NAPEO: National Association of Professional Employer Organizations

December 2014/
January 2015
A recurring theme this year in PEO Insider® has been the collaborative nature of the PEO business. In this, NAPEO's 30th anniversary year, the magazine has dedicated two regular columns–"#napeo30" and "PEO Spotlight–to the history of both NAPEO and the PEO industry. Their development has progressed hand in hand, as NAPEO has provided a nexus for people in the PEO business to gather, network, and learn from one another. In this last feature of 2014, PEO Insider brings together five up-and-coming industry leaders for a snapshot of the industry yesterday and today, current challenges, and what they see in the future. As always, we have no intention of leaving you out–you get to be the "fly on the wall," listening in as these five PEO professionals talk in-depth about everything from the state of the industry today, present concerns, and the business environment, to emerging issues, growth, and the future of the PEO industry.
   This discussion took place on September 16, 2014, during NAPEO's 2014 Annual Conference & Marketplace in Miami, Florida...

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Agencies Issue New Guidance
Defined Contribution Health Arrangements and Financial Incentives to Encourage Use of Individual Insurance Markets

Seth T. Perretta, Esq. and Malcolm C. Slee, Esq.
Fast on the heels of November's mid-term congressional elections, several federal agencies issued a spate of new guidance regarding the Affordable Care Act (ACA). One of these pieces of guidance is a set of three new frequently asked questions, or FAQs, from the departments of Labor (DOL), Treasury, and Health and Human Services (HHS) addressing the treatment of defined contribution health arrangements under the ACA. This will have significant implications for PEOs and their worksite employers and employees, so it is important that PEOs carefully review and understand the contours of this new round of guidance...
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legal currents
Can Employers Weed Out Medical and Recreational Marijuana?
Rich Meneghello, Esq.
These are certainly high times for marijuana proponents across the country. Close to half the states in the U.S. have some form of medical marijuana law allowing people to acquire and ingest weed legally, provided they have a doctor's permission. Voters in Washington, D.C., Oregon, and Alaska, recently approved recreational pot possession and use by adults, joining Colorado and Washington. What does this mean for PEOs? Basically, if you don't already operate in a state where worksite employees can legally smoke weed, you almost certainly soon will. If you haven't yet encountered a situation in which a worksite employee tests positive for marijuana during a workplace drug screen in a state where he or she can legally ingest pot, it's only a matter of time until you do. So, how should you handle the complicated problem of legal pot in the workplace?...
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10 Things Jaimie Could Do
Clay M. Kelley, PHR
If you have been selling in the PEO business longer than about five minutes, you have likely heard the objection: "That's what I do" or "That's what Jaimie does and we are not going to fire Jaimie."
    Who is Jaimie and What Do You Need to Know? Jaimie is a gender neutral and generic name (used by this author) to identify the person(s) in a prospect's organization who handles the transactional aspects of human resources, workers' compensation, employee benefits administration, and payroll-related activities. Jaimie is likely to be someone in the organization who is trusted by the ownership or management team. Jaimie has been with the organization for some time and likely...

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the inside word
Measuring Success and Starting Anew
Brent R. Tilson
2015 NAPEO Chairperson

With another year coming to a close, it's time for us to reflect on our goals, measure our achievements, discuss our shortcomings—and raise a toast to the excitement and opportunities of 2015. For me professionally, this time of year means reflecting upon the end of NAPEO's three-year strategic plan.
    The 2012-2014 Strategic Plan focused resources on key initiatives that would drive our industry to higher performance levels and meet the ongoing needs of our membership: Marketing, Membership, Communications, Government Affairs, Healthcare, and Operational Infrastructure. From these, we developed the goals and strategies by which we would measure our success and allocate resources. Three years later, I am pleased to report that we have made significant achievements...

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napeo notebook
Greater Heights in 2015
Patrick J. Cleary
The Roman god Janus, for whom January is named, had two faces, one looking back, and one looking forward. As we begin a new year at NAPEO, it is an apt metaphor—to look back on what we accomplished in 2014 and forward to how we plan to build on these successes in 2015.
    By all accounts, 2014 was a good year for the industry and for NAPEO. Our membership and dues income stayed strong. We had terrific attendance at our events. We had many successes on the state level and had a great fly-in at the PEO Capitol Summit in June. We continued our focus groups, probing small business' views on PEOs and used that data to guide another white paper. Sustained industry promotion efforts continued to show results, steering business to NAPEO members...

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statehouse update
2015 State Government Affairs Plan Ready to Roll
Thom Stohler
In 2014, NAPEO's legislative and regulatory efforts led to the enactment of PEO-favorable legislation and the defeat of legislation that would have had a negative impact on the industry in areas including regulatory modernization, workers' compensation, and unemployment insurance. In Oklahoma, for example, NAPEO was able to work with the state's Employment Security Commission to oversee the enactment of an unemployment insurance option reporting bill that gave PEOs the ability to choose to report SUTA at either the client or PEO level. In Louisiana, NAPEO was able to defeat a bill that would have amended the way in which PEOs sponsored health benefits. In addition to these successes, efforts undertaken by NAPEO laid the groundwork that will allow for further enactment of statutes or promulgation of regulations favorable to the PEO industry...
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napeo advisor
Guns at Work
Brendan W. Williams, Esq.
Q. Can employees override their employers' objections to guns on work premises?
    A. Yes. Progressives pushing federal agencies for regulatory action are not the only ones creating employment law headaches these days. Whatever one's personal views on firearms, courts have recognized their possession as a right—and that right has increasingly been extended to include workplaces.
    Although District of Columbia v. Heller, 554 U.S. 570 (2008), answered many questions about whether a Second Amendment right to bear arms was fundamental in the view of the U.S. Supreme Court—decoupling that right from ambiguous language concerning a "well regulated militia"—Justice Antonin Scalia's majority opinion disclaimed that it should not be read "to cast doubt on"...

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The Smart Business
Why PEOs are the Smart Phones of the Next Generation

Matthew Swissman
What do you do for work—I don't get it. What is a PEO? Do you just run payroll for small businesses?
    These are questions people in the PEO industry are asked every day. I can say with confidence that in 10 years, this will not be the case.
    I am 28 years old and have worked in the PEO industry for five years in the Washington, D.C., area. My coworkers joke with me all the time that I am going to be a PEO lifer, and I tell them in response: "Yes, I am!" I have a passion and a vision for this industry and can't see myself doing anything other than PEO, ever.
    Twenty years ago, we used road maps to get around town. Nowadays, it's hard to find a new car without a GPS system. Twenty years ago, we had to look things up in books. Nowadays, we have every piece of information at our fingertips with smart phones.
    My prediction is that in another 10 years, doing HR in-house will be obsolete, as most small businesses will move to the PEO model...

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peo index
Employment Index Shows Strong Growth
John Slavic
The PEO Employment Index continues to show growth this quarter, although the robust 17 percent annual growth rate of the index for the past five years seems to moderate slightly this quarter. There is a strong correlation between the index and gross domestic product (GDP). The first quarter of 2014 was anomalously negative, with a strong recovery following. It is expected that Q4 could be +4 percent, suggesting that the index will resume its recently strong upward trend. Other data placed alongside the index indicates...
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peo spotlight
Looking Ahead
What Do You See in the Future for the PEO Industry?

To cap off NAPEO's 30th anniversary year, PEO Insider® posed this question to members: What do you think the PEO industry will look like in 30 years (one generation from now)? We asked people to be creative, and answer from their own vantage points in the industry—HR, benefits, legal, risk management, C-level, technology, operations, or as a service partner—or for the industry as a whole. What will the PEO's place in the small business market be? Whether called PEO in 30 years or something else, how widespread will the concept be? How will PEO have evolved from its origins in 1984? Who will PEOs serve? What will the businesses and workplaces PEOs serve look like?
    We received a wide variety of responses. A representative sample is presented here...

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global insights
Intellectual Property Has Huge Impact on Society
Thomas J. Donohue
Strike up a conversation about intellectual property (IP) at a party and you'll likely find yourself standing alone. Though it may seem like an abstract concept to some, IP plays an essential role in our culture and economy by driving innovation, protecting consumers, and supporting everything from music, cinema, and sports to health, tech, trade, and more. In other words, anyone who's interested in the hottest new smart phone, the latest blockbuster film, the most promising new drug therapy, the safest toys for their children, or the next major U.S. trade agreement is interested in IP—whether or not they know it...
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NAPEO Medallion Partners
NAPEO Thanks its 2014 Medallion Partners
Diamond Partners

F.W. Davison and Company         Risk Transfer Holdings        
Platinum Partners

Artex Cedar Hill         Compass Consulting Group, Inc.         Humana         MassMutual Financial Group         McHenry Consulting

Summit Software         ThinkWare Corporation         Transamerica Retirement Solutions
Gold Partners

ALLInsurance Solutions Management, LLC         Avalara         MetLife         PayPlus         Pinnacle Financial Services
Silver Partner

eflexgroup         Fisher & Phillips LLP         Human Resources Mexico, S. de R.L        
Bronze Partners

Capital Alliance Corp.         Comply Right Distribution Services         NetWise Technology

ResourceDirect         SaaShr / A Kronos Company         U. S. Risk Insurance Group, Inc.      

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