrollment. Encourage these employees to discuss their benefits plans with their friends, family and more experienced coworkers.
Provide educational resources. Give workers the information they need to make informed benefits decisions during open enrollment. To target young workers, employers should provide digital resources such as online webinars, videos, social media posts and articles.
Explain benefits options. Employees are likely to think primarily of health insurance during open enrollment and may overlook voluntary benefits that could be useful to them. Employers should provide information about employee benefits choices (e.g., pet insurance, student loan repayment assistance and employee assistance programs) so that young employees don’t forgo benefits they may want later in the year.
Cater to employee needs. Young generations of workers have different benefits needs than older generations. For example, they’re more likely to prioritize mental health resources and student loan assistance over life insurance or financial planning for retirement. Employers should capitalize on the wants and needs of younger generations to educate them on benefits they care about.
Encourage young employees to take their time. Rushing through open enrollment can cause workers to forgo crucial benefits. This is especially true of young workers, who may feel stressed or unsure of the open enrollment process. Give employees ample time to research and select their benefits and encourage them to ask questions.
Communicate all year round. Benefits education should be more than a flurry of activity during the open enrollment window. Employers should provide employees with the resources they need to understand and maximize their benefits all year round, highlighting the direct financial impact benefits decisions can have on employees. This can help young workers understand the importance of open enrollment and the impact that rushing through the process can have on their financial well-being, increasing the likelihood that they’ll make informed benefits decisions when the time comes.

Conclusion

Open enrollment can be a nerve-wracking period for all employees. The stress of selecting benefits is often most keenly felt by younger workers with less experience selecting benefits. Employers can use open enrollment as an opportunity to increase communication and trust with young workers by educating them on the process and their benefits choices. This may increase younger generations’ satisfaction with their benefits packages and jobs, improving organizations’ employee attraction and retention and ultimately their bottom lines.

Answers to Frequently Asked Questions on the DOL Proposed Overtime Rule

Sat, 23 Sep 2023 22:04:32 GMT

On Aug. 30, 2023, the U.S. Department of Labor (DOL) announced a proposed rule to amend current requirements employees in white collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA).

The FLSA white collar exemptions apply to individuals in executive, administrative, professional, and some outside sales and computer-related occupations. Some highly compensated employees may also qualify for the FLSA white collar overtime exemption.

To qualify for this exemption, white collar employees must satisfy the standard salary level test, among other criteria. This salary level is a wage threshold that white collar employees must receive to qualify for the exemption.

The DOL is proposing to increase the standard salary level from:

$684 to $1,059 per week ($55,068 per year); and
$107,432 to $143,988 per year for highly compensated employees.

Action Steps

The proposal does not impose any new requirements on employers at this time. However, employers should become familiar with the proposed rule and evaluate what changes they may need to adopt if the rule is implemented as proposed.

OVERVIEW

1. What is the purpose of the Department’s proposed rule?

This rulemaking proposes to update and revise the regulations for determining whether certain white-collar salaried employees are exempt from minimum wage and overtime requirements under section 13(a)(1) of the Fair Labor Standards Act (FLSA). Employees are exempt if they are employed in a bona fide executive, administrative, or professional (EAP) capacity as those terms are defined in the Department of Labor’s regulations at 29 CFR part 541. This exemption from the FLSA is sometimes referred to as the “white-collar” or “EAP” exemption.

2. What is “overtime?”

Unless specifically exempted, an employee covered by the FLSA must receive pay for hours worked in excess of 40 in a workweek at a rate not less than one and one-half their regular rate of pay. This is referred to as “overtime” pay.

3. What determines if an employee falls within the EAP exemption?

Currently, to fall within the EAP exemption, an employee generally must:

Be paid a salary, meaning that they are paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality or quantity of work performed (the “salary basis test”);
Be paid at least a specified weekly salary level, which is $684 per week (the equivalent of $35,568 annually for a full-year employee) in the current regulations (the “salary level test”); and
Primarily perform executive, administrative, or professional duties, as provided in the department’s regulations (the “duties test”).

Certain employees are not subject to either the salary basis or salary level tests (for example, doctors, teachers, and lawyers).

4. When did the Department last revise the exemption regulations for EAP workers?

The Department last updated the EAP exemption regulations in 2019. That update, which included setting the standard salary level test at its current amount of $684 per week (equivalent to a $35,568 annual salary), has been in effect since January 1, 2020.

5. Why is the Department proposing to revise the exemption regulations for EAP workers?

The Department is committed to keeping the earnings thresholds up to date for the benefit of both workers and employers. Four years have passed since the 2019 rule, during which time salaried workers in the U.S. economy have experienced a rapid growth in their nominal wages, which lessens the effectiveness of the current salary level threshold. Through this rulemaking, the Department seeks to update the salary level test to more effectively identify who is employed in a bona fide executive, administrative, or professional capacity and ensure that the FLSA’s intended overtime protections are fully implemented.

In addition to updating the salary level to account for increased wages, the Department’s proposal would ensure that the salary level effectively performs its historic function of screening nonexempt employees from the overtime exemption and would more effectively account for the switch from a two-test to a one-test system.

6. What is the Department proposing to change about its exemption regulations for EAP workers?

In this rulemaking, the Department proposes to:

Increase the standard salary level to the 35th percentile of earnings of full-time salaried workers in the lowest-wage Census Region (currently the South), which would be $1,059 per week ($55,068 annually) based on current data;
Apply the standard salary level to Puerto Rico, Guam, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands, and increase the special salary levels for American Samoa and the motion picture industry;
Increase the highly compensated employee (HCE) total annual compensation requirement to the annualized weekly earnings of the 85th percentile of full-time salaried workers nationally, which would be $143,988 per year based on current data; and
Automatically update these earnings thresholds every 3 years with current wage data to maintain their effectiveness.

7. Is the Department proposing any changes to the current duties test?

The Department is not proposing changes to the standard duties test, consistent with its approach in both the 2016 and 2019 rules. At this time, the Department favors keeping the current standard duties test, which is well known to employers and employees. As long as it is paired with an appropriate salary level requirement, the standard duties test can appropriately distinguish bona fide EAP employees from nonexempt workers.

8. Where can I review, and how can I comment on, the Department’s proposed changes to the exemption regulations for EAP workers?

The Department's Notice for Proposed Rulemaking (“NPRM”) is available at www.regulations.gov. The Department encourages all interested parties to participate in the rulemaking process by submitting written comments regarding the NPRM within 60 days from the publication date in the Federal Register.

FLSA Basics

9. What does the FLSA do?

The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for employees in the private sector and in federal, state, and local governments. Covered nonexempt workers are entitled to a federal minimum wage of not less than $7.25 per hour. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.

10. Who is covered by the FLSA?

Generally, employees of enterprises that have an annual gross volume of sales made or business done of $500,000 or more are covered by the FLSA. In addition, employees of certain businesses are covered by the FLSA regardless of the amount of gross volume of sales or business done. These businesses include hospitals; establishments providing medical or nursing care for residents; schools (whether operated for profit or not for profit); and public agencies. Employees of employers that are not covered by the FLSA on an enterprise basis may still be entitled to its protections if they are individually engaged in interstate commerce.

11. Does the FLSA and the Department’s proposed rule apply to state or local government workers?

Yes, state and local government employers are subject to the FLSA and the Department’s proposed regulations concerning EAP employees.

12. Is there a small business exemption from the FLSA or the Department’s proposed rule for EAP workers?

The FLSA does not provide an exemption for small businesses. Generally, the FLSA and the proposed rule apply to employees of enterprises that have an annual gross volume of sales made or business done of $500,000 or more, and certain other businesses. The FLSA creates a level playing field for businesses by setting a floor below which employers may not pay their employees.

13. Is there an exemption for nonprofit organizations from the FLSA or the Department’s proposed rule?

There is no exemption for nonprofit organizations under the FLSA or in the proposed rule. Thus, the proposed rule may impact nonprofit organizations that have an annual dollar volume of sales or business done of at least $500,000. In determining coverage, only activities performed for a business purpose are considered. Charitable, religious, educational, or similar activities of organizations operated on a nonprofit basis where such activities are not in substantial competition with other businesses are not considered. Employees of employers that are not covered by the FLSA on an enterprise basis may still be entitled to its protections if they are individually engaged in interstate commerce.

14. How is overtime pay determined?

Unless exempt, an employee covered by the FLSA must receive overtime pay for all hours worked over 40 in a workweek at a rate not less than one and one-half times their regular rate of pay. For guidance in determining an employee’s “regular rate of pay” when calculating overtime pay, refer to WHD Fact Sheet #56A or the Department’s regulations at 29 CFR part 778.

15. What is the FLSA’s EAP exemption?

Section 13(a)(1) of the FLSA exempts individuals employed in a “bona fide executive, administrative, or professional capacity” from the Act’s minimum wage and overtime requirements. Certain computer professionals and outside sales employees are included in the exemption and therefore excluded from the minimum wage and overtime requirements. The FLSA instructs the Department to issue regulations that define and delimit the EAP exemption; those regulations are located at 29 CFR part 541.

16. I'm paid a salary and my job title is manager. Am I exempt from overtime pay?

Job titles do not determine exempt status, and the fact that a white-collar employee is paid on a salary basis is not alone sufficient to exempt that employee from the FLSA’s minimum wage and overtime requirements. For an exemption to apply, an employee’s specific job duties and salary must meet all of the applicable requirements provided in the Department’s regulations.

17. What if a state has its own laws about who is entitled to overtime pay?

The FLSA provides minimum standards and does not preempt a state from establishing more protective standards. If a state establishes a more protective standard than the provisions of the FLSA, the higher standard applies in that state. This would include, for example, exemption criteria for EAP employees under state law with higher earnings thresholds than those provided in the Department’s federal regulations.

Earnings Thresholds

18. What are the current earnings thresholds needed for the EAP exemption?

Under the current regulations, an executive, administrative, or professional employee generally must be paid at least $684 per week (equivalent to $35,568 annually for a full-year employee) to be exempt from the FLSA overtime protections. This $684 per week threshold is the standard salary level.

A computer professional may be exempt if they are paid at least $684 per week or at least $27.63 an hour, if paid on an hourly basis.

There is no salary level test required to qualify as an exempt outside sales employee. Certain professionals including doctors, lawyers, and teachers are also not subject to the salary tests.

Finally, the current regulations also contain a less restrictive duties test for certain highly compensated employees who receive total annual compensation of $107,432 or more and are paid at least $684 per week.

19. What is the proposed standard salary level?

The Department is proposing to set the standard salary level at the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region (the South). Using 2022 data, the proposed salary amount would equal $1,059 per week (which is $55,068 annually for a full-year worker).

20. Why is the Department proposing to set the standard salary level at the 35th percentile of weekly earnings of full-time salaried workers?

In updating the standard salary level, the Department seeks to more effectively identify who is employed in a bona fide executive, administrative, or professional capacity. The proposal updates the standard salary level to account for earnings growth since the 2019 rule and adjusts the salary level methodology based on the lessons learned in recent rulemakings.

21. What salary levels have the Department proposed to apply in U.S. territories?

This proposal would restore the Department’s longstanding policy prior to 2019 of only setting special lower salary levels for employees in those U.S. territories that are not subject to the full federal minimum wage (currently $7.25 per hour). Accordingly, the Department proposes to apply the standard salary level ($1,059 per week) to employees in Puerto Rico, where the federal minimum wage has applied since 1996; Guam, where the federal minimum wage has applied since at least 1957; the U.S. Virgin Islands, where the federal minimum wage has applied since 1989; and the CNMI, where the federal minimum wage has applied since 2018.

The Department proposes to set a special salary level for employees in American Samoa equal to 84 percent of the standard salary level ($890 per week, based on a proposed standard salary level of $1,059 per month), since American Samoa remains subject to special minimum wage rates below the federal minimum wage. American Samoa is scheduled to increase its minimum wage rates until they equal the federal minimum wage. The Department proposes that 90 days after the highest industry minimum wage for American Samoa equals the federal minimum wage, the full standard salary level would apply for all EAP employees in all industries in American Samoa.

22. Is the Department proposing to change the special base rate for employees in the motion picture industry?

The current regulations permit employers to exempt employees in the motion picture industry who are paid a specified base rate per week (or a proportionate amount based on the number of days worked), so long as they meet the duties test for the EAP exemption. Consistent with its practice in recent rulemakings, the Department proposes to increase the required base rate in proportion to the proposed increase in the standard salary level test, resulting in a proposed base rate of $1,617 per week (or a proportionate amount based on the number of days worked).

23. Is the Department proposing to increase the salary level for highly compensated employees?

The Department is proposing to set the Highly Compensated Employee (HCE) annual compensation level equal to the 85th percentile of earnings for full-time salaried workers nationwide. Based on current data, the proposed HCE threshold would be $143,988 per year, of which at least $1,059 per week (the proposed standard salary level) would have to be paid on a salary or fee basis. The Department believes that its proposed methodology results in an HCE level that is low enough to not restrict the use of the HCE test for employers in low-wage regions and industries, and high enough to guard against the unintended exemption of workers who are not bona fide executive, administrative, or professional employees in higher-income regions and industries.

Future Updates

24. Does the proposed rule address future updates to the earnings thresholds provided in the EAP exemption regulations?

The Department is proposing a mechanism to automatically update the earnings thresholds every three years to ensure that they remain effective tests for exemption. If finalized, this proposal would ensure that the Department can timely and efficiently update the earnings thresholds in future years to reflect current wage data. Experience has shown that the salary level test is a strong measure of exempt status only when it is up to date. Left unchanged, the test becomes substantially less effective as wages for overtime-protected workers increase over time. Automatically updating the salary level and HCE total annual compensation requirement using the most recent data will ensure that these tests continue to accurately reflect current economic conditions.

25. How is the Department proposing to automatically update the salary level and HCE total compensation levels?

The Department is proposing to update the standard salary level and the HCE total compensation requirement every three years to reflect current earnings data. Specifically, the Department is proposing to update the standard salary level by adjusting it to remain at the 35th percentile of weekly earnings of full-time nonhourly workers in the lowest-wage Census Region (currently the South). The Department is proposing to update the HCE total annual compensation requirement to remain at the annualized weekly earnings of the 85th percentile of full-time nonhourly workers nationally. The Department proposes to update both of these thresholds using the most recent available four quarters of data, as published by BLS, preceding the publication of the Department’s notice to automatically update the thresholds.

Because the proposed special salary level for American Samoa and the base rate for the motion picture industry are set in relation to the standard salary level, those earnings thresholds would also reset at the time the standard salary level is updated. At least 150 days before the date of the update of the standard salary level and the HCE total annual compensation requirement, the Department would publish in the Federal Register a notice with the new earnings levels described above.

26. Does the proposed rule include any special exceptions where the earnings thresholds would not be automatically updated?

The Department’s proposal includes a provision allowing the Department to temporarily delay a scheduled automatic update where unforeseen economic or other conditions warrant. This feature would afford the Department added flexibility to adopt to unforeseen circumstances without sacrificing the benefits provided by automatic updating.

Impact

27. What are the estimated costs, benefits, and transfers of the proposed rule?

The Department estimates that in Year 1, the proposed rule would impose $1.2 billion of direct costs on employers, including $427.2 million in regulatory familiarization costs, $240.8 million in adjustment costs, and $534.9 million in managerial costs. The Department estimates that the proposed rule would result in a Year 1 income transfer of $1.2 billion from employers to employees, predominantly from new overtime premiums, or pay raises to maintain the exempt status of some affected employees. Beyond these wage transfers, the proposal could reduce the risk of misclassification, increase worker productivity, reduce employee turnover, and increase personal time for workers.

28. How many employees would be impacted by the proposed salary level increase?

In the first year, the Department estimates that 3.4 million workers exempt under the current regulations who earn at least the current weekly salary level of $684 but less than the proposed salary level of $1,059 would, without some intervening action by their employers, become newly entitled to overtime protection under the FLSA.

Similarly, the Department estimates that an additional 248,900 workers who earn at least $107,432 per year (the current HCE total annual compensation level) and who meet the minimal HCE duties test but not the standard duties test, would, without some intervening action by employers, become eligible for overtime if the HCE total annual compensation level were increased to the proposed level of $143,988 per year.

Source: U.S. Department of Labor – Frequently Asked Questions for the Notice of Proposed Rulemaking: Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees

EEOC Delays 2022 EEO-1 Reporting Until Fall 2023

Fri, 22 Sep 2023 20:43:15 GMT

Recently, the Equal Employment Opportunity Commission (EEOC) announced that the date for employers to begin submitting 2022 EEO-1 Reports is delayed again, this time with a tentative new opening date in the fall of 2023. The EEOC had previously extended the expected opening date for 2022 EEO-1 reporting until mid-July 2023. Under Title VII of the Civil Rights Act, certain employers must usually submit EEO-1 by March 31 each year.

The following entities are subject to EEO-1 reporting:

A private employer that has 100 or more employees (with limited exceptions for schools and other organizations);
A private employer with between 15 and 99 employees, if it is part of a group of employers that legally constitutes a single enterprise that employs a total of 100 or more employees; and
A federal contractor that has 50 or more employees; is either a prime contractor or first-tier subcontractor; and has a contract, subcontract or purchase order amounting to $50,000 or more.

Employers filing EEO-1 Reports for the first time must register to receive a login, password and further instructions for filing from the EEOC. Although the EEOC sends notification letters to employers it knows to be subject to EEO-1 requirements, all covered employers are responsible for obtaining and submitting the necessary information prior to the appropriate deadline.

EEOC Announcement

The reason behind the latest delay is that the EEOC is “currently completing a mandatory, three-year renewal of the EEO-1 Component 1 data collection by the Office of Management and Budget (OMB) under the Paperwork Reduction Act (PRA),” according to the agency. Component 1 of the EEO-1 requires employers to submit additional employee demographic information. EEO-1 reporting has been delayed in prior years, with the portal for submitting 2019, 2020 and 2021 data closing late in 2021 and 2022.

Understanding the Differences Between Workers' Compensation and First Aid Claims: A Guide for Employers

Thu, 14 Sep 2023 21:35:51 GMT

Workplace accidents and injuries are an unfortunate reality in many industries. When such incidents occur, it's essential for both employers and employees to understand the differences between Workers' Compensation claims and First Aid claims. These distinctions are crucial because they dictate how injuries are handled, the compensation employees receive, and the potential impact on a company's bottom line. In this article, we will explore the key differences between Workers' Compensation claims and First Aid claims and provide guidance on how employers should handle these situations.

Workers' Compensation Claims

Workers' Compensation is a state-mandated insurance program that provides benefits to employees who are injured or become ill due to work-related incidents. Here are the key characteristics of Workers' Compensation claims:

1. Eligibility: Employees who suffer work-related injuries or illnesses, regardless of fault, are generally eligible to file Workers' Compensation claims. This includes injuries resulting from accidents, exposure to harmful substances, or repetitive stress.

2. Coverage: Workers' Compensation typically covers medical expenses, wage replacement (usually a portion of the employee's average weekly wage), rehabilitation, and compensation for permanent disabilities.

3. No-Fault System: Workers' Compensation is a no-fault system, meaning that employees do not need to prove that their employer was negligent or at fault for the injury. As long as the injury is work-related, the employee is entitled to benefits.

4. Legal Protection: Employees who accept Workers' Compensation benefits typically waive their right to sue their employer for the same injury. This provides legal protection for employers.

First Aid Claims

First Aid claims, on the other hand, pertain to minor injuries that can be promptly and easily treated with no more than two visits to a medical provider. Once treatment exceeds two treatments from a medical provider, it must be treated as a Workers’ Compensation claim. Here's what employers should know about First Aid claims:

1. Nature of Injuries: First Aid claims typically involve minor injuries such as cuts, bruises, small burns, or sprains. These injuries require minimal treatment and do not result in a significant amount of time off work.

2. Exclusion from Workers' Compensation: In most jurisdictions, First Aid claims are explicitly excluded from Workers' Compensation coverage. However, the definition of what constitutes "First Aid" may vary by state and should be understood in accordance with local regulations.

3. Employer Responsibility: Employers are generally responsible for providing immediate first aid to injured employees and ensuring that appropriate first aid supplies are readily available. This may include bandages, antiseptics, and basic medical equipment.

4. Employers choosing to handle minor injuries as a First Aid claim, must be aware that they will be responsible for paying any associated medical bills that are incurred from the treatment. The benefit of handling a claim in this manner is to prevent having a claim against your Workers’ Compensation policy, which could have a negative impact on your policy premiums.

How Employers Should Handle These Claims

Handling Workers' Compensation and First Aid claims correctly is essential for maintaining workplace safety, employee morale, and legal compliance. Here are some guidelines for employers:

1. Immediate Response: When an injury occurs, employers should provide prompt first aid if necessary and seek professional medical attention if the injury is beyond basic first aid. Ensure that any necessary emergency services are contacted promptly.

2. Report the Incident: Establish a clear procedure for reporting workplace injuries. Require employees to report any injury, no matter how minor, to a supervisor or HR department immediately.

3. Document Everything: Maintain detailed records of the incident, including witness statements, photographs of the scene, and any actions taken. Proper documentation is crucial for both Workers' Compensation and First Aid claims.

4. Notify the Insurance Carrier (or Your Agent): If an injury requires professional medical treatment, contact your Workers' Compensation insurance carrier promptly to ensure that you are following the proper procedures based on whether you want to handle the claim at a true Workers’ Compensation claim or a First Aid claim. Both types of claims have specific documentation requirements, and you want to ensure that you complete all of the legally required documentation in a timely manner.

5. Comply with Regulations: Familiarize yourself with state-specific Workers' Compensation laws and regulations to ensure compliance. Consult with legal counsel or an insurance expert if needed.

6. Prevention is Key: Implement safety protocols, training programs, and preventive measures to reduce workplace injuries. A safer work environment benefits both employees and employers.

In summary, understanding the differences between Workers' Compensation claims and First Aid claims is vital for employers. Properly handling these claims not only ensures that injured employees receive appropriate care and compensation, but also safeguards the interests of the employer. By following established procedures, providing first aid when necessary, and staying compliant with state laws, employers can navigate workplace injuries more effectively and create a safer work environment for their employees.

Understanding Human Capital Management (HCM): Maximizing Your Most Valuable Asset

Mon, 11 Sep 2023 14:33:29 GMT

In today's rapidly evolving business landscape, an organization's most valuable asset isn't necessarily its cutting-edge technology or its impressive list of clients. Instead, it's the people who make up the workforce. Human Capital Management (HCM) is the strategic approach that recognizes and harnesses this vital resource, ensuring that businesses can thrive in a competitive world.

What is Human Capital Management (HCM)?

Human Capital Management (HCM) is a holistic and strategic approach to managing an organization's workforce. It encompasses a wide range of practices and processes designed to attract, develop, motivate, and retain employees, ultimately driving business success.

HCM is not just about the administrative aspects of personnel management, like payroll and benefits administration. It focuses on optimizing the value that employees bring to the organization through their skills, knowledge, and abilities, with technology acting as a crucial enabler.

Key Components of HCM

Talent Acquisition: HCM begins with attracting and hiring the right talent for the organization. This involves creating effective recruitment strategies, conducting thorough interviews, and evaluating candidates' fit within the company culture.
Onboarding and Training: Once hired, employees need proper onboarding and training to be productive. HCM includes developing comprehensive training programs that align with the organization's goals and help employees reach their potential.
Performance Management: Effective performance management involves setting clear expectations, providing regular feedback, and conducting performance evaluations. HCM systems often include tools for tracking employee performance and setting goals.
Career Development: Organizations that invest in their employees' career growth tend to have more engaged and motivated teams. HCM includes creating pathways for employees to develop new skills and advance within the company.
Compensation and Benefits: Fair and competitive compensation packages are essential for attracting and retaining top talent. HCM involves designing compensation and benefits packages that reflect market trends and employee contributions.
Workforce Analytics: Data-driven decision-making is a fundamental aspect of HCM. Analyzing workforce data helps organizations identify trends, predict future needs, and make informed decisions about resource allocation.

The Benefits of HCM

Implementing effective Human Capital Management can bring numerous advantages to organizations, including:

Improved Productivity: When employees are well-trained, motivated, and equipped with the right tools, productivity increases.
Enhanced Employee Satisfaction: HCM practices that focus on employee development and well-being contribute to higher job satisfaction and lower turnover rates.
Cost Reduction: Efficient HCM can reduce recruitment costs by retaining top talent and avoiding frequent turnover.
Strategic Alignment: HCM helps align workforce strategies with overall business goals, ensuring that human resources are used strategically.
Compliance: HCM systems often incorporate tools for tracking and complying with labor laws and regulations.

Advantages of HCM Enhanced by Technology

Adopting technology-driven Human Capital Management can offer numerous benefits to organizations, which include:

Enhanced Efficiency: Technology streamlines various administrative tasks, reducing the need for manual work and mitigating the risk of errors.
Informed Decision-Making: Workforce data analytics provides valuable insights, empowering organizations to make informed decisions and align their HR strategies with their business objectives.
Increased Employee Engagement: Technology facilitates continuous feedback, personalization, and supports career development, leading to higher levels of employee satisfaction and improved retention rates.
Ensured Compliance: HCM software automates compliance-related tasks, helping organizations adhere to labor laws and regulations effectively.

Human Capital Management (HCM) represents a fundamental shift in how organizations view and manage their employees. It recognizes that people are the most critical asset in achieving business success. By investing in talent acquisition, development, and retention, organizations can optimize their workforce's potential, improve productivity, and gain a competitive edge in today's fast-paced business environment. As technology continues to evolve, HCM will play an increasingly vital role in shaping the future of work.

New Form I-9 Includes Remote Verification Procedure for E-Verify Users

Fri, 25 Aug 2023 17:01:31 GMT

On Aug. 1, 2023, the U.S. Citizenship and Immigration Services (USCIS) published a new version of its Employment Eligibility Verification form, also known as Form I-9. Employers are required to use the new form exclusively beginning on Nov. 1, 2023.

The Form I-9 instructions also clarify procedures for employers that are eligible to utilize remote examination as an alternative to physical examination of employees’ documentation. Employers enrolled and participating in E-Verify may choose to examine documents remotely.

Dates of Use

The previous version of this form expired on Oct. 31, 2022, but USCIS instructed employers to continue using this expired form until the new version was published.

USCIS has indicated that employers may begin using the new form immediately and that use of the expired form (dated “10/19/2019”) will be allowed through Oct. 31, 2023. Employers can find the publication date of Form I-9 in the lower left corner of the form.

Beginning Nov. 1, 2023, employers will need to use the newest version of the form. Employers that use previous versions of the form after this date will not be in compliance with federal employment eligibility verification requirements. Use of the revised Spanish version of the form is available for use in Puerto Rico only.

As outlined below, employers enrolled and participating in E-Verify may choose to examine documents remotely. However, employers that were not enrolled in E-Verify during the COVID-19 flexibilities must complete an in-person physical examination by Aug. 30, 2023.

Form I-9 Updates

USCIS has published a complete list of Form I-9 updates . Some of the most notable changes include:

Sections 1 and 2 have been reduced to a single sheet; all previous fields remain, but some fields have been merged
The preparer/translator certification area has been moved to a standalone supplement that employers can use as necessary for initial verification or recertification
Section 3 (Reverification and Rehire sections) has been moved to a standalone supplement that employers can use as necessary
The list of acceptable documents now includes some acceptable receipts, guidance and links to information on automatic extensions of employment authorization documentation.

The new Form I-9 includes updated instructions. These instructions have been condensed from 15 to eight pages and include additional definitions, streamlined processes, and an explanation of how to use the new check boxes to indicate when Form I-9 documents were examined remotely.

Remote Document Verification

Under current requirements, employers must physically inspect I-9 acceptable documents to certify their employees are authorized to work in the United States. However, the new form includes alternative remote verification procedures employers enrolled in E-Verify can use to comply with their Form I-9 obligations.

USCIS has published instructions for remote document verification , as outlined in the following sections.

E-Verify Participation Required

Employers must participate in E-Verify and be in good standing if they want to examine employee documents remotely. New E-Verify enrollees and users must complete an E-Verify tutorial that includes fraudulent document awareness training. Existing employers already enrolled in E-Verify have access to this tutorial and may retake it at any time.

E-Verify employers are in good standing if they:

Are enrolled in E-Verify with respect to all hiring sites that use the alternative procedure to examine documents remotely
Use E-Verify to confirm the employment eligibility of newly hired employees in the United States
Comply with all other requirements of the E-Verify program.

Remote Examination of Documents Procedures

To comply with procedures for the remote examination of documents, employers must:

Examine copies (front and back, if the document is two-sided) of Form I-9 documents or an acceptable receipt to ensure that the documentation presented reasonably appears to be genuine and relates to the employee
Conduct a live video interaction with the individual presenting the document(s) to ensure that the documentation reasonably appears genuine and relates to the individual. The employee must first transmit a copy of the document(s) to the employer and then present the same document(s) during the live video interaction
Retain a clear and legible copy of the documentation (front and back if the documentation is two-sided).

In addition, employers must indicate that they used an alternative procedure on Form I-9 by:

Checking the box on the Form I-9 dated “08/01/2023”; the box indicates that they used an alternative procedure in the Additional Information field in Section 2; or
Annotating the Form I-9 dated “10/21/2019,” with “Alternative Procedure” in the Additional Information field in Section 2.

Employers using the remote verification option should also review the instructions for rehire, recertification and the retention of documents.

Supporting Employees During the 2023-24 School Year

Fri, 25 Aug 2023 14:18:40 GMT

As summer comes to an end and fall begins, employees with school-age children may have increased caretaking responsibilities as their kids begin a new academic year. In addition to other day-to-day challenges, parents are now dealing with school pick-up and drop-off, unexpected sick days and other occurrences that could affect their work-life balance.

Employers can support employees during this transition into the school year by acknowledging these changes and offering flexibility. This article explores considerations for acknowledging and responding during the back-to-school season.

Supportive Leave Policies

As Americans continue to live with COVID-19 circulating just like the common cold and flu, illnesses are inevitable. Therefore, employers may want to review their leave policies. While an organization’s policies may accommodate employees who become ill, family members could also become sick. Employers should consider offering workplace flexibility that allows them to leave and care for their family members if needed. Some employers have leave policies that allow employees to take time off when they or their family members are sick or when they need to receive vaccines for these illnesses. With the back-to-school season approaching, employers may be reevaluating their current leave offerings to ensure they reflect these realistic needs.

Flexible Working Arrangements

Remember that life happens, and unexpected circumstances will arise. Employers can consider providing remote and hybrid work models when possible or as needed. Even when remote and hybrid work is not feasible, flexible scheduling can allow employees time for other tasks, such as dropping off or picking up their children from school.

Furthermore, the workplace could implement core hours that allow employees some leniency in when they can start and stop their days. Whichever accommodations an employer chooses, it’s important to communicate to employees that the company is willing to work around events that may arise in their lives. This assurance may reduce stress during the back-to-school transition and could positively impact employee retention. However, it’s important to note that accountability should come with flexibility, so employees must work out any arrangements with their managers and teams.

Resources for Caretakers

Family caregivers account for an estimated 18% to 22% of the U.S. labor force, according to the Rosalynn Carter Institute for Caregivers. Furthermore, nearly one-third of caregiver employees have voluntarily left a job at some point during their careers because of their caregiving responsibilities.

While it may not be feasible for all employers to directly provide caretaking services, they can help ensure their employees have access to such resources.

Employers may consider hosting a workshop, distributing a handout or otherwise providing information regarding caretaking resources. Even if there are no specific caregiving benefits available at an organization, managers or supervisors could simply ask working employees how they are doing during the back-to-school season. This kicks off an open dialogue, demonstrating an interest in how they’re doing as a person and helping reduce guilt about juggling personal and work responsibilities.

Many schools end between 3 p.m. and 4 p.m., which means working parents might need child care for several hours or leave to handle it themselves. When school is closed due to holidays or professional development, working parents may have to find a secondary plan for those days while they’re still working. Helping employees feel supported during their search for caretakers or after-school programs for their children can go a long way in making them feel supported and may boost overall employee retention.

Takeaway

The back-to-school transition may initially seem misplaced to the workplace, but the reality is that many employees have school-age children and associated caretaking responsibilities. As a result, employers should prepare to be flexible, accommodate employees during this transition and provide relevant resources. These efforts can help make a difference and ultimately assist in appealing to and keeping workers during a time when attraction and retention are significant challenges for organizations.

DOL Issues SAR Forms for Plan Years Beginning in 2023 and Later

Thu, 24 Aug 2023 14:28:52 GMT

The U.S. Department of Labor (DOL) has released Summary Annual Report (SAR) model forms for plan years beginning in 2023 and later. The SAR is a narrative summary of the information in Form 5500 and must be provided annually by administrators of plans subject to the Form 5500 annual reporting requirements.

Model Forms

The latest model forms can be found on the DOL’s Reporting and Filing webpage under the “General Reporting and Filing Compliance Assistance” tab. There are two models for plan years beginning in 2023 and later:

Forms for plan years beginning in 2022 and earlier are also available. No substantive changes were made to the 2023 forms.

Providing the SAR

The SAR requirement only applies to plans that must file Form 5500. If a plan is exempt from the Form 5500 requirement, it is also exempt from the SAR requirement.

Employers with large fully insured welfare plans (100 or more participants) must provide participants with a SAR each year.
Large unfunded welfare plans (100 or more covered participants) are exempt from the requirement to provide a SAR, even though they are subject to the Form 5500 requirement.
Employers with self-insured, unfunded plans are not subject to the SAR requirement, regardless of plan size.

Distribution Methods

SARs may be distributed by any method that is permissible for summary plan descriptions. These methods include:

Hand delivery to employees at their worksite
U.S. mail
Electronic delivery (if certain requirements are satisfied).

Rules for Electronic Delivery

DOL regulations include a safe harbor for employers to use electronic media to distribute the SAR to (1) employees with work-related computer access; and (2) other plan participants and beneficiaries who consent to receive disclosures electronically. In addition, to satisfy the safe harbor, employers must notify plan participants each time the disclosure is provided electronically, and they must take steps to ensure that the electronic delivery results in actual receipt.

Proposed Rule to Implement Pregnant Workers Fairness Act Released

Wed, 23 Aug 2023 14:27:31 GMT

On Aug. 7, 2023, the Equal Employment Opportunity Commission (EEOC) issued a proposed rule to implement the Pregnant Workers Fairness Act (PWFA). The PWFA went into effect on June 27, 2023, and requires covered employers to provide reasonable accommodations (absent undue hardship) to a qualified individual’s known limitations related to pregnancy, childbirth, or related medical conditions. The PWFA builds upon existing protections against pregnancy discrimination under Title VII of the Civil Rights Act and access to reasonable accommodations under the Americans with Disabilities Act (ADA).

Key Highlights

The rule explains how the EEOC proposes to interpret the PWFA and certain terms in the law, such as the following:

The PWFA allows an employee or applicant to be “qualified” even if they cannot perform one or more essential functions of the job, if the inability to perform the essential function(s) is “temporary,” the worker could perform the essential function(s) “in the near future,” and the inability to perform the essential function(s) can be reasonably accommodated.
The proposed rule defines the term “temporary” as lasting for a limited time, not permanent and may extend beyond “in the near future.”
The proposed rule defines “in the near future” as generally 40 weeks, though the actual length of the temporary suspension of the essential function(s) will depend upon what the employee requires.
The proposed rule uses the same definition of “essential function” as the ADA. In general terms, it means the fundamental duties of the job.

The proposed rule also provides numerous examples of possible reasonable accommodations and seeks input on whether there should be more examples, and for what additional situations. In addition, the EEOC solicits information and comment on particular issues, including existing data quantifying the proportion of pregnant workers who need workplace accommodations and existing data on the average cost of pregnancy-related accommodations.

EEOC Resources

An EEOC summary of key provisions of the proposed rule is available, in addition to previously released educational resources contained in the “ What You Should Know ” guidance series.

EEOC FAQs are also available, called “What You Should Know About the Pregnant Workers Fairness Act.”

Understanding the Significance of a Certificate of Insurance

Mon, 21 Aug 2023 20:12:36 GMT

In the realm of business and risk management, a seemingly unassuming document plays a vital role in safeguarding companies and their interests. Referred to as a "Certificate of Insurance," this piece of paper holds far more significance than meets the eye. In this article, we'll delve into what a Certificate of Insurance is and why it holds paramount importance for businesses of all sizes.

Defining the Certificate of Insurance

At its core, a Certificate of Insurance (COI) is a document that serves as evidence of an insurance policy's existence. It outlines key details about the insurance coverage held by an individual or organization, shedding light on policy limits, coverage types, effective dates, and the insurance provider's contact information. In essence, a COI provides a snapshot of an insured party's insurance status.

The Importance of a Certificate of Insurance

1. Proof of Coverage: Whether you're a contractor, vendor, or service provider, clients often require proof of insurance coverage before initiating a working relationship. A COI offers tangible evidence that you possess the necessary insurance to cover potential liabilities, reassuring clients, and instilling confidence in your professionalism.

2. Risk Mitigation: Businesses face an array of risks, from property damage to liability claims. By obtaining a COI from your vendors, contractors, or partners, you can ensure they have adequate insurance coverage. It is essential that you request a COI from any subcontractors working for you to ensure that they have coverage limits that match or exceed the limits on your own policy before they begin any work. This minimizes the likelihood of legal disputes or financial losses resulting from unforeseen events.

3. Contractual Obligations: Many contracts stipulate insurance requirements for all parties involved. A COI not only verifies compliance with these contractual obligations, but also confirms that the required coverage is current and in effect throughout the contract's duration.

4. Transparency and Trust: In business relationships, transparency is key. Supplying a COI demonstrates your commitment to openness and accountability. It establishes a foundation of trust with clients, partners, and stakeholders by revealing your commitment to responsible risk management.

5. Quick Decision-Making: During project planning or procurement processes, having immediate access to accurate insurance information expedites decision-making. A well-prepared COI allows parties to verify insurance details swiftly, facilitating smoother collaborations.

6. Policy Audits: At the end of each policy period, you may be subject to an audit. Most General Liability and Workers’ Compensation Policy Audits will require you to provide a COI for all subcontractors that have worked for you throughout the previous policy period. Best Practice – Collect a COI before any work begins, then verify coverage limits, and file a copy of each certificate so they are easily accessible to ensure a smooth audit.

Obtaining and Verifying a Certificate of Insurance

To obtain a COI, contact your insurance provider, who will generate the document with the necessary information. Ensure that the COI aligns with the requirements specified in your contracts and accurately reflects your coverage.

When presented with a COI from a third party, don't just file it away. Verify its authenticity by contacting the issuing insurance company. Confirm that the policy is active, the coverage aligns with your needs, and the policy limits meet the requirements.

In conclusion, a Certificate of Insurance is not just a piece of paper—it's a powerful tool that reinforces trust, manages risk, and simplifies business operations. By understanding its significance, and incorporating it into your risk management strategy, you're setting the stage for successful, secure, and transparent business endeavors.

Preparing for the New Form I-9

Wed, 09 Aug 2023 14:58:13 GMT

The U.S. Department of Homeland Security’s (DHS) Citizenship and Immigration Services (USCIS) recently announced the release of an updated Employment Eligibility Verification form (Form I-9) and instructions. The updated Form I-9 will be available to employers starting August 1, 2023; however, the prior version of Form I-9 (Revised October 21, 2019) continues to be effective through October 31, 2023. After October 31, employers who continue to use the outdated Form I-9 will be subject to penalties. The revisions to the form and its instructions are intended to streamline the documents and reduce the burdens associated with the form for employers and employees.

The DHS also issued a final rule to become effective on Aug. 1, 2023, which will amend agency regulations to allow for the authorization of alternative document examination procedures, such as remote documentation verification and examination. The new rule is designed to increase flexibility and improve the agency’s ability to respond to emergencies, such as a pandemic similar to COVID-19.

These announcements have been long-awaited after previous extensions of the existing form and temporary COVID-19 flexibilities allowing remote verification. As these changes will impact all employers, now is a critical time to ensure that organizations are familiar with them, review their Form I-9 practices and make any necessary adjustments. Accordingly, this article provides employers with an overview of the changes to Form I-9 and remote document verification and outlines strategies to help employers prepare for the new form.

Form I-9 Overview

The Immigration Reform and Control Act of 1986 (IRCA) requires all employers, regardless of size, to hire only individuals who may legally work in the United States. To comply with the law, employers must verify each individual's identity and employment authorization by completing and retaining the Form I-9.

Form I-9 Updates

The USCIS released the following updates to Form I-9:

Reduced Sections 1 and 2 to a single sheet;
Moved the Preparer/Translator Certification area from Section 1 to a standalone supplement (Supplement A);
Moved the Reverification and Rehire area from Section 3 to a separate supplement (Supplement B);
Replaced the use of “alien authorized to work” with “noncitizen authorized to work;”
Clarified the difference between “noncitizen national” and “noncitizen authorized to work;"
Ensured the form can be downloaded easily and filled out on tablets and mobile devices;
Eliminated the requirement to enter “N/A” in certain fields;
Revised the notice that explains how to avoid discrimination in the Form I-9 process;
Updated the List of Acceptable Documents page to include guidance and links to information on automatic extensions of employment authorization documentation and some acceptable receipts; and
Added a check box to use if the employee’s Form I-9 documentation was examined under a DHS-authorized alternative procedure rather than a physical examination.

Additionally, the USCIS updated Form I-9’s instructions. These updates include the following:

Reduced the instruction’s length from 15 pages to eight pages;
Included definitions of key actors in the Form I-9 process;
Simplified the steps each actor takes to complete their section of the form;
Added instructions for the use of the new checkbox for employers who choose to examine Form I-9 documentation under an alternative procedure; and
Eliminated the abbreviations charts and moved them to the USCIS’ Handbook for Employers.

Completing the Updated Form I-9

To comply with employment eligibility verification requirements, employers can use the updated Form I-9 starting August 1, 2023. Employers do not need to complete the new form for current employees with a properly completed Form I-9 on file unless reverification applies after October 31, 2023.

Employers may continue using the prior version of the form through October 1, 2023. The USCIS is allowing employers this additional time to make necessary updates and adjustments to their business processes. After October 1, 2023, the prior version of Form I-9 will be obsolete and no longer valid. Starting November 1, 2023, employers who fail to use the updated form may be subjected to all applicable penalties under section 274A of IRCA. Employers may download the current version of the form on the USCIS’ website . Starting August 1, 2023, the new form will be available on the USCIS’ website.

Preparing for the Updated Form I-9

Complying with Form I-9 requirements is often challenging and places a large administrative burden on employers. Failing to complete and retain Forms I-9 for all employees can be extremely costly. Under the IRCA, employers can be subjected to fines for not complying with Form I-9 guidelines, accepting fraudulent documents when verifying an employee’s identity and employment eligibility, and discriminating against individuals based on their citizenship status or national origin. Additionally, Form I-9 violations often can lead to additional fines and penalties from other government agencies.

While the required timelines for completing Forms I-9 for employees haven’t changed, the updated form will likely force employers to make some changes to their Form I-9 operations and processes; therefore, it’s critical that employers familiarize themselves with the new form and its changes so they can ensure an efficient and effective Form I-9 process and avoid costly penalties. Employers can consider the following strategies to help ensure they meet the Oct. 31 deadline and comply with Form I-9 requirements.

Remote Document Verification

The USCIS also announced a final rule in the Federal Register recognizing the end of temporary COVID-19 flexibilities on July 31, 2023. The final rule also provides the DHS the authority to authorize optional alternatives for employers to examine Form I-9 documentation.

Under current requirements, employers must physically inspect Form I-9 acceptable documents to certify that their employees are authorized to work in the United States; however, with the final rule, the DHS also published an accompanying document in the Federal Register providing employers enrolled in E-Verify the option to remotely examine their employees’ identity and employment authorization documents under a DHS authorized alternative procedure. The remote verification option will not be available to employers unless they enroll in E-Verify.

To participate in the remote examination of Form I-9 documents under the DHS-authorized alternative procedure, employers will need to:

Be enrolled in E-Verify;
Examine and retain copies of all documents;
Conduct a live video interaction with the employee; and
Create an E-Verify case if the employee is a new hire.

Employers who were participating in E-Verify and created a case for employees whose documents were examined during COVID-19 flexibilities (March 20, 2020, to July 31, 2023) may choose to use the new alternative procedure starting on August 1, 2023, to satisfy the physical document examination requirements by August 30, 2023. Employers not enrolled in E-Verify during the COVID-19 flexibilities must complete an in-person verification by August 30, 2023.

Form I-9 requirements impact all employers; therefore, with these fast-moving and even confusing changes, now is a critical time for employers to review their Form I-9 processes. By understanding Form I-9 requirement changes and the implementation timelines, employers can better prepare to comply with these new requirements.

Contact SimcoHR today for additional Form I-9 resources or questions.

Protecting Your Business with Key Person Life Insurance

Wed, 26 Jul 2023 18:29:55 GMT

Running a successful business requires careful planning and strategic decision-making. While many entrepreneurs focus on aspects such as product development, marketing, and financial management, one crucial area that is often overlooked is protecting the business against unexpected events, such as the loss of a key person. This is where key person life insurance comes into play. In this article, we will explore the concept of key person life insurance, its importance for businesses, and how it can safeguard your company's future.

Understanding Key Person Life Insurance:

Key person life insurance, also known as key man insurance or key employee insurance, is a type of life insurance policy designed to protect businesses from the financial consequences of losing a key individual who plays a critical role in the company's success. This individual could be the founder, CEO, a key executive, or any employee with specialized skills, knowledge, or influence that significantly contributes to the organization's profitability and stability.

Importance for Businesses:

The sudden loss or incapacity of a key person can have severe implications for a business. It can disrupt operations, hinder decision-making, and even lead to a decline in revenue and profitability. Key person life insurance acts as a safety net for businesses by providing a financial cushion to navigate these challenges. In the event of the key person's death, the insurance policy pays out a lump sum to the company, which can be used to cover various expenses, such as hiring and training a replacement, paying off debts, maintaining cash flow, or even funding a partial sale of the business.

Determining the Coverage Amount:

Calculating the appropriate coverage amount for key person life insurance requires a careful evaluation of the individual's contribution to the business. Factors such as their role, responsibilities, skills, experience, and potential revenue impact should be considered. It is advisable to work with a financial advisor or insurance specialist who can help assess the potential financial risks and determine an adequate coverage amount that aligns with your business's needs.

Choosing the Right Policy:

Key person life insurance policies come in various forms, such as term life insurance or whole life insurance. Term life insurance provides coverage for a specified period, usually 10, 20, or 30 years, while whole life insurance offers lifelong protection. Each option has its advantages and disadvantages, and the choice depends on factors such as budget, the expected duration of the key person's importance, and the business's long-term goals. Consulting with an insurance professional can help you make an informed decision based on your specific circumstances.

Qualifying for Key Person Life Insurance:

When applying for key person life insurance, the insurance company will assess the key person's health, age, lifestyle, and other relevant factors. The premium rates are determined based on these factors, along with the coverage amount and policy type. It is important to note that key person life insurance is typically purchased and owned by the business, with the company named as the beneficiary. The premiums paid by the business are not tax-deductible, but the proceeds received in the event of a claim are generally tax-free.

Key person life insurance serves as a valuable risk management tool for businesses, providing financial protection and stability in the face of unforeseen events. By recognizing the importance of key individuals and taking proactive steps to secure their contributions, business owners can safeguard their companies against potential disruptions and ensure continuity. While key person life insurance cannot replace the loss of a person, it can provide the necessary financial resources to navigate the challenges and minimize the impact on the business's bottom line. Remember, securing your key assets goes beyond tangible resources; it includes protecting the individuals who are vital to your company's success.

2023 Midyear Benefits Trends

Wed, 26 Jul 2023 17:52:06 GMT

Heading into the latter half of 2023, there are several benefits trends impacting employers. While some of these trends are new, many are not, and employers have been trying to address many of the same benefits challenges for the last few years. Some employers have responded to these challenges by attempting to meet employee demands, such as offering competitive benefits or flexible work arrangements, but by and large, most employers are currently struggling to find adequate solutions. These challenges are likely to continue through the remainder of 2023. However, understanding the latest benefits trends can help employers evaluate their offerings to best meet employee needs, respond successfully to their challenges and give them an advantage over their competitors. Proactively reacting to these trends can help keep employees happy, healthy and loyal.

This article explores benefits trends to watch in the second half of 2023, discussing how they will likely impact employers and offering strategies to address them.

Employers Struggle to Mitigate Rising Health Care Costs

Finding ways to reign in rising health care costs while keeping benefits affordable is critical for employers during the second half of 2023; however, this won’t be easy. Health care costs have risen sharply over the last few years and will likely continue to rise. While average costs increased by 3.2% in 2022, employers expect an increase of 5.4% in 2023, according to a Mercer survey. What’s worse, many employers feel they’re running out of cost containment strategies to combat increasing costs.

Zywave’s 2023 Broker Services Survey found that employers seem to be frustrated by the limited options to address their rising health care costs. Many feel they’ve exhausted traditional approaches to health care cost mitigation, such as guiding employees to cost-effective care, improving health care literacy and leveraging technology. As a result, unless employers are willing to take more drastic measures, such as modifying health plan designs or funding, there may be little they can do to mitigate such rising costs. Compounding concerns, if a recession arrives during the second half of the year, as many economists predict, addressing health care costs will likely become even more challenging for employers.

Employers also revealed in the 2023 Broker Services Survey that they are uncertain whether their current plan design provides the best value as they try to mitigate health care costs. This uncertainty likely stems from employers feeling they have limited options to alleviate such costs, especially since established mechanisms that have helped reduce health care costs seem less effective. As a result, employers may need to implement significant changes to mitigate rising health care costs; however, many organizations will likely find altering health plan funding or design unpalatable because of the substantial risk of making mistakes and uncertainty, especially as the U.S. economy is in flux.

Despite these challenges, many employers will likely find it difficult to reduce or eliminate benefits due to a surprisingly strong labor market and employee expectations. While health care costs are not likely to decline any time soon, planning and implementing proactive strategies to minimize the impact of rising costs will likely have the largest impact.

AI Aims to Improve Benefits Administration

In 2023, artificial intelligence (AI) has made its way into many workplaces nationwide and is revolutionizing how organizations operate and make decisions. Employers are searching for ways to leverage this technology’s ability to create efficiencies, enhance workflows, streamline operations and improve customer experience. This technology has the potential to help employers streamline employee benefits administration, thus reducing costs, increasing accuracy and improving compliance. AI can improve and enhance employers’ benefits administration by:

Streamlining benefits administration —AI can help automate manual, repetitive tasks, such as open enrollment, eligibility verification, claims processing and plan design. By automating these tasks, organizations can reduce their administrative burdens and improve accuracy.
Boosting employee self-service —AI chatbots can support employees by answering benefits-related questions, guiding them through enrollment and resolving potential issues. Utilizing AI technology can improve benefits accessibility and help employees to better manage their benefits on their own.
Personalizing benefits offerings —Employers can tailor their offerings to meet employee needs and preferences with the help of AI. These systems can sift through large amounts of data, such as demographic information, employee health records and health care utilization, to better personalize an organization’s benefits offerings.
Providing decision support —AI tools can empower employees to make informed benefits-related decisions by analyzing individual health and utilization data and providing tailored recommendations.
Improving compliance and risk management —Complying with benefits requirements and regulations can be challenging and often creates large administrative burdens for organizations as they try to stay informed and up to date on any changes. AI technology can monitor legislative changes and automate compliance updates in an organization’s benefits administration systems.
Delivering predictive analytics and cost optimization —AI tools can also help organizations forecast future benefits trends and needs by analyzing market data and historical trends. This can enable employers to make more informed decisions regarding plan designs and modifications, adjust benefits offerings to better suit employee needs and negotiate better rates.

While many employers have embraced AI technology to aid in benefits administration, more employers are expected to follow suit in the second half of 2023 and beyond. However, employers must proceed with caution when implementing AI tools because these systems’ capabilities are limited by the information used to train them. Additionally, these tools may inadvertently reveal employee health information or make decisions that lead to biased or discriminatory outcomes. AI-generated errors like these can be costly, subjecting organizations to government audits, fines and penalties. Understanding how this technology works and ensuring human oversight can help organizations anticipate and address potential issues before they become problems.

Because AI technology in the workplace is still largely unregulated, there are many gray areas employers must navigate. Laws and regulations haven’t kept up with employers’ acceptance and incorporation of this technology. While many existing laws address AI-related issues, as a whole, such technology is a relatively new legal area. There’s currently a patchwork of federal and state regulations that address aspects of using AI tools in the employment context and benefits administration; however, legal issues related to these tools will likely continue to emerge as AI technology develops and becomes more advanced. Therefore, employers should stay current on all applicable laws and regulations impacting AI systems. Employers should consider establishing governance policies and procedures to evaluate and monitor AI tools as well as assess their long-term impacts. This can help ensure that organizations use AI tools responsibly and integrate such technology to complement human activity in the workplace in 2023 and beyond.

Pay Transparency Becomes the New Norm

Despite many employers’ reluctance to embrace pay transparency—because it can reveal unintended pay gaps and trigger questions from current employees— the practice is expected to become the norm in 2023. At the start of 2023, a fifth of all U.S. workers were covered by pay transparency laws. In 2021, Colorado was the first jurisdiction to enact such laws. Since then, many states and localities have enacted their own pay transparency laws, including:

California
Cincinnati, Ohio
Connecticut
Ithaca, New York
Jersey City, New Jersey
Maryland
Nevada
New York City
Rhode Island
Toledo, Ohio
Washington
Westchester County, New York

Even if employers are currently unaffected by pay transparency mandates, they should consider developing strategies to address this issue since pay transparency likely already impacts them directly or indirectly. Employers can protect themselves and help ensure compliance with applicable laws by understanding applicable pay transparency requirements and regularly reviewing job postings.

Pay transparency laws present distinct compliance challenges for employers subject to them since they vary depending on the state or locality. Employer compliance difficulties are often greater for organizations that recruit and hire employees across state lines. This has been further complicated by the general acceptance of remote work. Hiring remote workers can trigger legal obligations and create potential risks even in states where employers do not have a physical presence. To limit potential compliance issues, some employers may avoid hiring remote workers or workers who reside in states with pay transparency laws; however, this is likely an unsustainable strategy for employers, as it can drastically limit their recruiting pool. In contrast, some employers are ensuring their job postings comply with the strictest pay transparency requirements. This can include revamping hiring and recruitment practices to comply with pay transparency requirements, standardizing job postings to include salary ranges and benefits information, or tailoring job postings for states and localities with pay transparency laws.

Not only are more states and localities implementing pay transparency laws, but pay transparency is also becoming more important to workers. Employees overwhelmingly support pay transparency because it can help them to avoid applying for jobs they wouldn’t accept due to low pay, negotiate for better salaries and build trust with their employers. It also helps hold employers accountable for providing similar wages for similar roles. According to recent data from global employment website Monster, 98% of employees said employers should disclose pay ranges in job postings, with more than half saying they’d refuse to apply for jobs that do not disclose pay ranges, even in states where pay transparency isn’t legally required. Since applicants and employees value pay transparency, employers can benefit from providing pay-related information even when not required to do so; those who offer pay transparency tend to receive more applicants and save time and money in recruitment efforts by ensuring candidates don’t reject job offers due to insufficient pay.

Paid Leave Laws Are Impacting More Employers

Several employers expanded their leave policies in response to the COVID-19 pandemic, including increasing paid leave; however, in 2022, many organizations reversed course and reduced leave benefits to pre-pandemic levels. Despite this, many states have enacted laws to provide paid family and medical leave, and more are expected to do so in the near future. Currently, 11 states and the District of Columbia have state-run, mandatory paid family and medical leave programs that cover most private sector employees. Some of these laws have or will become effective in 2023. Other states, including New Hampshire and Vermont, have enacted voluntary paid leave laws. As a result, paid leave laws will soon impact more employers. Therefore, employers who are or will soon be subject to paid leave laws should ensure their workplace policies are compliant with 2023 requirements.

For employers not subject to paid leave requirements, now is a critical time for employers to consider their leave policies. Providing employees with paid leave is an effective way to support employee well-being and strengthen their attraction and retention efforts. Paid leave can include:

Medical leave , covering a worker’s own serious health condition
Parental leave , covering bonding with a new child (may also be referred to as maternity leave, paternity leave or bonding leave)
Caregiving leave , covering caring for a loved one with a serious health condition
Deployment-related leave , covering needs in connection with a loved one’s current or impending active duty military service
Safe leave , covering needs when a worker or their loved one is a victim of sexual or domestic violence

Expanding paid leave benefits can be an important talent acquisition strategy for employers since candidates and employees prioritize these benefits. These benefits can provide employees with an important safety net and peace of mind, helping build trust and increase loyalty.

The Battle Over Remote and Hybrid Work Continues

Remote and hybrid work arrangements were widely embraced by employers and employees at the outset of the COVID-19 pandemic. As lockdown orders lifted, many employers continued to offer these flexible work arrangements for various reasons, including acquiescing to employee demands during a tight labor market. Although remote and hybrid work is expected to continue to play an integral role in the work landscape, 2023 has seen some significant changes to these arrangements. These changes will likely continue to change and evolve throughout the remainder of the year.

Employers are concerned that remote and hybrid work arrangements have led to a drop in employee production.

According to a Microsoft survey, 85% of leaders believe hybrid work has made it difficult to be confident that employees are productive, despite 87% of employees reporting they are productive at work; only 12% of senior leaders have full confidence their employees are productive.

Many employers believe that having employees return to in-office work will boost workforce productivity. Organizations also believe that activities such as culture building, collaboration, employee engagement, mentoring and innovation are easier in in-office settings. However, the COVID-19 pandemic caused many workers to reprioritize work as an aspect of their life instead of the main focus. Additionally, remote and hybrid work arrangements allowed employees to experience the benefits of working from home. Many have come to prefer these flexible work arrangements because they feel they can remain productive at work but have more resources and personal time for families and hobbies by not having to commute. This has allowed many employees to improve their work-life balance and general well-being.

While many employers requested that employees return to in-office work in 2022, they started requiring it in 2023. Organizations attempted to leverage the economic downturn to force employees to return to the office. However, as employers request or require employees to return to in-person work, many have refused or are not fully complying. Large corporations like Amazon, Apple and Twitter are currently struggling with workers refusing to follow return to office (RTO) orders. Employee refusals have caused some organizations to change course and soften RTO orders; others have doubled down on their efforts to have employees return, threatening to terminate those that don’t return. The return to office battle that has been simmering for the last few years seems to be nearing a boiling point, leaving many employers in a difficult position.

Employees’ refusal to return to the office has highlighted the different understanding between employees and employers as to the purpose of the office. It has also signaled a significant change in work culture and employee expectations. While the majority of U.S. workers do not work from home, for those who do, there’s currently a battle about where they’ll work in the future. By considering the reasons why employers want employees to return to in-office work and communicating those reasons to employees, employers are more likely to experience less pushback from employees. Employers can also consider the following strategies when asking employees to return to the office:

Determine the reasons why employees need to return.
Obtain employee input.
Provide clear guidelines.
Support employees during the transition.

Whether employers embrace flexible work arrangements or ask employees to return to the office, it’s important they help employees to find ways to help improve their mental health and well-being. This can enable employees to feel happier and more productive regardless of where and how they work.

Organizations Expand Family-building Benefits While Prioritizing Reproductive Health

The U.S. Supreme Court’s decision in Dobbs v. Jackson Women’s Health Organization to overturn Roe v. Wade— ending federal protections for abortion rights and permitting states to implement their own regulations— continues to impact employee benefits considerations in 2023. The Supreme Court’s ruling eliminating the federal constitutional right to abortion care has led to a patchwork of state laws on this type of health care; several states banned or restricted insurance coverage for abortion, while others require plans to cover the procedure. Legal challenges to these laws are currently ongoing, and more are expected going forward, making it unclear what the landscape will look like in the near future. This has created challenges for employers as they try to find ways to support their employees’ needs and provide competitive benefits. As a result, employers must carefully evaluate any reproductive health-related benefit offered under their group health plans to ensure full compliance with applicable laws and restrictions.

While the Supreme Court’s ruling has presented several important considerations for employers providing abortion-related benefits, it has also brought a renewed focus on reproductive health and family-building benefits. Many larger employers, such as Walmart and Target, have embraced fertility and family-planning benefits. This seems to be part of a broader trend of employers offering benefits that employees say they need, like mental health and financial planning resources. According to Maven Clinic’s State of Fertility & Family Benefits in 2023 report, 87% of HR professionals said they recognized family benefits are “extremely important” to current and prospective employees and 63% said they planned to increase family health benefits within the next few years. The same report revealed that 30% of employees are currently expecting a child or hope to grow their family within the next couple of years. Additionally, 43% said they expect to need fertility treatments, adoption services and surrogacy services to do so.

Many employers are doing more to support their employees through every stage of their family-building process. For example, employers are increasingly providing employees with family-friendly benefits, such as paid parental leave, paid adoption leave, surrogacy benefits, hormone replacement therapy and doula care. Others are providing specialized benefits to support women’s reproductive health by offering the following benefits:

Family planning assistance
High-risk pregnancy care
Pregnancy, lactation, postpartum and menopause support
Travel benefits

These benefits can have a significant impact on an employee’s productivity, happiness and overall wellbeing. Family-building benefits can also strengthen an organization’s attraction and retention efforts, improve employees’ quality of life and create an inclusive, healthy workplace. As workers continue to struggle financially because of inflation and other economic concerns, family-building benefits have become even more important since they can provide individuals and families with vital medical and economic support, enabling them to safely achieve their family-planning goals. In 2023, employers have a great opportunity to impact employees on and off the job by offering or expanding family-building benefits.

Employer Takeaways

In 2023, employers continue to deal with many of the same challenges they’ve faced for several years. Unfortunately, many of these challenges will likely continue through the second half of 2023 and into the foreseeable future.

It’s vital for employers to find ways to meet these challenges in practical and cost-effective ways, especially as the U.S. economy remains in flux. While the best strategies will vary by workplace, being aware of current benefits trends can guide employers as they strategize and take action. Recognizing these trends can help employers to respond in meaningful ways to help keep employees healthier, happier and more productive.

For more information on today’s benefits trends, contact us today.

The Trendiest Benefits for 2023

Wed, 26 Jul 2023 17:26:42 GMT

There's no denying that employees' needs have changed over the past few years. As such, employers can offer benefits to meet evolving worker needs shaped by lingering effects of the COVID-19 pandemic, a tight labor market and rising inflation. Many workers are paying more attention to their benefits and wondering how to stretch their dollars further.

Benefits have always been crucial for attracting and retaining top performers. For 2023, employers are uniquely positioned to offer more than just a health care plan, including holistic benefits, resources and perks that today's workers most need. This article highlights benefits that are likely to be popular in 2023.

Voluntary Benefits

It's no secret that health care costs in the United States have risen sharply over the past two decades and will likely continue to increase. Health care affordability is top of mind for employers and employees alike. As employers search for ways to manage their health care costs, some are considering voluntary benefits as a strategy to round off their offerings. A rising number of organizations recognize that voluntary benefits are advantageous to employees and their families—and many come at no cost to the employer.

Consider the following popular secondary benefits employers are offering:

Accident insurance
Critical Illness
Hospital indemnity insurance
Disability insurance
Life insurance
Identity theft protection
Pet insurance

Voluntary benefits can provide value to employees without raising an employer's costs, making them powerful tools for attracting and retaining top workers.

Financial Wellness Benefits

Many employees are feeling financially strained due to record-high inflation. Not only will inflation impact employees' decisions about benefits, but it may also result in a need for financial wellness education and guidance.

However, financial wellness benefits must go beyond only offering educational resources to be impactful. Organizations can boost their attraction to today's workers by offering the following types of desired financial wellness benefits:

Retirement plan options with matching contribution
Health savings account contribution
Flexible spending account contribution
Financial planning assistance and coaching
Lifestyle spending account
Transportation benefits
Employee discount or purchase program
Financial reimbursements (e.g., tuition or student loan repayment plans, caregiving support funds and professional development stipends)

With any of those offerings, education will remain a necessary component to increase employee utilization. Employers are uniquely positioned to help employees understand the importance of these benefits and can help them increase their financial literacy with additional resources and tools.

Health Care Full Premium Coverage

As health care costs continue to skyrocket, some employers choose to pay 100% of employees' monthly health care premiums. For reference, the Kaiser Family Foundation reports the monthly average for employer contributions in 2021 was 83%. This type of benefit is more common in small organizations. Fully paid health plans could be a key differentiator for workers weighing their employment options.

Family-friendly Benefits

Family-building benefits are becoming increasingly popular with employees, as they inclusively support the unique and complex ways individuals and couples build their families. Employers are also focusing on ways to support reproductive health care. Such benefits can provide employees peace of mind as employers demonstrate their emotional and financial support for employees' decisions to build a family.

Additionally, many employers are increasingly prioritizing parental leave. According to Mercer data, 70% of employers are already offering or planning to offer parental leave in 2023, while 53% are providing or planning to provide paid adoption leave. Adoption and surrogacy benefits are also on the rise, in addition to access to fertility treatment coverage.

To round out family-friendly benefits, large employers are also considering on-site childcare or access to backup childcare services.

Summary

Organizations can start optimizing benefits packages by evaluating employee preferences and thinking about ways to improve offerings or tailor them for their workforce. To ensure offerings and investments will resonate with employees, organizations should consider surveying them first. It's important to keep a pulse on employees and see what they find most valuable and necessary for their overall well-being as lives continue to be impacted by COVID-19, inflation and any other personal challenges.

Reach out to SimcoHR to learn more about trending employee benefits.

Strategies to Improve Hiring Outcomes

Wed, 26 Jul 2023 16:01:52 GMT

As employers struggled to respond to trends such as the Great Resignation and quiet quitting, many quickly hired employees to cut costs and fill open positions. Unfortunately, reactionary hiring often didn’t work for either party. According to a USA Today poll, only 26% of job switchers liked their new position enough to stay. For this reason, many employers are shifting their focus to prioritize the quality of new hires and evaluate how their recruitment and onboarding practices can lead to more positive hiring outcomes.

This article provides guidance on the importance of hiring outcomes and strategies employers can use to find the right employees for open positions and improve such outcomes.

Hiring Outcomes

A successful hiring outcome occurs when an employer hires the right individual for an open position. The measurements of successful hiring may vary depending on an organization’s goals and objectives. Generally, standard measures of positive hiring outcomes include employee performance, job satisfaction and organizational loyalty. A negative hiring outcome can occur when an organization hires an individual that’s ill-suited for the position or is not a good cultural fit.

The Importance of Hiring Outcomes

When the wrong person is hired, it can have numerous consequences for an organization. According to Northwestern University, a bad hiring decision can cost a company at least 30% of that employee’s annual salary. Hiring the wrong people can also reduce employee morale, damage company culture, increase employee turnover, damage employer branding and create unsafe workplaces.

On the other hand, when an employee is a good fit for their position and organization, they’re more likely to be productive, loyal and remain with their company for longer. This ultimately benefits revenue by reducing hiring and onboarding costs and keeping knowledgeable, productive employees at the company.

Improving Hiring Outcomes

Employers’ strategies are critical to ensuring organizations consistently hire employees that align with organizational goals. Here are strategies for employers to consider:

Focus on fit. A recent survey found that more than half ( 55% ) of people lie on their resumes. Therefore, it’s crucial that employers find ways to establish a candidate’s trustworthiness. Common methods include reference checks, skills assessments and behavioral-based interviewing. Additionally, employers should pay attention to how well an individual aligns with an organization’s goals and desires, not just the qualifications listed on their resume. It may be beneficial to observe how job applicants interact with other people in the office to understand how an individual would interact with team members and contribute to company culture.
Be transparent. Communicate regularly and clearly with job applicants during interviews and hiring. This will improve trust and make them feel valued by an organization. Employers should also honestly describe job expectations and organizational goals to help candidates make informed decisions about job positions. Listing pay ranges alongside job postings is another way to establish trust and increase efficiency, as it reduces the risk of losing job candidates over salary expectations far along in the hiring process. In fact, workers are more likely to apply for jobs that include a pay range in the job posting, according to recent data from global employment website Monster. This can increase an employer’s talent pool and ultimately lead to better hiring outcomes.
Emphasize diversity. Diversity, equity and inclusion (DE&I) is a critical element many employees consider when deciding to stay with a company. A survey by Goodhire found that 81% of employees would consider leaving their job if their employer wasn’t committed to DE&I. In addition to helping attract and retain employees, a commitment to DE&I can also improve an organization’s bottom line. According to management consulting company McKinsey, diverse and inclusive companies are 35% more likely to outperform competitors financially.
Assess recruitment strategy. Recruitment methods factor into the type of candidates applying for open positions. Recent research by software company Yello found that 54% of Generation Z workers won’t complete a job application if the method is outdated. Simplifying the application process with technology like mobile-friendly applications and applicant tracking systems can help employers compete for talent.
Consider temporary-to-permanent (temp-to-perm) hiring. With this type of hiring, employers hire workers on a temporary basis for a trial employment period before hiring decisions are finalized. This enables employers to fill positions without committing to permanent employment, reducing the risk of poor hiring decisions. However, employers who use this method of hiring should be aware of the potential drawbacks, such as agency fees, less committed workers and insufficient training for temporary hires.
Use artificial intelligence (AI). Although a relatively new technology, AI can help evaluate and screen potential candidates. It can improve candidate experience and increase efficiency and fairness. However, employers who use AI for hiring processes should also be aware of potential accessibility issues, as it may intentionally or unintentionally screen out job seekers with disabilities. Unintentional discrimination may occur if an AI algorithm relies on historical data sets that use benchmarking resumes and other job requirements that are biased or discriminatory.

Employer Takeaway

As labor market conditions shift, employers should assess their hiring and recruiting strategies to improve positive outcomes. Employers who prioritize hiring the right person the first time may experience reduced employee turnover, improved company culture and increased revenue.

For more workplace information, contact SimcoHR today.

DOL Launches New Website for Workplace Mental Health Resources

Wed, 26 Jul 2023 15:39:22 GMT

The U.S. Department of Labor (DOL) recently launched its Mental Health at Work initiative, including a new website providing a variety of resources and tools to help improve overall mental health in the workplace.

Mental Health Crisis

Mental health issues are increasingly prevalent in the workplace. According to the DOL’s research, approximately 1 in 5 Americans experience mental illness every year. More than 46 million people in the country experienced a substance use disorder in the previous year. Suicide is a leading cause of death in the United States. Also, almost half of workers said their work is suffering because of poor mental health. Despite its prevalence, there can be significant stigma around mental illness, including in the workplace.

Employer Compliance Requirements

Employers play a critical role in creating environments where workers are as comfortable seeking support for treating mental health conditions as they are with other types of illnesses. Employers are required to comply with the following federal laws to support workers’ mental health:

· Mental Health Parity and Addiction Equity Act (MHPAEA): Under MHPAEA, health plans that cover mental health or substance use benefits cannot impose more restrictions on those benefits than what generally applies to comparable medical or surgical benefits.

· Family and Medical Leave Act (FMLA): Under the FMLA, covered employers must provide up to 12 weeks of job-protected leave to eligible employees.

· Americans with Disabilities Act (ADA): Under the ADA, workers with mental health conditions may be protected against workplace discrimination and harassment related to their condition, have workplace confidentiality rights, and have a legal right to reasonable accommodations that can help them perform and keep their job.

Mental Health Resources

The DOL’s new website includes summaries for employers on the workplace legal requirements regarding mental health, including a fact sheet on MHPAEA , frequently asked questions about when employees can take FMLA leave for a mental health condition, and examples of reasonable accommodations that may help employees with mental health conditions to perform their jobs more effectively. To help create a supportive workplace, the DOL’s website has links to various posters, checklists, toolkits and other resources. The website also provides resources for workers to get help with their mental health needs and learn about their rights.

Source: U.S. Department of Labor

How HR Can Support Employees With Financial Issues

Thu, 22 Jun 2023 00:45:54 GMT

Employees face not only the ever-changing demands of their professional lives but also the constant challenges of managing their personal finances. In fact, a 2023 survey by professional services network PwC revealed that 57% of full-time employees say finances are the top cause of stress in their lives. The increasing cost of living, unexpected expenses, medical debt and economic uncertainties take a toll on employees’ well-being, impacting their overall productivity and job satisfaction. Financial stress impacts many aspects of employee well-being, such as mental health, sleep and self-esteem.

By recognizing and addressing the financial issues faced by their workforce, HR professionals can play a vital role in creating a supportive environment that fosters financial well-being. This article explores how HR can effectively support employees facing monetary challenges and help them enhance their financial resilience.

Benefits of Financial Support

Money is a top stressor for employees, and economic uncertainty has only exacerbated that. HR departments can provide support to employees with highly desired financial guidance and educational resources.

When employees experience lower financial stress, employers may see greater employee productivity, increased job satisfaction and lower absenteeism. Financial support can also boost employee retention. In fact, a Financial Health Network survey revealed that 62% of employees would be more likely to stay at a job that offered useful debt-related benefits.

Helping Employees Cope With Financial Issues

HR departments are uniquely positioned to help employees reduce or avoid financial issues. Here are some strategies for HR professionals to support employees facing financial challenges:

Measure employees’ financial risks. Performing an audit can help employers better understand their employees’ financial risks and challenges. For example, HR professionals could analyze payroll data and employee benefits utilization to identify patterns that may indicate financial risks. Alternatively, they could develop a confidential questionnaire about personal finance for employees to complete. It could include questions about employees’ income, debts, savings, investments and financial goals. Audits can guide HR teams as they take steps to improve and fortify the financial health of the most at-risk employees.
Survey employees. Knowing what employees need and want in terms of financial wellness is vital. Anonymous surveys can help HR departments understand their workforce’s needs and then take steps to meet those needs.
Consider flexible compensation packages. Some of the most valued benefits are those that offer flexibility, improve work life and support financial wellness. Flexible compensation programs include lenient work-from-home policies, four-day workweeks and flexible bonuses. Other examples include educational assistance, career coaching and family planning.
Enhance employee benefits. Organizations can offer benefits that best support a wide range of employee financial needs. HR professionals can review and enhance existing benefits packages to include options—such as financial wellness programs, health care discounts or child care assistance—that can help alleviate financial burdens and improve overall well-being.
Establish referral networks. HR teams can partner with organizations, credit unions or financial institutions to provide employees with direct access to discounted services, loans or financial literacy workshops.
Educate employees to be better health care consumers. Since medical debt impacts many Americans, HR professionals can help ensure employees are better educated about health care decisions—and what they cost. Educating employees can help them save money by becoming better health care consumers, making better choices and avoiding unnecessary or expensive care. HR professionals can increase employees’ health care knowledge by communicating clearly and often about the benefits plans they offer, educating them on the details of their health plan, and teaching them to compare prices and review medical bills.
Facilitate open and honest finance-related conversations. By fostering a workplace culture that destigmatizes discussions around personal finance, HR professionals can encourage employees to seek help and support when needed. Establishing channels for confidential conversations or offering employee assistance programs that include financial counseling services can create a safe space where employees feel comfortable addressing their financial concerns without fear of judgment.

Summary

HR professionals can play a pivotal role in supporting employees facing financial issues. By prioritizing employees’ financial well-being, HR departments can create a nurturing environment that empowers individuals to make informed decisions, overcome financial hurdles, and thrive both personally and professionally. It comes down to helping workers enhance their financial resilience so they can tackle today’s financial challenges and be prepared to effectively handle any future pressures or issues.

Contact SimcoHR today for additional workplace guidance.

Health Plan Deadline Extensions Related to COVID-19 Pandemic Ending Soon

Thu, 22 Jun 2023 00:26:09 GMT

Several key deadlines for employer-sponsored health plans were extended during an “outbreak period” associated with the COVID-19 national emergency. Now that the COVID-19 national emergency has ended, these deadline extensions are also coming to an end. According to FAQs issued by the Departments of Labor, Health and Human Services, and the Treasury (Departments), the outbreak period will end on July 10, 2023.

During the outbreak period, certain health plan deadlines were extended to give individuals more time to make decisions about their health coverage. The extensions applied to deadlines for:

Requesting special enrollment under HIPAA;
Electing COBRA continuation coverage and paying COBRA premiums; and
Submitting claims for health plan benefits and appealing denied claims.

These deadline extensions end when the outbreak period is over or, if earlier, after an individual has been eligible for a specific deadline extension for one year.

Action Steps

Once the outbreak period ends on July 10, 2023, health plans can go back to their normal pre-pandemic deadlines. However, any days during the outbreak period must still be disregarded to determine the deadline that applies to a specific individual. In addition, employers should ensure that any plan communications regarding deadlines are updated for the end of the outbreak period. To help prevent employees from missing crucial deadlines, employers should clearly communicate key deadlines to impacted individuals in advance.

Highlights

During the COVID-19 pandemic, certain health plan deadlines were extended by disregarding an “outbreak period.”
The outbreak period will end on July 10, 2023.
Once the outbreak period ends, health plans can go back to their normal pre-pandemic deadlines.
Employers should ensure that any descriptions of plan deadlines are updated to reflect this change.

FAQ Guidance

The Departments issued FAQs to address how certain health plan requirements related to the COVID-19 pandemic will change when the emergency periods end.
The FAQs include examples to explain how the deadline extensions should be applied as the outbreak period comes to an end.

Form I-9 Remote Verification and Other Flexibilities End on July 31, 2023

Thu, 22 Jun 2023 00:07:15 GMT

On May 4, 2023, the U.S. Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) announced that the COVID-19 flexibilities for the Employment Eligibility Verification form (Form I-9) will expire on July 31, 2023.

The announcement also clarifies that employers will have until Aug. 30, 2023, to complete all required physical inspections of identity and employment eligibility documents.

Form I-9 Flexibilities

Federal law requires every employer that recruits, refers for a fee or hires an individual for employment in the United States to complete a Form I-9. To comply with Form I-9 requirements, employers must, within the first three days of employment:

Complete and sign Section 2 of Form I-9 for each new hire; and
Physically examine the documents each employee presents to prove his or her employment eligibility (documents must come from the form’s list of acceptable documents).

Throughout the COVID-19 state of emergency, DHS has adopted various temporary policies to provide employers flexibility in their employment eligibility compliance efforts. DHS has reviewed, renewed and updated these Form I-9 “flexibilities” to allow employers to:

Review Form I-9 identification documents remotely; and
Accept some expired identification documents when the expiration was caused by COVID-19 disruptions.

When using these flexibilities, employers have been encouraged to review the original DHS guidance on remote document verification for details and to stay up to date on which expired documents are still accepted as valid forms of identification and work eligibility by accessing pertinent information on the DHS' Citizenship and Immigration Services website .

Expiration of Flexibilities

In October 2022, DHS and ICE announced that the flexibilities would be extended until July 31, 2023. With the imminent end of the COVID-19 national emergency, DHS and ICE have reaffirmed that the Form I-9 flexibilities will end as planned on July 31 and that employers will have until Aug. 30, 2023, to “perform all required physical examination[s] of identity and employment eligibility documents for those individuals hired on or after March 20, 2020, and who have only received a virtual or remote examination under the flexibilities.”

Proposed Rule

In addition, DHS has proposed a rule to create permanent Form I-9 remote verification procedures. The proposed rule was published in the Federal Register on Aug. 18, 2022.

As required by federal rule-making procedures, the proposal came with a 60-day public comment period, and DHS is expected to announce a final version of the rule once it has reviewed all the feedback received during the 60-day window.

Impact on Employers

The joint DHS and ICE announcement provides clear guidance that the federal government will allow employers up to 30 days to complete the physical review of I-9 forms created for employees hired since March 20, 2020. Employers should prepare to comply with this deadline by auditing their hiring records and ensuring compliance for all affected employees.

Although a permanent rule for remote I-9 verification is widely expected, employers should comply with current requirements until the new rule is published and becomes effective. For this reason, employers should also monitor DHS announcements and publications in the Federal Register for updates on the proposed rule.

Important Dates:

March 20, 2020: DHS announced Form I-9 flexibilities due to the COVID-19 national emergency.
October 2022: DHS extended Form I-9 flexibilities until July 31, 2023.
May 4, 2023: DHS clarified that Form I-9 flexibilities will expire as scheduled on July 31, 2023.
Aug. 30, 2023: Employers will have until this date to physically inspect I-9 forms for all employees hired on or after March 20, 2020.

Using Mentorship to Bolster Employee Retention

Wed, 21 Jun 2023 23:33:19 GMT

One of the most common reasons employees search for new jobs is a lack of learning and development opportunities, such as skills development, networking and mentorship.

Mentoring is a simple and cost-effective way to boost employee retention. Workplace mentorship describes the relationship between mentor and mentee, in which a mentor provides guidance and professional advice to encourage a mentee’s growth, learning and professional development.

Types of Mentorship

There are many types of mentorship relationships for organizations to consider. Here are some examples of common types of mentorship:

Peer to peer—Peer mentors usually have similar backgrounds and experiences to one another, enabling them to provide support, guidance and understanding.
One on one—This is a traditional hierarchal type of mentoring in which a mentor has developed professional knowledge and experience in the field of their mentee.
Reverse—With reverse mentoring, junior employees are responsible for mentoring senior employees in areas where they have expertise, such as technology use.
Group—Employers may use mentoring circles or groups to expand organizational participation.

Summary

Effective mentorship programs encourage employees to learn, grow and collaborate with one another. This helps to create a culture of inclusion and promotes strong interpersonal relationships among co-workers. In addition, these programs show employees that their employers value their career advancement and professional growth. Reach out today for additional resources on employee retention.

HSA/HDHP Limits Will Increase for 2024

Wed, 21 Jun 2023 13:46:05 GMT

The IRS recently released Revenue Procedure 202 3-23 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2024. The IRS is required to publish these limits by June 1 of each year.

These limits include:

The maximum HSA contribution limit
The minimum deductible amount for HDHPs
The maximum out-of-pocket expense limit for HDHPs

These limits vary based on whether an individual has self-only or family coverage under an HDHP.

Eligible individuals with self-only HDHP coverage will be able to contribute $4,150 to their HSAs for 2024, up from $3,850 for 2023. Eligible individuals with family HDHP coverage will be able to contribute $8,300 to their HSAs for 2024, up from $7,750 for 2023. Individuals age 55 or older may make an additional $1,000 “catch-up” contribution to their HSAs.

The minimum deductible amount for HDHPs increases to $1,600 for self-only coverage and $3,200 for family coverage for 2024 (up from $1,500 for self-only coverage and $3,000 for family coverage for 2023). The HDHP maximum out-of-pocket expense limit increases to $8,050 for self-only coverage and $16,100 for family coverage for 2024 (up from $7,500 for self-only coverage and $15,000 for family coverage for 2023).

The adjusted contribution limits for HSAs take effect as of Jan. 1, 2024. The adjusted HDHP cost-sharing limits take effect for the plan year beginning on or after Jan. 1, 2024.

Action Steps

Employers who sponsor HDHPs should review their plan’s cost-sharing limits (minimum deductibles and maximum out-of-pocket expense limit) when preparing for the plan year beginning in 2024. Also, employers who allow employees to make pre-tax HSA contributions should update their plan communications for the increased contribution limits.

Job Postings Data Shows All-time High Mentions of Employee Benefits

Wed, 24 May 2023 19:37:43 GMT

Mentions of employee benefits in job postings on recruiting website ZipRecruiter reached the highest rates on record. An analysis of this trend revealed that many U.S. employers are leaning on enhanced benefits offerings to attract and retain workers.

Compared to previous years of ZipRecruiter data, many job positions now provide employee benefits such as health insurance, paid time off and paid parental leave. Furthermore, 1 in 4 jobs now offers retirement plans. As many Americans are experiencing debt and financial stress, a growing number of employers are offering student loan repayment and tuition assistance.

“Customers are trying to end out-of-cycle wage increases and cap the size of regular increases to keep costs under control. Many are therefore expanding their benefits offerings.”

-Julia Pollak, chief economist at ZipRecruiter

Aligned with the ZipRecruiter findings, government data indicates a recent rise in benefits offerings. The employment cost index picked up in the first quarter of this year due to increased benefits. In fact, employer benefits costs grew 1.1% from the previous quarter.

Employer Takeaways

In today’s highly competitive job market, skilled professionals often have multiple employment options. Offering appealing benefits can set an organization apart from its competitors, making it more attractive to top candidates. Potential employees consider the value of benefits when evaluating job offers, and a robust benefits package can be a deciding factor in choosing a company.

Not only can benefits help attract top talent, but they can also help retain workers and offer companies a competitive edge. Employee benefits are essential to a comprehensive compensation package and significantly impact an employee’s overall job satisfaction and quality of life. Offering attractive benefits demonstrates a company’s commitment to the overall well-being of its employees, fostering a positive work environment and boosting employee loyalty.

With an increasing number of employers showcasing employee benefits in job descriptions to attract workers, all organizations should explore ways of emphasizing their own offerings. Contact us for additional guidance on employee benefits offerings.

Only a Third of Gen Xers Believe They Will Retire by 65

Wed, 24 May 2023 19:25:53 GMT

A recent report by Clever Real Estate found that 69% of Generation X (Gen X) members want to retire by age 65, but only 37% believe they’ll be able to.

Sometimes called the “forgotten generation,” Gen X refers to those born between 1965 and 1980. This generation expects to face many obstacles on the way to retirement, with 68% of survey respondents worrying they’ll have to reduce their standard of living in retirement and 11% believing they’ll never be able to retire.

Retirement Savings

More than half (58%) of Gen Xers said they saved less for retirement than they thought they would when they were younger. Nearly one-quarter (22%) have nothing saved, and the majority (56%) have less than $100,000. Gen X women were 53% more likely to have never saved for retirement than Gen X men. This may be because women tend to earn less over their lifetime than men, making it more challenging to save for retirement.

“Sadly, 64% of Gen Xers who stopped saving for retirement did so because they could no longer afford to,” according to the report.

Financial Pressures

Nearly 80% of Gen Xers have debt. Credit card debt, mortgage and auto loans were most common, with almost half (49%) of Gen Xers carrying month-over-month credit card debt. Of that group, 55% had at least $5,000 in such debt, according to the report.

Inflation also had a significant impact on Gen Xer’s retirement plans, with 69% reporting it negatively impacted their retirement savings. Nearly one-third (29%) say they’re quite nervous about the effect inflation has on their everyday cost of living.

Retirement Regret

The vast majority (90%) of Gen Xers have financial regrets. Among these regrets, “not saving enough” was the most common (43%), followed by “getting into debt” (34%), “not investing enough” (33%), “spending too much on nonessentials” (26%) and “not living within their means” (20%).

Most (80%) Gen Xers wish they’d started saving for retirement sooner, and 14% wish they’d asked for more financial help.

Conclusion

Gen Xers face many challenges on the road to retirement, but their employers can help. Employees who take advantage of employer 401(k) match programs can increase their retirement savings. They may also be able to rely on their employers for financial planning services, which can help them prepare for retirement without sacrificing their quality of life.

Report Shows the Majority of Employers Are Embracing Hybrid Work

Wed, 24 May 2023 19:08:16 GMT

A recent survey from employment and labor law firm Littler found that 71% of U.S. employers currently operate hybrid work arrangements in 2023, with just 16% of surveyed companies requiring in-person work. However, many companies that have chosen to embrace hybrid work in the long term are pairing it with stricter in-person requirements.

Nearly half (48%) of surveyed organizations plan to reduce remote work schedules by requiring more time on-site, at least to a small extent; 39% plan to keep work schedules the same; and 12% of organizations offer more flexibility and remote work options.

Current State of Remote and Hybrid Work

Remote and hybrid work remains widely popular among employees, with 93% of surveyed employees saying flexibility was top of mind in their current job situation, according to a recent report from iCIMS. More than half (63%) of respondents said their primary consideration in accepting a position was whether it was remote, hybrid or in-person, and 42% of remote employees said they would look for other jobs if their employer refused to provide long-term remote options.

Organizations may leverage job flexibility to combat high employee turnover and gain a competitive advantage in the hiring market. But not all employees want to work remotely.

In the 2021 Pulse of the American Workforce Survey , 41% of employees said they wouldn’t want to work for a fully remote company. Survey respondents cited feelings of disconnect and pressure to be always online as primary issues with fully remote models. Many (54%) reported taking less time off, and 35% said they worked longer hours.

Poorly executed hybrid models can also frustrate or confuse employees. A recent survey by Gartner , a consulting firm, found that employees were 12% more likely to leave hybrid positions if their employers didn’t establish explicit workplace norms.

Employer Takeaway

Employers should continue to monitor workforce trends and employee desires when determining the proper arrangements for their organization.

Employers Must Display Updated FLSA Minimum Wage Poster

Wed, 24 May 2023 18:36:22 GMT

*If you are a SimcoHR Pro client, your updated poster was already mailed to you.

In April 2023, the U.S. Department of Labor (DOL) released an updated version of the federal Fair Labor Standards Act (FLSA) minimum wage poster. The DOL has indicated on its website that the previous version of the FLSA poster “no longer fulfills the posting requirement and should be replaced.”

Poster Updates

The DOL has aligned language in the new poster to match new requirements set by the Providing Urgent Maternal Protections for Nursing Mothers ( PUMP ) Act.

The PUMP Act amends the FLSA to require employers to provide break time and a private place, other than a bathroom, for all employees (including those who are exempt from FLSA overtime rules) to express breast milk. It also clarifies that these breaks must be paid when employees are not completely relieved of all work duties. A hardship exemption is available for employers with fewer than 50 employees.

Updating the FLSA Poster

Employers can update their FLSA minimum wage poster by contacting SimcoHR. Certain states like NY also have requirements that need to be posted. SimcoHR posters address the Federal and specific state requirements.

Employers should note that while the English version of the FLSA minimum wage poster has been updated, official foreign language versions have not. Currently, the DOL has not specified a timeline for updating official foreign language versions of this poster. As a result, employers should continue to monitor the DOL website to learn of updated foreign language versions of this poster.

Impact on Employers

The DOL has clearly indicated that previous versions of the FLSA minimum wage poster no longer satisfy the FLSA posting requirements. For this reason, employers can contact SimcoHR for assistance.

Employment Policies for Small Businesses to Consider in 2023

Tue, 25 Apr 2023 19:55:47 GMT

Employee handbooks are important tools for small businesses to help establish employee expectations, address workplace issues and defend against potential lawsuits. Failing to update employee handbook policies regularly can make small businesses vulnerable to legal risks and liabilities, resulting in costly fines, penalties and attorneys’ fees. Employment laws are often complicated, and small businesses need to be aware of any new regulatory developments that may impact their organizations and workforce. Yearly employee handbook reviews are an excellent time to review and update the policies.

The following are some employment policies small businesses should consider reviewing in 2023:

Pay Transparency

More employees are demanding pay transparency as a result of changing labor markets and workforce demographics. With demands for pay transparency increasing, some states—including California, Colorado, Connecticut, Maryland, Nevada, Rhode Island and Washington—have passed legislation in recent years requiring employers to be transparent. Some cities, including New York City, Jersey City and Cincinnati, have also passed such laws.

As applicable laws and regulations related to pay transparency vary based on jurisdiction and employer size, small businesses must consider their legal obligations. Considerations involve the jurisdiction where employees physically work. Some jurisdictions’ laws only require employers to provide pay ranges if the candidate requests it; others require employers to disclose this information upfront.

Paid Leave

In 2022, many states and localities enacted paid leave laws. This year, several previously enacted leave laws became effective in various states and cities throughout the United States; many other states have recently proposed paid leave legislation. These laws ensure workers continue receiving a portion of their wages when they’re unable to work under certain circumstances, such as due to illness or the birth of a child.

Because of the increasing number of states and localities adopting paid leave laws, small businesses must ensure their leave policies are current and comply with local laws. It is critical to review existing policies to confirm they conform to state and local regulations of the location where employees physically work.

An employer’s leave policies can clearly explain when employees are eligible for paid leave and provide any steps they must follow to request it. Small businesses should also verify their leave policies do not unintentionally discriminate against employees based on a protected class.

Expense Reimbursement

Federal law requires employers to reimburse employees for expenses that cause an employee’s pay to drop below the federal minimum wage. However, some state and local laws require employers to reimburse employees for work-related expenses, such as telephone or internet fees, office supplies, and heating or cooling costs. Employee expenses are considered wages under several state reimbursement laws and are subject to the same timing requirements as wage payments. Additionally, when small businesses reimburse employees for office equipment or devices, it may create issues about who owns the item.

The number of lawsuits claiming employers failed to reimburse employee expenses is quickly rising, so it’s vital that small businesses ensure their reimbursement policies comply with state and local laws.

Employer Takeaways

Outdated policies can often expose small businesses to unnecessary legal risks. Regularly reviewing and updating employment policies is an effective and low-cost way for small businesses to protect themselves. By understanding the most important sections to review in 2023, small businesses can take steps to ensure their employment policies are current and reflect the most recent regulatory developments. Employers should consider conferring with local legal counsel if they have questions or concerns regarding pay transparency requirements.

Reach out to SimcoHR for more workplace resources.

Understanding the Basics of Pay Transparency in 2023

Mon, 24 Apr 2023 20:26:35 GMT

More employees are demanding pay transparency. Despite many employers’ reluctance to embrace this emerging practice, it has gained a stronger foothold in 2023. In fact, pay transparency laws are impacting more employers as a growing number of states and localities require organizations to share pay information with applicants and employees. Here are some pay transparency basics to know for 2023:

What Is Pay Transparency?

Pay transparency is the practice of openly sharing pay-related information with current and potential employees. It helps ensure fairness and equality in the workplace. This information generally includes pay scales or salary ranges.

Pay Transparency Laws

Colorado was the first jurisdiction to enact pay transparency laws in 2021. Since then, 14 states and localities have enacted their own pay transparency laws. In fact, an estimated one-fourth of all U.S. workers were covered under pay transparency laws at the start of 2023. Pay transparency laws vary depending on the jurisdiction. For example, covered employers in California must provide pay scale information in any job posting, and covered employers in New York City must provide the minimum and maximum annual salary or hourly wage for all job postings, promotions and transfer opportunities.

Challenges

Pay transparency laws present compliance challenges for employers since they vary based on the state or locality. Employer compliance difficulties are often greater for organizations that recruit and hire employees across state lines, since hiring remote workers can trigger obligations in states where employers do not have a physical presence.

Employer Takeaway

Regardless of current applicability, even employers who are currently unaffected by local mandates should consider how pay transparency practices may impact their workplace or labor trends. Reach out today for additional resources.

New York to Reduce Overtime Threshold for Farmers

Fri, 24 Mar 2023 18:11:53 GMT

On Feb. 22, 2023, the New York State Department of Labor (NYDOL) published amendments to the state’s overtime regulations for farm workers. These amendments incorporate the Farm Labor Wage Board recommendation to reduce the overtime threshold for farm workers from 60 to 40 hours per week.

Implementation

The overtime threshold determines how many hours farm workers need to work before they qualify for overtime pay. The amendments specify that the overtime threshold for farm workers will be reduced to 40 hours per week over a 10-year period . Employers will need to compensate their farm workers for overtime at a wage of at least 1.5 times their regular rate of pay if they work more than the following number of hours in one workweek:

60 hours on or after Jan. 1, 2020;

56 hours on or after Jan. 1, 2024;

52 hours on or after Jan. 1, 2026;

48 hours on or after Jan. 1, 2028;

44 hours on or after Jan. 1, 2030;

40 hours on or after Jan. 1, 2032.

The NYDOL is not authorizing any exceptions to these requirements at this time.

Impact on Employers

Farming employers in the state of New York should make note of these amendments and review their payroll processes and procedures to ensure compliance with the new overtime thresholds by Jan. 1, 2024.

FMLA Compliance Snapshot

Fri, 24 Mar 2023 16:12:08 GMT

*For employers with over 50 full-time or full-time equivalents (FTE) employees

FMLA: Employee Notice of Leave

The federal Family and Medical Leave Act (FMLA) requires covered employers to provide eligible employees with unpaid, job-protected leave for qualifying reasons. Under the law, employees must provide employers with notice of their need for FMLA leave.

Content of an Employee’s Notice

An employee’s notice of a need for FMLA leave may be oral or written. The first time the employee requests leave for a qualifying reason, they are not required to mention the FMLA. However, they must provide enough information for the employer to know the leave may be covered by the FMLA.

Notice of Foreseeable Leave

Generally, an employee must give at least 30 days’ advance notice of the need to take FMLA leave when he or she knows about the need for the leave in advance and it is possible and practical to do so. If an employee fails to meet this requirement, the employer may delay the FMLA leave for 30 days after they receive notice. For foreseeable leave, the employee must also indicate when and how much leave is needed.

Notice of Unforeseeable Leave

When the need for leave is unexpected, the employee must provide notice as soon as possible and practical. It should usually be reasonable for the employee to provide notice of leave that is unforeseeable within the time required by the employer’s usual and customary notice requirements. Whether the employee’s notice of unforeseeable leave is timely will depend on the facts of the situation.

Notice of Leave for a Qualifying Military Exigency

Employees must give notice of the need for FMLA leave for a qualifying exigency of a military family member as soon as possible and practical, regardless of how far in advance the leave is needed.

Employer’s Usual Policies

In general, employers may require employees to comply with their usual and customary policies for requesting leave unless unusual circumstances prevent the employee from doing so.

The employer can take action under its internal rules and procedures if the employee fails to follow its usual and customary rules for requesting leave.

Planned Medical Treatment

When planning medical treatment, the employee must consult with the employer and make a reasonable effort to schedule the treatment so as not to unduly disrupt the employer's operations, subject to the approval of the health care provider.

FMLA: Serious Health Condition

The federal Family and Medical Leave Act (FMLA) requires covered employers to provide eligible employees with unpaid, job-protected leave for qualifying reasons. Qualifying reasons include needing time off due to the employee’s own serious health condition and caring for a spouse, son, daughter or parent who has a serious health condition.

Serious Health Condition

A serious health condition is an illness, injury, impairment, or physical or mental condition that involves inpatient care or continuing treatment by a health care provider. It does not include routine medical examinations, such as a physical, or common medical conditions, such as an upset stomach, unless complications develop.

Types of Serious Health Conditions

Inpatient care means an overnight stay in a hospital, hospice or residential medical care facility and any period of incapacity or subsequent treatment in connection with the overnight stay. Health conditions are also considered serious if they require continuing treatment by a health care provider. Such conditions include:

Incapacity plus treatment involving a period of incapacity of more than three consecutive, full calendar days, with follow-up treatment;
Any period of incapacity due to pregnancy or prenatal care;
·Any period of incapacity due to a chronic serious health condition requiring health care provider visits at least twice a year and recurring over an extended period;
A period of incapacity due to a permanent or long-term condition for which treatment may not be effective but requires the continuing supervision of a health care provider; and
Conditions requiring multiple treatments , which specifically include surgery after an accident or other injury, or a condition that would likely result in incapacity of more than three days without treatment.

Incapacity

Inability to work, including being unable to perform any one of the essential functions of the employee’s position; or
Inability to attend school or perform other regular daily activities due to the serious health condition, treatment of the serious health condition, or recovery from the serious health condition.

Incapacity Plus Treatment

Incapacity of more than three consecutive days and subsequent treatment or incapacity relating to the same condition that also involves:

Two or more in-person visits to a health care provider for treatment within 30 days of the first day of incapacity. The first visit must be within seven days of the first day of incapacity; or
At least one in-person visit to a health care provider for treatment within seven days of the first day of incapacity, resulting in a regimen of continuing treatment under the health care provider’s supervision.

A Primer for Employers on Medicare Coordination of Benefits

Fri, 24 Mar 2023 15:26:45 GMT

When a plan participant or beneficiary has Medicare and other health insurance, such as group health plan insurance, retiree coverage or Medicaid, there can often be confusion as to which insurance pays first on claims. Coordination of Benefits (COB) rules, which are specified in plan documents or insurance policies, decide which insurance pays first. One plan is considered the primary payer that covers most expenses, while the secondary plan covers any remaining allowable expenses not covered by the primary plan. The COB allows health plans to provide health or prescription drug coverage to individuals receiving Medicare to determine their payment responsibilities. This helps ensure that the total amount paid by all insurance plans does not exceed the total costs of the health care expenses for Medicare-covered services and items.

This article provides a general overview of COB rules under Medicare.

How Does Medicare Work With Other Insurance?

There are many important facts to remember regarding how other insurance works with Medicare-covered services and items, such as the following:

The primary payer pays first and up to its coverage limits.
The secondary payer only pays if there are costs the primary payer doesn’t cover.
The secondary payer, which may be Medicare in certain situations, might not pay all the uncovered costs from the primary payer.
If a group health plan or retiree coverage is the secondary payer, the individual may need to enroll in Medicare Part B before that insurance would pay.

What’s a Conditional Payment?

Who Pays First?

When an individual has Medicare and other insurance, there are rules for whether Medicare or the other insurance is the primary payer for Medicare-covered services and items.

Medicare is typically the primary payer for Medicare-covered services and items in the following circumstances:

An individual is covered by only Medicare and Medicaid.
An individual covered by Medicare refuses group health coverage.
Medical services or supplies are not covered under a group health plan but are covered under Medicare.
A Medicare-covered individual is covered by a group health plan but has exhausted their coverage under the group health plan.
A Medicare-covered individual is 65 or older and covered by a group health plan (because the individual or their spouse is still working) offered by an employer with fewer than 20 employees.
A Medicare-covered individual is 65 or older and covered by an employer group health plan after retirement.
A Medicare-covered individual is 65 or older (or disabled) and covered by Medicare and the Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage.
A Medicare-covered individual is disabled and covered by a large group health plan offered by an employer with fewer than 100 employees.
A Medicare-covered individual has end-stage renal disease and is enrolled in a group health plan or COBRA (after 30 months of eligibility or entitlement to Medicare).
A Medicare-covered individual has only Medicare and TRICARE coverage unless the individual is on active duty and receives services and items from a military hospital, clinic or other federal health care provider.

How Does Medicare Know if an Individual Has Other Coverage?

Collect and manage information on other types of coverage an individual with Medicare may have.
Determine whether an individual’s other coverage pays before or after Medicare.
Pursue repayment when Medicare makes a conditional payment.

Summary

For more health care resources, contact SimcoHR today.

ACA Pay or Play Penalties Will Increase for 2024

Fri, 24 Mar 2023 15:11:03 GMT

*For employers with over 50 full-time or full-time equivalents (FTE) employees.

On March 9, 2023, the IRS released updated penalty amounts for 2024 related to the employer shared responsibility (pay or play) rules under the Affordable Care Act (ACA). For calendar year 2024, the adjusted $2,000 penalty amount is $2,970 and the adjusted $3,000 penalty amount is $4,460.

Pay or Play Penalty Calculations

Under the pay or play rules, an applicable large employer (ALE) is only liable for a penalty if at least one full-time employee receives a subsidy for Exchange coverage. Employees who are offered affordable, minimum value (MV) coverage are generally not eligible for these Exchange subsidies.

Depending on the circumstances, one of two penalties may apply under the pay or play rules—the 4980H(a) penalty or the 4980H(b) penalty.

Under Section 4980H(a), an ALE will be subject to a penalty if it does not offer coverage to “substantially all” (generally, at least 95%) of its full-time employees (and dependents) and any one of its full-time employees receives a subsidy toward his or her Exchange plan. The monthly penalty assessed on ALEs that do not offer coverage to substantially all full-time employees and their dependents is equal to the ALE’s number of full-time employees (minus 30) multiplied by 1/12 of $2,000 (as adjusted), for any applicable month.

Under Section 4980H(b), ALEs that offer coverage to substantially all full-time employees (and dependents) may still be subject to a penalty if at least one full-time employee obtains a subsidy through an Exchange because the ALE did not offer coverage to all full-time employees, or the ALE’s coverage is unaffordable or does not provide MV. The monthly penalty assessed on an ALE for each full-time employee who receives a subsidy is 1/12 of $3,000 (as adjusted) for any applicable month. However, the total penalty for an ALE is limited to the 4980H(a) penalty amount.

IRS Pay or Play Penalty Resources

The IRS provides a variety of resources on the pay or play provisions, which provide more information on calculating the penalty. Employers can use the following two IRS webpages for more details:

Employer Shared Responsibility Provisions

Types of Employer Payments and How They Are Calculated

Additional webpages are dedicated to other aspects of the pay or play rules.

Important Dates:

Aug. 16, 2022
The IRS released updated pay or play penalty amounts for 2023.

March 9, 2023
The IRS released updated pay or play penalty amounts for 2024.

2024 Calendar Year
The 2024 penalty amounts apply for failures to offer affordable, minimum value coverage during the 2024 calendar year.

Three Employment Policies to Review in 2023

Fri, 24 Mar 2023 14:47:46 GMT

Employee handbooks are important tools for establishing employee expectations, addressing workplace issues and defending against potential lawsuits. Employment laws are often complicated, and new regulatory developments may impact these policies. Here are three employment policies employers should consider reviewing in 2023.

1. Pay Transparency

Pay transparency is the practice of an employer openly communicating pay-related information to prospective and current employees through established methods. With demands for pay transparency increasing, more states and localities have passed legislation in recent years. More employers are considering these policies to meet employee desires, even if they are in jurisdictions that do not require pay transparency.

2. Paid Leave

Paid leave laws ensure workers continue receiving a portion of their wages when they’re unable to work under certain circumstances. In 2022, many states and localities enacted paid leave laws. This year, several previously enacted leave laws became effective in various states and cities throughout the United States; many other states have recently proposed paid leave legislation. As such, employers should ensure their leave policies are current and comply with local laws. An employer’s leave policies can also clearly communicate eligibility to employees.

3. Remote and Hybrid Work Arrangements

Employers continue to allow employees to take advantage of flexible work arrangements, but many have not updated their employment policies to adequately address these arrangements. These policies can set clear expectations surrounding employee work hours, communication, productivity, technology usage and more.

Summary

Employers can take steps to ensure their employment policies are current and reflect the most recent regulatory developments. Reach out to SimcoHR today for help creating or updating your employee handbook!

DOL Issues Guidance on Telework and FMLA Eligibility

Fri, 24 Mar 2023 14:37:58 GMT

On Feb. 9, 2023, the U.S. Department of Labor (DOL) published a Field Assistance Bulletin (FAB) No. 2023-1 that includes guidance on how to apply eligibility rules under the Family and Medical Leave Act (FMLA) when employees telework or work away from an employer’s facility. FABs provide guidance to DOL Wage and Hour Division (WHD) field staff.

The FMLA requires covered employers to provide eligible employees with up to 12 weeks of unpaid, job-protected leave for specific reasons related to the health and well-being of themselves and their families. Generally, employers are covered if they have at least 50 employees. Employees are eligible for FMLA benefits if they:

Have worked for their employer for at least 12 months
Have worked 1,250 hours during the 12 months preceding the leave
Work at a location where the employer has at least 50 employees within 75 miles

FAB 2023-1

In FAB No. 2023-1 , the WHD notes that employees who telework are eligible for FMLA leave on the same basis as any other employees, but for FMLA eligibility purposes, the teleworking employee’s personal residence is not a worksite. The FAB states that when an employee works from home or otherwise teleworks, their worksite, for FMLA eligibility purposes, is the office to which they report or from which their assignments are made.

In addition, according to the FAB, the count of employees within 75 miles of a worksite includes all employees whose worksite is within that area, including employees who telework and report to or receive assignments from that worksite.

Hours Worked

The FAB also states that, with respect to the FMLA’s hours-worked requirement, all hours worked are counted when an employee teleworks from home consistently or in combination with working at another or various worksites.

EEOC Says 2022 EEO-1 Reporting Will Begin in July

Thu, 23 Feb 2023 19:17:05 GMT

The U.S. Equal Employment Opportunity Commission (EEOC) recently announced that the 2022 EEO-1 Component 1 data collection is tentatively scheduled to open in mid-July 2023. This year’s timeline for submitting the EEO-1 Report differs from past years. Last year, the reporting period began on April 12, 2022.

The EEO-1 Report is a federally mandated survey that collects workforce data categorized by race, ethnicity, sex and job category. According to the EEOC, this data is used for a variety of purposes, including enforcement, self-assessment by employers and research. Under Title VII of the Civil Rights Act, employers with 100 or more employees—with some exclusions—and certain federal contractors must report this data to the EEOC each year. Employers are typically required to file their report by March 31, but, in recent years, the date for the EEOC’s portal opening and the deadline for submitting the data have been delayed, creating confusion and uncertainty for employers.

Although the EEOC sends notification letters to employers it knows to be subject to the EEO-1 requirements, all employers are responsible for obtaining and submitting the necessary information prior to the deadline. If an employer fails or refuses to file an EEO-1 Report, they may be compelled to do so by a federal district court.

What’s Next?

If preparing or filing the EEO-1 Report creates an undue hardship, an employer may send a written request for an exemption or special reporting procedures to the EEOC. Employers may obtain a one-time, 30-day extension of the EEO-1 filing deadline by emailing a request to the EEOC. However, the EEOC does not grant any exemptions or extensions requested after the filing deadline.

Updates regarding the 2022 EEO-1 data collection, including the opening date, will be posted on the EEOC’s EEO-1 website as they become available. As such, employers should continue to monitor the EEOC’s website.

Minimum PTO Policies

Thu, 23 Feb 2023 18:38:49 GMT

Many employees do not use their allotted paid time off (PTO) despite their employers’ vacation and other leave policies. As a result, some employers are implementing minimum PTO policies to address this challenge. This emerging trend takes standard PTO policies one step further by mandating that employees take off a minimum number of days each year. When done properly, minimum PTO policies can help curb employee burnout, improve workplace productivity and strengthen attraction and retention efforts.

This article explores minimum PTO policies, including the potential benefits and organizational considerations for developing and implementing these policies.

What Is Minimum PTO?

Minimum PTO—also known as mandatory vacation or time off—is a policy that requires employees to take a minimum number of vacation days each year. While minimum PTO policies can vary by duration and the amount of time employees can take off, they generally take the form of an annual time-off minimum. These policies can establish deadlines for employees to use their PTO monthly, quarterly, seasonally or annually. Employees continue to receive their regular wages when taking time off.

Some employers require employees to take a portion of their minimum PTO over multiple consecutive days. This is known as a consecutive-day policy. For example, an employer may require employees to schedule five of their allotted 15 PTO days consecutively. This helps ensure that employees disconnect from work while away from the office, allowing them to use their PTO for something meaningful and return to work recharged. Consecutive day policies may also allow employees to take time off in smaller increments as long as they take one larger block of PTO each year.

Potential Benefits of Minimum PTO

Many savvy employers are transitioning to minimum PTO to help their employees feel happier and more satisfied at work, which can increase workforce productivity and reduce turnover. Minimum PTO not only encourages employees to use their allotted time off, but it can also strengthen organizations. The following sections highlight some benefits of implementing minimum PTO policies.

Improved Employee Well-being

Employees are an organization’s most valuable resource. By requiring employees to use their PTO, employers prioritize their workers’ mental and physical well-being. Minimum PTO can also help organizations strengthen employee loyalty since it can signal to workers that they’re not required to be online or work outside of expected hours. This can lead to employees feeling valued and, therefore, improve morale. Additionally, because minimum PTO policies help employees recharge, they can improve workplace productivity and safety. A rested workforce will likely be more creative, focused and careful.

Workforce Needs Evaluation

Mandatory PTO allows organizations to evaluate their workforce needs and reveal potential issues. By requiring employees to take time off, employers can learn whether a particular employee is taking on too many responsibilities and if they need to hire additional workers. It can also encourage cross-training by allowing workers to take on new responsibilities and gain experience when their colleagues are away. This can enable knowledge transfer among workers and decrease the risk of losing vital information and experience when an employee leaves. Additionally, since minimum PTO requires all employees to take time off, it can provide employees with opportunities to report workplace issues that they might not otherwise do due to fear or intimidation, such as harassment and bullying.

Reduced Cashflow and Rollover Issues

Minimum PTO policies can provide a positive alternative to use-it-or-lose-it PTO policies. Many regular PTO policies allow employees to cash out or roll over unused PTO at the end of the year. Cash-outs can create cashflow problems for employers, and rollovers can lead to scheduling challenges the following year. Minimum PTO policies can help organizations save money on year-end PTO payoffs by avoiding cash-outs entirely and limiting potential scheduling issues from rollovers.

Alternatives to Unlimited PTO Policies

Unlimited PTO can be a great recruitment tool and may seem ideal for employees, but, in reality, it can be problematic. Employees often struggle to strike a balance between an acceptable amount and an excessive amount of PTO under unlimited policies. As a result, many employees take less time off than they would if their employers adopted minimum PTO policies. As a result, unlimited PTO can cause employee burnout, decreased worker productivity and increased turnover.

Additionally, unlimited PTO policies can be ambiguous or poorly designed, making it more difficult for employees to take time off. Some organizations may have unspoken rules about using unlimited PTO. This is common in industries with demanding work cultures, like banking and finance. These unspoken norms often dissuade employees from taking time off because they may feel unsure or guilty about stepping away from work. By requiring employees to take time off, employers signal to workers and applicants that they value work-life balance, which can improve overall attraction and retention efforts.

Considerations for Implementing Minimum PTO

While minimum PTO can help employees feel happier and more satisfied at work, adopting this approach can create scheduling challenges. Minimum PTO policies require employers to plan ahead because they must address situations where employees may be out for multiple days. In addition to potential scheduling issues, minimum PTO can create hardships for employees by requiring them to increase their workloads when their coworkers are away. This is especially true for small teams and businesses. Employers can address these issues by establishing PTO blackout periods during peak times or predictable busy seasons. They can also train managers to address PTO requests during popular times, such as during the summer and holidays.

When establishing policies regarding PTO usage and blackout periods, employers need to be consistent with how they administer and approve time-off requests. Employers can do this by establishing a written minimum PTO policy that provides employees with details about how to use and request time off. This can include the minimum number of days employees must use each year, whether any days need to be consecutive and the deadlines for using PTO (e.g., monthly, quarterly and annually).

Organizations need to consider how minimum PTO policies may negatively impact employees. Requiring employees to take time off may cause some workers to feel like they’re losing autonomy because their employer is dictating when they must work and when they must take time off. Additionally, forcing employees to take time off can disrupt internal workflow, especially if employees must take time off during the middle of an important project or right before a critical deadline. This could lead to increased stress for employees and create work-related difficulties.

Employers must ensure their minimum PTO policies comply with federal and state law requirements, including timekeeping requirements under the Fair Labor Standards Act. Many states and localities govern how unused PTO must be handled at year-end or when an employee leaves a company. Additionally, legally mandated paid sick leave is becoming more common throughout the United States. Employers need to ensure that their mandatory PTO policies comply with state and local laws regarding paid sick leave.

Summary

Minimum PTO policies can help create a happier and more productive workforce. While requiring employees to take time away from work can benefit employers and employees, it’s vital that employers weigh these policies’ benefits and compliance costs before implementing them to ensure it’s the right decision for their organization.

For more workplace resources, contact SimcoHR today.

Hours Worked Under the Fair Labor Standards Act (FLSA)

Thu, 23 Feb 2023 18:27:09 GMT

This article provides general information concerning what constitutes compensable time under the FLSA . The Act requires that employees must receive at least the minimum wage and may not be employed for more than 40 hours in a week without receiving at least one and one-half times their regular rates of pay for the overtime hours. The amount employees should receive cannot be determined without knowing the number of hours worked.

Definition of "Employ"

By statutory definition the term "employ" includes "to suffer or permit to work." The workweek ordinarily includes all time during which an employee is necessarily required to be on the employer's premises, on duty or at a prescribed work place. "Workday", in general, means the period between the time on any particular day when such employee commences his/her "principal activity" and the time on that day at which he/she ceases such principal activity or activities. The workday may therefore be longer than the employee's scheduled shift, hours, tour of duty, or production line time.

Application of Principles

Employees "Suffered or Permitted" to work: Work not requested but suffered or permitted to be performed is work time that must be paid for by the employer. For example, an employee may voluntarily continue to work at the end of the shift to finish an assigned task or to correct errors. The reason is immaterial. The hours are work time and are compensable.

Waiting Time:

Whether waiting time is hours worked under the Act depends upon the particular circumstances. Generally, the facts may show that the employee was engaged to wait (which is work time) or the facts may show that the employee was waiting to be engaged (which is not work time). For example, a secretary who reads a book while waiting for dictation or a fireman who plays checkers while waiting for an alarm is working during such periods of inactivity. These employees have been "engaged to wait."

On-Call Time:

An employee who is required to remain on call on the employer's premises is working while "on call." An employee who is required to remain on call at home, or who is allowed to leave a message where he/she can be reached, is not working (in most cases) while on call. Additional constraints on the employee's freedom could require this time to be compensated.

Rest and Meal Periods:

Rest periods of short duration, usually 20 minutes or less, are common in industry (and promote the efficiency of the employee) and are customarily paid for as working time. These short periods must be counted as hours worked. Unauthorized extensions of authorized work breaks need not be counted as hours worked when the employer has expressly and unambiguously communicated to the employee that the authorized break may only last for a specific length of time, that any extension of the break is contrary to the employer's rules, and any extension of the break will be punished. Bona fide meal periods (typically 30 minutes or more) generally need not be compensated as work time. The employee must be completely relieved from duty for the purpose of eating regular meals. The employee is not relieved if he/she is required to perform any duties, whether active or inactive, while eating.

Sleeping Time and Certain Other Activities:

An employee who is required to be on duty for less than 24 hours is working even though he/she is permitted to sleep or engage in other personal activities when not busy. An employee required to be on duty for 24 hours or more may agree with the employer to exclude from hours worked bona fide regularly scheduled sleeping periods of not more than 8 hours, provided adequate sleeping facilities are furnished by the employer and the employee can usually enjoy an uninterrupted night's sleep. No reduction is permitted unless at least 5 hours of sleep is taken.

Lectures, Meetings and Training Programs:

Attendance at lectures, meetings, training programs and similar activities need not be counted as working time only if four criteria are met, namely: it is outside normal hours, it is voluntary, not job related, and no other work is concurrently performed.

Travel Time:

The principles which apply in determining whether time spent in travel is compensable time depends upon the kind of travel involved.

Home to Work Travel:

An employee who travels from home before the regular workday and returns to his/her home at the end of the workday is engaged in ordinary home to work travel, which is not work time.

Home to Work on a Special One Day Assignment in Another City:

An employee who regularly works at a fixed location in one city is given a special one day assignment in another city and returns home the same day. The time spent in traveling to and returning from the other city is work time, except that the employer may deduct/not count that time the employee would normally spend commuting to the regular work site.

Travel That is All in a Day's Work:

Time spent by an employee in travel as part of their principal activity, such as travel from job site to job site during the workday, is work time and must be counted as hours worked.

Travel Away from Home Community:

Travel that keeps an employee away from home overnight is travel away from home. Travel away from home is clearly work time when it cuts across the employee's workday. The time is not only hours worked on regular working days during normal working hours but also during corresponding hours on nonworking days. As an enforcement policy the Division will not consider as work time that time spent in travel away from home outside of regular working hours as a passenger on an airplane, train, boat, bus, or automobile.

Typical Problems:

Problems arise when employers fail to recognize and count certain hours worked as compensable hours. For example, an employee who remains at his/her desk while eating lunch and regularly answers the telephone and refers callers is working. This time must be counted and paid as compensable hours worked because the employee has not been completely relieved from duty.

Where to Obtain Additional Information:

For additional information, visit our Wage and Hour Division Website: http://www.dol.gov/agencies/whd and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243).

This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations.

The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.

6 Cost-cutting Tips for Small Businesses

Thu, 23 Feb 2023 15:40:09 GMT

Employers of all sizes are currently searching for ways to reduce expenses and save money in response to the current economic downturn and ongoing labor challenges. Instead of cutting costs randomly or conducting unnecessary layoffs, successful organizations tend to optimize their resources by identifying areas where they can reduce expenses without compromising productivity or future growth. While knowing the best ways to cut costs is essential for any organization, it’s especially important for small businesses since they tend to have fewer resources than larger employers.

Here are six tips to help small businesses effectively cut costs:

Invest in new technology. Adopting new technology can bolster efficiency and create savings by streamlining operations. For example, technology may enable employers to optimize or even automate manual and error-prone tasks.
Strengthen employee retention. Replacing workers is often extremely expensive. Employee turnover not only increases an organization’s recruiting and training costs but also usually results in decreased productivity, lost proficiency and reduced profits. As such, prioritizing employee retention can be one of the most effective cost-cutting strategies for small businesses.
Manage health care costs. Finding cost-effective solutions is vital for small businesses to maintain affordable benefits and reduce costs. Solutions may include re-evaluating plan designs and offerings, directing employees to cost-effective services and improving health care literacy. By adopting several cost-cutting strategies, small businesses can better manage health care costs without sacrificing employees’ needs.
Embrace outsourcing. While performing tasks in-house can often be cost-effective, there are some instances when outsourcing nonessential work can be more economical. Specifically, it may be better for some organizations to outsource manual, time-consuming tasks, such as payroll and benefits administration. Outsourcing these kinds of tasks can enable employees to focus on more important responsibilities that have a greater and more direct impact on a small business’s bottom line and future growth.
Adopt flexible work arrangements. The expense of having a physical workspace can add up. Some small businesses are transitioning to being home-based or implementing remote and hybrid work arrangements to cut costs. If converting to a home-based business or going remote isn’t possible, employers can consider downsizing their facilities to reduce their rent and utility bills. Small businesses can also explore other alternatives to reduce rent, such as co-working arrangements and renegotiating their leases.
Review expenses. Poor cash flow can strain and even jeopardize an organization’s longevity. Reviewing expenses regularly can be an effective way to reduce and eliminate unnecessary costs. Employers can also negotiate with providers, suppliers and vendors, such as banks and landlords, to potentially defer payments, reduce fees, improve rates and receive additional services during difficult times. By establishing and fostering relationships with these individuals and entities, organizations can cultivate allies and acquire strategic partners, which can pay dividends by creating cost-savings solutions and opportunities.

Effective cost-cutting strategies will likely vary for each small business. However, by planning properly and understanding effective cost-cutting approaches, small businesses can identify and reduce the costs that will have the most impact on their organizations. This can help small businesses bolster their financial stability, optimize their resources and position themselves for future growth.

Reach out to SimcoHR for more workplace resources.

Cybersecurity Tips for Small Businesses

Thu, 23 Feb 2023 15:31:05 GMT

Cyberattacks and data breaches not only threaten large employers but also present a major concern for small businesses. In many instances, small businesses can be more vulnerable to cyberattacks because they lack the resources, protocols or proper systems to protect themselves. According to the Identity Theft Resource Center’s 2022 Business Impact Report, nearly 45% of small businesses and self-employed individuals experienced a security or data breach between July 2021 and July 2022.

Cybercriminals frequently target customer and employee data. While external threat actors are the most common causes of data breaches, incidents involving remote workers, malicious insiders, third-party vendors and human error also leave small businesses exposed.

Here are some essential tips to help small businesses protect themselves from cyberattacks:

Use strong passwords and authentication. Requiring employees to use unique passwords—changing them frequently—and implementing multi-factor authentication can reduce the risk of cybersecurity breaches.
Train employees. Establishing security policies—such as requiring strong passwords and creating internet use guidelines—and training employees to recognize threats can be one of the best ways organizations can protect themselves.
Backup critical data. Organizations should regularly backup critical data, like word processing documents, spreadsheets, databases, financial and HR files, and account information. If small businesses can’t back up data automatically, they should do it at least weekly, storing it offsite or in the cloud.
Use virus protection software. Ensuring security software, web browsers and operating systems are up to date can often be the best defense against viruses, malware and other online threats. Employers should update virus protection software regularly and scan all computer files after each update.
Install firewalls. Firewalls prevent outsiders from accessing data on a private network and act as a gatekeeper between an organization’s computers and the internet. Employers should ensure their operating system’s firewall is enabled. If any employees work remotely, organizations should ensure those workers’ systems are firewall protected.
Secure networks. Small businesses should ensure their Wi-Fi networks are secure, encrypted and hidden, and router access is password protected.
Control access to computers. Lost or stolen computers can make an organization vulnerable to cyberattacks. Employers can reduce this risk by creating separate user accounts for each employee and requiring strong passwords. Employees should ensure their devices are locked when not in use.

The internet allows small businesses to reach new customers and can improve productivity, but it’s not without risk. By establishing cybersecurity protocols and creating a culture of security, small businesses can protect themselves and their data from growing cybersecurity threats.

Building an Employee Value Proposition to Attract and Retain Employees

Thu, 23 Feb 2023 15:20:53 GMT

An employee value proposition (EVP) is the unique set of benefits employees receive in return for the skills, capabilities and experiences they bring to an organization. While an EVP includes common factors such as compensation, benefits and career opportunities, it also expands to all the value an employee can receive in exchange for their work.

A strong EVP gives employees a powerful reason to work for the organization. It can contribute to a solid and positive employer brand, prioritize organization goals, reengage the workforce and reduce hiring costs. Most importantly, an EVP contributes to attracting and retaining top talent. In fact, according to an Indeed survey, 21% of job seekers decided to accept the offer for their current job because their interests and values were reflected in the company’s mission. So, not only should a suitable EVP address the wants and needs of employees, but it should also align with the company’s values.

An EVP is discovered by, developed with and tested on existing employees. It should be unique, relevant and compelling in order to be the magnet that attracts and retains job candidates. This article outlines the elements of an EVP, explains how to build an effective one and discusses employer considerations for such propositions.

Elements of an EVP

A desirable EVP is relevant to employees’ wants and needs; it should stand out from competitors’ offerings. Here are some components that can fit into an employee’s overall EVP:

Career development
Company culture
Company values
Company location(s) and facilities
Employee benefits
Employee recognition
Job security
Nonsalary financial perks
On-the-job perks
Overall compensation
Preferred management style
Team dynamics
Travel opportunities
Volunteer opportunities
Work-life balance

Building an EVP

Employers can and should personalize their EVPs to reflect their company’s values. For example, an organization’s EVP could be career development-focused by offering a leadership training, promotions, career-centered workshops and travel opportunities. Another example is providing the best benefits in the industry. Although EVPs are not one-size-fits-all, certain aspects must be factored in to make them as appealing to as many candidates and employees as possible.

Therefore, the process of building an organization’s EVP should take the following tips into account:

Create buy-in from the top. An effective EVP has buy-in from the entire workplace, meaning it’s important that it’s supported from top executives and senior leadership. This is important so that there’s a trickle-down effect of support.
Build an EVP for everyone. It’s helpful to keep in mind that not every offering in an EVP will be applicable to every employee. That being said, the goal of building an EVP is to make sure that it caters to the needs of every employee, including any phase of life that they may be in.
Engage in a research process. When building an EVP, it’s important to consider the thoughts and feedback from the people who will benefit the most: employees. Consider sending out a survey or starting market research about the needs of the workplace’s employees.
Communicate the EVP. Once the EVP is built, it’s time to communicate it to employees. This includes both current and future employees. The EVP can be communicated in various places, including the organization’s website, social media and job posts.
Review the existing EVP. An organization’s EVP should be reviewed and adjusted as the needs of employees change. A change of needs is inevitable, so be sure to set up a cyclical review process to be sure the EVP being offered is getting its use and is effective in attracting and retaining employees.

Employer Considerations for Defining an EVP

An EVP is more extensive than a paycheck. So, when building an EVP, there are also considerations for employers to keep in mind pertaining to job growth, work environment and more. The following key elements help create a compelling EVP:

An engaging and healthy work environment —A positive work environment in which workers can grow and prosper will help attract new employees and retain current ones.
Opportunities for growth and development within the organization —Employees are more likely to stay at an organization if there’s room for growth.
Consistent and stable job opportunities —Job security can help increase retention across the organization because employees will feel secure.
Competitive wages —Paying more than the competition can help set a company apart from others applicants may be considering.
Additional monetary and nonmonetary perks —Incentives such as wellness perks and work-from-home flexibility, to name a few, can influence employee retention, as these may align with employee desires.

Summary

Building an EVP that fits the needs of employees is crucial for employee attraction and retention. Whether an organization is ready to start building an EVP or it’s time to reevaluate a current EVP, be sure it’s based on the current workplace values and employee needs and desires. For additional resources on building an EVP, reach out to SimcoHR today.

Adding Walking to Your Daily Routine

Thu, 23 Feb 2023 15:07:42 GMT

Working a remote or in-person office job that requires you to sit for most of the day can take a toll on your physical and mental health. Luckily, walking is a feasible way to add in exercise for most and can provide several benefits.

According to a study published by the American Journal of Epidemiology, just 30 minutes of physical activity a day can counteract a day of sitting. Another study from Columbia University found that just five minutes of walking every 30 minutes can offset some of the more harmful effects that come from sitting for extended periods of time, such as the increased risk of heart disease, high blood pressure and diabetes.

This article discusses the benefits of walking daily and provides several tips on how to add walking into your routine.

Benefits of Walking

While walking is a relatively easy activity for most, it shouldn’t be overlooked as there are many benefits to regularly taking a stroll. Some benefits of walking include:

Weight maintenance
Reduced body fat
Increased cardiovascular fitness
Improved endurance
Higher energy levels
Better mood, memory and sleep
Strengthened immune system

Ways to Implement Walking Daily

Making time to go to the gym every day can be hard, and many people do not have the time to do so consistently. Luckily, walking does not require much additional time and can be implemented into a routine rather easily. Consider the following tips for including more walking into your daily routine:

Make small goals. Create small goals, such as taking a 10 minute walk at lunch each day. By implementing small goals like this, you are more likely to be successful in maintaining a new walking habit.
Diversify your routine. Change your walking routes to keep yourself from becoming bored. You may also consider walking at different speeds throughout your walk to keep things interesting.
Walk with friends. Invite friends to join you on your walks. This not only encourages you to keep the habit because you know others are counting on you to show up, it also keeps the walks from becoming monotonous.
Set reminders. Decide when you want to walk during the day and set reminders to do so. It’s easy to forget to take break when you get into your work, so setting reminders can ensure this doesn’t happen.
Get a walking pad. A walking pad—also known as a folding floor treadmill—is a small pad that fits under most standing desks. If you find yourself unable to make time to walk during the workday, consider getting a walking pad. This allows you to walk at a standing desk at any point during the day.
Listen to your body. Don’t be afraid to take time off or modify your routine. It is important to pay attention to your body’s signals and take care of yourself so that your new routine is one that you are able to maintain.

Takeaway

Most office jobs require a lot of sitting which can be detrimental to your health. Implementing walking throughout the day can not only improve your physical health, but your mental health as well.

To learn more about creating a physical activity routine, talk to your primary care provider and discuss what works best for you.

Employers May Have to Pay Workers for Short-term Military Leaves

Wed, 22 Feb 2023 21:34:06 GMT

Employees who take short-term military leaves may be entitled to compensation from their employers during those leaves, according to a decision by the U.S. Court of Appeals for the 9 ^th Circuit. The Feb. 1, 2023, opinion in Clarkson v. Alaska Airlines Inc. held that the Uniformed Services Employee and Reemployment Rights Act (USERRA) requires employers to provide paid military leave to the same extent they provide paid leave for other comparable absences.

In reversing summary judgment, the 9 ^th Circuit remanded the case for adjudication on the issue of whether short military leaves are comparable with other paid leaves provided by the employer. The opinion follows cases from the 7 ^th and 3rd Circuits similarly recognizing employee rights to paid military leave under USERRA.

USERRA Language on Pay During Leave

USERRA states that employees absent from work due to service in the uniformed services are entitled to the rights and benefits generally provided to employees having similar seniority, status and pay who are on furlough or leave of absence. Under USERRA regulations, if the benefits vary according to the type of leave, the employee must be given the most favorable treatment accorded to any comparable form of leave. The regulations provide that to determine whether types of leave are comparable, the following factors must be considered:

The duration of the leave;
The purpose of the leave; and
The ability of the employee to choose when to take the leave.

Clarkson v. Alaska Airlines Inc.

Clarkson, a pilot with Alaskan Airlines and a military reservist, sued the airline, arguing that because the airline provided paid jury duty, bereavement and sick leave, it was also required to provide paid leave for short-term (30 days or less) absences for military service under USERRA. The lower court granted summary judgment for the airline after comparing the duration of all military leaves (which can last for years) with the duration of the nonmilitary leaves provided by the employer, finding that no reasonable jury could conclude they were comparable.

The 9th Circuit reversed, holding that USERRA requires a comparison of the employer’s nonmilitary leaves with only short-term military leaves, not with all military leaves. The appeals court also found that the lower court erred in comparing the frequency of military with nonmilitary leaves and in its comparisons of the purpose of the military versus nonmilitary leaves and employees’ ability to control the leaves.

Workstation Ergonomics

Thu, 26 Jan 2023 19:08:08 GMT

Employees often spend a lot of time at their workstations, so it’s important to ensure the space is set up for them to succeed and develop healthy and sustainable habits. Ergonomics is the science of fitting a workspace to an individual’s needs and aims to increase efficiency while reducing discomfort and the likelihood of injury. Poor workstation ergonomics can lead to reduced productivity and several musculoskeletal disorders that may have long-lasting effects, such as head or neck strain and damage to muscles, nerves, blood vessles, ligaments and tendons.

While completing a nonergonomic motion may feel natural or safe for the short term, repetitive or prolonged use of an unhealthy body movement can lead to long-term injuries and strains. Typically, aches and pains from office work stem from physical stress due to prolonged and awkward positions, repetitive motions and overuse. Even with the best posture and ergonomics, sitting at a desk can still be stressful for the body. Fortunately, a properly designed workstation and healthy habits can help employees stay comfortable and healthy at work. Here are tips for several aspects of healthy workstation ergonomics:

Chair support —An employee’s chair should support their spine’s curvature and adjust so that their feet are resting flat on the floor and their thighs are parallel to it. Employees should focus on maintaining good posture by sitting up as straight as possible.
Desk placement —A desk should have space underneath for an employee’s legs and feet without their knees banging on the bottom. If it’s too low, employees should adjust their chairs or work surfaces accordingly.
Computer monitor positioning—Employees should ensure their computer monitors are directly in front of them and an arm’s length away. The top of the screen or screens should be at or below eye level.
Keyboard and mouse use —When using a keyboard and mouse, they should be on the same surface. Ideally, a flat keyboard is better than a tilted one. Employees should position their arms so their wrists can be straight, with their arms at elbow level.
Phone and meeting considerations —If an employee is spending much time on phone calls or in meetings, a headset or speakerphone can reduce the need to frequently hold up the phone or press it up against their neck.
Lighting selection —A mixture of natural and artificial light can reduce the risk of eye strain and headaches. Glare can also strain an employee’s eyes, so they should position their monitor in a way that reduces and eliminates glare, if possible.
File organization —Employees can organize files and materials so they’re not frequently bending or straining to access them.

While setting up a workstation properly is key, it’s also important to maintain healthy behaviors, such as focusing on good posture. In addition, employees should be sure to readjust and take breaks from time to time. On average, the human body can only tolerate one position for about 20 minutes before needing readjustment. Even taking a one-minute break every 20 minutes is helpful.

Ideally, an employee’s workstation setup should include everything they need to create an ergonomic environment. However, if employees have any questions about their equipment or best practices, they should discuss them with their manager.

FTC Proposes Rule to Ban Noncompete Agreements

Thu, 26 Jan 2023 18:58:29 GMT

The Federal Trade Commission (FTC) recently announced a proposed rule that would ban noncompete clauses in employment agreements. In making its historic announcement, the agency stated that noncompete agreements harm competition; suppress wages for workers, including those not subjected to noncompete clauses; reduce labor mobility; and hamper innovation. According to the FTC, if the proposed rule becomes final, it could increase employee wages by approximately $300 billion per year and expand career opportunities for 30 million American workers.

What Will the Proposed Rule Address?

The agency’s proposed rule is based on a preliminary finding that noncompete clauses constitute unfair competition and, therefore, violate Section 5 of the Federal Trade Commission Act. The proposed rule would generally prevent employers from taking the following actions:

Entering or attempting to enter into noncompete agreements with employees
Maintaining noncompete agreements with employees
Representing to employees, under certain circumstances, that they are subject to noncompete agreements

The FTC’s proposed rule includes a limited exception for noncompete clauses between a seller and buyer of a business. Additionally, nondisclosure and nonsolicitation agreements are excluded from the definition of a noncompete clause. The agency’s proposed rule would apply to both employees and independent contractors. If the rule becomes final, employers would be required to nullify existing noncompete agreements within six months of the final rule’s publication.

What Does This Mean?

Noncompete agreements are used for workers across industries and job levels. They prevent workers from accepting jobs with competing employers or even starting their own businesses. If the FTC’s proposed rule becomes final, employers would no longer be able to require employees to agree to noncompete clauses, and existing noncompete agreements would no longer be considered valid. Banning noncompete agreements could considerably impact employee wages, working conditions and benefits since employees would have the freedom to change jobs, seek higher wages and search for better working conditions and benefits.

New Laws Expand Pregnancy and Nursing Accommodations

Thu, 26 Jan 2023 18:42:54 GMT

Two new laws that were included in the federal omnibus spending bill , enacted on Dec. 29, 2022, expand workplace rights for employees affected by pregnancy, childbirth or related conditions starting in 2023.

FLSA Break Time and Private Pumping Space

Effective upon enactment, the Providing Urgent Maternal Protections for Nursing Mothers (PUMP) Act amends the Fair Labor Standards Act (FLSA) to require employers to provide break time and a private place, other than a bathroom, for all employees (including those who are exempt from FLSA overtime rules) to express breast milk. It also clarifies that these breaks must be paid work time if an employee is not completely relieved of all work duties during them. A hardship exemption is available for employers with fewer than 50 employees .

Effective April 27, 2023, the PUMP Act also allows individuals to obtain damages and other remedies from employers that violate the new mandates.

ADA Accommodations for Pregnancy

Effective June 27, 2023, the Pregnant Workers Fairness Act (PWFA) amends the Americans with Disabilities Act (ADA), which applies to employers with 15 or more employees . Under the PWFA, employers must provide reasonable accommodations to a qualified employee’s limitations related to pregnancy, childbirth or related medical conditions unless it would impose an undue hardship on the business.

The accommodations must be determined through an informal, interactive process, and employers may not deny opportunities based on the need to make them. The PWFA also prohibits employers from requiring leave if another change can be provided or retaliating against an employee for requesting or using a pregnancy-related accommodation.

Important Dates:

Dec. 29, 2022: Two new federal laws related to pregnancy, one of which requires break time and nursing space for all employees immediately, were enacted on this date.

April 27, 2023: As of this date, employers may be sued for damages and other remedies under the PUMP Act.

June 27, 2023: The PWFA’s extension of ADA accommodations to employees affected by pregnancy and related conditions goes into effect on this date.

IRS Announces 2023 Standard Mileage Rates

Thu, 26 Jan 2023 18:23:30 GMT

On Dec. 29, 2022, the IRS announced the 2023 optional standard mileage rates, which are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The 2023 standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

65.5 cents per mile driven for business use, up three cents from the midyear rate for the second half of 2022;
22 cents per mile driven for medical purposes or for moving purposes for qualified active duty members of the Armed Forces, unchanged from the midyear rate for the second half of 2022; and
14 cents per mile driven in service of charitable organizations. The rate is set by statute and remains unchanged from 2022.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Taxpayers can use the standard mileage rate but must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.

6 HR Trends to Monitor in 2023

Wed, 25 Jan 2023 21:19:44 GMT

Just as HR professionals quickly adapted to changes at the height of the pandemic, they must now adapt and respond to today’s evolving expectations of organizations and employees alike. As such, savvy HR leaders and professionals will approach 2023 with human-centric strategies that holistically support and benefit workers. Organizations will benefit from putting people first and listening to what their people need.

This article highlights six HR trends to follow in 2023.

1. Increased Wages and Raises

There are more open jobs than people to fill them, and inflation is impacting employees’ pay expectations. With a recession on the horizon, it remains to be seen exactly how wages and pay will increase. The labor market also continues to evolve. It’s still worker-friendly, but not as much as it was even months ago. However, salary budgets for American employees are projected to increase in 2023. According to a Willis Towers Watson report, companies are budgeting an overall average increase of 4.1% for 2023, compared with the average actual 4% increase in 2022. Keep in mind that these are the most significant increases since 2008. Nearly half (46%) of respondents said the top reason pay budgets are increasing next year is to address inflationary pressures and drive retention.

Raises are also in the spotlight as many workers change jobs or careers. According to an ADP report analyzing payroll data, workers who changed jobs got a median raise of 16.1%. Interestingly, according to the same report, that’s nearly double the median change (7.6%) in yearly pay for those who stayed in their jobs. Job hopping has proven to be a way employees can compete with increasing costs amid inflation and be better positioned to afford everyday life. To compete, organizations are finding ways to offer raises to match the pay increases of employees’ counterparts leaving for other, higher-paying opportunities.

2. Pay Transparency

Today and going into 2023, workers want to know what they’ll be paid before interviewing and that they’re being compensated fairly compared to their colleagues. Workers also want to clearly understand their career development potential, as many are interested in professional growth opportunities.

Some large states, most recently California, have passed pay transparency requirements. For example, some states require organizations to disclose salary in job postings, but others require it only upon request. Although conditions will vary, many municipalities and states are poised to join the growing nationwide pay transparency movement. As a result, many U.S. employers feel pressured to provide salary information even when they are not legally required to do so.

Pay transparency is rising on the list of employees’ demands, and employers should consider what changing requirements and employee desires for pay transparency mean. There are different ways employers can increase their pay transparency—and doing so may help improve attraction.

3. DEIB in Workplace Culture

Diversity, equity, inclusion and belonging (DEIB) is a growing initiative focused on eliminating discrimination, bias and harassment, while creating an inclusive workplace. According to a PwC survey, 75% of companies said they value and prioritize diversity. However, only 5% of companies meet high maturity levels for a successful DEIB program. This year, employers have an opportunity to pursue, enhance and make good on their DEIB initiatives.

While diversity, equity and inclusion have long been targeted efforts for employers, the concept of belonging is newer, as there’s a renewed focus and need. When workers feel like they belong at work, they are more productive, motivated and engaged. Add that all up and workers are more likely to contribute to their fullest potential. That’s a win-win for employers. With hybrid and remote workplaces becoming increasingly popular, additional employee experience layers must be considered among employers. Ultimately, employers can elevate employee experiences by creating workplaces where employees feel they belong.

4. Well-being Focus

Between the pandemic, inflation and job duties, more employees feel burnt out. As such, organizations are expected to take more responsibility for workers’ burnout and help employees on a personal level. More employers will be considering how to take a proactive approach to employee well-being and resilience. Benefits, perks and wellness programs will shift to being more holistic to account for mental, physical and financial well-being. To address burnout and other well-being challenges, many employers will offer or expand their employee assistance programs, behavioral health anti-stigma campaigns and training for recognizing employee and peer behavioral health issues. Employers are poised to offer the education and support that today’s workers need and are looking for.

5. Upskilling

Learning and developing efforts are on the rise, and many employers in 2023 will invest specifically in upskilling and reskilling. According to Gartner data, the number of skills required for a single job is increasing by 10% per year, and more than 30% of the skills needed three years ago will soon be irrelevant. It’s often less expensive to reskill a current employee than to hire a new one.

As employers go head-to-head in the competitive race for talent, upskilling or reskilling their current workforce could be a solution to finding workers for their in-demand roles. Upskilling is when employers provide employees the opportunity to learn new skills to better their current work performance while also prepping them for the projected needs of the company. When upskilling employees, employers invest not only in workers but also in the company’s longevity and development. Furthermore, organizations are prioritizing internal mobility more to address skills gaps and strengthen employee retention.

6. Skills-based Hiring

Regarding skills, employers may also focus their hiring efforts on looking for the right skills rather than experience or education. As labor challenges continue through 2023, employers may explore skills-based hiring to help them compete for talent. While specific qualifications may be valuable for some roles or industries, HR professionals may consider candidates based on desired skills rather than experience or education. With robust learning and development initiatives in place, employers can hire workers who are an excellent cultural fit and then train them on specific skills or tasks later. In the current worker-friendly market, many employers are having luck with taking a chance on candidates who are eager for a challenge and willing to learn on the job.

Summary

Employers can get ahead of the game by monitoring the trends that will impact the workplace and resonate with the current workforce. Many HR functions and employee expectations have significantly evolved amid the pandemic era. As such, there will still be ways to elevate and strengthen workplace strategies to be sustainable, supportive and attractive to today’s workers.

Final Forms and Instructions for ACA Reporting Are Now Available

Thu, 29 Dec 2022 19:09:59 GMT

The IRS has released final 2022 forms and instructions for reporting under Internal Revenue Code (Code) Sections 6055 and 6056.

2022 Forms 1094-B and 1095-B (and related instructions ) will be used by providers of minimum essential coverage (MEC), including self-insured plan sponsors that are not applicable large employers (ALEs), to report under Section 6055.
2022 Forms 1094-C and 1095-C (and related instructions ) will be used by ALEs to report under Section 6056, as well as for combined Section 6055 and 6056 reporting by ALEs who sponsor self-insured plans.

Updates to 2022 Forms and Instructions

The 2022 forms are essentially unchanged from the prior year. The instructions have been updated to include the permanent, 30-day automatic extension of time for furnishing statements to individuals under Sections 6055 and 6056. Due to this extension, individual statements for 2022 must be furnished by March 2, 2023. No changes have been made to the deadlines for filing forms with the IRS under Sections 6055 and 6056.

The instructions also describe the alternative method for furnishing statements to individuals under Section 6055. An employer using this method can satisfy its obligation to furnish statements to certain individuals by posting a notice on its website stating that individuals may receive a copy of their statement upon request and furnishing a statement to a requesting individual within 30 days of the date the request is received.

Action Steps

Employers should become familiar with these forms for reporting for the 2022 calendar year.

Important Dates:

Feb. 28, 2023: Paper IRS returns for 2022 must be filed by this date.
March 2, 2023: Individual statements for 2022 must be furnished by this date.
March 31, 2023: Electronic IRS returns for 2022 must be filed by this date.

Engaging Employees With an Organizational Mission

Thu, 29 Dec 2022 18:46:57 GMT

Organizations thrive through a sense of belonging and shared purpose. As employers navigate on-site, hybrid and remote work models, many may worry that those critical success factors could get lost in the workplace. Luckily, there are still ways for employers to promote their organizational mission with all employees, regardless of location. In times when employers may struggle to find and keep the workers they need, a strong and authentic organizational mission can help attract and retain top talent. Workers are more likely to be engaged and loyal to organizations with a mission they believe in and trust.

This article explores opportunities for employers to engage and unite their employees in both on-site and distributed workplaces.

A Mission Everyone Believes

According to Indeed.com, an organizational mission—or a mission statement—is a brief, broad statement about a company's goals and how it intends to meet them. It can address what the organization offers and how it hopes to serve its customers, community, employees, investors or other key stakeholders. Strong missions develop a human connection or an idea or behavior that employees can get behind and truly believe.

Cultural values are a way for the organization to achieve its mission. They define employee behavioral expectations and explain how leadership expects employees to work. Ultimately, everyone is working toward the same goal and demonstrating the values and behaviors aligned with and expected from the organization.

Connecting with Employees

It’s much easier to implement an employee engagement plan with a solid understanding of the organizational mission. Employers should consider the following tips to promote an organizational mission while keeping all employees engaged and firmly believing in the company:

Involve employees early. The sooner organizations get the mission in front of employees, the sooner employees see how their role impacts the mission. The organizational mission and other company information are critical components of the onboarding process. This step reinforces that employees’ work does matter.
Celebrate and communicate wins . Whether big or small, celebrating any organizational success that upholds the mission and delivers value to stakeholders not only reminds employees about how performance is measured, but demonstrates that those actions are important and truly make a difference.
Reward behaviors that support company goals. Recognizing and rewarding employees who contribute to the progress and achievement of company goals is crucial. For example, encourage employees to share insight about what the mission means to them and how they live it. This can help provide concrete examples for other employees and demonstrate that the organization truly believes in and strives for that behavior or mindset. Recognition in a public format ensures that all employees are aware of the star behavior, which now comes to life in the workday.
Foster belonging in the workplace. Many factors can contribute to employees’ sense of belonging in the workplace; however, a critical element revolves around whether employees are proud of their employer’s mission or purpose. When aligned with the mission, employees are often proud of their work and the organization.
Continue organizational traditions. Everything that once drove formal and informal culture in the physical workplace needs to be reformatted to ensure inclusivity and connection between the physical and virtual workforces. This includes team-building activities, wellness initiatives, milestone celebrations and companywide events that allow employees to preserve or strengthen social attachments.
Establish informal and formal engagement opportunities. Employers can encourage team leaders to create formal stand-up or check-in meetings to keep the team regularly connected. It’s equally important to support informal opportunities such as mentorship, walking meetings and coffee breaks. It’s all about encouraging and, to a certain extent, facilitating communication among employees.
Drive employees to an intranet or other shared platform. It’s critical that all employees have access to the latest company happenings. For example, a company intranet can become a one-stop destination for employees to get to know each other and communicate. When there’s a designated destination for all updates, all employees receive the same information at the same time, and there’s no advantage of being on-site or remote. Additionally, communication apps and channels can serve as engaging employee channels and provide a shared platform for employees to stay in touch.

Lastly, employers should be intentional about communication by ensuring there’s a communication plan in place or, at a minimum, establishing guidelines about how the organization communicates and how frequently. Communication formats and other employee preferences should be taken into consideration to make sure organizational information and updates resonate with and engage the entire workforce.

If working situations have changed, it may be helpful for employers to ask employees about current challenges and opportunities for living out company values, whether formally through a survey or informally during department meetings. A baseline survey can help organizations identify disparities between the company’s mission and values and how employees actually feel about the company and workplace, and ultimately address such issues.

Summary

In a distributed work environment, the in-person work culture typically dominates, which could isolate employees working remotely full- or part-time. That means it’s imperative for employers to prioritize employee engagement in workplace strategies. Contact us today for more information on distributed workplace strategy and management.

Eat Well, Live Well, Work Well

Thu, 29 Dec 2022 17:56:07 GMT

Replacing unhealthy eating habits with healthier ones can be difficult, especially if unhealthy habits are all you have ever known. One key to making lasting improvements in your diet is to make changes in stages. Start with a small, simple change and stick to it for a week. After mastering one change, add another.

Here Are Some Ideas to Get You Started:

Eat breakfast.
Replace one sugary drink per day with a glass of water.
Eat one to two more fruits or vegetables each day.
Plan a healthy snack for each day of the week.
Switch to a low-fat version of one of your favorite foods.
Plan three meals and two snacks every day.
Plan as many home-cooked meals as you can, as they usually have fewer calories, more reasonable portions and cost less than typical meals eaten at restaurants.

Set an Example

Parents play a big role in guiding their children’s eating habits with the examples they set, the foods they make available in the home and the mealtime experiences that they create for their families.

Offer healthy snacks such as fruit, low-fat cottage cheese or yogurt, frozen juice bars, applesauce, celery, apples with peanut butter, raw vegetables, graham crackers, fig bars or whole wheat crackers with low-fat cheese. Large portions contain too many calories.

A good-sized snack for a typical adult may be a single-serving container of yogurt, but for a preschooler, two or three tablespoons of yogurt is enough.

Make Eating Fun for the Whole Family

Family meals can be a time to monitor what children are eating and to reconnect with each other. Involve children in food preparation and clean up, and sit down with them when they eat. The idea is to build healthy lifelong eating habits.

Some healthy eating tips include the following:

Eat plenty of fruit and vegetables—half your plate at each meal should be vegetables or fruit.
Beware of sweetened drinks—sodas and sports drinks are high in calories. Keep in mind that the calories in juice can also quickly add up.
Choose food sensibly when eating out. Restaurants are often required to make nutrition information readily available—if you do not see brochures sitting out, or nutrition information listed on the menu, ask.

Healthy Food Tips When Eating Out

Ask if you do not know what is in a dish or the serving size.
Eat the same portion size you would at home.
Ask for sauces, gravy and dressings on the side—or avoid them altogether.
Order foods that are not breaded or fried.
Order fruit for dessert.
Ask for substitutions, such as a vegetable instead of fries.
Ask for low-calorie versions of food. Vinegar, oil or a squeeze of lemon are all better than high-fat dressings or sauces.

Submission Grace Period Issued for Prescription Drug Reporting

Wed, 28 Dec 2022 18:49:57 GMT

The transparency provisions of the No Surprises Act require group health plans and health insurance issuers to report information on prescription drugs and health care spending to the Departments of Labor, Health and Human Services and the Treasury (Departments). This reporting process is referred to as the “ prescription drug data collection ” (or “RxDC report”), and it must be submitted by Dec. 27, 2022.

Submission Grace Period

On Dec. 23, 2022, the Departments released an FAQ stating that, for the 2020 and 2021 data submissions due by Dec. 27, 2022, they will not take enforcement action with respect to any plan or issuer that uses a good faith, reasonable interpretation of the regulations and the RxDC reporting instructions in making its submission.

The Departments are also providing a submission grace period through Jan. 31, 2023, and will not consider a plan or issuer to be out of compliance with these requirements provided that a good faith submission of 2020 and 2021 data is made on or before that date.

In addition, to facilitate the submission process, the Departments are providing clarifications and flexibilities with respect to reporting requirements for this data (e.g., allowing multiple submissions by the same reporting entity, email submission of certain data for certain plans and optional reporting for certain data), which are outlined in the FAQ.

Employer Compliance Steps

Most employers will rely on their carriers, TPAs or other third parties to report prescription drug costs by the deadline. Employers should update their written agreements with these parties to reflect that responsibility and confirm they will timely submit the reports.

Submission Deadlines:

Dec. 27, 2022 - The RxDC report was initially required to be submitted by Dec. 27, 2021, and by June 1 of each year thereafter. However, in interim final rules , the Departments deferred enforcement of these deadlines to Dec. 27, 2022.
Jan. 31, 2023 - The Departments will not initiate enforcement action against a plan or issuer that makes a good faith effort to submit the required information by this date.

Speak Out Act Signed Into Law

Wed, 28 Dec 2022 18:34:55 GMT

Aiming to improve transparency around illegal conduct in the workplace, the U.S. Congress has enacted a new law, the Speak Out Act , that renders certain nondisclosure and nondisparagement agreements unenforceable. President Joe Biden signed the Speak Out Act into law on Dec. 7, 2022.

Contract Enforcement Prohibition

In general, the Speak Out Act prohibits courts from enforcing any contract that prevents an individual from talking about workplace sexual harassment or assault during a dispute that arose after the contract was made.

In other words, the new law makes it impossible for employers to use prior agreements to stop individuals from raising or disclosing information about a current or future sexual harassment or assault claim.

Affected Contracts

The Speak Out Act applies to:

Any contract between an employer and an applicant, employee, former employee or independent contractor; and
All contracts made between consumers and providers of goods and services.

Employer Impact

Employers should keep in mind that the new law only applies to agreements made “before the dispute arises.” Thus, it does not affect an employer’s ability to enforce nondisclosure or nondisparagement provisions contained in agreements made to settle a dispute.

However, employers should be aware that state or local laws may limit their ability to include these provisions in a post-dispute contract.

Important Information

Pre-dispute Agreements

Employers facing sexual harassment or assault claims may not rely on prior nondisclosure or nondisparagement agreements to silence employees about that conduct.

Post-dispute Agreements

The Speak Out Act does not affect nondisparagement or nondisclosure provisions in agreements that are entered into after the dispute arose.

IRS Finalizes Deadline Extension for Furnishing ACA Statements

Wed, 28 Dec 2022 16:46:32 GMT

Important Dates:

30 Days From January 31: Individual statements are due 30 days after Jan. 31 of the year following the calendar year to which the statement relates.
February 28: Annual deadline for filing with the IRS on paper.
March 31: Annual deadline for filing with the IRS electronically.

This article pertains to employers over 50 employees.

On Dec. 12, 2022, the IRS released a final rule that extends the annual furnishing deadlines for Sections 6055 and 6056 reporting under the Affordable Care Act (ACA). This rule finalizes guidance that was proposed by the IRS in December 2021 with minor clarifications. Specifically, the rule:

Finalizes the 30-day automatic extension to the due date for furnishing statements to individuals under Sections 6055 and 6056; and
Confirms the availability of an alternate method for furnishing statements to individuals under Section 6055 for every year in which the individual mandate penalty is zero. Under this relief, employers generally will only have to provide Form 1095-B to covered individuals upon request.

The final rule also provides that minimum essential coverage (MEC) does not include Medicaid coverage that is limited to COVID-19 testing and diagnostic services provided under the Families First Coronavirus Response Act (FFCRA).

The due date for filing forms with the IRS under Sections 6055 and 6056 remains unchanged. This means that forms must generally be filed with the IRS by Feb. 28 of the year following the calendar year to which the statement relates (or March 31, if filing electronically).

Action Steps:

The final rule does not provide any new relief for employers because they were permitted to rely on the IRS’ proposed guidance beginning with the 2021 calendar year. Due to the 30-day automatic extension, employers subject to ACA reporting must furnish statements for the 2022 calendar year by March 2, 2023. Also, because the individual mandate penalty is zero, employers with self-insured plans that are subject to reporting under Section 6055 may use the alternate method of furnishing statements to individuals.

Year-end HR Activities

Fri, 25 Nov 2022 15:24:01 GMT

The last months of the year are a great time for HR professionals to ensure they’re prepared for everything that needs to be done. It’s also an opportunity to evaluate which HR processes organizations want to take forward into the new year and which to leave behind. While certain HR compliance activities must be completed by the end of the year, HR professionals can also use this time of preparation to focus on tasks that will set their organizations on the right course for next year.

This article provides an overview of general, compliance-related, and employee compensation and benefits activities HR may need to tackle at the end of each year. The activities outlined in this article are not exhaustive. Because an organization’s failure to comply with certain year-end requirements can result in significant legal and financial consequences, employers are encouraged to seek legal counsel to discuss any specific issues.

General Activities

The end of the year is usually a busy time for HR professionals. They must accomplish a lot in a relatively short time period to close out the year and prepare for the upcoming one. These tasks may include:

Completing annual performance reviews
Asking employees to update their personal and contact information
Backing up HR data and personnel files
Establishing an annual budget and allocating resources
Reviewing recruiting and hiring processes
Creating plans for new hires

HR can also create and update succession plans and job descriptions.

The following tasks are general activities HR professionals should consider completing at the end of the year.

HR Metrics Development

The year’s end is an opportunity to review the year, analyzing what went well and where improvements can be made. This provides HR a chance to develop meaningful metrics for the upcoming year. These metrics may measure:

Employee engagement and satisfaction
Employee productivity
Turnover rate, including new hire turnover
HR growth compared to revenue
Average time to fill open positions
Offer acceptance rate
Promotion rate
Time to hire
HR-to-employee ratio

By aligning HR metrics to long-term organizational goals, HR can positively impact an organization’s growth and facilitate strategic decision-making.

Remote Work -Mental Health Tips & Improve Productivity

Fri, 25 Nov 2022 15:00:36 GMT

3 Mental Health Tips for Remote Employees

When working remotely, the line between work and home can easily become blurred, which can negatively impact mental health. Workers may experience isolation, loneliness and difficulty getting away from work at the end of the day. Poor mental health can impact work performance and lead to chronic stress and lack of sleep. As such, prioritizing your mental health is essential to decreasing workplace stress and increasing your satisfaction at both work and home.

Remote work has affected how connected employees feel to their colleagues. A OnePoll study revealed:

7 in 10 remote workers feel more isolated than when they worked in the office.
63% of remote workers feel less engaged with their teams.

Also, nearly one-quarter of remote workers never leave their homes during a typical workday, based on findings from Upright Pose.

All of those points could negatively impact your mental health. To improve your overall happiness, try these three strategies to maintain your mental well-being when working remotely:

Prioritize your physical health. Walking for at least 30 minutes daily can help boost your mood and improve your physical and mental health. For example, consider stretching, practicing yoga or using an at-home bike. Further, eating healthy and getting enough quality sleep are also key to maintaining good health. When your body is properly fueled and rested, your mental health also benefits.
Maintain boundaries. Having a designated work space and changing into work clothes when you start the day can help to further separate your work and home lives. Create a routine for your workday and stick to it to help transition in and out of work.
Connect with others. Intentionally interacting with friends and family is important to ensure you are receiving adequate emotional support. Make time to connect with others throughout the week, whether in person or virtually.

Although you may not work in a physical workplace, remember that you’re not alone. If you have concerns about your mental health, follow up with your manager for mental health resources and services.

How Deep Work Can Help Improve Your Productivity

“Deep work” is a trendy buzzword swirling around the productivity conversation. But what is it? Deep work is someone’s ability to work in a state of peak concentration and focus for an extended period of time without interruption. Fortunately, remote work is ideally positioned for deep work.

Cal Newport, a computer science professor at Georgetown University, coined the term and suggests that one could stop using all forms of communication for 60 to 90 minutes per day to achieve peak productivity.

Deep work differs from shallow work, which includes standard day-to-day tasks such as sending emails, planning meetings and using social media. While some shallow work is necessary, it often leads to people spending much of their day switching tasks and ultimately reduces their ability to perform as effectively as possible.

The advantages of deep work are numerous, but a major one is enhanced productivity. That’s because deep work can help decrease errors and increase your attention span and creativity—boosting your overall job performance.

Like many remote work strategies, deep work requires a conscious effort, and if you don’t create habits to reinforce it, you are unlikely to succeed. To be successful, you need to plan out deep working time, remove potential distractions from your working space and stay disciplined in adhering to your plan. Consider the following tips as you experiment with incorporating deep work into your remote routine:

Eliminate distractions. If possible, close your email and other lines of communication to ensure you can focus on the task at hand. In order to succeed, try to find a place with minimal distractions. This may be tougher at home or in co-working spaces, but do your best to find a focus-friendly environment.
Construct a plan. Create a prioritized list of things you need to do to help you stay on track. Rank the items you must complete from high to low priority and set aside time for each task so you are more likely to complete what you need to.
Time block your sessions. Impose a time limit for each task you work on. Knowing you only have a set amount of time to complete a given task puts you under pressure to concentrate and you are likely to get more done. This can help you better understand how your work time is being spent.
Measure your deep work. Explore leveraging automatic tools to track the time you spend doing deep work. This will allow you to compare your deep work to your shallow work and better track your productivity habits.

Our brains are drawn to instant gratification, so just get started. If you’re struggling to begin a challenging project or have been putting something off, just start it, and you may be surprised how much easier it is to get into your deep work flow.

Every organization and role are different, so consider how deep work could help you improve your remote productivity. You could also discuss with your manager how to best block time for deep work or incorporate other deep work practices.

Prescription Drug Reporting Due by Dec. 27, 2022

Fri, 25 Nov 2022 14:06:30 GMT

A new transparency provision requires employer-sponsored health plans and health insurance issuers to annually report information about prescription drugs and health care spending to the federal government. This reporting process is referred to as the “ prescription drug data collection ” (or “RxDC report”).

The first RxDC report is due by Dec. 27, 2022, and covers data for 2020 and 2021. Going forward, the annual deadline for the RxDC report is June 1. This means that the second RxDC report is due by June 1, 2023, covering data for 2022.

Impact on Employers

The RxDC reporting requirement applies to employer-sponsored group health plans, including fully insured and self-funded plans. According to interim final rules , employers may use issuers, third-party administrators (TPAs), pharmacy benefit managers (PBMs) or other third parties to submit the RxDC reports on their behalf.

Federal agencies have stated that, although employers can submit the RxDC reports on their own, they expect it will be rare for employers to do so.

Action Steps

Employers should reach out to their issuers, TPAs or PBMs, as applicable, to confirm that they will submit the RxDC reports for their health plans. Employers should also update their written agreements with these third parties to reflect this reporting responsibility.

In addition, employers with self-funded plans should monitor their TPA’s or PBM’s compliance with the RxDC reporting. Unlike fully insured plans, the legal responsibility for RxDC reporting stays with a self-insured plan even if its TPA or PBM agrees to provide the report on its behalf.

Employee Benefit Plan Limits Increase for 2023

Many employee benefits are subject to annual dollar limits that are updated for inflation before the beginning of each calendar year. Due to high inflation rates, many employee benefit plan limits will substantially increase in 2023. Note that some benefit limits are not indexed for inflation, such as the dependent care FSA limit and the catch-up contribution limit for HSAs.

For plan years beginning on or after Jan. 1, 2023, the following limits have increased:

HSA contribution limits:
Single coverage—$3,850 (up $200 from 2022)
Family coverage—$7,750 (up $450 from 2022)· Health FSA contribution limit—$3,050 (up $200 from 2022)
Health FSA carryover limit—$610 (up $40 from 2022)
Transportation fringe benefit plan monthly limits—$300 (up $20 from 2022)
Employees’ 401(k) elective deferral limit—$22,500 (up $2,000 from 2022)
Employees’ 401(k) catch-up contribution limit—$7,500 (up $1,000 from 2022)

Health Plans Must Provide Price Comparison Tool for 2023

Wed, 23 Nov 2022 16:30:45 GMT

Beginning in 2023, group health plans and health insurance issuers must make an internet-based price comparison tool available to participants, beneficiaries and enrollees. The purpose of this tool is to provide consumers with real-time estimates of their cost-sharing liability from different providers for covered items and services, including prescription drugs, so they can shop and compare prices before receiving care. Upon request, plans and issuers also must provide this information in paper form or over the telephone.

Compliance Deadlines

For plan years beginning on or after Jan. 1, 2023, plans and issuers must make price comparison information available for 500 shoppable items, services and drugs. For plan years beginning on or after Jan. 1, 2024, price comparison information must be available for all covered items, services and drugs.

Action Steps

Most employers will rely on their issuers or third-party administrators (TPAs) to develop and maintain the price comparison tool and provide related disclosures on paper or over the phone upon request.

Fully insured plans —Employers with fully insured health plans should confirm that their issuer will comply with the price comparison tool requirements beginning with 2023 plan years and ensure this compliance responsibility is reflected in a written agreement.
Self-insured plans —Employers with self-insured plans should reach out to their TPAs (or other service providers) to confirm they will be in compliance by the deadline and update agreements to reflect this responsibility. In addition, employers should monitor their TPAs’ compliance with this requirement. Unlike fully insured plans, the legal responsibility for this tool stays with a self-insured plan even if its TPA agrees to provide the price comparison tool on its behalf.

Deadlines and Resources

Plan Years Beginning in 2023

Price comparison tool must provide cost-sharing information for 500 items and services.

Plan Years Beginning in 2024

Price comparison tool must provide cost-sharing information for all covered items and services.

Resources

More information, including the list of 500 items and services, is available through the Centers for Medicare and Medicaid Services .

Coping with Financial Crises

Wed, 23 Nov 2022 15:43:21 GMT

Life has a way of throwing unexpected financial roadblocks, detours and potholes in our path. These might be large medical bills, car or home repairs, a death in the family, loss of a job or expensive legal situations. Such financial emergencies can derail your efforts to save for retirement. The following are some strategies for managing financial crises.

Establish an Emergency Fund

This can lessen the need to dip into retirement savings for a financial emergency. Building an emergency fund is tough if income is tight, but every dollar can help. Fund an emergency fund with pay from extra working hours or a temporary job, a tax refund or a raise. Put the money into a low-risk, accessible account such as a savings account or money market fund.

Insure Yourself

Insurance protects your financial assets, such as your retirement funds, by helping to take care of the really big financial disasters. Consider the following list of insurance coverage to help protect your assets.

HEALTH. If you and your family aren’t covered under an employer’s policy, try to buy catastrophic medical coverage on your own.
DISABILITY. Social Security Disability Insurance can pay yours and your family’s benefits if you are severely disabled and are expected to be so for at least 12 months. Workers’ compensation only helps you if the disability is work-related. In addition, your employer may offer some disability coverage, but you may need to supplement it with private coverage.
RENTERS. Homeowners usually are insured against hazards such as fire, theft and liability, but the majority of renters aren’t. Renter’s insurance is inexpensive.
AUTOMOBILE. Don’t drive “bare.” In many states it is against the law to drive without auto coverage, and it is also very costly if you are in an accident.
UMBRELLA. This provides additional liability coverage, usually through your home or auto insurance policies, in the event you face a lawsuit.
LIFE. Having life insurance can help you or your spouse continue to save if either one of you dies before retirement. Social Security may be able to pay benefits to your spouse and/or minor children. On the other hand, you may not need life insurance if no one depends financially on you. There are many types of life insurance, with a variety of fees and commissions attached.
LONG-TERM CARE. This insurance can help pay for costly long-term health care either at home or in a health care facility or nursing home. It protects you from draining savings and assets you could use for retirement.

Borrow

If you must borrow because of a financial emergency, carefully compare the costs of all options available to you.

Sell Investments

It’s usually advisable to sell taxable investments first. Try not to touch your faster growing retirement accounts. Taking money out of your retirement accounts could trigger income taxes and penalties.

Article adapted from the U.S. Department of Labor publication of the same title. www.dol.gov/sites/default/files/ebsa/about-ebsa/our-activities/resource-center/publications/savings-fitness.pdf

Payroll Year-End Checklist 2022

Wed, 23 Nov 2022 15:19:56 GMT

As the new year soon approaches, now is a good time to start preparing for your payroll year-end. Below is a list of things you can do to help prepare yourself but is by no means a comprehensive list of all steps that should be taken.

1. Check Employee and Employer Level Data

Many payroll providers create “Preview W-2s” that can be reviewed to check the items below for accuracy. Correcting any mistakes now can save time and money in the future, including costs associated with having to amend returns.

Confirm the company name, address, and FEIN
Confirm that employee names and Social Security numbers are correct and in the correct format. The IRS can impose penalties for each form W-2 that has incorrect data in regards to employee name and social security number.
Check the accuracy of the check box indicator in box 13 of Form W-2 for each employee. Many times this check box set up in the payroll system is set up as a “company default,” so make sure individual employees who do not match the company default are coded properly.
Ensure that deceased employees are properly coded.

2. Check Wage, Tax and Benefits Data

Schedule any additional year-end payrolls that might need to be run. This could be for things like a year-end bonus run or making adjustments for year-end fringe benefit reporting. Be mindful that many fringe benefits require tax withholding, so running those items through a normal payroll where employees will have pay to take the taxes from may be better, otherwise the company may end up paying the tax burden on behalf of the employee, which then would require a “gross-up”. Some typical year-end fringe benefits that get reported are:

*Group Term Life Insurance in excess of $50k
*S-Corp 2% owner health benefits
*Personal Use of company car
*Company-provided transportation or parking

Be sure to report any 3PSP (Third Party Sick Pay)/disability payments received by employees during the year to be included on their W-2.
Verify employer state ID numbers, rates and taxable wage bases for each state.
Prepare to update benefit deductions if open enrollment for those deductions is effective for the start of the next year. Check to see if there are any annual goal amounts that need to be updated or reset.
Confirm that all manual checks written during the year have been recorded in the payroll system.
Confirm that all voided or reversed checks written during the year have been recorded appropriately in the payroll system.
Confirm there are no employees with negative Quarter to Date or Year to Date wages or pre-tax deduction amounts.
Remind employees to fill out new Form W-4 or State Withholding forms if they want to change their tax withholdings for the next year.

Starting to check and plan for these things now can definitely save on headaches, time, and possibly costs as year-end gets closer. SimcoHR is more than happy to help with any questions you may have in regards to these items!

Why Your Business Needs an EAP

Wed, 23 Nov 2022 05:07:11 GMT

Employee Assistance Programs (EAP) are increasing in popularity, and can be an important tool for your business. Simco has an EAP available to offer your employees.

Employee productivity is a crucial component to the success of any business. These days, we’ve watched employees become overwhelmed by personal or behavioral problems which inhibit them to perform at their best. An increase in stress can lead to higher health risks and expensive insurance claims. Likewise, psychological problems, substance abuse, financial stress and more can all lead to lower productivity and focus at work, increased absenteeism, and higher health care costs. An EAP can address these issues and help employees tend to their personal needs, resulting in you having healthier, happier and a more productive team.

What is an EAP?

EAPs traditionally have assisted workers with issues like alcohol or substance abuse; however, most now cover a broad range of issues such as child or elder care, relationship challenges, financial or legal problems, wellness matters and traumatic events like workplace violence. An EAP is an employer-sponsored program that offers services or referrals to help employees deal with a variety of personal issues. All EAP’s are different, but common issues addressed are:

Alcohol or substance abuse
Divorce or marital problems
Stress
Crisis intervention
Childcare or eldercare
Eating disorders
Gambling addiction
Psychological or psychiatric challenges
Financial or legal issues
Consultation services and training for managers regarding employee performance

Why Offer an EAP?

When employees are distracted by stressful personal situations, they can’t focus on work, and you’ll likely see them call in absent more. Thus, their health may suffer and produce higher medical costs. Of course, no employer wants these circumstances, but it is costly to recruit and train a replacement for the struggling employee, especially if that individual has the potential to once again be a great asset to the company.

A better solution is to offer your employees confidential assistance in handling their personal issues. EAP’s help improve their situations and get them back on track to being a productive employee for the company. EAP’s can also help attract and retain great employees, lower health care and disability claims costs, increase productivity and morale, and lower absenteeism.

Government contractors or employers receiving federal grants are required to maintain a drug-free workplace. An EAP can be a part of fulfilling that requirement by offering a drug-free component inclusive of education, awareness, testing, and counseling.

Tell Your Employees About It

Once you have an EAP set up, you should distribute a policy statement to your employees. This should communicate the services offered, how to get those services, an assurance that the program won’t endanger their jobs or reputations, a guarantee of confidentiality and any exceptions to the confidentiality agreement and that the EAP services are usually made available not only to the employee but also to the employee's spouse, children and non-marital partner living in the same household as the employee.

Ready to offer your employees an EAP?

Reach out to us at Simco , we have an EAP not just for our employees, but for your employees too! Our Sim "Co-Pilot" flyer is available to view here !

IRS Finalizes Change to Family Coverage Affordability Rules

Wed, 26 Oct 2022 17:50:42 GMT

On Oct. 11, 2022, the IRS released a final rule that changes the eligibility rules for the premium tax credit (PTC). The PTC is available to eligible individuals who purchase health insurance coverage through the Exchange. Individuals are not eligible for the PTC if they have access to employer-sponsored health coverage that is affordable and provides minimum value.

PTC Eligibility Change

Effective for 2023, the final rule changes the PTC rules for determining whether employer-sponsored coverage is affordable for family members. Currently, whether employer-sponsored coverage is considered affordable for family members is determined based on the lowest-cost self-only coverage available to the employee. The cost of family coverage is not taken into account under the current rules.

Under the final rule, an employer-sponsored plan is affordable for family members if the portion of the annual premium the employee must pay for family coverage (the employee’s required contribution) does not exceed 9.5% (as adjusted annually) of household income. An employee’s required contribution for family coverage is the portion of the annual premium the employee must pay for coverage of the employee and all other individuals included in the employee’s family. The final rule also adds a minimum value rule for family members based on the benefits provided to the family members.

Impact of the Final Rule

Effective for 2023, more family members will likely be eligible for the PTC for coverage purchased through the Exchange. However, the final rule does not change the affordability rules for employees. Employees will continue to have an offer of affordable employer coverage if the employee’s required contribution for self-only coverage does not exceed 9.5% (as adjusted) of household income. Therefore, an employee’s family member may have an offer of employer coverage that is unaffordable even though the employee has an affordable offer of self-only coverage.

Health FSA Limit Will Increase for 2023

Wed, 26 Oct 2022 17:45:50 GMT

On Oct. 18, 2022, the IRS released Revenue Procedure 2022-38 (Rev. Proc. 22-38), which includes the inflation-adjusted limit for 2023 on employee salary reduction contributions to health flexible spending accounts (FSAs). The Affordable Care Act (ACA) imposes a dollar limit on employees’ salary reduction contributions to health FSAs. This dollar limit is indexed for cost-of-living adjustments and often increases from year-to-year.

For plan years beginning in 2023, the ACA’s adjusted dollar limit on employees’ salary reduction contributions to health FSAs increases to $3,050. This is a $200 increase from the 2022 health FSA limit of $2,850. Rev. Proc. 22-38 also increases the maximum carryover limit for a health FSA to $610 for 2023 (from $570 for 2022).

Employers should ensure that their health FSAs will not allow employees to make pre-tax contributions in excess of $3,050 for the 2023 plan year and communicate the 2023 limit to their employees as part of the open enrollment process.

Employer Limits

An employer may continue to impose its own dollar limit on employees’ salary reduction contributions to health FSAs as long as the employer’s limit does not exceed the ACA’s maximum limit in effect for the plan year. For example, an employer may decide to limit employee health FSA contributions for the 2023 plan year to $2,500.

Per Employee Limit

The health FSA limit applies on an employee-by-employee basis. Each employee may only elect up to $3,050 in salary reductions in 2023, regardless of whether he or she has family members who benefit from the funds in that FSA. However, each family member who is eligible to participate in his or her own health FSA will have a separate limit. For example, a husband and wife who have their own health FSAs can both make salary reductions of up to $3,050 per year, subject to any lower employer limits.

Final Forms for 2022 ACA Reporting Released

Wed, 26 Oct 2022 17:42:21 GMT

The IRS released the final 2022 forms for reporting under Internal Revenue Code (Code) Sections 6055 and 6056.

2022 Forms 1094-B and 1095-B are the forms that will be used by providers of minimum essential coverage (MEC), including self-insured plan sponsors that are not applicable large employers (ALEs), to report under Section 6055.
2022 Forms 1094-C and 1095-C are the forms that will be used by ALEs to report under Section 6056, as well as for combined Section 6055 and 6056 reporting by ALEs who sponsor self-insured plans.

The IRS revised Form 1095-B to remove references to the individual mandate penalty in the “Instructions for Recipients” section. No other substantive changes were made to the final forms for 2022 reporting. Final instructions have not been released yet. However, draft instructions (for Forms 1094-B and 1095-B , as well as for Forms 1094-C and 1095-C ) are available, which include updated penalty maximums for 2022.

Furnishing Deadline Extension

A proposed rule issued in late 2021 extended the annual furnishing deadlines under Sections 6055 and 6056 for an additional 30 days. Reporting entities may rely on this proposed rule even though it has not been finalized. Due to this extension, individual statements for 2022 must be furnished by March 2, 2023. Reporting entities are encouraged to furnish statements to individuals as soon as they are able.

Action Steps

Employers should become familiar with these forms for reporting for the 2022 calendar year. Note that additional information regarding these forms may become available once final instructions are released.

Important Dates

Feb. 28, 2023

Paper IRS returns for 2022 must be filed by this date.

March 2, 2023

Individual statements for 2022 must be furnished by this date.

March 31, 2023

Electronic IRS returns for 2022 must be filed by this date.

Biden Announces Launch of Student Loan Forgiveness Application

Tue, 25 Oct 2022 17:03:35 GMT

On Oct. 17, 2022, President Joe Biden announced the official launch of the student loan forgiveness application. Qualifying individuals can now apply for up to $20,000 in debt relief on the U.S. Department of Education’s (DOE) website . The form is available in English and Spanish and provides information about the Biden administration’s debt relief program, who qualifies and how the program works. The application will remain open until Dec. 31, 2023.

The student loan forgiveness application is simple and can be completed in a few minutes. The application requires borrowers to provide the following information:

Full name
Date of birth
Social Security number
Phone number
Email address
Attestation confirming the individual meets the program’s income requirements

The DOE recommends individuals apply before mid-November to ensure they receive debt relief before federal student loan payments resume in January 2023. While the Biden administration has not provided an exact timeline on when borrowers will receive the debt relief after applying, it has stated that most qualifying borrowers are expected to receive debt relief within weeks. Borrowers who need to take additional steps, such as providing income verification, will be contacted by the DOE or their loan servicer.

The DOE recently launched a beta version of the application, and over 8 million individuals applied for debt relief during the test period. Borrowers who applied for debt relief during the beta period do not need to reapply.

What’s Next?

The Biden administration faces multiple lawsuits challenging the student debt relief plan. These lawsuits argue that the student debt relief plan is unconstitutional and would harm state revenue. Due to legal challenges, the timing of any debt relief may be uncertain.

Concerned borrowers can contact their loan servicer to confirm whether they qualify for student debt relief or review the DOE’s recently published FAQ . Borrowers are also encouraged to visit the DOE’s website and sign up to receive email and text updates for the latest information.

Qualified Transportation Fringe Benefit Limits to Increase in 2023

Tue, 25 Oct 2022 16:59:06 GMT

The IRS has released Revenue Procedure 2022-38 , which includes cost-of-living adjustments for employee qualified transportation fringe benefits for the 2023 taxable year, along with annually adjusted numbers for 2023 for other tax provisions. The combined monthly limit for transportation in a commuter highway vehicle and a transit pass will increase to $300 in 2023, up from the 2022 limit of $280. The monthly limit in 2023 for qualified parking will also increase to $300 from $280.

Qualified Transportation Fringe Benefits

Internal Revenue Code Section 132(f) allows employers to offer qualified transportation benefit programs to their employees on a tax-free basis. Under these programs, employees may have money withheld from their taxable compensation to pay or reimburse work-related expenses for qualified parking, transit passes and transportation in certain commuter highway vehicles (e.g., qualifying van pools). Employers may also provide these benefits tax-free to employees.

Section 132(f) establishes a maximum monthly amount of qualified transportation benefits employees may exclude from their income, subject to cost-of-living adjustments announced by the IRS before the beginning of each calendar year. Both employee pre-tax salary deferrals and employer-paid benefits, if any, count toward the maximum amount.

Tax Deduction for Employers

Beginning in 2018, the Tax Cuts and Jobs Act of 2017 eliminated the employer tax deduction for qualified transportation benefits. The employer deduction is disallowed regardless of whether the benefits are paid directly by the employer, through a bona fide reimbursement arrangement or through a compensation reduction agreement.

EEOC Updates Workplace Poster

Tue, 25 Oct 2022 16:10:04 GMT

On Oct. 19, 2022, the Equal Employment Opportunity Commission (EEOC) issued a new poster titled “Know Your Rights,” which updates and replaces the previous “EEO is the Law” poster. Under the Title VII of the Civil Rights Act (Title VII), the Americans with Disabilities Act (ADA) and other laws enforced by the EEOC, employers with 15 or more employees must prominently display the new poster at their work sites.

Posters:

Background

Laws enforced by the EEOC generally prohibit employment discrimination based on certain protected traits, including race, color, religion, national origin, sex, disability and age. These laws also require employers to display a workplace poster that describes their prohibitions and requirements.

Updates in New Poster

The new “Know Your Rights” poster includes the following differences from the previous version:

Uses more straightforward language and formatting;
Notes that harassment is a prohibited form of discrimination;
Clarifies that sex discrimination includes discrimination based on pregnancy and related conditions, sexual orientation or gender identity;
Adds a QR code for applicants or employees to link directly to instructions on how to file a charge of workplace discrimination with the EEOC; and
Provides information about equal pay laws for federal contractors.

Poster Display Requirements

Employers must place the new poster in a conspicuous location in the workplace where notices to applicants and employees are customarily posted. The EEOC also encourages employers to post the notice on their websites. In most cases, electronic posting should be in addition to a physical posting. However, an electronic poster may be the only one if there is no physical workplace, if employees work from home and in similar situations.

2023 State Minimum Wage Rates

Tue, 25 Oct 2022 16:05:42 GMT

The current federal minimum wage rate is $7.25 per hour. However, several states have adopted minimum wage rates higher than the federal rate. When both the state rate and the federal rate apply, employers must pay their employees the higher rate. The following states have announced new minimum wage rates for 2023:

Arizona
California
Colorado
Connecticut
Delaware
Florida
Illinois
Maryland
Massachusetts
Michigan
Minnesota
Missouri
Montana
Nevada
New Jersey
New Mexico
New York
Ohio
Rhode Island
South Dakota
Virginia
Washington

Important Dates:

Dec. 31, 2022: The minimum wage rate outside of New York City, Long Island and Westchester increases to $14.20 per hour
Jan. 1, 2023: New minimum wage rates for 17 states
Feb. 19, 2023: New minimum wage rate for Michigan, unless the court decision is overruled
June 1, 2023: New minimum wage rate in Connecticut
July 1, 2023: New minimum wage rate in Nevada
Sept. 30, 2023: New minimum wage rate in Florida

Links and Resources:

U.S. Department of Labor table of minimum wage by state
U.S. Department of Labor federal minimum wage page

Minimum Wage Rate by State

The table below provides a high-level summary of minimum wage rates by state and important provisions that regulate how these rates apply.

Family and Medical Leave in New York (NY)

Wed, 28 Sep 2022 17:22:14 GMT

All New York State employers must provide eligible employees with job-protected paid family leave (PFL). The

following explains the law and its requirements in detail.

Who pays for PFL?

While employers must purchase a PFL insurance policy, policy premiums are paid by employees. For 2022, employers may deduct 0.511% of the weekly wage, up to an annual cap of $423.71. For 2023, the rate is decreased to 0.455% of the weekly wage, and the annual cap is decreased to $399.43.

Which employees are eligible for PFL?

Employees regularly working 20 or more hours per week become eligible after having worked 26 or more consecutive weeks.
Employees that regularly work fewer than 20 hours per week become eligible after the 175th day worked.

Which Life Events Qualify for PFL?

Providing care for a child/stepchild (and anyone for whom the employee has legal custody), spouse, parent, stepparent, parent-inlaw, grandparent, grandchild, (sibling, effective Jan. 1, 2023) or domestic partner with a serious health condition;
Birth, adoption, or fostering a child;
A spouse, domestic partner, child, or parent being on or notified of impending active military duty; or
Certain coronavirus (COVID-19)-related reasons.

How Long Can an Employee Be Out on PFL?

Eligible employees are entitled to up to 12 weeks of PFL in any 52-week period at 67% of their average weekly wage, capped at 67% of the state average weekly wage. In 2022, the weekly benefit cap is $1,068.36; in 2023 it is $1,131.08.

Must Employees Provide Notice When Using PFL?

Yes. An employee generally must provide at least 30 days' advance notice before leave is to begin if the qualifying event is foreseeable. When the approximate timing of the qualifying event and need for leave is not foreseeable, an employee must provide notice as soon as practicable.

Must an Employer Maintain an Employee's Health Benefits While he or she is out on PFL?

Yes, and employees must continue paying premiums as they did before taking PFL.

Is an Employee Entitled to Return to his or her Position Upon Return from PFL?

Yes, an employee is entitled to be restored to the position of employment he or she held when the leave commenced, or to be restored to a comparable position with comparable employment benefits, pay, and other terms and conditions of employment.

Are Employers Required to Post or Provide Employees with Notices about PFL?

Yes. An employer generally must:

If it maintains written guidance for employees concerning employee benefits or leave rights (e.g., in an employee handbook), include information concerning PFL in that guidance. All other employers must provide written guidance to each of their employees concerning employee rights and obligations under PFL, including information on how to file a PFL claim. Model language is available for employers to use and customize based on their PFL policies and procedures.
Provide the Statement of Rights for Paid Family Leave to employees when they take PFL or take time off from work for a PFL-qualifying life event, but have not requested PFL.
Upon securing PFL insurance, obtain Form PFL-120 from their insurance carrier or licensed agent and display it in a conspicuous location in the workplace.

Additional requirements and exceptions to the information above may apply. For more information, please

contact the New York State PFL Program .

Please Note: The state laws summaries featured on this site are for general informational purposes only. In addition to

state law, certain municipalities may enact legislation that imposes different requirements. State and local laws

change frequently and, as such, we cannot guarantee the accuracy or completeness of the information featured in the

State Laws section. For more detailed information regarding state or local laws, please contact your state labor

department or the appropriate local government agency.

Inflation’s Impact on 2023 Open Enrollment

Wed, 28 Sep 2022 15:57:54 GMT

Many employees are currently feeling financially strained because of inflation. With open enrollment fast approaching, inflation could impact the choices employees make when it comes to their benefits. Employees are likely considering which benefits matter the most and how to optimize the money they spend on those offerings. As a result, this year’s open enrollment may be more challenging than usual for employers and benefits providers. This article explores how inflation is impacting employees’ benefits selections and approaches to open enrollment and outlines what employers can do to help.

How Inflation Is Impacting Employees

Nearly half of all U.S. workers stated that inflation is making it difficult for them to pay for their employee benefits, according to The Hartford’s Future of Benefits Pulse Survey. In addition, 40% of employees reported that they will cut back on the benefits they select during 2023’s open enrollment because of inflation, with younger workers being more likely to scale back their benefits than older workers.

According to Voya research, due to the financial stress inflation is placing on employees, 70% of workers want their employers to help them to optimize their benefits selections, including retirement savings, health care, health savings accounts and voluntary benefits (e.g., critical illness, hospital indemnity, disability income or accident insurance). This research also revealed that because of inflation, employees plan to spend more time reviewing their benefits selections during this year’s open enrollment than in years past.

Approaching Open Enrollment

Many employees want to optimize what they spend on their benefits and are looking to their employers for help.

By understanding how employees approach benefits selections, employers can help them make better choices during this year’s open enrollment season. According to The Hartford’s previously mentioned survey, employees often make the same benefits choices as they did in the previous year. The survey also revealed that employees tend to fall into one of the following categories when selecting benefits:

Rollers— These employees elect the same benefits as they did in the previous year.
Planners— These employees stay up to date on their benefits throughout the year to be prepared at open enrollment.
Analyzers— These employees examine the coverage options presented during open enrollment and perform calculations for such options to optimize their benefits selections.
Consulters— These employees need to consult with someone prior to making benefits selections.
Avoiders— These employees prefer not to think about their benefits and ignore open enrollment communication.

Reports Show 2022 Wages Increasing Near the Pace of Inflation

Wed, 28 Sep 2022 15:52:41 GMT

According to HR services provider ADP , salaries have been rising rapidly, nearly on par with inflation. Year-over-year pay raises increased by 7.6% leading up to August 2022, compared to an average of around 2% in early 2021. While pay has increased overall, its growth has flattened since April.

Not surprisingly, employees working for larger organizations saw more significant increases. Large companies (with more than 500 employees) raised salaries by 8.3%, while small organizations (with one to 19 employees) increased pay by 5.4% on average.

Aside from company size, the most significant raises went to job hoppers. Those who found different jobs experienced salary gains of 16.1%, while employees who stayed loyal to a company only received an average increase of 7.6%.

The Bureau of Labor Statistics also released its latest earnings data. Average hourly earnings increased 5.2% year over year in August 2022, while average weekly earnings rose 4.6%. These percentages don’t account for inflation, so pay bumps likely haven’t helped workers much.

Salary Planning for 2023

Salary increases in the United States are projected to grow at an average of 4.1% by 2023, according to WorldatWork . This projection is less than half the current annual inflation rate of 8.3%. In 2022, salary increase budgets rose to an average of 4.1%, a 20-year high much larger than the average 3.3% increase projected in 2021. Many organizations increased their budget projections as inflation began to rise.

Consulting firm Empsight found that companies are planning merit increases as well. Thirty-five percent of surveyed companies reported a 3% budget increase, and 40% are planning for 4% or higher. Merit pay raises are based solely on employee performance and not related to promotions or cost-of-living adjustments.

What’s Next?

These reports indicate that while employers are exploring more competitive compensation strategies, these wage raises still lag behind the current rate of inflation increases. Inflation and competition for labor will likely continue to influence employers’ hiring- and compensation-related decisions. Today, compensation planners may rely on 2023 estimates of creeping inflation. If inflation doesn’t stay moderate, employers could be pressured to raise their salary budget projections next year. However, if the economy continues to slow, employers then may not have sufficient revenues to do so.

Uncertainty around the U.S. economy will continue. Meanwhile, employers should continue to monitor employment trends in the evolving market to stay competitive.

Understanding the “Quiet Quitting” Trend

Wed, 28 Sep 2022 15:44:16 GMT

“Quiet quitting” is an emerging trend where workers only do what their job description entails without going above and beyond. Over the course of the COVID-19 pandemic, many employees shifted their views on their work lives, and this has been reflected in movements such as the Great Reshuffle—a mass movement of workers to jobs that meet their demands for things such as more flexibility and better benefits—the shift to remote work and, now, the quiet quitting trend.

Employees who solely complete their job description and no more could continue to be valuable workers. However, employers can consider steps to engage employees and prevent quiet quitting from happening in the first place. To help eliminate the trend’s presence in their organizations, employers should focus on effective communication with their employees and methods to enhance employee engagement.

Signs of Quiet Quitting

Research conducted by Gallup found that only 32% of employees are engaged, and 17% are actively disengaged. Employees who are not engaged could be at risk for doing only their job and not going above and beyond. Further, 53% of workers reported they feel burnt out, according to Talkspace’s Employee Stress Check 2022 Report. To improve employee engagement and prevent these issues from turning from quiet quitting into actual quitting, employers need to know what signs to look for. Employers should pay attention to employees who are consistently doing the following:

Not attending meetings that are not mandatory
Not being as productive as they once were
Contributing to team projects less
Not participating in meetings
Displaying a lack of enthusiasm

It is important to know that there a several reasons an employee may choose to quiet quit. For example, they may simply refuse to do work outside their job description because they feel they are not being compensated for it. While it may not be clear why an employee is choosing to quiet quit, these signs are a good indicator that an employee may be thinking about it or trying to do so.

What Employers Can Do

Quiet quitting is often the result of decreased motivation and burnout. Further, a lack of effective communication between leaders and employees and a general failure of management and organizations can play a role. For example, failures may include a lack of honesty with employees and not delivering on promises.

Consider the following ideas to help improve employee engagement and decrease the odds of quiet quitting among employees:

Provide clear job descriptions. Job descriptions let employees know exactly what is expected of them. Employers should review job descriptions to ensure they accurately reflect the duties they expect their employees to perform.
Conduct performance reviews. Performance reviews are opportunities to reward employees for the positive things they have done and inspire them to continue working hard. Without this feedback and indications of appreciation for hard work, such as title adjustments and salary raises, employees could lack motivation and start to feel burnt out and consider quiet quitting. Further, it is important to recognize employees who go above and beyond because they are likely to feel discouraged and decrease their performance if their contributions go unnoticed. Conversely, performance reviews are just as important for underperforming employees because they are opportunities to clearly communicate expectations and work together to correct the behavior.
Educate employees on employee handbooks. Employee handbooks are another tool employers can use to clearly communicate expectations to employees, but they are only truly effective if employees understand them. Employers should take time to educate employees on their handbook and its policies so they can ensure employee understanding. The handbook should be reviewed and updated regularly to ensure that expectations are up to date and that organizations are in compliance with current laws.
Provide learning and development opportunities. High employee engagement is crucial to preventing quiet quitting. One effective way to increase engagement is through learning and development initiatives. According to Zywave’s 2022 Attraction and Retention Benchmarking Overview, 29% of employers found career development opportunities to be a top priority of workers during the hiring process. Employees who have these opportunities are more likely to remain engaged and stay motivated to try their best at their jobs.
Focus on good management strategies. Effective management is essential to having efficient, happy employees, so it is important to focus on the techniques managers use. Provide resources to managers about effective strategies and meet with them to discuss ways they can improve. Further, consider conducting skip reviews, where employees talk with their manager’s manager to discuss feedback or concerns they may have. This will allow the manager to receive helpful feedback that can be mutually beneficial and improve their employees’ experiences.

Takeaway

Quiet quitting is the new term for the trend of employees doing only what their job requires without exceeding expectations. Employers should be aware of the trend and that it will impact every workplace differently. Employers should monitor for signs that employees may be disengaging and utilize different strategies to help prevent quiet quitting. In cases where quiet quitting may be negatively impacting the employer and they cannot seem to resolve the issue, employers should ensure compliance with federal and local employment laws before pursuing any termination action. For specific guidance about disciplining employees, employers are encouraged to seek local legal counsel.

Contact SimcoHR today for more information on workplace trends, employee retention and employment laws.

Wage and Hour Case Studies - Today's DOL Violation Trends

Wed, 28 Sep 2022 15:34:56 GMT

The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) is tasked with enforcing employment laws that affect more than 148 million workers. The WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act (FLSA), as well as the Family and Medical Leave Act (FMLA) and a number of other employment standards and worker protections. According to the DOL, the core enforcement obligations of the WHD’s investigators include conducting investigations to determine if employers are paying workers and affording them their rights as required by law; helping ensure that law-abiding employers are not undercut by employers who violate the law; promoting compliance through outreach and public education initiatives; and supporting efforts to combat worker retaliation and worker misclassification as independent contractors. In fiscal year 2021, the WHD collected $230 million in wages owed to 190,000 workers, the DOL reported.

Generally, the WHD will initiate an investigation after a current or former employee files a complaint. A WHD investigator may visit an employer to provide information about the application of and compliance with the laws administered

by the WHD. An investigator may also visit an organization to conduct interviews, examine time clocks and ensure all employment notifications are available to employees. Additionally, they may review up to three years of wage and hour records to determine whether there are any violations in an employer’s payroll practices.

In addition to complaints, the WHD selects certain businesses and industries for investigation. For example, the WHD often targets low-wage industries due to high rates of violations, the employment of vulnerable workers or rapid industry changes, such as growth or decline. Occasionally, several organizations in a specific geographic area will be examined.

At the start of 2022, the DOL announced an initiative to hire 100 additional WHD investigators, signaling a potential increase in enforcement in 2022 and beyond. This initiative means now is the time for employers to review their wage and hour practices to ensure compliance with all relevant laws.

This article contains case studies that explore the most recent, real-world examples of employers found to be in violation of wage and hour laws. The case studies include snapshots of violations and general guidance on how employers can prevent similar issues. Employers can examine these case studies to learn from the mistakes of others in comparable industries and avoid costly consequences.

Real-world Case Studies

TAMPA, FL— A DOL investigation uncovered child labor violations by a fast-food restaurant franchisee. The franchisee had to pay more than $12,000 in civil monetary penalties.

What went wrong:

The organization allowed 17 employees who were minors—between ages 14 and 15—to work past 7 p.m.
The organization also allowed minor employees to work more than three hours during a school day when doing so was not permitted.

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ROCHESTER, NY— A DOL investigation found that a health care agency failed to pay its home health care aids overtime wages. The organization was forced to pay more than $228,000 in back wages for the 260 affected workers.

What went wrong:

Although the organization paid its health care aids overtime for hours worked over 44, it failed to pay workers time-and-a-half wages for hours between 40 and 44 they worked per week.

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NEW ORLEANS— A DOL investigation discovered that two contractors misclassified their painters and drywall workers as independent contractors. The organizations were forced to pay more than $246,000 in back wages for 306 workers.

What went wrong:

One organization misclassified its workers as independent contractors.
The same organization also failed to pay workers time-and-a-half overtime wages after they exceeded 40 hours in a workweek and instead used their regular rate of pay.
Both organizations failed to maintain complete and accurate records of the hours their employees worked.
The DOL determined that a joint employment relationship existed between the two organizations and, as a result, they were both liable to pay back wages.

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ATLANTA— A DOL investigation found that the Georgia Department of Public Health wrongly disciplined and terminated an employee for absences protected under the FMLA. The department was ordered to pay more than $77,000 in back wages and reinstate the employee.

What went wrong:

The department denied the employee’s request for leave for an FMLA-qualified condition.
The employee’s denial of FMLA benefits resulted in wrongful discipline and subsequent termination.

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Avoiding Violations

As illustrated by the case studies, avoiding wage and hour violations isn’t always easy. Due to the complex nature of employment laws, compliance is an ongoing challenge for employers. Reviewing these laws and regulations infrequently or only a handful of times is rarely sufficient, but by reviewing these laws regularly, employers can keep their businesses compliant and their workers satisfied. Below is general guidance related to the issues discussed earlier, categorized by violation type.

Child Labor Violations

Hiring minors comes with greater employer responsibilities, as minors have a number of specific wage and hour protections. Failing to comply with laws protecting this worker segment can be particularly costly.

The DOL recently publicized investigations uncovering child labor law violations. The WHD’s recent investigations of three grocery store operators in Idaho and Oregon resulted in more than $240,000 in civil penalties and $114,382 in unpaid overtime and liquidated damages for 266 employees. From 2017 to 2021 , the DOL identified more than 4,000 cases of child labor law violations, finding more than 13,000 youth-aged workers employed in a violation.

In the Tampa, Florida, case study detailed in this article, minors were allowed to work later and more often than permitted by law. All of these instances are violations of the child labor provisions of the FLSA. Perhaps this was due to a shortage of workers, and only minors were available for specific positions and hours. Despite challenges in the current labor market, employers must remain compliant with all relevant state and federal laws governing child labor.

Employers should also consider regularly consulting with attorneys to ensure policies and practices are up to date and compliant.

Overtime Violations

The FLSA requires employers to pay covered nonexempt employees overtime wages—at a rate of time-and-a-half—if they exceed 40 hours in a workweek. Some companies utilize a variety of tactics to avoid paying these wages, including those that are unlawful.

In this article’s Rochester, New York, case study, the health care agency maintained and followed a practice in which home health care aids were paid straight time until they had worked more than 44 hours in a week. However, these employees were eligible for overtime pay once they had worked more than 40 hours. This case study demonstrates the importance of properly constructed and regularly reviewed workplace policies and manager training. Consulting with experts and having them review policies prior to their enforcement could save employers tens of thousands of dollars down the line. According to the DOL, employers may also contact the WHD to ensure they understand their responsibilities and avoid similar violations.

Employee Misclassification

One of the most serious problems facing employers is the misclassification of employees as independent contractors. Under the FLSA, employees are entitled to basic workplace protections that do not extend to independent contractors, such as minimum wage, overtime pay, protected FMLA leave, antidiscrimination and antiretaliation protections, workers’ compensation and unemployment insurance. The WHD is responsible for determining whether an employee has been misclassified as an independent contractor. Employers who misclassify workers may be forced to pay back wages, liquidated damages, attorneys’ fees and costs.

In the New Orleans, Louisiana, case study examined in this article, one contractor misclassified its workers as independent contractors. The workers were paid straight-time rates for all hours they worked. Because these workers were employees, they should have been paid time-and-a-half wages after they surpassed 40 hours in a workweek. Both contractors were also required to keep complete and accurate records of all hours their employees worked. This case reveals the importance of correctly classifying workers at the outset of the relationship and ensuring accurate and complete records are kept.

Sometimes it can be difficult to determine whether a worker is an employee or an independent contractor. However, seeking legal advice in these situations can help curtail potential violations and costly mistakes.

FMLA Violations

The FMLA protects workers who need to take a prolonged absence due to a qualified family or medical reason. This law was enacted so employees could deal with serious and potentially unexpected life circumstances without losing their jobs. Yet, an employee can follow all proper procedures, and an untrained or uninformed manager may still violate the law, resulting in costly consequences.

In this article’s Atlanta, Georgia, case study, the Georgia Department of Public Health wrongly denied the employee’s request for FMLA leave, believing the employee’s condition did not qualify for leave. As a result of the denied leave request, the employee was disciplined and subsequently terminated due to absences related to their FMLA-qualified condition. Employers must be aware of conditions that qualify for FMLA leave to avoid wrongfully disciplining or terminating otherwise protected employees.

FMLA violations can be particularly costly, as they may involve paying back employees’ lost wages and reinstating lost benefits. Employers need to ensure managers, employees and other stakeholders understand their FMLA rights. This includes knowing how to submit FMLA requests, understanding situations that might qualify for FMLA leave and comprehending workplace guarantees that come with this leave (e.g., job protection). Understanding these details can help prevent wrongful termination and significant monetary penalties.

Conclusion

These wage and hour violation case studies demonstrate how easy it can be for an employer to face challenges related to wage and hour regulations. That’s why it’s so important for employers to seek professional guidance before making potentially costly decisions. By learning from these employers’ mistakes, others in similar industries can avoid major violations and prevent DOL audits.

Final Rule Implements Ban on Surprise Medical Billing

Tue, 06 Sep 2022 16:35:41 GMT

On Aug. 19, 2022, the Departments of Labor (DOL), Health and Human Services (HHS) and the Treasury (Departments) jointly released a final rule implementing the ban on surprise medical billing under the No Surprises Act (NSA), which was enacted as part of the Consolidated Appropriations Act, 2021 (CAA). This rule finalizes two interim final rules released in July 2021 and September 2021 , with certain changes related to the independent dispute resolution (IDR) process that has been the subject of ongoing litigation.

The Departments also released FAQs on NSA implementation in conjunction with the final rule that provide more detail on the surprise medical billing ban.

Surprise Medical Bills

Surprise medical bills occur when patients unexpectedly receive care from out-of-network providers (for example, treatment at an in-network hospital involving an out-of-network doctor). Patients often cannot determine the network status of providers during treatment to avoid additional charges and, in many cases, are not involved in the choice of provider at all.

Overview of the Final Rules

The final rule is generally intended to make certain medical claims payment processes more transparent and clarify the process for providers and health insurers to resolve their disputes. It:

Implements certain disclosure requirements related to information that group health plans and health insurance issuers offering group or individual health coverage must share about the qualifying payment amount (QPA) (generally, the health plan’s median contract rate for the item or service in the geographic area);
Finalizes certain changes related to the federal IDR process in light of ongoing litigation; and
Requires plans and issuers to disclose additional information in situations where they change a provider’s billing code to one of lesser value (lowering the payment to the provider).

Important Dates:

July 1, 2021, and Sept. 30, 2021

Interim final rules to implement provisions of the NSA related to surprise billing were released.

Aug. 19, 2022

Rules implementing the ban on surprise medical billing are finalized.

Jan. 1, 2022

The NSA generally applies to plan or policy years beginning on or after Jan. 1, 2022.

The final rules generally require providers to agree with health plans and issuers on a payment amount instead of billing patients for unpaid balances.

Trending Employee Benefits That Strengthen Attraction And Retention Efforts

Thu, 25 Aug 2022 18:32:18 GMT

In the wake of the Great Reshuffle—the mass movement of workers to jobs that prioritize their needs—and macro trends like the tight labor market, attraction and retention are top of mind for employers. In fact, according to Zywave’s 2022 Attraction and Retention Benchmarking Overview, over 75% of employers consider attraction and retention to be among the top-five business challenges for their organizations. As a result, many employers are expanding and enhancing their benefits offerings to remain or become more desirable to employees. This article outlines the following benefits that may be advantageous to attraction and retention efforts:

Telemedicine

Easy access to health care is very important to employees. Throughout the COVID-19 pandemic, many people turned to telemedicine, and it’s not going away anytime soon. Telemedicine is not only convenient for employees, but it can also help employers; for example, it cuts down on time employees may otherwise spend away from work commuting to physical doctors’ offices. Especially as health concerns surrounding COVID-19 linger, it’s essential that employers ensure employees can access health care services in ways that are convenient for them. Otherwise, workers are likely to seek out employers who will help them do so.

Flexible Work Arrangements

Alternative work models such as remote and hybrid work are also in high demand. Workers grew accustomed to the flexible work arrangements they had during the pandemic, and many want to keep them. Where possible, it’s beneficial to consider allowing remote or hybrid work to those who prefer it. Now that many roles have been successfully performed remotely, employees know that if their employer will not offer this flexibility, others will.

Competitive Compensation

With the Bureau of Labor Statistics reporting in June that inflation is at 9.1% year over year, its highest level since 1981, the prices of daily essentials have greatly increased. As a result, many employees are looking for more competitive compensation packages to help them afford the increased cost of living. Zywave reported that 83% of employers found competitive compensation to be a top priority for workers during the hiring process. In response to this, employers who are able may want to consider increasing salaries to at least partially match the inflation rate. Alternatively, employers can offer stipends for essentials such as groceries and gas if salary increases are not in their budgets.

Career Development Opportunities

Employees are not just interested in securing a job they have the skill set for; they also want to develop new skills. According to Zywave, 41% of employers consider addressing current and future skills gaps a top-three attraction and retention challenge.

If employees feel they are unable to advance their professional development within their current roles, they are likely to seek out new ones. Thus, many employers are now offering different opportunities to their employees to help teach new skills and develop various existing skill sets. Employers may consider providing more career development opportunities to help retain workers who wish to expand their skills and career opportunities.

Student Loan Assistance

Student debt is a growing issue among newer members of the workforce, such as Generation Z, and these employees are looking for help mitigating it. Some employers are introducing repayment assistance; many companies that already offer the benefit are increasing contributions and expanding eligibility. Because student loan debt is such a significant issue for many employees, especially as inflation continues to drive up the cost of living, employees are prioritizing employers who help alleviate this added burden.

Takeaway

Various labor market trends are driving employees to demand better benefits packages. There are various benefits employers can offer to attract and retain workers, including those that provide perks that became popular during the pandemic and help lessen the effects of inflation through competitive compensation and student loan assistance. Employers should consider expanding benefits offerings such as these to improve their overall attraction and retention efforts.

Survey Finds Health Benefit Cost Growth Will Accelerate by 5.6% in 2023

Thu, 25 Aug 2022 18:19:07 GMT

The average health benefit cost per U.S. employee is expected to increase by 5.6% in 2023, according to early results from Mercer’s National Survey of Employer-sponsored Health Plans 2022 . This is significantly higher than the 4.4% projected increase for 2022 but is still lower than overall inflation. The expected 5.6% increase accounts for changes employers plan to implement to reduce their overall health care expenses.

Employers are likely not experiencing the full impact of the current price inflation with their health care plans because of the multiyear nature of health care provider contracts. However, employers should expect price inflation to be factored into the costs of health plans over the next few years as their contracts expire and providers negotiate higher reimbursement rates. While most large, self-insured employers have an understanding of their 2023 health plan costs, many smaller, fully insured employers have not yet received their health plans’ renewal rates. Those renewal rates may increase as insurance carriers hedge against the current volatility in the health care market.

Employers are prioritizing enhancing employee benefits and focusing on health care affordability in 2023 to address their increasing health benefit costs.

Employers Are Prioritizing Enhancing Employee Health Benefits in 2023

Employers are currently trying to balance record-breaking inflation and rising health care costs with their attraction and retention efforts. Large employers plan on enhancing employee benefits to improve employee attraction and retention, with 84% of survey respondents stating it was an important or very important strategy. Employers rated enhancing employee benefits higher than monitoring and managing high-cost claimants, which historically has been large employers’ highest priority. To enhance employee benefits, employers plan to expand their behavioral benefits offerings by increasing telemedicine options and employee assistance program services.

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“Employers have a small window to get out in front of sharper increases coming in 2024 from the cumulative effect of current inflationary pressures.”

- Sunit Patel, Mercer’s chief actuary for Health Benefits

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Employers Are Concerned About Health Care Affordability

Employers will generally not increase their employees’ share of the health plan costs in 2023, according to Mercer’s preliminary survey results. In 2023, only 36% of large employers plan on implementing cost-cutting measures, such as increasing deductibles and copays—down from 40% in 2022. Instead, employers are trying to keep more money in their employees’ pockets and remove cost barriers to health care despite rising health care costs. Large employers only require employees to shoulder an average of 22% of total health plan costs. In fact, 11% of employers will offer employees free coverage in at least one medical plan in 2023, while another 11% of employers are considering this option.

What This Means

Price inflation is expected to continue to increase for the foreseeable future despite the recent decrease in health care utilization. While many employers may not currently be feeling the full impact of price inflation in their health care plans, that may soon change. Employers can act now to reign in rising health care expenses and better position themselves to address future increases within their health care plans.

Contact SimcoHR for more health care resources.

How Employers Can Address Social Determinants of Health

Thu, 25 Aug 2022 17:46:21 GMT

Efforts to improve health outcomes have traditionally focused on expanding access to the health care system. Recently, there has been an increased focus on improving health outcomes by taking a broader approach due to the challenges of affordability and access in the health care system. This more holistic approach to health and well-being includes examining and addressing the social factors, such as income, access to food and neighborhood location, that may well be linked to an individual’s health and well-being. These factors are known as social determinants of health (SDoH) or social drivers of health .

SDoH can often impact employees without their employers’ knowledge. Understanding SDoH and how they affect employees’ health and well-being can help employers take steps to better address their employees’ needs, improve health outcomes and build a reputation as a people-first organization.

What Are Social Determinants of Health?

SDoH are the conditions in which people are born, live and work that can impact their health, well-being and quality of life. The main SDoH are economic stability, education access and quality, health care access and quality, neighborhood and environment, and social and community context, according to the U.S. Department of Health and Human Services.

Some examples of SDoH may include:

Income and job opportunities
Education
Housing, transportation and neighborhoods
Access to nutritious food
Opportunity for physical activity
Quality of air and water

SDoH tend to affect the health outcomes of individuals with lower incomes and from historically marginalized groups. Additionally, communities with poor SDoH tend to experience worse health outcomes and increased inequities. For example, experts have linked lower income and social disadvantage to:

Higher probabilities of obesity, heart disease and diabetes
Lower life expectancy
Higher occurrences of preventable disease
Delayed recognition and treatment of disease
Difficulty navigating the health care system and following self-care routines
Increased likelihood of receiving medical treatment in more expensive, less effective settings

Understanding the broader barriers to health and well-being can help employers identify the social conditions that may be impacting their workforce’s health, well-being and quality of life. Considering SDoH can allow employers to more effectively and holistically improve employee health outcomes, which may lead to a more productive and loyal workforce.

How Do SDoH Impact Employers?

SDoH have recently become an important area of focus for employers. Many employers are starting to reconsider their approaches to employee health and well-being by understanding the nonmedical factors influencing their employees’ health outcomes. A recent survey from Willis Towers Watson found that approximately 67% of employers believe SDoH are increasingly important to their health and well-being strategies.

Industry experts have observed that low-income workers tend to approach health care similarly to uninsured individuals, according to research from Aetna; they delay needed medical treatment and often grapple with medical bills and debt. When these employees receive treatment, they tend to select more expensive options, such as visiting the ER, instead of cost-effective alternatives. These employees may do this because they lack transportation, child care resources or flexible work schedules. Additionally, the vast majority of employees tend to lack knowledge of their health plan and the health care system generally. Employees who resort to high-cost, out-of-network or unnecessary medical treatment tend to increase overall medical plan expenses.

By understanding how their employees interact with the health care system, employers can better understand how SDoH impacts their employees. With this information, employers can identify areas where they can reduce overall health care expenses and provide benefits employees need and can utilize. This may improve the health and well-being of their employees and increase health equity among their workers.

How Some Employers Are Addressing SDoH

With the knowledge of how SDoH can affect employees, employers can determine if their employees are receiving suitable health benefits. Employers can collect data to find SDoH affecting their employees so they can identify gaps in their current benefits offerings. Potential sources of SDoH information include:

Health risk assessment tools
Anonymous employee surveys
Payroll or HR information systems data
Health claims data from insurers and third-party administrators

By assessing their health benefits designs with SDoH in mind, employers can determine which core and ancillary benefits best align with their employees’ needs and desires. This may include nontraditional benefits aimed at increasing their employees’ knowledge or access to health care resources. Such benefits may include health care benefits education, financial counseling, tuition reimbursement, flexible work schedules and caregiving resources.

Conclusion

Employers are uniquely positioned to aid their employees in being healthier by making health care more accessible; they can do this by taking a holistic approach to the health and well-being of their workforce. Considering the potential social factors that may be affecting their employees may enable employers to not only improve their employees’ health outcomes but also lower overall health care expenses.

For more information on health care resources, contact SimcoHR today.

ACA Pay or Play Penalties Will Increase for 2023

Thu, 25 Aug 2022 15:56:29 GMT

On Aug. 16, 2022, the IRS updated its frequently asked questions (FAQs) on the employer shared responsibility (pay or play) rules under the Affordable Care Act (ACA) to include updated penalty amounts for 2023. For calendar year 2023, the adjusted $2,000 penalty amount is $2,880 and the adjusted $3,000 penalty amount is $4,320.

Pay or Play Penalty Calculations

Depending on the circumstances, one of two penalties may apply under the pay or play rules—the 4980H(a) penalty or the 4980H(b) penalty.

Under Section 4980H(a), an ALE will be subject to a penalty if it does not offer coverage to “substantially all” (generally, at least 95%) of its full-time employees (and dependents) and any one of its full-time employees receives a subsidy toward his or her Exchange plan. The monthly penalty assessed on ALEs that do not offer coverage to substantially all full-time employees and their dependents is equal to the ALE’s number of full-time employees (minus 30) multiplied by 1/12 of $2,000 (as adjusted), for any applicable month.
Under Section 4980H(b), ALEs that offer coverage to substantially all full-time employees (and dependents) may still be subject to a penalty if at least one full-time employee obtains a subsidy through an Exchange because the ALE did not offer coverage to all full-time employees, or the ALE’s coverage is unaffordable or does not provide MV. The monthly penalty assessed on an ALE for each full-time employee who receives a subsidy is 1/12 of $3,000 (as adjusted) for any applicable month. However, the total penalty for an ALE is limited to the 4980H(a) penalty amount.

Important Dates:

Aug. 16, 2022

The IRS released updated pay or play penalty amounts for 2023.

Aug. 1, 2022

The IRS previously updated the 2023 affordability percentage under the pay or play rules to 9.12%.

2023 Calendar Year

These updated figures apply for coverage offered (or not offered) during the 2023 calendar year.

What You Should Know About Boat Insurance

Thu, 21 Jul 2022 14:20:26 GMT

Whether you own a boat or are thinking about getting a boat, we will share helpful information with you to help you navigate boat insurance. Boat insurance is not currently required in New York, however, like your car it’s recommended to get insurance in case you need to fix or replace a damaged vessel.

Cost of Boat Insurance

Boat insurance is pleasantly inexpensive. Covering your boat and your family onboard can cost on average only around $20 per month. However, there a several discounts available that may make it even more less expensive! If you package your boat insurance with your home and auto insurance, pay the full-year rate upon signing up for insurance, or taking a boaters safety class which can save 5% are a few ways to drop your insurance rate.

Discounts for Boat Insurance

It is possible your boat may qualify for a discount. Ask your agent about the following that may help you discover some cost-savings:

Is your boat diesel powered? This is considered less dangerous than gasoline powered because of the risk of explosions.
Do you have Coast Guard approved fire extinguishers or ship-to-shore radios?
Have you passed a Boater’s Safety Course ?
Consider packaging your home and auto with boat for discounts.
Do you use your boat only in the summer months and winterize your boat in a secure established boat storage facility? This is often referred to as a “lay-up” discount versus it being in the water year-round.
Does your boat have anti-theft alarm systems, GPS, CO2 detector, depth finders or radar?
Do you have many years of boating experience with a high-performance boat?
Is your boat newer? Some newer boats have added safety features that give you a discount.
Do you have a safe boating record? That helps!
Are you boating in fresh water that’s safer, compared to bodies of salt water or an area known for severe weather? Limiting your radius of use can keep our rates low.

What Affects the Cost of Boat Insurance?

The size of your boat, motor size or top speed of the boat, style, and value all are considered when an insurance agent shops for your boat insurance coverage.

What is typically covered?

Boat insurance covers physical damage to your boat. It will also cover theft or medical bills including bodily injury to passengers and other boaters.

It is possible it may not cover normal wear and tear, gradual deterioration, insect damage, marring, denting, mold, animals like sharks or zebra mussels, scratches, manufacturer’s defects, ice, or damaged machinery.

Talk with our specialist and they’ll be able to tell you what coverage is available and match them with what your needs are.

Types of Boat Insurance

There are two kinds of coverage available, an actual cash value and an agreed amount value. How depreciation is handled is what differentiates them.

An Actual Cash Value covers replacement cost minus depreciation at the time of loss. If there is a total loss of your boat, used boat pricing guides are used to decide your boat’s market value. Partial losses are taken care of by calculating the total repair costs minus depreciation. This coverage may cost less but you must consider depreciation.
An Agreed Amount Value is calculated on an appraisal of your boat that both you and your insurer agree on. If you have a total loss of you boat, that agreed upon amount is what you will get back. These policies also replace old items with brand new items in a partial loss, without depreciation coming into play.

Who can operate your boat?

Most of the boat insurance policies will allow anyone you give permission to operate your boat. If you have a high-performance boat or personal watercraft, there may be exceptions to this so be sure to discuss this with a knowledgeable agent. To add more drivers to your policy may increase your premium.

Common Boat Insurance Add-On Policies

Depending on what type of policy you go with, you may want to consider some of the most popular add-on coverages.

Specialized Coverage-this covers something specific and more expensive on your boat, for example navigation equipment.
Salvage-this covers the expense of moving your boat after it was damaged.
Consequential Damage-covers wear and tear due to rot, mold, and corrosion.
Towing-It can be very costly to tow your boat safely across water and this pays for that cost.
Cruising Extension-this is a temporary policy if you are leaving the United States.
Guest Passenger Liability-if a guest takes over control of your boat and there’s an accident.

In conclusion, the cost of your boat insurance depends on the coverage, limits, and deductibles you choose, the type and size of boat, and where you will use and store your boat. Contact Simco for a free quote for whatever watercraft you need coverage for and consider bundling your home and auto and save money.

How Do I Prepare for My Medicare Appointment?

Thu, 21 Jul 2022 14:11:29 GMT

When you are looking for a Medicare plan it pays to be prepared. If you are prepared, you will make the most of your time and have an accurate estimate of what your costs will be and ensure that the plan you select will work for you.

Health Insurance Info

You will want to bring all your current health insurance information. Bring your Original Medicare Card (red, white, and blue paper card), your EPIC card if you are a member, and any other current health insurance cards.

List Your Providers

Make a list of the providers that you see, either regularly or on an as needed basis. A provider would include primary care physicians, specialists, pharmacies, labs, hospitals, surgical centers, just to name a few.

List Your Medications

Prepare a list of your medications. You can create one yourself, use a summary f rom a recent doctor’s visit or call your pharmacy to get a printout. It is important to be specific about the medications you take! There can be a significant difference in the cost of medications depending on the dose or even whether it is a tablet or a capsule! Be sure to include percentages and grams for medications that are drops, lotions/creams, inhalers, etc.

Healthcare Needs

Review your current healthcare needs, to get an idea of what services you typically use the most. How many providers do you see and how many times a year do you see them? Do you have any upcoming services you need this year that you did not in the previous year? Do you have a surgery scheduled?

Plan Ahead

You also want to think about how a plan works if you were to have an unexpected medical event. What is my cost for ambulance services? Is my local hospital in-network with the plan? What if I am transferred to another hospital, for a higher level of care, are they in the plan network? What are the plans out-of-pocket maximum?

What Ancillary Benefits Can You Include?

Finally, think about any ancillary benefits such as gym memberships and healthy rewards/wellness programs. Do you want vision or dental coverage?

There can be a lot to think about when considering your Medicare plan options. Simco’s Medicare Specialists are licensed agents who can help you narrow down the options simplifying the process.

What to Know About 988 the New Mental Health Crisis Hotline

Wed, 20 Jul 2022 19:13:35 GMT

The 988 Suicide and Crisis Lifeline (Lifeline) launched nationwide on July 16, 2022. Similar to calling 911 for medical emergencies, people in emotional distress or suicidal crisis can dial the three-digit code 988.

About 988

The Lifeline was launched in 2005 and has received more than 20 million calls from people in distress. There are several ways to reach a trained counselor:

Call 988
Text 988
Chat online at 988lifeline.org/chat

Why is There a New Phone Number?

Experts worried that the former 1-800-273-8255 Lifeline number was difﬁcult to remember during a crisis, so a three-digit dialing code was launched nationwide. It’s a new number, but not a new service.

Who Should Call?

Anyone experiencing a mental health or substance use crisis can call 988. Counselors are trained in handling various mental health issues, including self-harm, addiction and suicidal ideation. You can also call on behalf of someone else. Counselors can offer guidance on helping a friend or loved one navigate a mental health emergency.

What Happens When You Call?

You’ll be connected to one of about 200 local call centers. Trained counselors will listen, provide support, connect you to community resources or dispatch emergency services if necessary. If local call centers are busy, you’ll be automatically directed to a national backup center. Someone will answer.

What Languages are Available?

Live phone services are available in English and Spanish. Also, 988 uses translation services to support over 250 languages. Text and chat are currently available in English.

Help is one call away, so spread the word about 988. This new three-digit dialing code could provide immediate support during one’s darkest hour.

Early Preparation Is Crucial for 2023 Open Enrollment

Wed, 20 Jul 2022 18:47:56 GMT

The job market is still dealing with the aftereffects of the COVID-19 pandemic. Workers are taking stock of their circumstances and considering which employment perks matter the most. Specifically, employees are increasingly more concerned about their physical and mental health, financial security and work-life balance than before the pandemic. Many employers have responded by enhancing benefits offerings to support employees.

Employees may now be looking for new opportunities. Due to the high number of job openings, many employees are feeling more confident in switching jobs for better pay or improved working conditions. Some employers are attempting to combat this employee-friendly job market by raising wages and offering competitive benefits to attract talent.

Employers should recognize that beginning their open enrollment efforts early in 2023 presents a massive opportunity. Early preparation can help show employees they are valued and convince top performers who may be seeking job changes to stay in their current positions. This article outlines how employers can prepare early for open enrollment, including surveying employees to determine which benefits they want, revamping benefits offerings to meet workforce needs, strategizing employee messaging and effectively communicating benefits offerings.

Tailoring Benefits Options

Employee benefits offerings can serve as powerful retention tools. However, that’s only true if employees see value in these offerings. That’s why employers need to tailor their benefits options to include perks employees care about.

In the wake of the COVID-19 pandemic, employees sought perks that weren’t previously offered by many employers. These include benefits or arrangements that initially began out of necessity, such as remote or hybrid work arrangements and extended leave. Now, many employees expect at least some of these benefits to become permanent.

According to various surveys and reports, the following are some of the top benefits employees are currently seeking:

Remote or hybrid work environments
Flexible or hybrid scheduling
Greater compensation
Mental health resources
Caregiving benefits
Professional development opportunities
Telemedicine
Financial wellness resources

Employers should keep in mind that benefits offerings are one of the top reasons employees join companies and stay at their jobs, according to insurance data. That’s why it’s critical for employers to seriously consider speaking with employees about which perks provide the most value for their unique circumstances. Adding or tweaking a few benefits options could be the difference between retaining or losing top performers. Simco has benefit specialists able to help!

Employers Now Required to Justify COVID-19 Testing, According to EEOC

Wed, 20 Jul 2022 18:01:27 GMT

In an update to its technical assistance manual, the U.S. Equal Employment Opportunity Commission (EEOC) recently announced that employers must now justify mandatory COVID-19 testing for their workers. Going forward, employers must “assess whether current pandemic circumstances and individual workplace circumstances justify viral testing of employees to prevent workplace transmission of COVID-19.”

Previously, the EEOC stated that COVID-19 testing for on-site employees was permissible under the American with Disabilities Act’s (ADA) standard for medical examinations. Employers now need to show that mandatory COVID-19 testing of employees is job-related and consistent with business necessity, as defined by the ADA. In determining whether a mandatory testing measure meets business necessity, employers may consider the following:

Community transmission levels
The vaccination status of employees
The accuracy and speed of processing different types of COVID-19 viral tests
The degree to which breakthrough cases are possible for vaccinated employees
The ease of transmissibility of current COVID-19 variants
The possible severity of illness from current COVID-19 variants
Types of contact employees may have with others in the workplace or where they are required to work
Potential impacts on an employer’s operations if an employee enters the workplace with COVID-19

Employers should also check the latest guidance from the Centers for Disease Control and Prevention (CDC) to determine whether COVID-19 testing is appropriate for employees.

The EEOC clarified that this change does not suggest that COVID-19 testing is or is not warranted. Instead, the EEOC recognizes that the pandemic is evolving and employers must determine whether viral testing is necessary based on individual assessments.

What This Means

In light of this recent change, all employers currently practicing or considering COVID-19 testing requirements will want to review their requirements to determine whether they meet business necessity. Any employers seeking to implement mandatory COVID-19 testing of employees will need to show that their testing measures meet the ADA’s business necessity standard. Additionally, based on recent CDC guidance, employers likely cannot require employees to receive antibody tests in order to return to work, as the CDC has stated antibody tests cannot determine whether individuals are currently infected with or immune to COVID-19.

Contact SimcoHR for more COVID-19-related resources.

Proposed Overtime Rule Expected in October 2022

Wed, 20 Jul 2022 17:42:43 GMT

In its recent spring regulatory agenda, the U.S. Department of Labor (DOL) announced its plans to issue a proposed overtime rule in October 2022. According to the agency’s regulatory agenda, this proposed rule is expected to address how to implement the exemption of executive, administrative and professional employees from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime requirements.

The DOL provided a similar notice last fall but has yet to specify what changes it may be considering. In recent years, some experts note that the agency has contemplated modifying the duties test and salary thresholds for exempt employees.

What Will the Proposed Overtime Rule Address?

This proposed overtime rule could provide clarity for classifying exempt employees and increasing their salary levels under the FLSA. Some experts believe the DOL could even create automatic annual or periodic increases to exempt employees’ salary levels by linking them to the consumer price index, allowing exempt employees’ salary thresholds to adjust without formal rule-making. The current annual salary threshold for exempt employees is $35,568.

The DOL has held several calls with industry stakeholders and recently conducted multiple regional listening sessions to gather information. Still, there’s no firm date for when the agency will release the proposed overtime rule. Changes to minimum wage and overtime requirements under the FLSA could impact compliance costs and litigation risks for employers.

What’s Next?

Regulatory agendas outline a federal agency’s goals for the upcoming months. Although these agendas aren’t set in stone, they give insight into the current administration’s priorities and activities.

Once the DOL publishes a proposed rule in the Federal Register, there will be time designated for the public comment. Subsequently, the agency will review comments and determine whether to move forward with a final rule.

Even after the DOL publishes the proposed overtime rule, it will likely be some time before this rule becomes final, if ever. Employers are not obligated to change how they classify or pay employees until the DOL’s proposed rule becomes final. However, potentially impacted employers will want to follow the DOL’s rule-making process closely.

For more resources on FLSA regulations, contact SimcoHR today.

CARES Act and CAA Allow Tax-free Student Loan Assistance

Wed, 20 Jul 2022 17:30:08 GMT

Among other measures aimed at easing student loan burdens during the coronavirus pandemic, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) includes a provision that temporarily allows employers to make tax-free payments of up to $5,250 toward their employees’ student loans. The final date for employer contributions to receive tax-free status was initially Dec. 31, 2020, but the Consolidated Appropriations Act (CAA), which was signed into law on Dec. 27, 2020, extended this provision through 2025.

During this time frame, employer payments toward their employees’ qualified educational loans can be excluded from the employees’ taxable income, resulting in tax advantages for both parties. Employer contributions made outside of this time frame or in excess of the monetary limit are generally considered taxable wages subject to all employment taxes.

Section 127 of the Internal Revenue Code already allows employers to pay up to $5,250 per year toward employees’ qualified educational expenses—such as for tuition and textbooks—on a tax-free basis. The CARES Act provision expands that law to include student-loan repayment assistance as qualified educational expenses. This means that employers may, through 2025, provide each employee with up to the maximum in either education-related expenses, student loan payments or a combination of both.

Section 127 also requires employers to have a written educational assistance plan that meets specified content requirements.

Action Steps

Employers should consider establishing—or amending any existing—written educational assistance programs to take advantage of the favorable tax treatment for contributions toward their employees’ student loans.

Important Dates

March 27, 2020

Initial date for tax-free employer contributions to eligible employee student loans.

Dec. 31, 2025

Final date for employer contributions to receive tax-free status.

HSA/HDHP Limits Increase for 2023

Thu, 23 Jun 2022 13:20:23 GMT

On April 29, 2022, the IRS released Revenue Procedure 2022-24 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2023. The IRS is required to publish these limits by June 1 of each year.

These limits include:

The maximum HSA contribution limit;
The minimum deductible amount for HDHPs; and
The maximum out-of-pocket expense limit for HDHPs.

These limits vary based on whether an individual has self-only or family coverage under an HDHP.

Eligible individuals with self-only HDHP coverage will be able to contribute $3,850 to their HSAs for 2023, up from $3,650 for 2022. Eligible individuals with family HDHP coverage will be able to contribute $7,750 to their HSAs for 2023, up from $7,300 for 2022. Individuals age 55 or older may make an additional $1,000 “catch-up” contribution to their HSAs.

The minimum deductible amount for HDHPs increases to $1,500 for self-only coverage and $3,000 for family coverage for 2023 (up from $1,400 for self-only coverage and $2,800 for family coverage for 2022). The HDHP maximum out-of-pocket expense limit increases to $7,500 for self-only coverage and $15,000 for family coverage for 2023 (up from $7,050 for self-only coverage and $14,100 for family coverage for 2022).

Action Steps

Employers that sponsor HDHPs should review their plan’s cost-sharing limits (minimum deductibles and maximum out-of-pocket expense limit) when preparing for the plan year beginning in 2023. Also, employers that allow employees to make pre-tax HSA contributions should update their plan communications for the increased contribution limits.

Important Dates

January 1, 2023

The new contribution limits for HSAs become effective.

2023 Plan Years

The HDHP cost-sharing limits for 2023 apply for plan years beginning on or after Jan. 1, 2023.

Employers See Increasing Numbers of Lawsuits Over Deficient COBRA Notices

Wed, 22 Jun 2022 20:51:30 GMT

Employers are seeing an increase in lawsuits from former employees alleging deficient Consolidated Omnibus Budget Reconciliation Act (COBRA) election notices, with statutory penalties of up $110 per person per day. These lawsuits are generally class actions and can result in significant attorneys’ fee awards for successful ex-employees. The fact employers are struggling to comply with COBRA notice requirements means employers should brace for increased election notice litigation.

Why Has COBRA Notice Litigation Increased?

Employers’ difficulty in complying with election notice requirements plus lucrative class action lawsuits seem to be causing the increase in litigation. Even though COBRA violations tend to be incidental to other employment litigation—meaning most individuals filing claims would not have elected COBRA—they can result in hefty penalties and attorneys’ fees awards for successful ex-employees.

The recent barrage of COBRA notice lawsuits claims employers’ COBRA election notices are inaccurate, confusing or threatening. Lawsuits have targeted COBRA notices that fail to include:

The mailing address for payments
The plan administrator’s identity
An explanation of how to enroll
The actual election form to elect coverage

The costs of class actions are hefty. Some examples of COBRA notice litigation occurring earlier this year include lawsuits against Home Depot, Fiat Chrysler and Costco. These companies settled their lawsuits for $815,000, $600,000 and $750,000, respectively.

Why Are Employers Struggling With COBRA Notice Requirements?

In 2020, the U.S. Department of Labor (DOL) revised its model COBRA election notice. While employers can simply use the DOL’s model COBRA notice, many do not rely on it because most use third-party vendors to provide notices to their former employees.

These third-party vendors typically provide their own notices that do not strictly adhere to the DOL’s model notice. For instance, vendors often omit the plan administrator’s name to avoid confusion—as former employees mail COBRA coverage payments to the vendor, not the plan administrator. Additionally, not all information required by the DOL’s model notice is known to employers at the time they must provide notice, so vendors omit it. Even though vendors prepare and send most notices, COBRA notice litigation is directed at the employer or plan sponsor, not the vendors.

“The DOL is ‘keeping an eye’ on the need for additional COBRA guidance, but other issues have taken priority.”

- Elizabeth Schumacher, deputy director of the DOL’s Division of Regulations and Standards

What this means

While ensuring compliance is always challenging, recent developments—such as the DOL’s revised model notice and the IRS and DOL extending COBRA deadlines and providing additional guidance following the enactment of the American Rescue Plan Act of 2021—have made it harder for employers. Consequently, COBRA notice litigation is likely to continue for the foreseeable future.

While the recent rise in COBRA notice litigation has targeted mainly large employers, all employers should consider reviewing their COBRA notices to ensure compliance, identify potential liabilities and avoid litigation. Even technical violations that do not result in actual harm to former employees—since they rarely elect COBRA—can expose employers to expensive litigation because of statutory penalties and attorneys’ fees.

Contact SimcoHR for more COBRA compliance resources.

Combating Rising Benefits Costs During Periods of High Inflation

Wed, 22 Jun 2022 20:35:30 GMT

The U.S. inflation rate has increased by 8.3% over the last year, according to the Bureau of Labor Statistics (BLS). This has led to significant price increases across various consumer goods as well as employee benefits such as health insurance. In fact, one-third of U.S. employees have already seen an increase in their health costs in the last year, a survey conducted by the Employee Benefit Research Institute reported.

This increase in costs presents challenges for employers facing one of the most difficult hiring markets in recent memory. Luckily, there are some strategies employers can utilize to mitigate increasing benefits costs without shifting the burden to employees, thus remaining attractive to current and prospective employees.

Eliminate Underutilized Benefits

One simple strategy is to eliminate underutilized benefits. Resources from unused benefits can then go towards more expensive benefits. An easy way to evaluate which benefits best suit a company’s needs is to regularly send out benefits surveys to the company’s employees. These surveys can help employers know which available benefits may not be providing value to the company.

Wellness Programs

While there are skeptics and believers when it comes to actual cost savings provided by wellness programs, they often play an important role in other positive workplace developments. For instance, promoting and achieving a healthy workforce often improves morale and productivity. These programs are also valuable because they can lead to improved employee attraction and retention as well as increased loyalty to the employer.

There are a variety of wellness benefits employers can offer to suit the needs of their company. Potential options include providing in-office perks for nutrition, fitness and stress management, or gym memberships.

Telemedicine

Taking time off to go to the doctor can often be a time-consuming and expensive undertaking. Telemedicine may help lessen these issues by eliminating associated costs, such as transportation, and providing faster and more affordable care to those seeking medical services. By meeting with health care providers over the internet, employees can get the care they need more quickly and are likely to be more productive as a result. Additionally, telemedicine allows employees to take less paid time off of work and makes it much easier for them to avoid obstacles that could get in the way of seeking health care, such as child care.

Conclusion

As employers adjust to increasing inflation rates and the rising costs that follow, there are several strategies they can use to help offset the severity of these increases. From providing wellness programs to facilitating the use of telemedicine, employers will need to think carefully about which strategy would work best for their unique situation.

Hire to Fit Your Company Culture

Wed, 22 Jun 2022 20:27:34 GMT

Poor hiring decisions can be extremely costly for your company, in terms of business interruption, wasted recruiting and training resources, lower employee morale and more. You may realize that an individual is not a good fit, or a new employee may choose to leave if the job doesn’t match his or her expectations. In both circumstances, many of these separations are due to the fact that the hired individuals did not fit the company culture and therefore lacked productivity, creativity and/or morale.

Culture is the unifying element that holds everyone in an organization together. Unlike an established mission statement, culture encompasses the written and unwritten behavioral norms and expectations of those within the company. Culture can set one company apart from others, and it can include the value of work-life balance issues, the way the company is organized, the extent to which leaders follow through on mission statements and many other factors.

Companies looking to hire individuals that fit with their culture must first identify and understand it. For instance, if your organization recognizes personal achievements and awards individuals for a job well done, then a team-oriented employee might not be the best fit. But if your company values the total team performance versus the contributions of just one individual, then someone looking for personal recognition might not be as satisfied working for your company. Ultimately, if the fit is not right between the company and individual, then both will lose interest and the relationship will probably fail.

Importance of a Good Fit

Finding employees who are a good fit for the organization produces the following benefits:

Improved employee retention.
Enhanced employee performance because most individuals at the company share similar values and aspirations. When people share a common purpose and similar attitude, it can encourage people to perform better.
Improved alignment from the top to the bottom, and employees may view leadership more positively.

Screening to Find a Cultural Fit

Developing a screening process that integrates prescreening based on your company culture can be accomplished with the following steps.

1. Ask employees at various levels of the organization how they see your company culture. Then, identify the similarities that arise among individuals—motivations, values, core competencies, etc.

When you can identify what makes the organization successful, you will know what to look for during the selection process. This technique is also helpful in avoiding hiring discrimination allegations because you have defined the key characteristics of your culture, which help you logically and fairly justify your hiring decisions.

2. Create a brand to describe your organization to potential employees.

Depict your culture accurately so that candidates can filter themselves in or out based on how you describe the company. If they do not see themselves fitting into your culture, they may not even apply.
To make branding more real for prospective employees, provide messages from executives, testimonials from various employees, virtual job tours, etc.

3. Have candidates complete an online assessment as part of the recruitment process to screen potential candidates based on their qualifications, personality and other factors. Use properly validated assessments that meet legal and professional standards.

4. Ask questions about traits that you cannot or do not want to train someone how to do (being self-motivated, possessing integrity, etc.). Questions should determine if candidates have values and competencies that match with the company’s culture.

Ask behavior-related questions and then rate open-ended answers on a scale.
Ask for examples of situations in which candidates faced dilemmas or problems and successfully overcame them.

5. Role-play during the interview process to observe candidates in action. Or, allow them to try out the position for a day to see if it seems like a good fit for them (and for you).

This step would come after all interviewing is complete, and reference checks and resume verification checks are also done.

6. Know the laws applicable to hiring.

7. Create metrics for measuring cultural fit by determining cost-per-hire, time-to-fill and quality-of-hire data.

8. Make sure management is trained on how to properly interview for behaviors.

9. Maintain accurate records of all your hiring decisions. During an audit or discrimination claim, you will need to produce valid justification for your decisions.

10. Human resources should stay on top of monitoring, learning and studying the culture of the organization, and then design policies that align with the culture. HR should constantly be asking if the organization is truly what it claims, if it needs to modify the culture to be more competitive and if it is remaining compliant with all hiring laws.

Don’t Become Drained by Culture

Although finding a cultural match is beneficial, sometimes desperately seeking individuals who align with the company culture can backfire. Here’s why:

If the company promotes itself differently than how the culture really is, then prospective employees will be lured in under false pretenses. If employees realize that they’ve been sold on a company inaccurately, they will probably leave shortly after being hired and will lack the morale needed to succeed while they are still there.
People who are too similar to one another tend to lack the zest needed to be proactive. If your entire company is full of mediocre performers, no one will stand out to motivate others to work harder. Along these same lines, groupthink may set in.
Emphasizing a company culture can become a legal exposure with regard to compliance audits and discrimination accusations. If you do not hire someone based on the fact that they “did not fit in with your culture” but have no quantitative proof to back this up, your organization may be held liable for discrimination or failure to comply with equal hiring provisions.

IRS Raises Mileage Rates for Second Half of 2022

Wed, 22 Jun 2022 19:54:21 GMT

For the first time since 2011, the IRS has made a midyear adjustment to the optional mileage rate used to calculate the deductible costs of operating an automobile for business and other specific purposes. The agency said the change is in recognition of recent gasoline price increases.

Rate Increase

In Announcement 2022-13 , released June 9, 2022, the IRS increased the standard mileage rate for the final six months of 2022, starting July 1. During that period, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year.

The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022.

The rate for charitable organizations is set by statute and will remain unchanged at 14 cents per mile.

Background

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. It is based on the fixed and variable costs of operating an automobile, such as fuel, depreciation and insurance. The federal government and businesses also use the rate as a benchmark to reimburse their employees for mileage.

Taxpayers always have the option of calculating the actual costs of using their vehicle instead of using the standard mileage rates.

The Two Ways to Get Medicare Coverage

Tue, 21 Jun 2022 15:33:19 GMT

If you're wondering about what Medicare part A and B covers, what it doesn’t, and what your options are, you're in the right place. Here, we will simply break it down for you.

Medicare Part A

Covers: hospital, hospice, home health care skilled nursing facility/rehab, nursing home care that is not custodial or long-term care.

Medicare Part B

Covers: medically necessary services or supplies that diagnose or treat a medical condition, and preventive services.

What Medicare Does Not Cover

Medicare Part A and Part B do not cover acupuncture, routine foot care, cosmetic surgery, most dental, eye exams related to prescribing glasses, long-term care, dentures, hearing exams or exams for fitting them.

Original Medicare was never meant to be your only source of coverage. There are some holes or gaps, in the coverage. So, how do you fill those gaps? There are two main ways to get your Medicare coverage. You can choose to stay with Original Medicare Parts A and B, or join a Part C Medicare Advantage Plan.

1. Original Medicare with Medigap Supplement Policy:

If you choose to stay with Original Medicare, you can enroll in a Medigap Supplement Policy and add a Medicare Part D Prescription Plan. Medigap Supplement policies fill in the gaps of the Original Medicare services. Medigap Supplement plans are sold by private insurance companies. You can use this type of coverage nationally if you see a provider that accepts assignment with Medicare.

2. Part C, a Medicare Advantage Plan:

If you choose to enroll in a Medicare Advantage Plan, also known as Part C, you will have all the services offered by Original Medicare and may be offered some additional services like vision and dental. Most plans will include a Medicare Part D Prescription Plan. Medicare Advantage Plans are sold by private Medicare approved insurance companies. These plans, however, may have different rules on how they cover services. This type of coverage has networks of providers that must accept your plan.

*You can only choose one way to get your Medicare. You cannot have both a Medigap Supplement and an Advantage Plan.

Can I Switch my Coverage Type?

You can make changes to your coverage annually during the Annual Election Period in the fall. This period runs October 15th to December 7th.

If you have a Medicare Advantage Plan and want to change to a Medigap Supplement Plan you may be limited depending on the state that you live in, unless it is your first time enrolling in a Medicare plan. In New York State, Medicare beneficiaries are eligible for continuous open enrollment for Medigap Supplement policies. In New York, you can be sold a Medigap Supplement Policy at any time. Companies must sell you a policy no matter your age or health status, and they must sell to people who under and over age 65 with Medicare. If it is your first time enrolling in a Medigap Supplement policy, then you have a guaranteed issue right. This means that you cannot be denied enrollment and are given the best available rates regardless of health. Guaranteed issue right also prevents companies from imposing a waiting period for pre-existing conditions.

If you have Original Medicare with a Medigap Supplement, you can change to Part C Medicare Advantage plan at the Annual Enrollment Period every year. If you have a Part C Medicare Advantage Plan you can change during the Annual Enrollment Period every year or during the Medicare Advantage Open Enrollment Period, January 1st to March 31st, every year.

You also may be eligible for a Special Enrollment Period (SEP). Contact Simco Capital to help you find the best option for you and whether you are eligible for a special enrollment. Our consultation services are free and our friendly licensed specialists have the experience to help you.

What Makes Medicare Different for Everyone?

Wed, 01 Jun 2022 14:30:18 GMT

One of the ways that Medicare can be different for some is with the cost of the Medicare Part B premium. The Part B premium has a standard rate. If you have a higher income, you will pay an Income Related Monthly Adjusted Amount, also known as an IRMAA. Most people will pay the standard rate. However, if your modified adjusted gross income that was reported on your tax return from two years ago is above a certain amount, you will pay the standard rate plus the IRMAA. If you do not pay your IRMAA you could lose your Medicare coverage.

This amount generally changes every year. You can find the current IRMAA amounts on the Social Security website .

Medicare Part D and IRMAA

Medicare Part D is also subject to the IRMAA depending on your income, again from your reported income from two years ago. You will pay the IRMAA in addition to your Medicare Part D premium, whether you have a stand-alone Part D or a Medicare Advantage Plan with Part D.

The Part D IRMAA is paid directly to Medicare and not to your plan or employer. If you do not pay the Part D IRMAA, you will lose your Part D prescription coverage.

If your income has gone down, depending on specific circumstances, you may be able to get a new decision about your IRMAA.

If you are subject to an IRMAA, you will receive a notice from Social Security.

Medicare Late Enrollment Penalty (LEP)

Another way Medicare can be different for some is if they have a Late Enrollment Penalty (LEP) on their Medicare Part B premium. In most cases, this penalty will be for the rest of the time that you have Medicare. This is not a one-time penalty. If you have Medicare due to disability, your penalty will go away when you turn 65.

How is the Part B penalty calculated? For each 12-month period that you delay Part B enrollment you will have to pay a 10% premium penalty unless you are eligible for the Medicare Savings Program (MSP) or you have active job-based insurance through yourself or your spouse with more than 20 employees.

There is also a penalty for a late enrollment in a Medicare Part D plan. If you delay enrollment, you will pay a LEP of 1%, of the national base premium, in addition to your Part D plan premium. The national base premium changes every year and currently for 2021, it is $33.06. This penalty is assessed for every month that you went without a Medicare Part D or creditable coverage. Creditable coverage is coverage that is as good as or better than the Medicare Part D coverage. If you receive assistance through Social Security’s Extra Help Program, also known as LIS (Low Income Subsidy), have creditable drug coverage or prove that you received inadequate information about your drug coverage being creditable, you may not have to pay the LEP.

Like the Part B LEP, this is not a one-time penalty. The LEP for Part D, is also a penalty that you will have for as long as you have Medicare. If you are under 65 and have Medicare due to disability your LEP will go away when you turn 65.

Medicare for Those Under 65 with Disability

How does Medicare coverage for those under 65 with a disability work? Like the Initial Enrollment for a person eligible due to turning 65, there is a seven-month period to enroll in Medicare. The difference is that the enrollment period for those on disability surrounds the 25th month of disability. You will automatically receive your Medicare card and packet three months before your 25th month of disability. Your effective date will be the 1st of the month, that is your 25th month of disability. Generally, you should not delay Medicare Part B unless you have job-based insurance that pays secondary to Medicare (employer insurance with more than 20 employees). If you delay without job-based insurance as previously mentioned, you may incur a penalty. If you do not receive your card and packet, contact Social Security.

Railroad Retirement

Another scenario where Medicare will be different for some is those with Railroad Retirement. When a person who is receiving Railroad Retirement benefits becomes eligible for Medicare, instead of enrolling in Medicare through Social Security their enrollment will be processed through the Railroad Retirement Board (RRB). They would be automatically enrolled in Medicare Parts A & B.

If the person is not collecting Railroad Retirement benefits when turning 65, they should contact the Railroad Retirement Board (RRB) to enroll. The RRB will collect the Medicare premiums and the Medicare Part B premium should be automatically deducted from their monthly check. Additionally, the doctor’s and providers will send claims to the Railroad Medicare Part B Claims Contractor selected by the RRB. It is important to make providers aware that the Medicare is Railroad Medicare. The Medicare card will look different. It will have RAILROAD RETIRMENT BOARD labeled at the bottom of the card and an insignia at the top left, for the RRB. Finally, if you are under 65 and disabled, you will have different eligibility criteria depending on how the RRB classifies your disability.

For additional information go to www.rrb.gov or reach out to Simco.

EEOCs 2021 Report and 2023 Budget Justification Signal Potential Enforcement Increase

Wed, 25 May 2022 19:14:23 GMT

The Equal Employment Opportunity Commission (EEOC) recently announced its 2021 performance report and presented its proposed budget for fiscal year 2023 . Exploring these subjects can help employers gauge where the EEOC may soon be focusing its enforcement efforts.

2021 Review

In 2021, the EEOC resolved over 100 discrimination-related lawsuits and obtained over $485 million in monetary benefits for more than 15,000 victims of employment discrimination, according to the agency’s annual performance report.

The agency also conducted hundreds of educational outreach sessions and filled 450 open positions. Notably, the EEOC hired additional front-line staff, including intake staff, investigators, mediators and trial attorneys, after the agency’s staffing levels in 2020 had dropped to the lowest level in four decades.

2023 Budget Justification

The 2023 budget requests $464.65 million for the EEOC, representing about a 10% increase over the 2022 enacted level. According to the budget justification, the EEOC’s 2023 priorities focus on three broad areas: racial justice and systemic discrimination on all protected bases, pay equity and the civil rights impact of the COVID-19 pandemic.

Additionally, the EEOC intends to continue rebuilding and strengthening the agency in 2023. The EEOC wants to continue to invest in hiring and training to empower its staff to advance the agency’s mission and vigorously enforce the laws entrusted to the EEOC.

What’s Next?

These signs indicate that employers should be prepared for a potential uptick in investigations, mediations and lawsuits. As such, employers should review their workplace policies and procedures to ensure compliance with all applicable employment laws.

Cybercrime and Benefits Plans

Tue, 24 May 2022 15:27:19 GMT

According to recent estimates from the University of Maryland, there is a cyberattack every 39 seconds. Data breaches and cyberattacks are daily headlines—and employee benefits plans are no exception to that threat.

In fact, employee benefits plans are even more vulnerable as the coronavirus pandemic continues. Organizations and benefits providers are relying heavily on electronic access, ultimately creating new vulnerabilities.

The Risks

Virtually any type of employee benefits plan is vulnerable to hackers. The plans can be exposed to risks relating to privacy, security and fraud.

Retirement, savings and health plans are attractive targets for cybercriminals seeking access to plan assets and the personal information of participants and beneficiaries. Sensitive information is valuable information when it comes to cyberattacks.

Benefits plans are at risk as a result of the following factors:

Personally identifiable information such as Social Security numbers, birthdates and email addresses have significant value to hackers. That information can be misused over a long period of time since it is permanently associated with an individual.
Financial information , including enrollment data, account balances, direct deposit information and compensation are highly attractive. Hackers could target those online accounts to request loans, distributions and withdrawals.
Lastly, there are multiple attack points for hackers since benefit plans are connected to several outside service providers, such as those that offer retirement plans, health insurance, vision insurance, dental insurance, short-term or long-term disability insurance, and flexible spending accounts.

Some examples of cyberthreats include phishing, malware and ransomware attacks. Lost or stolen mobile devices, laptops and flash drives that hold personal information are additional tangible threats to benefits plans.

The Consequences

Cyberattacks on benefits plans can have substantial consequences for all parties involved. Consider the following:

Significant costs may be incurred in detecting the extent of the breach, investigating and managing the incident response, recovering compromised data and restoring overall system integrity.
The theft of personally identifiable information and other plan assets may result in monetary losses to participants, beneficiaries, the plan, the plan sponsor and service providers.
Organizations may experience operational disruption and reputation damage as a result of a security breach. Additional costs will be incurred to respond to and resolve either of those issues.
Breaches of health plans may result in potential violations of the federal law that restricts release of medical information, exposing the plan sponsor and service providers to fines.

Mitigating Risks

As many employees and providers may be working from home, it’s especially important to understand cyberthreats and how to proactively protect sensitive organization and employee information. To mitigate cyber risks, consider the following measures:

Properly monitor technology . To better protect and control data, it’s important to maintain up-to-date technology across the organization. Identify current vulnerabilities by conducting a gap analysis, penetration testing or other assessments.
Educate employees . Start with properly training employees, especially those who are working remotely, on how to handle personnel data. This could be as simple as compiling and sharing cybersecurity tips. Think about physically protecting electronic devices and information (e.g., locking laptops and hiding information on camera) in addition to secure document storage and destruction. Pay special attention to common risks like passwords, attachments and Wi-Fi networks. Employees should always be vigilant, but may have their guards down while working from home.
Educate participants . Similar to the points above, it’s important to educate participants about cybersecurity and different kinds of potential threats. It’s a good idea to thoroughly explore and ask questions about service providers’ security policies.

To shift cyber risks, consider the following measures:

Review contracts . Legacy contracts don’t consider modern-day cyber risks. It’s important to review contractual arrangements to ensure vendors provide an appropriate level of protection against cyber risks.
Obtain comprehensive insurance policies . Cyber liability insurance covers financial losses that result from data breaches and other cyber incidents. Most policies include both first-party and third-party liability coverages. It’s important to review and understand business insurance policies to understand whether additional coverage is needed.

With many employees working remotely as a result of the pandemic, plan sponsors should consider updating work-from-home policies to include cybersecurity clauses.

Other Considerations

Open enrollment season is a good time to carefully review organization and vendor security technology and policies, along with any contracts, insurance or other coverage. All parties involved should have adequate data protection strategies in place.

Always be prepared for the worst to happen. In the unfortunate event of a security breach, it’s important to be prepared with a basic communication and action plan. Even better, incorporate security breaches in an organization’s comprehensive reputation management plan. Keep in mind all internal and external audiences, and appropriate actions to protect information and restore overall system integrity. If not handled quickly and appropriately, reputational damage could be an additional threat to all parties involved in employee benefits plans.

Click here to download a pdf of the Top Tips to Avoid Cyberattacks.

To learn more about mitigating cyber risks in today’s digital world, contact SimcoHR today.

DOJ Issues Guidance on Opioid Addiction and the ADA

Tue, 24 May 2022 15:13:57 GMT

On April 5, 2022, the U.S. Department of Justice (DOJ) issued guidance on how the Americans with Disabilities Act (ADA) can protect individuals with opioid use disorder (OUD) and other drug addictions from discrimination.

ADA Background

The ADA is a federal law that prohibits employers with 15 or more employees from discriminating against individuals based on disability.

Drug Addiction as a Disability Under the ADA

The DOJ’s guidance explains that individuals with OUD typically qualify for ADA protection because drug addiction is a physical or mental impairment that often substantially limits one or more major life activities. Individuals in recovery from drug addiction may also qualify for ADA protection if they would be limited in a major life activity without treatment or services to support recovery.

Exception for Current Illegal Use of Drugs

The ADA’s protections do not apply if an individual is engaged in the “current illegal use of drugs.” This is generally defined as illegal use occurring recently enough to justify a reasonable belief that this use is current or that continued use is a real and ongoing problem. The definition does not include the use of a prescribed medication under the supervision of a licensed health care professional.

Workplace Policies

The DOJ guidance clarifies that employers may implement reasonable policies or procedures, including drug testing, designed to ensure individuals are not engaging in current illegal drug use.

Preventing discrimination based on drug addiction is a key part of the DOJ’s efforts to combat the opioid epidemic.

Attracting and Retaining Employees During the Great Reshuffle

Tue, 24 May 2022 14:59:28 GMT

The labor market is a bit unpredictable at the moment. Economists previously warned of a “Great Resignation,” a time when employees were expected to quit in record numbers and leave considerable vacancies in the workforce. This actually happened somewhat—according to the Bureau of Labor Statistics (BLS), there were a record number of resignations at the end of 2021. Although the number of quits dropped at the beginning of 2022, the employment market is back to experiencing record-high quit rates.

However, while mass resignations still took place, the concern about massive numbers of workers leaving the workforce hasn’t come to fruition. Rather, instead of quitting the workforce entirely, employees have simply been finding better jobs. Economists have begun referring to the situation not as the Great Resignation but as the “Great Reshuffle.”

This article explains how employers can focus their attraction and retention efforts to capitalize on this moment of worker fluidity.

Overview of the Employment Situation

During the COVID-19 pandemic, many workers became disillusioned with their positions. Some were concerned about having to work in person despite fears of infection; others struggled to manage both work and child care responsibilities. Many of these workers were entry-level and also lacked basic employee benefits.

Summarily, worker grievances became more salient even as working conditions became less safe due to COVID-19. Finally, toward the end of 2021, many workers hit their breaking point and opted to leave their current employers. Employees’ key decision factors revolved around compensation, benefits and the flexibility of remote and hybrid work.

Economists initially feared these employees would stay out of the workforce, living instead off savings accumulated during the pandemic. But in recent months, that hasn’t happened. According to the BLS, employee quits reached a record high of 4.5 million in March 2022. However, total employment has trended up, with total nonfarm payroll employment rising by 431,000 in March.

This means that workers who left their unfulfilling positions seem to be seeking more rewarding careers. Sectors hit hardest by mass resignations include food services, health care, transportation, warehousing and utilities, according to BLS data. Effectively, industries that employed large numbers of in-person workers throughout the pandemic appear to be struggling the most to retain talent.

Employer Attraction and Retention Tips

It’s impossible to make every employee happy with a single workplace solution; there is nuance to every resignation. However, there are some common strategies employers can explore when trying to attract and retain workers who want something more from their careers.

Invest in Worker Career Growth

One of the best ways to figure out what perks employees want is to simply ask them. According to LinkedIn’s Global Talent Trends survey, employees say they want more professional development (59%), workplace flexibility (48%), and mental health and well-being resources (42%).

Investing in workers by expanding professional and well-being opportunities is the opposite of what employees participating in the Great Reshuffle are used to doing. Employers can simultaneously enhance their staffing levels and worker skill levels by offering these workers a chance to enrich their careers via upward mobility. Pairing these programs with additional mental health resources can also help employers scale their operations while reducing cases of burnout.

Offer Flexibility

As previously mentioned, LinkedIn’s survey shows that 42% of workers are looking for greater workplace flexibility. This could mean allowing employees to work from home in some situations, letting employees choose their working hours, permitting employees to take time off unexpectedly or allowing any number of workplace arrangements.

Essentially, a “flexible” workplace compromises where, how and when employees work. Given the desire for flexible working conditions, adding such opportunities could be an easy way for employers to attract and retain workers. However, this is really only an option for sectors that don’t rely on in-person workers.

Provide Stability and Safety

Mental health and general well-being are now commonly discussed in employment conversations. After enduring the COVID-19 pandemic for so long, workers refuse to compromise their well-being for a paycheck. Employers can help demonstrate how much they value their workers by expanding mental health and well-being resources. Providing such assistance can reduce potential burnout and help retain employees longer.

Reach Out Directly

At the end of the day, the most worthwhile workplace offerings will be the ones employees desire. While some solutions are generally universal, such as increased compensation, employers may uncover additional options by reaching out directly to employees. In other words, employers can ask employees what perks or benefits would convince them to stay with the organization longer. This could even uncover overlooked solutions that might make employees just as happy as other more costly options.

Conclusion

There’s no one solution to the current labor market issues. But, the good news is that there still seems to be a high number of potential workers available; it’s just a matter of attracting and retaining them. By listening to employee desires and offering tangible perks, employers can help maintain their staffing levels.

Reach out to SimcoHR to discuss your attraction and retention strategy or request additional workplace guidance

Report Illustrates Impact of Employee Mental Health on Businesses

Tue, 24 May 2022 14:44:49 GMT

One-third of employers report significant impacts on business stemming from the strain on their employees’ mental health, according to a recent survey from The Hartford Financial Services Group.

The Hartford claims data found that mental health issues are among the top five reasons U.S. workers file for short-term disability, excluding pregnancy. Employees diagnosed with physical injuries or illnesses typically take double or triple the time to recover when mental health issues are also present.

“Our new data on stigma is a wake-up call. As the U.S. economy is rebuilt, we urge business leaders to continue to prioritize employee mental health—fostering stigma-free company cultures, increasing access to resources and encouraging early treatment.”

- Christopher Swift, chairman and CEO at The Hartford Financial Services Group

The majority of surveyed employers (70%) report mental health as a serious workplace issue, with over half (52%) reporting significant or severe workplace issues due to substance abuse. Unfortunately, there are still major barriers to treatment. Nearly three-quarters (72%) of employers said the stigma surrounding mental illness prevented employees from getting help.

Employees said mental health issues caused trouble focusing, increased irritability, missed time from work, an inability to collaborate and missed deadlines.

Despite pandemic-related challenges, most employees agree that their company culture has improved around supporting mental health. More than half of employees said their company has become more accepting of mental health challenges in the last year. In general, employees also say their companies provide flexibility around mental health, encourage mental health discussions and create an open and inclusive environment.

Employers gave themselves higher ratings of success across all categories, indicating there is still room for improvement in continued employer education and communication. These findings from The Hartford illustrate the significant impacts of employee mental health on today’s workplaces.

For additional workplace mental health information and resources, reach out to SimcoHR.

EEOC and DOJ Issue Guidance on Artificial Intelligence and ADA Disability Discrimination

Tue, 24 May 2022 14:24:06 GMT

On May 12, 2022, the Equal Employment Opportunity Commission (EEOC) and U.S. Department of Justice (DOJ) each issued new technical assistance documents about how employers’ use of artificial intelligence (AI) and other software tools to make employment decisions may result in unlawful disability discrimination under the Americans with Disabilities Act (ADA).

Important Information

Employers and Software Use

Employers increasingly use software tools to help select new employees, monitor performance, determine pay or promotions, and administer or score tests. Without safeguards, this use may result in ADA violations.

ADA Concerns

The ADA requires employers with 15 or more employees to provide reasonable accommodations and have other processes in place to ensure that their software tools do not unfairly rate or screen out qualified individuals with disabilities.

EEOC Guidance

The EEOC’s new guidance focuses on the following three ways an employer’s use of software tools for employment decisions may violate the ADA:

· The employer does not provide a reasonable accommodation necessary for an individual to be rated fairly and accurately by the software;

· The software “screens out” an individual with a disability, even though the individual is able to do the job with a reasonable accommodation; and

· The software makes disability-related inquiries or includes medical examinations.

The EEOC also provides best practices to help employers avoid these violations.

DOJ Guidance

The DOJ’s new guidanc e provides a broad overview of rights and responsibilities under the ADA. It also provides examples of the types of software tools employers use, clarifies that employers must consider various disabilities when designing or choosing their software, and explains when an employer using software tools must provide a reasonable accommodation.

Scams to Watch Out for and How to Protect Yourself

Mon, 09 May 2022 18:23:15 GMT

The top three scams to watch out for are identity theft, imposter scams (posing as an agency) and online shopping. Scams have been around for quite a while. The Information Age or Computer/Digital Age that has caused society to shift to technology has brought us new ways to be scammed. If you are computer illiterate or have minimal knowledge, you could easily find yourself to be the victim of a scam.

Don’t let it be you

Scammers typically feed on our fears. Whether we need debt relief, worry about getting sick during a pandemic or fear we may miss out on something, like a good deal, that is when they like to strike. Often it is something with an emotional connection. Have you heard of the one where a grandchild calls and says they are out of the country and find themselves without money? The scenarios are endless! This can be hard for those who are going through a rough time, are ill or are older.

So how do we protect ourselves?

These days, we need to be hyper-vigilant! We need to be aware. Find a trusted friend, relative or advisor that you can refer to with questions when you are uncertain.

First, if you think you have been a victim of a scam, it benefits you to act quickly. You will want to report your incident to law enforcement. You can also go to reportfraud.ftc.gov . You will want to contact your payment provider if you have been scammed out of money to see if you are able to get your money back. Sometimes there are time limits.
If you find yourself on a call and have engaged in a conversation, do not push any buttons (like 1 for “yes”, 2 for “no”), not even to get off their list! This can be portrayed as an acknowledgment.
Don’t trust the caller ID. Scammers can create fake caller IDs.
Don’t do anything urgently. If you feel pressured, hang up!

Types of Scams:

Robo calls for health related items, cleaning supplies, and debt relief.
Coronavirus scams: cures, test kits, vaccine offers. Report to ftc.gov/coronavirus/scams
Marketplace SEP Scams. No government will call, text, or email you without you making the initial contact.
Unemployment Insurance Benefit Scams. Contact Identitytheft.gov .
Amazon & Apple Scams regarding a FedEx package pick up.
Tech Support Scam: companies will not call you for a problem on your computer.
Online Dating Scam: the costliest scam reported in 2020. Seniors are often the victims. Scammers ask for money after developing trust.
Family Emergency Scam: Scammer pretends to be a family member or grandchild and asks you not to tell anyone.
Paying Rent or Eviction: Always want money upfront.
Impersonation of an agency.
An email asking for a gift card for various reasons.

Resources:

1-877-FTC-HELP
AnnualCreditReport.com
www.donotcall.gov
https://www.consumer.ftc.gov/articles/how-block-unwantedcalls

New Law Establishes Hotline for Sexual Harassment Complaints

Mon, 25 Apr 2022 14:50:40 GMT

On March 16, 2022, the state enacted a new law that requires the New York State Division of Human Rights (Division) to establish a toll-free hotline for individuals to make complaints of workplace sexual harassment. The new law, effective July 14, 2022, also provides free legal assistance to individuals who contact the hotline.

New Yorkers can now call 1-800-HARASS-3 to connect with a pro-bono attorney on sexual harassment issues.

Employer Impact

The new law amends the state’s existing Human Rights Law—which applies to all employers in the state—to strengthen its current protections against workplace sexual harassment. Under the amendment, the Division must work with the New York State Department of Labor (NYDOL) to update “any materials employers must post or provide to employees regarding sexual harassment” so they include information about the new hotline.

Expected Updates

The current law requires employers to provide employees with a written workplace sexual harassment policy and annual training on workplace sexual harassment prevention . In addition, the Division provides a model workplace poster on sexual harassment prevention as an optional tool for directing employees and others to an employer’s sexual harassment prevention policy. Thus, employers may expect these and other materials to need updates starting July 14, 2022. All employers in the state should watch for more information from the Division and NYDOL.

Additional Hotline Details

The amendment requires the new hotline to operate during regular business hours. It also requires the Division to recruit attorneys with experience in providing counsel related to sexual harassment matters to provide free legal advice to hotline callers.

Federal Unemployment Tax Credits Reductions

Mon, 25 Apr 2022 14:37:11 GMT

When the high unemployment rates started because of the pandemic, it caused several states to borrow from the federal unemployment account to supplement their shortages. The federal government says that those affected states have until November 10, 2022, to repay those loans.

There are nine states affected in total: California, Colorado, Pennsylvania, Connecticut, Illinois, Massachusetts, Minnesota. New Jersey, and New York.

What It Means for Those States Affected

Employers in the nine states mentioned above face a possibility of having an uptick in their 2022 FUTA. States that have outstanding loans with the Fed that are not paid off by November 10, 2022 will be in what is known as FUTA credit reduction.

The full FUTA rate is six percent with a 5.4% credit given in normal circumstances for a net rate of .6%. Each year, a state has unpaid loans as of November 10, that credit is reduced by .3%, thus driving up the net FUTA rate by .3%. Therefore, in the first year, the net FUTA rate would go from .6% to .9%, which is in effect, a 50% uptick.

Part of the issue is that it is not known until November. Your payroll company always calculates FUTA at the normal net rate of .6%. If after November a state is considered to be in credit reduction, that is not calculated until the end of the year and there could be a big additional liability coming to the client all at once, versus having it spread throughout the year.

Remote Work & Unemployment Tax

The increase in remote working has brought some hiring challenges and tax issues that shouldn’t be overlooked. Forty-nine percent of employers were required to file in at least one new state, with eight percent filing in at least 11 states. It makes it complicated to know which state’s law covers those employees for unemployment tax purposes.

State unemployment tax covered is determined by the following test:

The localization of the majority of an employee’s services
The location of the employee’s base of operations
If the employee performs services in the state from which services are directed and controlled
If the employee works in the state they live in

These conditions are in descending order of priority. When a condition can decide the state where the employee is covered, the other conditions that follow do not need to be considered. However, because the localization of services according to this four-part-test, it may not help decide the state of coverage when an employee is dividing up time evenly between two states. Deciding the base of operation could also be a gray area for many.

Source:

https://news.bloombergtax.com/payroll/futa-credit-reductions-pose-potential-threat-for-2022

The Best Benefits to Avoid the Great Resignation

Mon, 25 Apr 2022 13:47:25 GMT

According to recent government statistics, employees are walking away from their jobs in record numbers. During this period of mass resignation (sometimes referred to as “the great resignation”), employers need to demonstrate their value to employees or risk losing them.

Here are some of the most attractive benefits employers are using to strengthen their attraction and retention efforts:

Affordable Benefits, Generally

After enduring the worst of the COVID-19 pandemic, many front-line, low-wage or low-level employees concluded that their labor wasn’t worth their compensation. Savvy employers have picked up on this and are beginning to offer more attractive benefits to employees. Even modest benefits can make a huge difference when courting employees.

Retirement Plans

Only 62 percent of workers feel secure about their ability to save enough to retire, according to the Employee Benefits Research Institute. Providing employees with retirement plan options, such as a 401(k), can be a great way to add value and financial security to a position.

Flexible Work

Surveys find that the majority of workers who worked from home at least some of the time during the pandemic want to retain that perk indefinitely. All evidence indicates that if employers want to stay competitive, they will need to allow for some flexibility.

Personalized Well-Being Resources

Personal well-being has never been more important to employees than during the COVID-19 pandemic. That’s why some employers are tacking on benefits such as mental health counseling, financial planning assistance and student loan repayment plans.

Preparing for an OSHA Inspection

Fri, 22 Apr 2022 14:59:18 GMT

The Occupational Safety and Health Administration (OSHA) is the government agency that monitors and enforces compliance with workplace safety laws. Under the Occupational Safety and Health Act, Compliance Safety and Health Officers (CSHOs) have the authority to inspect the facilities of any employer subject to OSHA’s regulations. Employers have a right to request a warrant for inspection. Although it may buy time, it will likely broaden the inspection and give the CSHO a negative impression.

Common Reasons for an OSHA Inspection

Imminent danger situations
Fatalities or severe injuries reported to OSHA
Worker complaints
Referral inspections (other agencies, third parties or media)

Preparing for an OSHA Inspection

Have principal contacts for the inspection. Document the list of designated employees and train them on all aspects of an OSHA audit. Ensure enough personnel are trained in case of a scheduling conflict.
Decide where the CSHO will be placed and where employee interviews will occur.
Have updated safety documentation prepared to be presented to the CSHO.
Train all managers on how to contact the proper personnel and where to place the CSHO while everyone is being notified.
Assemble an inspection kit. This kit should include:
A camera for video and photography recording
Required personal protective equipment (PPE)
Labels or stamps to mark information that should be tagged as "confidential" or "trade secret"
Basic facility information (e.g., type of work performed, number of employees, names of management personnel and a list of contact information)
Contact information for the local OSHA office
Testing equipment (Check calibrations and expirations on equipment regularly)

Safety Documentation to Have

OSHA 300 Form for the current year and the previous five calendar years
OSHA 300A Form for the previous five calendar years
Injury and incident reports for the current year and the previous five calendar years
OSHA 301 Forms (Most state workers' compensation forms are acceptable substitutes.)
Completed training programs
Safety data sheets (SDSs)
Written safety compliance programs

When the OSHA Compliance Safety and Health Officer Shows Up

Be polite. Greet the office and ask to see their credentials, if they do not offer to show them. Confirm those credentials, or call your local OSHA office for any questions.
Place the CSHO in the pre-determined private conference room or office.
Notify the designated company employees who will need to take part in the inspection.

During the Opening Conference

Determine the purpose of the inspection. If there has been a complaint, ask for a copy of the complaint. OSHA will protect the identity of any employee who has submitted a complaint.
Define the scope of the inspection, and limit consent only to the areas cited in the complaint. This is the time to configure a route for the walk-around, which should be as limited as possible.
Identify areas of the workplace or documents that might contain trade secrets. Confirm with the CSHO that photographs and/or documents containing information about trade secrets will remain confidential.
Discuss the process for conducting employee interviews and producing documents. If possible, schedule employee interviews so shifts are covered.
Ask the CSHO to make all requests for company information and document in writing. Your company’s legal counsel should review all requests for documents and information, as well as all information and documents provided.
Gather your inspection equipment.

During the Walk-Around

Begin the walk-around. Make sure everyone has the required PPE and is following the proper safety protocols of the site.
Keep the route as limited as possible.
Understand the plain view doctrine. This means a CSHO can investigate any hazard observed while walking through the premise.
Document the CSHO’s findings and your own findings by taking detailed notes.
Make sure to take pictures, samples and measurements of anything the CSHO takes, and at the same time. Your company can request that samples and monitoring take place at a time when the company can conduct its own sampling and monitoring.
Complete “quick fixes” right away. If you or the CSHO identifies any quick fix items, have them taken care of immediately. The CSHO will take these actions as proof of your company’s willingness to comply with safety and health laws.
Do not interfere with employee interviews. The CSHO has the right to conduct employee interviews in private. Employee interviews may involve labor representatives, rank and file employees, and management personnel. If there is an interview of a company decision-maker, then it is highly encouraged to have a representative present as any statements made are considered binding admissions on the employer.

During the Closing Conference

Request copies of all OSHA samples and monitoring reports from the CSHO.
Ask the CSHO to provide you with an acknowledgment of receipt for all documentation provided during the inspection.
Provide the CSHO with the name, title and contact information of the person(s) to whom all OSHA correspondence should be directed.
List out any alleged violations that have already been corrected. If directed by legal counsel, provide additional information and documentation relevant and supportive of the company’s position as well as any information which shows abatement of any alleged violation.
Do not make any impulsive commitments, for example corrective actions or dates.
Discuss possible violations. Understand that only the OSHA Area Director can issue citations, and this process can take up to six months after the inspection. The Area Director may rely on a CSHO’s recommendations to issue a citation, but CSHOs may be hesitant to address whether they will recommend a citation during their visit to your facility.

After the Closing Conference

Try to obtain all sample and monitoring reports from OSHA.
Provide the company’s legal counsel with copies of all of the documents provided to OSHA and all of the notes, photographs, videos, etc., taken during the inspection.
Reference an up-to-date copy of OSHA’s Field Operations Manual. Look this over to determine whether there were any issues during the audit. Any information found can be used as supporting documentation to negotiate a settlement.

Citations

If your facility receives citations from OSHA, you should:

Post the citation. Post citations in all areas in which the violation occurred. The citations must be posted for three working days or until the violation has been corrected, whichever is later.
Notify your legal counsel. Immediately notify the company’s legal counsel about the citation and send a copy of the citation to them.
Start the Abatement Process. Review all areas noted by the CSHO and all violations from previous inspections (if any), and correct any issues that were found within the time frame stated on the citation. Document the corrections to show that abatement was completed. It is important to make sure all hazards are corrected, or you may be assigned larger penalties during subsequent inspections.
Make note of all deadlines. This avoids creating a short turnaround time to complete abatement measures.

Violation Classifications and Penalty Amounts of OSHA Citations

De Minimis
Violation based on technical standards, and does not involve any threat to the safety and health of employees.
Typically, doesn't carry any penalty.
Other Than Serious
Classified as unlikely to cause serious physical harm or death.
$14,502 per violation.
Serious
Hazards that could cause serious bodily harm or death.
$14,502 per violation.
Willful
The employer committed the violation knowingly or with indifference.
$145,027 per violation.
Repeated
A hazard of a same or similar standard that the employer was aware of before, received a citation for and has not mitigated.
$145,027 per violation
Criminal
A violation that caused a death and was willful in nature. A violation of this nature is punishable by a misdemeanor conviction and a significant monetary penalty.
Maximum Penalty: Not more than $250,000 for an individual or $500,000 for an organization and up to six months in jail.

Appeals Process

Once you receive a citation, you have a few options for what to do. You can schedule an informal conference with the OSHA Area Director to discuss the violations and try to reach a settlement agreement. If you are unable to reach an agreement, then you can either pay the citation or file a Notice of Contest to pursue a formal hearing.

Informal Conference

You may request an informal conference with the OSHA Area Director to reach a settlement agreement. You are able to discuss citations, penalties, abatement dates or any other information pertinent to the inspection. Though they are informal, be prepared for the conference. Employers can present defenses to citations, and OSHA may agree to withdraw some citations or lower the penalty. Consider the following tips for productive informal conferences:

Schedule the informal conference promptly. The conference must be held before the end of the 15-day period for filing the Notice to Contest. Please note that there may be some differences in timelines and procedures between federal OSHA offices and agencies run by OSHA-approved state programs.
Discuss citations and remedial measures taken. If your goal is to have OSHA vacate the citation, be ready to explain why the citation is incorrect or unwarranted.
Use supporting documents. Even though this is informal, prepare and review your case with your company’s legal counsel. Use an evidence-based approach. Be sure that OSHA has objective evidence regarding each alleged violation. Explain any mitigating circumstances and showcase your company’s commitment to safety.
Keep track of all issues and their status. You want to make sure every item was resolved.

Remember, OSHA Area Directors want to reach a settlement. Their main goal is to make sure you rectify the identified hazards and are compliant. If you do not reach a settlement conference, then decide whether you should pay the fine or contest it. There may be a reduction in the penalty if the inspection went well; you may have to pay the penalty early in order to pay the discounted amount.

Formal Hearing

If you are contesting the citation, make sure to review timelines and dates for submitting requests and documentation. You must file a Notice of Intent to Contest within 15 working days. By filing a Notice of Contest, the file is transferred over to the Department of Labor to the Office of the Solicitor to begin litigation. A formal hearing will be scheduled and take place in front of an Administrative Law Judge. Formal hearings can be appealed in federal court.

For additional OSHA resources, contact Simco today.

Advice from a Licensed Insurance Agent, What to Expect with Medicare

Tue, 12 Apr 2022 19:27:10 GMT

When we see people who are looking for guidance on Medicare, we often hear, “I didn’t know all that had to be done just to retire!” Of course, everyone has a different experience based on their own unique needs, and that is why it pays off to learn ahead of time what it entails and to not procrastinate until the last minute to dive in. Here's some tips on what questions to ask, where to start, and who can help.

What questions you should ask about Medicare

If you are considering retirement you will want to know what your options are for your health insurance. Can you keep your current coverage, and if you do, how does that work with Medicare? Or doesn’t it? If it doesn’t, what are the consequences? Yes, there are consequences!

If you choose to enroll in a Medicare plan, what are the options? How do they work? What if I choose not to enroll in a Medicare plan? What are the consequences? Yes, again, there are consequences!

Where to start exploring Medicare options

Sound complicated? You are right! So, what do you do? You must educate yourself and find a trusted advisor. It also helps if you have a trusted family member or friend that can assist you and be a second set of ears. You don’t have to know it all, but you will want to find a trusted resource that you can reach out to.

What would I advise for first steps to exploring Medicare?

Attend a Medicare 101 Seminar to understand the basics of Medicare, a federally run program. Simco Capital offers these seminars at no charge. Call us to register at 585-750-3246, Option 2. Our Medicare Specialists are licensed insurance agents ready to guide you through the process.
Set up an appointment with a Medicare Specialist to review your unique situation and learn about your options.
Compare the available Medicare plans in your area, and decide what works best for you.

Who can you call about Medicare?

Simco Capital is here to be a resource for you not just at the time of your enrollment, but throughout the year. We specialize in helping you understand your coverage, assist with problem solving and re-evaluate your needs annually.

Our Medicare Specialists are versatile to meet with you when and how it’s convenient for you.
We can accommodate both in-person or online digital meetings and trainings.
We have a live person answering our phones.
We work with all the carriers--so you can see everything available to you.

How to Prepare for your Medicare Appointment

When you are looking for a Medicare plan it pays to be prepared. If you are prepared, you will make the most of your time, have a more accurate estimate of what your costs will be, and ensure that the plan you select will work for you.

Your Cards

Your Providers

List of your medications

You can create one yourself, use a summary from a recent doctor’s visit or call your pharmacy to get a printout. It is important to be specific about the medications you take! There can be a significant difference in the cost of medications depending on the dose or even whether it is a tablet or a capsule! Be sure to include percentages and grams for medications that are drops, lotions/creams, inhalers, etc.

Healthcare Review

Review your current healthcare needs, to get an idea of what services you typically use the most. How many providers do you see, and how many times a year do you see them? Do you have any upcoming services you need this year that you did not in the previous year? Do you have a surgery scheduled?

Plan Ahead for Service

Ancillary Benefits

Finally, think about any ancillary benefits such as gym memberships and healthy rewards/wellness programs. Do you want vision or dental coverage?

There can be a lot to think about when considering your Medicare plan options. Simco’s Medicare Specialists are licensed agents who can help you narrow down the options simplifying the process. How do you eat an elephant? One bite at a time, and a little help from a Simco Specialist.

Ready to set up your free consultation for you or a loved one about Medicare? Give us a call at 585-750-3246 , option 2, or email info@simcocapital.com . We’re here to help!

IMPORTANT: HR Compliance Updates

Mon, 28 Mar 2022 18:34:32 GMT

If you’re reading this article, you already know that owning or helping to run a business (especially in New York State) comes with constant change regarding rules and regulations. To keep you in the know and in compliance we have complied some upcoming legislation to be aware of.

NYS Sexual Harassment Hotline

On March 16, 2022, New York State enacted a new law that is requiring the NYS Division of Human rights to establish a toll-free confidential hotline for employees to make complaints regarding workplace sexual harassment. This law is slated to take effect July 14, 2022. It is intended to provide free legal advice to these individuals who contact the hotline. The hotline will be staffed during normal business hours. The lawyers staffing the hotline will be working on a pro-bono basis and will be forbidden from soliciting further representation of the individuals that they speak with.

Impact to Employers

The law is creating an amendment to existing New York State Human Rights Law which states that The NYS Division of Human Rights must work with NYSDOL to update “any materials” employers must post or provide to employees regarding sexual harassment, so they include the new information about the hotline. SimcoHR will continue to monitor this legislation as more information becomes available.

In January 2022, the Department of Labor announced a partnership with Wage and Hour Division (WHD) and National Labor Relations Board (NLRB). With all of these governing organizations we wanted to provide a reminder as to what these organizations are and their function.

· The DOL (Department of Labor) exists to “to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.”

· The Wage and Hour Division (WHD) is responsible for enforcing federal minimum wage, overtime pay, recordkeeping and child labor law requirements under the FLSA (Fair Labor Standards Act).

· “The National Labor Relations Board (NLRB) is an independent federal agency that protects the rights of private sector employees to join together, with or without a union, to improve their wages and working conditions.”

100 New DOL Investigators

In February 2022 the Department of Labor (DOL) announced its intention to hire 100 new investigators. This increase in hiring is signaling upcoming increased focus and prioritization of enforcement of those areas of law that fall under the jurisdiction of the above agencies.

Impact to Employers

It is recommended that employers review the following areas of compliance including their current practices:

The Family and Medical Leave Act

The Family and Medical Leave Act (FMLA) is a federal law that provides eligible employees of covered employers with unpaid, job-protected leave for specified family and medical reasons. Eligible employees may take up to 12 workweeks of leave in a 12-month period. FMLA can be complex especially when it is intersecting with state laws and the Americans with Disabilities Act (ADA). Being aware of these common mistakes can help to decrease the likelihood of making costly errors that leave your company at risk for non-compliance or discrimination. It is recommended that you review your FMLA policy and procedures as not to make these common mistakes:

· Not having an FMLA policy

· Untrained managers/supervisors

· Failing to provide required FMLA notices or in a timely manner

· No exact count of FMLA usage

· Overlooking the ADA

Exempt Employee Classification

For more information regarding this please read the April 2022 SimcoHR blog post titled “Exempt vs. Non-Exempt; Minimum Wage Increases and NY State Salary Threshold Increase 2022 .”

Independent Contractor vs. Employee

A complicated area of that law that typically creates angst for employers is determining whether an individual is an employee or independent contractor. Determining this distinction is critical and requires complex analysis. The employer must assess the actual work performed by the individual and the nature of the relationship between the individual and the employer in order to determine if that person is an employee or an independent contractor. It is vital to correctly determine if someone is an employee vs an independent contractor because individual’s have more protections as an employee and employers have more responsibilities to an employee vs. an independent contractor.

There are three main ideas to keep in mind when making this determination:

1. Behavioral Control

Does the company control or have the right to control what the worker does and how the worker does his or her job?

2. Financial Control

Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

3. Type of Relationship

Are there written contracts or employee type benefits (i.e., pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

If you have any questions/concerns about these upcoming laws and initiatives, there is no need to fret, because SimcoHR is here to help! We can provide personalized analysis and recommendations to your business to ensure you are in compliance with the current laws and regulations. Please reach out to your designated Simco Account Executive today!

Exempt vs. Non-Exempt; Minimum Wage Increases and NY State Salary Threshold Increase 2022

eeverson@simcohr.com (Elisha Everson) — Fri, 25 Mar 2022 18:03:05 GMT

Updated 3/25/2022

This article explains how to pay employees, as well as the new minimum wage that went into effect back on 12/31/2021. Non-compliance with the information could lead to repercussions during a DOL audit.

The New York State Department of Labor late last year published final rule regarding the increased salary thresholds to be considered exempt from overtime as well as changes to the minimum wage schedule.

Under both federal and New York law, employers must pay non-exempt employees at least the minimum wage for each hour worked and 1.5 times their regular rate of pay whenever they work more than 40 hours in a workweek. While most employees must be classified as non-exempt, federal, and state law include exemptions from the minimum wage and overtime requirements for certain employees, including bona fide professional, administrative, and executive employees.

Remember, it is not enough to simply pay an employee what an “Exempt” employee is supposed to receive and expect that employee to be classified as EXEMPT. They have to meet the criteria:

• Must be paid equal to the requirements set forth for the Exempt Qualifications (i.e. Administrative, Professional, Executive)
• Paid on a Salary Basis (Paid a Salary each pay period regardless of the hours they work. * with limited exceptions)
• Must meet the Job Duties Test for their position

If they do not meet ALL THREE of these criteria, then they can not be classified as exempt, and if an employer chooses to do so, an employer’s level of exposure to a Department of Labor Audit is greatly increased. The duties tests are further explained below.

Employees who meet the duties test under the Fair Labor Standards Act (FLSA) for executive and administrative exemptions must also meet the salary level requirements in New York in order to be exempt. New York’s exempt employee salary threshold will adjust annually in proportion to increases in the minimum wage. All rate changes will take effect on December 31st of each year.

Below is an overview of exemption tests under New York law.

Salary-Level Test (New York):

Administrative and Executive Exemptions:

For the administrative and executive exemptions, the minimum salary is 75 times the state minimum wage. The minimum salary differs based on where in the state the employee works.

Here are the minimum salary requirements currently in effect in New York:

NYC $1125.00

Other NY counties (Outside of NYC) $990.00
Remainder of Downstate (Nassau, Suffolk & Westchester counties) $1125.00
As of 12/31/2021 – Other NY counties (Outside of NYC) $990.00
As of 12/31/2021 – Remainder of Downstate (Nassau, Suffolk & Westchester counties) $1,125.00

Professional Exemption:

For the professional exemption, there is no minimum salary requirement under NY State law, but the federal Fair Labor Standards Act (FLSA) has a minimum. In this case, most New York employers would be required to meet the FLSA's minimum salary requirement for the professional exemption (in addition to meeting the federal and state duties tests).
Currently, to qualify for the professional exemption under the FLSA, an employee must be paid a salary of at least $684.00 per week ($35,568 annually).

Salary-Basis Test:

New York generally follows federal rules for the salary-basis test. To qualify for the state and federal exemption, an employee must receive their full salary for any week in which they perform any work. Salary reductions are not permitted due to variations in the quality or quantity of the employee's work.

For exempt employees, salary deductions are limited to the following circumstances:

• One or more full day absences for personal reasons other than sickness or disability.

• Absences of one or more full days due to sickness or disability if the deduction is made in accordance with a bona fide plan, policy, or practice of providing compensation for salary lost due to illness.
• To offset jury or witness fees, or for military pay.
• For penalties imposed in good faith for infractions of safety rules of major significance.
• For unpaid disciplinary suspensions of one or more full days imposed in good faith for serious misconduct, such as sexual harassment, workplace violence, drug, or alcohol use, or for violations of state or federal laws. The suspension must be imposed pursuant to a written policy applicable to all employees.
• In the employee's first or last week of employment if the employee does not work the full week; or
• For unpaid leave taken by the employee under the Family and Medical Leave Act.
Under federal and state rules, deductions from exempt employees' salaries for any other reason are prohibited.

Duties Test (New York):

New York's duties tests vary for each exemption and are slightly different than the federal duties tests.

Administrative Exemption:

To qualify for the administrative exemption under New York law:

• The employee's primary duty must involve performing office or non-manual work directly related to management policies or the employer's general operations.
• The employee must regularly exercise discretion and independent judgment; and
• The employee must:

o Regularly and directly assist the employer or an employee employed in a bona fide executive or administrative capacity; or
o Perform, under only general supervision, specialized or technical work requiring special training, experience, or knowledge.

NOTE: To see who typically falls under the Administrative Exemption, see the attached Administrative Exemption PDF

Professional Exemption:

To qualify for the professional exemption under New York law, the employee's primary duty must consist of performing work that requires advanced knowledge in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction and study.

The employee's work must:

• Require the consistent exercise of discretion and judgment.
• Be predominantly intellectual and varied in character (as opposed to routine mental, manual, mechanical, or physical work); and
• Be of such a character that the output produced cannot be standardized in relation to a given period.
• NOTE: To see who typically falls under the Professional Exemption, see the attached Professional Exemption PDF

Executive Exemption:

To qualify for the executive exemption under New York law the:

• Employee's primary duty must consist of the managing a customarily recognized department or subdivision of the enterprise.
• Employee must customarily and regularly direct the work of two or more other employees.
• Employee must have the authority to hire or fire other employees, or their suggestions and recommendations will be given weight; and
• Employee must customarily and regularly exercise discretionary powers.
• NOTE: To see who typically falls under the Executive Exemption, see the attached Executive Exemption PDF

An employee's "primary duty" is generally defined as the principal, main, major, or most important duty that the employee performs. The determination of an employee's primary duty must be based on all the facts in a case, with the major emphasis on the character of the employee's job.

Conclusion:

Before classifying employees as exempt from overtime, make sure that the employee satisfies the salary-level, salary-basis, and duties tests under both federal and state law. If an employee is covered by both the federal and state law but does not meet both sets of tests, consult with counsel and/or a CPA to determine how you should classify the employee in that situation.

Also note as of 12/31/2021:

The NY State minimum wage for Long Island and Westchester counties will increase from $14.00 per hour to $15.00 per hour

*Annual increases for the rest of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). Starting 2022, the annual increases will be published by the Commissioner of Labor on or before October 1. They will be based on percentage increases determined by the Director of the Division of Budget, based on economic indices, including the Consumer Price Index.

The NY State minimum wage for counties outside of NYC will increase from $12.50 per hour to $13.20 per hour.

How to Personalize Your Employee Benefits Offerings

Fri, 25 Mar 2022 15:07:35 GMT

Each workforce is comprised of unique individuals with diverse backgrounds and interests. So why opt for a one-size-fits-all benefits package? Instead, consider providing benefits options that are as unique as your employees. Doing so could be the attraction and retention tool that sets your workplace apart.

In fact, 73% of employees said having customized benefits made them more loyal to their employers, according to a MetLife survey. Additionally, the survey found that 83% of employees would trade a small pay cut for better benefits options.

This article outlines the value of offering personalized benefits and explains potential customization options.

The Value of Personalization

Different employees have different needs and values. Therefore, the same benefits offerings can’t satisfy everyone. For instance, many workplaces are multigenerational; the benefits needs of a 50-year-old man will likely differ from the needs of a 25-year-old woman.

If your organization is trying to appeal to current and prospective workers, consider tailoring your benefits options. This could mean expanding existing plan options or adding more voluntary perks. Either way, the end goal should be to give employees greater control over selecting benefits that are meaningful to them.

Personalized Benefits Examples

Allowing employees to choose from many benefits options might seem like an excellent solution, but that’s not necessarily the case. According to a Willis Towers Watson survey, 57% of employees prefer a moderate number of benefits options and indicated that too many choices would be overwhelming. This illustrates the need for your organization to think strategically about offerings; the options must be deliberate and valuable to at least some employees.

Below is a list of potential benefits and perks that could appeal to a variety of workers:

Robust retirement plans—According to a Willis Towers Watson survey, 67% of employees would trade a pay cut for richer retirement benefits.
Affordable health plans—Consider offering tiers of health plans, with high deductible plans that appeal to healthier workers and more comprehensive plans for those with greater health needs.
Family-building benefits—Simultaneously growing a career and a family can be challenging for working parents, but family-building benefits can help ease this burden.
Caregiving benefits—More employees are now caring for children, adults with disabilities and older adults due to the COVID-19 pandemic’s effects, meaning these benefits could be extremely impactful.
Flexible scheduling perks—While not a traditional benefit, schedule flexibility is a highly sought-after perk that can help balance employees’ work and home lives.
Mental health benefits—Mental health is a hot topic right now, and employees are looking for ways to better themselves and avoid burnout.
Financial wellness benefits—Personal finance troubles can affect every aspect of an employee’s life, so having benefits to help navigate such issues can be a significant lifeline.
Life insurance—Providing employees with life insurance options can give them and their families peace of mind should the worst happen.
Chronic condition management solutions—Chronic conditions affect millions of workers, so offering programs such as opt-in diabetes management plans can help save participants’ health care dollars.

While not all of these benefits options will appeal to all employees, this list shows some of the creative solutions other employers use to demonstrate value to their workforces.

Tips for Personalizing Benefits

Benefits personalization will vary by organization, but here are some general tips you can consider when assessing your own strategy:

Survey employees. One of the best ways to discover employees’ benefits desires is by asking them.
Conduct focus groups. Similar to a survey, consider meeting with employees in groups to solicit benefits feedback.
Maintain ongoing benefits conversations. As employees age and grow in their careers, continue to ask them about their evolving benefits needs.
Opt for variety. Consider offering different types of health plans or management programs that address specific health conditions.

Ultimately, personalized benefits will require meaningful conversations with employees. While it’s impossible to offer benefits that will meet all the needs of every single employee, maintaining open communication with workers can go a long way toward that goal. In addition, reaching out to employees will demonstrate your organization’s interest and investment in them.

Conclusion

Employees want to know they matter to their employers. Providing world-class benefits options can do just that. Moreover, offering a variety of meaningful options helps prove your organization’s commitment to your workers and their unique needs.

Contact SimcoHR to discuss potential benefits that can help satisfy the needs of your diverse workforce.

Ergonomics: Tips for Your Desk Workstation

Fri, 25 Mar 2022 14:28:53 GMT

If there was one benefit for some people during the shutdowns of the COVID-19 pandemic it was that many employers were forced to embrace the concept of employees getting work done while they were confined at home. While it wasn’t ideal for most of us to do our work and our kids’ school from home, the re-opening of schools has made the home work environment just a little easier. We, here at Simco, have embraced the hybrid work model; we are free to work from home, but the office is open to anyone who wishes to use it and there are certain times when teams are requested to be in the office for collaboration which can be essential to a team’s cohesion and efficiency.

While many of us have embraced working from home, it may have taken some time to get a workstation set up; and perhaps you have inherited some bad habits such as working from your couch (or your bed) with the laptop open on your lap. While it may be tempting to change up the scenery, it’s a bad idea for more than one reason. First, it’s unprofessional, inefficient, and probably unproductive, but it’s also a very poor ergonomic decision as well.

Ergonomics is the science of fitting a workspace to an individual’s needs with the goal of increasing efficiency and productivity while simultaneously reducing discomfort and the likelihood of injury. If you are an office worker you were most likely set up with a proper desk and adjustable chair. Perhaps you were given a standing desk or other alternative workstation set up. You have a rest for proper placement of your wrists and elbows, your monitor height was adjusted accordingly, and you have plenty of space for your work materials. Many of these conveniences may be lacking from the home work environment. Especially in the beginning when you couldn’t even find a desk to buy.

Poor ergonomics leads to reduced efficiency and can lead to long-term health issues including injuries to muscles, nerves, ligaments, and tendons. Musculoskeletal injuries can occur when you engage in repetitive movements or even because of poor posture. Neck, shoulder, back strains, eye strain, and the dreaded carpal tunnel are all results of poor ergonomics in partnership with repetitive motion. Here are some good posture tips to promote ergonomic health.

Chair

Your chair should be at a height that your feet rest comfortably on the floor with your knees approximately level with your hips, making sure that your seat is not pressing into the back of your knees.

Back Support

Your backbone should be straight, your shoulders back and your abdomen and buttocks pulled in, chin tucked. If your chair is preventing this try putting a cushion between the curve of your lower back and the back of the chair.

Desk

Your workspace surface should have space underneath for your legs and feet. If a surface is too low adjust the chair height accordingly. Your arms and wrists should be parallel to your legs at a 90-degree angle.

Computer Monitor

Your monitor should be 20-30 inches from your eyes. The top of your screen should be at eye level or below so that you have to look slightly down at your work. If glare is a problem, find a matte screen filter or turn off some or all of the overhead lights and close the blinds.

Eyes

When looking at your screen follow the 20-20-20 rule. Every 20 minutes look at an object at least 20 feet away for at least 20 seconds. Take a longer break of at least 15 minutes after every 2 hours that you spend on your device. If you wear contact lenses, give your eyes an occasional break by wearing your glasses instead and get regular eye exams. During this eye strain break you should take a minute to readjust your posture so that you’re not frozen in one position for more than 20 minutes.

Headsets

Use a headset if you frequently talk on the phone and type or write at the same time. A crooked neck throws your whole spine out of alignment.

Wrists, Elbows and Arms

Wrists should be kept in a straight and natural position when using the keyboard with your upper arms close to your body . Do not use your wrist rest while typing. Use it to take occasional breaks from typing. Keep the mouse and the keyboard on the same level surface, position your arms so that your hands are aligned with, or slightly below, your elbows.

Layout

Organize files and materials so that you don’t have to bend or strain to reach them.

Whether you are working from home or in the office, a proper workstation is necessary to maintain your best workplace health. Taking the time to give yourself a break from working, staying hydrated with plenty of good old H2O and having good posture will go a long way towards preventing injury and strain when you’re spending a lot of time at a computer.

Feel free to use this workstation assessment checklist to make sure that all of your employees are in their best ergonomic position.

Various Types of Home Insurance

Fri, 04 Mar 2022 19:32:40 GMT

Everyone is familiar with a high-level explanation of what Homeowners Insurance is, but what does it really cover? You know it covers your home and personal items from damaging events like a fire, theft or inclement weather, but what else? We have put together this resource for you to help you navigate your way to protecting your home.

What do I typically get with home insurance?

All mortgage companies require homeowners to purchase home insurance based on the replacement value of the property in order to approve the loan to purchase the home. A home insurance policy is very customizable based on the needs of the owner, however, certain components are standard.

Damages to Your Home

Your insurer will cover damages to your home or perhaps a complete rebuild if certain disasters strike. This includes vandalism, lightening, storms, fire or more. However, some things are not usually included in a standard home insurance plan such as damage from floods, earthquakes, a home not properly maintained, sheds, and other freestanding structures like a garage. However, you can purchase additional coverages separately if you need those protections added.

Personal Belongings

In the event of a disaster that your insurance policy covers, things like your clothes, appliances, furniture, and most things in your home will be covered. But how much is covered? A good rule of thumb is that approximately 50 to 70% of the amount you spend on your home insurance is what most insurance agencies will cover for your personal belongings and possessions. If you have a lot of valuable possessions like expensive jewelry, fine art, you will want to consider itemizing out what you have and purchasing a rider since a general home policy would only cover typically $1500 of stolen valuable possessions.

Personal Liability for Damages to Others

Lawsuits are costly and accidents happen. Liability coverage protects you from lawsuits others may file against you. This includes protection if your dog bites a jogger, the medical bills will be covered; or if a visitor slips on your wet floor and sues for lost wages, or pain and suffering, you’ll be covered.

Umbrella Policies for Extra Coverage

A few hundred dollars more on your policy can get you about $1 million more with an umbrella policy. Things that are not covered in your standard home policy, can be covered with an umbrella policy.

Temporary Stays While your Home is Rebuilt or Fixed

In the event that you are not able to stay in your home for a while, your additional living expenses portion of your policy would reimburse you for your hotel or renting costs. Make sure to look up your policy as there may be limitations as to what level of accommodations will be covered. There is a range of limitations options depending on how much you’d like to spend on your policy.

Various Types of Homeowners Coverage

You have a lot of options when it comes to home insurance. Not all plans cover the same items. The more you want covered, of course, the more it will cost. Essentially there are three levels of coverage to choose from:

1. Actual cash value

Actual cash value covers the cost of the house and the value or your belongings after depreciation is taken out. What those items are worth is what you’ll get back, not what you initially paid for them.

2. Replacement cost

Replacement policies will cover the actual cash value of your home and belongings without depreciation taken out. This would allow you to rebuild your home up to what you originally paid for it.

3. Guaranteed replacement cost or value

This is the most inclusive option offered and covers the costs to fix or rebuild your home even if it goes beyond your policy limit. This helps against inflation. But there is a ceiling that is usually 20-25% more than your policy limit.

What is not covered by home insurance?

Not all acts of God are covered in your homeowners policy. Depending on where you live, you may be in a flood zone or a place known for hurricanes or earthquakes. In these instances, you’ll want to purchase a rider for the protections you’ll need for living in those areas. Lack of properly maintaining your home will cause damages not to be covered. For example, insect and rodent damage to your home, mold and rot, and general wear are not covered. Damage from smoke from industrial or agricultural operations, and things like identity theft is not covered. Attacks from certain breeds of dogs typically are not covered. However, if your dog breed is covered and attacks, there are limits as to how much damage it will cover and you could be responsible for the remaining amount.

How much will you pay for home insurance?

Insurance agencies consider their risk from how likely the homeowner will file a claim. They’ll take a look at previous home insurance claims that were submitted by the homeowner, and claims that were previously filed on the property, and credit score. Other factors such crime rates in the area, building material availability, security features, condition of the home, heating type, pools, and what riders you purchase all add into your annual premium. A home in poor condition could increase your rate because the odds of filing a claim are higher.

How to save money on insurance?

A great way to save money on insurance is to add in safety features. Purchasing a security system that is tied into the police, installing smoke alarms, carbon monoxide detectors, sprinklers and dead-bolt locks can help reduce your cost of insurance.

Consider increasing your deductible to lower your premium but know that smaller “fixes” to your home could add up to be costly and come out of your pocket if you choose this route.

Packaging your policy with auto or health insurance at the same company may allow you to save on two premiums. Shop around to find an insurance company that offers discounts.

When renovating your home, consider what materials you will purchase. Materials less flammable typically cost less to insure.

When you pay off your mortgage, you can see your premiums drop because your insurer assumes that since you own the residence in full, you’ll take great care of it.

Review your policy annually to see if you still have the best policy for the best price, as well as look for changes to your home that could lower your premium since last time you’ve reviewed your coverage. If you’ve removed a pool, trampoline, or playground, installed security systems, or upgraded your electric, plumbing or roof, reach out to your insurance company to see if it saves you money.

Choose paperless billing and making your payments automatic from the bank could make you eligible for a discount.

Certain careers have special discounts such as engineering, firefighting, and teaching.

Make sure that your policy is based on how much it costs to rebuild your home, not it’s real estate value—or your premiums could be much higher that they need to be.

Limit the number of claims you make, as they increase your premiums or your insurer may drop you and therefore make it difficult and expensive to find coverage again