Last week, the Supreme Court upheld a significant provision of Obamacare. The Supreme Court confirmed that health insurance tax subsidies will continue to be available in both the state and federally-run Health Insurance Marketplaces. This decision is a huge win for small business owners and employees across the country. What was the case all about and why does it matter to small businesses?

Here are three key facts about Supreme Court decision to quickly understand how the ruling impacts you, your business, and your employees.

1. Supreme Court Says Health Insurance Subsidies Stay

The central issue in the case (King v Burwell) was whether the IRS was allowed to extend health insurance tax subsidies to individual health insurance coverage purchased through the 30-plus federally-run exchanges at Healthcare.gov.

The petitioners (King) argued that the text of President Obama’s Affordable Care Act (ACA) only allows for subsidies on state-run exchanges, and that the regulations providing for subsidies on the federally-run exchanges exceeded the authority Congress granted to it.

In response, the federal government (Burwell) argued that the ACA intended for subsidies to be paid in all exchanges – regardless if they are operated by the state or federal government.

Last Thursday, the Supreme Court ruled 6-3 in favor of Burwell. The ruling confirms subsidies will continue to be available through the Health Insurance Marketplaces in all 50 states.

2. Health Insurance Subsidies Provide Significant Savings

The health insurance subsidies provide significant savings to small business owners and employees. In 2014, 87 percent of people who shopped on healthcare.gov were eligible for discounts, paying an average of only $82 a month for health insurance.

Most small business employees earn incomes that make them eligible for subsidies (less than $47,000 for an individual in 2015 or $97,000 for a family of four). In fact, most small business employees will pay less for individual coverage than they would for similar insurance coverage through work.

3. Small Businesses Shifting to Individual Health Insurance

So, what does this have to do with your small business? Small businesses need affordable healthcare options, but most cannot afford traditional coverage for employees. As a result, savvy small business owners are pairing individual health insurance with a reimbursement plan. This alternative model of health benefits is sometimes called “defined contribution” health benefits.

With the health insurance subsidies here to stay, experts predict that small businesses will continue to shift employees to the individual market.

As Rick Lindquist, president of Zane Benefits writes, “Small business owners, who are most affected by increasing premiums, now have the certainty needed to help transition themselves and employees to the individual market which we expect to increase to more than 100 million by 2025. We expect small businesses to continue to offer health benefits to employees in the form of monthly allowances.”

Conclusion

With the health insurance subsidies here to stay, small businesses have an opportunity to save money on health insurance. With the majority of small business employees qualifying for subsidies, small business owners can pair a defined contribution health benefits program with individual health insurance for an affordable healthcare solution.

For more information on how the Affordable Care Act impacts your small business, download Zane Benefits’ complimentary eBook.

Christina Merhar is a guest author and Senior Editor for Zane Benefits, the leader in individual health insurance reimbursement for small businesses. Christina has a passion for helping small employers understand the ins and outs health benefits and Human Resources.

Lawsuits are filed against small businesses far too often—many of which are due to easily avoidable human resources mistakes that aren’t seen until it’s too late. Many of these lawsuits involve current or past employees who believe they have some kind of “dirty laundry” on the business, or think they can turn a minor grievance into a major payday. In fact, almost 75 percent of all litigation against corporations today involves employment disputes.Over 40 percent of these lawsuits are filed against smaller employers (15–100 employees).

Employment-related lawsuits are often even more costly for small businesses than consumer lawsuits. The median compensatory award for employment practices liability insurance cases is $218,000. The precautions you take today can prevent a frivolous—and potentially bankrupting—court case tomorrow. Here are four mistakes that can get you into trouble. 

1. Not Running Background Checks on Employees

A first impression is always important, but it’s hardly the only thing on which a job candidate should be judged. Considering the cost of employment-related lawsuits, your small business should do a thorough background check on prospective hires. This includes criminal background checks, calling past employers, and checking references. Doing so can uncover potential employment issues down the road and help you avoid lawsuits.

2. Not Using Employment Agreements

Written employment agreements, as long as they’re professionally drafted, can eliminate any doubts about what is expected in the employee/employer relationship. For example, prospective employees will have no misunderstandings about sick days, their working hours, and even personal use of office equipment since these items can be clearly spelled out in an agreement.

3. Inadequately Documenting Terminations

Employees will come and go even if you have excellent advancement opportunities and work hard to reduce employee turnover. Terminations are part of running a small business, so you must carefully plan for them. Failure to do so could open the door to potential lawsuits from past employees. Document every termination, including the process, reason, and events that led to it. Documenting the termination of an employee minimizes the risk of future claims brought against your business.

4. Ignoring Relevant Employment Laws

Failure to follow basic, relevant employment laws could be much worse than just a lawsuit. You could face fines and even lose your license. Federal and state employment laws are nothing to ignore; make sure you thoroughly understand and comply with all of them. This can include everything from overtime pay to working hours to vacation time and even discrimination. While a happy employee might not mind you breaking the rules, a terminated or disgruntled employee may report you and file his own lawsuit against you.

Protect Your Small Business

Improving human resources management in your small business is critical in many ways. Adhering to all necessary policies, procedures, and laws enables you to reduce your risk for lawsuits, whether coming from employees or other businesses. Even if a lawsuit occurs, following these steps can reduce their severity and hopefully build enough evidence to dismiss the lawsuit.

MJ Management Solutions helps you put the policies and procedures in place to protect your small business from lawsuits. Schedule a consultation online or call 480.924.6101 to learn more about safeguarding your business from legal troubles today.

This article first appeared at M.J. Management Solutions, Inc.

MJ Management Solutions, Inc., is a human resources consulting firm that provides small businesses with a wide range of virtual and onsite HR solutions to meet their immediate and long-term needs. From ensuring legal compliance to writing customized employee handbooks to conducting sexual harassment training, businesses depend on our expertise and cost-effective human resources services to help them thrive.

Baby Boomers are one of five generations you’re likely to have in your small business—alongside the Traditionalists, Generation X, Generation Y, and Generation Z employees. Catering to all of these generations isn’t easy; it requires you to tailor your policies and management practices to suit the needs of each group. Baby Boomers, who are likely in leadership roles within your company, aren’t retiring just yet. It’s in your best interest to accommodate their needs just as much as the younger generations.

Who Are the Baby Boomers?

Baby Boomers, born between 1946 and 1964, are the largest living generation and most likely dominate the higher-level positions in your small business. Common traits of Baby Boomers include being:

• Work-centric: By and large, they’re workaholics who define themselves by their professional accomplishments. They believe younger generations should pay their dues, and may criticize them for a lack of work ethic and commitment to the company.
• Goal-oriented: Baby Boomers thrive on achievements, are dedicated to the company for which they work, and are extremely focused on getting ahead in their careers. They want to know they’re making a difference and like to take on challenging projects.
• Independent: Baby Boomers are confident and self-reliant. After growing up in an era of reform where they questioned authority systems, they welcome confrontation and don’t shy away from challenging established practices within the company.
• Competitive: Since they equate their self-worth with their position and work accomplishments, competition is high among Baby Boomers. They believe in a hierarchical structure, and may fault younger generations for trends towards workplace flexibility.

Baby Boomers are similar to Traditionalists because they believe in hierarchal structure and rankism, and may have a hard time adjusting to workplace flexibility trends. The idea of change is not easily accepted. If there’s already an established system that appears to be working, you’ll find Baby Boomers very reluctant to change it. They value “face time” and frown upon the “work from anywhere” mentality of younger workers.

Ultimately, your Baby Boomer employees take their careers very seriously. After all, the position they’re in right now is likely the one in which they’ll retire.

What Baby Boomers Expect From Management

Baby Boomers expect respect—not only for their work, but for their personal lives as well. Your Baby Boomer employees also treasure tenure. They expect you to show some level of respect for those who have worked for the company for an extended period of time.

Your Baby Boomers value recognition above all else. When they’re recognized for their contributions to your company, they feel valued and appreciated and will work even harder for your company.

Tips to Manage Baby Boomers

Managing Baby Boomers is similar to Traditionalists in the way that they both put significant value in their jobs. They’re both dedicated to their work and are willing to sacrifice their personal lives to succeed professionally. Tap into the talents of the baby boomers in your small business by:

• Recognizing their professional achievements personally as well as publicly.
• Listening to a Baby Boomer employee’s ideas and suggestions. Show them that you appreciate their individual contribution to the company, embrace their ideas, and implement them if you can.
• Understanding their state of mind. Baby Boomers suffer from a conflict. They struggle to compete as individuals, but also strive to be an integral component of the team. Show your appreciation for their work in both aspects so that they don’t have mixed feelings or feel as though they must sacrifice one or the other to succeed.

Baby Boomer Attributes

• Confidence in tasks
• Emphasize team-building
• Seek collaborative, group decision-making
• Avoid conflict
• Adaptive
• Goal-oriented
• Focus on individual choices and freedom

Since your Baby Boomer employees likely handle most of your higher-level operations—or oversee a majority of your staff—it’s imperative that you manage them effectively. Keeping them happy needs to be a priority, as high turnover of your senior positions will have a detrimental impact on your business.

Learn more about reducing turnover for all generations of your workforce by getting your copy of Practical Tools to Manage Costly Employee Turnover today.

This article first appeared at M.J. Management Solutions, Inc.

MJ Management Solutions, Inc., is a human resources consulting firm that provides small businesses with a wide range of virtual and onsite HR solutions to meet their immediate and long-term needs. From ensuring legal compliance to writing customized employee handbooks to conducting sexual harassment training, businesses depend on our expertise and cost-effective human resources services to help them thrive.