Would you say a PEO working within the healthcare legal and regulatory framework feels more like a ping pong ball, a yo-yo, or the ball in a pinball machine? Most businesses would feel the constant bouncing back and forth like a ping pong ball, or perhaps the constant ups and downs like a yo-yo. PEOs, however, because of the added complexity of the co-employment relationship with their clients, would feel more like the ball in a pinball machine: They are propelled on what is hoped to be the right path, only to have the rules change and bounce off a bumper, then to ricochet wildly in an uncontrollable direction while madly working the flippers and hoping not to tilt.
There are always bumpers, direction changes, and obstacles in the healthcare arena. Here are the ones present at the moment, what the NAPEO experts have to say about them, and some ideas from this month’s PEO Innovator:
Navigating the complex laws related to ill and injured workers—primarily the Family and Medical Leave Act (FMLA) and the Americans with Disabilities Act (ADA) (and, with increasing frequency, state and local laws)—is an important area of risk management for employers. The Equal Employment Opportunity Commission (EEOC) litigates a high percentage of ADA claims. Moreover, its 2017-2021 Strategic Enforcement Plan indicates that a key area of focus is inflexible leave policies. It is therefore imperative for employers to have strong leave management protocols in place and fully understand their legal obligations. Of course, the PEO structure adds an additional layer of complexity.
PEO HR professional: “Hello, this is Peggy. How can I help you today?”
Client: “This is Abe at ABC Co. There’s been a shooting here. We need your help.”
That’s a call no client wants to make or PEO receive, but it is an undeniable reality that businesses face. In 2016, homicides accounted for 10 percent of deaths at work, an increase over the previous year and a number that appears to be on the rise, according to the U.S. Department of Labor’s (DOL’s) Bureau of Labor Statistics.1 Beyond fatalities, thousands are injured, and millions yearly experience some type of workplace violence, including episodes of bullying and intimidation.
Nowadays, we don’t need to tell you the importance of keeping your data secure. You read the headlines, just as we do. In the age of the information “cloud,” it is easy to believe that your data is secure simply because it isn’t housed in your office or on machines that you physically own. The reality is that the information is your responsibility to protect even if you have moved your infrastructure into a cloud-based solution.
A few months ago, I was honored by a group of peers for my individual contribution to NAPEO and the Carolinas Leadership Council. Having colleagues speak about my service was a humbling experience and it really made me think about what this organization has meant to me over the years. I have been involved with NAPEO since I first entered this business 20 years ago.
I clearly remember going to my first NAPEO conference in Orlando and the excitement and anxiety that I felt. I was 25 with no business experience, and I quickly realized that NAPEO could educate and elevate me as I embarked on my career path. Over the years, I have worked on various committees at the state and national levels, advocated for changing federal and state legislation, and served on the NAPEO Board of Directors.
The headline is a quotation from John Donne’s Devotions (1624). According to the American Heritage Idioms® Dictionary, it means that “Human beings necessarily depend on one another, as in You can't manage this all by yourself; no man is an island.”
In the context of our world, “this” can easily relate to operating a PEO—something I am sure you will agree is complicated/difficult. As I repeatedly remind our internal staff: “If it were simple, our clients would not need us!”
That was the subject line—in all caps—of the email I received from a good friend and NAPEO member about our selection of Donna Brazile as our Wednesday luncheon speaker at the PEO Capital Summit in May. And he wasn’t alone. We received a bunch more questioning our judgment and asking whose idea it was.
Now that NAPEO’s largest-ever market research project is complete, it’s time to get to work on putting that gold mine of information and insight to work. Our next big initiative is the development of a comprehensive and actionable marketing plan to effectively deploy the strategic insights gained through the research phases.
Legislative and regulatory activity in any particular area has a way of ebbing and flowing. What’s hot today can certainly be cold tomorrow. Just because a particular state has had little recent legislative or regulatory activity of concern to PEOs does not necessarily mean it won’t have any in the future. Take, for example, some of the states that make up the Pacific Northwest. When I started here at NAPEO, there was hardly any activity there. However, in the years since, there has been a flurry of activity rivaling our most active states.
Clarifying the meaning of “W-2 wages” for purposes of Section 199A of the Internal Revenue Code (IRC), as added to the tax code by the tax reform bill signed into law last year, remains NAPEO’s top federal priority. NAPEO has responded to this issue by taking several actions.
Q. We read about the PEO statute workers’ compensation exclusive remedy challenge in Montana in last month’s PEO Insider. Has there been a resolution yet?
A. Yes, the Montana Supreme Court ruled in May that the PEO statute with regard to workers’ compensation exclusive remedy is ...
The PEO Index recovered moderately in the last quarter as GDP continues to trend higher. It is anticipated that as the positive effect of tax cuts works its way through small and medium-sized businesses both the PEO Index and GDP will continue to benefit. The challenge of many small businesses is hiring in a tight labor market. Consequently, the index may underperform GDP as it reflects hiring in the PEO context.
Haley Crum, executive vice president of NAPEO-member FrankCrum and president of FrankCrum Staffing, considers service an important part of her life. Crum serves as a Guardian ad Litem, is on the YMCA Mayor’s Prayer Breakfast Committee, and is on the Bank of America Student Leaders Selection Committee. Her company, FrankCrum, based in Clearwater, Florida, also gives back to the community. Recently, the company reached the $1 million mark in funds raised for Trinity Café through the annual FrankCrum Golf Invitational.
If you browse bookstore shelves or scroll through Amazon search results, you can bet you’ll find myriad how-to books spanning endless topics. You will find very few titles on Amazon about how to operate a PEO. There is not a lot out there about PEOs in the general publishing world.
Tim Graham, president of NAPEO member and Clifton, New Jersey-based Payrolling Partners, Inc. (PPI), found this out as he was running a sales division for a packaging company in 2010. It was at this time that a new career opportunity presented itself and offered him the chance to head down a new path that would lead him to the PEO industry.
This week [April 30 to May 4] the U.S. Chamber of Commerce joins with all Americans to celebrate National Small Business Week. This is an opportunity to show our appreciation for the backbone of our nation’s economy: the small businesses that employ more than half of all Americans and create about two out of every three new jobs each year. The Chamber is proud to represent millions of these businesses all around the country.