The Legal and Regulatory Roller Coaster
Here we go: Up and down, around and around. Step right up and hop on the legal and regulatory roller coaster.
PEOs are no strangers to this wild ride, but in times like these, it’s not any less exhilarating, or nauseating, as the case may be.
On the federal level, these measures are currently in flux as the new administration comes in:
- The Department of Labor’s (DOL’s) fiduciary rule;
- Blacklisting rules and a minimum wage increase for federal contractors;
- The new overtime regulations under the Fair Labor Standards Act (FLSA);
- The applicability of joint employer status to PEOs; and
- The allocation of client and PEO responsibility for Occupational Safety and Health Administration (OSHA) and state rules for recordkeeping obligations and worker safety.
One thing that is not in flux is the new EEO-1 form: The old form had 121 data points, while the new one has 3,360. PEOs should be ready for this new twist, however, because the Equal Employment Opportunity Commission (EEOC) for the first time will use analytics software to identify indicators of potential discrimination on the front end.
On the state level, the rules in the states and local jurisdictions remain a jumble. State licensing and registration laws offer a mix and match variety of provisions addressing everything from direction and control to hiring and firing and treatment of taxes to benefits payments. Human resources and employment laws, governing things such as “ban the box” rules and paid sick leave, can vary down to the local level. Proposals designed to raise revenue, which affect PEOs, are on the rise among the states.
Finally, two PEO execs offer their experience keeping up with and navigating issues in the states, which may make your journey a bit smoother.
So, hang on, and don’t be surprised if by the end of the ride things have changed again.