Human Resources

On May 28, 2024, Governor Ned Lamont signed legislation expanding Connecticut’s 2011 Sick Leave Law. The new legislation is effective on January 1st, 2025. The law covers more employees, expands the reasons under which employees may use paid sick leave, and reduces the required hours to accrue paid sick leave. Who is covered by the new law? Currently under Connecticut law, employers with more than 50 employees in specific retail and service occupations must provide their employees with up to 40 hours of paid sick leave annually. The new law expands the type of eligible worker to almost every occupation (not just retail or service occupations). It also expands the number of employers who must comply by reducing the number of employees they must employ to be covered. It is important to note that seasonal employees and certain other temporary workers remain exempt. The threshold number of employees required for coverage is gradually being lowered. Starting January 1, 2025, employers with 25 employees must provide their employees with paid sick leave: this drops to 11 employees on January 1, 2026, and one employee on January 1, 2027. When can employees use paid sick leave? Governor Lamont declared the current law leaves “broad categories… unprotected….” In response, the legislation has extended the definition of a family member to include more than that person’s minor children. This expansion includes “spouse, sibling, child, grandparent, grandchild or parent of an employee or an individual related to the employee by blood or affinity whose close association the employee shows to be equivalent to those family relationships.” The legislation also addresses the impact COVID-19 had on employees, allowing paid sick leave to be taken in instances related to declarations of a public health emergency. How do employees accrue paid sick days? Eligible employees will now accrue one hour of paid sick leave for every 30 hours worked, accruing up to 40 hours per year.  This is a ten-hour reduction from the previous one hour for every 40 hours worked. Employers may grant more time off or allow accrual at a faster rate.     Limits on Employers’ Control over the Use of Sick Time In Connecticut and across the nation, generic Paid Time Off policies have replaced the old-fashioned sick leave, personal leave, vacation, and many other forms of paid time off. As a result, sick leave mandates are allowed to be covered by PTO. Thus, when a company offers four weeks of PTO, they are really offering three weeks of PTO and one week of sick time.  The question we address here is if employers can put any limitations on how employees use their sick time. When Connecticut’s Sick Leave law was first effective in 1997, employers had the right to mandate that employees use their sick leave when they take other unpaid leaves. The employers’ motivation was to limit how much total time off employees were allowed. That all changed on January 1, 2022. In 2022, the law was amended to require employers leave at least two weeks of PTO to be used at the total discretion of the employee. This change was missed by most employers. To be sure you don’t run afoul of this law, employers should check their policies to ensure the mandated use of sick leave for all unpaid leaves is not their policy and not in their handbooks. Brody and Associates regularly advises management on complying with the latest local, state and federal employment laws.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560          

Effective March 12, 2024, New York Labor Law prohibits employers from requiring employees and job applicants to provide information about their personal accounts. If you think this sounds familiar, you are right. This idea has been in place in various states for years; now New York is joining in! Under the new legislation, “personal accounts” are broadly defined. It means “an account or profile on an electronic medium where users may create, share, and view user-generated content, including uploading or downloading videos or still photographs, blogs, video blogs, podcasts, instant messages, or internet website profiles used exclusively for personal purposes.” Specifically, Employers may not require employees or job applicants to: disclose the username, password, or “other authentication information” for accessing personal accounts; access a “personal account in the presence of the employer;” or “reproduce in any manner photographs, videos, or other information contained within a personal account.” However, nothing in the law prevents employers from: Accepting voluntary friend requests sent from an employee or applicant (although such actions may not be wise!); Accessing public social media accounts; Accessing information about an employee or applicant that can be obtained without any access information; Accessing information “for the purposes of obtaining reports of misconduct or investigating misconduct, photographs, video, messages, or other information that is voluntarily shared by an employee, client, or other third party that the employee subject to such report or investigation has voluntarily given access to contained within such employee’s personal account.” If your strategy is to argue that in response to an employer request, the applicant or employee “voluntarily” gave permission, that may be a very tough burden to meet! Employers who ask applicants or employees to share their social media accounts should proceed with caution. This area of law in New York is new and quickly evolving. Brody and Associates regularly advises management on complying with the latest local, state and federal employment laws.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560    

Yesterday, Governor Kathy Hochul signed into law The Clean Slate Act (S.7551A/A.1029C) with an effective date of November 16, 2024. The law will seal certain criminal records following an individual’s release from incarceration: eligible misdemeanor convictions will be sealed three years after release, and eligible felony convictions will be sealed eight years after release – on the condition that the individual convicted of the offense has not committed an additional crime in the intervening period. The Clean Slate Act will not seal the records of individuals convicted of sex crimes, murder, or other non-drug Class A felonies.  Law enforcement, prosecutors, the New York State Education Department, the courts, and certain other groups will continue to have access to all criminal records under the law. New York became the 12th state in the nation to sign Clean Slate legislation, joining New Jersey, Michigan, Pennsylvania, and others. Statistics show that a criminal record makes finding new employment significantly more difficult. The Clean Slate Act is designed to provide a second chance to individuals who have paid their debt to society, enabling them to restart their lives and become positive contributors to their communities. Conviction information will remain available for law enforcement purposes, the hiring of police and peace officers, the hiring of teachers at public and private schools, and background checks for firearm purchases and/or licenses. A

Attention New York employers: On November 17, 2023, Governor Hochul signed S4516 into law, amending Section 5-336 of the General Obligations Law (“GOL”), commonly known as New York’s #MeToo statute. The amendment significantly changes the terms permissible in settlement agreements for claims relating to discrimination, harassment, or retaliation. As of the effective date, November 17, any settlement agreements involving claims of discrimination, harassment or retaliation, cannot: Compel the complainant to forfeit consideration if they breach nondisclosure or nondisparagement clauses; Mandate the complainant to pay liquidated damages for violating nondisclosure or nondisparagement clauses; or Include or require an affirmative statement, assertion, or disclaimer stating the complainant was not subject to unlawful discrimination, including discriminatory harassment or retaliation. If these provisions are present in settlement agreements, the entire release becomes unenforceable. In other words, the employee can still sue you even after fully executing a release agreement (and receiving the money that typically follows)! Additional changes the amendment made include: Waiver of the 21-day consideration period: Previously, complainants had to wait 21 days before entering into a confidentiality agreement. Now, complainants can waive this consideration period, although the separate confidentiality preference agreement and 7-day revocation period still apply. Extension of protections to independent contractors: The recent amendment expands the #MeToo statute to cover independent contractors. Previously, the law only applied to agreements between employers and employees. In light of these changes, employers should ensure their settlement agreements for claims of harassment, discrimination, or retaliation do not include clauses related to liquidated damages, clawback provisions in case of a breach, or statements denying unlawful discrimination. Inclusion of such clauses will render the release of claims unenforceable, but the obligation to pay the settlement amount may persist. If you are executing a release and you are not sure if the underlying claims involve harassment, discrimination, or retaliation, seek skilled counsel for advice. Brody and Associates regularly defends employment litigation cases for management and advises management on complying with the latest local, state and federal employment laws.  If we can be of assistance in these areas, please contact us at info@brodyandassociates.com or 203.454.0560

In the dynamic landscape of employee performance evaluations, 360-degree reviews have emerged as a holistic approach, offering a well-rounded perspective. However, to extract the full benefits of this method, managers must adopt a strategic outlook. This blog post explores key elements to enhance the effectiveness of 360 reviews, delving into the nuances of communication, goal setting, and the overall contribution of employees to organizational success. Key Considerations for Meaningful 360 Reviews 1. Managerial Preparedness for Effective Communication One pivotal aspect of successful 360 reviews is the manager’s commitment to investing time in preparation. To unlock the true potential of this evaluation method, managers must be well-prepared to clearly communicate the details of the review. This involves not only understanding the process but also being adept at articulating constructive feedback. Clear and transparent communication sets the tone for a positive and impactful review experience. 2. Clarity in Communication Building on the foundation of preparedness, managers must emphasize clarity in their communication during the 360-review process. Ambiguity can lead to misinterpretation, undermining the purpose of the evaluation. By asking great questions, listening thoroughly and  being precise and concise in feedback delivery managers can ensure that employees grasp the essence of their performance and areas for improvement. Clear communication fosters an environment of trust and mutual understanding. 3. Setting Attainable Goals Goals are the compass that guides professional development. In the context of 360 reviews, managers play a pivotal role in setting clear and attainable goals. These goals should not only align with the organization’s objectives but also consider the individual strengths and areas for improvement identified through the evaluation. Specificity in goal setting enhances the employee’s sense of direction and purpose, contributing to overall job satisfaction and productivity. 4. Communicating the “Why” of Employee Contributions Beyond the traditional focus on skills, it is essential to communicate the “why” behind an employee’s work. Managers should highlight the meaningful impact of individual contributions on the success of the company. This perspective instills a sense of purpose and belonging, motivating employees to actively engage in their roles. Connecting the dots between daily tasks and organizational success creates a more profound understanding of the employee’s value. Additional Perspectives on 360 Reviews Soft Skills Emphasis: While technical competencies are crucial, the 360-review process is ideally suited for assessing soft skills. Not everyone possesses the same technical expertise, making it challenging for a comprehensive evaluation. Soft skills, on the other hand, are universally applicable and contribute significantly to team dynamics and overall workplace harmony. Choosing the Right Platform: The choice of the platform for conducting 360 reviews is pivotal. Online surveys, with a mix of rating scales and open-ended commentary, have proven to be effective. This approach encourages honest feedback and provides a comprehensive understanding of the employee’s performance. Optimal Timing: Consider the timing of 360 reviews carefully. Avoiding busy periods, such as month-end, ensures that employees can dedicate sufficient time and attention to the evaluation process. This consideration reflects a commitment to a fair and thoughtful assessment. Encouraging Open Feedback: Acknowledge that not all employees may feel comfortable expressing themselves in written form, especially if English is not their primary language. To address this, provide alternative channels, such as internal forums or private HR consultations, where employees can voice their opinions comfortably. Incorporate 360 Reviews into Your Culture Incorporating these perspectives into the 360-review process transforms it from a routine evaluation into a powerful tool for professional growth and organizational success. By investing in preparation, embracing clarity, setting meaningful goals, and emphasizing the “why” of employee contributions, managers pave the way for a more insightful and constructive performance review experience. With any questions about implementing a 360-review process, reach out to the WhiteWater Consulting team today.

  The 2023 Sales Dilemma Susan Powers, Peak Sales/Sandler   Salespeople have never had a greater advantage and opportunity than they do today. They can secure even greater advantages and opportunities with each passing day. That’s because artificial intelligence, machine learning, and technology continue to make advancements that help salespeople develop closer and stronger relationships with their clients and prospects. Yet a lot of salespeople and sales leaders don’t see it that way. They see their main dilemma as one of getting, not just more leads, but more qualified leads. Fortunately, the sales-enabling and marketing-enabled technologies now driven by AI are making this goal much easier to attain– at least, for organizations that grasp the power of these technologies and leverage them. But for many salespeople, there remains an underlying, and far more serious, dilemma, one of attitude. They are stuck in the 21st-century version of a very old problem, one that has been known for decades as the Scarcity Mindset. They fear that artificial intelligence, machine learning, and technology will replace them. These salespeople worry that buyers will no longer need them around to make an intelligent buying decision. They fear there will not be enough to go around. The reality we face is simultaneously more encouraging and more challenging than that. AI will not replace salespeople… but AI-empowered salespeople will replace those salespeople who choose not to embrace the future of selling. Selling is still about choosing abundance over scarcity, and it is still about trust and honest communication– the two most important ingredients in any relationship. Today’s sellers need to remember that when their organization’s marketing technologies deliver those sought-after high-quality leads, their job is to initiate trust, build trust, maintain trust, and further trust. And the best way of doing this is to lean into, not away from, the revolutionary sales-enabling technologies that have been made available to us. To initiate trust, show up fully prepared for the first call or meeting, leveraging AI to know as much about the prospect, their industry, and their competition as possible. To build trust, use what was discovered in the first call or meeting and continue researching the solutions that will best meet the needs of the prospect– even if it means that you are recommending a competitor or other solution that is not your own. This approach goes a long way indeed in building trust. Once we have received a qualified lead, initiated trust in the first call, and built trust through honest adult-to-adult truth-based communication to create a relationship that wins the business, we must also maintain trust. All too often, this responsibility gets left out of the equation. We lose track of the relationship once the deal “closes.” So: Stop thinking in terms of closing! There will inevitably be delivery or other customer service issues; there will probably also be price increases at some point; there be unexpected shifts in the buyer’s world that neither side can predict right now. These and other events will require a strong relationship if they are to be handled properly and if the relationship is to grow over time. As sellers, we need to stay more informed than our competition, and if you think AI isn’t part of that, you’re not reading the horizon well. We need to get out in front of the challenge that shows up in our buyer’s world, whatever form it takes, and we need to share relevant information with our buyers and their stakeholders. That means delivering difficult information when necessary, and in a way that strengthens, rather than weakens, the relationship. Humans will always have an advantage over computers in this regard. When clients know that they can count on us to deliver honest but difficult news, they know that they can also trust us to take care of their needs as a customer. Furthering trust means that as sellers, we are leaning into AI and other information technology as much as possible, so we can make sure we see trends and shifts in the business and/or industry we serve before they impact our clients. When we can proactively bring information and insights to our clients that could help bring about advanced solutions, or help them to mitigate risks that connect to potential changes in their industry, this furthers the trust between the buyer and the salesperson. I began this article with the dilemma that most sellers care about: filling their funnel with qualified sales leads they can pursue. However, the real dilemma today’s sellers face has to do with a decision: embracing either the Scarcity Mindset or the Abundance Mindset. In 2024, embracing the Abundance Mindset means embracing artificial intelligence, machine learning, and sales enabling technologies with everything we’ve got. Gone are the days of Chief Revenue Officers or Chief Sales Officers accepting the excuse that part (or all!) of their sales force can’t even open an email or use a laptop. If you choose not to adapt to the world in which you now live and work, you will be left behind. That’s not scare talk. That’s reality. Here, then, is a wake-up call for today’s seller, regardless of tenure, age, or perceived influence within the company: We must all get on board the train and become AI-empowered sellers. If we don’t find our seat on this train, we will be replaced by salespeople who are leveraging all that AI, machine learning, and sales-enabling technologies have to offer. If you doubt this, compare the recent commission checks of those who are embracing the AI revolution with those who are not. I predict that you will instantly see the difference! Sales leaders: Are you certain you and your sellers are on board the train that’s heading toward the future of selling? Or do you feel like you or your team may have been left behind at the station? If you’d like to know more about how to make the shift, and/or how to get buy-in and adoption from your team on the ideas I have shared here, I would love to hear your story.

Selling a small business can be tough.  One of the biggest obstacles to a successful business transfer is the lack of a strong team.  Without a competent and reliable team buyers may hesitate to invest in the business.  Owners should focus on building a workforce structure that can help drive the business forward.  Potential buyers will be interested in investing in a stable and engaged workforce and profitable operation. Identifying and Filling Gaps in the People Infrastructure Before selling a business, it’s important to identify any gaps in the people infrastructure and take steps to fill them. One way to do this is by conducting a thorough evaluation of the current team. This can involve analyzing employee performance, identifying skill gaps, and determining whether there are any critical roles that need to be filled. Once these gaps have been identified, it’s essential to take action before putting the business on the market.  Important actions involve reboarding existing positions to update roles and expectations, providing additional training and development opportunities for existing team members, and where necessary, hiring and training new employees. It’s important to keep in mind that filling human capital gaps may take time, so it’s best to start this process well in advance of planning to sell your business.  Your people infrastructure will be strong and stable before potential buyers begin to evaluate your company. The Risks of a Weak People Infrastructure Without a strong people infrastructure, a small business can be a house of cards.  It may appear to be stable on the surface, but with a single gust of wind, it could come crashing down.  If key employees leave or are unable to perform their duties, the entire operation can suffer. This can be especially problematic when trying to sell the business. A potential buyer may see that the business relies heavily on one or two key employees, they will wonder if these employees may decide to leave after the sale.  Without proper preparation, such as ensuring leadership is prepared and on board, strengthening of the business processes, and updating individual roles and contributions, owner dependency, and an updated org chart, a business will appear less attractive and often owners are challenged to get the offers they desire. A Strong People Infrastructure as part of preparation for sale A strong people infrastructure includes a team of skilled, engaged, and dedicated employees who are capable of running the business effectively and efficiently.  This team should be able to handle day-to-day operations, manage customer relationships, and drive growth.  Essentially, the business is designed to succeed without the owner at the center of the operation, the client relationships and revenue generation.  Instead, the people infrastructure is made up of business contributors that lend the full scope of their capabilities to ongoing growth. Buyers want to feel confident in both financial capital and human capital.  A solid people foundation is a value driver and your best competitive advantage in a go to market strategy. Time to Invest in Building a Strong People Infrastructure Creating a strong team takes time and effort, but it’s worth it for any successful business. Investing in the right people pays off in the long run. It’s also important to provide training and development programs to help your team grow professionally. By building a strong team, small business owners can set themselves up for success when it’s time to sell their company. Prospective buyers will be more interested in a business that has a competent and dependable team in place. Conclusion Selling a small business can be daunting to owners, especially if you lack leadership and a strong team.  It’s crucial to find and fix weak spots in your team infrastructure.  Having a trustworthy and fully engaged workforce is the key to setting your business up for success. By investing time in getting your workforce ready for the future, you make your business more appealing to potential buyers and ensure its success even after the sale.

At FIREPOWER, we’re here to help our leaders achieve growth and innovation through their biggest asset: their people. Together, let’s achieve the hardest growth goals and go beyond the surface-level approach of employee reviews by learning how to balance people, processes, and technology to establish an empowered workforce. It’s time to unlock the true potential of your workforce and create a thriving culture of unwavering team enthusiasm that drives business growth and sustainability. The Real Deal? Let’s face it, leaders who simply “dabble” in traditional methods such as annual performance reviews or employee surveys are only getting a snapshot of the workforce influences on business growth and sustainability, you are missing out on the real deal! To hit those hardest goals and unlock the full potential of your team, you need the right talent infrastructure to create real human synergy. Trust us, it’s like unleashing a powerhouse of growth and innovation. More Than Buzzwords When your leaders are equipped with the right tools and strategies to engage their team members, they become unstoppable. Your team’s engagement and enthusiasm become more than just the latest buzzwords – they become the driving force behind your success. Your team feels valued, motivated, and fully invested in the mission and vision of your business. And here’s the amazing part: when leaders prioritize team engagement and enthusiasm and in turn create a culture of growth and innovation, they not only achieve those hardest goals but also become magnets for the best buyers when it’s time to sell. Who wouldn’t want to acquire a business that has a thriving, engaged, and enthusiastic team firing on all cylinders? “It’s your employees who create all the economic value for your enterprise. You need, therefore, to stage a remarkable employee experience.”- B. Joseph Pine II, internationally acclaimed author. So, let’s revolutionize your approach to employee engagement. With FIREPOWER, we’ll help you create the right talent infrastructure to achieve and activate real human synergy. Say goodbye to surface-level tactics and hello to a culture that fosters growth, innovation, and long-term success for you, your leaders, and your team.  Together, let’s attract and retain your top talent, achieve those challenging goals, and create a business that is not only successful but also sustainable. It’s time to tap into the untapped potential of your team, ignite their passion, and watch your business skyrocket.

Hey there, hardworking business owner! We know you’ve been hustling and adapting like a champ over the past year. Remote work became the norm, and you made it work! But now, a moment of truth is upon us: the option to return to the office. While remote work definitely had its perks (like sweatpants and a commute that involved rolling out of bed), there are some undeniable benefits to gathering your team back at the office. So, gear up, and let’s dive into why returning to the office can be a game-changer for your business. Unleash the Collaboration Beast Picture this: you’re sitting at your desk, surrounded by your crew of superstars, whiteboard markers in hand, ready to brainstorm and tackle challenges as a team. That’s the power of in-person collaboration at its finest! Returning to the office means bringing together minds that think differently, work off each other’s energy, and create magic through collaboration. From casual water cooler chats to spontaneous brainstorming sessions, the possibilities for innovation and problem-solving are endless when you’re physically present. Foster a Thriving Team Culture Culture is the secret sauce that fuels successful businesses. Returning to the office allows you to shape and nurture the unique DNA of your team. Imagine the infectious energy of joint victories, the camaraderie built over Friday donut runs, or even the playful banter during lunch breaks. These moments might seem small, but they create a sense of belonging and foster connections that can’t be replicated in video meetings. Flexibility within the Office Walls Let’s talk about flexibility. Returning to the office doesn’t mean throwing all your remote work gains out the window. It’s all about striking the right balance. By working together in the office, you can create a hybrid work model that allows for a mix of office and remote days. This means you can reap the benefits of face-to-face collaboration while still giving your team the freedom to rock those sweatpants and work from home when it makes sense. Boost Your Business Mojo Here’s the thing – when your team is firing on all cylinders, amazing things happen. Returning to the office allows for quicker decision-making, streamlined communication, and the ability to tackle challenges head-on. Being physically present in the office fuels productivity and creates an environment where ideas can flow freely. Plus, the office is the center of inspiration and motivation as you witness your team’s collective drive and determination. The Office as an Oasis Sometimes, a change of scenery can be exactly what you need to rekindle your entrepreneurial flame. The office offers a dedicated space away from the distractions of home, where you can fully immerse yourself in work mode, ready to conquer the world surrounded by like-minded individuals fueling your business mojo. Embrace the Best of Both Worlds Returning to the office doesn’t mean abandoning the lessons learned during remote work. It’s about embracing the best of both worlds – combining the power of in-person collaboration, the flexibility of hybrid work, and the safety measures necessary to thrive in today’s reality. Your team is a force to be reckoned with, and the office is the rallying point where they can unleash their collective potential. So, gear up, rally your troops, and get ready to conquer new heights. It’s time to return to the office and unleash the untapped power of teamwork that will propel your business to the next level.

Later today, the United States Supreme Court is set to hear opening remarks in a former postal worker’s claim of religious discrimination against the U.S. Postal Service (the “USPS”) after he was repeatedly disciplined for refusing to work on Sundays.  Once again, this Supreme Court is considering overturning decades of precedent. If successful, the ruling could make it harder for employers to deny a request for religious accommodation under a federal anti-discrimination law known as Title VII of the Civil Rights Act (“Title VII”). The worker, Gerald Groff, is an evangelical Christian and the matter before the Court will have the Justices revisit a decades-old test for determining when and if an employer can deny a requested religious accommodation. The standard which has been in place for over 40 years is based on the Court’s ruling in Trans World Airlines, Inc. v. Hardison (“Hardison”).  In Hardison, the Court found employers were permitted to deny a reasonable accommodation request for sincerely held religious beliefs under Title VII if the accommodation would result in an undue hardship for the employer. The Supreme Court, as currently constituted, holds a 6-3 conservative majority. This Court has a reputation for expanding the conservative agenda, 

Don’t be surprised if no one is answering the phones at Brody and Associates on June 19th.  The number of private employers offering Juneteenth as a paid holiday continues to grow and has jumped significantly over the last three years.  Last year, nearly one-third of all private employers gave their employees a paid day off.  This year that number is expected to grow close to 45%, which is up from just 8% in 2020.  These numbers are in addition to the federal employers and contractors who are already required to provide Juneteenth as a paid holiday. For those not in the know, Juneteenth is the day that commemorates June 19, 1865, the day when Union soldiers informed enslaved Black people in Galveston, Texas, that they were free.  This news came more than two months after the Civil War ended – and is viewed as the day slavery ended in the United States. So why the sudden surge in social awareness more than 150 years later?  Here are just a few reasons.  There was national furor that followed the 2020 murder of George Floyd, resulting in demands for social justice. Organizations are now scrutinizing their diversity, equity and inclusion initiatives. And there has been a rising awareness of the Black Lives Matter movement. In addition to simply giving Juneteenth off as a paid holiday, many employers are hosting events around the holiday to advocate for the advancement of Black employees. Employers are providing important recognition of historical systemic racism and suggesting employees and employers alike reflect on these issues.  The push for recognition of the holiday has also been bolstered by President Biden signing Juneteenth into law as a federal holiday in 2021.  Since then, several cities and states across the country have followed suit.  In 2022, 24 states recognized Juneteenth as a state holiday, Connecticut will become the 25 this year, and cities like New York City and Los Angeles have also designated it as a paid city holiday. Regardless of your politics, Juneteenth is a movement sweeping the country. Each employer should evaluate if and how they individually want to recognize Juneteenth in their own workplace. Considerations should include both your personal beliefs, your workforce and your customer base. Brody and Associates regularly advises management on complying with the latest local, state and federal employment laws.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.

By Robert G. Brody and Mark J. Taglia March 10, 2023   On Thursday, March 9th, President Biden submitted his proposed fiscal year 2024 budget request to Congress.  In it he seeks a $1.5 billion increase to the U.S. Department of Labor Budget.  Most of this increase would support the President’s paid family and medical leave initiatives. In his proposed budget, Biden seeks three months of paid leave for American workers.  The President’s stated goal is to permit Americans to take time off for a variety of reasons, including:   to bond with a new child; to care for seriously sick family members; to recover from one’s own serious health issue; and to obtain support/protection from sexual assault and violence.   The scope of coverage under this bill is not news; the fact that it would be paid is the headline. Currently, the U.S. is one of just a few highly developed countries not to provide its citizens with a paid leave program. In recent years, some states have offered paid leave of up to 12 weeks through programs which are similar to the President’s latest proposal.  Thirteen states and the District of Columbia have enacted some sort of paid family leave legislation: California, Connecticut, the District of Columbia,Massachusetts, New Jersey, New York, Rhode Island, Virginia, and Washington currently have laws in effect; Colorado, Delaware, Maryland, New Hampshire, and Oregon enacted laws not in effect yet. On Thursday the President spoke out in support of the proposed program, arguing the time has come for the U.S. to, “no longer [be] the only major economy in the world that doesn’t have paid leave.”  The proposal delivers on campaign promises made by Biden when he ran in 2020. Now the hard part, getting it by Congress. If passed, the proposal would provide paid leave access to approximately 92% of low-paid workers (predominantly women and people of color), who don’t currently have access. Experts believe it will be virtually impossible to get a 12-week paid leave program passed with a bi-partisan split in Congress. Time will tell! Brody and Associates regularly advises management on complying with the latest local, state and federal employment laws.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.  

CBIZ Health Care Survey Shows Employers Prioritize Recruiting and Retaining Talent in Hot Job Market Survey also finds employers are prioritizing stemming the rising costs of medical plans and the inclusion of mental healthcare services Business Wire CLEVELAND — March 15, 2023 CBIZ (NYSE: CBZ), a leading national provider of insurance, financial and advisory services, released its inaugural 2023 State of Health Care survey that shows recruiting talent (67%) and retaining talent (64%) as top priorities for employers, trends driven by a hot job market despite concerns of a recession later this year. The State of Health Care survey includes responses from 869 businesses with at least 100 employees, spanning 41 states and 26 industries. The survey provides insight into employer priorities, top health plan features, and emerging mental and physical health benefit trends to watch through the remainder of 2023. “Employers continue to show an eagerness for recruiting the best and the brightest talent and to identify and retain those employees who have the best growth trajectory,” said Jay Meschke, President of CBIZ Talent & Compensation Solutions. “Since 2020, employers have had to respond quickly to drastic shifts in social and economic conditions and this year will be no different.” Controlling medical costs is a top priority for 49% of businesses. This comes as industry experts project a six to eight percent increase in employers’ health care costs due to rebounding utilization, or rising use of medical providers, and the rise in prescription drug costs. Cost-containment strategies businesses are implementing include reference-based pricing, alternative funding arrangements and enhanced use of telemedicine. Polly Thomas, Business Unit President, Employee Benefits added: “The survey showed that emerging trends and the priorities in the health care and benefits spaces are changing. This data will serve as a guide for businesses looking to modernize their benefits programs that mitigate risks and costs, while improving their employees’ health care experience.” The data was assessed from an overall perspective, as well as based on company size and industry. An interactive infographic with the results is available on the CBIZ website. Additional key findings include: * Almost 35% of employers that don’t offer mental health wellbeing resources through their plans are open to considering options – Despite opting to provide coverage plans that do not offer certain mental health services, nearly 35% of businesses indicated they would like to learn more about offerings for mental health programs. Interest surpassed consideration of other offerings like weight management (18.7%) and financial wellbeing (14.7%). * The majority of businesses provide mental health resources for their employees – 80 percent of employers offer mental health resources through an employee assistance program, while 68 percent provide counseling through their medical plans. * Nearly two in three businesses offer a wellbeing program for employees – With retaining talent being the second most valued priority for the employers surveyed, 61.9% are looking to attract and retain high-performing employees in part by offering a comprehensive benefits program that includes a wellbeing component. * 82% of employers include options for virtual behavioral health consultations – Employers are providing workers with increased options to meet with their medical professionals, both as a convenience and to help mitigate health and safety concerns amid the ongoing impact of COVID-19.

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What is your goal for your business? As fractional CFOs, when we first meet with our clients, this is among the first questions we ask. Your goals will inform much of our work supporting your company – whether we focus on preparing you for a near-future exit or growing and building the value of your business over time. This is what makes our fractional CFOs – many of whom are also CEPAs – a vital (and often missing) piece of the exit planning puzzle. Many business owners enlist exit planning experts as they approach the exit process, bringing in an army of resources to make the most out of what has already been built. A fractional CFO, however, becomes embedded in your business over time and, in the process, comes to serve as a value growth advisor – a financial expert who can help you 

ROBS – or use funds from their existing personal 401(k) or other retirement accounts as capital for buying a business.   In addition to creating cash flow and minimizing the use of debt, ROBS are an attractive source of funds unlocking value from an individual’s retirement savings to fund a business, what are the tax advantages that make considering a ROBS strategy worthwhile?  First, there is the aspect of tax deferral. Financing through ROBS avoids the early withdrawal penalty normally incurred when funds are withdrawn from retirement savings prior to retirement. When you use the capital from your 401(k) to fund a new income taxes or penalties, more money is available to go into the business, thus maximizing your available capital.  In addition to increasing capital efficiency, you avoid loan obligations because ROBS is not a debt product. It’s simply accessing the equity you already have built up in your retirement plan, so there’s no monthly repayments or interest like you would incur with a loan.  Accessing Business Capital Through ROBS  Here are some points to remember about how the flow of money works when using a ROBS strategy:  The new business entity to be funded must specifically be established as a C-Corp.  After a new 401(k) or profit-sharing plan is the business advisory space and how to implement a ROBS strategy. For a consultation on your business plans and objectives, please contact us at 770.740.0797 or email info2@SJGorowitz.com. 

As a small business owner, your instinct might tell you to seize every opportunity that knocks on your door. Let’s face it: saying yes can be a thrilling ride into new ventures. Sometimes, you need to remind yourself of your organizational Sweet Spot.  Does your team have the bandwidth, the people power, and the infrastructure to take it on? Sometimes, saying no is not just the better option; it’s a powerhouse move that aligns your business with your growth goal. Here’s the lowdown on when, how, and why flexing your “no” muscle is your smartest play. The Unmanageable Yes When you’re overcommitted and under-resourced, every additional yes is like adding more weight to an already overstretched team. If saying yes means sacrificing the quality of your work, spreading your resources thin, or burning out your team, then it’s time for a firm, resolute “no.” Remember, quality over quantity isn’t just a great saying – it’s the golden rule for sustainable growth. The Misaligned Opportunity Some opportunities seem golden on the surface, but they won’t help you achieve your business mission, vision, or values. Listen up: Your business is your compass; every decision should steer you to your true north. If it doesn’t fit, say no. It’s not just about avoiding the wrong turn; it’s about staying true to your course and your team’s potential. The Power of Prioritization Here’s a reality check—you can’t do it all. When you say no to less important things, you say yes to more focus, energy, and time for what truly matters. Embrace the art of prioritization because knowing what to decline is as vital as knowing what to pursue. Make your yes count! Cultivating Respect Saying no isn’t just about protecting your time and energy; it’s about setting boundaries. Assertiveness isn’t rude; it’s a sign of respect – for yourself, your team, and your business’s vision. When you respect your limits, others will follow suit. It signals to the world that your time, team, and resources are valuable. Conclusion Saying no is a tough decision. It’s not a negative judgment; it’s a selective choice. Think of the word no as a complete sentence and a powerful tool to guide your business to where it truly belongs. So, the next time you’re faced with a request that doesn’t feel right, plant your feet, take a deep breath, and remember that saying no is not just okay—it’s essential for your business’s health and ongoing success.   Do you need to get in your Owner Sweet Spot?

GAAP traps often occur when a business owner sells a company to a third party. The transaction is commonly memorialized by a Purchase Agreement. That agreement contains certain representations (or “reps”) and warranties. Some of these are common sense and should pose no problem to someone who has operated a good business. The Accounts Receivable represent money that is actually owed to the company. Taxes have been filed on a timely basis. The seller doesn’t know of any pending litigation. The owner has the right and authority to enter into a sale agreement. There is one, however, that is frequently required by attorneys who don’t understand privately held business, and agreed to by owners and their attorneys who don’t understand what they are guaranteeing. They are Generally Accepted Accounting Principles, or GAAP. What is GAAP? To start, the term “Generally Accepted” is misleading. It could easily be interpreted as “what everyone typically does.” Nothing could be further from the truth. GAAP is determined by two organizations, the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC). Per I

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