Labor Regulation Changes are Quickly Approaching: Provide the solutions your clients need

By Corey Clacher

As we continue to move further into 2016, the promise of new and complex labor regulation changes mentioned last year – such as the Fair Labor Standards Act (FLSA) are nearing reality. Recently, the Department of Labor (DOL) confirmed that changes to the FLSA, which will  increase the salary threshold for many exempt employees immensely, should be finalized by July, 2016. That means that these new regulations could take effect as early as September of this year, disrupting nearly every business in their wake.

With cases of FLSA violations expected to continue rising, it is more important than ever that your clients remain compliant at all times. Employers must protect themselves from potentially crippling penalties due to wage and hour regulation noncompliance. In 2014, companies paid $5.3 million on average to resolve an FLSA violation case1, which can be especially crippling for small and midsized businesses with limited resources.

How can you be certain that your service organization is handling your clients’ wage and hour conditions correctly? According to the Kronos white paper, Complex Labor Regulations Raise the Stakes for Organizations2, here are some of the questions you should review for each client:

  • Are their independent contractors classified correctly? Should they be classified as employees?
  • Did they provide accurate, up-to-date employee data?
  • Are their exempt and nonexempt employees classified correctly? Could nonexempt employees be eligible for overtime?
  • How are unapproved overtime practices handled? Are they paying earned overtime correctly?
  • Are they tracking meal and rest breaks in accordance with regulations?
  • When is work their employees perform off the clock compensable?

If you find yourself answering “no” or are uncertain when answering any of these questions, you may want to look into implementing new automation solutions for timekeeping and scheduling processes in order to minimize your clients’ error-prone manual processes and avoid compliance risk. The Kronos white paper also mentions to look for a solution that delivers centralized wage and hour policy administration, establishes local policy enforcement, and creates detailed audit records.

With the Kronos SaaShr platform, you can rest assured that you’re offering your clients the latest technology, minimizing compliance risk through both centralization and consistency. Because the Kronos SaaShr platform is cloud-based, it’s easy for businesses to adjust to new labor regulation changes in real time without the need to manually update on their end. With the ability to automate pay rules, organizations have the confidence of knowing that employees are being paid correctly and that documented policies are being followed.

The platform also allows businesses to reduce time and attendance policy violations through automation via pay rules. Pay rules automatically determine whether employee breaks should be paid or unpaid. It also applies pay rules directly to the employee’s timecard, so they receive proper credit for overtime hours worked. And because the system records employee punch information in real-time, it allows employers to closely monitor their employee time patterns and verify if the time captured is accurate, avoiding unrestricted timekeeping practices.

 

With a timeline more firmly set in place by the DOL to enact these labor regulation changes, are you certain that you have the workforce management solution that will keep your clients free from compliance risk? To learn more about the significant impact of upcoming labor regulation changes and how Kronos SaaShr can help your clients avoid compliance risk, download the white paper, “Complex Labor Regulations Raise the Stakes for Organizations” and watch a recorded demo of our human capital management solution in action.

About Corey:

Corey is a Marketing Specialist at Kronos SaaShr, responsible for creating marketing and educational content around Human Capital Management technology along with other responsibilities within the department.

Sources:

1NERA Economic Consulting, Trends in Wage and Hour Settlements: 2015 Update, found at http://www.nera.com/content/dam/nera/publications/2015/PUB_Wage_and_Hour_Settlements_0715.pdf

2Kronos Incorporated, Complex Labor Regulations Raise the Stakes for Organizations 2015 Edition

Winning at Workforce Management: Roundtable tackles 2016’s hottest issues

By RSL Media

Laws are changing and demographics are evolving—and those issues present big challenges for human resources and benefits professionals, particularly the stretched-thin HR teams in smaller businesses.

To address today’s hot workforce management issues, Complete Payroll Solutions and Kronos convened several dozen Massachusetts-area professionals to share strategies on three big questions:

  • How can small and mid-size businesses mitigate the proposed changes to the Fair Labor Standards Act (FLSA)?
  • How can they find and keep the best talent?
  • How can companies be sure they’re compliant with ever-changing Affordable Care Act (ACA) requirements?

The roundtable event attracted workforce management professionals from a wide range of industries, including retailers, social service providers, technology companies, hoteliers and more.

“Though we work with a diverse range of companies, we often see that all small and mid-size businesses face similar challenges,” said Michael Pettengill, vice president of channel management for Complete Payroll. “We chose these three issues for discussion based on feedback from our clients about issues they wrestle with most.”

Tracking Time: More Important Than Ever

For 2016, the Department of Labor (DOL) has proposed a significant change in the FLSA.

Under the act, employers must pay overtime to employees who work in excess of 40 hours in a given week. However, a widely used exemption excludes “white collar” (executive, administrative, and professional) employees who make above a certain weekly salary from this requirement.

The DOL proposes a new way of calculating eligibility for the exemption. If approved, it will most likely become effective in mid-2016, or in 2017. Under the proposal, an employee who makes less than $50,440 yearly would be eligible for overtime, compared to 2015’s threshold of $23,660.

As a result, some companies will be expanding their timekeeping procedures beyond hourly employees to include salaried employees. Several participants maintained that having robust time-tracking technology in place has become critical to easing the tracking burden on employees as well as on the company.

One option advocated by several of the roundtable participants is to raise selected salaries (those that are near the threshold) for the purpose of avoiding time-tracking and paying overtime. However, concerns about possible perceived unfairness were noted, since employees whose salaries are either already above or considerably below the threshold would not be considered for a raise.

Other HR managers said their companies could not afford either significant salary increases or increased overtime, and would likely be reducing employee hours in order to avoid the issue.

IMG_9928

How to Find (And Keep) Talent

Smaller businesses know they have a lot to offer—but the challenge is getting the word out to the best candidates, professionals at the roundtable said.

Companies in the Cape Cod area must address the relatively high cost of living facing potential employees, several said, while area tech companies compete with the higher salaries of the Boston area. A Rhode Island company specializing in home-based behavioral therapy contends with strict state requirements for employees. And just about everybody reported a dearth of high-quality, well-prepared candidates, particularly at entry level.

Where to find the best applicants? Advertising on a free site is likely to yield a large number of off-target applicants, but paid sites can be too expensive, roundtable participants agreed. One attendee recommended Indeed.com for job postings, and another noted specialized job sites, such as Dice.com for tech talent. Other suggestions included:

  • Word of mouth: Ask for references from and network with nearby schools or certification programs; state or local organizations, such as young professionals organizations and chambers of commerce; and professional peers at industry events.
  • Social media: One HR pro suggested using a clean, simple graphic in a job listing on LinkedIn in order to get more attention. Another said that posting about a job opening on her personal Facebook page and asking others to share had been effective.
  • An in-house referral program: Make the program robust and announce openings with great fanfare to build excitement, said one expert.

For promising candidates, one experienced interviewer advised, probe to find out what is most important to the applicant. Is it learning, advancement, a flexible schedule, or vacation time? Emphasize what a smaller firm can offer in those areas to offset the attractions of a larger company. For example, because smaller companies allow employees to wear many hats, candidates can be assured that they’ll have the ability to “stretch” and won’t be confined to a narrow role.

Suggested retention tactics included:

  • Encouraging managers to think out of the box about career paths within the company to give the best workers opportunities for advancement.
  • Sponsoring monthly employee events, such as a “painting and wine” night, to build staff cohesiveness.
  • Using employee surveys to drill down into what staff members like and don’t like. One participant, noting employee survey concerns about communication, instituted regular “CEO Forums” in which five or six employees meet with the CEO for a no-limits discussion.

The Affordable Care Act: Who and How Much?

As of 2016, all businesses with between 50 and 100 full-time employees are required not only to offer affordable health care to their employees, but to prove it to the IRS.

Human resources and benefits managers at the roundtable admitted they were less than fully prepared to meet the challenges of compliance, including:

  • Calculating which employees are considered “full time,” particularly when a business employs many seasonal employees.
  • Deciding what health care plans to offer, especially when there is a broad range of salaries within a company. The ACA mandates an employee must be offered an insurance plan for which his or her contribution equals no more than 9.5 percent of the individual’s annual salary.

In smaller businesses, HR professionals often don’t have the time or resources to keep up with the complexity of the law. Some roundtable participants confessed that they had done little to prepare for new ACA requirements, partly because they were expecting the regulations and deadlines to change yet again. Others said they are relying on their insurance brokers, payroll providers and accountants to guide them through the process.

Technology is proving a lifesaver for some HR professionals. For example, while most people in attendance said they are using spreadsheets to track and report employee hours, others reported success with using automated “time and labor” and workforce management software with specific ACA monitoring functionality. Proactive managers are also reevaluating their HR software packages to make sure they can quickly and easily run the necessary reports to complete the required IRS Forms 1094-C and 1095-C. Overall, many agreed that automation is critical to staying compliant with the ACA and simplifying the overall process.

Said Pettengill of the roundtable, “We are consistently impressed by the energy, resourcefulness and problem-solving skills of workforce management professionals in small to mid-size businesses. We know that they always come through for their companies and employees, and we are pleased to have had this opportunity to help them share ideas.”

Helping Businesses Manage Overtime Costs in the Wake of FLSA Changes

By Colin Menchin

You’ve likely heard a lot in recent news about the Department of Labor’s (DOL) proposed regulations that are expected to affect the Fair Labor Standards Act (FLSA) regarding new white-collar exemptions in the near future.

With minimal revisions since the FLSA was enacted almost 80 years ago, significant adjustments regarding overtime pay and minimum wage requirements have been proposed by the DOL. The DOL has proposed these updated regulations to better align with the present-day workforce and economic climate.

To put things into perspective, the current FLSA requirement states that an employee that makes at least $455 per week ($23,660 per year) either hourly or salary and who meet a duties requirement test is considered “exempt”. These exempt employees do not qualify for overtime pay. If passed, the DOL’s new regulations would require that:

  • The minimum salary threshold to be $970 per week ($50,440 per year) in order to be considered exempt from receiving overtime pay.
  • The salary threshold be updated annually to stay level with rising inflation and wage costs.

These new regulations would undoubtedly have a significant impact on most US businesses within the coming months. It would require employers to reassess their entire workforce classification as exempt/non-exempt, increase minimum annual wages of exempt employees, and track all hours worked by non-exempt employees. As a service provider, it is critical that you help to guide these businesses during these potential changes. By providing your expertise in conjunction with a workforce management solution, you can help your clients keep in compliance with the new FLSA regulations and control overtime costs.

You can reduce a business’ compliance risk and overtime costs by offering them a workforce management solution, complete with Time and Attendance, that accurately tracks and documents all employee hours worked, delivers proactive alerts that notify employers of employees breaching overtime, and includes insightful reporting capabilities for both ongoing analysis and proof of compliance.

In this recorded webinar, held on August 20, 2015, by ChrysMarie Suby of the Labor Management Institute and titled “Overtime Best Practices”, you’ll learn 10 helpful strategies to bring to employers for minimizing their overtime costs.

  1. Define the department budget and address OT in hours & percent of Total Worked hours.
  2. Identify a pattern for the use of resources developed from workload demand data.
  3. Define and standardize terms & formulas with division of direct, indirect, education, orientation, and paid not worked benefit hours and FTE’s.
  4. Clearly identify pay incentives, premium pay, bonuses, on-call/call-back.
  5. Monitor OT for both “regular” and “EOS” or incidental occurrences & trend for use & abuse patterns.
  6. Publish schedules with at least 85% of work from “core” employees in the unit.
  7. Require managers to publish schedules with <5% “holes” where shifts didn’t meet target requirements.
  8. Monitor for the 6 underlying drivers for OT bi-weekly & compare to specific criteria.
  9. Identify a pattern for the use of resources developed from workload demand data.
  10. Monitor for the Labor Management Institute’s Target Thresholds to Total Worked Hours.

To get more information on the Labor Management Institute’s 10 overtime best practices, please watch this recorded webinar.

About Colin Menchin:

Colin is a Marketing Specialist at Kronos SaaShr responsible for the inbound and outbound marketing programs of the company along with other responsibilities within the department.

Service Providers Share Insight on Affordable Care Act (ACA)

By Josh Davis 

When we describe the service providers we work with, we always share that they take a consultative approach with clients to understand their individual business needs while taking into account best practices, changes in regulation and legislation, and typical industry-related challenges. In doing this, they’re able to provide a customized solution to each of their clients that makes the most sense for each individual company they work with. Our workforce management solutions, combined with our partners’ expertise, help companies continually recruit, grow, manage, and retain their workforce while growing their bottom line. The ACA provides yet another avenue that service providers can be a go-to resource for, for their clients. It also enables them to add additional value to clients by offering ACA-specific solutions/services. Today, we launched this video of your peers discussing what small and medium-sized companies need to know about the ACA. It covers areas like,

  • The impact the ACA has to employers and employees alike
  • The types of data needed for ACA compliance
  • What employers should look for in an ACA solution
  • The importance of ongoing and proactive management of an ACA strategy and plan

This ACA compliance video is just one of a larger series entitled “Trends in Workforce Management”. This series will provide insight from several solution providers on specific topics that affect SMBs and their workforce management practices. Each video will provide SMB owners and their operations, HR, and finance personnel with critical information on developing workforce management strategies to control labor costs, minimize compliance risk, and improve workforce productivity. In addition to the ACA, the series will cover other topics on a bi-monthly basis throughout the year, including:

  • The Mobile Workforce – Employees today expect the same anytime, anywhere mobile functionality on the job that they use in their personal lives. SMBs can harness the power of mobile for their workforces while devising strategies to manage in the moment.
  • Time and Attendance ROI – An automated time and attendance solution is a staple for successful SMBs. Technology plays a critical role to improve productivity, reduce payroll costs, and decrease manual administration time while providing visibility into the workforce.
  • Cloud vs. On-Premise – Cloud-based workforce management solutions offer SMBs specific benefits over traditional on-premise solutions, including the ability to maximize IT resources, ease of installation, and data accessibility.
  • Integration and Data – Workforce management integration with other critical software solutions is no longer reserved for large enterprises. SMBs can leverage a single database across various functional areas to ensure data accessibility and integrity.
  • The Power of Outsourcing – Ever-changing regulations combined with the many nuances of workforce management are tough waters for SMBs to navigate alone. SMBs are increasingly partnering with workforce management providers to understand and navigate industry challenges, best practices, and regulations that affect their business.

Service providers participating in the video series are A Plus Payroll; Ameriflex Business Solutions; Axiom Human Resource Solutions; Benetech; BeyondPay; Checkmate Workforce Management Solutions; Evens Time; Exact Payroll; Integrated Payroll Services (iPS); J&H Inc.; Mosaic Employer Solutions; PAYBEN; PayNorthwest; Payroll Data Services; Payroll Professionals; Paystubz; Primepoint; ProPayroll, Propel HR; Resourcing Edge; Synergy Group HCM; Workforce Management Solutions; and Xponent Employer Solutions.

What are some insights or expertise you have shared with your clients around the ACA or the other topic areas?

About Josh Davis: Josh is the Channel Marketing Manager at Kronos SaaShr, and is responsible for driving the marketing strategy and plan aimed at increasing the growth of existing channel partners in addition to the recruitment of new channel partners.

Positioning Your Company As FLSA Compliance Experts to Clients

By Colin MenchinFLSA Compliance Alert

As a service provider, you’re a trusted resource for the businesses you work with when it comes to key functions like processing payroll, managing human resources, and/or collecting time and attendance data. To ensure you’re keeping customers happy with your business and services, your responsibilities to clients extend beyond that.

In a previous post, we wrote about how the impending Affordable Care Act (ACA) employer mandates mean that your clients need to have their ACA solutions in place to avoid compliance failure and the ensuing penalties that go with it. The ACA aside, compliance issues are something that companies are faced with every single day, and you need to work towards positioning your organization as a compliance partner to your constituents.

One way you can do this is by helping companies maintain compliance with the Fair Labor Standards Act (FLSA)

In 2013, employers paid $4.5 million on average to settle a wage and hour case1.

The FLSA is a law dating back to 1938, and was enacted by Congress as a means of eliminating the poor labor conditions that had led to a lower standard of living in the U.S. The FLSA sets minimum wage, overtime pay, recordkeeping, and youth employment standards affecting full-time and part-time workers. Administered and enforced by the Wage and Hour Division of the Department of Laborthe legislation typically applies to all public sector employers and private sector businesses grossing over $500,000 in annual sales.

The Department of Labor has been cracking down on violations more and more each year. In the last decade, FLSA cases have more than doubled from 3,426 in 2004 to 7,764 cases in 20132. An FLSA lawsuit can be a serious blow to an organization, especially for many of the small and mid-sized businesses that service providers like you typically work with. Financially speaking, these lawsuits can be quite crippling. Monetary penalties may include compensatory damages of two to three years’ back pay. In addition, the awarding of liquidated damages can sometimes be double this amount. And of course, there are the associated defense costs and legal fees, which can be in the hundreds of thousands of dollars when all is said and done. Then you factor in nonmonetary damages, such as severed relationships between managers and employees, and a damaged company image that could hurt customer relationships. Plus, higher level management will undoubtedly be tied up in court depositions, causing a large distraction and lost productivity. The rise in lawsuits recently has also been blood-in-the-water for lawyers who specialize in these cases. We’re now starting to see them contacting employees of at-risk companies directly in order to try and sniff out a case. Simply put, the threat of FLSA compliance failure has never been higher, and only continues to grow…

The President’s FY14 budget includes $3.4 million for increased enforcement of the Fair Labor Standards Act and the Family and Medical Leave Act3.

With this challenge to businesses comes a great opportunity for service providers to offer an automated workforce management solution. Manual processes or outdated systems can easily lead to errors, which leave an organization open to wage and hour claims. The laws governing wage and hour issues are complex, vary from one jurisdiction to the next, and change over time. Ignorance of the law is no excuse; your clients must be compliant with all applicable federal, state, and local wage and hour regulations. Because there are so many rules and regulations, automation plays a key role in helping businesses ensure full compliance.

Service providers seeking to minimize their clients’ compliance risk should look to provide a workforce management solution that centralizes wage and hour policy administration, establishes local policy enforcement, and creates detailed audit records. A tremendous advantage of an automated, single-platform system is also that it enables employees to see, in real time, that their punches are being accurately recorded. Reporting capabilities should complete the solution by enabling management to access detailed timesheet data for any point in time and go as far back as needed. This feature can be a real lifesaver in the event of a discrepancy or lawsuit, when this data will be requested and needs to be readily available.

How are you raising awareness with clients and prospects about FLSA compliance? During your sales process, do you place an emphasis on communicating the value proposition of your workforce management system as an FLSA compliance solution? Please share your thoughts and comments below.

1 http://www.wagehourlitigation.com/files/2013/11/16470719_1_NERA-2013-Trends-in-WH-Settlements-report1.pdf

2Seyfarth Shaw LLP, FLSA Cases in Federal Court (Seyfarth Shaw LLP: 2013), http://www.wagehourlitigation.com/files/2013/07/FLSA-Cases-Filed-2013.pdf.

3U.S. Department of Labor, FY 2014 Department of Labor Budget in Brief (Department of Labor, 2013), 3.

About Colin Menchin:
Colin is a Marketing Specialist at SaaShr responsible for the marketing strategy and programs of the company along with other responsibilities within the department.

Understanding How the Recent ACA Changes Will Impact Your Clients

By Colin MenchinACA Guy

Just when you thought it was finalized, the Affordable Care Act (ACA) gets changed again. But this time, different rules now apply for different sized businesses at different times, further adding to the complexities of becoming compliant. What does this mean for the clients you serve? Odds are they may be asking that same question for themselves. As their local service provider and workforce management expert, it’s important that you’re well-versed on these changes so that you can effectively communicate them to clients. For more on how you can help your clients prepare for the ACA, watch this webinar to learn more about the Act and the solutions you should be providing to help them ensure compliance.

Less Than 50 Employees

Key Dates

For employers in this group it’ll be business as usual for years to come. This group makes up roughly 96 percent of all US private employers1, so you’re likely to have numerous clients fall into this group. Luckily for them, they will not have to fill out any forms or worry about ACA compliance.

What Should They Do Now?

While they may not have to do anything per se, these employers are encouraged to remind their individual employees that they are still must have insurance by March 31, 2014 to avoid penalties for being uninsured.

Important to Note

You may have some clients that are hovering just below this 50 employee threshold. Clients close to 50 employees should strongly consider implementing a solution, as they may grow or need to add staff, putting them at or above 50 employees. By having a solution already in place, they can immediately begin determining who is eligible for benefits while also generating the necessary reports for the IRS.

50 to 99 Employees

Key Dates

Employers in this group must begin reporting on their current coverage and number of full-time/part-time (FT/PT) employees beginning January 1, 2015. However, these employers are exempt from penalties until January 1, 2016, so they essentially do not have to begin providing coverage to full-time employees until then.

What Should They Do Now?

In 2014, these clients should be selecting and implementing an automated solution to help them manage ACA compliance and determine the best FT/PT mix for their business. As their service provider, you should play an active role in this process by offering a robust ACA solution integrated with the workforce management products you already provide to them. On January 1, 2015, these clients should begin conducting a full 12-month look back period using this solution in order to measure their employees’ FT/PT status for 2016 when clients must offer coverage to full-time employees.

Important to Note

As stated above, employers will not be penalized for ACA compliance failure until 2016. That said, service providers should be taking a proactive approach to prepare clients now. Also, clients slightly above 100 employees should be made aware that the government will be auditing companies to ensure that they are not dropping employees in order to make it into this threshold to receive the extra delay. Lastly, the government has said that seasonal workers employed for less than six months will not be counted for the purposes of determining the employee count of a business.

100+ Employees

Key Dates

The federal government reports that this group makes up roughly two percent of all US private employers1, and that the vast majority of these employers already offer coverage to their employees. To help phase-in the ACA for these larger employers not offering coverage, they will only have to provide coverage to 70 percent of full-time employees beginning on January 1, 2015. At this time, they must also begin reporting on their current coverage and number of full-time/part-time employees. On January 1, 2016, these businesses must be providing coverage to 95 percent or more of all full-time employees.

What Should They Do Now?

These employers need to be getting ready today with the help of you, their workforce management expert. They should already have an automated ACA solution in place at this point, but if they don’t, they should find one immediately. These businesses must conduct a look back period prior to 2015 to determine each employee’s FT/PT status, and the longer the look back period, the less chance that a busy or slow month will greatly skew the data. They are already beyond the point of being able to conduct the suggested 12 month look back period. Furthermore, you should be working with these clients to determine their Pay or Play strategy, selecting the right FT/PT mix for their business, and then determining which FT employees should be offered coverage first in 2015.

Important to Note

While the 50-99 employee group has an extra year before compliance failure penalties can hit them, employers in the 100+ threshold can be hit with penalties in 2015. While this isn’t the first ACA delay, the Obama administration has said that these are final, so employers should be planning accordingly and preparing immediately if they have not been already.

Making the Most of the Delay and New Mandates

Let’s face it, even with these recent changes to the ACA employer mandates and the delays to their subsequent penalties, the Affordable Care Act is becoming a reality with many businesses expecting their costs to rise. Not only does this provide an opportunity for service providers to offer their ACA solutions, but right now is a fantastic time to be communicating the many benefits of your workforce management solutions, all while positioning your company as a thought leader. Key points to focus on with this are that they increase workforce productivity, and that by doing this, they can help offset some of these future ACA costs that have business owners concerned. With these delays, businesses now have some time to explore the complete range of solutions you provide. We strongly encourage service providers to use this extra time to help employers prepare for ACA, while also communicating how your solutions can benefit them in other areas while giving them the ROI to cover some of their future ACA costs.

How successful have you been in preparing clients for the ACA? Please share your thoughts and experiences below.

1http://www.treasury.gov/press-center/press-releases/Pages/jl2290.aspx

About Colin Menchin:
Colin is a Marketing Specialist at SaaShr responsible for the marketing strategy and programs of the company along with other responsibilities within the department.

3 Ways Changing Labor Laws Benefit Payroll Providers

By Paul Abel

Due to the ever-changing state and federal labor laws and posting requirements, owners of small and midsize businesses are often hard-hit with unexpected fines and citations. However, these legally mandated requirements have been used by many other providers in the payroll and HR space to generate a new source of revenue for their company through the provision of labor law posters. Expanding their offering to include these posters reinforces those companies’ expertise as a go-to-resource for employers. This service helps their clients avoid hefty fines and lawsuits, all while providing a safe, fair, and compliant work environment for their clients’ employees.

President Obama called on Congress to raise the federal minimum wage to $9 an hour from $7.25 and to automatically adjust it with inflation. And on Tuesday during his State of the Union, President Obama urged Congress to “Give America a raise” and increase minimum wage to $10.10. If this major legislation were to go through, that would potentially mean every employer would need a new labor law poster when the legislation changes, and every year thereafter if minimum wage is tied to inflation. However, the progression of this legislation and Congress coming to an agreement on terms has been slow. As a temporary solution, five individual states have been adjusting their own minimum wage requirements.

Did you know that 13 States and 6 cities/counties revised “mandatory to post” notices in Dec 2014?Labor-Law-Poster

This creates a monumental opportunity that many providers in your niche have already begun to take advantage of.  It goes without saying, a service like the distribution of labor law posters when legislation changes is simple to offer with the right partner and can assist clients with maintaining compliance.  Here are three ways providing this type of offering can benefit service providers today:

Opportunity To Create Additional Revenue Streams
Providing this service helps you build an additional stream of recurring revenue.  “Pay-As-You-Go” labor law poster subscription services help service providers offer labor law posters as a solution without virtually any financial risk or barriers to entry.  In fact, a minimum of 150 payroll and HR companies already offer a poster service in their array of available products.  This subscription service, or even on-demand ordering, is already getting providers like you in the door to provide additional services or solutions like payroll, time and attendance, and HR.

New Prospect Lead Generation Tactics
Labor law posters are also a great way to easily and effectively get the word out about your company and generate new leads.  Here are a couple tactics that companies like yours already use with these posters.

  • Setting Appointments – There are national providers that use labor law posters to secure appointments for their sales staff.  They have staff members that inform employers once legislation changes and offer a free poster in return for meeting with a sales representative.
  • Partnerships with Chambers of Commerce – These member-based organizations are looking for ways to increase member-only benefits.  By partnering with them and offering labor law posters behind a contact form like this, is another way payroll and HR providers are bringing leads to their door.  By ONLY providing these posters to members that request the poster, you’re having these companies self-identify as having a need for compliance solutions.

Create Brand Awareness and Recognition
Adding a service like this to your repertoire gives prospects the perception that you’re not just a payroll company.  That you’re able to handle a multitude of employer-related needs and provide a wider spectrum of workforce management solutions.  This gives you a reason to distribute a press release, engage with some of the local media, or attend a regional conference or tradeshow.  If you’re exhibiting at an event, branded labor law posters are the perfect promotional item that give you one of the greatest opportunities to stay top of mind (and in sight, probably on the wall) for the prospect once the conference is over and they return to the workplace.

And what’s greatest of all is labor laws are constantly evolving, and when they change, your prospects and your existing clients need a new poster.  Many payroll providers are ready to meet that demand, are you?

About Paul Abel:
After owning several different bagel franchises, and experiencing first-hand how compliance is no easy matter for the average employer, Paul founded Poster Elite. Poster Elite provides turn-key Labor Law poster solutions to payroll bureaus in addition to many insurance and HR companies that take advantage of publisher direct pricing and pay-as-you-go subscription services.