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Sneaky HR Tasks Eating Your Time (and How to Fix Them)

It’s time to tackle those sneaky HR time thieves and take back your calendar. Here’s how.

IT’S HERE!

Your FREE HR Checklist

Here’s your checklist of important tasks related to payroll, benefits, compliance, and general HR.

These tasks shouldn’t take up your workweek. But when systems fall short, they do. If you’re a small or mid-size business owner or HR leader, you probably didn’t get into this role because you love tracking down time-off requests, chasing signatures, or answering the same benefits question 14 times.

And yet… here we are.

Studies show that small business owners spend about 16 hours (or two full days) per week on HR-related administrative work.

Most businesses lose valuable time to the slow drip of small, repetitive “this will only take a minute,” tasks that quietly eat up the workweek. Add them up, and suddenly your strategic HR goals, like recruitment, retention, and leadership development, get pushed aside.

Here are some of the most common areas that may be draining your time.

Time-Consuming HR-Related Tasks

They seem small. But over time, these tasks drain your attention, your energy, and your progress.

1. Repetitive Tasks and Rework

Every time you hunt down a missing signature or resend login details, you lose time you could be using elsewhere. The common offenders? Answering the same employee questions over and over:

“How do I add my baby to insurance?”
“When do benefits start?”
“How many PTO days do I have left?”

Sound familiar?

Individually, these are quick answers. Collectively? They’re a constant interruption machine. When you stop to respond, you lose focus, break momentum, and push higher-value work further down your list.

🛠️ How To Fix It: Uncover the pain points. Which areas are bogging down the process due to repetition? Where can you create a self-service culture? This can mean establishing a simple internal HR hub (in your intranet, shared drive, or HR platform), short FAQs on benefits, PTO, payroll timing, and onboarding, or short videos that walk through routine processes.

Then, train employees to go there first. When someone asks a repeated question, send the link along with your answer. Over time, behavior shifts. HR becomes a source, not a help desk.

2. Correcting Payroll Errors

The latest software makes running payroll seem easy, but if something goes wrong, the liability is still yours. Miscalculating pay, outdated tax information, and manually tracking time off are time-consuming to fix, hard to catch, and expensive if you don’t, not just in terms of costs but also in lost time and eroded trust among your workers.

🛠️ How To Fix It: Automate what you can. Look for tools that let employees request time off directly, route approvals to managers, automatically update balances, and sync with payroll.

When automation handles the basics, HR shifts away from data entry to policy guidance. You’ll still handle exceptions, but you won’t be stuck crunching numbers late at night.

Or leave it to the experts by outsourcing payroll to an IRS-certified PEO. A PEO can simplify the payroll process with a cloud-based payroll portal for employers, online employee access to pay stubs, W-2s, benefits info, employee handbooks, and secure, paperless direct deposits. They can also take care of onboarding, payroll taxes, IRS deposits, benefits administration, compliance guidance, and provide HR support.

3. DIY Compliance Monitoring

Labor laws change constantly. Posting requirements update. Salary thresholds shift. Leave laws multiply. Keeping up with shifting deadlines, state-level compliance requirements, and studying the IRS’s recently updated guidance under the One Big Beautiful Bill Act. Trying to monitor all of this yourself is not only time-consuming – it’s also stressful.

One misstep can be costly. In 2025, the Department of Labor’s Wage and Hour Division recovered more than $259 million in back wages for nearly 177,000 employees. That’s an average of $1,465 per worker (the most since 2019).

🛠️ How To Fix It: Don’t carry compliance alone. Get expert help by partnering with a professional. Whether it’s through a PEO, outside counsel, or a compliance partner, get support that keeps you updated on requirements that apply to your business.

You’ll need advice on tricky employee situations, alerts on multi-state regulatory changes, new pay transparency rules, evolving paid leave requirements, changing wage-and-hour laws, new employment-related laws on AI, and much more.

🚀 Pro Tip: Stay compliant with our HR Checklist covering the latest updates and deadlines related to compliance, benefits, payroll, and general HR that you need to take care of each quarter. Download your free HR Checklist ➡️ HERE

4. Updating Employee Data in Multiple Places

Name changes. Address changes. Promotions. New pay rates. If you’re entering the same update into payroll, benefits, retirement platforms, and internal trackers, you’re doing triple-plus work and increasing the chance of errors.

🛠️ How To Fix It: Integrate your systems, invest in HR technology, or work with a PEO. A unified HR platform can help connect payroll, benefits, time tracking, and employee records, among other things.

With better integration, changes flow through automatically. That means fewer entries, fewer errors, and more free time.

5. Handling Every Employee Issue Personally

When you’re the only go-to for every conflict, complaint, or issue, your day gets hijacked fast. Some things absolutely belong with HR. But many could be resolved earlier and better by trained managers.

🛠️ How To Fix It: Upskill your managers by teaching them to give feedback, handle minor conflicts, and document specific issues. This doesn’t remove HR from the process; rather, it elevates the role, moving them from firefighter to advisor.

Stop the HR Busy Work, Amplify Your Impact

Normalizing HR busy work has real consequences, including burnout. Your top performers may feel overwhelmed by constant overtime or pressure to meet demands. It also creates dependence on key team members, making it difficult to delegate when only a few people hold essential knowledge or responsibilities.

Maintaining inefficient processes limits growth, slows project delivery, and prevents your team from focusing on strategic initiatives. 🛠️ How To Fix It: Partnering with an IRS-certified PEO can help. By taking on time-consuming tasks, PEOs help small businesses get back more time to focus on productivity and growth. In addition to saving time, a PEO can also save your business money by identifying inefficiencies, streamlining HR processes, and helping you make critical cost-cutting decisions.

Studies show that businesses working with a PEO:

☑️Grow twice as fast and are 50% less likely to go out of business

☑️Have a 12% lower employee turnover rate

☑️Have an ROI of 27.2 % per year, based on cost savings alone

☑️Experience double the a nnual median revenue growth, with an added 16% increase in profitability

If you constantly feel behind, the fix isn’t more hustle. It’s better tools, clearer processes, and the right support. A PEO can help you stop the small stuff from piling up, so you can invest your time where it matters most. And if you need help, just give us a call at📱 800-446-6567

Find Out What a PEO Can Do for You

If you’re a small to mid-sized business, a PEO can lighten your workload and strengthen your operations. Imagine focusing on growth while experts handle your payroll, taxes, benefits, HR, and compliance.

⬇️Read more about the advantages of working with a PEO in our series:

🔷 HELP WANTED: HR Team or PEO Partner

Investing in an HR team versus partnering with a PEO, which path is best for your small business? As your business grows, managing HR gets complicated – fast.

Should you build your own HR team or explore the benefits of partnering with a PEO? Here’s how to decide which choice best fits your business. ➡️Link #1Link #1Read More

🔷 NEW RESEARCH: More Small Businesses Are Turning to PEOs

Compelling research from the National Association of Professional Employer Organizations (NAPEO) shows that PEOs are helping small businesses scale – a game-changer in 2026.

Working with a PEO isn’t about outsourcing; it’s about upgrading how you manage HR. It’s about investing in smarter growth, happier employees, and peace of mind. In a business world that’s only getting more complex, that’s a benefit worth having on your side. Thousands of successful businesses are already doing it – and the data proves it works. ➡️Link #2Link #2Read More

IT’S HERE!

Your FREE HR Checklist

Here’s your checklist of important tasks related to payroll, benefits, compliance, and general HR.

About Propel HR. Propel HR is an IRS-certified PEO and a leading provider of human resources and payroll solutions for 30 years. Propel partners with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. For more information, visit propelhr.com

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The Productivity Playbook: How to Turn Outsourcing into a Strategic Win

Here’s your game plan for turning outsourcing into a winning streak.

IT’S HERE!

Your FREE HR Checklist

Here’s your checklist of important tasks related to payroll, benefits, compliance, and general HR.

Productivity is the secret sauce that separates teams stuck on the sidelines from those with winning streaks. Chances are you’re juggling hiring, compliance, benefits, culture, and about a dozen other priorities . . . all while the clock keeps ticking.

➡️➡️Link #1Link #1Link #1Read More: HR Forecast: What’s Changing & How To Get Ready

Your power play? Outsourcing. When used strategically, it boosts productivity, streamlines operations, and frees you up to focus on what actually moves the scoreboard – your bottom line.

First Quarter: What Productivity Really Means

In HR, productivity isn’t about sprinting faster – it’s about running the right plays at the right time.

True HR productivity means delivering meaningful outcomes with minimal wasted effort. Speed matters, sure, but impact matters more.

Fast hiring doesn’t matter if turnover remains high. Smooth payroll is great . . . unless errors keep forcing replays.

At its core, productivity is about consistent, high-quality execution that supports your business year-round.

Here’s the basic stat line. The fundamental formula HR teams use looks like this: Productivity = Total Output / Total Input.

📤Output: Projects completed, revenue generated, goals achieved

📥Input: Labor hours, number of employees, or financial costs

It’s simple math but powerful when you track the right metrics.

Why HR Productivity Is For Champions

When HR productivity is dialed in, your entire team plays better.

Here’s what that looks like on the field:

🎯Better Employee Experience. Faster responses, smoother onboarding, clearer policies – all retention fuel.

🎯Stronger Compliance Defense. Mistakes lead to fines, audits, and penalties – that’s expensive. Productive HR keeps risk off the scoreboard.

🎯Scoring Efficiency. In the Red Zone, the stakes are high, and scoring opportunities significantly increase. When your HR team isn’t buried in paperwork, they can make a more strategic impact by focusing on culture, performance, and growth.

🎯Leadership Trust. HR shifts from order-taker to trusted partner.

The results? A productive HR function is the engine that keeps your people – and your business – moving forward.

The Stats Don’t Lie: Proof from the League

The data backs it up:

➡️Flexibility & Remote Work. A Gartner report finds that 43% of employees working flexible hours say they are more productive. Gallup found that fully remote workers report the highest engagement levels.

➡️Engagement Matters. Highly engaged teams are 17% – 21% more productive than disengaged ones.

➡️The Productivity Gap. Top-tier companies grew more productive, while others saw declines due to inefficient collaboration and low engagement.

🎯Winning teams don’t guess; they measure, adjust, optimize, and power up.

The Box Score: Common HR Productivity Metrics

To know how your team is performing, you need the right stats:

📊 Output Metrics. Revenue per employee, output per hour, goals completed vs. assigned

📊 Efficiency Metrics. Time spent per task, employee utilization

📊 Quality Metrics. Accuracy and impact, not just speed

📊 Engagement Indicators. Engagement scores and absenteeism.

📊 Financial Metrics. Total Cost of Workforce (TCOW)

These numbers tell you whether your plays are working and what needs to be redesigned.

Second Half Adjustments

This is where smart teams pull ahead. One of the most effective strategies? Outsourcing to a Professional Employer Organization (PEO).

A PEO helps improve productivity by offloading time-consuming tasks while strengthening the entire employee lifecycle through MVP expertise and next-level HR tech.

🔥Think of it as adding multiple Tom Bradys to your roster.

THE GAME PLAN

Play #1: Reallocate Resources to Core Strengths

The fastest productivity gain comes from freeing your teams from admin overload. By outsourcing, you get:

✅Time Savings. Business owners can spend 20+ hours per month on HR admin-related tasks. Outsourcing frees up time for growth, sales, and strategy.

✅Administrative Relief. Payroll, benefits enrollment, and multi-state compliance tasks move off your plate and into expert hands.

✅A Team of MVPs. Outsourcing gives you access to a team of pros, ready to help when you need it.

Play #2: Build a Deeper Talent Bench that Flexes

An engaged workforce is naturally more productive.

💼 Lower Turnover. Companies using PEOs see 10%–14% lower turnover, reducing disruptions and retraining time.

💼 Big-league Benefits. PEOs provide access to Fortune 500-level benefits, boosting satisfaction and engagement.

💼 Faster Onboarding. Streamlined onboarding helps new hires get in the game.

Play #3: Upgrade Your Tech Stack

PEOs give small and mid-sized businesses access to advanced HR technology without the big-ticket price tag.

📊 Automation. Payroll and tax automation reduce errors and time-consuming fixes.

📊 Employee Self-service. Employees handle PTO, pay stubs, and benefits updates themselves with fewer interruptions for HR.

Play #4: Strengthen Your Compliance Defense

Compliance isn’t optional and managing it internally can drain focus fast. With a PEO on your team, you get:

🛡️Expert Guidance. A team of HR pros helps prevent fumbles and penalties. PEOs stay on top of federal, state, and local regulations, including ACA and FMLA.

🛡️Safety Programs. Proactive safety audits reduce workplace incidents and business disruption.

Play #5: Win on the Scoreboard

All these efficiencies lead to real, measurable stats:

🏆Faster Growth. Businesses using a PEO grow 7% – 9% faster than those that don’t. And are 50% Less Likely to Go Out of Business

🏆High ROI. The average annual return on investment is 27.2% based solely on cost savings.

💥That’s not just a win – it’s a blowout. It’s the stuff championships are made of.

FINAL CALL: Make Productivity Your Winning Play!

How far can you go? Productivity isn’t a one-time drill – it’s a GOAT mindset.

When you measure what matters, optimize repetitive work, and outsource strategically, you’re not just working faster . . . You’re working smarter. That’s for legends.

🔥Outsourcing is no rookie move. It’s a strategic productivity partner that helps HR shift from scrambling to scoring. And keeping that winning streak hot.

Ready to Turn HR into a Powerhouse?

Ready to hear your crowd ROOOAAARRR? 🎉 This power playbook is your first step.

➡️If you need some coaching or a huddle about your productivity game plan, we’ve got you all the way to the Super Bowl winning streak and beyond – just give us a call.

IT’S HERE!

Your FREE HR Checklist

Here’s your checklist of important tasks related to payroll, benefits, compliance, and general HR.

About Propel HR. Propel HR is an IRS-certified PEO and a leading provider of human resources and payroll solutions for 30 years. Propel partners with small to mid-sized businesses to manage payroll, employee benefits, compliance, risk, and other HR functions in ways that maximize efficiency and reduce costs. To learn more, visit propelhr.com

Featured

Scaling Smart: How a PEO Prepares Your Business for Growth

Is your business growing? Here’s how a PEO becomes a powerful advantage as you gear up for bigger things.

IT’S HERE!

Your FREE HR Checklist

Here’s your checklist of important tasks related to payroll, benefits, compliance, and general HR.

If you run a small or midsize business, you already know growth is exciting, yes — but also unpredictable, and sometimes overwhelming. That’s exactly why more business owners and HR leaders are choosing Professional Employer Organizations, or PEOs, not just to outsource HR tasks, but to grow smarter, faster, and more sustainably.

The Top 10

A PEO helps you scale without letting the behind-the-scenes stuff collapse under the weight of bigger payrolls, more onboarding, greater compliance risk, and higher employee expectations. It’s like adding an entire HR department overnight, minus the overhead and recruitment scramble. A few advantages include:

1. You Get HR Infrastructure Before You Actually Need It (Which Is Exactly When You Need It)

Most small businesses don’t feel the pain of HR complexity until it’s too late. Payroll errors start multiplying, employees want benefits you’re not equipped to provide, and suddenly you’re Googling state labor laws at 11:30 p.m.

A PEO lays the foundation before those cracks show. Payroll scales without drama. Whether you have 10 people or 110, payroll stays smooth, compliant, and on time. Onboarding becomes a real process and not a scramble. Templates, checklists, digital forms, background screening, and automated workflows ensure consistency as you grow. Policies adjust proactively. A PEO helps you build employee handbooks, update them with new laws, and create clear rules that reduce risk as your headcount increases.

2. A PEO Delivers the Big-Company Benefits Employees Want

Here’s the part that often surprises business owners: a PEO can give you access to benefits packages typically reserved for much larger companies.

Because a PEO pools together employees across its client base, you essentially get to “buy in bulk,” accessing high-quality benefits at lower rates. That means you can offer your team robust health plans, retirement savings options, and other top-tier benefits typically reserved for larger companies (and top talent expects).

🎯When employees enjoy comprehensive benefits without compromise, your company is seen as a long-term career option. Retention rises, and as every HR pro knows, that’s a growth strategy.

3. Compliance Stops Being a Guessing Game

Growth = risk. New states. New regulations. New employment laws. New reporting requirements.

This is where many small businesses unintentionally step into danger territory. The rules change constantly and the stakes are high.

A PEO becomes your compliance command center:

✅They track federal, state, and local employment laws.

✅They help maintain the required documentation.

✅They ensure new hires are classified correctly.

✅They reduce risk with structured workplace policies.

✅And because of the co-employment relationship, many PEOs also share certain administrative responsibilities – meaning you’re not alone if something goes sideways.

🎯Growing is risky. Growing without compliance support? That’s gambling.

4. HR Technology You Don’t Have to Build Yourself

Scaling is smoother when everything is connected, such as payroll, onboarding, PTO tracking, benefits enrollment, performance management, and reporting. But building your own HR tech stack or licensing multiple vendors gets expensive fast.

🎯A PEO delivers the all-in-one HR command center designed for your business. Better data, better workflows, better decision-making.

5. A PEO Frees Up Time (A Lot of It)

If you’re a business owner, your job is to grow the business, not troubleshoot payroll deductions. If you’re an HR manager, your job is to support the people strategy, not drown in admin work.

A PEO takes on repetitive, time-consuming tasks, such as processing payroll, managing benefits, handling tax filings, and preparing compliance documentation. The more you grow, the more time you reclaim, instead of watching your workload escalate with each hire.

6. You Gain a Team of HR Experts Without Expanding Your Staff

Growing companies don’t always have the luxury of immediately hiring a full HR team — HR generalists, benefits specialists, payroll administrators, compliance officers, recruiters, risk managers, the whole lineup.

A PEO gives you access to exactly those roles, on-demand expertise, without the full-time salary load.

Need help rolling out a new PTO policy? Preparing for benefits renewal? Handling a sensitive employee relations issue? There’s an expert for that. It’s like having a seasoned HR department already onboard, ready to advise you every step of the way.

7. You Become More Attractive to Investors and Partners

Here’s something entrepreneurs don’t always think about: investors love operational maturity. When a PEO is part of your infrastructure, it signals you’re compliant, manage risks well, your HR processes are stable and that you can scale responsibly.

🎯For investors, lenders, and potential partners, a strong HR foundation = reduced risk. And reduced risk makes you a better bet. For acquisitions and rapid growth phases, a PEO can also make integration smoother.

8. A PEO Helps You Build a Better Employee Experience

Growth doesn’t just require more people; it requires keeping the good people you already have on board.

A PEO helps you:

✅Improve communication and access to information.

✅Build modern HR processes that employees trust.

✅Provide competitive benefits

✅Create fair, consistent workplace policies.

🎯A better employee experience leads to lower turnover and higher morale. And in high-growth companies, stability is gold.

9. You Can Expand Into New States With Confidence

Need to hire employees in another state? That’s great for growth, but it creates compliance challenges due to different tax rules and labor law requirements.

🎯A PEO handles all of it, letting you recruit the best talent in any location without losing sleep or risking penalties.

10. You Scale Strategically

Growth can stress your business when operations lag behind headcount. A PEO aligns both, so you’re expanding strategically.

🎯The result? Smooth transitions. Predictable costs. Cleaner processes. Less risk. Happier employees. And more time to focus on what actually grows the business — not on what slows it down.

Growth Is Easier ➡️When You’re Not Doing Everything Yourself

If you’re preparing to scale — or even thinking about it — the question isn’t whether you can handle growth alone. It’s whether you should.

With a PEO, growth is a plan.

A PEO delivers the infrastructure, expertise, and stability that power growing companies, without requiring a major investment or a staff increase.

Ready to see what a PEO can do? We can lighten your workload and help you drive growth, just give us a call at (800) 446-6567 or visit propelhr.com

🎯PEO Series: The PEO Difference🎯

Learn more about how a PEO can help your business in our series:

🔶HR Help Wanted: In-house Team or PEO Partner. Investing in an HR team versus partnering with a PEO, which path is best for your small business? As your business grows, managing HR gets complicated – fast. Should you build your own HR team or explore the benefits of partnering with a PEO? Here’s how to decide which choice best fits your business. Read More

🔶Navigating Compliance Minefields. Navigating HR compliance can feel like tiptoeing through a minefield — one wrong move can trigger costly consequences. From pay transparency laws to overtime thresholds, new regulations evolve faster than most small HR teams can keep up with. Here’s a look at the top HR compliance challenges and how to avoid turning small missteps into expensive lessons. Read More

🔶New Research Shows Why More Small Businesses Are Turning to PEOs. The data is in! And it shows how partnering with a PEO will be the smartest move for small businesses in 2026. Recently released research from the National Association of Professional Employer Organizations (NAPEO) shows that PEO partnerships are helping small businesses scale. It’s smarter, more efficient, and a game-changer. Here’s what the latest data shows. Read More

IT’S HERE!

Your FREE HR Checklist

Here’s your checklist of important tasks related to payroll, benefits, compliance, and general HR.

About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for more than 25 years. Propel partners with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. For more information, visit www.propelhr.com

Featured

8 Benefits of Outsourcing Payroll

While some small businesses handle payroll in-house, outsourcing offers a number of advantages to help you get ahead. Here are 8.

Today, outsourcing is more common than ever before, with 73% of businesses of all sizes outsourcing some aspect or all of their payroll. Why? Outsourcing offers big perks, such as:

1. Cost Savings. One of the most compelling reasons for outsourcing payroll is cost savings. Managing payroll in-house requires hiring full-time employees or allocating existing staff to handle payroll processing. This includes salaries, benefits, the cost of training, purchasing payroll software, and IT-related expenses.

➡️➡️Link #1Link #1Link #1Link #1Link #1Read More: 7 Benefits that Make Your Benefits Package Competitive

Because you pay for only the services you need, the cost to outsource is often less than the cost to expand your HR team. According to a Deloitte study, 62% reported savings of 10% to 25% when they outsourced payroll, while the remaining 38% reported savings of 40% or more.

2. Saves Valuable Time. Business owners juggle hundreds of tasks, with payroll demanding the most attention. As the number of employees grows, the complexity and time requirements increase with bonuses, overtime, benefits, deductions, and varying tax rates in different locations.

According to the Deloitte survey, payroll staff spends the most time manually running payroll, especially loading inputs and making adjustments. Other time-consuming tasks include reconciliation, audits, controls, and data entry. For companies that outsourced payroll, this time was cut in half.

3. Improves Accuracy. Simple payroll mistakes can lead to costly fines, lower employee morale, and, in some cases, legal issues.

According to an Ernst & Young study, the average payroll accuracy rate was 80%, with companies making an average of 15 mistakes per payroll period—each costing an average of $291. The most common errors driving high direct costs include failing to enter sick time, which has the highest cost per error, $705. Other costly errors include onboarding, failure to add an employee to the system promptly, visa status updates, W-4 setup, scheduled deductions, misclassifications, and failure to comply with new overtime and tax regulations. Other errors include not distributing W-2s or 1099s on time, record-keeping and tracking time mistakes, and miscalculating pay.

In some cases, errors can also result in legal issues. Approximately 1 in 6 companies face litigation related to payroll errors. On average, companies surveyed received 32 legal complaints, spending about $3,200 in direct costs and 29 hours of staff time to settle.

4. Access to a Team of Experts. Payroll can be time-consuming, complex, and prone to costly errors – areas where dedicated expertise is needed. With limited staff, small businesses may need help managing payroll while juggling other responsibilities.

Based on the Deloitte study, the typical payroll employee has an average of 12 years of experience, including over three years of advanced payroll system experience and approximately four years of postsecondary education. They work about 25 hours of overtime per month and dedicate around 20 hours per year to training to stay current. Adding new payroll talent to your team generally takes about four to six months to get them up to speed on your payroll processes.

Outsourcing can help by connecting you with a team of payroll experts who understand complex payroll issues and have the know-how and tools to accurately calculate wages, taxes, and overtime while keeping you in compliance with federal, state, and local laws. This access to expertise reduces the likelihood of mistakes and ensures your payroll runs smoothly.

➡️➡️Link #2Link #2Link #2Link #2Link #2Read More: How to Use Benchmarking Data to Drive Your Benefits

5. Compliance with Tax and Labor Laws. Navigating compliance can be challenging, especially for businesses operating across multiple states. According to a Deloitte study, over 40% of small businesses face an average fine of $850 for payroll tax issues, primarily due to late payments. Outsourcing can ensure you remain compliant and stay on top of all applicable regulations.

6. Access to Cutting-Edge Technology. Outsourcing gives businesses access to advanced technology without the high upfront costs of buying and maintaining software. Most payroll providers offer cloud-based platforms, which include features like direct deposit, self-service portals, and mobile apps for easy access.

7. Scalability for Growing Businesses. As you grow, outsourcing makes it easier to handle more employees, different payroll schedules, diverse benefits, and increasingly complicated tax requirements.

8. Peace of Mind. By entrusting experts to handle your payroll, you gain peace of mind knowing that your employees are accurately compensated and your business stays compliant.

Get Back to Running Your Business, Not Your Payroll

When it comes to payroll, it’s important to partner with a reliable provider that saves you time and money without compromising on key features. Outsourcing to an IRS-certified PEO, like Propel HR, streamlines the time-consuming payroll management process, including employee onboarding, payroll tax deductions, and timely IRS deposits.

In addition, we also handle your benefits, compliance, and other important HR-related tasks and can recommend custom solutions based on your industry, size, and location. By taking care of all this and more, you can get back to running your business, not your payroll. For more info, just give us a call at (800) 446-6567 or visit www.propelhr.com.

PLEASE NOTE: This information is for general reference purposes only. Because laws, regulations, and filing deadlines are likely to change, please check with the appropriate organizations or government agencies for the latest information and consult your payroll specialist and/or employment attorney regarding your responsibilities. In addition, your business may be exempt from certain requirements and/or be subject to different requirements under the laws of your state. (Updated September 19, 2024)

Putting Wellness Benefits To Work

Are your benefits keeping pace with your employees’ expectations? If not, adding wellness benefits may be just what you need to level up your benefits package.

What Are Wellness Benefits? The answer is a little different for every business. Generally, a wellness program includes a wide range of activities, services, resources, and programs designed to improve and support the health of your employees. The type of wellness program depends on the makeup of your workforce. It may include activities like fitness programs, personal wellness assessments, stress management resources, or perks like generous time off policies.

BENEFITS OF WELLNESS

Why are wellness benefits important? The cost of an unhealthy workforce is high, with sustained burnout, stress, anxiety, and mental health issues leading to high medical costs, missed workdays, and low productivity. By investing in wellness, positive outcomes include:

Attracting Top Talent. In today’s competitive job market, providing comprehensive wellness benefits can serve as a valuable tool for not only attracting but also retaining top talent. Prominent companies like Intel and Google are well-known for their highly publicized wellness programs and are consistently featured as some of the best places to work – a major draw for potential hires.

Reducing Healthcare Costs. By promoting a healthier lifestyle through wellness benefits, employers can help reduce overall healthcare costs. A Harvard study found that for every dollar spent on employee wellness, absenteeism drops $2.73, and medical costs fall $3.27. And there’s more. Research conducted by the American College of Occupational and Environmental Medicine shows that implementing wellness programs led to an impressive return on investment of 10.3 work hours per employee annually. This translated to enhanced productivity, improved health, reduced sick days, and an average savings of $350 per employee.

Boosting Employee Productivity. A healthy workforce is a productive workforce. A 2022 study of workers who used Spring Health, a platform that connects employees with mental health services, found that 69% reported improvement in depression. Participants also missed fewer work days and reported higher productivity.

Reducing Absenteeism. In 2024, mental health issues accounted for more than 10% of work absences. When employees are frequently absent due to illness or present at work but struggle to be productive because of health concerns, it can have a major impact on productivity. Offering resources that cater to both physical and mental well-being can help reduce the number of missed workdays and improve performance.

Lowering Employee Turnover. Happy employees rarely leave their jobs. Studies show that employees who feel supported are more likely to stay. Wellness benefits can play a significant role in shaping a positive workplace culture. When employees see that their employer prioritizes their health and well-being, it fosters a sense of trust and loyalty.

Improving Work-Life Balance. In today’s fast-pace, high stress work culture, achieving a healthy work-life balance can be challenging. Wellness benefits, such as flexible work options, can help employees manage personal and work demands more effectively.

WELLNESS BENEFITS THAT WORK

Mental Health and Well-being Support & Resources. According to a Gallup poll, more than 66% of employees experience anxiety in some form on a daily basis, and a 2024 Harris Poll revealed that 76% of employees currently feel burnout or ambivalent in their current position.

One way to help employees is by providing mental health benefits through an Employee Assistance Program (EAP). An EAP provides services to help employees, their family members, and dependents cope with personal issues that may affect their health, mental and emotional well-being, as well as job performance. While an EAP is not health insurance, it’s usually offered with an employer’s health insurance plan. Services include mental health services, professional counseling and referrals, personal and family support, and guidance on financial wellness.

Personalized Wellness Programs. Employers are moving away from a one-size-fits-all approach to wellness and embracing more personalized programs that cater to each individual employee’s needs, from nutrition consultations and customized wellness plans to virtual fitness platforms.

Generous Time Off Policies. Employees are still grappling with mental health challenges and stress due to the the pandemic. According to a 2024 Harris Poll, factors like constant changes, overwhelming workloads from managers, and limited mental health benefits are major contributors to burnout. In addition to offering mental health benefits, a generous time off policy can also help. This can come in the form of enhanced paid time off (PTO), unpaid leave of absence for professional development, unlimited time off for personal reasons, or reduced hours during the summer months.

Regular Team-building Activities. Through team-building activities and collaboration, employees are able to form meaningful relationships with coworkers. A wellness program that encourages teamwork improves morale, contributes to a supportive work culture where employees feel appreciated, ultimately benefiting the community.

Connect with a Sense of Purpose. Studies show that volunteering or participating in cause-related activities can have a positive impact on workplace well-being. In fact, 90% of employees are willing to do work for less pay if they feel it’s meaningful, according to a Workhuman study.

MAKING WELLNESS TOP OF MIND

By adding wellness benefits, you’re not just following the latest craze, but making a smart investment in the future of your business. By putting your employees’ health and well-being first, you’ll attract top talent and cultivate a workforce that’s more engaged and productive, ultimately leading to lower healthcare costs, increased efficiency, and a positive company culture.

The Countdown Is HERE!

As enrollment approaches, it’s time to take a fresh look at your benefits package to determine how it’s working for your business and your employees.

Before you renew or make changes, find out how your benefits compare with the competition by watching our new Benefits Benchmark Report.

Conducted by Milliman, a leading worldwide provider of actuarial and related products and services, this annual study includes 2.7 million workers within 30,000 employers across the country.

You’ll learn:

▶️How Current Market Trends Impact Your Benefits
▶️How Your Benefits Compare with Employers Nationwide
▶️How to Assess Employee Needs
▶️How to Provide More Relevant Benefits

🎯Leveraging this data can help you make more informed benefit decisions, leading to better utilization and a more satisfied workforce. Watch the 2024 Benefits Benchmark Report ▶️ HERE.

Need Help?

If you’re planning to make changes, you can do your own research or look for guidance through an insurance broker or an IRS-certified PEO, like Propel HR. Working with a Propel HR gives you access to better benefit options, like quality health insurance through our National Master Health Plan. Our ability to pool employees together into one group allows us to negotiate better health plans at lower rates. Administered by BlueChoice HealthPlan, one of the nation’s largest and most trusted health insurance providers, our comprehensive medical insurance plans are designed to fit your employee’s needs and your budget.

From identifying the type of benefits you should offer and sourcing the best carriers and plans to streamlining the administration process, we make managing your benefits program easy. If you need help finding the right options for your small business, just give us a call at (800) 446-6567 or visit PropelHR.com

About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for more than 25 years. Propel partners with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. For more information, visit www.propelhr.com.

7 Benefits that Make Your Benefits Package Competitive

Competitive benefits play a vital role in attracting and keeping top talent. So, what makes it competitive? Here are the 7 benefits workers want.

1. Top-rated Comprehensive Health Insurance. Health insurance is at the heart of any benefits package. In SHRM’s 2024 Employee Benefits Survey, healthcare coverage continues to top the list for employers. Healthcare coverage is highly valued by employees, with 92% considering it a priority. And for employers research shows that employers will double down on healthcare benefits despite the rising costs.

A competitive health insurance plan is one that stands out for its top-notch comprehensive coverage, and tailored approach to meeting the diverse needs of your employees. From preventive care to dental and vision benefits, and access to specialists, these plans offer a wide array of services. In today’s era of remote work, the inclusion of telehealth services has become increasingly popular. Providing options for virtual doctor visits can be a value add.

🔷Why it Matters: A competitive health insurance package can be a powerful recruiting tool, helping you attract skilled workers who might otherwise go to larger companies. The security of knowing they and their families are covered provides peace of mind. Studies have shown that employees who have access to a quality health plan are more likely to stay with their employer long-term.

➡️➡️READ MORE: Preparing for Benefits Renewal

2. Retirement Plans. Retirement plans, such as 401(k) plans, are another important part of a competitive benefits package, providing long-term advantages to employers. According to SHRM’s benefits study, 81% of employers prioritize retirement plans for their benefits program.

🔷Why it Matters: Employees continue to look to employers to help them plan for the future. A solid retirement plan can be a deciding factor for candidates considering multiple job offers.

3. Financial Planning. Providing tools, resources, and access to financial advisors helps employees make informed decisions about their retirement and economic future. 🔷Why it Matters: Employees who are invested in a retirement plan are more likely to stay, especially if your business offers matching contributions. Additionally, it can be a tax-efficient way to provide additional compensation to employees.

4. Expanded Paid Time Off (PTO). A generous paid time off (PTO) policy can be a game-changer. This includes vacation days, sick leave, and personal days, allowing employees the flexibility to take time off without financial worry. 🔷Why it Matters: Burnout is a real concern in today’s fast-paced work environment. Expanding PTO benefits is a win-win, enhancing wellness and boosting productivity. According to an EY study, employees who took an additional 10 hours of vacation time experienced an 8% improvement in their end-of-year performance.

5. Remote Work and Flexible Work Options. In today’s work environment, flexibility is no longer a luxury; it’s a necessity. According to a MetLife Workforce study on benefits trends, 70% of employers ranked flexible work options as a top priority. Offering flexible work arrangements, such as remote work, flexible hours, or compressed workweeks, can help you stand out.

🔷Why it Matters: Remote and flexible work caters to employees’ needs for work-life balance and can lead to increased job satisfaction and prevent turnover. Additionally, offering flexibility makes your company more attractive to a wider pool of candidates, including those with caregiving responsibilities or those who live outside your immediate area.

6. Professional Development. According to a study by MetLife Workforce, 65% of employers highly value professional development opportunities. This encompasses training and educational benefits aimed at enhancing skills and supporting employees in upskilling and reskilling. Additionally, it includes provisions for professional memberships, certifications, licenses, and tuition assistance to promote continuous growth and advancement.

🔷Why it Matters: Investing in the skills of your current talent enables them to stay ahead without needing to seek new opportunities. In addition, research from the Research Institute of America suggests that incorporating e-learning options can lead to a significant increase (up to 60%) in employee retention rates.

7. Additional Perks. Innovative perks are on the rise and can help you stand out in the competitive job market. These could include:

Family-Focused Benefits. According to SHRM’s benefits study, 67% say family care benefits were a priority, such as paid assistance with childcare costs and support and parental leave policies.
Pet Insurance. Offering pet insurance to employees who consider pets part of their family can be a unique and appreciated benefit.
Wellness Programs. These can include mental health days and gym membership reimbursement.
Sabbaticals. Offering extended time off for employees to pursue personal interests, travel, or volunteer can be a valuable perk for those seeking work-life balance.

🔷Why it Matters. Employees appreciate unique perks that enhance their quality of life. These perks show that you care about your employees as individuals, not just as workers.

How Competitive Are Your Benefits?

A well-rounded benefits package not only serves as a powerful recruitment tool but also helps foster employee loyalty, increases job satisfaction, and ultimately enhances productivity.

How do your benefits compare to those offered by other companies in the same industry? How does your health plan compare to other plans in terms of benefits, cost, and overall value?

As enrollment approaches, it’s time to take a fresh look at your benefits package to determine how it’s working for your business and your employees. Before you renew or make changes, find out how your benefits compare with the competition by watching our new Benefits Benchmark Report.

Conducted by Milliman, a leading worldwide provider of actuarial and related products and services, this annual study includes 2.7 million workers within 30,000 employers across the country.

You’ll learn:

🎯Leveraging this data can help you make more informed benefit decisions, leading to better utilization and a more satisfied workforce. Review the entire 2024 Benefits Benchmark Report ▶️ HERE.

Need Help?

If you’re planning to make changes, you can do your own research or look for guidance through an insurance broker or an IRS-certified PEO, like Propel HR. By working with a Propel, you gain access to better benefit options, like quality health insurance through our National Master Health Plan. Our ability to pool employees together into one group allows us to negotiate better health plans at lower rates. Administered by BlueChoice HealthPlan, one of the nation’s largest and most trusted health insurance providers, our comprehensive medical insurance plans are designed to fit your employee’s needs and your budget.

From identifying the type of benefits you should offer, sourcing the best carriers and plans to streamlining the administration process, we make managing your benefits program easy. If you need help finding the right options for your small business, just give us a call at (800) 446-6567 or visit PropelHR.com

Using Benchmarking Data to Drive Benefits

Before you renew, take a look at recent benchmarking data on employee benefits. Here’s why.

Benchmarking involves comparing your employee benefits package with other businesses in your industry and geographic area. This data provides valuable insights to help you craft a competitive benefits package that aligns with the needs of your workforce and also helps you meet business goals.

➡️➡️Link #1Link #1Link #1Link #1Link #1Link #1Link #1Read More: Import Steps To Help You Prepare for Renewal

Why Benchmarking is Important

Is recruiting and retaining top talent becoming a challenge? Is employee engagement declining? If so, the reason might be your benefits offerings. Evaluate recent benchmarking data and current benefits trends to determine how competitive your benefits are, and identify areas that need improvement.

By understanding current benefits trends and benchmark data, employers can make more informed decisions to:

Attract and Keep the Best Employees. Leveraging benchmarking data to drive your employee benefits program is a strategic move that sets you apart from your competitors. It allows you to be proactive in addressing the benefits candidates value most.

During the job search, it’s common for candidates to compare benefits packages offered by different employers. According to recent study, 88% of job seekers give some consideration or heavy consideration to better health, dental, and vision insurance benefits when choosing between a high-paying job and a lower-paying job with better benefits. According to an Appcast study, employers experienced a 22% increase in applicants when they included benefit information in their job postings. And benefits also play an important role when it comes to keeping employees. A study conducted by SHRM, 60% of employees said benefits were a determining factor in their decision to stay with their current employer.

➡️➡️Link #2Link #2Link #2Link #2Link #2Link #2Link #2Read More: Are You an Employer of Choice?

Results like show just how important benefits are to employees. It means your benefits need to stand out or you risk losing top candidates and your best staff.

Address Workforce Needs. Are your benefit offerings competitive for the roles and the location where your employees are working? You may have a comprehensive benefits package, but it may not align with the specific needs of your employees. By analyzing trend data, employers can proactively address the diverse needs of their workforce. For instance, younger employees may prioritize professional development and flexible work, while older employees may focus on health benefits.

Boost Productivity and Engagement. Employee benefits play an important role in supporting in well-being and productivity. According to the 2024 MetLife Employee Benefits trend study, employees are 20% more productive when they feel valued and supported. And your benefits package is just one way to show your employees just how much you care.

Saves Money. How do you know if you’re spending too much on benefits? Are you offering benefits that employees value or even use? Tracking benchmarking data gives you access to industry’s norms and allows you to see what others are spending, empowering you to make informed decisions about the benefits you should offer.

Identify Emerging Labor Market Trends. Have you expanded operations or added additional staff? Has the demographics of your workforce changed? If so, it’s likely that your benefit offerings need to change too. Employee benefits are constantly evolving, with new trends and innovations emerging regularly. For example, recent trends include increased focus on mental health support, flexible work, and financial wellness programs. Staying ahead of the curve gives your business a competitive edge and demonstrates your commitment to employee well-being.

Supports Long-Term Business Goals. Your employee benefits plan should align with your long-term business goals. Whether you aim to improve employee retention, enhance productivity, or attract top talent, benchmarking data can provide the insights needed to design the right benefits package that supports your goals.

How Competitive is Your Benefits Package?

Conducted by Milliman, a leading worldwide provider of actuarial and related products and services, this annual study includes 2.7 million workers within 30,000 employers across the country.

You’ll learn:

▶️How Current Market Trends Impact Your Benefits
▶️How Your Benefits Compare with Employers Nationwide
▶️How to Assess Employee Needs
▶️How to Provide More Relevant Benefits

🎯Leveraging this data can help you make more informed and strategic benefit decisions, leading to better utilization and a more satisfied workforce. Review the full 2024 Benefits Benchmark Report ▶️ HERE. And if you need help finding the right options for your small business, we’re here to help. Just call us at (800) 446-6567.

The Civil Rights Act of 1964: What Employers Need to Know

The Civil Rights Act of 1964 was a pivotal law that empowered minorities and dismantled barriers in the workplace. Here’s what employers need to know.

Breaking Down Workplace Barriers for More than 60 Years

Prior to 1964, workplace discrimination was widespread. The Civil Rights Act of 1964 changed that. Passed on July 2, 1964, this landmark federal civil rights and labor law outlaws discrimination based on race, color, religion, sex (including gender, pregnancy, sexual orientation, and gender identity), and national origin. It also led to the creation of the Equal Employment Opportunity Commission (EEOC), which upholds and enforces the anti-discrimination laws under the Act.

Title VII of the Civil Rights Act focuses on the workplace and combating discrimination across a wide range of employment practices, including hiring and firing, compensation, training, classification of workers, promotions, layoffs, recruitment ads, benefits, and more. It also makes it unlawful for an employer to take negative action or retaliate against an employee.

Title VII’s anti-discrimination laws apply to private and public employers with 15 or more employees, and protect part-time, full-time, seasonal and temporary workers and in some cases, volunteers.

Reporting Workforce Demographics. Annual reporting is an important part of ensuring Title VII compliance. Private employers with 100 employees or more, along with federal contractors with at least 50 employees, are required to file an EEO-1 Component 1 Report. This mandatory workforce demographic report requires information about employees by job category, sex, race, or ethnicity and must be submitted annually to the EEOC.

Examples of Discrimination in the Workplace

While significant progress has been made in the 60 years since the Act was signed into law, there’s still much work to be done. Here are a few examples of discrimination in the workplace.

Racial Discrimination. Research shows that a large majority of minorities feel pressured to assimilate at work in order to succeed. Take, natural hair for example. According to a recent survey, 66% of Black women said they had altered their hair for a job interview, while 25% said they believed they had been passed over for a job interview because of their hair. Under Title VII, an employer may not ask an employee to change or conceal their skin color or ask an employee to change any other personal characteristics associated with race, such as their natural hair texture.
Religious Discrimination. Employers must provide employees reasonable accommodations based on the religious practices, such as allowing Muslims prayer time during the day, or providing alternative types of safety equipment for workers who maintain beards in accordance with certain religious beliefs.
National Origin. Under the Act, it is unlawful to discriminate against an employee because of birthplace, ancestry, culture, or linguistic characteristics common to a specific ethnic group, such as sending a coworker a racist joke.

Discriminatory Hiring Practices. Failure to ensure fair and unbiased hiring processes, such as biased interview questions or discriminatory help wanted ads are in violation of Title VII. This also applies to the use of AI. Colorado has taken the lead as the first state to pass legislation addressing AI-based discrimination and similar laws have been proposed in other states as well as at the federal level. Employers should prepare for the possibility of new compliance mandates concerning the use of AI in hiring.
Gender Discrimination. A California staffing agency faced a hefty $2.2M penalty for directing candidates to specific roles based on their gender. The firm excluded non-Hispanic candidates from positions at a laundry facility with a predominantly Hispanic/Latino workforce. The agency also placed workers into gender-specific roles, like assigning heavy tasks to men and lighter duties to women. Title VII safeguards employees from gender discrimination, including sex, pregnancy, childbirth, related conditions, sexual orientation, and gender identity.
Hostile Work Environment. Creating a toxic work environment by allowing discriminatory, intimidating, or offensive behavior in the workplace can have severe consequences. Examples include tolerating the use of sexual or racial slurs, whether sung, shouted, whispered, broadcasted, or communicated face-to-face. Under Title VII, employers may be held accountable for harassment if they were aware of or should have known about the misconduct and failed to take swift and appropriate action.
Retaliation. Title VII protects workers from facing repercussions for reporting violations, participating in an investigation, or opposing illegal employment practices. This protection extends to actions such as withholding promotions, rejecting job offers, denying benefits, demotions, suspensions, or terminations. In addition, it also covers threats, reprimands, negative assessments, reduced hours, withheld training opportunities, transfers, and exclusion from workplace interactions.

Preventing Workplace Discrimination

In 2023, the EEOC received 81,055 new charges of workplace discrimination, a more than 10% increase over FY 2022. More than $665 million was secured for more than 22,000 victims of employment discrimination, including more than $440.5 million for individuals in private sector and state and local government workplaces, and filed 143 lawsuits — an increase of more than 50% over FY 2022.

As discrimination continues, it’s important for employers to understand their obligations under the Civil Rights Act and Title VII. Here are a few steps to ensure an inclusive workplace and maintain compliance:

Educate Staff. Establish a training program that helps all employees understand EEOC laws, workplace discrimination and ways to promote inclusion. Also, include bias training to help staff identify and understand any conscious or subconscious prejudices, such as gender and age bias.

Create Anti-discrimination and Anti-harassment Policies. Include information about the Civil Rights Act of 1964, Title VII and related workplace policies in your employee handbook to help employees understand their rights and what’s expected of them. Policies should detail your workplace rules, internal policies, examples of prohibited conduct, and complaint process.

Update Required Workplace Notices. Applicable employers are required to post EEOC workplace notices or face a $680 penalty

Check State and Local Laws. In addition to federal laws, state and local employment laws may provide additional discrimination protection, so it’s important for employers, of all sizes, to understand their responsibilities. On July 1, 2024, Vermont joined 23 other states in passing employment laws that update the definition of race, specifically addressing hair. Ensure compliance by reviewing your workplace anti-discrimination and harassment policies, dress codes, and other workplace policies and procedures.

Review Hiring and Compensation Practices. In addition protections related to hiring and promotions, the law also covers actions affecting the terms of employment. For example, employers cannot pay one employee more than another for the same role.

Determine whether your employment practices are in compliance. Review all job descriptions and ensure selection criteria are inclusive. Internally, communicate job openings and the requirements for promotions to all eligible workers.

Seek Expert Guidance. Understand your responsibilities under the Civil Rights Act of 1964 and Title VII. And even if you’re a small businesses with fewer than 15 employees, you may still have legal responsibilities under federal employment anti-discrimination laws.

One way to prevent a compliance misstep is by working with an IRS-certified PEO, like Propel HR. A PEO’s team of experts stays current on HR compliance and helps employers comply with all federal employment laws, including state laws in all 50 states.

THE COUNTDOWN TO RENEWAL IS HERE!

If you’re planning to renew or make changes to your employee benefits plan, watch our new ▶️ Benefits Benchmark Report for valuable insights into the latest employee benefits trends. Conducted by Milliman, one of the world’s largest independent actuarial and consulting firms, this annual study includes 2.7 million workers within 30,000 employers across the country.

You’ll learn:

Review the full 2024 Benefits Benchmark Report ▶️ HERE.

🎯Understanding benefits trends leads to more informed and strategic open enrollment decisions, better utilization, and a more satisfied workforce. And if you need help finding the right options for your small business, we’re here to help. Just call us at (800) 446-6567.

Preparing for Benefits Renewal

As renewal season approaches, consider taking these steps to improve your outcome.

What Are Employee Benefits? Your employee benefits package is a vital tool in not only attracting and retaining top talent, but also in fostering high levels of engagement and productivity. In addition to pay, employee benefits could include health insurance, dental and vision coverage, life insurance, retirement plans, paid time off, and attractive perks such as educational assistance and remote work options.

While your benefits package comes down to your employees’ needs and your budget, there are a number of other factors to consider, so it’s never too early to prepare for the annual renewal process.

STEPS FOR A BETTER OUTCOME

Start Early. Begin several months in advance of the renewal date to allow enough time to gather important documentation, assess needs, determine a budget, evaluate workforce demographics, and gather feedback. Starting early also gives you time to review options, make changes, and negotiate better rates.

Review Your Current Plan. As enrollment approaches, it’s time to take a fresh look at your benefits package to determine how it’s working for your business and your employees. Analyze your current plan performance through data on claims, utilization, and satisfaction levels. Find out if your insurance carrier plans to make changes, such as costs, coverage, and services covered, or add new benefit options. What is the cost of making changes or renewing your employee health plan? What are the costs of switching to a new plan? Review the renewal rate and compare it with other plans to ensure you get the best value.

Assess Your Current Carrier. Is your current insurance provider still a good fit? Consider the level of support the insurance provider offers, including a dedicated account manager who can help navigate your plan’s features and benefits and any available resources or tools to help employees manage their healthcare costs.

Evaluate Current Benefits Trends. Is your benefits package competitive? Is recruiting and retaining top talent becoming more difficult? Is employee engagement on a decline? If so, the reason could be your benefits offerings. According to the 2024 MetLife Employee Benefits trend study, employees are 20% more productive when they feel cared for. Evaluate benchmarking data and current benefits trends to determine if there are areas that need improvement.

Conduct A Utilization Review & Gather Feedback. Before renewing, analyze how your employees are using your benefits. Over time, the demographics of your workforce and circumstances can change, requiring adjustments to your benefits program. A utilization review can tell you if your benefits align with the current needs of your workforce. Then, survey employees to understand what benefits they value most and areas needing improvement. Also, anticipate future needs by gathering feedback mid-year and after the open enrollment period ends.

Develop A Rollout Strategy. Do your employees understand what you’re offering? According to MetLife’s Employee Benefit study, only 4 in 10 employees believe employers’ benefits are easy to understand. Benefits can be complicated and overwhelming. When employees don’t understand the details of what you’re offering, they are most likely to focus on cost and may end up with unexpected out-of-pocket expenses as a result. Develop a rollout strategy that includes simple and clear messaging. The easier it is for employees to understand their options, the more likely they are to make informed decisions about coverage.

Bring In Outside Experts. Leverage outside expertise to simplify the renewal process. Outsourcing to an IRS-certified PEO (Professional Employer Organization), like Propel HR, can help you to take advantage of being included in a larger buying pool to save money on top-rated health insurance plans at much lower rates and enterprise-level benefits packages similar to those only available to large corporations.

THE COUNTDOWN TO RENEWAL IS HERE!

The renewal process doesn’t have to be complicated. By understanding all the factors that come into play, small businesses can ensure they provide their employees with the best possible benefits. If you need help finding the right options for your small business, give us a call at (800) 446-6567.

THE LATEST TRENDS IN EMPLOYEE BENEFITS

If you’re planning to renew or make changes to your employee benefits, watch our new Benefits Benchmark Report to learn more about the latest trends in employee benefits. Watch HERE.

PLEASE NOTE: This information is for general reference purposes only. Because laws, regulations, and filing deadlines are likely to change, please check with the appropriate organizations or government agencies for the latest information and consult your employment attorney and/or benefits advisor regarding your responsibilities. In addition, your business may be exempt from certain requirements and/or be subject to different requirements under the laws of your state. (Updated June 27, 2024)

Your HR Checklist for Q3

Stay up to date with new laws, deadlines and important changes related to payroll, benefits, compliance, and general HR. Here’s your checklist for Q3 2024.

PAYROLL & TAX

File Quarterly Forms 941. Employers who withhold income taxes, Social Security tax, or Medicare tax from employees’ paychecks or who must pay the employer’s portion of Social Security or Medicare tax must file Form 941 by July 31, 2024.

Conduct an Internal Audit. Review employee payroll data to ensure accurate information such as the work location states, especially important for remote employees. Also, encourage employees to audit their pay stubs to ensure accurate federal and state tax withholdings.

COMPLIANCE

Review new DOL Employer Guidance for Using AI in the Workplace. Employers are responsible for complying with federal laws, even when using artificial intelligence (AI) in the workplace. The Department of Labor’s Wage and Hour Division (WHD) recently published a Field Assistance Bulletin (FAB), which includes guidance on using AI to track hours worked and calculate wages owed under the Fair Labor Standards Act (FLSA). The FAB also addresses the potential impact of AI on compliance with the FLSA’s protections for nursing employees and potential challenges regarding AI and compliance with the Family and Medical Leave Act (FMLA).

Review New Overtime Rule for Salary Threshold Increases. The DOL final rule raises the salary threshold for employees classified as exempt from overtime pay. Because more employees may be eligible for overtime pay, employers should audit exempt employees’ salary rates by July 1, 2024. Note that this rule may face multiple legal challenges, including the potential for injunctions delaying the effective date. Follow the DOL website to stay updated on potential legal developments.

Best Practice Tip: While reviewing salary thresholds, you may want to leverage this FLSA update to review and/or update job descriptions for all exempt employees to ensure requirements for the DOL “duties test” for an overtime exemption are met.

Prepare for Final Requirements Under PWFA. The EEOC’s Pregnant Workers Fairness Act (PWFA) requires covered employers to provide reasonable accommodations to qualified workers or applicants with limitations related to pregnancy, childbirth, or related medical conditions unless the accommodation will cause the employer an undue hardship.

The new rule applies to all public and private employers with 15 or more employees and more broadly defines those covered and what conditions apply, different from current federal pregnancy regulations. Under the new rule, protections include, but are not limited to, all medical or mental conditions related to pregnancy or childbirth, whether new or pre-existing conditions affected by pregnancy or childbirth; this includes infertility/fertility treatments, miscarriage, and abortion.

While the PWFA only applies to accommodations, the EEOC also enforces additional laws that make it illegal to fire or discriminate against employees or applicants based on pregnancy, childbirth, or related medical conditions. Employers are also prohibited from requiring supporting physician documentation or blanket documentation.

The new rule goes into effect on June 18, 2024, and employers must provide accommodation without delay. Because legal developments with this new rule may change, follow the EEOC PWFA for the latest updates and more information about the employer’s responsibilities.

Consult with Legal Counsel to Comply with the FTC Ban on Non-Compete Agreements. The Federal Trade Commission’s (FTC) new rule bans all non-compete agreements and non-compete clauses.

Effective August 21, 2024, the rule prohibits any condition of employment that prohibits a worker from or penalizes a worker for seeking or accepting employment. The FTC ban includes any prior executed non-compete agreements or other agreements with non-compete clauses, making them unenforceable. An exception applies to employees classified as senior executives who have entered non-compete agreements/clauses before August 21, 2024. Consult with your legal counsel for guidance on compliance requirements. Because the FTC rule may face legal challenges, follow the FTC website to stay updated with the latest information.

File ERISA Annual Report Form 5500. Applicable employers must report retirement plans, such as a 401(k), for every year the plan holds assets. In 2023, the Department of Labor (DOL) revised the requirements for auditing 401(k) financial statements. For plan years beginning on or after Jan. 1, 2023, applicable employers must count only those with account balances. The filing deadline is the last day of the seventh month following the end of the plan year or July 31 for calendar year plans.

Submit Form VETS-4212 for Federal Contractors. Applicable employers with a contract or subcontract with the Federal Government must file an annual Form VETS 4212 to report affirmative action efforts in employing protected veterans. The VETS-4212 filing season begins Aug. 1, 2024, and the filing deadline is Sept. 30, 2024.

BENEFITS

Submit PCORI Fees. The Patient-Centered Outcomes Research Trust Fund is a fee for issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans that help fund the Patient-Centered Outcomes Research Institute (PCORI). The fee is calculated based on the average number of people covered under a specified health insurance policy. IRS Form 720 PCORI fees for 2023 are due July 31, 2024.

Review Your Employee Benefits Plan. With the annual renewal period approaching, check with your benefits broker for updates, deadlines, and any changes in reporting. Also, verify that all healthcare reform requirements are met.

How To Prepare For Renewals. Find out how your employee benefits plan compares with others nationwide by watching our new webinar, 2024 Benefits Benchmark Report. This FREE webinar covers the latest trends in employee benefits, and will help you make important decisions about your offerings. You’ll learn:

How competitive your business is in the talent marketplace.
How to design your benefits programs by analyzing current trends.
- - - - How to assess your employees’ needs and how this can impact your company’s strategic objectives.
        How to increase employee retention by providing more relevant benefits solutions to your employees.

▶️Get ahead and get started by signing up HERE. And if you need guidance, we’re always here to help you find the right benefits for your employees and your business. Just give us a call at (800) 446-6567.

Review All Insurance Policies. Do you have all the right policies to protect your business? National Insurance Awareness Day is June 28, 2024, an annual reminder to review your insurance policies. Determine if changes in your work environment or staff work assignments may impact your current exposure and codes on your account. Also, check with your Workers’ Comp insurance broker to determine if you need to make any necessary adjustments to cover additional exposure, including remote workers.

Encourage Employee Wellness. June is National Employee Wellness Month, an opportunity for employers to enhance existing wellness programs and encourage employees to take proactive steps to improve their physical, mental, and emotional well-being.

GENERAL HR

Review State and Federal Guidance for Hiring Teens. Hiring teens can be a great option for small businesses that need additional help during the summer months. Before adding to your staff, review applicable federal and state guidelines and regulations regarding wages, hours, and permitted tasks, as well as employment laws on safety and health, discrimination, and benefits.

Need Help? We are here to help you stay up to date with a helpful one-page HR Checklist filled with important information related to payroll, benefits, compliance, and general HR. Depending on the type of business and industry, your checklist may be different and even more complex. If so, just contact us. By partnering with an IRS-certified PEO, you gain access to a team of experts to help you navigate the complexities specific to your business to help you stay compliant.

PLEASE NOTE: This information is for general reference purposes only. Because laws, regulations, and filing deadlines are likely to change, please check with the appropriate organizations or government agencies for the latest information and consult your employment attorney and/or benefits advisor regarding your responsibilities. In addition, your business may be exempt from certain requirements and/or be subject to different requirements under the laws of your state. (Updated June 12, 2024)

About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for 25 years. Propel partners with small to midsized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. Visit our new website at www.propelhr.com.

PEOs are in the Business of Small Business

PEOs play a vital role in helping small businesses across the country thrive and survive.

Helping Small Businesses and Their Employees. Professional Employer Organizations (PEOs) provide payroll, benefits, workers’ comp, regulatory compliance assistance, and scores of other HR services to more than 208,000 small and mid-sized businesses across the U.S., collectively employing more than 4.5 million people.

About 17% of all employers with 10 to 100 employees in industries such as software, construction, media, clothing, finance, and dozens of other sectors spanning every pocket of the country, not to mention mom-and-pop businesses on Main Street, partner with a PEO. Put simply, PEOs are in the business of small business.

An Ally and Champion for Small Businesses. During good times, PEOs are the invisible hand that handles the busy work. And during bad times, PEOs are the vociferous crusaders fighting for what is right. For more than three years, the PEO industry has led the charge to clear the IRS’s backlog of Employee Retention Tax Credit (ERTC) claims. Because that’s what PEOs do: support the backbone of our economy and help them navigate government red tape.

During the darkest days of the pandemic, PEOs were on the frontlines as a partner, invested in helping employers survive as they faced layoffs, decimated sales, closure, and increasing disconnect with their local communities. PEOs helped businesses navigate the loan forgiveness process, support their employees, and get to a place where they knew they could rebuild and emerge stronger than they were pre-pandemic.

📣PEOs Provide Services to 17% of all Employers with 10-100 Employees.

Access to Enterprise-Level Benefits. PEOs provide small and mid-sized businesses with access to essential services, such as cutting-edge technology and Fortune 500-level benefits such as 401(k) plans, health, dental, life, and other insurance, dependent care, and other benefits they might not typically receive as employees of a small company.

Among businesses with fewer than ten employees, those using a PEO have more than three times greater participation in a retirement plan than employees of businesses that do not use a PEO. For businesses with 10 to 49 employees, 52% of PEO client employees have a retirement plan, versus 23% of companies that do not work with a PEO. Benefits like this allow small businesses to punch above their weight, grow faster, and experience lower employee turnover.

Less Paperwork. More Time. PEOs save time by taking care of administrative and HR-related tasks, allowing businesses to focus on their businesses.

Link #1Link #1Link #1Link #1Link #1➡️➡️Read More: 3 New Employment Laws that Could Impact Your Business

Compliance Know-How. Over the last 12 years, the PEO industry has quadrupled in size as the regulatory landscape gets increasingly complicated and more businesses turn to PEOs for help. And for good reason. PEOs are knowledgeable in employment laws and stay current with changing regulations, including labor laws and regulations governed by the state where employees work, not just where a business is based. Businesses that engage with a PEO have access to a whole team of experts who can help mitigate the vulnerabilities that put employers at risk.

More Productivity. Better Profits. By providing payroll, benefits, and HR services and assisting with compliance issues under state and federal laws, PEOs help small businesses improve productivity and profitability, so they can focus on their core mission, and grow.

📣Businesses that use PEOs grow 7 to 9 percent faster, have employee turnover that is 10 to 14 percent lower, and are 50 percent less likely to go out of business than companies that do not use PEOs.

Focus On What You Do Best. And Leave the Rest to Us. An IRS-certified PEO, Propel HR partners with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. If we can help you, just give us a call or visit our website at www.propelhr.com

About National PEO Week. National PEO Week highlights the important contributions of the PEO industry, which provides payroll, employee benefits, compliance assistance, and HR services to hundreds of thousands of small and mid-sized businesses that employ more than 4.5 million people. National PEO Week has been officially recognized in the federal Congressional Record and by the National Day organization, which approves only 30 requests for official designations out of the 25,000 applications it receives each year. For more information , visit www.PEOweek.com

3 New Employment Laws That Could Impact Your Business

New changes in three employment laws may have a significant impact on your business. Here’s what you need to know.

3 NEW FINAL RULES

1. FTC Rule Bans Non-Compete Agreements. ⚠️Effective: August 21, 2024. Non-compete agreements were first developed to restrict workers’ ability to work for competing employers within their industry. Recently, the Federal Trade Commission’s (FTC) passed a new rule which bans all non-compete agreements and non-compete clauses.

The new rule prohibits any condition of employment that prohibits a worker from or penalizes a worker for seeking or accepting employment. A “worker” includes anyone who works or previously worked, regardless of the worker’s status as an employee, independent contractor, volunteer, etc.

An exception applies to employees classified as Senior Executives who have entered non-compete agreements/clauses before August 21, 2024. Senior Executives are defined as being in a policy-making position and receiving total annual compensation of at least $151,164 in the preceding year (or $151,164 when annualized if the worker was only employed during part of the prior year).

What the Final FTC Rule Means to Employers: The new FTC rule means workers are no longer restricted by their current employer from exploring opportunities at competing companies, prompting more competitive wages and benefits. And employers will no longer be able to enforce or issue new non-compete agreements.

Link #1Link #1Link #1➡️➡️Read More: HR Compliance Issues Than Can Cost Your Business

To stay compliant, employers should consult with their legal counsel to take the following steps:

🔹Review existing agreements with current and former employees to determine whether any contain provisions that may operate as non-competes, even if they do not include that term. Also, review all clauses or provisions for language that may be interpreted in a way that violates this rule.

🔹Review and revise any agreements/provisions related to offer letters and employment to ensure they do not contain restrictive language.

🔹Identify individuals who need to receive the required notice that previously executed non-compete agreements/clauses are now null and void.

🔹Prepare the notice and document your compliance efforts, such as including a copy of the individualized notices, employee name, date sent, and physical and email address.

Because the FTC rule may face legal challenges, stay updated with the latest information by following the FTC site.

2. New Overtime Final Rule Increases Salary Thresholds. The Department of Labor’s (DOL) final rule raises the minimum salary threshold for employees to be classified as exempt from overtime pay. Phased increases under the new rule are intended to prevent worker misclassification and ensure fair treatment and compensation.

⚠️Effective Dates:

🔹Exempt Employees:

July 1, 2024: Minimum salary threshold for exempt employees increases from $684 per week or $35,568 per year to $844 per week or $43,888 annually.
January 1, 2025: Minimum salary threshold for exempt employees increases to $1,128 per week or $58,656 annually.

🔹Highly Compensated Employees:

July 2024: For those classified as highly compensated employees under the FLSA, the threshold increases to $132,964 annually.
January 2025: The threshold increases to $151,164 annually.

What the Final Rule Means to Employers: Because the final rule significantly raises the minimum salary threshold to qualify for overtime exemptions under FLSA, more employees may be entitled to overtime pay.

Employers should audit exempt employees’ salary rates by July 1, 2024. Note that this rule may face multiple legal challenges, including the potential for injunctions delaying the effective date. Visit theLink #1Link #1Link #1 DOL website to stay updated on potential legal developments.

3. PWFA Rule Finalizes More Protection for Pregnant Workers. ⚠️Effective: June 18, 2024. The EEOC’s Pregnant Workers Fairness Act of 2022 (PWFA) requires covered employers to provide reasonable accommodations to qualified workers or applicants with limitations related to pregnancy, childbirth, or related medical conditions. Reasonable accommodations are changes made in the work environment. A few examples under PWFA include providing additional, longer, or more flexible breaks, changing a work schedule, offering telework, and providing leave for healthcare appointments or to recover from childbirth and other related medical conditions.

➡️➡️Link #2Link #2Link #2Read More: 6 Areas Where Businesses Frequently Overspend

The final rule applies to all public and private employers with 15 or more employees and more broadly defines those covered and which conditions apply, different from current federal pregnancy regulations. New protections include, but are not limited to, all medical or mental conditions related to pregnancy or childbirth, whether new or pre-existing conditions affected by pregnancy or childbirth; this also includes infertility/fertility treatments, miscarriage, and abortion.

While the PWFA only applies to accommodations, the EEOC also enforces additional laws that make it illegal to fire or discriminate against employees or applicants based on pregnancy, childbirth, or related medical conditions. PWFA also does not replace federal, state, or local laws that are more protective of workers affected by pregnancy, childbirth, or related medical conditions.

What the PWFA Final Rule Means to Employers: Under the new rule, employers must provide accommodation without delay. Employers are also prohibited from requiring supporting physician documentation or blanket documentation. Because legal developments with this new rule may change, follow the EEOC PWFA for the latest updates and more information about your responsibilities.

Stay Compliant

As changing labor laws become more complex and the challenge of HR responsibilities continues to grow, compliance is an area where employers can benefit from the help of an IRS-certified Professional Employment Organization (PEO) like Propel HR. A PEO can help reduce risks and prevent costly compliance violations. This includes complying with the labor laws and regulations governed by the state where your employees work, not just where your business is based. If you need help or more information, just give us a call at 800-446-6567.

➡️PLEASE NOTE: This information is for general reference purposes only. Because laws, regulations, and filing deadlines are likely to change, please check with the appropriate organizations or government agencies for the latest information and consult your employment attorney and/or benefits advisor regarding your responsibilities. In addition, your company may be exempt from certain requirements and/or be subject to different requirements under the laws of your state. (Updated May 9, 2024)

6 Areas Where Businesses Frequently Overspend

When you’re running a business, it’s easy to overspend. Here’s how a PEO can cut costs in six important areas.

HR Administration. From payroll processing to filing taxes and managing employee benefits, the cost (and time) of running your business’s day-to-day activities, especially HR-related matters, can add up, demanding more than you initially realized. Outsourcing time-consuming HR-related tasks to a PEO is one way to significantly reduce costs. Studies show that companies that partner with a PEO see a 21% savings in HR administration alone.

Labor. Employees are one of the most important assets and also one of the most significant business expenses. PEOs can help employers take care of their workers and lower costs without sacrificing productivity.

For example, according to a report conducted by the National Association of Professional Employer Organizations (NAPEO), PEOs provide access to more HR services at a cost that is close to $450 lower per employee compared to companies that manage their HR services in-house.

Employee Benefits. For small businesses, chances are you’re competing with large companies that can offer competitive benefits and perks to their employees. By partnering with a PEO, employers can offer top-rated health insurance plans and enterprise-level benefit packages, including health insurance and other perks similar to those offered at large corporations. This is because of a PEO’s ability to group employees of small businesses into one pool to negotiate better health plans at lower rates. There’s also valuable time saved by assuming administrative responsibilities for benefits administration, including enrollment, claims processing, and addressing regulatory compliance.

Compliance and Workplace Risks. Just one wrong move can result in fines, penalties, and legal disputes that pose significant financial risks to businesses. With the complexity of federal, state, and local employment laws today, your HR team may not be equipped to handle the growing demands of compliance.

➡️➡️Link #1Link #1Read More: HR Issues that Cost Your Business

By working with a PEO, your business gains access to an entire team of experts who are current with changing labor laws and filing deadlines and can help protect your company from compliance risks – especially valuable for businesses with employees in multiple states.

The Unexpected. With extensive experience working with diverse companies across various industries, PEOs provide valuable insights and guidance to help businesses prepare for and navigate through unexpected events and weather periods of economic uncertainty.

For example, during the pandemic, PEOs helped businesses survive with guidance on allocating labor and resources for the short- and long-term, support on payroll processing, employee benefits, and leave administration. According to NAPEO study, businesses working with a PEO were 32 percent less likely to have experienced an overall negative effect on business and 82 percent more likely to have business operations back to normal (or better) than similar small businesses that didn’t have a PEO partnership.

Growth Stages. During stages of growth and change, it’s the unknowns that demand your time and resources. A PEO has proven to be a trustworthy partner to help businesses navigate through growing pains with ways to reduce risks, save money, and preparing for what’s ahead. In the beginning, your business may only need help with payroll. But as your business grows and more employees are hired, your business’s needs also grow. Partnering with a PEO boosts productivity by streamlining HR processes at every stage.

➡️➡️Link #2Link #2Read More: How to Save More and Get More HR Services

Because you pay for only the services you need, the cost to work with a PEO is often less than the cost to expand your HR department. In addition, there are also savings in terms of increased productivity and efficiency. Outsourcing non-core functions allows your in-house HR team to focus on your business and get more done. In terms of revenue and performance,

70% of businesses that work with a PEO report revenue growth twice that of comparable non-PEO companies.
The ROI from using a PEO is 27.2% based on cost savings alone.
Businesses that work with a PEO grow 7 to 9 % faster, have 10 to 14% lower employee turnover, and are 50% less likely to go out of business.

Get Costs Under Control

Are you paying more than you have to? When you’re sidetracked by juggling time-consuming tasks in multiple areas of your business it’s challenging to step back and find ways to spend less. Where do you begin? That’s where a PEO can prove to be a valuable business partner. From access to better benefits, compliance protection, and expert guidance on improving HR efficiency, the advantages of working with an IRS-certified PEO, like Propel HR, mean controlling costs, reducing expenses, and leveraging all the money saved.

HR Compliance Issues that Can Cost Your Business

The cost of HR compliance violations goes beyond penalties and legal expenses, damaging reputation and eroding trust. Here are a few areas to watch.

What is HR Compliance?

HR compliance includes a wide range of responsibilities and requirements that your company must adhere to under federal, state, and local employment laws, as well as industry-specific regulations. Important laws that employers need to be familiar with include the federal labor laws under the Equal Employment Opportunity Commission (EEOC). EEOC laws protect workers from discrimination, harassment, and retaliation in the workplace. These include:

💠Title VII of the Civil Rights Act of 1964 (Title VII). This law makes it illegal to discriminate against someone based on race, color, religion, national origin, or sex. It also covers The Pregnancy Discrimination Act, making it illegal to discriminate against a woman because of pregnancy, childbirth, or a medical condition related to pregnancy or childbirth.

💠The Equal Pay Act of 1963 (EPA). Under EPA, it’s illegal to pay different wages to men and women if they perform equal work in the same workplace.

💠The Age Discrimination in Employment Act of 1967 (ADEA). This law protects people 40 or older from discrimination because of age.

💠Title I of the Americans with Disabilities Act of 1990 (ADA). Under ADA, it’s illegalto discriminate against someone with a disability. Under ADA, employers must also reasonably accommodate the applicant or employee unless doing so would impose an undue hardship on the employer’s business.

💠The Genetic Information Nondiscrimination Act of 2008 (GINA). This law prohibits discrimination against employees or applicants because of genetic information, including genetic tests and genetic tests of an individual’s family members, as well as information about any disease, disorder, or condition of a family member or their medical history.

💠The Pregnant Workers Fairness Act of 2022 (PWFA). PWFA requires covered employers to provide a reasonable accommodation to workers with limitations related to pregnancy, childbirth, or related medical conditions. It also makes it illegal to retaliate against the employee due to complaints about discrimination, discrimination charges filed, or participation in an employment discrimination proceeding, such as an investigation or lawsuit.

⚠️Final Rule Update: On April 15, 2024, the EEOC issued a final rule to implement PWFA, providing important clarity to allow pregnant workers the ability to work and maintain a healthy pregnancy and help employers understand their responsibilities under the law. The final rule will be published in the Federal Register on April 19, 2024 and becomes effective 60 days after publication.

COSTS & CONSEQUENCES

Harassment and Discrimination. In 2023, the Equal Employment Opportunity Commission (EEOC) filed 50% more lawsuits and recovered a record $665 million for more than 22,000 workers who experienced workplace discrimination. The majority of the cases involved workplace discrimination and harassment, retaliation, pay equity, accessibility, and the use of technology, including artificial intelligence, in employment decisions. Here are a few examples:

🚩$50,000: Pregnancy Discrimination. An Atlanta-based laboratory must pay $50,000 for sex discrimination and retaliation against a pregnant employee.

🚩$90,000: Age Discrimination. A diagnostics company must pay $90,000 for age discrimination. A third-party recruiter for the diagnostics company rejected a 49-year-old job applicant for a sales position because he was “overqualified” and that the company was “looking for someone more junior that can stay with the company for years to come.” Conduct like this violates the Age Discrimination in Employment Act (ADEA) and also applies to employers who use third-party recruiters to screen job applicants.

🚩$500,000: Racial Harassment and Retaliation. A steel fabrication company was required to pay $500,000 for violating Title VII of the Civil Rights Act of 1964. The company harassed Black and Latino employees and retaliated against employees who complained by firing them or moving them to the night shift.

🚩$1 million: Recruiting Applicants Based on Medical History. The EEOC fined Dollar General $1 million for violating anti-discrimination laws by using job applicants’ medical histories to make hiring decisions. The retailer required job applicants to pass a pre-employment medical exam and disclose past and present medical conditions of family members, such as cancer, diabetes, and heart disease.

🚩$150,000: Denying a Diabetic Worker Breaks. United Parcel Service (UPS) was ordered to pay $150,000 and provide additional relief, including reinstatement of a discharged employee with diabetes. The UPS employee was fired after requesting an occasional short break to check his blood sugar.

🚩$175,000: Denying A Service Dog Accommodations Request. A Georgia Papa John’s pizza franchise was required to pay $175,000 for disability discrimination after firing an employee. The employee, who had vision impairments, was denied accommodation for his service dog, and subsequently fired, a violation of the ADA.

➡️➡️Link #1Link #1Link #1Link #1Link #1Link #1Read More: Your HR Checklist for Q2 is HERE!

FMLA Leave Violations

🚩$438,625: FMLA Protective Leave Violations. The Department of Labor recovered $438,625 in back wages, unpaid bonuses, and liquidated damages for two former Mercedes-Benz workers after the employer violated their rights to protected leave under the Family and Medical Leave Act.

🚩$2.9 million: Paid Leave Violations. The Chipotle Mexican Grill restaurant chain was fined $2.9 million for violating Seattle’s Secure Scheduling and paid sick/safe time ordinances, including failure to provide accrued paid sick time, retaliation against an employee for calling in sick and declining shift, and scheduling changes.

⚠️Under FLMA, eligible employees are allowed unpaid, job-protected time off work and continued benefits for qualifying events. Some states also have specific leave requirements. Examples of the common types of FMLA leave include personal illness, birth or adoption of a child, illness of a family member, and military service.

Wage & Overtime Violations

🚩$22 million: Donning and Doffing Time. Donning and doffing refers to the procedures of putting on and removing PPE properly. A battery manufacturer must pay more than $22 million for failing to compensate employees for time beyond their 8-hour shifts required to put on and remove protective equipment and shower to avoid dangerous exposure.

🚩$190,730: Overtime Violations. By law, if two or more establishments share the same owner, they are considered a single enterprise. In this case, the Florida restaurant assigned employees to work at two locations they owned. However, the employer failed to total the number of hours worked by each employee at both locations and did not pay overtime when the combined hours exceeded 40 hours in a single workweek.

Child Labor Law Violations

In addition to overtime pay, minimum wage, and recordkeeping, FLSA also oversees guidelines for employing youths. In 2023, the Department of Labor investigated 955 cases of child labor violations involving 5,792 children, including 502 children employed in violation of hazardous occupation standards.

🚩$1.5 million: Employing Children in Dangerous Jobs. A Tennessee parts manufacturer was ordered to pay $1.5 million after the DOL discovered children working in dangerous jobs. The company was also fined $296,951 for subjecting ten children to oppressive labor and operating a power-driven hoisting apparatus, an occupation prohibited for workers under 18.

🚩$49,833: Violating Federal Child Labor Laws. A Baskin Robbins franchisee violated federal law by allowing minor employees, ages 14 and 15, to work beyond the legal time limits set while school was in session. The employer was unaware of federal child labor laws and only followed state guidelines. In addition, the franchisee was also fined for recordkeeping violations.

⚠️Before You Hire Young Workers: Review the Wage and Hour Division’s Seven Child Labor Best Practices for Employers to learn more about legal compliance and employer responsibilities.

Misclassifying Workers

Misclassifying employees denies workers access to benefits and protections, including overtime, minimum wage, and family and medical leave.

🚩$37,340: Misclassifying Caregivers as Independent Contractors. A South Carolina home healthcare provider must pay $37,340 in back wages for misclassifying workers as independent contractors instead of employees. The company paid workers straight-time rates for hours worked over 40 hours instead of the time-and-a-half as required by the Fair Labor Standards Act.

⚠️Employers are responsible for complying with laws regarding pay practices, including classifying workers correctly, recording and paying employees for all time worked, and understanding the wage and hour laws in the states where employees are working.

Industry-Specific Violations

🚩$294,657: Safety Violations. A Dollar Tree subsidiary was fined $294,657 by the Department of Labor’s Occupational Safety and Health Administration (OSHA) for safety violations, including blocking exits and walkways, stacking boxes at unsafe heights, and failing to ensure quick access to fire extinguishers.

⚠️In addition to federal requirements, many state and local governments have their own rules. And employers in certain industries must also follow industry-specific regulations, such as OSHA, HIPPA, and the SEC.

HOW TO AVOID 🚩AND STAY COMPLIANT

The consequences of getting it wrong are steep. Here are a few ways to stay ahead:

💠Invest In Compliance Training and Workplace Safety. According to a recent study, only half of employers continually educate their workers on workplace policies. Understand your responsibilities and seek guidance from regulatory and legal experts in your industry.

💠Establish HR Policies and Procedures and Educate Workers. Studies show that workers failing to comply with employment laws cost businesses close to $1.6 million annually. Most employers surveyed believe establishing accountability measures would help mitigate risks. Start by implementing workplace policies and procedures and ensure your employees understand their responsibilities. An employee handbook can help with with outlining expectations and company policies and procedures related to compensation, benefits, paid leave, remote work, employment, termination, federal, state and local labor laws, safety, standards of conduct, sexual harassment, and other areas specific to your business.

💠Seek Expert Guidance. With so many responsibilities, it’s easy to see how small businesses, even those with a dedicated HR staff, can face unexpected compliance costs. One way to prevent a compliance misstep is by working with an IRS-certified PEO, like Propel HR. A PEO’s team of experts stays up-to-date on HR compliance and helps employers comply with federal, state, and local employment laws.

PLEASE NOTE: This information is for general reference purposes only. Because laws and regulations are likely to change, please check with the appropriate organizations or government agencies for the latest information and consult your employment attorney and/or benefits advisor regarding your responsibilities. In addition, your company may be exempt from certain requirements and/or be subject to different requirements under the laws of your state. (Updated April 18, 2024)

About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for more than 25 years. Propel partners with small to midsized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. For more information, visit www.propelhr.com.

Save More, Get More by Outsourcing to a PEO

Outsourcing certain HR functions to a PEO can help small businesses optimize operations while reducing costs. Here’s how.

Mitigating Workplace Risks. Recently, the Equal Employment Opportunity Commission (EEOC) fined a national pharmacy and retailer $205,000 when one of its locations refused to grant emergency leave to a pregnant employee, forcing her to quit. Such conduct violates two important laws: Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act. These laws prohibit discrimination based on pregnancy-related conditions and disability, and prohibit retaliation, including making a reasonable accommodation request. In addition to the fine, the company was required to maintain and distribute policies prohibiting discrimination based on pregnancy, pregnancy-related conditions, and retaliation and invest in training for employees and supervisors.

Managing compliance with the constantly changing federal, state, and local employment laws and regulations is daunting for businesses, regardless of size and industry. A Professional Employer Organization (PEO) can help. PEOs specialize in keeping track of new laws, deadlines, tax filings, wage regulations, and other legal requirements to avoid compliance violations and the costly fines, penalties, and legal disputes that come with them. By partnering with a PEO, businesses can rest easy knowing they won’t get hit with a surprise that could hurt their bottom line.

Access to Expertise and Support. PEOs employ experienced HR professionals with extensive knowledge and experience in all areas of HR. Outsourcing to a PEO means access to a wide range of HR services without maintaining an in-house HR department. This allows more resources to go towards core business functions, such as product development and marketing, ultimately promoting growth and profitability.

More Efficiency, Less Paperwork. From regulatory reporting, record-keeping, and frequently changing filing deadlines for state, federal, and local tax compliance, your HR team may be spending a lot of time chasing paperwork and files. PEOs can help businesses with ways to cut out inefficiencies, reduce HR administrative tasks, streamline your HR processes and save money. According to the National Association of Professional Employer Organizations (NAPEO), PEOs provide access to more HR services at a cost of close to $450 lower per employee compared to companies that manage their HR in-house.

More Time. Better Bottom Line. Outsourcing offers many advantages and can positively impact your bottom line. It’s a cost-effective way to immediately access resources and gain valuable industry expertise. Because you pay for only the services you need, the cost to outsource is often less than the cost of hiring additional full-time staff.

🚀70% of Businesses Report INCREASED Revenues Since Working with a PEO🚀

By outsourcing non-core functions to a PEO, employers can redirect more time and resources toward activities that drive value. For instance, a PEO can handle payroll, employee benefits, compliance and general HR. With certain functions taken care of by the PEO, your management team can concentrate on innovation and expansion.

Access to Premium Employee Benefits, Lower Cost. Offering a competitive employee benefits package can be financially out of reach for small businesses working with limited resources. PEOs help smaller employers compete by providing access to enterprise-level benefits packages and other perks typically associated with large corporations—all without breaking the bank.

Scalability and Flexibility. As your business evolves and grows, your HR needs change too. PEOs help employers adjust their services to suit fluctuating workforce requirements and business conditions. If you’re expanding your team across different states, a PEO can help you navigate the complexities of various employment laws in each location. Whether you’re scaling up to accommodate rapid expansion or downsizing to withstand economic downturns, PEOs can help you easily adapt to change.

Are You Ready to Save?

Outsourcing to a PEO isn’t just a smart business move—it can be a financial game-changer. When it comes to saving money, most businesses share the need for expert guidance. By partnering with an IRS-certified PEO like Propel HR, small businesses can get the support they need to get costs under control and leverage the money saved. From access to better benefits at lower costs, compliance protection, and guidance on improving HR efficiency, the advantages of adding a certified PEO to your team increase the odds for a stronger bottom line.

Are you ready to save? If so, just give us a call at (800) 446-6567 or visit www.propelhr.com to learn more.

About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for more than 25 years. Propel partners with small to midsized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. For more information, visit www.propelhr.com