Independent Contractor or Employee? Understanding the Differences and Risk

Independent Contractor or Employee? Understanding the Differences and Risk

Navigating the world of work classifications can be tricky. Are you an employee, or an independent contractor? This distinction is critical, impacting everything from taxes to benefits. In the USA, the IRS and state laws have specific guidelines to determine this classification. Let's break it down.

Employee Support for Stressful Times

Employee Support for Stressful Times

2025 has brought with it an increase of calls to HR and leaders regarding mental health issues and overall stress management. Here are some helpful tips on how to support your teams in these times.

Workplace Charitable Giving on the Rise- Why it is Important to Consider in Your Benefits Strategy

Workplace Charitable Giving on the Rise- Why it is Important to Consider in Your Benefits Strategy

As workplace dynamics continue to evolve, companies are exploring new ways to engage employees and align their corporate values with their workforce's priorities. A top trend that is not new but is gaining momentum is charitable giving programs. These programs allow employees to contribute to causes they care about, and, when possible, offer the added benefit of employer-matching contributions. We take a deeper dive on why charitable giving is beneficial to the workplace here!

Why Inclusivity Matters in the Workplace: A Guide for High-Growth Startups

Why Inclusivity Matters in the Workplace: A Guide for High-Growth Startups

In today’s fast-paced business landscape, inclusivity is more than just a buzzword; it’s a vital component of a thriving workplace culture, especially for high-growth startups. Embracing diversity and fostering an inclusive environment not only drives innovation but also enhances employee satisfaction and retention. Here’s why inclusivity matters and five actionable steps startups can take to create an inclusive workplace.

Why Inclusivity Matters

  1. Enhanced Innovation and Creativity: Diverse teams bring varied perspectives, experiences, and ideas. When people from different backgrounds collaborate, they’re more likely to devise innovative solutions and approaches. This diversity of thought is essential for startups looking to disrupt markets and stay competitive.

  2. Improved Employee Engagement and Retention: Employees who feel included and valued are more likely to be engaged in their work and committed to the organization. This leads to lower turnover rates, which is crucial for startups that need to maintain momentum and invest in their talent.

  3. Better Decision-Making: Research shows that diverse teams make better decisions. By considering a wider range of viewpoints, companies can minimize biases and avoid groupthink, leading to more informed and effective strategies.

  4. Attraction of Top Talent: In a competitive hiring landscape, candidates are increasingly seeking employers that prioritize inclusivity. By creating a welcoming environment, startups can attract a broader talent pool, including individuals from underrepresented groups.

  5. Stronger Company Reputation: Companies that actively promote inclusivity tend to build a positive brand reputation. This not only enhances relationships with customers and clients but also positions the company as a leader in corporate responsibility.

5 Actionable Steps to Create an Inclusive Workplace

  1. Conduct Regular Inclusivity Training: Offer training sessions that educate employees about unconscious bias, cultural competence, and inclusive practices. This training should be ongoing and evolve as the company grows and diversifies.

  2. Establish Employee Resource Groups (ERGs): Create and support ERGs that focus on various aspects of diversity, such as gender, ethnicity, or LGBTQ+ identities. These groups provide a space for employees to connect, share experiences, and advocate for inclusivity initiatives.

  3. Implement Flexible Work Policies: Recognize that employees have diverse needs, and offer flexible work arrangements that accommodate different lifestyles and responsibilities. This can include remote work options, flexible hours, and support for caregiving.

  4. Revise Recruitment and Promotion Processes: Analyze your hiring and promotion practices to ensure they are fair and equitable. Consider implementing blind recruitment techniques to reduce bias and set diversity hiring goals to hold the company accountable.

  5. Solicit Feedback and Act on It: Create channels for employees to share their thoughts and experiences regarding inclusivity in the workplace. Regularly survey staff and hold discussions to understand their needs and concerns. Importantly, take action based on their feedback to demonstrate commitment to inclusivity.

Conclusion

For high-growth startups, fostering an inclusive workplace is not just a moral imperative; it’s a strategic advantage. By embracing diversity and implementing actionable steps to create an inclusive environment, startups can enhance innovation, boost employee engagement, and establish themselves as leaders in their industries. As you navigate the challenges of growth, remember that an inclusive workplace is one of the strongest foundations you can build.

Navigating the Workplace Dilemma: Office Return vs. Hybrid vs. Remote

Navigating the Workplace Dilemma: Office Return vs. Hybrid vs. Remote

In today's rapidly evolving work environment, companies are faced with a crucial decision: Should they return to the office full-time, embrace a hybrid model, or go fully remote? This choice isn't just a matter of logistics but also of balancing employee well-being with organizational needs. As we delve into the pros and cons of each strategy, we'll consider the impact on employees, particularly in terms of commute times and the rising cost of living.

1. Full Return to the Office

Pros:

  • Enhanced Collaboration: Being physically present can foster better teamwork and spontaneous idea sharing. Face-to-face interactions often lead to quicker problem-solving and a stronger sense of camaraderie.

  • Stronger Company Culture: An office environment can help reinforce company values and culture through daily interactions and shared experiences.

  • Improved Focus: Some employees find that working in an office reduces home-based distractions and helps maintain a clear boundary between work and personal life.

Cons:

  • Commute Challenges: Longer commutes can lead to increased stress and lower job satisfaction. For employees, this means spending more time and money traveling, which can exacerbate the impact of rising living costs.

  • Cost Implications: Maintaining office space involves significant expenses, from rent to utilities. These costs might be passed down to employees or result in reduced budgets for other initiatives.

  • Potential Disengagement: Employees who have grown accustomed to remote work may feel disconnected or less motivated when required to return to the office full-time.

2. Hybrid Model

Pros:

  • Flexibility: A hybrid approach allows employees to enjoy the benefits of both in-office and remote work. This flexibility can lead to increased job satisfaction and improved work-life balance.

  • Reduced Commute Stress: Employees can minimize their commute by working remotely part of the time, which can alleviate some of the pressures of rising living costs.

  • Adaptability: Companies can adapt their office spaces to accommodate fluctuating in-office attendance, optimizing space usage and reducing overhead costs.

Cons:

  • Coordination Complexity: Managing a hybrid workforce requires careful planning to ensure effective communication and collaboration between in-office and remote employees.

  • Potential for Inequities: There’s a risk that remote workers may feel excluded from important in-office interactions or that in-office employees might be perceived as having more visibility and opportunities.

  • Inconsistent Productivity: Balancing productivity levels between remote and in-office work can be challenging, with some employees thriving in one environment more than the other.

3. Fully Remote Workplace

Pros:

  • Cost Savings: Eliminating office space reduces overhead costs for the company and eliminates commuting expenses for employees. This can be particularly beneficial in a time of rising living costs.

  • Wider Talent Pool: Remote work opens up opportunities to hire talent from diverse geographic locations, potentially increasing the quality and variety of candidates.

  • Enhanced Flexibility: Employees have more control over their work environment and schedules, which can lead to higher productivity and job satisfaction.

Cons:

  • Isolation Risk: Remote work can lead to feelings of isolation and disconnection from the team, potentially impacting morale and collaboration.

  • Communication Challenges: Maintaining effective communication and collaboration can be more difficult in a fully remote setup. Companies need to invest in robust digital tools and practices to bridge this gap.

  • Work-Life Boundary Issues: Without a clear separation between home and work, some employees may struggle to maintain a healthy work-life balance, leading to burnout.

Finding the Right Balance

Ultimately, the decision between returning to the office, adopting a hybrid model, or going fully remote depends on various factors, including company culture, the nature of the work, and employee preferences. Here are a few strategies to help balance these concerns:

  • Conduct Employee Surveys: Gather feedback to understand employees’ preferences and challenges related to commute times and cost of living. This data can guide your decision-making process.

  • Implement Flexible Policies: If possible, offer options such as flexible work hours or partial remote work to accommodate diverse needs and circumstances.

  • Invest in Technology: For remote or hybrid models, invest in tools that enhance communication, collaboration, and productivity. This can help bridge the gap between in-office and remote employees.

As companies navigate these complex decisions, it’s essential to weigh the benefits and drawbacks of each approach while considering the well-being of employees. By adopting a thoughtful and flexible strategy, organizations can create a work environment that supports both their operational goals and the needs of their workforce.

Inclusivity in the Workplace

Inclusivity in the Workplace

In today’s dynamic and ever-evolving work environment, the concept of inclusivity is more important than ever. It’s not just a buzzword or a checkbox on a corporate agenda; inclusivity is the cornerstone of a thriving, innovative, and engaged workforce. As HR professionals, we play a pivotal role in fostering an inclusive culture that respects and values diverse perspectives. We take a deep dive to explore why inclusivity matters and how we can champion this cause within our organizations in our blog.

Embracing Flexibility: The Benefits of a Summer Work Schedule

Embracing Flexibility: The Benefits of a Summer Work Schedule

In today’s dynamic and ever-evolving work environment, the concept of inclusivity is more important than ever. It’s not just a buzzword or a checkbox on a corporate agenda; inclusivity is the cornerstone of a thriving, innovative, and engaged workforce. As HR professionals, we play a pivotal role in fostering an inclusive culture that respects and values diverse perspectives. Let’s explore why inclusivity matters and how we can champion this cause within our organizations.

Workplace Violence Prevention Law- July 1, 2024

Workplace Violence Prevention Law- July 1, 2024

California recently passed SB553 which requires nearly all employers with employees in California to draft and implement a Workplace Violence Policy and have this in place and have employees trained by July 1, 2024. This process must include employee participation in the creation of the policy and will require all employees to participate in the necessary training and written policies. And while we have known about this for months, most companies have not yet put this in motion. 

Most companies with employees in California are required to participate in this new law, with some exceptions, and while it is the most strict in California (isn’t it always?), other states are following suit. We recommend all companies put this policy into place ASAP, regardless if it is required in your state.  

The law states that not only is a policy required, but the policy and procedures on how to deal with workplace violence involve employees to weigh in and help create the policy; a workplace violence hazard assessment then needs to be conducted. Once these have been completed, trainings need to be implemented and completed as well, as policies are required to be reviewed and signed by each employee. 


Here are the steps we would suggest you and your company take to kick this off:

  1. Start with evaluating your employee and support base. Technically, this is specifically for employees who are onsite at a work location. However, given hybrid and travel schedules we suggest this apply to any/all employees to reduce risk to your business. Additionally, coordination is required if you are in a shared workspace as the coordination with the property manager and other employers within the building is required to ensure compliance across the board. And if you have leased employees or temporary employees, coordination with their agency is required as they would need to direct that training and it needs to be aligned with your policies.

  2. Loop in your employees and get their feedback. What do they see as workplace violence hazards? What suggestions do they have to prevent these and other issues? How should current and new employees be trained on these issues and the procedures if/when something were to happen? This feedback can be obtained in person or by sending out a survey so that employees can opt in their feedback. 

  3. Work with your HR team or consultant to build out your policy and procedures for both how to prevent workplace violence and steps necessary if/when it happens. This new law requires that the policy clearly outline the following 3 items: 1) identifying and evaluating workplace hazards, 2) responding to an actual or reported workplace violence event, 3) ensuring employee compliance with the plan. These should be clear and leave little room for ambiguity or interpretation. Once these are ironed out we encourage you to distribute to all employees and require signatures for acknowledgement for documentation purposes. These can then be added to the employee handbook for all new hires to review and sign with all other policies upon hire. 

  4. Create and implement the required training for all employees. This can be done in person or online through a platform such as EasyLlama who handles your other required training. We suggest reaching out to your current platform to make sure they offer this ASAP. 

In the end, this is a critical step in protecting your employees as well as reducing risk for your business. We have created these for other clients and are happy to help if you are overwhelmed- just reach out for a call and we can chat through it!

Understanding California's 'Right to Disconnect' Bill and Its Impact on Work-Life Balance

Understanding California's 'Right to Disconnect' Bill and Its Impact on Work-Life Balance

As more people are working remotely and participating in the gig economy, the boundaries between work and personal time are becoming less clear. This has led to a constant feeling of being "on the clock" for some.

This situation often results in work-related messages and emails arriving outside the traditional 9 a.m. to 5 p.m. work hours, which can be stressful for those seeking a healthier work-life balance.

To address this issue, a new law, known as Assembly Bill 2751, has been proposed in California. Introduced by Assemblyman Matt Haney of San Francisco in February, the bill aims to mandate employers to establish a policy that allows employees to disconnect from work communications during non-working hours.

The proposed law requires employers and employees to agree on designated "non-working" hours during which employees have the right to ignore work messages. If an employer fails to comply, they could face a fine of $100.

Assemblyman Haney emphasized that the bill is designed to be flexible and applicable to all types of businesses and employment in California, including sectors that require on-call work or extended hours.=

He believes that this law will make California businesses more competitive in attracting much-needed workers.

If passed, California would be the first U.S. state to implement such a law, joining 13 other countries, including France, Italy, Mexico, and Spain, that have already enacted similar "right to disconnect" laws.

The proposed law would apply to both public and private companies.

The introduction of this bill comes at a time when many Americans are finding it difficult to disconnect from work. A 2023 study by ELVTR found that one in five Americans has been asked to log on or complete a work task while on vacation or PTO.

The study, which surveyed 2,300 workers, found that 28% were disturbed by work emails during their vacations, and 25% were interrupted by work-related text messages.

The voting date for AB 2751 has not yet been set.

Navigating the FTC's Ban on Non-Competes

Navigating the FTC's Ban on Non-Competes

In late April the FTC issued a final rule to promote competition that will ban non-competes on a federal scale. It was a narrow vote after receiving over 26,000 public comments on the topic. The FTC estimates that over 30 million American workers (or one in five) are bound by non-competes currently, preventing them from joining competing businesses or launching one of their own, but that is set to change this September as non-competes become illegal nationwide.

Non-compete clauses and the drama surrounding them are not a new concept- the first believed non-compete lawsuit was in 1414 when an apprentice named John Dyer promised to refrain from working in his trade for six months (“Dyers Case”). When the judge in the case refused to enforce the non-compete it set off a domino effect of non-compete confusion for the next 600 plus years.  Over the years more and more states have banned the use of these restrictive clauses and more and more employees have pushed for a nationwide ban. The final rule in 2024 is set to rock the boat one more time, and likely without its fair share of chaos.

The big question we keep getting is “Will this stick?” And the answer here is “Maybe.”  The biggest hurdle right now is the US Chamber of Commerce who has announced it will sue the FTC to block the rule, calling it “unnecessary, unlawful and a blatant power grab.”  So time will tell, but it is never too early to prepare for what happens if/when it goes into effect.

If your company has non-compete clauses you should gear up. On or before the effective date employers must provide employees with these clauses a notice that these clauses will not (and cannot) be enforced. This must be in writing and delivered to all impacted employees by hand, mail, email, or text message and proof of delivery should be documented and filed.  Not delivering this notice and/or trying to enforce a non-compete after the effective date will result in penalties or injunctive relief.  In addition, employers should revise their current onboarding documents, handbooks, and training programs to remove any post-employment restrictions (such as non-solicitation or non-disclosure provisions) that could be deemed a non-compete clause.

We will be monitoring this closely and have already prepared and delivered some notices for employers who have requested these to be sent to employees- let us know if we can help you too!