Finding Subs Who Really Work

The recent activities surrounding the Florida House Bill 1305 has forced a lot of attention and thought regarding subcontractors. We continue to monitor the progression of this bill, however one powerful takeaway from this conversation can already be appreciated: the importance of hiring and working with good subcontractors. But what makes a subcontractor “good”?

A good subcontractor is willing to work within reasonable parameters which should always be set out in a written agreement. A sound Subcontractor Agreement should outline important items such as:

  • The Subcontractor’s responsibilities,
  • Terms and conditions of the work to be undertaken,
  • Safety requirements,
  • Indemnity stipulations,
  • Insurance requirements, and
  • Any additional provisions related specifically to the job.

Here is a sample Subcontractor Agreement which speaks to recommended details for each of the above provisions. 

Any company using Subcontractors should have a Subcontractor Management Plan (SMP) in place and should require all subs to adhere to the stipulations outlined in the plan.  A SMP provides guidance for subcontract management activities, including the following:

  • Prequalification and bidding process
  • Insurance considerations
  • Beginning work
  • Work site’s written safety plan
  • Safety training and recordkeeping policies
  • Safety inspections
  • Work-in-progress and post-project reviews

We have included a downloadable copy of our SMP as an example, which includes a detailed and useful safety inspection checklist, among many other important guidelines.

Well documented and verifiable proof of insurance is of upmost importance when dealing with a sub.  Subcontractors should maintain Commercial General Liability, Auto Liability, Umbrella or Excess Liability and Workers’ Compensation.  Of these coverages, Florida House Bill 1305 specifically focus on Workers’ Compensation.  The subcontractor should secure a workers’ compensation insurance policy. The workers’ compensation policy must cover all of the subcontractor’s work and performance and provide coverage for all employees, executive officers, sole proprietors, and partners and members of a limited liability company, in the amounts required by all applicable laws.  In addition, the subcontractor should secure an employers’ liability insurance policy (part II of the standard workers’ compensation policy). This type of coverage covers the damages that become due in case of bodily injury, occupational sickness or disease or death of subcontractor employees that are not covered by the workers’ compensation policy.

The attached Subcontractor Certificate of Insurance Letter is a great, single page Word document which can be used to concisely outline your insurance requirements to a sub.  The document is in Word and can be amended as needed to suit you or your clients’ needs. Work with a sub should never be initiated until the items requested in this letter are received and verified.

We hope you find these documents helpful!  Work smart and stay safe everyone! 

Florida PEO Legislative and Legal Update: April 21st at 2p est.

SAVE THE DATE: Given all of the recent legislative activity in Florida, you will not want to miss the upcoming FAPEO PEO Legislative and Legal Update on 4/21/21 at 2p est. See details and login information below.

On April 21st there will be ten days left of Florida’s legislative session and there remain a lot of unanswered questions. One bill provides SUTA rate relief for all Florida job creators hit with rate increases from social costs from the pandemic. Another bill would shift liability for workers’ compensation fraud from construction contractors to PEOs. You’ll discover which bills have stopped moving forward as well as which ones are likely to become law.  And, what this means for your PEO. 

No registration necessary.  Just show-up on April 21st at 2:00 pm Eastern by clicking: HERE

If you don’t have an electronic device with an internet connection you may access via phone: 

Phone: (929) 205-6099

Meeting ID: 829 5013 3757

Passcode: 738647

Florida PEO Legislative & Legal Update

Wednesday, April 21, 2021

2:00 pm – 4:00 pm Eastern/1:00 pm – 3:00 PM Central

Florida PEO Legislative Briefing

  • David Daniel, Florida PEO Governmental Affairs, Smith, Bryan & Myers 

Legal Issues Impacting Your PEO

  • Michael Miller, FAPEO General Counsel, Fisher & Phillips LLP

Deputy General Counsel Report

  • Torben Madson, FAPEO Deputy General Counsel, The PEO Law Firm

National PEO Legislative & Legal Issues Briefing

  • Nick Kapiotis, General Counsel
  • Michael Kreiter, Senior Director of State Government Affairs, National Association of Professional Employer Organizations

Latest from FAPEO regarding HB 1305

HB 1305 – Workers’ Compensation Insurance for Employee Leasing Companies has been assigned to the House Commerce Committee.  At 4:30 pm this Friday we will find out if the bill will be considered at the House Commerce Committee next Tuesday.  

The time for outreach to members of the committee is NOW.   

Here’s text of the bill so you can see how damaging that language could be to the PEO Industry. 

Like the bill before, the amended bill shifts liability from construction contractors to PEOs for workers compensation fraud.  

Will you support our efforts to kill this bad bill by sending  an email to members of the House Commerce Committee? If this bill moves forward, these are the individuals who will consider this bad proposal.  It’s important to start our outreach now.  

If you know any of these Representatives personally, please let me know.  

Here are some talking points to select from and adapt for this communication:  

·        An employee leasing company covers 100 percent of their employees with workers compensation coverage.

·        What bill proponents call a “gap in coverage” is simply workers compensation fraud in construction (paying under the table) and has been persistent in Florida in the traditional business model as well with subcontractors utilizing an employee leasing company arrangement.

·        Rather than work to address the underlying problem of workers comp fraud, the bill only shifts liability from general contractors to employee leasing companies for workers comp fraud.

·        This bill would only increase workers compensation fraud in construction in Florida.

·        It financially encourages general contractors to turn a blind eye to both the price of a subcontractors work and checking workers for employees of subcontractors who are on their jobsite forwithout  required workers compensation coverage. 

Here are the individuals to contact: 

Representative Webster Barnaby (Orange City)  Webster.Barnaby@myfloridahouse.gov

Representative Dan Daley (Sunrise) Dan.Daley@myfloridahouse.gov

Representative Brad Drake (DeFuniak Springs) rad.drake@myfloridahouse.gov

Representative Joe Geller (Dania Beach) joseph.geller@myfloridahouse.gov

Representative Chris Latvala (Clearwater) Chris.Latvala@myfloridahouse.gov

Representative Randy Maggard (Zephyrhills) randy.maggard@myfloridahouse.gov

Representative Lawrence McClure (Plant City) Lawrence.McClure@myfloridahouse.gov

Representative Angela ‘Angie’ Nixon (Jacksonville) Angie.Nixon@myfloridahouse.gov

Representative Anika Tene Omphroy (Sunrise) Anika.Omphroy@myfloridahouse.gov

Representative Scott Plakon (Longwood) Scott.Plakon@myfloridahouse.gov

Representative Rene Plasencia (Titusville) Rene.Plasencia@myfloridahouse.gov

Representative Anthony Rodriguez (Miami) Anthony.Rodriguez@myfloridahouse.gov

Representative Bob Rommel (Naples) Bob.Rommel@myfloridahouse.gov

Representative Jason Shoaf (Blountstown) jason.shoaf@myfloridahouse.gov

Representative David Silvers (West Palm Beach) David.Silvers@myfloridahouse.gov

Representative Emily Slosberg (Delray Beach) Emily.Slosberg@myfloridahouse.gov

Representative Josie Tomkow (Auburndale) Josie.Tomkow@myfloridahouse.gov

Representative Matt Willhite (Wellington)   Matt.Willhite@myfloridahouse.gov

Thank you for your help. 

To give you a bit of perspective on where this bill is in the Legislative process.  To become law this bill would have to pass House Commerce Committee before reaching the House floor, getting on the agenda and passing the House.  In addition, this bill would need to pass through three committees in the Senate and pass through the Senate floor vote with the exact same language as the House bill.  And, all of this would have to happen by April 30th

We are fighting to kill this bill every step of the way.  Your efforts are a huge help. Thank you!

Bill Attacking PEOs Moves to Commerce Committee

See the latest news from FAPEO regarding HB 1305. Interesting and concerning to note that someone ‘in House leadership pushed to advance this bill by having it removed from the sub-committee’.

HB 1305 – Workers’ Compensation Insurance for Employee Leasing Companies was removed from the House State Administration & Technology Appropriations Subcommittee and assigned directly to the House Commerce Committee today. 

This means someone in House leadership pushed to advance this bill by having it removed from the sub-committee. 

The House Commerce Committee meets today at 4:00 pm, but the agenda deadline has already passed.  The Commerce Committee meeting after today is Tuesday, April 6th with the agenda due at 4:30 pm on Friday.  

We should expect the bill to be on the Commerce Committee agenda 12:30PM – 2:30PM on Tuesday, April 6, 2020. 

Many of the members of the House Commerce Committee already voted on the bill as members of the House Insurance & Banking Subcommittee.  We have begun outreach to members of that committee.  

We will discuss this bill and next steps on our FAPEO Board of Directors call on Wednesday, March 31st at 10:00 am. 

To become law this bill would have to pass House Commerce Committee before reaching the House floor, getting on the agenda and passing the House.  In addition, this bill would need to pass through three committees in the Senate and pass through the Senate floor vote with the exact same language as the House bill.  And, all of this would have to happen by April 30th

We continue to fight this bill at every step to prevent lawmakers from shifting liability increasing the incentive for workers’ compensation fraud in the construction industry.

House Bill 1305: Week in Review

Happy Friday!

Here’s a recap of the recent activity regarding House Bill 1305:

  • The bill now moves to the House State Administration & Technology Appropriations Subcommittee. This hearing could be as early as Thursday, April 1, 2021
  • NAPEO and FAPEO have asked that we all email our state representatives regarding why this bill is bad for the PEO industry

More to come…

Have a great weekend!

Happy Women’s History Month from PEO Compass!!

In addition to the United States, Women’s History Month is celebrated in the UK and Australia. Though declared a formal ‘month’ by Congress in 1987, many have been celebrating the vital role of women dating as far back as March of 1911!

To discover more, visit the National Women’s History Museum or the Women’s History Month website sponsored by the Library of Congress.

For NAPEO members, this Thursday is the next Women in NAPEO (WIN) event of which Libertate is a proud sponsor. Teresa Carroll, President of Oasis, a Paychex Company will discuss the habits and behaviors that are holding women back as outlined in the book How Women Rise by Sally Helgeson and Marshall Goldsmith. For registration information, click here.

Finally, as a woman who has been fortunate enough to be surrounded by intelligent hard-working female role models her entire life (my grandmother being one of them – pictured below), I am so proud of this month! Sharlene Singleton, here’s to you!

NAPEO’s 2021 Virtual Risk Management Workshop March 9-10

NAPEO members we have exciting news! NAPEO’s 2021 Virtual Risk Management Workshop is just around the corner. Don’t miss this opportunity to register for this 2 day event.

NAPEO’s Risk Management Workshop has evolved into the largest gathering of PEO risk management professionals, carriers, brokers, and agents. Nowhere else will you find the PEO industry’s top risk managers, key insurance executives, regulatory experts, and policy makers gathered for such an in depth look at PEOs and workers’ compensation. 

The 2021 workshop will offer relevant, timely and valuable educational programming. Attendees will hear from risk management experts, get tips from leaders in the industry, and be able to take home ideas you can employ back in the office immediately to improve your risk management practices.

NEW for 2021 This year, NAPEO Gives Back will have a presence at the Risk Management Workshop.  NAPEO will host a concert with musical guest and NAPEO service partner Ken Jewel to close out the first night. This concert will benefit, Rocks the Cure, which was founded by Ken and is a non-profit organization that uses entertainment and music to raise money for pediatric cancer research. Rocks the Cure also helps the patients and families who have been affected by this terrible disease. $25 of each registration fee will be directly donated by NAPEO Gives Back to Rocks the Cure.  There will also be opportunities to donate directly during registration and during the event.  

Who Should Attend?

  • PEO risk managers
  • PEO owners
  • PEO senior managers with risk management responsibility
  • Insurance and risk management service providers to the PEO industry

Don’t miss this great event. Click on the below link to register.

https://www.napeo.org/events/events-calendar/rmw

2021 Employee Benefit Trends

Our friends at NAPEO released trends to watch out for as reported by Employee Benefit News; highlights from the full article below.

Increasing Health Insurance Premiums Employers will likely start shopping and looking for more cost manageable healthcare plans as health insurance premiums are trending 54% increases over the past 11 years as reported by the Society for Human Resource Management (SHRM). SHRM also reported, “Employers expect a moderate health plan cost increase next year of 4.4 percent, on average, compared to this year, according to early results…”. The concern here is that this trend of continued increase is outpacing the consumer price index and wage growth.

Telehealth We have seen a large uptick in the push and use of telehealth with the COVID-19 pandemic. 2021 will continue to grow this field of medical care. Telehealth benefits have been able to provide medical coverage for acute, chronic, primary and specialty care.

Personalized Benefits Packages Companies may start offering more non-medical offerings for a more customized employee benefit packages. Packages will start with the basic health insurance and paid time off benefits and expand to include optional add-ons like pet insurance, short-term disability, access to legal services, whole or term life, hospital stay, accident insurance to mention a few.

Mental Health Employers are waking up to the mental health wellness of their employees and how it can be a direct impact o their organizations. Employers are educating themselves on reducing workplace stress. Many benefits package now include behavioral health with both onsite and virtual medical plans.

Not partnered with a PEO? Connect with us and let us know how we can help! Find out more on our website here.