NAPEO and NJAPEO Achieve Victory

New Jersey Senate Passes PEO Legislation

NAPEO and its affiliated New Jersey Chapter (NJAPEO) have taken a major step towards a legislative victory that will facilitate the expansion of PEO services in New Jersey. The PEO registration legislation, negotiated with the Department of Labor by NAPEO and NJAPEO, recently passed the Senate on a vote of 29-3.

Senate Bill 1466 codifies the status and rights of PEOs in New Jersey. The NJAPEO victory is another in a series of recent state legislative victories for NAPEO and its affiliated chapters.

"Senate passage of this legislation is a tremendous achievement for our chapter and will benefit all PEOs doing business in New Jersey," said Jim Bell, NJAPEO President. "The success of this legislative effort is due in part to the development of a strong working relationship between NAPEO, NJAPEO and the Department of Labor."

This registration legislation will codify a PEO's employer status and clarify its rights and obligations under both the unemployment and workers' compensation rules of the state. It also provides that exclusive remedy shall apply to both the client company and the PEO.

The NJAPEO legislative project was part of NAPEO's new Millennium Project, a $1 million, five-year proactive legislative campaign to recognize PEOs under state laws. The Millennium Project supports NAPEO's chapters in providing critical financial resources, effective grassroots communications, professional lobbying support and legal assistance to ensure success.

The legislation has also received support from The New Jersey Chamber of Commerce, The New Jersey Food Council, The New Jersey Retail Merchants Association, The Chamber of Commerce of Southern New Jersey and the American Insurance Association.

Following its success in the Senate, this legislation was sent to the House for introduction in January 2001.

For further information, NAPEO firms may contact Chip Little, NAPEO's Government Affairs Director, at chip@napeo.org or at 703/739-8173.

NAPEO - The Voice of the PEO Industry ™