WORKERS COMPENSATION | PEOs
A very good article on the history of the PEO industry and its ability to provide workers’ compensation to American small business and their employees through the legal doctrine of co-employment. Really nails it.
By Christopher Boggs of the Insurance Journal
One of the more important take-aways from this article is it provides further clarity to the process of staffing/leasing, which involves a transfer of labor by a staffing company to a client employer; where the employee is placed without any employer-employee relationship. Coemployment on the other hand, helps the employer by sharing many of the non-occupational segments of being an employer; such as payroll, reg compliance, HR, major medical and of course workers’ compensation. It allows “Joe the Plumber” to focus on plumbing and not the procurement of insurance as well as the menagerie of federal regulations business must follow such as the Affordable Care Act, FMLA, COBRA, Fair Labor Standards and over fifty others overseen by the Department of Labor.
“PEO contracts are co-employment arrangements whereby the professional employer organization and the client with whom it contracts both retain some right of control over the individual worker or workers collectively. Such relationship is wholly different than a leased employee or the use of a borrowed servant. Leased employees and borrowed servants are under the absolute control of the special employer. “Co-employment vests responsibility and control with both parties to the contract.”
Unfortunately, the issue or staffing versus leasing versus coemployment is confused in states like Florida where PEO statutes have not been properly updated to recognize the differences in these vls. nice work on reinforcing these differences.ery different business mode
For further information on staffing versus coemployment, NCCI.com provides some excellent educational resources on the PEO industry and the nuances of its unique business model.
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The PEO Compass is a friendly convergence of professionals and friends in the PEO industry sharing insights, ideas and intelligence to make us all better.
All writers specialize in Professional Employer Organization (PEO) business services such as Workers Compensation, Mergers & Acquisitions, Data Management, Employment Practices Liability (EPLI), Cyber Liability Insurance, Health Insurance, Occupational Accident Insurance, Business Insurance, Client Company, Casualty Insurance, Disability Insurance and more.