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Legal Reviews and Insights

Legal Reviews and Insights

NAPEO's legal resources provide insight and analysis on the impact of key laws and legal issues on the PEO industry, and are prepared by leading members of the PEO legal community.
PEOs and the ADA. The ADA and its impact on PEOs, client companies, and worksite employees. By Peter A. Susser, Esq., Littler Mendelson (2009)
The ADEA Age, Layoffs, Waivers, and the PEO (Volume 6, Number 4, 2008). The ADEA prohibits age discrimination and has spec​ific limitations with regard to any waiver of its protections. This NAPEO Legal Review addresses its impact on PEOs, client companies, and worksite employees. By Gordon Berger, Esq. (2008)
An Overview of the Pros and Cons of Arbitration for PEOs (Volume 4, Issue 5, 2006). An examination of the issues related to arbitration both of client-PEO disputes and in employment contracts by Robert C. Rice, Esq. of Rice & Associates, P.C. (2006)
Audit Issues for PEOs. An explanation of the audit process and what it means for PEOs by Rufus E. Wolff, Esq. of Wolff Law Firm, P.A. (2006)
PEOs and Client Bankruptcy. Fundamental issues of concern to PEOs where a client declares bankruptcy. Jason Pomerantz, Esq. of Pachulski Stang Ziehl Young Jones & Weintraub LLP (2007)

Charter SchoolsCharter Schools —NAPEO Legal Insights—PEOs and Charter Schools (Volume 4, Number 2, July 2011) by William Schilling, Esq., NAPEO (2011)

501(c)(3) Organizations — 501(c)(3) Organizations — NAPEO Legal Insights — PEOs and 501(c)(3) Organizations (Volume 3, Number 5, October 2010), by Barry L. Salkin, Esq., Olshan Grundman Frome Rosenzweig & Wolosky LLP (2010)

Attorneys & Accountants — Attorneys & Accountants — PEOs and Professional Practice Clients (Volume 3, Issue 2, 2005), by Robert Rice, Esq. of Rice & Associates. (2005)

Churches — Churches and Religious Entities as PEO Clients (Volume 2, Issue 6, 2004), by Barry Salkin, Esq. of Olshan Grundman Frome Rosenzweig & Wolosky LLP. (2004)​

Federal Contractors and Affirmative Action —Federal Contractors-Affirmative Action, PEOs, and the Office of Federal Contract Compliance Programs (Volume 7, Number 3, August 2009), by Alissa Horvitz, Esq., Littler Mendelson, PC (2009) 

Federal Contractors — Federal Contractors and the Professional Employer Organization (Volume 5, Issue 1, 2007). Issues for PEOs that contract with clients who have federal contracts by M. Catherine Farrell, Esq. of Pierce, Duke, Farrell & Tafelski P.L.C.​ (2007)

Food Service Industry — Focus: Food Service Industry Clients (Volume 4, Issue 9, 2006). A review of the many issues confronted by PEOs with clients in the food services industry by Kevin S. Dunagan, Esq., of Rice and Associates; Barry Salkin, Esq., of Olshan Grundman Frome Rosenzweig & Wolosky LLP; James W. Jones, Esq. of Frank Crum. (2006)

Medical Providers — Health Care Providers as PEO Clients (Volume 2, Issue 4, 2004). Special concerns for PEOs that contract with medical providers by Christina Harris Schwinn, Esq, LLM of the Pavese Law Firm (2004)

Property Management Companies — Property Management Companies — NAPEO Legal Insights™ (Volume 1, Number 2, November 2008), by Christopher Moussally, ADP TotalSource (2008)

Hiring and Firing — Client Service Agreement Series: Hiring & Firing Employees: Or, if you want to be an employer, then act like an employer", by Robert C. Rice, Esq., Rice & Associates, P.C. (2010)

Financial Security Provisions — Financial Security Provisions in Client Service Agreements, by Ted N. Kazaglis, Esq., Jackson Lewis, LLP (2009)​

EEO Issues — EEO Issues and the Client Service Agreement, by Ted N. Kazaglis, Esq., Jackson Lewis, LLP (2008)​

Client-Based Health and Workers' Compensation Programs by Brian M. Nugent, Esq. of The Nugent Law Firm, P.C. (2004)​

Multi-State Provisions An analysis of multi-state CSA requirements and a round-up of individual state requirements by Ted N. Kazaglis, Esq. of Jackson Lewis LLP (2004)​

Termination — Contract Termination: Dotting the "i"s and crossing the "t"s, by Robert C. Rice, Esq., Rice & Associates, P.C. (2009)​

Termination Considerations for the CSA  An analysis of provisions related to client service agreement termination and other "winding up" issues at the end of the PEO-client relationship by Robert C. Rice, Esq. of Rice & Associates. (2004)​

COBRA and the PEO Relationship (Volume 5, Issue 2, 2007) An explanation of COBRA and how it operates in various PEO situations by Rufus Wolff, Esq. of Wolff Law Firm, P.A. (2007)
The Impact of the Ledbetter Act and Other Record Retention and Destruction Rules For PEOs (Volume 8, Number 2, February 2010). This NAPEO Legal ReviewTM covers background and a comprehensive overview of the the Lilly Ledbetter Fair Pay Act, e-discovery rules, the importance of records-retention policies, recommended retention periods, proper destruction techniques, client service agreement language, and best practices for PEOs, by Amie Remington, Esq. (2010)

Retaliation-What it Is, Trends, and Best Practices for PEOs to Limit Liability (Volume 7, Number 4, September 2009) Includes legal developments in retaliation cases, where claims come from, and preventing retaliation claims, by Ted N. Kazaglis, Esq. and Nicola A. L. Prall, Esq. of Jackson Lewis LLP. (2009)

EEO Issues — NAPEO Legal Insights™ (Volume 1, Number 3, December 2008) — An overview and roadmap to compliance for PEOs by Ted. N. Kazaglis, Esq. and Diane Stanton, Esq. of Jackson Lewis LLP.​ (2007)

Legal Notices in the Electronic Age (Volume 6, Number 3, October 2008)  An examination of E-Sign and UETA, employer postings, hire and fire notices, payroll notices to employees, benefit notices to employees, and employee consent, by Jay Pimentel, Esq., TriNet HR Corporation (2008)

Meals and Rest Periods — Meals and Rest Periods - NAPEO Legal Insights,™ (Volume 4, Number 3, May 2012): California Supreme Court Hands Down Major Decision, by John M. Polson, Esq., Fisher & Phillilps, LLP. (2012)

Sole Proprietors, Owners, and Partners — Sole Proprietors, Owners, and Partners - NAPEO Legal Insights,™ (Volume 3, Number 2, March 2010), by James B. Longacre, Esq., Stevens & Lee P.C. (2010)​

Commissions — Commissions — NAPEO Legal Insights™ (Volume 1, Number 1, October 2008), by Amie Remington, Esq., Landrum Professional Employer Services, Inc. (2008)​

Employee Handbooks Employee Handbooks (Volume 7, Number 2, July 2009) — Includes general considerations, PEO considerations, specific policies, and Acknowledgment, by John M. Polson, Esq. and Tillman Y. Coffey, Esq. of Fisher & Phillips. (2009)​

Employee Leave — Employee Leave — A Guide to the Complex Law of Protected Leaves (Volume 4, Issue 8, 2006) "You Can't Make Me Come to Work" An analysis of employee leave issues and requirements for PEOs by Peter Susser, Esq. of Littler Mendelson, P.C. (2006)​

Employment Contracts — Employment Contracts (Volume 3, Issue 7, 2005) Considerations with regard to employment contracts both for worksite employees and PEO corporate employees by John M. Polson, Esq. of Fisher & Phillips, LLP. (2005)​

Military Personnel — PEOs and the Uniformed Services Employment and Reemployment Act of 1994 (Volume 4, Issue 3, 2006)  (2006)​

Owners, Officers, Directors — Employee Status of Owners, Directors, and Officers Legal Review, Part I (Volume 1, Issue 1, 2003) State workers' compensation and unemployment tax issues related to the owners, directors, and officers of PEO client companies by Steven Pletcher and Craig J. Helmreich of Scopelitis, Garvin, Light & Hanson.. and Employee Status of Owners, Directors, and Officers Legal Review, Part II (Volume 1, Issue 3, 2003)   Employment tax and pension and welfare benefit plans as they relate to owners, directors, and officers of PEO client companies by Steven Pletcher of Scopelitis, Garvin, Light & Hanson; and Barry Salkin of Olshan Grundman Frome Rosenzweig & Wolosky LLP. (2003) ​

Pre-Employment Testing — Pre-Employment Testing and The PEO (Volume 4, Issue 4, 2006) A review of the dos and don't and tricky nuances of employee testing by Peter A. Susser, Esq. of Littler Mendelson, PC. (2006)

Employer Status and the PEO Relationship — The importance of employer status in the evolution of the PEO industry. An examination of the current role and interpretation of employer status of PEOs under state and federal law. (2008)

NAPEO Legal Insights™Family and Medical Leave Act Update: Key Takeaways from the New Regulations, by Neil Alexander, Esq., and Casey Kurtz, Esq., of Littler Mendelson. (2013) 

Applicability of State FMLA Laws to PEOs and Their Worksite Employers — It is important for PEOs to understand state laws that parallel and often add to the federal Family and Medical Leave Act (FMLA). The new federal FMLA regulations provide a two-step analysis in a PEO situation. If the PEO is not considered a joint employer, there is no FMLA responsibility for the PEO and all analysis is done at the client level. If the PEO is determined to be a joint employer, the client is most commonly considered the primary employer, and the second step in the analysis is determining whether the client is a covered employer and whether the PEO has any obligation to individuals jointly employed. This NAPEO Legal ReviewTM addresses these states, which have leave laws: California, Connecticut, District of Columbia, Hawaii, Maine, Massachusetts, Minnesota, New Jersey, Oregon, Rhode Island, Vermont, and Washington, by Todd Van Dyke and Ted Kazaglis of Jackson Lewis LLP.​ (2011) 

The FMLA, PEOs, and Client Companies—Updated! — The FMLA regulations is unique recognition of PEO operations, FMLA treatment of joint-employer issues, the 2008 regulatory changes, practical issues, an update on the NEW DOL regulations by Peter A. Susser, Esq. of Littler Mendelson, P.C.  (2009)​

NAPEO Legal Insights™—  The FMLA PEO Provisions: Practical Issues, by William J. Schilling, Esq., NAPEO (2009) ​

PEOs and the Fair Labor Standards Act — A summary of the major parts of the FLSA, including the recently revised FLSA regulations pertaining to overtime-exempt employees. Includes employees and employees covered, the employment relationship, hours worked, the minimum wage, overtime pay, exemptions, wage deductions, child labor, record keeping, penalties for noncompliance, dealing with a DOL visit, and a PEO action plan. by M. Catherine Farrell, Esq., Pierce, Duke, Farrell & Tafelsky PLC, and David J. Franks, Esq., Bassey and Selesko PLC. (2007) 

PEOs and the Genetic Information Nondiscrimination Act — Terminology, Title I: Health Plans, Title II: Employers, Title II: Prohibitions, Relationship with Other Law, Retaliation, Remedies, Notice, Firewall, PEO Checklist and Best Practices, by Barry Salkin, Esq., Olshan Grundman Frome Rosenzweig & Wolosky LLP. (2009)

W-2 Reporting—NAPEO Legal Insights—"Healthcare Reform and the W-2 Reporting Requirements," by Amie Remington (Landrum Professional Employer Services, Inc.), Barry Salkin (Olshan Grundman), Dale Vlasek (McDonald Hopkins), Michael Yoder (Servant HR, Inc.), Jennifer Tingle (ADP TotalSource), and James Longacre (Stevens & Lee). (2012)

NAPEO Legal Insights™ —  Professional Employer Organizations Obligations Under HIPAA — A Summary, by Dale R. Vlasek, Esq., McDonald Hopkins LLC (2009)

HIPAA Privacy in the Workplace: A Primer for PEOs, Part I and  HIPAA Privacy in the Workplace: A Primer for PEOs, Part II — An analysis of issues of how the privacy rules can impact PEO operations by Serena G. Simons, Esq. of Miller & Chevalier Chartered. (2003)

NAPEO Legal Insights — Mandatory E-Verify: A PEOs Guide to State E-Verify Laws, by David S. Jones, Esq. and Nicola A. L. Prall, Esq., Jackson Lewis, LLP (2011)

Immigration for PEOs: Professional Employer Organizations and Co-Employment — An analysis of immigration compliance, I-9s, immigration status and employment, and visas by Alka Bahal, Esq. of Grotta, Glassman and Hoffman, P.C. (2005)​

Commissions & Fees — Welfare Benefits, Insurance Commissions, Fees, and PEOs — Limitations on Permissible Activities and Potential Pitfalls  An overview of state and federal requirements by Tess J. Ferrera, Esq. of Thompson Hine, LLP, and Donna E. Blanton, Esq. of Radey Thomas Yon & Clark, P.A. (2006)

General — Professional Employer Organizations and Insurance  An analysis of state insurance regulators' powers to investigate PEOs, licensure of PEO salespersons as agents, regulation of other PEO insurance-related activities by Donna E. Blanton and David A. Yon, Radey Thomas Yon & Clark.​ (2003)

NAPEO Legal Insights™ — PEOs and Client RIFs, by Brian L. McDermott, Esq., and Thomas E. Deer, Esq., Ogletree, Deakins, Smoak, & Stewart, P.C (2009)
Demand Letters: NAPEO Legal Insights™  — Pay My Client $1 Million In 24 Hours Or I Will Sue You! Responding to Demand Letters, by John Polson, Fisher & Phillips, LLP (2009)
PEO Health Plans — MEWAs or NOT? — An analysis of the status of PEO health plans and whether they fall under the ERISA category of MEWAs by Tess J. Ferrara, Esq. of Thompson Hine, LLP. (2003)

NAPEO Legal Insights™ — Professional Employer Organizations and OSHA Liability, by Brad Hammock, Jackson Lewis, LLP (2010)

PEOs and OSHA — Strategies for complying with employer responsibilities under the Occupational Safety and Health Act and OSHA standards by Peter A. Susser, Esq. of Littler Mendelson, PC.​ (2004)

NAPEO Legal Insights™ — Red Flags Rule Overview, by Elizabeth Murray, Esq., and Barry L. Salkin, Esq. (2010)

NAPEO Legal Insights™ — IRS Approval for Your PEO Retirement Plan, by James B. Longacre, Esq. and Edward C. Renenger, Esq. (2012)

NAPEO Legal Insights™ — Multi-Employer Plans: What PEOs Ought to Know About these Collectively Bargained Pension Plans, by Dale R. Vlasek, Esq. (2011)

PEOs and 401(k) Plans — A Fiduciary Primer — The fiduciary duties involved in establishing and operating multiple employer 401(k) plans (401(k) plans) by Dale R. Vlasek, Esq. of McDonald Hopkins LLC.​ (2005)

Sarbanes-Oxley and Workplace Ethics Training — Changes required by Sarbanes-Oxley that impact PEOs and their clients by Gordon Berger of Berger Legal, P.C. (2006) 
Dos and Don'ts for PEO Investigations of Sexual Harassment — An analysis of the client's and PEO's perspectives and defenses in sexual harassment investigations by Rachelle G. Silberberg, Esq. of Clark Hill PLC. (2005)
Employees, Social Security Numbers, and PEOs: A PEO's Obligation to Verify Employees' Right to Work and No-Match Letters — The verification process basics, matching SSNs with people, penalties for taking adverse action, how to correct a no-match, tips for compliance, and a sample no-match letter, by Gordon M. Berger, Berger & Childs, P.A. (2010)

State Taxation of Businesses — What, when, and how state taxes apply to PEOs by Steven A. Pletcher, Esq. of Scopelitis, Garvin, Light & Hanson, PC. (2005)

Tax Credits —  The Impact of PEO Arrangements on Federal Business Credits, Deductions, and Other Business Benefits by Barry Salkin, Esq. of Olshan Grundman Frome Rosenzweig & Wolosky LLP. (2008)

Defending Third Party Liability Claims: An Emerging Trend for PEOs — An analysis of the two most common third party liability scenarios that PEOs face: workers' compensation and third party death or injury by Steven A. Pletcher, Esq. of Scopelitis, Garvin, Light & Hanson. (2004)
PEOs and SUTA Dumping  — A review of legislative limitations on transactions used to secure lower unemployment rates. by Brian M. Nugent, Esq. of The Nugent Law Firm, P.C. (2006)
Professional Employer Organizations and the National Labor Relations Act — Updated overview on the NLRA, including application of the NLRA to PEOs and clients, joint employer doctrine, liability for unfair labor practices, obligations to bargain, the doctrine of unilateral action, the secondary boycott doctrine, practical considerations for PEOs, strategies, and an outline of the NLR, by Mason G. Alexander, Esq., and John M. Polson of Fisher & Phillips LLP (2007)
Workplace Data Protection and Responsibilities  — Discusses federal law, state law, Social Security numbers, disclosure of security breaches, disclosure of uses, spyware statutes, e-mail and Internet access, and privacy policies, as well as appendices listing state Social Security legislation, notice of security breach legislation, and state disposal of records statutes, by Brian M. Nugent, Esq. (2007)