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Professional Employer Organization and HR Outsourcing News, Articles and Commentary

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Listing DateArticle LinkArticle Review / ExcerptReader Comments
8/20/2007 DHS Issues SSN - Final Mismatch Rule

Source: DHS
The Department of Homeland Security issues the Final Mismatch Rule effective 9/14/2007. The Social Security Administration (SSA) delayed the issuance of SSN mismatch letters from 2006 W-2 returns, that now will be released in to employers across the nation. The DHS has indicated that the fines for known violations will be going up by up to 25 percent, and by the end of the 2007, it expects to mandate that federal contractors participate in the E-Verify Program.
DHS Rules for IRS - SSN Non Match letters.
Comment about: DHS Issues SSN - Final Mismatch Rule
Latest Comment: - 8/24/2007
Check out this article in the
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DHS Issues SSN - Final Mismatch Rule
8/9/2007 Labor laws force businesses to outsource HR

Source: Las Vegas Business Press
Las Vegas based business has $1.14M fine levied by the Labor Department Wage and Hour division for improperly recording employee work hours. PEO owner discusses how outsourcing HR tasks with a PEO can prevent these problems.
A PEO eliminates many of the employer responsibilities and liabilities, as well as eliminates non-productive administration functions. It also allows a small business to re-focus on its bottom-line activities, create predictable operating costs, reduce vulnerability to key employee turnover and enhance the perceived value of benefits.
Comment about: Labor laws force businesses to outsource HR
Latest Comment: - 8/24/2007
Not a HR professional
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Labor laws force businesses to outsource HR
5/20/2008 Most Small Business Owners Optimistic

Source: Jacksonville Business Journal
Administaff survey claims that small business owners are optimistic about growth in the coming year.
Nearly 78 percent of owners and managers of small businesses say their companies will meet or surpass growth expectations this year, according to a national survey. The Business Confidence Survey by Administaff found more than 26 percent of employers plan to increase salaries this year, while 50 percent will maintain current wage levels. Sixty-four percent said they expect overtime to remain about the same. The business confidence survey was conducted this month via Administaff Inc.'s database of more than 6,000 small and mid-sized businesses.
Comment about: Most Small Business Owners Optimistic
Latest Comment: - 6/2/2008
New Sales VP
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Most Small Business Owners Optimistic
2/5/2008 Regions Hot Job Growth Doubted

Source: St. Petersburg Times
Article discusses how the growth of Tampa Bay Employee Leasing companies may be skewing local employment growth statistics.
As late as last year, Tampa-St. Petersburg's higher-than-average job growth earned the area honors as Forbes magazine's seventh hottest jobs market in the United States. But the accuracy of the numbers has been called into question. That's because the Tampa Bay area is unusual in being home base for dozens of professional employer organizations. PEOs are employee leasing firms to which companies outsource services like payroll and health benefits.
Comment about: Regions Hot Job Growth Doubted
Latest Comment: - 2/27/2008
Regions Hot Job Growth Doubted
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Regions Hot Job Growth Doubted
1/3/2008 CoAdvantage Holdings completes acquisition of Bradenton professional employer organization

Source: Orlando Sentinel
NELCO sells to Co-Advantage Holdings of Orlando.
Both CoAdvantage and Nelco, which was founded in 1983 and is one of the country's oldest professional employer organizations, have each been major companies in their field, said Milan Yager, spokesman for the National Association of Professional Employer Organizations.
Comment about: CoAdvantage Holdings completes acquisition of Bradenton professional employer organization
Latest Comment: - 1/3/2008
ELS - Employee Leasing Solutio
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CoAdvantage Holdings completes acquisition of Bradenton professional employer organization
1/15/2008 Oasis Outsourcing Inc. acquires two Tampa Florida PEOs

Source: Sarasota Herald Tribune
Professional Employer Plans and Advantage Employer Solutions have been acquired by Oasis Outsourcing of West Palm Beach.
Oasis Outsourcing Holdings Inc., a privately held professional employer organization with an office in Sarasota, said Monday that it has acquired Professional Employer Plans Inc., Advantage Employer Solutions Inc. and related companies, which are headquartered in Tampa.
Comment about: Oasis Outsourcing Inc. acquires two Tampa Florida PEOs
Latest Comment: - 1/18/2008
Oasis buys Professional Employ
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Oasis Outsourcing Inc. acquires two Tampa Florida PEOs
8/30/2007 PEOs Stake Claim to Marketplace

Source: The Business Ledger
Chicago based PEOs and HR experts discuss the lack of awareness about Professional Employer Organizations in their area and the advantages for medium sized businesses.
"Do your homework and do a cost benefit analysis," said Mary Lynn Fayoumi, president and CEO of the Management Association of Illinois in Downers Grove. "Get multiple quotes from PEOs and make sure that you are getting a plan that is designed for your company and not a vanilla form. Kick the tires and make sure you are happy with what you are paying for."
Comment about: PEOs Stake Claim to Marketplace
Latest Comment: - 8/30/2007
Best PEO in Illinois?
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PEOs Stake Claim to Marketplace
1/25/2007 Payroll, benefits, accounting among the outsourced tasks

Source: Kansas.com
More accolades from business owners who have partnered with a PEO.
The past two decades have seen the emergence of businesses providing one or more back-office services, called business process outsourcing. The types of businesses providing such services can range from accounting and financial services firms to human resource consultants and professional employer organizations, or PEOs. A couple of groups said various parts of back-office outsourcing are growing. Research firm the Yankee Group projects that human resources outsourcing will be a $42 billion market by 2008. And data from the National Association of Professional Employer Organizations indicates that their 400 member firms across the country are growing by double digits. Spokesman Mike Flagg said NAPEO's average member saw 16 percent growth in gross revenue in 2005, the most recent data it has available. He said the PEO industry overall totaled $51 billion in gross revenue in 2005.
Comment about: Payroll, benefits, accounting among the outsourced tasks
Latest Comment: - 1/29/2007
PEO Outsourcing in Wichita Kan
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Payroll, benefits, accounting among the outsourced tasks
11/17/2008 Florida - NCCI Proposes 18.6% Workers Comp Rate Hike

Source: Palm Beach Post
Although workers' compensation rates are expected to drop in January 2009, NCCI has proposed to hike rates shortly thereafter beginning in March and another hike later in 2009.
The schedule, a key part of the 2002 workers comp reform, capped attorneys fees that had helped make Florida's rates among the highest in the nation. Since the legislative overhaul, rates have fallen by 60 percent, and Florida is now among the lowest states in terms of workers comp rates. A representative of the Florida Chamber of Commerce said small businesses cannot tolerate an increase, and he charged trial lawyers with getting a "bailout'' as the result of the Supreme Court decision.
Comment about: Florida - NCCI Proposes 18.6% Workers Comp Rate Hike
Latest Comment: - 11/24/2008
Related Link
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Florida - NCCI Proposes 18.6% Workers Comp Rate Hike
2/19/2007 Gevity expands technology through acquisition

Source: Tampa Bay Business Journal
Gevity pays $10M for 75 ASO clients and Ultimate Solutions HR platform.
While the client portfolio of HRAmerica fits the profile of those businesses who could benefit from Gevity's broader comprehensive offering, the key reason for the transaction is to acquire the processes and technology to support our growth," said Erik Vonk, chairman and chief executive officer, in the release.
Comment about: Gevity expands technology through acquisition
Latest Comment: - 2/24/2007
DOL ANd Sexual Harrassment Com
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Gevity expands technology through acquisition
9/14/2008 Agencies can offer power in numbers

Source: Florida Keys Keynoter
Companies in the Florida keys discuss the advantages of co-employment, employee leasing and PEO arrangements.
“It helps me stay more focused on what I do, and that’s construction,” he said. “They keep me more in the field and out from behind a desk. Compared to what I was spending doing payroll myself and paying workman’s compensation, I’m saving at least 30 percent going through them.” A PEO provides outsourcing of payroll, workers’ compensation, human resources and employee benefits administration. It does this by hiring a client company’s employees, and becoming their employer of record. It then leases them back under contract to the original employer. This is known as co-employment, employee leasing or staff leasing.
Comment about: Agencies can offer power in numbers
Latest Comment: - 10/30/2008

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Agencies can offer power in numbers
3/26/2007 State of Washington draft legislation affecting PEOs

Source: State of Washington
Proposed legislation may alter the landscape for PEOs in Washington state.
Comment about: State of Washington draft legislation affecting PEOs
Latest Comment: - 3/26/2007
NAPEO
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State of Washington draft legislation affecting PEOs
4/10/2008 California Flexible Work Week Defeated Despite Support from California Chamber of Commerce

Source: Calfornia Chamber of Commerce
Party line vote kills employer flexibility in California.
Benoit´s bill was sponsored by the California Chamber of Commerce and received a wide array of support from California´s business community, with more than 43 local Chambers signing on as co-sponsors of AB 2127.
Comment about: California Flexible Work Week Defeated Despite Support from California Chamber of Commerce
Latest Comment: - 4/16/2008
Too bad
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California Flexible Work Week Defeated Despite Support from California Chamber of Commerce
4/16/2008 LMC Resources Acquired by TriNet.

Source: Centerdaily.com
Longtime StaffMarket member PEO LMC Resources has been acquired by TriNet of San Leandro California. LMC has primarity served the Colorado PEO marketplace.
The newly combined operation will capitalize on the best of local service joined with TriNet's industry leading employee benefits, technology, and human resource management expertise. Customers will see a seamless transition process as Richard Lang -- the pioneering founder of LMC Resources and a 30-year industry veteran -- and most of his staff are joining the TriNet team as part of a combined group, now positioned as an industry leader in Colorado.
Comment about: LMC Resources Acquired by TriNet.
Latest Comment: - 4/25/2008
Job for the LMC staff
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LMC Resources Acquired by TriNet.
8/28/2007 Workers' Comp falls for fifth time

Source: Daytona Beach Business
Work comp rates may be dropping once again for Florida employers. NCCI is proposing a 16.5 percent rate reduction.
The latest decrease, the fifth in five years, will trim rates to just half the level in 2002, before the Legislature enacted stricter rules for paying benefits to injured workers, according to Insurance Commissioner Kevin McCarty. Costs of claims rose 2.2 percent over the past year, but fewer claims were filed, making a rate reduction possible, he said.
Comment about: Workers
Latest Comment: - 8/30/2007

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Workers' Comp falls for fifth time
9/7/2007 Many Employers Think Applicants Lie on Resumes

Source: The Journal Record
Survey shows that staffing problems start in the hiring process and explores ways problems can be prevented.
For that matter, don’t trust the average worker, either, results from a recent survey by the National Association of Professional Employer Organizations (NAPEO) suggest. The group, which represents companies that do human resource chores for small businesses, found that the majority of the businesses surveyed believe employment applicants are lying to them on their resumes.
Comment about: Many Employers Think Applicants Lie on Resumes
Latest Comment: - 9/13/2007
Employers need to do the same.
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Many Employers Think Applicants Lie on Resumes
9/1/2007 Using PEOs to Handle Human Resources and Assist in Employment Law Compliance

Source: AICPA
Brief discussion about PEOs from the American Institute of Certified Public Accountants. Rudimentary discussion about how to research a PEO.
"We have a PEO because we are competitive, and because of the PEO we stay competitive" says John Maddox CPA.
Comment about: Using PEOs to Handle Human Resources and Assist in Employment Law Compliance
Latest Comment: - 9/18/2007
Making a choice
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Using PEOs to Handle Human Resources and Assist in Employment Law Compliance
8/27/2008 The Upcountry Revolution

Source: Haleakala Times
How small businesses in Hawaii are increasing efficiencies by joining a PEO.
In response to the quiet economy, some businesses are adjusting their hours of operation and staffing, increasing or decreasing as needed, hoping to make it more convenient and appealing for residents to shop locally. Another shift is that businesses are using a PEO (Professional Employer Organization) to run the core functions of a small business such as payroll, insurance, and human resources. Carole Kooy, Maui Chamber of Commerce chair-elect and the owner of KilaKila Professional Employer Services says that in times of economic downturn outsourcing does become an option to alleviate some of the high costs related to owning and operating a business.
Comment about: The Upcountry Revolution
Latest Comment: - 9/30/2008
Health Coverage
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The Upcountry Revolution
12/26/2007 Workplace Trends for 2008

Source: Kansas City Star
Article mentions that employers are gaining HR efficiencies with a PEO.
Similarly, expect more small businesses to look for ways to reduce the cost of benefits administration by turning to professional employer organizations. With PEOs, some businesses take advantage of economies of scale and relieve their human-resources staff of some duties.
Comment about: Workplace Trends for 2008
Latest Comment: - 1/18/2008
Cost of business
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Workplace Trends for 2008
5/5/2007 The Human Resource Network

Source: Hawaii Business
Business owners in Hawaii discover the advantages of HR outsourcing and using a PEO.
The biggest obstacle that the PEO industry has to overcome is the misconception that PEOs handle temporary staffing or employee recruiting. Contributing to the misconception is that PEOs - "professional employer organization" - that handled administrative functions for clients were often called employee leasing companies. Misleading as the term is, "employee leasing" is still sometimes used in the PEO industry.
Comment about: The Human Resource Network
Latest Comment: - 8/24/2007
Federal EEO-1 Reporting
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The Human Resource Network
7/16/2007 PEOs get a boost in Hawaii

Source: Hawaii Reporter
Hawaii resolves general excise tax problems for PEOs.
This year after more than seven years of being debated in the legislature, a measure has passed and been signed into law that recognizes that the amount of reimbursement for wages, salaries, benefits and insurance premiums is really not gross income to the PEO and should not be subject to the general excise tax. HB 317 became Act 225 of the 2007 session.
Comment about: PEOs get a boost in Hawaii
Latest Comment: - 8/24/2007
Pass through costs
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PEOs get a boost in Hawaii
10/1/2007 HR Liaisons Help Small Companies Compete

Source: IN Business Las Vegas
Article about Las Vegas businesses turning to PEOs.
With employee-leasing companies, small businesses can consolidate their workforces to better compete with corporations for employees seeking a lucrative benefits package. Leasing companies also take over the painstaking chores of payroll, hiring and firing, and dealing with risk management issues, such as workers' compensation. The biggest draw to employee leasing companies is the benefit packages — such as health, dental and 401(k) — they offer.
Comment about: HR Liaisons Help Small Companies Compete
Latest Comment: - 10/9/2007
PEO's help with health benefit
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HR Liaisons Help Small Companies Compete
3/12/2007 Arizona considers Work Comp discount for drug testing.

Source: Arizona Star
Drug testing for Arizona workers may allow insurance companies to offer discounts to employers with drug testing programs.
Workers' compensation in Arizona is a no-fault system. Employees injured on the job are entitled to have their medical bills paid and a percentage of their salary, regardless of who caused the mishap. In exchange for guaranteed compensation, the workers give up the right to sue the employer for negligence. Most companies buy insurance coverage, though some larger firms are self-insured. A 1999 state law says that if a company has a drug-testing policy, an injured worker can be denied benefits for failing a drug test or refusing to take one. But two years ago the state Supreme Court ruled that law unconstitutional. The justices said the workers' compensation system — and the no-fault provision — is part of the state constitution and lawmakers are powerless to alter that.
Comment about: Arizona considers Work Comp discount for drug testing.
Latest Comment: - 3/12/2007
Finding Employees
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Arizona considers Work Comp discount for drug testing.
4/4/2007 Cure Your HR Ills

Source: CNN
Article discusses the business advantages of engaging a PEO.
For the business owner PEOs take on the headache of payroll taxes, regulatory compliance, and a gamut of HR issues, from hiring to drafting an employee handbook to mediating conflicts. Although PEOs have been around since the early 1980s, the industry has been growing at 15 to 20 percent annually over the past several years, according to the National Association of Professional Employer Organizations, an industry trade group.
Comment about: Cure Your HR Ills
Latest Comment: - 8/7/2007
PEO Resource
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Cure Your HR Ills
4/17/2007 Better Business Solutions and Ohio based Sequent merge

Source: Birmingham News
Article reviews merger of Better Business Solutions based in Birmingham, Alabama and Sequent Inc. based in Columbus, Ohio. The new company will operate under the name of Better Business Solutions.
The combined firm will handle 7,000 outside employees in 40 states. Such "professional employment firms" take over many personnel and payroll functions for small- and mid-sized companies. They also serve as the legal employer of record, allowing them to negotiate pooled retirement and insurance plans on behalf of the employees they represent. The large pool of workers usually means more options and better rates than small employers can negotiate individually.
Comment about: Better Business Solutions and Ohio based Sequent merge
Latest Comment: - 4/23/2007
Sequent - Are they in Columbus
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Better Business Solutions and Ohio based Sequent merge
5/4/2007 Hewitt Has Growing Pains

Source: Chicago Daily Herald
Article covers the financial underperformance of HR Outsourcing company Hewitt Associates.
Hewitt, founded in 1940, has enjoyed the status of an HR leader for many years. Until 2000 the company typically grew by acquiring relatively small consultancies. Then, following the industry trend toward consolidation of human resources services, Hewitt acquired Exult, a company widely recognized as a “full-spectrum” pioneer and the clear leader in outsourcing, actually operating a client’s HR department rather than merely providing advice.
Comment about: Hewitt Has Growing Pains
Latest Comment: - 5/4/2007
Biting off more than you can c
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Hewitt Has Growing Pains
1/22/2007 Best practices back PEO industry certification

Source: Business Insurance
Information about ESAC and the value for Professional Employer Organizations who participate.
The $51 billion U.S. professional employer organization industry has worked hard to develop independent performance certification and accreditation programs to provide greater assurance to the marketplace, including insurance companies, business clients and regulators. With leadership from the National Assn. of Professional Employer Organizations, the industry developed the PEO Workers Compensation Risk Management Certification Program (IF, March 2005) based on best performance practices determined by insurance carriers.
Comment about: Best practices back PEO industry certification
Latest Comment: - 1/29/2007
ESAC is good for PEO but....
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Best practices back PEO industry certification
2/27/2008 Gevity goes back to basics

Source: Bradenton Herald
Gevity announces plans to focus on core PEO model.
Gevity deviated from its traditional role and found the venture 'disruptive and cash dilutive'
Comment about: Gevity goes back to basics
Latest Comment: - 2/27/2008
Good News
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Gevity goes back to basics
10/1/2008 Administaff Announces Results of Business Survey and Compensation Data

Source: Business Wire
Survey of small and medium sized businesses show more caution for 2009.
The economy was listed by 81.5 percent of business owners as their biggest concern for 2009 versus 45.8 percent last year. More than 60 percent listed controlling costs as a leading concern, compared to 53.3 percent in Nov. 2007. Rising health care costs were another concern for 43.1 percent of respondents, a slight decrease from 44.6 percent in 2007. Retaining their most valued employees ranked fourth by 31.2 percent of those polled, and 28.9 percent of respondents listed hiring the right people.
Comment about: Administaff Announces Results of Business Survey and Compensation Data
Latest Comment: - 11/14/2008
What about product pricing?
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Administaff Announces Results of Business Survey and Compensation Data
11/29/2006 Workers' comp costs likely to fall

Source: Contra Costa Times
California Work Comp reforms are lowering costs for many business owners.
Small businesses are especially heavily affected by the fund's moves. An overwhelming majority of its clients, about 150,000 out of 220,000, are small businesses, Tudor said. Those are the most vulnerable businesses, for whom the workers' compensation payments are a huge burden.
Comment about: Workers
Latest Comment: - 1/26/2007
CA W/Comp
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Workers' comp costs likely to fall
2/14/2008 Entrepreneur.com magazine article about PEOs is misguided

Source: StaffMarket
StaffMarket president Jim Hamilton replies to Entrepreneur.com business advisor.
Most PEOs also offer an ASO product and many ASO offer a PEO product. Whether a PEO or ASO makes more sense for you company depends on your current insurance, HR and administrative service needs. Companies should look at both options depending on their situation.
Comment about: Entrepreneur.com magazine article about PEOs is misguided
Latest Comment: - 7/27/2008
I agree with the article
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Entrepreneur.com magazine article about PEOs is misguided
6/25/2007 Professional Organizations give 'peace of mind'

Source: Kansas City Star
Article talks about the value of PEOs for small and medium sized businesses.
Also, because a PEO aggregates its clients’ total employee numbers, it can get a better deal on health-insurance costs, for example, and can offer more employee benefits than a small business could on its own.
Comment about: Professional Organizations give
Latest Comment: - 8/24/2007
PEO a tremendous help!
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Professional Organizations give 'peace of mind'
1/9/2008 Help your Business Thrive in 2008

Source: American Chronicle
Good thoughts on surviving business cycles and outsourcing non-core activities
Employee leasing is a fast growing opportunity, growing by over 20% per year. It's a way to outsource not only the employee contingent of the business, but generally the organizational aspect of employees. Most employee leasing groups handle all the Human Resources function for the funds expended. The most important part of any outsourcing arrangement is that the group supporting the business must understand the business core competencies, how the business operates, and what are the end results desired. Moreover, the outsourced group must be able to support the core competencies for which it is working with quality and integrity.
Comment about: Help your Business Thrive in 2008
Latest Comment: - 1/10/2008
Good Ideas if we have a downtu
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Help your Business Thrive in 2008
2/19/2007 Small Business Growth Boosts Professional Employer Organizations

Source: NJBIZ
New Jersey PEOs comment on the growth they are experiencing with NJ based businesses.
According to a January report by IDC, a Massachusetts-based market intelligence and data company, small businesses are increasingly turning to human resources outsourcing companies that handle payroll, tax filings and other work-related administrative functions. IDC says 5 percent of small businesses with 50 or fewer employees use PEOs.
Comment about: Small Business Growth Boosts Professional Employer Organizations
Latest Comment: - 4/29/2007
PEO's for temp Staffing Compa
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Small Business Growth Boosts Professional Employer Organizations
3/3/2007 ADP CEO identifies growth goals

Source: Business Week
ADP CEO Gary Butler discusses outsourcing of administrative functions and HR self service as their biggest growth opportunities. CEO discusses the challenges and rewards for offering co-employment and bundled worker's compensation insurance, recruiting and legal advice - services offered by many PEOs.
Our biggest challenge there is not the leads, but doing the proper underwriting. If I'm your co-employer and you're a bad worker's compensation risk and you've got people falling off roofs and running over people with lawnmowers, I don't want you on my worker's comp policy. If you have a tainted health care history, my suppliers of health care are not going to be interested in underwriting you on our health care policy.
Comment about: ADP CEO identifies growth goals
Latest Comment: - 3/6/2007
Work Comp Risk
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ADP CEO identifies growth goals
1/31/2007 PEOs provide human-resource, payroll services

Source: Orlando Sentinel
Business columnist Harry Wessel answers a question from an employee whos' company recently hired a PEO.
Question: The company where I've worked for several years recently signed an agreement with another company to take over all labor-relations activities. An "employee leasing" statement we were given to sign expressly acknowledges this new company, which I've never heard of, as a co-employer. It appears to make me an employee of the new company. The statement even says there will be a 90-day evaluation period, during which I could be dismissed for any reason, and that I could be reassigned to another job at the company's discretion. In addition to having to revert to rookie status, I'm worried that, if I sign, it will affect the benefits I've accrued, as well as unemployment benefits should I need them. Can the company legally do this?
Comment about: PEOs provide human-resource, payroll services
Latest Comment: - 2/9/2007
Decent Advice
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PEOs provide human-resource, payroll services
1/1/2007 Many small firms hand off nonessential work

Source: Rockford Register Star
Companies find alternatives for handling HR paperwork.
But now many small businesses, which make up the overwhelming majority of U.S. employers, are offloading their nonessential tasks to experts to shave costs and concentrate on their profit-making efforts. And the complexity of workplace regulations makes it desirable for many to contract their human-resources duties. For instance, employers with more than 50 workers must provide unpaid leave under the Family Medical Leave Act, and compliance require large amounts of record-keeping.
Comment about: Many small firms hand off nonessential work
Latest Comment: - 8/24/2007
FMLA if I'm with a PEO
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Many small firms hand off nonessential work
1/7/2007 Employee Leasing Solutions moves to Guard for Work Comp

Source: Business Wire
ELS in Bradenton Florida obtains workers' compensation coverage from Guard of Pennsylvania.
Susan Shoval, President of GUARD Insurance Group, announced today its intention to expand into the Florida workers’ compensation market through the development of a strategic relationship with Employee Leasing Solutions (ELS), a Bradenton based PEO.
Comment about: Employee Leasing Solutions moves to Guard for Work Comp
Latest Comment: - 1/8/2007
ELS finally found some work co
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Employee Leasing Solutions moves to Guard for Work Comp
5/23/2008 CoAdvantage Resources Acquires Gevity ASO Clients

Source: StaffMarket
Article about the CoAdvantage - Gevity deal.
Gevity’s foray into the ASO marketplace was the brainchild of former CEO Erik Vonk who departed the company in October 2007. Mr. Vonk led the drive to acquire HRAmerica for $10M in February of 2007. At the time HRAmerica was acquired by Gevity it had 75 clients with 16,000 worksite employees.
Comment about: CoAdvantage Resources Acquires Gevity ASO Clients
Latest Comment: - 5/27/2008

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CoAdvantage Resources Acquires Gevity ASO Clients
11/13/2008 California State Fund files for 8.9% workers’ comp increase

Source: San Francisco Business Times
Since dropping by 63% since 2003, work comp rates in California are now on the rise, with state fund jacking rates up 8.9% for 2009.
Since increases in workers’ compensation premium rates typically hit some lines of business harder than others, the steepest increases are likely to affect businesses in areas such as construction, manufacturing, transportation and retail, which are already struggling due to the rapidly weakening U.S. and California economies.
Comment about: California State Fund files for 8.9% workers’ comp increase
Latest Comment: - 11/19/2008
Is this Good or Bad News?
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California State Fund files for 8.9% workers’ comp increase
11/21/2008 Employers Hurt by Swollen Health Care Costs

Source: Long Island Business News
The drastic rise in the costs for employer for health insurance is fueling demand for Health Savings Accounts or HSAs
Another option is an HSA, in which dollars are allocated to employees, who can roll the accounts over every year and take them with them when they leave. I have a host of clients that uses HRAs, and a host of clients that uses HSAs,” Bradley said. “Some companies prefer HRAs because they are not as cumbersome to set up, and they retain the funds, rather than returning them to employees.” But others favor the HSA for the effect it has on employees. “It encourages them to become better consumers of health care, since they’re spending their own money,” Bradley said. For instance, “if the money is coming out of their own pocket, consumers might ask doctors if they really need all three tests, or if they really need 100 pills instead of 50,” said Lou Basso, president of The Alcott Group, a Farmingdale-based professional employer organization and provider of human resources services.
Comment about: Employers Hurt by Swollen Health Care Costs
Latest Comment: - 11/24/2008
Remember the major medical pla
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Employers Hurt by Swollen Health Care Costs
1/8/2009 State of North Carolina sets PEO bond requirements

Source: State of North Carolina
Renewal application still must meet the $100K bond requirements.
Comment about: State of North Carolina sets PEO bond requirements
Latest Comment: - 5/24/2010
PEO SURETY BOND
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State of North Carolina sets PEO bond requirements
1/22/2009 Making Ledbetter Better, or at Least Less Bad

Source: The Heritage Foundation
The Lilly Ledbetter Fair Pay Act (HR 11-S181) is being pushed through congress. All employers need to understand the ramifications for HR practices and the long term financial exposure of this legislation.
In particular, three words in the legislation that have received little attention would be particularly conducive to this sort of abuse. Rather than focusing on discriminatory pay decisions, the Ledbetter Act would include within the definition of an unlawful employment practice “a discriminatory compensation decision or other practice.” This loose language would allow trial lawyers to channel potentially all discrimination claims, no matter how tenuously related to compensation, through the Ledbetter Act, thereby evading Title VII’s and the Age Discrimination in Employment Act’s (ADEA) limitations periods entirely. In this way, nearly any alleged discrimination could be the subject of claims brought years after the fact—a recipe for abuse.
Comment about: Making Ledbetter Better, or at Least Less Bad
Latest Comment: - 1/27/2009
Full employment act for lawyer
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Making Ledbetter Better, or at Least Less Bad
1/29/2009 Workers' Comp Rates to Rise in Florida

Source: South Florida Business Journal
Florida Workers' Compensation rates will be going up as a result of a recent Florida supreme court ruling that disallows a rate schedule for lawyers.
Florida Insurance Commissioner Kevin McCarty is expected to approve a 6.4 percent increase in Florida's workers' compensation insurance rates on April 1.
Comment about: Workers
Latest Comment: - 2/17/2009
Just great - not
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Workers' Comp Rates to Rise in Florida
2/17/2009 ADP TotalSource Financial Results

Source: Seeking Alpha
ADP Reports 2008 fourth quarter financial results
By segment, Employer Services (ES) revenue grew 6% to $1.64 billion with 3% growth in the U.S. payroll and tax filing business and 10% growth in beyond payroll revenue. Year–to-date client retention declined 0.5 percentage points. The dollar value of new business sales declined 13% for ES and Professional Employer Organization (PEO) Services due to price sensitivity and the increased number of companies going out of business. PEO Services revenue grew 14% to $285.4 million and Dealer Services revenue decreased 1% to $342.7 million.
Comment about: ADP TotalSource Financial Results
Latest Comment: - 2/17/2009
Dollar Value?
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ADP TotalSource Financial Results
4/1/2009 Avoiding Court During a Recession

Source: Risk Management Magazine
Good advice for avoiding lawsuits for unfair employment termination.
According to the Equal Employment Opportunity Commission (EEOC), 2007 had the highest number of incoming private sector discrimination charge filings since 2002, along with the largest annual increase since the early 1990s. All this combined with the expected onslaught of age-bias lawsuits from baby boomers means that risk managers must work harder than ever to avoid employment-related lawsuits during the current recession.
Comment about: Avoiding Court During a Recession
Latest Comment: - 6/19/2009
Termination
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Avoiding Court During a Recession
4/17/2009 New Hampshire Employee Leasing Law May Change

Source: State of New Hampshire
Audit requirements for employee leasing companies in New Hampshire may be improved if senate passed legislation is approved.
An employee leasing company may meet its obligation to provide workers’ compensation insurance coverage for leased employees through 2 carriers, provided that each client company’s leased employees shall be covered by only one carrier and that such coverage shall clearly delineate such client company employees by client company name and federal identification number.
Comment about: New Hampshire Employee Leasing Law May Change
Latest Comment: - 4/20/2009
NH law
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New Hampshire Employee Leasing Law May Change
6/3/2009 State of Nevada approves PEO legislation

Source: State of Nevada
The state of Nevada has approved significant enhancements to PEO legislation. New provisions ensure PEOs have flexibility for providing clients with workers' compensation insurance coverage and ensures uniform financial standards for the PEO industry.
AN ACT relating to employee leasing companies; authorizing the Administrator of the Division of Industrial Relations of the Department of Business and Industry to adopt regulations relating to a third party that may act on behalf of an employee leasing company; providing various means for an employee leasing company and its clients to provide workers’ compensation coverage; requiring employee leasing companies to pay an annual registration fee; requiring employee leasing companies to submit certain audited financial statements; providing the means by which an employee of an employee leasing company may notify a supervisor of an injury for the purposes of industrial insurance; and providing other matters properly relating thereto.
Comment about: State of Nevada approves PEO legislation
Latest Comment: - 6/11/2009
PEO Legislation
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State of Nevada approves PEO legislation
6/5/2009 Florida puts new reporting requirements on Professional Employer Organizations.

Source: State of Florida
Florida passes "Accurate Employment Statistics Enhancement Act" to require PEO and Employee Leasing companies to submit client level detail information to the state government for use in unemployment compensation data analysis. Known as Florida House bill HB641 and Senate bill SB1062.
The bill amends the definition of “employee leasing company” in s. 443.036(18), F.S., to include a statement that requires employee leasing companies to produce quarterly reports concerning their clients and internal staff. The new definition will require employee leasing companies to “produce quarterly reports concerning the clients of the employee leasing company and the internal staff of the employee leasing company.” Quarterly reports will provide AWI with more timely and accurate labor market statistics.
Comment about: Florida puts new reporting requirements on Professional Employer Organizations.
Latest Comment: - 6/9/2009
What about client names?
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Florida puts new reporting requirements on Professional Employer Organizations.
8/8/2009 PEOs: Recession Proof?

Source: Bradenton Herald
Article discusses the business environment for several Florida based PEOs.
“Small business leaders have learned that the best strategy to navigate a turbulent economy is to devote their finite resources to what they do best and outsource the rest,” said Burton M. Goldfield, president and chief executive officer of TriNet. “These products give them a customized HR solution that will boost their productivity and profitability.”
Comment about:  PEOs: Recession Proof?
Latest Comment: - 8/8/2009
Recession and PEOs
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PEOs: Recession Proof?

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