Simco Blog

As 2025 kicks off, the HR landscape is evolving faster than ever before. Technology, shifting workforce expectations, and the need for businesses to be agile in a dynamic global environment are all driving change. What worked yesterday may not be enough today, and companies must adapt to stay ahead. Here are the top five HR trends you’ll need to watch closely in 2025: 1. AI is Changing the Hiring Game Artificial intelligence is no longer just a buzzword in HR—it’s a game-changer. Tools that can scan resumes, match candidates to roles, and even conduct initial assessments are becoming staples for businesses aiming to save time and improve hiring outcomes. In 2024, many organizations began integrating AI to remove unconscious bias and make their hiring practices more inclusive, and this trend is expected to accelerate. 2. Flexibility Isn’t Just a Perk Anymore Hybrid and remote work models are here to stay, but the conversation has shifted. In 2025, it’s less about offering flexibility and more about making it work effectively. Companies are adopting sophisticated tools for remote collaboration, redefining performance metrics, and ensuring policies address the nuances of managing both in-office and remote teams. The focus is on maintaining productivity without compromising employee well-being. 3. Wellness Goes Beyond Gym Memberships In recent years, wellness programs have evolved beyond basic offerings like gym memberships to address a wider range of employee needs. As companies recognize the link between employee well-being and productivity, they’re broadening their focus to include mental health, financial stability, and holistic support. In 2023 and 2024, for example, Delta expanded its employee wellness initiatives by improving access to mental health care. The airline worked with Spring Health, a new EAP provider, to create a larger and more diverse network of mental health professionals, offering better support for both employees and their household members. Looking ahead to 2025, wellness will become more deeply integrated into company cultures. Expect companies to go beyond providing reactive support to fostering proactive wellness through personalized tools, such as mental health apps, financial coaching, and enhanced benefits like paid leave for caregiving. With these programs, businesses are not just addressing immediate health concerns but also empowering employees to manage their overall well-being in a more holistic way. The focus will be on creating a supportive, sustainable work environment that helps employees thrive both at work and in their personal lives. 4. Upskilling is a Competitive Necessity Technology is evolving faster than ever, and companies are racing to keep up. Upskilling employees in areas like data analysis, AI, and emerging tech became a priority in 2024, and it’s clear that this trend will only grow. Businesses that invest in continuous learning programs—whether through certifications, on-the-job training, or digital learning platforms—are better positioned to stay ahead in their industries. 5. Data is Driving HR Decisions HR is leaning heavily on people analytics to guide decision-making. Instead of relying on intuition, businesses are using data to understand employee engagement, pinpoint reasons for turnover, and improve productivity. The emphasis on metrics like employee sentiment and workforce utilization gained traction last year, and more organizations are embedding analytics into their HR strategies to tackle challenges proactively. Final Thoughts The HR landscape in 2025 will be shaped by these transformative trends. Businesses that embrace innovation and prioritize their people will find themselves not just adapting but thriving in the evolving workplace. As these trends unfold, staying proactive and flexible will be the key to turning challenges into opportunities.

The IRS has released the 2025 Patient-Centered Outcomes Research Institute (PCORI) fee , which will increase to $3.47 per covered life —a $0.25 increase from 2024. This fee applies to plan years ending on or after October 1, 2024 , and before October 1, 2025 . What is the PCORI Fee? The PCORI fee was introduced as part of the Affordable Care Act (ACA) to help fund the research conducted by the Patient-Centered Outcomes Research Institute (PCORI). This research focuses on improving healthcare outcomes by comparing different medical treatments. The fee is levied on insurers, as well as self-insured and level-funded health plans. The fee is calculated based on the average number of covered lives under a plan and is due once a year, with the filing occurring during the second quarter on Form 720 , the Quarterly Federal Excise Tax Return . The payment is due by July 31 each year. Key Details for Employers and Plan Sponsors Who is Affected? : The fee applies to health insurers, self-insured health plans, and level-funded health plans. When is it Due? : The fee must be reported on Form 720 and paid by July 31 each year. How is it Calculated? : The fee is based on the average number of covered lives during the plan year. The updated $3.47 per covered life fee will be in effect for health plans with policy years ending between October 1, 2024, and October 1, 2025. Employers should be prepared to account for this increase when filing for 2025. For more information on the PCORI fee and its reporting requirements, consult the IRS Bulletin 2024-49 , published on December 2, 2024, or visit the IRS PCORI Fee page . 

In a move welcomed by many employers in the hospitality and service industries, the U.S. Department of Labor (DOL) has officially reinstated the pre-2021 tip credit rule. This change, effective December 17, 2024, follows a recent court of appeals decision that vacated the “80/20/30” tip credit rule that had been implemented under the Trump administration. If you’re wondering what this means for your business, don’t worry—this update doesn’t require any immediate action on your part. What Was the "80/20/30" Rule? Before we dive into the implications of the DOL’s latest rule change, let’s quickly review the "80/20/30" rule. This rule, introduced in 2021, placed specific restrictions on how much time tipped employees (such as waitstaff and bartenders) could spend on non-tip-generating duties (e.g., cleaning, setting up, and other side work). The rule essentially required that tipped workers spend at least 80% of their work hours on tip-generating activities to continue qualifying for the tip credit. Moreover, under the "80/20/30" rule, employers could no longer use the tip credit to offset wages for certain non-tip-producing activities, and they had to ensure that employees spent no more than 30 minutes at a time on side duties. This increased the burden on employers, as it required more careful tracking of employee duties and work hours to remain in compliance. Why Was the Rule Vacated? The court of appeals decision in August 2024 ruled that the "80/20/30" rule was too restrictive and inconsistent with the intent of the Fair Labor Standards Act (FLSA), which allows employers to take a tip credit for workers who perform both tipped and non-tipped duties. The court found that the new rule created unreasonable administrative burdens and restrictions that were not in line with past practices or legal precedents. In response to this ruling, the DOL moved quickly to restore the pre-2021 tip credit rule. What Does the Reinstatement of the Pre-2021 Rule Mean for Employers? With the reinstatement of the pre-2021 tip credit rule, the DOL has effectively simplified the way employers can apply the tip credit to their workers. Under the prior rule, employees who perform a combination of tipped and non-tipped duties can still qualify for the tip credit, as long as their primary job responsibility is related to tipped work. Employers no longer have to track the precise breakdown of time spent on tip-generating vs. non-tip-generating activities in the same way. This returns to the more flexible guidelines where as long as tipped employees perform "related" duties (e.g., cleaning their station, setting up for service), they can still receive the tip credit for those hours, provided those activities don’t dominate their workday. What Action Is Needed from Employers? For most employers, this change will not require any immediate action, as the final rule effectively restores the pre-2021 approach. The main thing to note is that employers should continue to comply with the broader requirements of the Fair Labor Standards Act (FLSA) and ensure they are properly paying employees at least the federal minimum wage (including tips) when they apply the tip credit. Here are a few things to keep in mind: Reassess Timekeeping Systems: While the rule change simplifies some aspects of record-keeping, employers still need to ensure they have a timekeeping system in place that accurately tracks the hours worked by tipped employees. It is essential to ensure that the wages (base pay plus tips) equal at least the federal minimum wage. No Need for Immediate Adjustments: If you were already applying the pre-2021 tip credit rule, no changes are necessary on your part. For those who had adjusted to the "80/20/30" rule, reverting back to the previous method should not require significant changes. State and Local Laws: Employers should still be mindful of any state or local laws that may have stricter requirements than federal law. Always check your state’s labor regulations to ensure full compliance. Why Is This Change Important? The reinstatement of the simplified tip credit rule provides relief to many employers, particularly in industries like restaurants, hotels, and other service-based businesses where tipping is common. The pre-2021 rule is seen as more employer-friendly, offering more flexibility in how tipped employees can spend their time without losing eligibility for the tip credit. For employers, this means less administrative burden, reduced risk of compliance issues, and potentially fewer legal challenges. This shift is a step toward simplifying labor law compliance for businesses already struggling with the complexities of wage and hour rules. Looking Ahead As we move further into 2025, it’s important for employers to stay informed of any future changes in federal labor regulations. While this change restores a previous rule, the DOL’s stance on tip credits and wage issues can continue to evolve. Employers in tip-dependent industries should continue to monitor updates from the Department of Labor and legal rulings to ensure ongoing compliance. The DOL’s restoration of the pre-2021 tip credit rule is a welcome change for many businesses, offering a return to simpler guidelines and less restrictive requirements. For most employers, no immediate action is required, but it’s always a good idea to review your practices to ensure they align with the updated rule. If you need further assistance in navigating these changes, reach out to Simco to ensure your business stays compliant in 2025 and beyond. 

As we move into 2025, several important federal law changes have taken effect or will soon take effect. Here’s a roundup of the key updates that impact businesses and employees: IRS Mileage Reimbursement Rate Effective January 1, 2025, the IRS standard mileage rate has increased to 70 cents per mile for business travel, up from 67 cents in 2024. This rate applies to all vehicles, including electric and hybrid models. While using the IRS rate for mileage reimbursement is optional, it remains a widely accepted standard for reimbursing employees who use their personal vehicles for work-related travel. If your organization uses the IRS rate, be sure your systems reflect this updated rate. Extension for EAD Automatic Extension Period Since 2022, the Department of Homeland Security has had temporary rules extending the automatic extension period for Employment Authorization Documents (EADs) from 180 days to 540 days due to processing backlogs. Starting January 13, 2025, this 540-day extension will become the permanent standard for certain EAD renewals. The final rule applies to EAD applications filed on or after May 4, 2022, that remain pending. For more details on this change, you can review the official guidance on EAD extensions. Federal Contractor Minimum Wage Increases As of 2025, the minimum wage for employees working under federal contracts has increased as follows: Contracts Covered by Executive Order 13658 : The minimum wage has risen to $13.30 per hour, with the minimum base wage for tipped employees increasing to $9.30 per hour. Contracts Covered by Executive Order 14026 : The minimum wage for both tipped and non-tipped employees is now $17.75 per hour. For more information on the contracts covered by these executive orders, including helpful FAQs and a side-by-side comparison, visit the Department of Labor's resources here .

Your HR technology does more than manage processes—it shapes the employee experience (EX) and directly impacts engagement. From onboarding to payroll and everything in between, the tools you choose can make or break how your workforce feels about their workplace. With 2024 winding down, organizations recognize that improving EX and employee engagement is crucial. Selecting a robust, scalable, and user-friendly human capital management (HCM) platform is no longer optional—it’s a cornerstone of strategic HR management. Why Businesses Are Rethinking Their HR Platforms The decision to invest in or replace an HCM system often comes down to both practical benefits and long-term strategy. A top-tier HCM platform should: Unify the employee lifecycle into a seamless, connected system. Scale with your business , meeting the needs of today while planning for tomorrow. Provide intuitive tools that empower employees to handle HR tasks independently. Organizations are prioritizing improvements in these key areas: Enhancing employee engagement and overall experience. Increasing transparency and communication across teams. Simplifying HR processes by consolidating multiple tools into one platform. Automating repetitive tasks to create efficiency. A recent trend shows that more than a third of businesses are considering switching HCM providers in the coming year. While cost reduction is the leading motivator, businesses also seek solutions that align with digital transformation goals and long-term growth. Tackling Security and Complexity As companies grow, managing employee data across multiple systems becomes increasingly risky. Disconnected platforms not only create inefficiencies but also heighten the potential for data breaches—a top concern for HR leaders today. As an isolved Network Partner, we at Simco offer a streamlined, all-in-one HCM platform. By consolidating HR processes into a single solution, we help businesses simplify workflows, protect sensitive employee information, and reduce the likelihood of security vulnerabilities. What Makes an HCM Solution Stand Out? When exploring HCM options, decision-makers look for features that drive efficiency, growth, and adaptability. The most sought-after platform capabilities include: End-to-end support for every stage of the employee lifecycle. Compliance tools that keep pace with changing regulations. Scalability to grow alongside your organization. User-friendly design that’s easy for both employees and administrators to navigate. Additionally, HR teams value vendors who: Continuously innovate to meet emerging needs. Prioritize the security of employee and business data. Offer dedicated support and training for their clients. The Case for Automation Automation is rapidly becoming a game-changer in HR. Key areas like recruiting, onboarding, benefits enrollment, and payroll can all benefit from automation, saving time and reducing errors. By streamlining these functions, HR teams can focus on strategic initiatives, like fostering a positive company culture and enhancing the employee experience. With an HCM platform like isolved, businesses can not only automate repetitive tasks but also gain deeper insights into their workforce. These insights can drive smarter decision-making and help create a more agile, productive organization. What Sets Simco Apart: HR Advisory Services At Simco, we offer more than technology solutions. We provide expert advisory HR services that help businesses navigate complex HR challenges and optimize their processes. Whether you need support on a specific project or comprehensive ongoing HR assistance, we offer flexible advisory services in both à la carte and package form. Our HR specialist works closely with you to understand your organization’s unique needs and create tailored solutions. From compliance to custom handbooks to recruiting, our services ensure that your HR practices align with your business objectives and help you maximize the impact of your technology investment. Ready to Upgrade Your HR Strategy? Modernizing your HR tech stack and strategy is about more than keeping up with trends—it’s about creating a system that supports your business and employees today, while preparing for tomorrow. With our comprehensive HCM solutions and advisory services, you can optimize your HR strategy, enhance employee engagement, and set your organization up for long-term success. Let’s start the conversation about how we can help you transform your HR processes. Contact us today to learn more! Source Information This blog post incorporates insights from isolved’s Fourth-Annual HR Leaders Report, which analyzed responses from over 1,000 HR decision-makers in management roles or higher across the United States. Conducted in early 2024, the report provides a comprehensive overview of trends, challenges, and opportunities in human capital management. It includes data from industries such as healthcare, manufacturing, and retail, with representation from organizations of all sizes. For additional details about the study, contact Simco!

As we welcome the New Year, employers across New York State must prepare for significant employment law changes that take effect on January 1, 2025. These updates, applicable to businesses of all sizes, highlight New York’s commitment to supporting workers and their families. Here's a breakdown of what’s new and how your organization can stay compliant. Paid Prenatal Leave: A New Benefit for Expecting Employees Starting January 1, 2025, New York employees who are pregnant will be entitled to 20 hours of paid prenatal leave within any 52-week period. This leave can be used for healthcare services related to their pregnancy and taken in increments as small as one hour.  Importantly, employers cannot require employees to provide medical documentation or information about their health condition to access this leave. Click here to read the state’s recently released FAQs . Action Steps for Employers Update Your Employee Handbook : Add a section on paid prenatal leave to ensure compliance. Train Your Managers : Educate leadership on this new entitlement to support expecting employees appropriately. Minimum Wage and Salary Threshold Adjustments To reflect the state’s continued focus on fair pay, minimum wages and salary thresholds are increasing in 2025. The changes vary based on location, with notable distinctions between New York City (and surrounding counties) and the rest of the state. New York City, Suffolk, Nassau, and Westchester Counties Minimum Wage : $16.50/hour Tipped Hospitality Workers : Service Employees: $13.75/hour Food Service Workers: $11/hour Home Care Aides : $19.10/hour Exempt Employees : Minimum Salary Threshold: $1,237.50/week ($64,350 annually) Rest of New York State Minimum Wage : $15.50/hour Tipped Hospitality Workers : Service Employees: $12.90/hour Food Service Workers: $10.35/hour Home Care Aides : $18.10/hour Exempt Employees : Minimum Salary Threshold: $1,161.65/week ($60,405.80 annually) How to Stay Ahead of Compliance Review Payroll Practices : Ensure that your systems reflect the updated minimum wages and salary thresholds starting January 1, 2025. Communicate Changes : Inform employees about the new wage rates and ensure tipped and exempt employees understand how these adjustments affect them. Monitor Industry-Specific Rules : Pay special attention to wage requirements for roles like tipped workers and home care aides. Looking Ahead New York State’s 2025 employment law updates reflect an evolving workplace landscape that prioritizes both fair wages and family-focused benefits. By proactively implementing these changes, businesses can foster compliance, improve employee satisfaction, and position themselves as forward-thinking employers. For additional guidance or support in updating your policies, Simco is here to help!

As 2024 draws to a close, one question looms large for employers: What’s driving employees to switch jobs? While salary and benefits consistently top the list of reasons employees explore new opportunities, a deeper dive reveals the factors that prompt them to make the leap. Benefits: A Critical Factor in Employee Decisions For employees who changed jobs in 2024, benefits were the most significant factor influencing their decision. This highlights a gap in the quality of benefits many employers provide. While 401(k) matching is the most common benefit reported by respondents, other essential offerings are surprisingly scarce: Only 43% of respondents have health insurance through their employer. Just 35% report having access to paid time off (PTO). These numbers suggest that many companies are falling short of what employees now view as basic expectations. Flexibility: The New Workplace Priority When deciding to accept a new role, flexibility in work environment emerged as the top motivator for employees, surpassing salary for the first time. This represents a significant shift from 2023, when 68% of respondents prioritized salary above all else. Today, remote or hybrid work options are reshaping how employees evaluate job opportunities. Millennials and Gen Z, in particular, are driving this trend, as they place a high value on flexible arrangements that support their lifestyles. For Millennials, flexibility ranks as a key factor in staying with an employer—26% cited it as their primary reason for remaining in their current role. Moreover, 16% of employees across generations indicated that flexible work environments are the top reason they’re not seeking new opportunities. Flexibility Is More Than Just Remote Work Flexibility doesn’t stop at where employees work—it’s about how they work. Flexible hours on top of hybrid models and remote options can be critical to reducing burnout and improving job satisfaction. 48% of employees believe flexible work environments help prevent burnout. 40% view a lack of flexibility as a threat to positive company culture. 1 in 10 employees would leave their job solely to gain more flexibility. By offering adaptable work arrangements, employers can improve retention and create a workplace that meets the evolving needs of today’s workforce. The Role of Personalization in Benefits Younger generations are also calling for more personalized benefits packages. Standard, one-size-fits-all plans no longer meet their diverse needs. Here’s how generational preferences vary: Younger employees prioritize tuition reimbursement and student debt relief nearly twice as much as older generations. Boomers value vision benefits three times more than Millennials. These differences underscore the need for employers to offer tailored benefits that reflect the unique needs of their workforce. The Impact of Benefits Enrollment Stress A significant portion of employees (72%) find benefits selection stressful, with unclear information and difficulty comparing plans being the top pain points. This stress can have serious consequences for employers: More than half of employees indicated that a poor benefits enrollment experience would drive them to seek a new job. 50% said a negative benefits experience overall would prompt them to leave. To address these issues, companies can leverage technology that simplifies the enrollment process. Tools that offer real-time comparisons and transparent cost breakdowns can significantly enhance the employee experience (EX). Payroll Errors: A Major Employee Concern While benefits play a crucial role in retention, payroll processes remain a top area for improvement. A staggering 60% of employees reported being affected by payroll errors. This underscores the importance of getting the basics right when it comes to HR functions. Accurate and reliable payroll processes are fundamental to fostering trust and satisfaction among employees. Meeting the Evolving Needs of Employees To attract and retain top talent, employers must adapt to changing expectations. This means: Enhancing benefits : Offer comprehensive, tailored packages that address generational preferences. Improving technology : Simplify benefits enrollment and ensure payroll accuracy. Prioritizing flexibility : Embrace remote, hybrid, and flexible work models to support employees’ work-life balance. By addressing these areas, employers can build a competitive edge in recruitment and retention, ensuring they meet the needs of a diverse and tech-savvy workforce. Survey Insights The insights in this article are based on the "Voice of the Workforce" report by isolved, which analyzed responses from 1,127 full-time U.S.-based employees ranging from entry-level staff to C-suite executives. The survey was conducted online in Q3 of 2024.

The holiday season is a time for celebration, but it can also bring potential risks for employers. To ensure a safe and enjoyable experience for all employees, consider the following strategies to mitigate risks during your company’s holiday gathering. 1. Make Attendance Optional Clearly communicate that attendance at the holiday party is optional. It’s essential to create an environment where employees don’t feel pressured to attend, as this can lead to resentment or claims of discrimination. Ensure that managers understand the importance of not implying that attendance is linked to performance evaluations. 2. Keep It Non-Work Related To maintain the festive spirit, avoid any work-related activities, such as presentations or updates. Hosting the event off-site and outside of regular business hours can reinforce the idea that this gathering is a time for relaxation and fun. Allowing employees to bring a guest can also enhance the social atmosphere. 3. Set Clear Expectations Prior to the event, establish guidelines around respectful behavior and responsible drinking. Remind employees that company policies, including those regarding harassment and conduct, remain in effect during the festivities. 4. Monitor Alcohol Service Plan to manage alcohol service carefully. Ensure that no minors or visibly intoxicated individuals are served alcohol. Consider hiring professional servers or holding the event at a venue with trained staff who can refuse service to those who have had enough to drink. 5. Opt for a Cash Bar Hosting a cash bar can reduce liability, as it signals that the company is not providing alcohol directly. This approach may also limit consumption, as employees will be more mindful of their spending. 6. Limit Alcohol Intake Distributing a set number of drink tickets can help control the amount of alcohol each attendee consumes. While this tactic has limitations, it can be beneficial in promoting responsible drinking. 7. Choose Appropriate Entertainment Select entertainment and venues that foster a respectful and inclusive atmosphere. Avoid any activities that could be seen as provocative or offensive, as these settings can lead to uncomfortable situations, especially when combined with alcohol. 8. Plan for Safe Transportation Make arrangements for employees to get home safely after the event. Options may include providing ride-sharing services, public transportation vouchers, or organizing group transportation. Encouraging attendees to designate a sober driver at the beginning of the party can also be an effective strategy. 9. Offer Food and Non-Alcoholic Beverages Provide a variety of food and non-alcoholic drinks. This consideration not only helps ensure the safety of employees but also demonstrates that the company values all attendees, including those who may not wish to consume alcohol. 10. Act Responsively If an employee is visibly intoxicated and needs assistance getting home, don’t hesitate to arrange transportation. It’s crucial to prioritize employee safety over any reluctance to intervene, as taking swift action can prevent serious consequences. Conclusion By implementing these strategies, employers can create a holiday party that fosters enjoyment while prioritizing safety and respect. With thoughtful planning and proactive measures, your company’s celebration can be a memorable and positive experience for all employees. Happy holidays from Simco!

In April 2024, we shared the U.S. Department of Labor’s (DOL) announcement of a new overtime rule under the Fair Labor Standards Act (FLSA), setting higher salary thresholds for white-collar exemptions, which first took effect on July 1, 2024. Now, as the second increase approaches, employers should prepare for the final phase of the rule, effective January 1, 2025, when salary levels will again rise for executive, administrative, and professional employees, as well as highly compensated employees. What Are the New Salary Thresholds? Starting January 1, 2025, employers will need to ensure that salaries meet the new DOL requirements to maintain overtime exemptions: Executive, Administrative, and Professional (EAP) Employees: To qualify for the overtime exemption, EAP employees must now earn a minimum salary of $58,656 per year (or $1,128 per week). Highly Compensated Employees (HCE): HCEs must earn at least $151,164 annually to maintain their exempt status under the new guidelines. These changes aim to ensure fair compensation and proper classification for employees, helping prevent wage and hour violations. Action Steps for Employers While there may be challenges ahead, employers must take proactive steps to get ready for the rule’s implementation as scheduled. Here are some recommended actions: Evaluate Your Workforce and Classifications: Review exempt roles, including job responsibilities and salary levels, to determine how upcoming changes will affect your organization and identify any necessary adjustments. Seek Legal Guidance: Collaborate with your legal team to understand the new rule's implications and ensure compliance with state laws. Prepare for Changes: Develop strategies for potential reclassifications, including necessary training and clear communication plans to inform affected employees about changes to their status and compensation. Final Thoughts As you prepare for the upcoming changes in the DOL's overtime rule, take this opportunity to review and optimize your compensation practices. Ensuring that employee classifications and salaries align with the new thresholds will help safeguard your organization against compliance issues and promote a fair work environment for all employees. If you need assistance or have questions, contact Simco !

If you recently received a notification that your Medicare plan is being discontinued for 2025, you're not alone. According to Healthpilot, a digital Medicare broker, some insurers are exiting unprofitable markets, leading to approximately 1.5 million Medicare Advantage enrollees losing their plans. Whether your plan is being discontinued or not, it’s important to take action quickly to ensure continuous coverage and get the best fit for your healthcare needs. Why Are Medicare Plans Being Discontinued? Many Medicare Advantage plans are being discontinued due to rising costs and changes within the industry. Insurers are facing increasing medical expenses as members require more care, compounded by the effects of the Inflation Reduction Act. Additionally, as the healthcare landscape evolves, insurers are grappling with how to remain profitable while still offering competitive health plans. This combination of factors has led to many plans being discontinued, prompting members to seek new coverage options. My Plan is Being Discontinued – What Now? Act Quickly: With your current plan expiring, you need to enroll in a new one. The standard Annual Enrollment Period (AEP) runs from October 15 to December 7, but if your plan is discontinued, you have until December 31 to select a new one. Just be aware that waiting past December 7 may leave you with a gap in coverage. Review Your Notice: Unlike the standard Annual Notice of Change (ANOC), the notification you received is a crucial signal to start your search for new coverage. Take a moment to read through it carefully, as it contains important details about your current plan’s discontinuation and next steps. Research Your Options: Don’t wait until the last minute. Start evaluating different Medicare plans that align with your healthcare needs and financial situation. Consider factors such as coverage specifics, provider networks, and costs. Our licensed insurance agents are available to assist you in comparing your options and finding a plan that works best for you. Avoid Coverage Gaps: To avoid any interruptions in your healthcare services starting January 1, make it a priority to enroll in a new plan by December 31. Double-check that your new plan starts on January 1 to maintain continuous coverage. My Plan Isn’t Being Discontinued – Should I Still Act? Even if your plan will continue next year, you might still want to consider making a change. Medicare plan benefits, premiums, and coverage can change annually. Whether it's finding better coverage, more competitive premiums, or improved benefits, it’s worth exploring your options. You can still schedule a meeting with one of our licensed insurance agents to review your current plan and discuss potential alternatives. We’re Here to Help At Simco, we understand how overwhelming it can be to navigate Medicare, especially during enrollment periods. That’s why our licensed insurance agents are here to provide personalized support and help you make the best decision for your needs. Whether your plan is being discontinued or you’re just looking for better options, don’t hesitate to reach out. Contact us today to schedule a 1-on-1 meeting or for more information on Medicare options. We’ll help you find the right plan to keep you covered in 2025!

The cost of personal insurance—homeowners and auto policies—has seen significant increases in recent years. Between 2021 and 2023, the average annual rate for homeowners insurance jumped by nearly 20%, according to Insurify . Auto insurance premiums, too, have risen by 16.5% in just the last year, based on data from the Bureau of Labor Statistics . With these rising costs, staying with your current insurer without exploring other options could mean you're overpaying. Here’s what you need to know about why rates are increasing and how you can mitigate those costs. Why Are Insurance Rates Rising? Several factors are contributing to the rise in personal insurance rates: 1. Climate Change and Natural Disasters: Extreme weather events, including hurricanes, wildfires, and floods, have caused a surge in claims, leading insurers to raise premiums to cover future risks. 2. Increased Cost of Materials and Labor: Rebuilding or repairing homes and vehicles is more expensive today due to rising costs in construction materials and labor. 3. Higher Medical Costs: Auto insurance premiums are also influenced by the cost of treating injuries after an accident. As healthcare costs continue to rise, so do insurance premiums. 4. Supply Chain Disruptions: Global supply chain issues have made vehicle repairs and replacements more expensive, driving up auto insurance rates. What You Can Do to Manage These Costs 1. Shop Around Regularly: While many people tend to stick with the same insurer year after year, it’s always a good idea to shop around. Comparing quotes from different providers can help you find better rates or discounts that you may not be aware of. Often, new customers are eligible for introductory offers that can save you money in the short term. 2. Review and Adjust Your Coverage: It’s important to ensure your coverage accurately reflects your current needs. For instance, you may be paying for unnecessary add-ons or more coverage than is required for your vehicle or home. On the flip side, underinsuring can be costly in the event of a claim. A thorough review of your policies can help you strike the right balance. 3. Bundle Your Policies: Many insurance companies offer discounts for bundling multiple policies, such as home and auto insurance. Bundling can be a simple way to reduce your premiums without sacrificing coverage. 4. Take Advantage of Discounts: Insurance companies often provide discounts for things like installing a home security system, having a good driving record, or being a long-time customer. Be sure to ask about available discounts when reviewing your policy. 5. Reach Out to a Specialist (Us!): Navigating the world of insurance can be a daunting task, especially with the rising costs of homeowners and auto policies. That's where having a specialist on your side can make all the difference. At Simco, we’re committed to helping you find the best coverage at the most competitive rates. How Simco Can Help Our team works with multiple insurance carriers, allowing us to shop the marketplace for you. This means we can deliver not just the lowest rates but also maintain the coverage you already have or suggest any changes that better suit your needs. Plus, switching is a breeze! We handle the entire process for you, including canceling your old policies—no hassle on your end. Working with a specialist at Simco means you can also benefit from annual policy reviews. This proactive approach ensures that if you notice a significant increase in your rates, we can quickly explore other options to save you money and guarantee you’re getting the best deal available. You’re never stuck with the same company, and we’re here to help you find the right coverage for your unique situation. At Simco, we understand the frustration that comes with rising insurance costs, and we're here to support you every step of the way. If you’re looking for guidance or want to explore your options, don’t hesitate to contact us today!

The onboarding process is critical for any organization. It sets the tone for a new hire’s experience, influences employee retention, and ultimately contributes to the overall success of the company. A well-structured onboarding process can help new employees feel welcomed, supported, and equipped for their roles. Leveraging Human Capital Management (HCM) software can enhance these processes, ensuring a seamless and efficient onboarding experience. Here are some of the top benefits of improving your onboarding process and how HCM software plays a pivotal role. 1. Faster Time to Productivity One of the most significant advantages of a streamlined onboarding process is the reduction in time it takes for new hires to become productive. By automating routine tasks such as document collection, training schedules, and policy acknowledgment, organizations enable new employees to focus on learning their roles rather than navigating administrative hurdles, allowing them to contribute to their teams more quickly. 2. Improved Employee Retention Research shows that effective onboarding can increase employee retention rates by up to 82%. By using HCM solutions to create a structured program, companies can provide consistent experiences that make new hires feel valued and engaged. Features such as progress tracking and feedback loops within the system allow managers to monitor integration and satisfaction levels, making it easier to address any concerns promptly. 3. Enhanced Compliance and Risk Management Compliance is a crucial aspect of onboarding, especially for industries with specific regulations. HCM technology ensures that all necessary training and documentation are completed before the employee starts their role. Automated reminders and tracking features help prevent any oversight, reducing the risk of non-compliance and potential penalties. 4. Personalized Training and Development With the help of innovative tools, organizations can tailor onboarding experiences to meet the unique needs of each employee. Advanced HCM software can analyze skills, learning styles, and role requirements to recommend personalized training modules. This individualized approach helps employees feel supported and valued, leading to higher engagement levels. 5. Consistent Communication and Engagement Effective communication during the onboarding process is essential for setting expectations and fostering relationships. The right software provides tools for consistent outreach, such as automated welcome emails, reminders for upcoming meetings, and resources for new hires to access at any time. This ongoing engagement helps build rapport between new employees and their teams, contributing to a more cohesive work environment. 6. Streamlined Document Management Onboarding often involves a significant amount of paperwork, from tax forms to company policies. A centralized document management system allows new hires to complete and submit necessary forms electronically. This not only saves time but also reduces the likelihood of errors or lost paperwork, ensuring a smooth transition into the organization. 7. Data-Driven Insights for Continuous Improvement Advanced analytics provide valuable insights that can help organizations assess the effectiveness of their onboarding processes. By using HCM software to track metrics such as employee satisfaction, retention rates, and training completion times, companies can identify areas for improvement. This data-driven approach enables continuous refinement of onboarding strategies, ensuring they remain effective and relevant. 8. Creating a Strong Organizational Culture A positive onboarding experience is an opportunity to instill the company’s values and culture in new employees. HCM technology can facilitate cultural training and integration, helping new hires understand their role within the broader context of the organization. By showcasing the company culture early on, employers can foster a sense of belonging and alignment with organizational goals. Investing in a better onboarding process is crucial for any business looking to enhance employee satisfaction and retention. HCM solutions provide the tools and resources necessary to streamline onboarding, making it more efficient and effective. By leveraging technology to create seamless processes, organizations can ensure that new hires feel welcomed, supported, and prepared for success from day one. As a result, companies can build a stronger workforce and cultivate a positive organizational culture that drives long-term success. Contact Simco to learn more about how our solution can transform your organization's onboarding strategy.

As we move into October, businesses have a unique opportunity to focus on safety in the workplace and beyond. October is Fire Prevention Month, with Fire Prevention Week running from October 6–12, 2024. This year’s theme, announced by the National Fire Protection Association® (NFPA®), is “Smoke alarms: Make them work for you!” – an essential reminder for both employers and employees to prioritize fire safety measures in all environments, whether at work or at home. Why Fire Safety Matters for Your Business For employers, fire safety is more than just a legal requirement; it’s about ensuring the well-being of employees and safeguarding company property. Fires can happen anywhere, at any time, and while workplace fire drills and safety measures are critical, it’s equally important that employees extend these safety practices to their homes. According to the NFPA, three out of five fire-related deaths in the U.S. occur in homes without working smoke alarms or where no smoke alarms are present at all. Ensuring that your employees are educated about the importance of fire safety, both in the workplace and at home, can be life-saving. Fire Prevention Week 2024: What Employers Should Know This year’s Fire Prevention Week campaign aims to raise awareness about the life-saving power of smoke alarms, which, when properly installed and maintained, reduce the risk of dying in a home fire by over 50%. For business leaders, it's a great time to encourage fire safety awareness through simple steps employees can take at home. Here are some key takeaways from this year’s theme: Install smoke alarms in every bedroom, outside sleeping areas, and on each level of the home. Test smoke alarms monthly by pressing the test button. Replace smoke alarms every 10 years or sooner if they aren’t functioning correctly. Consider sensory needs: Make sure smoke alarms meet the needs of everyone in the household, including those with disabilities. What Businesses Can Do This Month Fire Prevention Week and Month isn’t just about personal home safety—it also extends to the workplace. Business owners can take proactive steps to create a fire-safe environment and ensure employees are prepared in case of an emergency. Here’s how you can get involved:  Review Workplace Fire Safety Protocols Make sure your employees are familiar with your workplace fire prevention measures, exit routes, and safety equipment locations (such as fire extinguishers). Consider conducting a fire drill or a safety walkthrough this month. Share Fire Safety Resources Direct your employees to the NFPA's Fire Prevention Week resources on NFPA.org . These tools offer educational materials that your team can easily access to stay informed about fire prevention practices. Encourage Home Fire Safety Emphasize the importance of fire safety beyond the workplace by encouraging your employees to check the smoke alarms in their homes. You can distribute helpful reminders or even host a fire safety awareness session to educate your team on key best practices. Create a Culture of Safety Fire safety should be an ongoing conversation in your business, not just during October. By instilling a culture of safety, you ensure that both your employees and your workplace remain protected year-round. Conclusion Fire Prevention Month is a timely reminder of the importance of safety—both in the workplace and at home. As a business owner, you play a critical role in encouraging awareness and proactive measures that could save lives. Join the nationwide effort this October by revisiting your workplace fire safety protocols and sharing essential fire prevention tips with your employees. Together, we can create safer environments, ensuring that whether at home or work, everyone is prepared and protected. For more information and resources on Fire Prevention Week and the 2024 theme, “Smoke alarms: Make them work for you!”, visit the official NFPA site at fpw.org .

As workplace safety becomes an increasing priority for businesses, new laws are emerging to protect employees, especially in industries that face higher risks of violence. If you’re an employer in the retail sector, it’s important to stay informed about the upcoming compliance requirements in New York. Starting March 4, 2025, all retail businesses with 10 or more employees must have a written Workplace Violence Prevention Policy and a formal Employee Training Program in place. Let’s break down what you need to know and how to prepare for these new regulations. Who Does This Apply To? This new law, signed on September 5, 2024 (A08947), applies to employers in retail settings where 10 or more employees work. The scope is specific to retail stores, excluding businesses that primarily sell food for consumption on-site, such as restaurants and cafes. As part of this requirement, your business must create a written policy on workplace violence prevention and ensure employees are trained annually. Both the policy and training program must be presented to employees in their primary language upon hire and during annual training sessions. What Should the Workplace Violence Prevention Policy Include? The policy must clearly outline how your business will: Identify and assess potential hazards of workplace violence. Implement preventive measures to mitigate those risks. Define the roles and responsibilities of management and staff in maintaining a safe work environment. Establish procedures for reporting, investigating, and responding to workplace violence incidents. The New York Department of Labor (NYDOL) is expected to release a model policy and training materials that employers can adopt and implement. These resources are designed to help ease the burden on businesses by providing a ready-to-use framework. If you prefer, you can also develop your own policy and training program, as long as they meet or exceed the minimum standards set by the state. Why is This Important? Workplace violence is a significant concern, particularly in retail environments where employees interact with the public. According to OSHA, nearly 2 million U.S. workers report being victims of workplace violence every year, and retail workers are often at higher risk due to frequent exposure to volatile customer interactions, cash transactions, and late working hours. By implementing these new policies and training programs, not only are you complying with legal requirements, but you’re also taking proactive steps to protect your employees and minimize the risk of violent incidents. Additional Panic Button Requirement for Large Retailers In addition to the workplace violence prevention policy and training, businesses with 500 or more retail employees nationwide must also implement a panic button system by January 1, 2027. This can be fulfilled by providing employees with wearable panic buttons or mobile phone-based panic button solutions. These devices must be available throughout the workplace, giving employees an immediate means to signal for help in the event of a violent or dangerous situation. This added layer of protection is crucial in large retail settings where employees may be spread across different areas of the store, making it difficult to alert colleagues or security quickly during an emergency. Steps to Take Now While the effective dates may seem far off, preparing early is key to ensuring compliance and safeguarding your employees. Here are some steps you can take now: Review Your Current Safety Policies: If you already have safety policies in place, assess whether they address workplace violence adequately. If not, begin outlining a strategy for incorporating these new requirements. Stay Informed: Keep an eye on updates from the New York Department of Labor, as the model policy and training materials will help guide your compliance efforts. Consider Panic Button Options: If your business falls under the 500+ employee requirement, start researching panic button systems that can be implemented in your stores. Prepare Your Team: Start communicating these upcoming changes with your HR team and managers. Early planning ensures a smooth transition when the law goes into effect. Looking Ahead The workplace violence prevention policy and panic button requirements reflect a broader trend toward enhancing workplace safety across the retail industry. By complying with these new laws, you’re not only protecting your business from potential penalties but also fostering a safer, more supportive environment for your employees. Stay tuned for further updates, and don't hesitate to reach out to us if you have any questions about how this impacts your business.

With Election Day fast approaching, now is the perfect time for employers to ensure they’re fully informed about their responsibilities regarding voting leave laws and mandatory notices. Elections are a cornerstone of democracy, and it’s important to make sure your employees have the opportunity to exercise their right to vote without unnecessary hurdles. Many states have laws in place requiring employers to provide time off, sometimes paid, for employees to cast their ballots. As an employer, staying compliant and encouraging your workforce to vote helps foster a supportive and engaged environment. Additionally, it's crucial to understand any obligations you may have to notify employees of their rights around voting leave. Especially with the rise of remote work, ensuring all employees are aware of these rights—whether they are working on-site or remotely—demonstrates a commitment to both legal compliance and the well-being of your team. Let’s take a closer look at what you need to know as we approach the November 5 election. Voting Leave Most states require that employers provide at least a few hours off to vote, and sometimes those hours need to be paid. Often these laws require very little advance notice from employees about their need for leave, so employers should be prepared to grant last-minute requests to leave work to vote. If you’re in a state with early voting, you may want to encourage employees to take advantage of that option—by offering the same time-off benefit—to reduce the number of absences on Election Day. The availability of early voting and absentee ballots, however, doesn’t change an employee’s right to vote on Election Day if that’s their preference. Required Notices California, DC, and New York also require that employers post a notice about employees’ voting rights in a conspicuous location in the workplace. Employees who work from home or don’t report to the workplace regularly should be provided with these notices electronically. New York New York requires the notice to be posted at least 10 working days before the November 5 election (this would be October 22 for a Monday through Friday workplace). New York’s notice is available here . By understanding and adhering to your state’s voting leave laws and notice requirements, you not only stay compliant but also contribute to a positive, supportive workplace culture. Make sure your employees know their rights, and encourage them to get out and vote. A little preparation now will ensure a smooth Election Day for your team and your business.

As we step into the 2024-25 school year, businesses face new challenges and opportunities in supporting their employees. The intersection of work and home life is particularly pronounced during the school year, as employees with school-aged children navigate the demands of their professional roles alongside the needs of their families. Here are some practical strategies your organization can adopt to support your workforce during this critical time. 1. Flexible Work Arrangements The modern workplace is increasingly recognizing the need for flexibility. Offering flexible work hours or remote work options can significantly ease the burden on parents who need to manage school drop-offs, pick-ups, and attend school-related events. This flexibility can help reduce stress and increase productivity, as employees feel empowered to manage their time more effectively. 2. Back-to-School Resources Providing resources to help parents prepare for the school year can be a thoughtful gesture that shows you care about their personal lives. Consider offering workshops on time management, providing lists of educational resources, or even organizing a back-to-school supply drive. These efforts can make a significant difference in helping employees feel supported both at work and at home. 3. Mental Health Support The start of a new school year can be stressful for both parents and children. Offering access to mental health resources, such as counseling services or stress management workshops, can help employees cope with the anxiety and pressure that often accompany the school year. A focus on mental well-being not only supports individual employees but also fosters a more resilient and productive workforce. 4. Paid Time Off for School Activities Encouraging employees to take time off for important school activities, such as parent-teacher conferences or school performances, demonstrates a commitment to work-life balance. Some companies are now offering paid time off specifically for school-related activities, which can alleviate the guilt or stress employees might feel about missing work for family obligations. 5. Childcare Assistance Childcare remains a significant concern for working parents. Offering childcare assistance, whether through subsidies, on-site childcare facilities, or partnerships with local childcare providers, can greatly reduce the stress of finding reliable care. Even providing information about after-school programs or local childcare options can be a valuable resource for your employees. 6. Open Communication Channels Encourage managers to maintain open communication with their teams about the challenges they may face during the school year. Creating an environment where employees feel comfortable discussing their needs allows for better understanding and collaboration. Managers can then work with employees to find solutions that benefit both the individual and the organization. 7. Employee Assistance Programs (EAPs) Promoting the use of Employee Assistance Programs can provide additional support for employees balancing work and family life. EAPs often offer resources such as counseling, financial advice, and parenting support, which can be particularly beneficial during the school year. Remind your workforce of these available resources, and consider expanding them to meet the specific needs of parents. 8. Inclusive Planning and Policies Review your company’s policies and planning procedures to ensure they are inclusive of parents' needs during the school year. For example, avoid scheduling important meetings early in the morning or late in the afternoon when parents may be handling school-related duties. Involving employees in the creation of these policies can lead to more effective and widely accepted solutions. 9. Recognition and Appreciation Acknowledge the efforts of working parents by recognizing the additional challenges they face during the school year. Simple gestures like sending a note of appreciation or offering small rewards can go a long way in making employees feel valued. Recognition can boost morale and reinforce the company’s commitment to supporting its employees in all aspects of their lives. Supporting employees during the 2024-25 school year is not just about offering benefits; it's about creating a culture of understanding and flexibility that acknowledges the realities of modern family life. By implementing these strategies, your organization can help employees navigate the school year with greater ease and confidence, leading to a more engaged and productive workforce.

According to a Glassdoor report , in the year after the launch of ChatGPT, usage of that tool or those like it by professionals in the workplace more than doubled. Are you using an AI tool to help you with your work tasks? Have you considered doing so? If so, read on. There are advantages to be had and risks to note. The Basics of AI Artificial intelligence (better known as AI) is an umbrella term for a machine’s ability to make predictions, recommendations, decisions, and perform other tasks that would normally require human intelligence. Generative AI models, for instance, can create text, image, audio, and video in response to user prompts. ChatGPT is a kind of generative AI tool called a large language model. It functions similarly to the text predictor on your text messaging app—the feature that predicts and suggests what your next word will be—but at a much greater scale and with much more sophistication. It’s important to note that AI is not actually intelligent. It isn’t cognitive or aware. If you asked ChatGPT to give you a compliment, the AI model would say something nice about you, but it wouldn’t mean it. It isn’t capable of feelings, perceptions, or opinions. Given this limitation, AI should not be used as a substitute for human judgment. The Legal Landscape All the laws that govern employment still apply when you use AI to help make decisions or take action. Hiring and promotional decisions based on AI must still be free of discrimination. AI used in conjunction with providing and administering employee benefits must comply with the Employee Retirement Income and Security Act (ERISA) for covered employers. Using AI for data analysis must still comply with the Health Insurance Portability and Accountability Act (HIPAA), the Health Information Technology for Economic and Clinical Health Act (HITECH Act), and other laws. AI does not absolve you of your compliance obligations. As more and more AI solutions enter the market and AI becomes further integrated into the workplace, we can expect more legislative and regulatory activity. Best Practices If you decide to leverage AI for HR and compliance purposes, we recommend the following practices: Be diligent when considering and testing AI tools—no AI tool will be perfect, but some may be more reliable than others. Consult with an attorney when vetting AI vendors and reviewing contracts. Maintain the highest level of privacy practices and standards with all information exchanged with an AI tool. Implement and enforce an AI policy or set of guidelines so employees understand how they should and shouldn’t use AI at work. Rely on human expertise to evaluate what AI creates for you. As when using any knowledge-supporting tool (e.g., a search engine), assume it can and will make mistakes. Set aside time to fact check information and materials created by an AI tool and monitor AI use for discriminatory outcomes and other unlawful practices. Make sure any AI product your organization uses aligns with and contributes to your business needs. Keep your actual pain points in mind when thinking about ways to leverage AI tools. Survey employees about aspects of their work they dislike the most and areas of their work they think may benefit from an AI solution. Develop an AI strategy that explains what you’re using AI to accomplish and how you’ll measure success. Periodically evaluate your uses of AI against those goals and metrics. For example, if a goal for using AI is to save time, does using it in fact save time? Be transparent with employees regarding your point of view and intentions related to AI. Not everyone is excited about AI and what it means for their jobs. People have very strong feelings about it, positive and negative. As you develop and implement AI practices, monitor morale, solicit employee feedback, and show your appreciation for it. You’ll likely get more buy-in from employees if they have a say in how AI changes their work. Encourage employees to share how they’re using AI and what’s working and not working. Ensure that everyone feels safe raising concerns, asking for help, or admitting that AI isn’t working as the company may have hoped. Plan for continued education and constant monitoring. AI technology is advancing rapidly. Employees will need regular training as models develop and new laws pass. Continuously monitor federal and state law. Practices to Avoid Some practices may spell trouble for your organization. We recommend avoiding the following: Assuming an AI model or its output complies with federal and state laws. When asked to draft a termination letter, for example, an AI tool may produce a letter that cites reasons for the termination that it pulls out of thin air—and those reasons may even be unlawful. Don’t hand over AI generated resources or publish AI produced copy without thoroughly vetting it. Assuming AI’s sources are reliable or real. Just because AI tells you a law, regulation, or court case exists or says a certain thing doesn’t mean it does. Allowing yourself to be persuaded by AI’s confident tone. AI can sound authoritative when what it’s telling you is wrong or completely made up. Relying on AI to make employment-related decisions. AI does not provide you with a “get out of liability free” card. Using AI technology to analyze employee data containing protected health or personally identifiable information. Creating legal or legally required documents with generative AI. Uploading anything into an AI model that you wouldn’t want shared publicly.  Replacing human expertise with AI content. In conclusion, while AI tools can offer significant advantages in streamlining workplace tasks and decision-making, it's crucial to navigate their use with caution. Adhering to legal standards, maintaining privacy, and integrating human oversight are essential to harnessing the benefits of AI responsibly. By approaching AI thoughtfully, organizations can leverage its capabilities while mitigating potential risks and ensuring compliance with relevant regulations.

Given the continuing divisive political climate in the United States, many companies are grappling with whether and how to attempt to limit conversations about politics in the workplace. Some companies are also interested in channeling Election Day energy into supporting voter turnout efforts and providing nonpartisan voter education information and resources. This article explains what employers and managers can do and what pitfalls to avoid. Managing Workplace Political Conversations A private employer generally has wide latitude to limit political expression in the workplace provided they don’t run afoul of protected activity under Section 7 of the National Labor Relations Act (NLRA) or applicable state laws. However, it’s nearly impossible to limit all political conversation in the workplace, and any attempt to do so may hurt morale or employee engagement. At the same time, without guidelines, political conversations can quickly become disruptive and devolve into activity that is not in line with company policies or behavioral expectations. Here are approaches to consider for dealing with political expression in the workplace; the right approach will ultimately depend on the employer’s specific situation and culture. Most Permissive: Allowing Political Discussion Where a work environment has well-established norms around upholding an inclusive culture and respectful treatment of colleagues, an employer can often trust staff to be mindful of how they engage on hot-button topics and address any related issues on an as-needed basis. However, given current political polarization, even if a company has laid the groundwork to ensure its culture is civil and respectful, it may prove useful to communicate some ground rules ahead of the election. There is no way to guarantee that employees engage with civility, compassion, and measured language. An employer can, however, help set the stage by: Acknowledging that regardless of political party or beliefs, tensions are running high, and many team members may be feeling stress or fear related to the upcoming election. Reminding employees that the workplace is a place where everyone should feel safe, welcomed, respected, and included. Reminding managers that they shouldn’t assume that all employees share the same political beliefs. Communicating to employees that the company doesn’t want to limit healthy dialogue about important social issues, but it also has a vested interest in reducing disruptions and maintaining a culture of respect. Redistributing company harassment, discrimination, and general conduct policies. Prohibiting comments about candidates (or anyone else) that are discriminatory or harassing based on the candidates’ or their supporters’ race, sex, national origin, religion, color, age, disability, or any other legally protected characteristic. Reminding employees that too much personal conversation of any kind can interfere with performance expectations. Even an exchange that’s only a few minutes long, if it is divisive or disrespectful, could result in a loss of productivity and damage to morale. Encouraging employees to be mindful of how and when they engage in conversation on political topics. Some people enjoy talking politics while others find it stressful and don’t want to engage in political conversation at work. Encouraging employees to approach these conversations from a place of curiosity. Employees should attempt to understand the viewpoints of others, accepting that they may not find common ground. Conversation should be seen as an opportunity for better understanding, not a means to change someone’s mind. Setting guidelines for managers related to the election and political conversations, such as the ones at the end of this guide. Middle Ground: Prohibiting Certain Behaviors Employers may want to curb but not eliminate the possibility of political discourse in the workplace. In this case, it may be enough to spell out specific activities that are off-limits. For example: Distributing political materials in working areas or displaying campaign materials in employee workstations. Talking about political candidates in front of customers, vendors, or other workplace visitors. Discussing political candidates on company computers or internal communication channels (keep in mind that if employees are working from home, this will amount to a total ban). Prohibiting solicitation of money or support for political candidates or causes during work time. Employers should avoid cherry-picking topics that cannot be discussed. Singling out certain topics, such as “No discussing Black Lives Matter,” is likely to create employee morale issues and could even give rise to a discrimination claim. And even with a neutral policy, such as “No discussing religion,” employers need to ensure that they are perfectly consistent in enforcement. If, for instance, an employer only disciplined employees who were arguing about Judaism in the lunchroom, but not employees talking about Sunday’s Mass over the cubicle wall, that would be discriminatory. (This is why having a policy around civility, respect, and the use of “inside voices” will generally be safer and ultimately more effective in achieving the goal of a harmonious workplace.) Finally, the fact that many political topics bleed into one another makes enforcement an exercise in futility. A conversation on the topic of religious liberty might quickly turn into a conversation about trans rights or women’s rights, and a discussion about abortion might suddenly switch to a discussion about welfare policy and immigration. Employers taking the middle ground approach should also provide the guidelines presented above for the most permissive workplace and make sure they are familiar with Section 7, discussed next. Most Restrictive: Prohibiting Political Discussions An employer is within its rights to attempt to ban almost all political discussions in the workplace (exceptions are discussed below). That said, the risks of this approach are significant. A strict ban on talking politics in the workplace can send a message that an employer doesn’t trust employees to use good judgment and engage with coworkers respectfully. It also fails to recognize the impact that current political and social issues have on employees. Employers may also find it difficult to delineate what is considered political versus not political. What one person might consider an over-politicized issue may be very personal to someone else. For instance, prohibiting discussions about religious freedom, civil rights, and LGBTQ+ rights could feel like a prohibition on discussing an employee’s basic human experience. This can lead to feelings of exclusion and can potentially fuel claims of discrimination. It’s a common misconception that all speech is protected in all places, but the First Amendment right to free speech only protects people from having their speech limited by the government. Under federal law, private employers are free to regulate speech in almost any way that does not conflict with Section 7 of the National Labor Relations Act. However, some states have protections that could limit an employer’s ability to prohibit political speech. For example, California and the District of Columbia protect political affiliation and Connecticut protects employees’ First Amendment rights. Employers should check their state laws to ensure any limitations are legal. Section 7 of the National Labor Relations Act gives non-supervisory employees the right to discuss the terms and conditions of their employment at any time, in any forum (e.g., the break room, the sidewalk, Facebook, or Yelp).  This includes discussing: How much money they make, including any opinions about how their pay is impacted by race, national origin, sex, or their inclusion in any other protected class. Workplace safety, whether it relates to coming in to work during protests, specific hazards, or anything else safety related. Employer-required or recommended personal protective equipment. Treatment from management. Shift assignments. Anything related to unionizing. While this law protects some political activities, it doesn’t give employees the right to discuss politics that aren’t work-related during work hours. Employers that intend to limit workplace conversations should learn about Section 7 of the NLRA since it is easy to violate if its protections aren’t fully understood. Employers should make it clear in their communications that the company does not prohibit conversations that would be protected under the NLRA and does not limit employees’ ability to engage in off-duty political activities but may investigate off-duty conduct that violates company policy. When Employees Speak with Their Wardrobe As a general matter, employers can set and enforce consistently applied neutral uniform policies and dress codes. However, the NLRA makes it illegal to prohibit employees from wearing union buttons, t-shirts, and other insignia related to working conditions unless special circumstances warrant the restriction, such as legitimate safety concerns. Some workplaces ban clothing with graphics or slogans regardless of the political climate, which will generally solve for the political clothing problem automatically. But employers that have had a lax dress code (or, in many cases, no dress code) should consider whether the benefits of implementing stricter guidelines would outweigh the potential negative impact on culture and morale. Voting Leave It comes as a surprise to many employers that a majority of states require that employees be given time off to vote, and in many cases, that time must be paid. While we encourage employers to go above and beyond the bare minimum in any given year, providing added flexibility remains important to employees. Even where it’s possible to vote by mail or absentee ballot, many people still like to vote in person, so it’s important not to assume that everyone can or should vote by mail. Employers can do their part to encourage voting participation by removing obstacles at work. Ways to Facilitate Voting The most generous approach to encourage voting is making Election Day a paid holiday. This will maximize employees’ ability to vote without concern over lost income. However, this isn’t an option for many businesses, so employers may consider some of the following alternatives: Make Election Day a no-meetings day. Any meetings that are already scheduled should be rescheduled. Make Election Day a meeting-light day. Move meetings to allow the most time for voting and shorten meeting agendas. Work with managers to accommodate absences due to voting. Provide as much paid time off as an employee reasonably needs to vote (even if it’s not required by law). Trust employee estimates of how much time is reasonable or sufficient. Anticipate long lines. Be flexible and plan for last-minute voting leave requests. Voter Education and Civic Engagement Employers can help employees to be well informed of their state voting requirements and procedures and can take steps to promote civic engagement. Suggestions for this extra step include the following: Provide nonpartisan information about voting processes and procedures in each state where the company operates. There are many resources for this online. Choose a credible, nonpartisan source to share. Provide links to nonpartisan sites with information on how to volunteer as a poll worker or otherwise be involved in helping ensure a safe and smooth election process. Encourage employees to explore early voting options where applicable. Provide paid time off (volunteer time off) for voting-related volunteer activities such as being a poll worker. A few things not to do: Attempt to influence the political decisions of employees (e.g., by saying, “Our business won’t survive if candidate X gets elected” or “If you want to have a job, vote for candidate Y.”). Provide partisan information to employees. Force any employee or group of employees to participate in any political discussion, even if it seems nonpartisan. Ask employees how they voted. Take adverse actions, threaten, or retaliate against employees for how they vote or for their political beliefs. Whatever the company decides, even if it’s to provide the minimum required by law, it should communicate early and often about employees’ ability to take the needed time off to vote. Manager Guidelines In whatever way an employer decides to address workplace political discussion and voting leave, communication around manager expectations is key. Consider guiding managers to: Unify their team as much as possible while making space for different perspectives. Help employees avoid tension caused by differing political beliefs by separating the person from their politics. Get to know one another’s hobbies, pets, family, or life goals. Ground discussions in company values or strategic goals instead of political persuasion. For example, “The company believes racial justice is a human rights issue and aligns with our desire to create an inclusive workplace.” Limit discussion of their own political beliefs to avoid an appearance of favoritism for team members with similar beliefs. Monitor team discussions and climate, helping to redirect conversations as needed. Know the applicable state voting leave requirements and be as flexible as possible in allowing time off to vote. Follow company policy related to social media engagement with team members and colleagues. Avoid getting involved in employees’ off-the-clock political lives unless it has a connection to work or violates a company policy. Concerns about off-duty political activities should be brought to HR for guidance. Avoid attempting to influence employees’ political decisions or ask how they voted. Not take adverse actions, threaten, or retaliate against employees for how they vote or their political beliefs. In conclusion, navigating political discussions in the workplace requires a careful balance between maintaining a respectful environment and acknowledging employees' diverse viewpoints. By implementing clear guidelines and fostering an atmosphere of open, nonpartisan dialogue, employers can support a productive work environment while also encouraging civic engagement and respecting individual political beliefs.

To get ready for open enrollment, employers who sponsor group health plans should be aware of compliance changes affecting the design and administration of their health plans for plan years beginning on or after Jan. 1, 2025. These changes include limits that are adjusted for inflation each year, such as the Affordable Care Act’s (ACA) affordability percentage and cost-sharing limits for high deductible health plans (HDHPs). Employers should review their health plan’s design to confirm that it has been updated, as necessary, for these changes. In addition, any changes to a health plan’s benefits for the 2025 plan year should be communicated to plan participants through an updated summary plan description (SPD) or a summary of material modifications (SMM). Health plan sponsors should also confirm that their open enrollment materials contain certain required participant notices, such as the summary of benefits and coverage (SBC), when applicable. Some participant notices must also be provided annually or upon initial enrollment. To minimize costs and streamline administration, employers should consider including these notices in their open enrollment materials. Plan Design Changes ACA Affordability Standard The ACA requires ALEs to offer affordable, minimum-value health coverage to their full-time employees (and dependents) or risk paying a penalty to the IRS. This employer mandate is also known as the “pay-or-play” rules. An ALE is an employer with at least 50 full-time employees, including full-time equivalent employees, during the preceding calendar year. An ALE’s health coverage is considered affordable if the employee’s required contribution for the lowest cost self-only coverage that provides minimum value does not exceed 9.5% (as adjusted) of the employee’s household income for the taxable year. For plan years beginning in 2024, the adjusted affordability percentage is 8.39%. The affordability percentage for plan years beginning on or after Jan. 1, 2025, has not been released yet. Going forward, ALEs should take the following steps: Monitor future developments for the IRS’ release of the affordability percentage for 2025; and Once the affordability percentage is released, confirm that at least one of the health plans offered to full-time employees satisfies the ACA’s affordability standard. Because an employer generally will not know an employee’s household income, the IRS has provided three optional safe harbors that ALEs may use to determine affordability based on information that is available to them: the Form W-2 safe harbor, the rate-of-pay safe harbor and the federal poverty line safe harbor. Out-of-Pocket Maximum Limits Non-grandfathered health plans and health insurance issuers are subject to limits on cost sharing for essential health benefits (EHB). EHBs reflect the scope of benefits covered by a typical employer plan and must include items and services in 10 general categories, including emergency services, hospitalization, ambulatory patient services, prescription drugs, pregnancy, maternity and newborn care, mental health and substance use disorder services, rehabilitative and habilitative services, laboratory services, preventive and wellness services and chronic disease management, and pediatric services. The annual limits on total enrollee cost sharing for EHB for plan years beginning on or after Jan. 1, 2025, are $9,200 for self-only coverage and $18,400 for family coverage. With this in mind, employers should take the following steps: Review the out-of-pocket maximum limits for the health plan to ensure they comply with the ACA’s limits for the 2025 plan year; and Keep in mind that the out-of-pocket maximum limits for HDHPs compatible with HSAs must be lower than the ACA’s limits. For the 2025 plan year, the out-of-pocket maximum limits for HDHPs are $8,300 for self-only coverage and $16,600 for family coverage. Preventive Care Benefits The ACA requires non-grandfathered health plans and issuers to cover a set of recommended preventive services without imposing cost-sharing requirements, such as deductibles, copayments or coinsurance, when the services are provided by in-network providers. The recommended preventive care services covered by these requirements are: Evidence-based items or services with an A or B rating in recommendations of the U.S. Preventive Services Task Force; Immunizations recommended by the Advisory Committee on Immunization Practices for routine use in children, adolescents and adults; Evidence-informed preventive care and screenings in guidelines supported by the Health Resources and Services Administration (HRSA) for infants, children and adolescents; and Other evidence-informed preventive care and screenings in HRSA-supported guidelines for women. Health plans and issuers are required to adjust their first-dollar coverage of preventive care services based on the latest preventive care recommendations. In general, coverage must be provided for a newly recommended preventive health service or item for plan years beginning on or after the one-year anniversary of when the recommendation was issued. For example, health plans and issuers must cover screenings for anxiety disorders in adults , including pregnant and postpartum patients, effective for plan years beginning on or after June 30, 2024 (e.g., the plan year beginning Jan. 1, 2025, for calendar-year plans). More information on the recommended preventive care services is available at www.HealthCare.gov . Before the beginning of the 2025 plan year, employers should take the following step: Confirm the health plan covers the latest recommended preventive care services without imposing any cost sharing when the care is provided by in-network providers. Health FSA Contributions The ACA imposes a dollar limit on employees’ pre-tax contributions to a health FSA. This limit is indexed each year for cost-of-living adjustments. An employer may set their own dollar limit on employees’ contributions to a health FSA as long as the employer’s limit does not exceed the ACA’s maximum limit in effect for the plan year. For plan years beginning in 2024, the health FSA limit is $3,200. The IRS has not yet released the health FSA limit for plan years beginning in 2025. Moving forward, employers with health FSAs should take these steps: Monitor future developments for the release of the health FSA limit for 2025; Once the IRS releases the health FSA limit, confirm that employees will not be allowed to make pre-tax contributions in excess of the limit for the 2025 plan year; and Communicate the health FSA limit to employees as part of the open enrollment process. HDHP and HSA Limits The IRS limits for HSA contributions, HDHP minimum deductibles and HDHP maximum out-of-pocket expenses all increase for 2025. The HSA contribution limits will increase effective Jan. 1, 2025, while the HDHP cost-sharing limits will increase effective for plan years beginning on or after Jan. 1, 2025. Looking ahead, employers should take these steps:  Check whether HDHP cost-sharing limits need to be adjusted for the 2025 limits; and Communicate HSA contribution limits for 2025 to employees as part of the enrollment process. The following table contains the HDHP and HSA limits for 2025 compared to 2024. It also includes the catch-up contribution limit that applies to HSA-eligible individuals age 55 and older, which is not adjusted for inflation and stays the same from year to year.

The Importance of Stay Interviews Stay interviews aim to discover what makes an employee want to work—or stop working—for the organization and identify any aspects of the company that need to be addressed to make working there more attractive. Not only can stay interviews enlighten small businesses about issues before they manifest into employee departures, but they also help employees feel heard, showing them that their employer cares enough about retaining them to improve workplace operations. Stay Interview Best Practices for Employers Impactful stay interviews can help maximize employee satisfaction, engagement, and retention. Consider the following best practices for stay interviews: Establish Clear Objectives: Before conducting stay interviews, employers should establish clear objectives and goals. It’s important to determine what information should be gathered from employees and how it will be used to improve engagement and retention strategies. Examples of clear objectives might include: Identifying specific factors that contribute to employee job satisfaction and areas for improvement. Understanding employee career aspirations and development needs to tailor growth opportunities. Integrate Stay Interviews into Onboarding: Stay interviews aren’t just for the company’s tenured employees; they can be incorporated into the 30-, 60-, and 90-day milestones of employee onboarding. By gauging employee satisfaction early on, small businesses can proactively address any issues and make necessary adjustments. Create a Safe and Confidential Environment: Employees should be assured that their feedback will be kept confidential and that there will be no negative repercussions for sharing their thoughts and concerns. Train Interviewers: Ensure that managers and HR professionals conducting stay interviews are adequately trained in effective communication and active listening skills. This helps in building trust and encouraging honest feedback from employees. Ask Open-ended Questions: Open-ended questions can prompt employees to freely share their thoughts, feelings, and experiences. Examples of open-ended questions include: Are there any challenges or obstacles you’re currently facing in your role? How can we better support your professional growth and development? What would cause you to consider leaving the organization? Identify Actionable Insights: After conducting stay interviews, feedback must be analyzed to identify common themes, trends, and actionable insights. This analysis can reveal underlying issues that need to be addressed to improve employee satisfaction and retention. Follow Up and Track Progress: Following up with employees after stay interviews is crucial to communicate any actions taken based on their feedback and provide progress updates. This demonstrates that the organization values their input and is committed to making improvements. Additional Tips for Navigating Stay Interviews Navigating stay interviews effectively requires careful planning and execution. Here are some additional tips to enhance the stay interview process: Schedule Regular Stay Interviews: Instead of waiting for an employee to reach a critical point, schedule stay interviews at regular intervals. This proactive approach helps in continuously monitoring employee satisfaction and addressing issues promptly. Tailor Questions to Individual Roles: Customize the questions based on the specific roles and responsibilities of employees. This ensures that the feedback is relevant and provides deeper insights into role-specific challenges and opportunities. Encourage Honest Feedback: Foster a culture where honest feedback is valued and appreciated. Encourage employees to share their genuine thoughts and feelings, even if they are critical, to gain a true understanding of their experiences. Document and Share Success Stories: Share success stories where stay interviews have led to positive changes within the organization. This can motivate other employees to participate actively and provide valuable feedback. Stay interviews represent a proactive approach to employee retention, as they allow small businesses to gain valuable insights into the factors influencing job satisfaction and commitment. By implementing best practices, organizations can strengthen employee engagement, improve retention rates, and foster a positive workplace culture.

In today's digital era, technology's influence on mental health care is rapidly evolving. Two notable trends are the use of Artificial Intelligence (AI) and social media platforms. While these technologies offer potential benefits, they also present significant risks. This blog explores the impact of AI on mental health care and the dangers of self-diagnosis through social media.

The U.S. District Court for the District of Montana recently awarded over $32,000 in penalties against an employer’s self-insured health plan and its third-party administrator (TPA) for failing to provide information to a plan participant upon request. Employees should be aware of their benefits-related rights and understand how to obtain the information they need. What Are ERISA Requirements? The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for employee benefit plans maintained by private-sector employers, requiring employers to automatically provide employees with certain benefits-related documents, such as a summary plan description (SPD). ERISA also requires employers to provide certain documents upon written request by a participant or a beneficiary. These documents include the latest SPD, Form 5500, bargaining agreement, trust agreement, and any contract or other instrument under which the plan is established or operated. What Happened in Court? In this most recent case, a plan participant and his daughter sued their self-insured health plan and its TPA after the plan denied coverage for the daughter’s mental health treatments. In part, the plaintiffs alleged that the plan violated the federal Mental Health Parity and Addiction Equity Act (MHPAEA) by applying a more restrictive limitation on mental health treatment than on treatment for medical and surgical issues. The plaintiffs requested a copy of documents related to the plan’s compliance with MHPAEA, including information regarding the plan’s application of nonquantitative treatment limitations. The court concluded that the requested MHPAEA-related documents fell under ERISA’s disclosure requirement, which means that the defendant’s failure to respond triggered penalties. The court awarded penalties of $110 per day for 294 days, from 30 days after the plaintiffs’ written request through the date the lawsuit was filed, totaling $32,340. What Does This Mean? ERISA is meant to help employee benefits plan participants understand how their plan works and their eligibility for benefits. As such, employees are entitled to certain benefit-related documents, and upon request, they must be provided in a timely manner.  Talk to your manager or HR representative if you have any questions or concerns about employee benefits.

By staying current on trends, HR professionals can plan for changing compliance requirements, navigate new technologies and adapt to employee needs. The middle of the year is a great time to evaluate HR progress, recalibrate any efforts to close the year strong and inform forward-thinking strategies to maintain a competitive edge moving into 2025. This blog article highlights seven HR trends to follow during the second half of 2024. 1. Employee Attraction During the time of record-high labor figures in 2021 and 2022, workers used their leverage to demand higher wages, better benefits and more career development opportunities and were willing to change employers to do so. Today, labor metrics show that the worker-friendly employment landscape has recovered to give more leverage back to employers. However, attracting employees can still be difficult, particularly for industries with high turnover rates and roles that require niche skill sets. 2. Pay Transparency Although there is no comprehensive federal pay transparency law in the United States, around a quarter of all workers are covered under pay transparency laws. The number of employees covered by such laws continues to grow each year, with more laws taking effect in 2025. Not all organizations are covered by these rules, but more employers are pursuing transparent job postings to stay ahead of requirements and win over workers. 3. Artificial Intelligence (AI) The use of AI has gained even more traction this year. Research from Microsoft published in May 2024 found that the use of generative AI had doubled in just the most recent six months. Today, around 75% of global knowledge workers use AI. Lingering concerns remain as more organizations implement AI into their day-to-day operations and equip workers to use tools to enhance their job performance. 4. Well-being and Productivity One of the most notable proactive wellness trends is how employers tie this concept to employee productivity. Data consistently shows that employees with a poor sense of well-being are less productive. Research from Gallup found that $322 billion in turnover and lost productivity costs globally are due to employee burnout. Other factors, such as poor physical health, can drive workers to miss more work. 5. Learning and Development (L&D) More employers are concerned that they cannot train their employees fast enough to keep up with technology development, so they are shifting their core L&D focus to future-proofing. The current workplace requires frequent learning and relearning of new skills. To ensure workers’ skills keep up with workplace demands, employers are upskilling technology abilities and developing transferrable soft skills. 6. Voluntary Benefits According to Zywave’s 2023-24 Attraction and Retention Benchmarking Overview, 69% of survey respondents identified offering competitive health care benefits amid rising costs as one of their organization’s top three most significant attraction and retention challenges. Almost 16% of respondents plan to expand voluntary benefits options in the next year, and most respondents (64.75%) offer voluntary benefits as part of a strategy to improve employee attraction and retention. 7. Election Season Federal, state and local elections are scheduled for Tuesday, Nov. 5. During recent election cycles, politically charged environments have created contention in the workplace (e.g., inappropriate workplace behavior, social media activism, free speech disputes and dress code controversies). Employers in states without formal voting requirements often offer lenient voter leave options. A well-planned approach can help deter inappropriate behavior and use the election cycle to engage employees. Contact Simco today for more information or for your copy of the 2024 Midyear HR Trends to Monitor.

A new Harris Poll survey found that most employed Americans are satisfied with their company’s paid time off (PTO) policy; however, 3 in 4 said they didn’t use the maximum PTO permitted by their employer. According to the survey, most U.S. workers get between 11 and 30 PTO days yearly. Last year, the average employed American took 15 paid days off despite many being allowed more. The top use cases were vacation and health and wellness (e.g., sick days and doctor appointments). Consider these additional key findings from the survey: Most Americans (83%) are satisfied with their company’s PTO policy. Over half (60%) are given more than 10 PTO days annually. An additional 7% have an “unlimited vacation policy.” Nearly one-third (32%) of American workers indicate that “unlimited vacation policy” means more than 30 days off. Most (78%) do not use the maximum PTO allowed by their employer. The average worker took 15 paid days off last year despite half (49%) being allowed more than that by their employer. The top barriers preventing workers from taking more time off are “pressure to always be available and responsive to demands” (31%) and “heavy workload” (30%). Even when workers took time off, 60% reported struggling to fully disconnect from work. As such, 86% checked emails from their boss, and 56% took work-related calls during time off. Similarly, nearly half of the workers said they felt guilty about taking the time off in the first place. Specifically, Millennials and Generation Z are nervous about requesting PTO due to employer reactions and career implications. As a result, many millennials admitted to workarounds, such as moving their mouse to maintain online messaging status or taking time off without telling their manager. According to the Harris Poll survey, 76% of workers say, “I wish my workplace culture placed a stronger emphasis on the value of taking regular breaks and utilizing PTO.” Employer Takeaway Despite more employers expanding their PTO policies, workplace culture and workload pressures tend to dictate working Americans’ benefit usage. Furthermore, many workers still check their email or feel guilty during their time off, which can cause them not to recharge as intended. To combat these behaviors and the potential for burnout, employers can foster a company culture focused on taking PTO, not just the policy itself. Today’s workers find it increasingly challenging to balance their work commitments and personal time off, but employers may choose to work on building a culture that supports and encourages breaks. Employers should continue to monitor trends to make the right employee benefits decisions for their respective organizations and employees. Contact Simco today for more information.

On June 28, 2024, the U.S. Supreme Court issued a decision in Loper Bright Enterprises v. Raimondo and Relentless Inc. v. Department of Commerce . The Court overruled its 1984 decision in Chevron, U.S.A. Inc. v. Natural Resources Defense Council Inc. , which held that courts should defer to federal agencies to interpret ambiguities and gaps in the laws that the agencies implement (known as Chevron deference). Background Congress has the authority to pass laws that govern employers, and federal agencies have the authority to enforce those laws. To fill in any gaps or to remedy any ambiguities, federal agencies may issue more detailed guidance on how the laws should be interpreted and applied. For example, agencies may publish informal guidance, issue opinions or publish formal regulations. Under the doctrine of Chevron deference, courts are directed to defer to such agency guidance where the statute is ambiguous and the agency’s interpretation is reasonable. In Loper and Relentless , the plaintiffs argued that Chevron should be overruled. The plaintiffs contended that courts should have the authority to interpret ambiguous laws and should have no obligation to adhere to federal agency guidance. Supreme Court Ruling The Supreme Court overruled Chevron deference in a 6-3 decision. In its opinion, the Supreme Court held that the Administrative Procedure Act requires courts to exercise their independent judgment in interpreting the law, and consequently, “courts may not defer to an agency interpretation of the law simply because the statute is ambiguous.” However, the Supreme Court noted that the holdings of prior cases that relied on Chevron deference remain lawful and may not be overturned solely because they relied on Chevron . Impact on Employers Chevron deference has had a meaningful influence on the interpretation and enforcement of employment laws. Federal employment agencies, including the U.S. Equal Employment Opportunity Commission, the Occupational Health and Safety Administration, the U.S. Department of Labor (DOL) and the National Labor Relations Board, have relied on Chevron deference in issuing and defending agency interpretations. In light of the Supreme Court’s ruling, federal agencies will not be able to rely on Chevron deference in existing litigation, including lawsuits that have been filed to challenge the DOL’s independent contractor and overtime rules, and may be subject to additional legal challenges regarding existing rules. Federal agencies may also issue fewer regulations and take more moderate positions in the regulations they issue, and they may face greater difficulty in addressing policy issues.

In today’s fast-paced and ever-changing workplaces, employee retention is at the top of many employers’ minds. As such, savvy employers are offering continuous learning and development (L&D) opportunities to make their organizations attractive places to work and stay. Employers who invest in robust L&D programs not only enhance their workforce’s skills and knowledge but may also boost employee engagement, retention and overall organizational performance. This article explains key elements of an L&D program, highlights common pitfalls to avoid and outlines best practices for developing a sustainable program. Defining a Successful Program A successful L&D program aligns with the organization’s strategic goals and addresses the specific needs of its employees. It is comprehensive, covering a range of learning styles and methods to ensure inclusivity and effectiveness. With this in mind, here are the key elements of L&D programs: Business goal alignment —An L&D program should support the company’s mission, vision and strategic objectives. This alignment ensures that the skills and knowledge gained through this program directly contribute to the organization’s success. Needs assessment —In general, employers pursue L&D to upskill employees, address skills gaps and labor shortages, develop talent for highly skilled positions or leadership, and retain motivated employees seeking career growth. Employers should conduct a thorough analysis to identify the skills and knowledge gaps within the organization. Such assessment should involve input from various stakeholders, including employees, managers and executives. Diverse learning methods —It’s important to incorporate a mix of learning formats, such as career development plans, e-learning, workshops, on-the-job training, mentoring and coaching. Diversity in learning methods caters to different employee learning preferences and needs and helps maintain engagement. Measurable outcomes —As with any workplace initiative, it’s critical to establish clear, measurable goals for an L&D program. Metrics such as employee performance improvements, promotion rates and retention rates can help gauge a program’s effectiveness. Continuous improvement —L&D is not a “one-and-done” type of effort. To ensure a program remains relevant and effective, employers should regularly review and update their programs based on feedback and changing organizational needs. Common L&D Mistakes Despite an organization’s best intentions, some mistakes can hinder the success of an L&D program. Here are some common pitfalls to avoid: Not aligning with business goals —An L&D program that does not align with the organization’s objectives can result in wasted resources and minimal impact on performance. Employers should always ensure that their programs support the broader strategic goals. Using a one-size-fits-all approach —A lack of personalization can lead to disengagement, so avoid using a uniform approach for all employees. Individual learning needs and preferences vary, and programs should reflect that. Neglecting feedback —Failing to gather and act on feedback from participants can prevent a program from evolving and improving. Employers should regularly solicit employee feedback to make necessary adjustments. Ignoring the importance of soft skills —While technical skills are important, soft skills (e.g., communication, resilience, accountability and problem-solving) are equally critical. Impactful L&D programs address both hard and soft skills. Evaluating insufficiently —Without proper evaluation, it’s challenging to measure the effectiveness of an L&D program. Robust evaluation methods—such as employee engagement surveys, manager and employee feedback, and key performance indicators—can assess a program’s impact and identify areas for improvement. L&D Best Practices for Employers Implementing a successful L&D program requires careful planning and execution from organizations. Best practices for employers to consider include the following: Foster a learning culture. Employers should encourage a culture where learning is valued and supported at all levels of the organization. This can be achieved by promoting sustained learning and providing employees with the necessary resources and time to engage in L&D activities. Leverage technology. Learning management systems (or LMSs) and other digital tools can help deliver and manage training programs. Technology can also facilitate personalized learning experiences and provide valuable data for measuring program effectiveness. Engage leadership. Company leaders and managers should be actively involved in the L&D program; their support and participation can drive employee engagement and demonstrate the importance of continuous development. Personalize programs to individual needs. It’s critical to customize learning paths based on individual employees’ roles, career aspirations and learning styles. Personalized learning experiences can significantly enhance motivation and retention. Promote collaboration. Employers can encourage collaborative learning through group projects, peer mentoring and team-based training sessions. Collaboration fosters a sense of community and allows employees to learn from each other’s experiences. Summary Employers of all sizes are building L&D programs, but not all programs are alike. Establishing a successful L&D program is a strategic investment that can yield significant returns for employers and enhance their workforce’s capabilities and success. As the business landscape evolves, a commitment to ongoing L&D will remain a critical factor in maintaining a competitive edge in the race for top talent. Contact us today for more workplace guidance.

Noncompete agreements are often viewed as a double-edged sword in hiring and employee management. While they may help safeguard proprietary and confidential information, they can pose hiring challenges. As such, employers must carefully navigate the complexities of noncompete clauses, balancing their protective benefits with the need to maintain a motivated and mobile workforce. As regulatory landscapes evolve, companies may need to reevaluate their reliance on noncompete agreements and explore alternative strategies for safeguarding their competitive interests. This article explores noncompete agreements, their impact on employers and considerations when drafting them. Overview of Noncompete Agreements A noncompete agreement, also known as a restrictive covenant agreement, is a contractual term between an employer and a worker. It blocks the employee from working for a competing employer or starting a competing business, typically within a certain geographic area and period of time after their employment ends. These agreements can protect companies from losing valuable employees and confidential information to competitors and help maintain competitive advantages. Noncompete agreements are more prevalent in industries such as technology, sales and health care, where sensitive information and specialized skills are crucial. However, enforceability varies by jurisdiction. Noncompete Bans The enforceability of a noncompete agreement is generally determined by state and local legislatures and courts. Some states impose strict limitations or outright bans on noncompete clauses. On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a final rule prohibiting employers from entering into or enforcing noncompete clauses with most employees. Scheduled to take effect on Sept. 4, 2024, the final rule applies to noncompete agreements with all current and former workers, whether full-time or part-time, including but not limited to employees, independent contractors, interns, externs and apprentices. However, employers should note that the FTC ban will only prohibit post-employment noncompetes. Employers may still restrict current employees from engaging in competitive activities. The FTC stated that it aims to promote competition by protecting workers' freedom to change jobs, increasing innovation and fostering new business formation. The Hiring Impact of Noncompetes The labor market likely will continue to be competitive. Without a noncompete, workers have more freedom to move to another company in the same industry without legal repercussions. As a result, the fight for talent could get even tougher. As with any workplace decision, using noncompete agreements comes with advantages and drawbacks. Consider the following pros of noncompetes as they relate to employee attraction and retention: Increased employee retention —Noncompetes discourage employees from leaving the organization and working for competitors, which can result in lower turnover rates. Organizations invest heavily in their workers, including onboarding, learning and professional development resources. Maintained competitive advantage —Noncompetes aim to protect sensitive business information, including trade secrets and customer base. Organizational success will likely be achieved by safeguarding company information and relationships that differentiate them from the competition. As such, top talent wants to work for a leading company. Conversely, here are some talent-related cons of noncompetes for companies to consider: Deterrent to candidates —Job candidates may have concerns about the necessity of noncompetes, causing them to remove themselves from consideration or reject offers. Increased legal liability and costs —Noncompetes are employment contracts with complex rules. Organizations that impose unfair restrictions could face employee lawsuits. Additionally, it can be costly for employers to enforce such agreements. Employee lawsuits also have the potential to damage the employer’s reputation, impacting attraction and retention. Employer Considerations First, employers should consider whether a noncompete agreement is legally enforceable in their state. Legal counsel can advise employers on how enforceable a noncompete agreement would be in the company’s location and industry. Employers can also assess any industry-specific concerns. For example, companies with patented technologies or workers in sales roles may use noncompete agreements. Organizations can also research whether industry competitors require noncompetes with their employees to strengthen attraction and retention efforts. It can be beneficial to remain consistent with the industry, which levels the playing field when competing for talent. Aside from legality, employers can also consider if noncompete agreements are fair and reasonable to departing employees. When employees who have signed a noncompete leave the company for another job, it’s important for the agreement not to hinder their ability to make a living. Employees may take a new job for many reasons, such as a career progression the current employer couldn’t offer, greater compensation and a more suitable location. Employers should review the terms of their noncompetes to ensure fairness even if the employee is moving to a competitor. Lastly, being upfront about whether an organization requires new hires to sign noncompete agreements is important. Include that information in job postings or communicate it immediately with candidates so the clause doesn’t become an issue later in the interview or hiring process. Companies may lose good candidates due to noncompetes, but it’s better to have the conversation early on to avoid wasting the time of candidates and recruiting teams. Employers may also keep candidates formerly employed by competitors in the pipeline and reconnect with them after their noncompete has expired. Summary Employers need to take many considerations into account before implementing a noncompete agreement while also staying up to date on the latest rules and laws. Furthermore, since noncompete agreements are often the subject of litigation, employers should consult their legal counsel before making any decisions. Contact Simco for more workplace guidance.

A new report by health care benefits company Lively found that 81% of organizations plan to add or improve employee benefits in the next year to better recruit and retain employees. Furthermore, the report showed that employee experience, feedback and ease of use matter the most when benefits leaders decide to select or renew with benefits providers. Lively’s report gathered employee benefits data and insights from 250 U.S.-based HR and benefits decision-makers. Consider these additional key takeaways from the 2024 report: Flexible benefit offerings are on the rise. One in 4 organizations plan to add wellness benefits, bonuses and emergency savings accounts in the next year. Furthermore, 1 in 5 companies plan to add pet insurance, professional development, paid time off and lifestyle spending accounts. Employee input is the most trusted source of information about benefits. Employee feedback and complaints are the top reasons, rather than cost, that benefits leaders renew or switch providers. Employee experience with benefits drives benefits leaders’ decision-making. Employees’ ease of use is the most important factor in choosing a benefits provider, but providers often fall short. The report revealed that the biggest reason for adding or improving benefits is to attract and retain employees, with employee demand also figuring heavily into benefits leaders’ decision-making. “Employee benefits are a critical decision for companies and impact their goals and bottom line. They go far beyond health insurance, as the right package of flexible benefits enables employees to afford everyday expenses, plan for the future and counter financial stress.” - Alex Cyriac, co-founder and CEO of Lively Employer Takeaways Although many companies’ budgets have suffered in the past couple of years, employers need to be more strategic about their benefits offerings now than ever. Flexible benefits that are easy to use and meet workers’ needs, such as health savings and lifestyle spending accounts, can help improve employee recruitment, satisfaction and retention. Employers should continue to monitor benefits trends, employee utilization and spending. Contact Simco for more resources.

Around 27% of U.S. workers quit their jobs in 2023, which, according to a common turnover calculation, cost employers nearly a trillion dollars to replace. Unfortunately, turnover is expected to climb this year, and labor experts predict another form of the “Great Resignation” to take place as workers choose to leave their jobs. Employee retention remains a critical challenge this year for employers across industries. A LinkedIn survey found that 85% of workers plan to look for a new role in 2024, which is almost a 20% jump from the previous year. The trend particularly applies to younger generations, including Generation Z, millennials and Generation X. While today’s workers see both the possibilities and risks of job or career changes, many are choosing to explore new opportunities and leave their current employers. This article outlines tips for employers on employee retention. Reasons Why Employees are Quitting In the past few years, many workers have joined the mass exodus from the workplace. In general, workers are leaving employers due to the following: Inadequate salaries Limited career advancement Work-life imbalance Health and family issues General unhappiness with management or the company Employees are taking more ownership of their happiness, finding the job that’s the best fit for them while still fulfilling other personal responsibilities. Retention Best Practices for Employers As the job market evolves and employee expectations shift, companies must adopt innovative strategies to keep their talent engaged and satisfied. Consider these strategies for retaining employees: Foster a positive work culture. A positive workplace culture is foundational to employee retention, regardless of the current labor market. Employees are more likely to stay with a company where they feel valued, respected and part of a cohesive team. Foster an inclusive environment that celebrates each employee and promotes collaboration. Employers can regularly recognize and reward employee achievements to boost morale and create a sense of belonging. Offer competitive compensation and benefits. In 2024, competitive compensation goes beyond salary. Employers must provide comprehensive benefits packages that address the needs of their workforce. This may include health and wellness programs, retirement plans, paid time off (PTO) and flexible working arrangements. Provide career development opportunities. Employees are likelier to stay with a company that invests in their professional growth. Employers can provide opportunities for skill development, training, career advancement, mentoring and career pathing. Embrace flexibility. Flexibility has become a key factor in employee retention. Working remotely or having flexible hours can significantly enhance job satisfaction. Hybrid and remote work models allow employees to effectively balance work and personal life. Promote work-life balance. Promoting work-life balance is essential for preventing burnout and maintaining employee well-being. Encourage employees to take breaks, use their PTO and disconnect after work hours. Cultivate strong leadership. Effective leadership is crucial for employee retention. Leaders should be approachable, empathetic and transparent. Leadership training can help ensure managers are equipped with the skills to support their teams effectively. Authentic and strong leaders can inspire and motivate employees, fostering loyalty and commitment to the organization. Encourage open communication. Open and transparent communication is vital for a healthy workplace. Encourage employees to share their ideas, concerns and feedback without fear of retribution. Transparency builds trust and can prevent misunderstandings and conflicts. Solicit and act on employee feedback. Regularly soliciting employee feedback can help identify potential issues before they escalate. Employers can gather input from exit interviews, surveys, suggestion boxes and oneon-one meetings. More importantly, when organizations act on feedback, it demonstrates to employees that their voices are heard and valued. This transparency can significantly improve job satisfaction and retention. Enhance employee engagement. Engaged employees are more likely to stay with their employers. Enhance engagement by involving employees in decision-making processes, providing meaningful work and creating opportunities for social interaction. Employers can organize team-building activities and company events to strengthen relationships and foster a sense of community. Recognize and reward performance. Regular recognition can significantly boost employee morale and retention. Employers may consider a recognition program that acknowledges both individual and team achievements. Various forms of recognition exist, such as bonuses, awards, public acknowledgment and career advancement opportunities. Regardless of the reward, consistent appreciation can reinforce positive behaviors and commitment. Invest in employee well-being. A healthy workforce is more productive and loyal. Furthermore, employee well-being is a holistic concept that includes physical, mental and emotional health. More than ever before, today’s workers need resources and programs that support overall well-being, such as mental health days, counseling services, fitness programs and stress management workshops. To be impactful, employers should also regularly monitor the effectiveness of their retention strategies and be prepared to adapt as needed. Summary Retaining employees in 2024 requires a multifaceted approach that addresses workers’ diverse needs and expectations. As more workers consider exploring new job opportunities, savvy employers can implement various strategies to not only enhance employee rete ntion but also contribute to a more engaged and productive workforce. Employers should continue to monitor trends and consider strategies to retain and attract talent in response to the changing dynamics of the workforce. Contact Simco today for more workplace guidance.

The Affordable Care Act (ACA) requires health insurance issuers and self-insured plan sponsors to pay Patient-Centered Outcomes Research Institute fees (PCORI fees). The fees are reported and paid annually using IRS Form 720 , the Quarterly Federal Excise Tax Return. Form 720 and full payment of the PCORI fees are due by July 31 of each year, and generally covers plan years that end during the preceding calendar year. For plan years ending in 2023, the PCORI fees are due by July 31, 2024. Overview of the PCORI Fees The PCORI fees were scheduled to expire for plan years ending on or after Oct. 1, 2019. However, a federal spending bill enacted at the end of 2019 extended the PCORI fees for an additional 10 years. As a result, these fees will continue to apply for the 2020-2029 fiscal years. Calculating the PCORI Fee Payment In general, the PCORI fees are assessed, collected and enforced like taxes. The PCORI fee is imposed on an issuer of a “specified health insurance policy” and a plan sponsor of an “applicable self-insured health plan” based on the average number of lives covered under the plan. Final rules outline a number of alternatives for issuers and plan sponsors to determine the average number of covered lives. Using Part II, Number 133 of Form 720, issuers and plan sponsors report the average number of lives covered under the plan separately for specified health insurance policies and applicable self-insured health plans. That number is then multiplied by the applicable rate for that tax year ( $3.00 for plan years ending on or after Oct. 1, 2022, and before Oct. 1, 2023, or $3.22 for plan years ending on or after Oct. 1, 2023, and before Oct. 1, 2024). The fees for specified health insurance policies and applicable self-insured health plans are then combined to equal the total tax owed. Action Steps To assess their obligations, employers should: Determine which plans are subject to the PCORI fees; Assess plan funding status (insured versus self-insured) to determine whether the issuer or the employer is responsible for the fees; and For self-insured plans, select an approach for calculating average covered lives. The IRS provides helpful resources, including a chart on how the fees apply to specific types of health coverage or arrangements.

Keeping up with labor law changes is crucial for employers to ensure compliance and protect employee rights. Recently, both New York State and New York City have introduced significant updates to their labor law postings. These changes reflect new protections and requirements that all employers must adhere to. Here’s a breakdown of the latest updates. New York & New York City Labor Law Posting Changes New York State Change New York has released an updated Fair Employment / Discrimination required notice. The notice now includes citizenship or immigration status as a new protected category, prohibiting employers from discriminating on these grounds. Additionally, the update extends the statute of limitations for discrimination claims under the New York State Human Rights Law from one year to three years. New York City Change New York City has introduced the Workers' Bill of Rights required notice. This notice serves as a gateway to a comprehensive guide to rights in the workplace in New York City. Employers must both post and give each employee a copy of this notice. Additionally, the poster must be made available on any online platform used to communicate with employees. Staying informed about these changes is vital for maintaining compliance and fostering a fair workplace. The updated New York and New York City labor posters are now available, ensuring that your business meets the latest legal requirements. For further details and to access the new posters, contact Simco.

On May 9, 2024, the IRS released Revenue Procedure 2024-25 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2025. The IRS is required to publish these limits by June 1 of each year. These limits include the following: The maximum HSA contribution limit; The minimum deductible amount for HDHPs; and The maximum out-of-pocket expense limit for HDHPs. These limits vary based on whether an individual has self-only or family coverage under an HDHP. Eligible individuals with self-only HDHP coverage will be able to contribute $4,300 to their HSAs for 2025, up from $4,150 for 2024. Eligible individuals with family HDHP coverage will be able to contribute $8,550 to their HSAs for 2025, up from $8,300 for 2024. Individuals age 55 and older may make an additional $1,000 “catch-up” contribution to their HSAs. The minimum deductible amount for HDHPs increases to $1,650 for self- only coverage and $3,300 for family coverage for 2025 (up from $1,600 for self-only coverage and $3,200 for family coverage for 2024). The HDHP maximum out-of-pocket expense limit increases to $8,300 for self-only coverage and $16,600 for family coverage for 2025 (up from $8,050 for self-only coverage and $16,100 for family coverage for 2024). Action Steps Employers sponsoring HDHPs should review their plan’s cost-sharing limits (i.e., the minimum deductible amount and maximum out-of-pocket expense limit) when preparing for the plan year beginning in 2025. Also, employers allowing employees to make pre-tax HSA contributions should update their plan communications with the increased contribution limits. HSA/HDHP Limits The following chart shows the HSA and HDHP limits for 2025 as compared to 2024. It also includes the catch-up contribution limit that applies to HSA-eligible individuals age 55 and older, which is not adjusted for inflation and stays the same from year to year.

On April 29, 2024, the U.S. Equal Employment Opportunity Commission (EEOC) published its final guidance on harassment in the workplace. The guidance explains how the EEOC may enforce equal employment opportunity (EEO) laws against an employer when workplace harassment is alleged or suspected.  Background The EEO laws are a collection of federal laws that prohibit covered employers from discriminating against or harassing individuals based on certain characteristics. These characteristics, also known as protected traits, include race, color, religion, national origin, sex (including sexual orientation, gender identity and pregnancy, childbirth, or related medical conditions), disability, age (40 and older) and genetic information (including family medical history). Between 1987 and 1999, the EEOC issued several documents designed to guide agency staff members who investigate claims of harassment under EEO laws. The agency issued proposed enforcement guidance on these topics on Oct. 2, 2023. This final guidance consolidates and replaces the earlier documents. Final Guidance In its final guidance, the EEOC provides several updated examples to reflect a wide range of modern scenarios and address emerging issues, such as how social media posting and other online content may contribute to a hostile work environment. It also incorporates current case law, including the U.S. Supreme Court’s 2020 decision in Bostock v. Clayton County, that discrimination on the basis of sexual orientation or gender identity constitutes sex discrimination in violation of Title VII of the Civil Rights Act of 1964 (one of the EEO laws). The final guidance focuses on three main considerations to analyze in any workplace harassment claim: Whether the conduct is based on the individual’s legally protected trait; Whether the conduct resulted in a hostile work environment or explicit change to the terms or conditions of employment; and Whether there is any legal basis for holding the employer liable. The guidance explains that an employer may be liable for workplace harassment under several legal standards that often depend on the harasser’s relationship with the employer. The guidance also describes preventive and corrective actions an employer may take to help establish defenses against liability for workplace harassment. Employer Takeaways Although the final guidance is not legally binding, it provides insight into how the EEOC will investigate harassment claims. The EEOC also identifies a number of steps employers can take to prevent harassment, such as: Establishing a clear, easy-to-understand anti-harassment policy; Having a safe and effective procedure that employees can use to report harassment, including having more than one option for reporting; Providing recurring training to all employees (including supervisors and managers) about the company’s anti-harassment policy and complaint process; and Taking steps to ensure the anti-harassment policy is being followed and the complaint process is working. Employers should consider reviewing and familiarizing themselves with the updated guidance. For additional information, employers may review other EEOC resources regarding workplace harassment, including: EEOC Harassment Home Page EEOC Sexual Harassment Home Page Summary of Key Provisions : EEOC Enforcement Guidance on Harassment in the Workplace Questions and Answers for Employees : Harassment at Work

On April 29, 2024, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) published Field Assistance Bulletin (FAB) No. 2024-1 on the use of artificial intelligence (AI) in the workplace. The FAB follows a statement released by the White House announcing key AI-related actions following President Joe Biden’s executive order issued on Oct. 30, 2023, on establishing standards for AI safety and security. Guidance on AI-related Wage and Hour Risks Employers are increasingly using AI tools to generate timecards, set schedules, monitor performance, track employee hours and process payroll. As such, the FAB highlights certain compliance risks under the Fair Labor Standards Act (FLSA) for employers using these tools. These risks include: Tracking employee work time; Monitoring employee break and waiting time; Using location-based monitoring for individuals performing work at multiple geographic locations; Calculating employees’ regular rate of pay and overtime compensation; and Violating the FLSA’s antiretaliation provisions To aid employers in addressing these compliance risks, the WHD identifies recommended practices, including exercising proper human oversight, to help ensure that AI systems and tools do not violate the FLSA. Additional AI-related Guidance In addition to addressing FLSA compliance risks, the FAB also examines certain AI-related risks that may arise under other laws, including the Family and Medical Leave Act (FMLA), the Providing Urgent Protections for Nursing Mothers Act (PUMP Act) and the Employee Polygraph Protection Act (EPPA). For example, using AI tools to administer FMLA leave can create potential risks for violating the law’s certification requirements when determining whether an employee’s leave is FMLA-qualifying. Employer Action Items While FABs are not necessarily legally binding, they offer insight into how the DOL interprets laws it enforces and how agency officers will analyze workplace conditions and circumstances to enforce compliance.  Using AI systems for scheduling, timekeeping and calculating rates of pay and overtime may increase an employer’s risk under the FLSA. Therefore, employers should ensure that their AI systems and tools comply with all federal laws and regulations by examining potential legal and business risks associated with AI, implementing AI usage policies and establishing internal best practices.

As we step into May, we're reminded of the importance of mental health and well-being. May marks Mental Health Awareness Month, offering us an opportunity to renew our commitment to nurturing our minds and fostering supportive environments, both in and out of the workplace. In this blog post, we'll explore practical strategies for enhancing mental health, including small tips that can refresh you mentally during the workday. Embracing Self-Care Amid life's hustle and bustle, it's crucial to carve out time for self-care. Whether it's practicing mindfulness, engaging in hobbies, or simply taking a moment to breathe deeply, prioritizing self-care nurtures mental resilience and fosters a sense of inner peace. Cultivating Work-Life Balance In today's fast-paced world, achieving a healthy work-life balance is essential for mental well-being. Set boundaries between work and personal life, establish a routine that includes breaks and leisure activities, and strive to unplug from technology during downtime. Remember, balance is key to sustaining productivity and happiness. Fostering a Supportive Workplace Culture Employers play a pivotal role in promoting mental health in the workplace. Encourage open dialogue about mental health, offer resources such as counseling services or mental health days, and prioritize flexibility to accommodate employees' well-being needs. By fostering a supportive culture, organizations cultivate environments where employees feel valued, understood, and empowered to prioritize their mental health. Supporting Loved Ones If someone you care about is struggling with mental health challenges, your support can make a significant difference. Listen without judgment, offer empathy and reassurance, and encourage them to seek professional help if needed. Remember, your presence and understanding can provide comfort and strength during difficult times. Practicing Gratitude Gratitude is a powerful tool for enhancing mental well-being. Take time each day to reflect on moments of gratitude, whether it's appreciating the beauty of nature, expressing gratitude for supportive relationships, or acknowledging personal achievements. Cultivating a mindset of gratitude fosters resilience and enhances overall happiness. Small Tips to Refresh Your Mind During the Workday  Take short breaks: Step away from your desk for a few minutes to stretch, walk around, or simply gaze out the window. These brief pauses can rejuvenate your mind and boost productivity. Practice deep breathing: Incorporate deep breathing exercises into your day to reduce stress and promote relaxation. Close your eyes, inhale deeply through your nose, hold for a few seconds, and exhale slowly through your mouth. Connect with nature: Spend time outdoors during your lunch break or coffee breaks. Even a brief stroll in a nearby park or green space can invigorate your senses and clear your mind. Listen to music: Create a playlist of soothing music or uplifting tunes to listen to during work breaks. Music has the power to uplift your mood, reduce anxiety, and enhance focus. Stay hydrated: Drink plenty of water throughout the day to stay hydrated and maintain mental alertness. Dehydration can impair cognitive function, so keep a water bottle handy and sip regularly. Practice mindfulness: Take a few moments to practice mindfulness or meditation exercises. Focus on your breath, observe your thoughts without judgment, and cultivate a sense of presence and calm. Declutter your workspace: A clutter-free workspace can promote mental clarity and productivity. Take a few minutes to tidy up your desk, organize files, and create a calming environment conducive to focus. Engage in positive self-talk: Replace negative self-talk with affirming and encouraging statements. Remind yourself of your strengths, accomplishments, and capabilities, and cultivate a mindset of self-compassion and resilience. Connect with colleagues: Build supportive relationships with coworkers by engaging in meaningful conversations, sharing experiences, and offering mutual support. A sense of camaraderie and connection can foster a positive work environment and bolster mental well-being. As Mental Health Awareness Month unfolds, let's commit to nurturing our minds and supporting those around us. By embracing self-care, fostering work-life balance, promoting workplace well-being, and offering compassionate support to loved ones, we contribute to a culture of mental health awareness and resilience. Remember, you are not alone. Reach out for support if you need it, and let's journey toward better mental health together.

On April 23, 2024, the U.S. Department of Labor (DOL) announced a final rule to amend current requirements employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA). The final rule will take effect on July 1, 2024. Increased Salary Level The FLSA white-collar exemptions apply to individuals in executive, administrative, professional, and some outside sales and computer-related occupations. Some highly compensated employees may also qualify for the FLSA white-collar overtime exemption. To qualify for this exemption, white-collar employees must satisfy the standard salary level test, among other criteria. This salary level is a wage threshold that white-collar employees must receive to qualify for the exemption. Starting July 1, 2024, the DOL’s final rule increases the standard salary level from: $684 to $844 per week ($35,568 to $43,888 per year); and $107,432 to $132,964 per year for highly compensated employees. On Jan. 1, 2025, the standard salary level will then increase from: $844 to $1,128 per week ($43,888 to $58,656 per year); and $132,964 to $151,164 per year for highly compensated employees. Automatic Updates The DOL’s final rule also includes mechanisms allowing the agency to automatically update the white-collar salary level thresholds without having to rely on the rulemaking process. Effective July 1, 2027, and every three years thereafter, the DOL will increase the standard salary level. The agency will apply up-to-date wage data to determine new salary levels. Impact on Employers The first salary level increase in July is expected to impact nearly 1 million workers, while the second increase in January is expected to affect approximately 3 million workers. Employers should become familiar with the final rule and evaluate what changes they may need to adopt to comply with the rule’s requirements. Legal challenges to the rule are anticipated, which may delay the final rule’s implementation.

The recently enacted New York budget for fiscal year 2024-25 includes provisions mandating paid prenatal leave for the state’s workers, beginning Jan. 1, 2025, and repealing the New York COVID-19 sick leave law, effective July 31, 2025. Paid Prenatal Personal Leave The budget amends the state sick leave law by adding what is being touted as a first-in-the-nation requirement that all employers provide their employees with 20 hours of paid prenatal personal leave per 52-week period, starting Jan. 1, 2025. The amendment does not require employees to accrue the new leave, nor does it impose a waiting period before employees may use the leave; the full 20 hours must be made available on Jan. 1, 2025. Employees on leave must be paid their regular rate of pay or minimum wage if the applicable minimum wage is higher; however, employers are not required to pay out unused prenatal personal leave when an employee separates from employment. Permitted Uses of Prenatal Personal Leave Prenatal personal leave may be taken for health care services received by an employee during their pregnancy or related to the pregnancy, including physical examinations, medical procedures, monitoring and testing, and discussions with a health care provider related to the pregnancy. The new provisions do not require advance notification or documentation after the fact for using leave. Interaction With Paid Sick Leave and FMLA Leave The new requirement is in addition to the annual sick leave the law already mandates, which ranges from 40-56 hours and may be paid or unpaid, depending on the employer’s size and income. The amendment does not indicate that the leave runs concurrently with any federal Family and Medical Leave Act (FMLA) leave taken for prenatal care, meaning the state prenatal personal leave would be in addition to any FMLA leave taken for this purpose. Sunset Date for COVID-19 Leave The budget also establishes July 31, 2025, as the expiration date for New York’s COVID-19 employee sick leave law . The law took effect at the beginning of the COVID-19 pandemic, on March 18, 2020, and requires leave of up to 14 days, depending on the size and income of the employer. As with the regular sick leave law, whether leave must be paid also depends on the size and income of the employer. The sunsetting of the law comes in the wake of expired states of emergency and changed recommendations for isolation and quarantine. Steps for Employers New York employers should prepare for the start of paid prenatal personal leave in January 2025 and watch for any agency regulations and guidance implementing the new leave entitlement. Employers should also train managers and supervisors about the new requirements and make sure employee policies and handbooks are up to date. Employers should continue to allow COVID-19 sick leave when it applies and keep in mind that other leave requirements, such as paid sick leave, may allow employees to take time off from work for illness, including COVID-19.

On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a final rule that would ban noncompete agreements in virtually all employment relationships. The final rule has not yet been filed in the Federal Register, but is scheduled to take effect 120 days after such filing. Final Rule The final rule defines a noncompete clause as a term or condition of employment that prohibits a worker from, penalizes a worker for or functions to prevent a worker from: (i) Seeking or accepting work in the United States with a different person where such work would begin after the conclusion of the employment that includes the term or condition; or (ii) Operating a business in the United States after the conclusion of the employment that includes the term or condition. Such terms or conditions include employee contracts or workplace policies, whether written or oral. Subject to very limited exceptions, the final rule provides that: The use of noncompete clauses will be banned as of the effective date; Any existing noncompete clauses (other than those entered into with senior executives) will be invalidated; Employers must notify all employees (other than senior executives whose existing noncompete agreements will remain enforceable) that their existing noncompete agreements will not be enforced. Currently, the enforceability of noncompete clauses is determined by state and local legislatures and courts. The FTC rule would instead govern the enforceability of noncompete clauses at the federal level and supersede any less restrictive state laws or judicial interpretations. Legal Challenges On April 24, 2024, the U.S. Chamber of Commerce sued the FTC, seeking to block the final rule. The complaint was filed in the U.S. District Court for the Eastern District of Texas and argues that the FTC lacks the authority to issue rules that define unfair methods of competition. Additional legal challenges are likely, so employers should monitor for updates and anticipate potential uncertainty in the coming months. Next Steps for Employers Employers may consider reviewing existing employee agreements or form agreements (such as new hire paperwork) to determine whether any contain noncompete clauses that would be invalidated under the rule. Employers may also begin preparing revisions to such agreements and consider whether to use alternatives to noncompete clauses (e.g., nondisclosure clauses) to protect competitive business information.

You likely have heard about the upcoming 2024 total solar eclipse. In the United States, Mexico and Canada, the solar eclipse will take place today: Monday, April 8, 2024. You may have questions about when it will occur, where you can see it and how to view it safely. If you are planning to view the solar eclipse, safety should be the number one priority. This article provides information about the 2024 solar eclipse, including how to stay safe and how you can learn more. The details provided are compiled from the National Aeronautics and Space Administration (NASA). What Is a Total Solar Eclipse? A total solar eclipse happens when the moon passes between the sun and Earth, completely blocking the face of the sun. People viewing the eclipse from locations where the moon’s shadow completely covers the sun, known as the path of totality, will experience a total solar eclipse. The sky darkens, similar to a normal dawn or dusk. The 2024 total solar eclipse will only last for two to four minutes, depending on the viewer’s location. However, the full experience will last over an hour from the initial partial eclipse to the conclusion of the event. If weather allows, viewers along the path of totality will see the sun’s corona, or outer atmosphere, which is usually obscured by the face of the sun. Where Can I See the Total Solar Eclipse? In the United States, the path of the solar eclipse will extend from Texas to Maine, crossing through Oklahoma, Arkansas, Missouri, Illinois, Kentucky, Indiana, Ohio, Pennsylvania, New York, Vermont and New Hampshire. Depending on your location , the total eclipse will take place between 12:23 p.m. and 3:02 p.m. CDT and between 1:59 p.m. and 4:40 p.m. EDT. An estimated 31.6 million people live in the path of totality this year, and an additional 150 million people live within 200 miles of the path of totality. Millions more are expected to travel to prime viewing locations over the weekend. Even if you don’t live directly on the path of totality, you may be able to see a partial eclipse. NASA estimates that 99% of people in the country will be able to see a partial or total eclipse from where they live. The solar eclipse will also be viewable online. NASA will be showing a live stream on Monday, April 8, from 1-4 p.m. EDT. The live stream will be available for viewing here . Is This Different Than the Solar Eclipse That Happened in 2017? The total solar eclipse that took place on Aug. 21, 2017, and this year’s total solar eclipse are similar events. However, the path of the 2017 eclipse was narrower than what will take place during the 2024 total solar eclipse. On April 8, 2024, the total solar eclipse will be visible to more people in the United States and last longer. How Often Does a Total Solar Eclipse Happen? Total solar eclipses happen, on average, once every 18 months across the globe. In North America, a total solar eclipse occurs only six times between 2001 and 2050. After the 2024 solar eclipse, there will be one that is viewable from some parts of Alaska in 2033. A total solar eclipse will be viewable by some northwestern states in 2044, followed by one that broadly reaches the U.S. in 2045. How Can I Stay Safe? During the total solar eclipse, looking directly at the sun without specialized eye protection for solar viewing is not safe. According to NASA, the exception is during the brief total phase of a total solar eclipse, when the moon completely blocks the sun. Here are safety tips to consider: Avoid looking at the sun directly. Viewing any part of the sun through a camera lens, binoculars or a telescope without a special-purpose solar filter secured over the front of the optics will instantly cause severe eye injury. Use safety protection. When watching the partial phases of the solar eclipse—which happens before and after totality—directly with your eyes, you must always look through safe solar viewing glasses (“eclipse glasses”) or a safe handheld solar viewer. You can also use an indirect viewing method, such as a pinhole projector. Learn more about safe solar viewers and filters here .  Don’t use viewing devices that are not approved for use during the solar eclipse. Use only approved devices. NASA specifically advises against wearing standard sunglasses during the solar eclipse. Wear sunscreen. If you are outside for hours, you may be subject to ultraviolet rays from the sun. It’s important to properly apply SPF for your skin safety. Prepare for large crowds. If you are viewing the eclipse in or near any city on the path of totality, you should expect more traffic and crowds than normal. Plan ahead for longer transportation times and bring water and anything else you’ll need to stay comfortable. There are ways to experience this event while staying safe. NASA provides more information about safety during the total solar eclipse. Learn More If you plan on viewing this event, create a plan to prepare for and stay safe during the total solar eclipse. This is a once-in-a-lifetime experience for many viewers, but it can create safety risks for participants who don’t take precautions. Check out resources from NASA’s website to learn more.

A new report released by family health benefits platform Ovia Health by Labcorp (Ovia) uncovered U.S. workers’ preferences for family-friendly workplace benefits. American employees are looking for company benefits and policies that support their families, and nearly three-quarters (73%) would leave their current jobs to find them. Respondents also expressed widespread dissatisfaction with available family-friendly benefits. Many (62%) employees don’t consider their employer family-friendly, and almost half (43%) graded their benefits a “C” or lower. Overwhelmingly, working parents seek longer and more pay during parental leave, stronger flexibility policies and child care support. Furthermore, parental leave is generally associated with the birth of a baby, but respondents expressed a need to expand that thinking regarding benefits. In fact, 10%-20% of pregnancies end in miscarriage, validating the employee demand for better maternity management support (to identify risk and intervene) and pregnancy loss support. Along with fertility benefits, there is a growing demand for family-building offerings, including adoption, foster and surrogacy support. One-third (38%) of respondents said family-building benefits are important, but only 5%-14% of employees can access them. Today’s workers want and need unbiased support and alternative family planning support, including adoption and surrogacy. “Pregnancy among people in their 30s and 40s is on the rise, and thankfully, same-sex couples are able to speak more openly about their intentions to build their families. There's more of a need for alternative family-planning support.” - Dr. Jenny Carrillo, president of Ovia Employer Takeaway The Ovia report stated that if an organization values retention, productivity and engagement, it should prioritize fostering a family-friendly culture in 2024 and beyond. To round out a great family benefits package and contribute to holistic wellness, employers can also incorporate nutrition, health screenings and menopause support. An organization can promote a family-friendly culture by making its commitment to its workforce’s health obvious. More workers today are looking for a company culture that inclusively supports their families, assists with various paths to parenthood and helps them navigate life’s journeys. Employers should continue to monitor workers’ desires and adjust their health benefits strategy as needed. Contact Simco today for more information.

Highlights The final rule’s changes are intended to help consumers differentiate between comprehensive health coverage and certain types of coverage that are not subject to the ACA’s consumer protections. These changes: Amend the federal definition of STLDI to reduce the initial contract period to no more than three months; Prohibit a practice known as “stacking” that allows issuers to evade the duration limits for STLDI; and Expand a consumer notice requirement to apply to fixed indemnity excepted benefits coverage sold in the group market. On March 28, 2024, the U.S. Departments of Labor, Health and Human Services, and the Treasury (Departments) released a final rule on certain types of health coverage that are not subject to the Affordable Care Act’s (ACA) consumer protections, namely short-term, limited-duration insurance (STLDI) and fixed indemnity coverage. This rule finalizes some of the changes included in a proposed rule from July 2023. The Departments are making changes to STLDI and fixed indemnity coverage to help consumers distinguish them from comprehensive health coverage and increase consumer awareness of coverage options that include the ACA’s consumer protections. These protections include, for example, the prohibition of discrimination based on health status, the prohibition of preexisting condition exclusions, and the prohibition of lifetime and annual dollar limits on essential health benefits. STLDI STLDI is a type of health insurance coverage designed to fill temporary gaps in coverage when an individual transitions from one plan or coverage to another. STLDI is specifically exempt from the definition of “individual health insurance coverage” and, therefore, is not subject to the ACA’s requirements for comprehensive coverage. Currently, STLDI is defined as coverage with an initial contract period of less than 12 months and a maximum total duration of up to 36 months, which includes renewals and extensions. Effective for coverage periods beginning on or after Sept. 1, 2024 , the final rule limits the length of the initial contract period to no more than three months and the maximum coverage period to no more than four months , taking into account any renewals or extensions. In addition, the final rule: Prohibits a practice known as “stacking,” where the same insurer issues multiple STLDI policies to the same policyholder within a 12-month period; and Amends the consumer notice requirement to further clarify the differences between STLDI and comprehensive coverage and identify options for consumers to obtain comprehensive coverage. The notice must be prominently displayed on the first page of the policy, certificate or contract of insurance—including for renewals and extensions—and included in any marketing, application and enrollment (or reenrollment) materials. The final rule also includes a reminder that coverage sold to individuals through a group trust or association, other than in connection with a group health plan, is not group coverage for purposes of federal law and must meet the federal definition of STLDI or it is subject to the federal consumer protections and requirements for comprehensive individual health insurance coverage. Fixed Indemnity Excepted Benefits Coverage Certain categories of coverage—called “excepted benefits”—are not subject to certain federal consumer protections, including the ACA’s requirement for comprehensive coverage. Fixed indemnity coverage is exempt from these protections because it is designed to provide a source of income replacement rather than full medical coverage. Effective for plan years beginning on or after Jan. 1, 2025 , the final rule requires a consumer notice to be provided when offering fixed indemnity excepted benefits coverage in the group market to ensure that consumers can distinguish between this coverage and comprehensive medical coverage. Health plans and issuers must prominently display the notice in marketing, application and enrollment (and reenrollment) materials. In the July 2023 proposed rule, the Departments proposed new standards regarding the payment standards and noncoordination requirement for fixed indemnity excepted benefits. The Departments are not finalizing these proposed standards at this time , but they intend to address the issues in future rulemaking after additional study and consideration. Tax Treatment of Fixed Indemnity Health Coverage In the July 2023 proposed rule, the Departments proposed to clarify that payments from employer-provided fixed indemnity health insurance plans are not excluded from a taxpayer’s gross income if the amounts are paid without regard to the actual amount of any incurred medical expenses and where the premiums or contributions for the coverage are paid on a pre-tax basis. This rule also proposed to clarify that the taxpayer must meet substantiation requirements for reimbursements for qualified medical expenses from any employer-provided accident and health plan to be excluded from the taxpayer’s gross income. To provide more time to study the issues and concerns raised by commenters, the Departments are not finalizing these proposed changes at this time.

Highlights The CDC has dropped the five-day isolation recommendation for COVID-19-positive individuals. People are now advised to stay home until they have been fever-free for 24 hours and symptoms are improving. Not all COVID-19-specific employee leave laws have expired. Federal and state family and medical leave laws, and state and local sick leave laws, will often apply to employees with COVID-19. Important Date March 1, 2024: The CDC revised its isolation recommendations for people with COVID-19. The Centers for Disease Control and Prevention’s (CDC) new guidance that individuals no longer need to isolate from work for five days following a positive COVID-19 test may raise questions with employers about what leave they are required to provide to employees with the virus. The revised guidance, issued March 1, 2024, advises that people who are sick with COVID-19 or another respiratory virus stay home and away from others. However, isolation is not necessary if an individual with COVID-19 has been fever-free for at least 24 hours without medication and their symptoms are improving. The guidance states that the period people should stay home and away from others could be shorter, the same or longer than the previous guidance for COVID-19 isolation. The new guidance is not applicable to health care settings, which have their own CDC recommendations . From an employee leave perspective, employers should note that while most COVID-19-specific employee leave laws have expired, some—like New York state’s—are still in effect. Moreover, state and local paid sick leave laws that are not specific to COVID-19 apply to illness generally, including for a worker experiencing COVID-19 symptoms like fever. Some of these laws have specific provisions concerning communicable disease. In addition, sick workers may be eligible for leave for their own illness or to care for an ill family member under the federal Family and Medical Leave Act or similar state family and medical leave laws. Action Steps Employers should familiarize themselves with any remaining state or local COVID-19 leave laws that apply to them. They should also ensure compliance with non-COVID-19 federal, state and local leave law mandates, as they may apply to workers with COVID-19.

Employers of all sizes continue to face attraction and retention challenges. Successful efforts to win over workers can require significant time and carry high costs, but failing to attract talent or losing existing employees is particularly costly for small businesses. Unfortunately, small businesses often don’t have the excess resources to invest in attraction and retention efforts in today’s labor market, making it difficult to compete with larger organizations. Along with the costs associated with recruiting, hiring and training, attraction and retention struggles can significantly impact workplace operations and culture, especially in a smaller environment. For these reasons, small businesses cannot afford to ignore their attraction and retention efforts. This article outlines talent challenges faced by small businesses and practical strategies to overcome them. Attraction and Retention Tips Economic pressures continue to make it challenging for small businesses to hold on to their best talent and appeal to other top-tier workers. Regardless of size, employers are straining to keep up with workers’ compensation expectations and demands. Furthermore, rising health care costs are stressing employees and employers alike. Workers are looking for robust health care coverage and affordable and quality care options from their employers, while employers consider ways to move away from cost-shifting to employees. Aside from expense concerns, employers are also experiencing a growing skill gap as many workers join organizations without all the desired skills. However, there are ways that small businesses can overcome these hurdles in the race for talent. Consider the following attraction and retention strategies: Select the right benefits. Health insurance is valued highly by workers. Simply offering health insurance can give small businesses a competitive edge against those that don’t. However, health insurance is just one component to consider as part of a benefits package; small businesses should tailor their benefits offerings to meet the specific demands of current and prospective employees. The best benefits vary for each organization, but they can be used to attract and retain employees. In general, some popular benefits include competitive health insurance, leave benefits, performance benefits, retirement planning and professional development opportunities. Embrace technology and generative artificial intelligence (AI) tools. Small businesses often have limited resources for recruiting, hiring and onboarding practices, so it’s important to be as efficient as possible. Leveraging cost-effective technology, such as applicant tracking systems and digital tools, can help small businesses improve these practices. Generative AI can also help workers spend less time on tedious tasks, such as manual data entry. In turn, employers’ costs may be reduced, and they can focus on finding new employees rather than dealing with time-consuming and tiresome recruiting tasks. Expand recruitment reach. If an employer isn’t receiving the number of quality candidates they desire, it’s worth strategizing to grow their talent pool. Expanding an organization’s online presence is a good start. This may include creating and maintaining multiple online profiles, posting content regularly and informing prospective workers of job opportunities. Focus on developing employees. Attraction and retention challenges aren’t always about bringing enough employees through the doors; today, many small businesses face skills gaps. Recruiting specific skills may close these gaps, but this solution overlooks existing employees. As such, small businesses should consider how they can bridge skills gaps in-house. Some strategies may include providing career pathing plans, creating mentorship programs, offering microlearning workshops to focus on specific skills, or paying for employees to attain certifications or further their education outside the workplace. Offer a flexible work environment. Many of today’s employees worked remotely during the COVID-19 pandemic and would prefer to work from home. Flexible work arrangements, such as work-from-home arrangements and hybrid or flexible schedules (including flex time or days), can help small businesses maintain a competitive edge over employers who don’t offer such flexibility. Create a strong workplace culture. Small businesses should aim to foster a desirable workplace. A healthy company culture can help retain employees and, in turn, create an environment that’s attractive to applicants. Many small businesses are currently focusing on creating a strong workplace culture by training managers to identify employee burnout, designate fair workloads and support workers’ needs. Summary Like many organizations, small businesses face several challenges with attracting and retaining the employees they need. Fortunately, small businesses can leverage these strategies to help them compete in today’s talent market. Contact Simco today for more small business guidance.

Despite employers’ best efforts to offer competitive health care benefits to workers, many employees struggle with medical debt. According to a new survey commissioned by Goodroot, a community of health care companies, more than 4 in 10 employees report having experienced medical debt. “When employees are struggling with a massive, unpayable medical bill, it not only puts tremendous stress on their family but also harms their ability to be productive and contribute to company culture.” - Goodroot CEO Mike Waterbury Medical Debt in the United States In 2023, employers spent an average of $17,393 for family coverage per employee, a 48% increase since 2013. Although employers increasingly invest in their sponsored health care benefits, employees still face medical debt. Consider these key findings from the Goodroot survey: Medical debt remains the leading cause of bankruptcy in the country. Half (52%) of Americans in medical debt owe more than $2,500. Medical debt impacts employees’ ability to cover daily living expenses. At some point, nearly 4 in 10 people have been unable to afford rent, groceries or utilities due to medical bills. People are delaying health care in anticipation of high costs. The majority of Americans (86%) who have experienced medical debt delayed care due to the expected cost. Younger workers are more likely than older ones to experience medical debt, and their debts are larger. Of employees aged 42 or under with medical debt, 59% owe more than $2,500, compared to 45% of workers aged 43 or older. Goodroot stressed that employees often are unaware that financial help is available. Hospitals are federally mandated to offer “community benefits, including free or discounted urgent and medically necessary care to patients unable to pay.” However, each health system has its own financial assistance policy, eligibility criteria and application form, which can be confusing for patients. Employer Takeaway Medical debt is taking a toll on many Americans. Employers can help their workers by integrating hospital financial assistance into health benefits. In addition to health care benefits, some employers are also exploring providing a health-cost navigator who will work directly with employees to help them understand and use their benefits effectively by comparing pricing, reviewing bills and negotiating costs. Employers should continue to monitor health care and benefits trends. Contact us for more resources.

Keeping up with compliance developments can be difficult and time-consuming. This quarterly update highlights recent legal developments to help your organization stay on top of new requirements and minimize its compliance risks. Recent Federal Developments  DOL Issues Independent Contractor Final Rule On Jan. 10, 2024, the U.S. Department of Labor (DOL) issued a final rule, effective March 11, 2024, revising its guidance on how to analyze who is an employee or independent contractor under the Fair Labor Standards Act (FLSA). The DOL’s new rule reinstates the multifactor and totality-of-the-circumstances analysis, which is generally viewed as more employee-friendly. As a result, the new rule will likely lead to more workers being classified as employees. DOL Updates Model Employer CHIP Notice The DOL has released a new model employer Children’s Health Insurance Program (CHIP) notice with information current as of Jan. 31, 2024. An employer is subject to this annual notice requirement if its group health plan covers participants who reside in a state that provides a premium assistance subsidy under a Medicaid plan or a CHIP, regardless of the employer’s location. The DOL’s model notice, which employers may use for this disclosure, is updated periodically to reflect changes in the states that offer premium assistance subsidies. Employers Must Use New Form I-9 As of Nov. 1, 2023, employers are required to use the newest version of the Employment Eligibility Verification form (Form I-9). The new Form I-9 includes updated instructions and many notable changes, including alternative remote verification procedures that employers enrolled in E-Verify can use to comply with their Form I-9 obligations. Employers should ensure they are using the new Form I-9, as continuing to use the outdated Form I-9 can trigger penalties. NLRB Issues New Joint Employer Final Rule On Oct. 27, 2023, the National Labor Relations Board released a final rule establishing new, broader criteria for determining joint-employer status. Joint employment situations can happen when two or more employers share personnel hiring, supervision and management practices. When a joint employment status exists, joint employers are equally responsible for compliance with applicable laws and regulations. The final rule had been set to take effect on Feb. 26, 2024. However, on Feb. 22, 2024, a federal judge in the U.S. District Court for the Eastern District of Texas delayed the implementation of the final rule to Mar. 11, 2024. DOL Increases Civil Penalty Amounts for 2024 On Jan. 11, 2024, the DOL released its 2024 inflation-adjusted civil monetary penalties that may be assessed on employers for violations of a wide range of federal laws, including the FLSA, ERISA, the Family and Medical Leave Act, and the Occupational Health and Safety Act. For example, the maximum penalty for failing to file a Form 5500 for an employee benefit plan increased from $2,586 to $2,670 per day. Employers should periodically review their pay practices, benefit plan administration and safety protocols to ensure compliance with federal requirements. EEOC Increases Enforcement Activity The U.S. Equal Employment Opportunity Commission (EEOC) is a federal agency responsible for enforcing federal employment discrimination laws, such as Title VII of the Civil Rights Act, the Americans with Disabilities Act and the Pregnant Workers Fairness Act. The EEOC experienced several noteworthy changes in 2023, including new leadership, structural changes and an increased budget. It also multiplied its enforcement efforts; at the end of fiscal year 2023, the agency reported a 52% increase in lawsuit filings from the previous year. These efforts are likely to continue in 2024. Recent State Developments New York Increases Salary Threshold for Exempt Employees On Sept. 15, 2023, New York State amended its Labor Code to increase the salary threshold executive, administrative and professional (EAP) employees must meet in order to qualify for the state’s exemptions from pay frequency laws. Beginning March 13, 2024, EAP employees who earn less than $1,300 per week (up from $900 per week) will be subject to the same wage payment protections as other nonexempt employees. For more information on these topics, please contact Simco.

Employee handbooks are important tools for establishing employee expectations, addressing workplace issues and defending against potential lawsuits. Failing to update the employment policies in these handbooks regularly can make employers vulnerable to legal risks and liabilities, resulting in costly fines, penalties and attorneys’ fees. Employment laws are often complicated, and employers must be aware of new regulatory developments that may impact their organizations and workforce. The start of the year provides employers with an excellent opportunity to review and update their policies. To assist with this effort, this article explores five employment policies employers should consider reviewing in 2024. 1. CROWN Act In 2023, many states and localities enacted laws prohibiting discrimination based on an individual’s hair texture and style associated with a protected class, such as race. As of September 2023, 23 states had passed the Creating a Respectful and Open World for Natural Hair (CROWN) Act. Additionally, the U.S. Virgin Islands and more than 40 localities have passed CROWN laws. Many states that have not passed a CROWN Act have filed or pre-filed similar legislation. CROWN laws generally forbid discrimination based on hair textures or protective hairstyles commonly associated with a protected characteristic, such as race, national origin and ethnicity. Looking ahead, the U.S. Equal Employment Opportunity Commission (EEOC) has signaled that it will pursue discrimination claims related to hair texture and style. As many states and localities adopt hair discrimination laws, employers must ensure their workplace dress code policies are current and comply with state and local laws. It is critical to review existing policies to ensure they accommodate different hairstyles by not banning or restricting certain hair textures and styles that are associated with race, national origin and ethnicity. 2. Pregnant Workers Fairness Act The Pregnant Workers Fairness Act (PWFA), signed into law on Dec. 29, 2022, became effective on June 27, 2023. Under this law, employers with at least 15 employees must provide reasonable accommodations to workers with known limitations related to pregnancy, childbirth or related medical conditions unless the accommodation will cause the employer an “undue hardship.” The EEOC has started accepting charges under the PWFA for situations occurring on June 27, 2023, or later. The number of lawsuits claiming employers failed to accommodate pregnant workers will likely increase in 2024. As such, employers should review and familiarize themselves with this law. Savvy employers will look at the EEOC’s final PWFA regulations and consider including a policy in their 2024 employee handbook that explicitly addresses PWFA accommodations. Moreover, forward-thinking employers will increasingly engage in the interactive process with covered employees and applicants who require accommodations under PWFA. 3. Noncompete Agreements In January 2023, the Federal Trade Commission (FTC) proposed a rule banning most noncompete agreements. The FTC is expected to vote on this rule in April 2024. Additionally, about six months after the FTC announced its proposed rule, the National Labor Relations Board stated that most noncompete and nonsolicitation agreements violate the National Labor Relations Act. Many states have also passed noncompete bans or taken action to ensure noncompetes are unenforceable. Due to the shifting legislation surrounding these policies, employers need to ensure their noncompete agreements are tailored to the state and locality where their employees work. Moreover, employers can consider limiting or eliminating noncompete agreements and policies to avoid potential litigation and unnecessary enforcement hurdles. 4. Form I-9 In 2023, the U.S. Department of Homeland Security’s (DHS) Citizenship and Immigration Services published an updated Employment Eligibility Verification form (Form I-9) and instructions. The DHS also issued a final rule that will amend agency regulations to allow for the authorization of alternative document examination procedures, such as remote documentation verification and examination. Employers had to start using the new form as of Nov. 1, 2023, to avoid penalties. Complying with Form I-9 requirements is often challenging and places a significant administrative burden on employers. Failing to complete and retain Forms I-9 for all employees can be extremely costly. Form I-9 violations often can lead to additional fines and penalties from other government agencies. While the required timelines for completing Forms I-9 for employees haven’t changed, the updated form will likely force employers to make some changes to their Form I-9 operations and processes. Therefore, employers should familiarize themselves with the updated form and establish a plan for implementing the required changes. Savvy employers will also train employer representatives and communicate with employees about plan updates. Due to the complexities of complying with Form I-9 requirements, employers are encouraged to seek legal counsel to discuss specific issues and concerns. 5. FLSA Overtime and Minimum Wage Exemptions On Aug. 30, 2023, the U.S. Department of Labor (DOL) announced a proposed rule to amend current requirements that executive, administrative and professional employees must satisfy to be exempt from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime requirements. With this rule, the DOL proposes increasing the minimum salary level from $684 to $1,059 per week (from $35,568 to $55,068 per year) and from $107,432 to $143,988 per year for highly compensated employees. The rule would also enable the DOL to update salary levels automatically every three years without relying on the rulemaking process. The final overtime rule is expected to be released in April 2024. While the proposal doesn’t impose any new requirements on employers until the rule is published, proactive employers will review the FLSA’s proposed rule and evaluate the changes needed to remain compliant with the new law. This may include reviewing employee compensation, auditing exempt employees’ job duties and revising workplace policies to ensure compliance. Summary Outdated policies can often expose organizations to unnecessary legal risks. Regularly reviewing and updating employment policies is an effective and cost-effective way for employers to protect themselves. By understanding the most important rules and regulations to study in 2024, employers can take steps to ensure their employment policies are current and reflect the most recent regulatory developments.  For more workplace resources, contact Simco today.

New York law requires written contracts and timely payment for freelance workers.  On Nov. 22, 2023, the state of New York enacted the Freelance Isn’t Free Act (the Act) to strengthen protections for freelance workers by requiring written contracts, timely payment and non-retaliation. The Act takes effect on May 20, 2024 , and generally mirrors the New York City Freelance Isn’t Free Act (the NYC Act) that took effect in 2017. Freelance Workers Defined A “freelance worker” includes any natural person or single-person organization that is hired or retained as an independent contractor by a nongovernmental hiring party to provide services in exchange for compensation of at least $800 or $800 in the aggregate during the preceding 120 days. The definition of “freelance worker” does not include sales representatives, attorneys, licensed medical professionals, construction contractors or any workers hired as employees. Written Contract Requirements The Act requires the hiring party and freelance worker to enter into a written contract for services, a copy of which must be provided to the freelance worker. The hiring party must also retain a copy of the contract for six years. At a minimum, the contract must include the name and mailing address of each party, an itemization of services to be provided, the value of such services, the rate and method of compensation, the date of payment (or mechanism by which such date will be determined), and the date by which the freelance worker must submit a list of services rendered to ensure timely payment. The New York Department of Labor (NYDOL) will provide model contracts on its website for use by the general public at no cost. Timely Payment The hiring party must pay freelance workers no later than the date specified in the contract or, if a date is not specified, no later than 30 days after the completion of services. Once a freelance worker begins to render services, the hiring party may not require that the freelance worker accept less than the agreed-upon compensation as a condition of timely payment. Non-Retaliation The hiring party may not threaten, intimidate, discipline, harass, deny a work opportunity, discriminate against or take any other action to retaliate against freelance workers for or deter them from exercising their rights under the Act. Penalties and Other Remedies Freelance workers may file a complaint with the NYDOL alleging violations of the Act, and the NYDOL may award civil or criminal penalties. Freelance workers may also file a civil action for damages, including double damages, injunctive relief and attorneys’ fees (for nonpayment or underpayment), statutory damages equal to the contract price (for retaliation), or statutory damages equal to $250 (for failure to enter into a written contract). If there is reasonable cause to believe that a hiring party has a pattern or practice of violations, the New York attorney general may bring a civil action on behalf of the state and seek fines of up to $25,000 and other appropriate relief. Hiring Party Considerations The Act does not apply to contracts entered into before May 20, 2024. However, hiring parties should review their existing contracts and payment practices now and make any necessary changes to ensure compliance by this date. Moreover, the Act does not provide a determination about the legal classification of any freelance worker as an employee or independent contractor, so hiring parties should ensure that such workers are properly classified.