Professional Employer Organization and HR Outsourcing News, Articles and Commentary

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Listing Date	Article Link	Article Review / Excerpt	Reader Comments
8/11/2010	Should You Outsource your HR? Source: Fast Casual	A tax advisor in the restaurant and hospitality industry provides some guidance for business owners about outsourcing their Human Resource tasks by engaging a Professional Employer Organization. One area of outsourcing that is becoming increasingly popular is the human resources administration function, through the use of a professional employer organization, or PEO. Sometimes referred to as an employee leasing company, a PEO enables you to outsource the human resource management functions, including payroll, employee benefits, record keeping, and workers compensation coverage. However, before deciding to outsource that important function, the restaurant owner must fully consider the benefits and risks of such an arrangement.	Post the first comment about: Should You Outsource your HR?
8/7/2010	More Profitable Than Ever Source: Architectural Record	A New York City architecture and engineering firm gets serious about cutting costs and discovers a PEO can provide cost effective solutions for reducing HR and insurance costs. We started by looking at our insurance and benefits," says Carpenter. "As a small firm, we simply didn't have enough people to get good health-insurance rates. We joined a professional employer organization (PEO). It takes care of payroll, benefits, and insurance." One of the advantages for both the firm and employees (who are technically coemployed by the Meltzer/Mandl and ADP) is that they can receive health insurance at far less cost than they could as a small group. Costs for both the employees and the firm, which pays half of the employees' health-insurance costs, have gone down by half. "Our employees are able to get much better insurance than we could offer them." The PEO also carries the firm's workers' compensation insurance, which in the past had been a major expense.	Post the first comment about: More Profitable Than Ever
1/28/2010	State of Ohio moves forward with PEO Legislation Source: State of Ohio	The State of Ohio has moved forward to consider legislation regarding the operation of Professional Employer Organizations operating in Ohio. Included in the bill are provisions for PEOs to be the employer of record for Unemployment Insurance and to use subaccounts for client level tracking. Also included were provisions for benefit plan sponsorships and clarification of workers' compensation classifications. (1) A professional employer organization shall not be liable for the acts, errors, and omissions of a client employer or a shared employee when those acts, errors, and omissions occur under the direction and control of the client employer. (2) A client employer shall not be liable for the acts, errors, and omissions of a professional employer organization or a shared employee when those acts, errors, and omissions occur under the direction and control of the professional employer organization. (D) Nothing in divisions (B) and (C) of this section shall be construed to limit any liability or obligation specifically agreed to in the professional employer organization agreement.	Post the first comment about: State of Ohio moves forward with PEO Legislation
12/28/2009	Florida moves to amend UI reporting for Employee Leasing Companies Source: State Of Florida	The State of Florida Senate bill S1062 will require employee leasing companies and Professional Employer Organizations to report employment related data on their clients to the Labor Market Statistics Center within the Agency for Workforce Innovation on a quarterly basis. The motivation for the collection of this information is more accurate information about the employment in various industries and a better understanding of the impacts on the state unemployment insurance compensation funding contributions. "Employee leasing company" means an employing unit that has a valid and active license under chapter 468 and that maintains the records required by s. 443.171(5) and, in addition, is responsible for producing quarterly reports concerning the clients of the employee leasing company and the internal staff of the employee leasing company.	Post the first comment about: Florida moves to amend UI reporting for Employee Leasing Companies
11/3/2009	North Carolina Work Comp Premiums to drop 9.6% Source: Charlotte Business Journal	The State of North Carolina has negotiated a deal with the NC rate bureau that will lower overall work comp premiums for NC companies by $100 million.	Post the first comment about: North Carolina Work Comp Premiums to drop 9.6%
10/29/2009	Alphastaff Acquires Selective HR Solutions Source: PR Inside	Selective HR Solutions of Sarasota, Florida has been acquired by Alphastaff Inc of Ft. Lauderdale, Florida. Selective HR Solutions has been part of Selective Insurance with Headquarters on Branchville, New Jersey. According to the press release an estimated 20K worksite employees of Selective HR will be affected by the acquisition and the number of client companies affected was not disclosed. Selective HR has been marketed through their network of Selective insurance agents and the acquisition is being billed as a way for Alphastaff to expand their agent network as well as increase their client count. Alphastaff has committed to maintaining Selective HR's pricing with the affected clients, however the transition planning for clients to move from Selective HR's payroll and PEO platforms to Alphastaff was not disclosed. Starkman noted that a key factor in the deal was the vast potential to increase sales by offering AlphaStaff’s robust product and commission structure to Selective Insurance’s over 900 agents. AlphaStaff will be the only PEO partnering with the insurance subsidiaries of Selective Insurance Group, Inc. for workers compensation insurance pursuant to the terms of the agreement.	Post the first comment about: Alphastaff Acquires Selective HR Solutions
9/29/2009	Employee Leasing Rules Eased in New Hampshire Source: New Hampshire Business Review	New law allows PEO Client Service Agreements to specify which party is responsbile for violations of state labor laws. New Hampshire PEO clients should check their CSA for definition of liability. The new law also allows leasing companies to get two workers' compensation carriers, which should give them more flexibility in which occupations to place their workers. The bill does require leasing companies to file audited financial statements with the state.	Post the first comment about: Employee Leasing Rules Eased in New Hampshire
7/2/2009	Arizona Senate to review workers' compensation coverage options for PEOs and PEO clients. Source: State of Arizona	Already passed by the Arizona house, HB 2087 allows PEOs to offer either master policy coverage or individual policies to PEO clients. Insurers will be required to report loss experience at the client level. If a professional employer agreement does not provide for the professional employer organization to purchase workers' compensation for covered employees, the client is responsible to purchase a client based policy for all employees, including the covered employees.If the professional employer agreement provides for the professional employer organization to purchase the workers’ compensation for covered employees pursuant to section 23-562, the professional employer organization shall fulfill the responsibility through an individual policy, a master policy or multiple coordinated policies obtained from a carrier or carriers licensed to do business in this state.	Post the first comment about: Arizona Senate to review workers' compensation coverage options for PEOs and PEO clients.
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.	Latest Comment: - 6/9/2009 What about client names? Read All 1 Comments about: Florida puts new reporting requirements on Professional Employer Organizations.
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.	Latest Comment: - 6/11/2009 PEO Legislation Read All 1 Comments about: State of Nevada approves PEO legislation
5/6/2009	North Carolina Senate moves to amend PEO regulations Source: State of North Carolina	The North Carolina Senate has approved an amendment to the state regulations for PEOs to be licensed in the state. The act - Senate Bill S1029 stipulates that all PEOs licensed prior to October 1, 2008 must post a $100,000 surety bond. PEOs licensed after this date must post a bond equal to five percent of the prior years total sages, benefits, work comp premiums and UI contributions up to a max $500,000.	Post the first comment about: North Carolina Senate moves to amend PEO regulations
4/28/2009	PEOs Ease Human Resource Concerns for Small Business Source: Nebraska Cattleman	Nebraska feedlot owners and managers discover the advantages of using a PEO. In the case of the feedlot, the frequency and severity of workmen’s comp issues is much higher than in urban companies, as feedlot cowboys grapple with getting potloads of finished cattle into loading chutes, and ranch cowboys tangle with disagreeable cows at weaning time. Accordingly, aside from HR services, ag-related PEOs provide guidance for improving workplace safety and managing workers’ compensation claims.	Post the first comment about: PEOs Ease Human Resource Concerns for Small Business
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.	Latest Comment: - 4/20/2009 NH law Read All 1 Comments about: New Hampshire Employee Leasing Law May Change
4/11/2009	Outsourcing still effective in saving business funds Source: Wisconsin Post-Crescent	New Wisconsin law makes HR outsourcing with a PEO more viable. Not only do PEOs save businesses money and tackle HR matters, they can provide additional savings not accessible to all businesses. Because PEOs provide services to many companies, they can take advantage of economies of scale by combining all of their "employees" to obtain cheaper group rates for life, disability, health, unemployment or workers' compensation insurance and other benefits.	Post the first comment about: Outsourcing still effective in saving business funds
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.	Latest Comment: - 2/17/2009 Just great - not Read All 1 Comments about: Workers' Comp Rates to Rise in Florida
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.	Latest Comment: - 1/27/2009 Full employment act for lawyer Read All 1 Comments about: Making Ledbetter Better, or at Least Less Bad
1/9/2009	State of Colorado moves forward with Employee Leasing Legislation Source: State of Colorado	The Colorado department of Labor and Employment moves to implement PEO and employee leasing regulations for the first quarter of 2009. Each employee leasing company shall pay wages and collect, report, and pay all payroll-related taxes from its own accounts for all covered employees. each employee leasing company shall pay unemployment compensation insurance taxes and provide, maintain, and secure all records and documents required of work-site employers under the unemployment insurance laws of this state for covered employees. For unemployment reporting purposes, each employee leasing company is the only employing unit for covered employees and shall have the responsibility for unemployment compensation insurance as required of an employer pursuant to the "Colorado employment security act", articles 70 to 82 of this title.	Post the first comment about: State of Colorado moves forward with Employee Leasing Legislation
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.	Latest Comment: - 11/24/2008 Related Link Read All 2 Comments about: Florida - NCCI Proposes 18.6% Workers Comp Rate Hike
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.	Latest Comment: - 11/19/2008 Is this Good or Bad News? Read All 1 Comments about: California State Fund files for 8.9% workers’ comp increase
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.	Latest Comment: - 11/14/2008 What about product pricing? Read All 1 Comments about: Administaff Announces Results of Business Survey and Compensation Data
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.	Latest Comment: - 10/30/2008 Read All 2 Comments about: Agencies can offer power in numbers
9/2/2008	Payroll Issues - Knowing when to ask for help Source: Nevada Business Journal	Article reviews the ever-changing complexities of doing payroll correctly and maintaining legislative compliance. Similarly, more companies are outsourcing to professional employer organizations (PEOs), which provide payroll, workers compensation, human resources and employee benefits administration. However, unlike a BPO, PEOs assume employer risks for their clients via co-employment. The PEO becomes the employer of record for tax and insurance purposes. This industry has evolved to where you can go from being the employer into a PEO relationship and not ever have to worry about or know these rules because the PEO handles it as a co-employer.	Post the first comment about: Payroll Issues - Knowing when to ask for help
7/21/2008	Cutting the risk to Workers and the bottom line Source: NJ Biz Journal	Article discusses the cost to employers for work related injuries and reviews OSHA tool that calculates the cost of additional sales needed to make up for impact to workers' compensation costs. The average direct cost of a workers' compensation claim is between $5,000 and $7,000 among the clients of Gevity HR Inc a Bradenton Florida based Professional Employer Organization with and office in Edison, according to Chris Davis the firm's vice president of finance insurance. Most injuries occur when employees are doing manual labor such as lifting heavy objects.	Post the first comment about: Cutting the risk to Workers and the bottom line
5/28/2008	State of Colorado passes PEO and Employee Leasing Legislation Source: State of Colorado	Colorado passes legislation that clarifies the rights and responsibilities of companies when hiring a professional employer organization. PEO and employee leasing arrangements have recognized legal status in Colorado. EACH EMPLOYEE LEASING COMPANY SHALL PAY WAGES AND COLLECT, REPORT, AND PAY ALL PAYROLL-RELATED TAXES FROM ITS OWN ACCOUNTS FOR ALL COVERED EMPLOYEES. EACH EMPLOYEE LEASING COMPANY SHALL PAY UNEMPLOYMENT COMPENSATION INSURANCE TAXES AND PROVIDE, MAINTAIN, AND SECURE ALL RECORDS AND DOCUMENTS REQUIRED OF WORK-SITE EMPLOYERS UNDER THE UNEMPLOYMENT INSURANCE LAWS OF THIS STATE FOR COVERED EMPLOYEES. FOR UNEMPLOYMENT REPORTING PURPOSES, EACH EMPLOYEE LEASING COMPANY IS THE ONLY EMPLOYING UNIT FOR COVERED EMPLOYEES AND SHALL HAVE the responsibility for unemployment compensation insurance as required of an employer pursuant to the "Colorado Employment Security Act", articles 70 to 82 of this title.	Post the first comment about: State of Colorado passes PEO and Employee Leasing Legislation
5/15/2008	The Risk of Using Independent Contractors Source: New York Law Journal	Misclassification penalties of independent contractors get more attention from the IRS and state agencies. The use of a responsible employee leasing organization is a practical and viable alternative that allows 1099ers to continue to provide services to the company, yet it substantially minimizes a company's exposure to liability under the tax, employee benefits and labor laws. This alternative can dramatically reduce a company's risk of liability and substantially diminish the likelihood of a lawsuit or an audit by a governmental agency. Unlike payrolling companies, an employee leasing organization is a third-party employer. Some or all of the company's 1099ers (as well as its long-term temps, project employees, per diems and consultants) can be hired as employees of the leasing organization, which withholds taxes; makes Social Security, Medicare and unemployment payments; pays Workers' Compensation premiums; and may also provide basic medical and dental benefits and offer participation in a 401(k) plan maintained by the leasing organization.	Post the first comment about: The Risk of Using Independent Contractors
2/12/2008	Gevity Changes Leadership Source: Workforce Management	Article discusses changes in leadership and strategy at Gevity and their return to core PEO services. Based in Bradenton, Florida, Gevity started out as a professional employer organization aimed at small businesses. A PEO serves as a co-employer of the client companies’ employees and takes over a wide range of human resources functions, including payroll, health insurance and workers’ compensation. The company sought to expand into the HR outsourcing business, in which clients could outsource certain services like payroll to Gevity without a co-employment relationship and without having Gevity provide health and workers’ compensation coverage. The HR outsourcing business was seen as a way for Gevity to attract larger businesses that were able to contract for health and workers’ compensation coverage on their own but still sought limited outsourcing of things like payroll as a cost-saving measure.	Post the first comment about: Gevity Changes Leadership
1/1/2008	Hawaii Proposes PEO legislation Source: Hawaii House of Representatives	Hawaii proposes bill that would require client based workers' compensation policies for PEOs operating in Hawaii. NAPEO is working to amend the bill to more closely follow the NAPEO model act. Every professional employment organization that maintains or will be maintaining workers' compensation coverage for assigned employees shall register with the commissioner. An insurer may not issue a workers' compensation insurance policy to a professional employment organization that is not registered, nor enter into an agreement with an unregistered professional employment organization to issue policies to clients of the professional employment organization.	Post the first comment about: Hawaii Proposes PEO legislation
10/31/2007	Cedar Hill - PEO Workers Comp administrator is sold Source: Insurance Newsnet	Cedar Hill a large insurance administator specializing in workers' compensation programs for the PEO industry has been purchased by Arthur J. Gallagher & Co. Cedar Hill Insurance Agency, Inc. is a retail property/casualty insurance program administrator and business process outsourcing firm. They specialize in workers compensation insurance programs for professional employer organizations and temporary service industries throughout the U.S.	Post the first comment about: Cedar Hill - PEO Workers Comp administrator is sold
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.	Latest Comment: - 10/9/2007 PEO's help with health benefit Read All 1 Comments about: HR Liaisons Help Small Companies Compete
9/20/2007	West Virginia Considers PEOs and Work Comp Transition Source: West Virginia Record	As West Virginia moves from a monopolistic to a market driven workers' compensation insurance program, legislation needs to consider hybrid employment structures like Professional Employer Organizations. Article discusses actions by NAPEO and others to ensure PEO workers comp plans are effective solutions for West Virginia employers. He said legislators did not act on PEO proposals last year because they felt they needed more information and time. "We made some progress but they wanted to make sure we got it right," Tucker said. "We make workers comp a good line for insurers to write. It is imperative that we have a good understanding of what risk and exposure each client has. "Clark praised PEOs as having "exceptionally good" risk managers. "A PEO can assist in ensuring that worksite employees are provided with a worksite that is safe, conducive to productivity and operated in compliance with employment laws and regulations," the website states.	Post the first comment about: West Virginia Considers PEOs and Work Comp Transition
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.	Latest Comment: - 8/30/2007 Read All 1 Comments about: Workers' Comp falls for fifth time
6/14/2007	Florida - PEO client based Workers' compensation policies. Source: NAPEO	Florida reviews client based WC policies. The national advocacy group for the PEO industry - NAPEO has indicated it is urging the Florida Board of Employee Leasing Companies (BELC) to challenge the legislature's Joint Administrative Procedures Committee's (JAPC) interpretation that current Florida statute does not permit PEO clients to have individual workers' compensation policies. NAPEO is meeting with key legislative leaders and agency staff to defend the PEO industry's position regarding the permissibility of PEO client-based policies.	Post the first comment about: Florida - PEO client based Workers' compensation policies.
4/16/2007	ClearPoint and HRE file letter of intent Source: Yahoo! Finance	Publicly traded ClearPoint Business Resources (CPBR) is seeking to acuire some of the assets (clients?) of The Human Resources Corporation (HRE) which includes National Med-Staff, AEM and Paradyme Inc. This article relays that the Work Comp carrier - SUNZ insurance intents to continue the workers' compensation insurance coverage. The closing of the acquisition is contingent upon ClearPoint satisfactorily completing, in its sole discretion, its financial, legal, operational and customer due diligence. HRE has agreed to negotiate solely with ClearPoint and its affiliates for a 45 day exclusivity period.	Post the first comment about: ClearPoint and HRE file letter of intent
3/15/2007	National Association of Insurance Commissioners Model Rule for PEO Workers’ Compensation. Source: NCOIL	NCOIL proposes a national model for regulators and PEO. All PEOs need to be aware of this draft (model rule) and the way it affects PEO workers' compensation policies. The purpose of this Act is to require the registration of professional employer organizations (PEOs) and to regulate the use of experience ratings in PEO relationships. [Drafting Note: This model is specifically designed to address the registration and use of experience ratings by PEOs in workers’ compensation insurance. Some states may wish to address additional PEO rights and responsibilities, or require PEOs to be licensed.]	Post the first comment about: National Association of Insurance Commissioners Model Rule for PEO Workers’ Compensation.
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.	Latest Comment: - 3/12/2007 Finding Employees Read All 1 Comments about: Arizona considers Work Comp discount for drug testing.
3/9/2007	Workers' compensation insurance reforms in SC Source: TheState.com (SC)	South Carolina experiences a 70% increase in four years. Experts say the work comp system in SC is broken and must be fixed for SC business to be competitive. Between 2001 and 2005, employer premiums increased by more than $275 million — a 70 percent increase in only four years. Costs are skyrocketing because the system, which mandates all employers with four or more employees must carry workers’ compensation insurance, lacks competition among insurance providers. Why? Despite recent premium increases, insurers are still losing an average of about 25 cents on every premium dollar, giving them a rational incentive to leave South Carolina.	Post the first comment about: Workers' compensation insurance reforms in SC
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.	Latest Comment: - 3/6/2007 Work Comp Risk Read All 1 Comments about: ADP CEO identifies growth goals
2/24/2007	A quiet Florida giant begins to make noise Source: St. Petersburg Times	Growth at FrankCrum (formerly known as Crum Staffing) is taking off. Summary article about the company and its president and CEO, Frank Crum Jr. The company, FrankCrum, is a PEO, or professional employer organization, which means it does human resources work for other companies. Crum, 57, also owns Crum Staffing, a temporary staffing firm; and Frank Winston Crum Insurance, a workers' compensation insurance carrier. Up next: FrankCrum is rolling out a service called Frank Advice. Crum hopes that his 3,000 client companies will use the information, available online and by hotline, to make sure they're following the law when hiring, firing, paying and educating employees.	Post the first comment about: A quiet Florida giant begins to make noise
1/28/2007	Labor and business seek common ground on workers' comp Source: New Your Journal News	New York moves to revise workers' compensation benefits in order to reduce premium costs. New York state has some of the hightest workers' compensation insurance costs in the nation and yet also has some of the lowest benefits for injured workers. The workers' compensation program cost New York businesses $5 billion in 2004, or nearly as much as all the state's business taxes combined, Robert Ward, director of research at the business council, said in a study released last week. That staggering cost comes despite the low benefit payments and even though New Yorkers get hurt on the job 17 percent less often than the national average, he said. The maximum benefit is less than half as much as it is in some states, Ward wrote. "There's obviously a problem when employers are paying Cadillac prices and workers are getting Volkswagen benefits," said Matthew Maguire, a spokesman for the business council.	Post the first comment about: Labor and business seek common ground on workers' comp
1/26/2007	Workers' Comp in Crisis Source: Charleston SC - Channel 2 News	Article descrbes how the lack of prosecution for fraudulent workers' compensation claims has caused South Carolina workers' compensation insurance premiums to increase. This story illistrates another reason business managers need to partner with a PEO who can assist with safety programs and contest questionable claims that drive experience factors and wc expenses high enough to stop business growth. Her business has had only four workers' comp claims in more than 20 years. "Out of those four cases, three were fraudulent. Three of those three cases which were fraudulent were given awards, either by the Workers' Comp Commission or by the insurance companies," she says. In one of those cases, the commission awarded a worker $25,000, even though three doctors testified the worker's condition was normal. The state also has no award standards for cases, which the NFIB says are needed to control costs. June Lennon, a partner at Martin & Lennon CPAs in Greenville, says she works with small business owners all the time who are being hurt by high workers' comp rates and high health insurance rates.	Post the first comment about: Workers' Comp in Crisis
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.	Latest Comment: - 1/29/2007 ESAC is good for PEO but.... Read All 1 Comments about: Best practices back PEO industry certification
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.	Latest Comment: - 1/8/2007 ELS finally found some work co Read All 1 Comments about: Employee Leasing Solutions moves to Guard for Work Comp
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.	Latest Comment: - 1/26/2007 CA W/Comp Read All 1 Comments about: Workers' comp costs likely to fall
11/28/2006	State Fund files for 9% workers' comp premium decrease Source: San Jose Business Journal	California State fund lowers work comp rates. The State Compensation Insurance Fund has filed for an average 9 percent decrease in 2007 workers' compensation insurance rates, officials at the state's largest workers' comp carrier said Monday.	Post the first comment about: State Fund files for 9% workers' comp premium decrease
11/28/2006	Juggle No More Source: Pitney Bowes	Real life stories about companies who have partnered with a PEO. PEOs’ best-known services include payroll, health insurance (the organizations typically represent thousands of employees, so they can negotiate good rates), worker’s compensation, 401(k)s, and other benefit plans. In fact, however, those offerings only scratch the surface. PEOs also can help with management training, policy development, employee handbooks, OSHA compliance, workshops on issues such as sexual harassment and workplace safety, leadership development seminars, headhunting services, guidance for compensation plans and employee evaluations… the list goes on and on. “Most small-businesspeople probably aren’t aware of all the HR consulting services that PEOs offer,” says Monette Galello, vice president of Burlington, Massachusetts PEO Genesis Consolidated Services. “Those services can boost productivity, protect small businesses and their employees from various risks, and help small firms compete with big corporations for employees.”	Post the first comment about: Juggle No More
9/27/2006	Gevity's profit down in third quarter Source: HeraldToday.com	Third quarter results for Gevity (GVHR). In August, the company reported an almost 20 percent drop in its second-quarter net income, the result of a $4.7 million charge needed to cover losses from the liquidation of Hatteras Reinsurance Ltd., a reinsurer that once handled Gevity's workers' compensation claims.	Post the first comment about: Gevity's profit down in third quarter
9/25/2006	Florida Workers' Comp Rates May Decline Source: South Florida Business Journal	Could be good news for Florida based companies. The Florida Office of Insurance Regulation is planning a public hearing on a 13.3 percent proposed workers' compensation insurance rate filed by the National Council on Compensation Insurance. McCarty pointed out in two of the last three NCCI filings, his office ultimately approved rate cuts greater than those advocated by NCCI.	Post the first comment about: Florida Workers' Comp Rates May Decline
9/22/2006	Dalrada Financial Appoints Industry Veteran as Vice President of Operations Source: Yahoo News	California based PEO expands state coverage. Costello comes to Dalrada from All Staffing, Inc., which was acquired by Dalrada earlier this month. She has 11 years experience in the professional employer organization (PEO) industry, overseeing all departments, including human resources, sales, worker's compensation, safety, benefits, payroll, and accounting.	Post the first comment about: Dalrada Financial Appoints Industry Veteran as Vice President of Operations
9/15/2006	Calif. Workers' Comp Rating Bureau Proposes Rate Decrease Source: Insurance Journal	California's Workers' Compensation Insurance Rating Board has proposed a 6.3 percent reduction in the pure premium rate. On Sept. 14, 2006, the WCIRB amended its Aug. 16, 2006 filing to include a proposed 6.3 percent reduction in pure premium rates with respect to new and renewal policies with an anniversary rating date on or after Jan. 1, 2007. In addition to proposing a decrease in pure premium rates, the WCIRB also proposed a decrease in the experience rating eligibility threshold from $16,971 to $16,600.	Post the first comment about: Calif. Workers' Comp Rating Bureau Proposes Rate Decrease
9/15/2006	Administaff Renews Workers' Compensation Program Source: Yahoo News	Administaff renews AIG work comp plan. Under the arrangement, Administaff makes monthly payments to AIG comprised of premium costs and funds to be set aside for payment of future claims. Administaff bears the economic burden for the first $1 million layer of claims per occurrence, while AIG bears the economic burden for all claims in excess of the first $1 million layer. Administaff employs a third-party actuary to assist in the estimation of incurred claim costs.	Post the first comment about: Administaff Renews Workers' Compensation Program