Author: Susan Prebola

In 2022, Uber agreed to a $100 million settlement to resolve two misclassification lawsuits involving drivers in California and Massachusetts. The company had been accused of treating drivers as independent contractors rather than employees—enabling it to sidestep costs related to employer-sponsored benefits.

The practice of misclassifying workers to avoid legally required payments for disability insurance, family leave, and unemployment insurance is far too common. A 2020 audit by the New Jersey Department of Labor (NJ DOL) revealed just how widespread the issue is. In a review of 1% of New Jersey businesses, the audit uncovered 7,149 misclassified workers, $443 million in underreported wages, and nearly $14 million in unpaid contributions to state programs.

New Jersey uses one of the strictest standards in the country—the ABC Test—to determine whether a worker can be classified as an independent contractor. Under this test, a worker is presumed to be an employee unless all three of the following conditions are met:

1. The worker is free from control or direction.
   
2. The work is outside the usual course of the company’s business or performed offsite.
   
3. The worker is engaged in an independently established business.
   

For companies like Uber and Lyft, drivers are unlikely to meet the second condition, as their work directly aligns with the company’s core service. As such, they may be deemed employees entitled to the same legal protections and benefits.

In response to these concerns, the NJ DOL has proposed a new rule that would classify drivers for app-based companies as regular employees—not freelancers. This rule extends beyond transportation companies and would bring sweeping changes to the gig economy and signal heightened enforcement statewide.

What Can Employers Do Now?

To stay ahead of these changes and avoid penalties, New Jersey businesses should act now:

• Audit contractor relationships: Review every independent contractor agreement for compliance with the ABC Test.
  
• Examine policies and contracts: Ensure your employment practices align with both existing laws and proposed changes.
  
• Engage in the rulemaking process: Consider submitting public comments if the proposal impacts your operations.
  

Misclassification is a serious risk, with real financial consequences. Proactive compliance is not just smart business—it’s essential. Counter Point can help your organization navigate compliance so you can focus on more strategic tasks. Contact us today!

Navigating the complexities of health and welfare benefits can be challenging, and mistakes are all too common. Missing reporting deadlines, overlooking required notices, or confusing important documents can easily happen. To protect your business and avoid unnecessary risks, it’s important to stay ahead of these key compliance areas.

Affordable Care Act (ACA)

Enacted in 2010, the ACA aims to expand health insurance coverage and make it more accessible and affordable. It includes provisions to expand Medicaid, protect consumers, and support innovative medical care delivery. The ACA impacts employers, employees, insurance companies, healthcare providers, and more. Due to the complexity of the law, compliance can be challenging, making it important to seek guidance from an expert who knows it well.

Employee Retirement Income Security Act (ERISA)

Passed in 1974, ERISA governs both retirement and health and welfare benefits. It is a federal law that sets minimum standards for most voluntarily established pension and health plans. Over the years, numerous amendments have expanded its requirements. ERISA applies only to private sector employers, and most compliance issues arise from documentation and disclosure related to employee benefits.

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Enacted in 1986, COBRA is a federal law that allows employees and their families to temporarily continue their employer-provided health insurance coverage after leaving a job or experiencing a qualifying life event. It helps individuals avoid gaps in coverage by allowing them to maintain the same health plan they had through their former employer. Most COBRA compliance failures stem from failing to notify employees of their rights. Like ERISA, COBRA applies only to private sector employers.

Family and Medical Leave Act (FMLA)

Passed in 1993, FMLA requires covered employers to provide eligible employees with up to 12 weeks of job-protected, unpaid leave for certain family and medical reasons. Employers must properly notify employees and administer benefits. Managers and supervisors can be held personally liable for noncompliance. To further complicate matters, FMLA often intersects with other federal mandates. FMLA applies to both private and public sector employers.

Staying compliant with health and welfare benefit laws is critical to protecting your business and supporting your employees. By understanding your responsibilities and working with trusted experts, you can better manage your compliance obligations, minimize risks, and keep your business on track. Counter Point can help you stay on track and support your compliance. Schedule an appointment today.

As the workplace continues to evolve, employers must stay proactive in adapting their strategies. From leveraging new technologies to strengthening workplace culture, forward-thinking companies are focused on initiatives that support both business growth and employee satisfaction. Here are five essential priorities every employer should add to their to-do list this year.

Prioritize Employee Experience

Creating a positive and meaningful employee experience (EX) is no longer a luxury—it’s a business necessity. With changing employee expectations and ongoing economic uncertainty, companies that invest in EX are better positioned to attract and retain top talent. A strong EX strategy includes everything from effective onboarding and clear communication to professional growth opportunities and competitive compensation. Many businesses are prioritizing learning and development programs, enhancing benefits packages, and launching engagement initiatives that foster a sense of belonging. By making your team feel valued and supported, you’re not just improving morale, you’re building a foundation for long-term success.

Streamline Management of Workers’ Compensation

Workers’ Compensation insurance is essential for protecting your team and your business, but traditional management methods can be cumbersome and costly. Employers often face upfront deposit requirements, estimated payroll complications, and time-consuming year-end audits. A more efficient solution? Pay-as-You-Go Workers’ Compensation. This approach aligns premium payments with actual payroll data, reducing surprises and freeing up cash flow. It also minimizes administrative work by automatically syncing with payroll systems, ensuring accuracy and compliance. Streamlining this process gives employers more time to focus on growing their business rather than insurance paperwork.

Embrace Self-Service for HR Processes

Today’s employees want autonomy and convenience—and self-service HR tools deliver both. Employees can view pay stubs, update personal information, request time off, and more without having to go through HR for every task. Employers benefit from increased efficiency and fewer administrative burdens, while employees gain quick, around-the-clock access to the information they need. Automated workflows ensure that tasks like onboarding, performance reviews, and time tracking are completed consistently and accurately. Embracing self-service is a win-win: it streamlines operations and boosts employee satisfaction.

Prepare for AI

Artificial intelligence is quickly becoming a cornerstone of modern business operations. Employers are beginning to explore how AI can reduce manual workload, improve accuracy, and speed up decision-making. Whether it’s using AI to automate repetitive tasks in payroll and HR or analyzing large datasets to forecast hiring needs, the technology offers real-time solutions to everyday challenges. Preparing for AI doesn’t mean replacing people, it means enhancing their capabilities. Now is the time to identify areas where AI can be integrated and begin training staff to use AI-powered tools responsibly and effectively.

Focus on Security

Cybersecurity threats are on the rise, and businesses of all sizes are targets. From phishing scams to data breaches, the risk to personal information (PI) is real and employers have a responsibility to protect it. Strengthening your internal policies and investing in secure technologies are important first steps. But just as critical is educating your team. Providing cybersecurity training, encouraging a culture of vigilance, and making it easy for employees to report suspicious activity can significantly reduce your risk. 

By adding these five initiatives to your to-do list, you’re not only protecting your business but also empowering your people. Ready to get started? Counter Point has solutions that can help you tackle these priorities. Reach out to our team today!

While an employee handbook is not legally required by federal or state law, it is essential for any business. More than a simple document, the employee handbook establishes expectations and protects both employees and the company. Here’s why having one matters.

Acts as a Key Communication Tool

An employee handbook is the “rulebook” for your workplace, explaining company policies and procedures. This resource serves as a direct line of communication between employer and employee, clearly defining expectations and detailing how the employee-employer relationship functions. This clarity is invaluable, particularly as your company grows.

Sets Clear Expectations for New Hires

For those new to the company, the employee handbook is a vital part of onboarding. Employees appreciate a document that answers common questions about company culture, benefits, and operational standards. Receiving this on day one helps them feel prepared and welcome, providing an organized resource they can rely on as they transition into their roles.

Provides Legal Protection for the Business

A handbook offers a layer of legal protection for your business. When employment-related disputes arise, a documented handbook becomes a vital reference, demonstrating that company policies are applied fairly and consistently. This can protect against claims, particularly in areas like harassment, discrimination, or termination. Having a comprehensive, well-maintained handbook helps ensure that your business operates within legal standards, promoting a safe and compliant workplace for everyone.

An Employee Handbook Boosts Morale 

Clearly outlining company policies in an employee handbook reduces misunderstandings and promotes fairness. With consistent application of rules, employees know what is expected of them, fostering trust in management. This clarity enhances morale and boosts productivity, creating better employee engagement overall.

Saves Time and Increases Efficiency

A detailed employee handbook serves as a go-to resource for essential company information, providing answers to frequently asked questions. The handbook reduces the need for employees to interrupt managers with basic inquiries. This accessibility encourages self-sufficiency, allowing employees to find answers quickly and independently. As a result, productivity increases, management can focus on higher-priority tasks, and daily operations run more smoothly.

What to Include in Your Employee Handbook

At a minimum, the employee handbook should cover:

• General standards of conduct
• Compensation and benefits
• Attendance guidelines
• Performance evaluation process
• Leave and time-off policies
• Health and safety protocols

A compelling handbook is concise, well-written, and clearly communicates what the company culture is like. Keeping it up-to-date with employment laws and company policies ensures a well-informed, smooth-running workplace.

Counter Point can assist with the development of a new handbook, as well as help you update an existing one. Reach out to us today to learn more.

As we welcome 2025, several key workplace trends are poised to reshape how businesses operate and manage talent. From expanding talent pools to the growing role of AI collaboration in daily tasks, here are five trends to keep an eye on in the new year.

1. Remote Work Will Expand Talent Opportunities

The way we work is becoming increasingly flexible, thanks to technological advancements. Businesses can now hire talent from virtually anywhere, not just their local area. This shift to remote work opens doors to a broader pool of skilled candidates, allowing organizations to benefit from better job-worker fit, improved work-life balance, reduced turnover, and potential savings on labor costs, ultimately making companies more competitive and adaptable in today’s fast-changing job market.

2. AI Collaboration Will Reshape Workplaces

Work is changing as AI moves from being just a tool to becoming a teammate. In today’s workplace, employees and AI systems are working together, sharing tasks to get things done. AI can handle cognitive tasks, while robots take care of physical ones. For this partnership to succeed, businesses need to adapt. HR teams should be trained to manage AI responsibly, job roles should be updated to ensure smooth collaboration, and systems must be created to track AI’s role and monitor its impact on decision-making.

3. Pay Transparency Will Continue to Impact Business

The wage gap remains a significant issue, driving growing support for pay transparency. More states are introducing or will soon introduce laws requiring businesses to disclose pay ranges, and this trend is expected to keep growing. To stay ahead, companies should regularly assess and ensure that their salaries are fair and aligned with their pay strategy. Establishing a solid pay framework, updating salary ranges, and conducting salary analyses—either internally or with outside help—can help maintain fairness. Clear communication about updated pay practices is also crucial to ensure transparency with employees.

4. More Gig Workers Will Transition to Traditional Jobs

Due to economic pressures and shifts in healthcare access, many gig workers may start seeking full-time, traditional jobs. This creates an opportunity for businesses to tap into a pool of skilled, self-driven workers. However, companies will need to meet these workers’ expectations for flexibility and independence. This could lead to greater demand for remote or hybrid work options, which may complicate company policies. To attract this group, businesses should improve benefits and create more flexible work options, while adjusting hiring strategies to better connect with this changing workforce.

5. Data-Driven Decision-Making Will Impact HR

Data-driven decision-making will transform how organizations manage their workforce. By using analytics, HR teams can make more informed decisions on recruitment, employee performance, and retention. Tracking key metrics allows businesses to identify trends, spot potential issues early, and refine HR processes. This data-centric approach helps organizations create strategies that boost productivity, enhance employee engagement, and improve overall business performance.

Counter Point is here to support your unique business goals, helping you stay ahead of these changes and thrive in the dynamic work environment of 2025. Schedule a call to learn more.

Issues with cash flow often make it challenging for small businesses to meet payroll demands. In fact, according to a recent study, 32% of small business owners have paid their employees late due to cash flow problems. Payroll financing, also known as payroll funding, has become essential to solve for payroll shortfalls. Payroll financing helps small business owners maintain their workforce without the worry of losing valuable team members.

Payroll financing offers immediate access to funds, ensuring businesses can meet payroll obligations even when cash flow is tight. This is particularly valuable for businesses that need to pay employees before receiving customer payments. For example, if a business offers 30- or 60-day payment terms on invoices, there may be a gap in cash flow when it’s time to run payroll. Payroll funding bridges this gap by providing a cash advance to cover employee salaries, ensuring payroll runs smoothly while awaiting customer payments. This support can make all the difference in keeping business steady and the team secure.

If you are considering payroll financing, here are 5 benefits to explore:

1. Ensure Consistent Cash Flow

Payroll financing takes the uncertainty out of cash flow by ensuring funds are available to meet payroll obligations each week, eliminating stressful delays in paying employees. Payroll financing provides peace of mind that payroll will be met, so business leaders can focus on the business.

2. Support Business Growth

With payroll financing, businesses can confidently expand into new markets and increase hiring without worrying about the immediate cash flow impact. This reliable access to capital enables businesses to pursue new opportunities they might otherwise have to pass up due to cash flow constraints.

3. Maintain a Debt-Free Balance Sheet

Unlike traditional bank loans, payroll financing is not recorded as debt on a balance sheet. It provides the necessary cash without increasing liabilities, allowing businesses to finance growth without burdening the business with debt. 

4. Enable Timely Bill Payments

By removing the wait for customer payments, payroll financing helps ensure that bills can be paid on time. This consistent cash flow can even make it possible to create a rainy-day fund, adding an extra layer of financial stability.

5. Facilitate Business Investment

With access to steady working capital, payroll financing enables businesses to reinvest in their growth. Whether it’s upgrading technology, enhancing tools, or implementing efficiencies, payroll financing supports the business in staying competitive and efficient as it grows.

When it comes to navigating payroll demands, payroll financing offers a viable solution, while providing the flexibility needed to support growth and stability. By eliminating the stress associated with cash flow gaps, businesses can focus on their core operations and seize new opportunities without the burden of additional debt. 

If you think payroll financing might benefit your company, we have access to a partner who can provide a solution. Schedule a call with us today to learn more. Your business’s financial health and growth depend on it!

As the end of the year approaches, it’s time for employers to distribute W-2 and 1099 forms, marking an important reminder to review worker classification. Properly categorizing workers is crucial to compliance, yet misclassification is a mistake employers often make. It is estimated that 10-30% of U.S. employers incorrectly categorize their workers as independent contractors. Misclassification, whether accidental or intentional, can lead to significant penalties, fines, and legal issues.

What are the differences?

A business can hire both employees and independent contractors, but it’s important to understand the significant legal differences between the two, including tax implications, benefits eligibility, and workplace rights.

Employees have income tax, Social Security, and Medicare withheld from their paychecks and may be eligible for protections under employment and labor laws. They receive a W-2 form that serves as a record of compensation, certain benefits, and taxes withheld. 

Independent contractors, on the other hand, have no taxes withheld and are not entitled to the rights and standards provided by employment and labor laws. They receive a 1099 form that shows how much an organization has paid them. It is provided when a business has paid a minimum of $600 for a service and taxes were not withheld.  

What should I look for?

Determining the correct classification can be challenging. There are several factors to consider. Here is a breakdown of what they are:

Employees (whether full-time, part-time, temporary, or seasonal) 

• Commit to specific hours, a designated place of work, and how the work is done
• Are hired for an indefinite period of time
• Typically work for one employer
• Get paid on an hourly or salaried basis
• Receive company benefits, such as health insurance and paid time off
• Are protected by the Fair Labor Standards Act (FLSA) for overtime, wages, and other employment protections
• Use company-provided tools and resources
• May be trained

Independent contractors (often referred to as consultants, gig workers, or freelancers) 

• Perform a specific job within a certain amount of time 
• Perform work for multiple companies 
• Provide their own tools and resources 
• Hired for their expertise  
• Control their own method of work 
• Do not receive employment benefits or overtime 
• Pay their own taxes 
• Receive payment per project or a flat fee

Are you confident in the classification of your employees? If not, Counter Point can help. Making the determination can be tricky and non-compliance can be costly. We can help your organization navigate compliance so you can focus on more strategic tasks.