NAPEO
February 2020
THIS MONTH'S FOCUS: The Economy & Insurance
THE IMPACT OF SIMPLE 2020 ECONOMIC TRENDS
Enjoy the impact of the economic tailwinds of the current U.S. economy. However, as a warning, do not become complacent in good times. The fissures of structural, process, and management weaknesses can be invisible and hidden during times of prosperity, but can rear their ugly heads during more turbulent times and economic downturns.
BY DAN MCHENRY
February 2020CONTENTS
FEATURED
IMPROVING THE SALES PROCESS BY LOOKING BACK
As with any new year, it is important to look back and reflect on what went well and what didn’t and use that information to improve the process going forward.
BY CLAY M. KELLEY, PHR
February 2020ONE STROKE, A THOUSAND CUTS: RISKS TO WATCH OUT FOR IN 2020
Lawsuits and government investigations can leverage repeated technical violations and nominal harms that would not be worth pursuing individually to yield huge damage awards. The cost of defending such matters, however, can be high regardless of whether or not the defense prevails. These are potentially crippling threats to PEOs. Here are some of the riskiest areas to watch out for in 2020.
BY KERIM FIDEL, ESQ.
February 2020PAYROLL PROCESSING DISRUPTION:THE SEARCH FOR STABILITY
PEOs have experienced a great deal of stress and disruption recently with respect to payroll processing. As a result, they have been forced to address their ACH payroll processing and the need to re-evaluate who to work with for processing these critical and time-sensitive payments.
BY MITCH BELON
February 2020UNDERSTANDING RISK TO BETTER NAVIGATE THE INSURANCE MARKETS
It will become even more important in the next few years for PEOs to manage their risk and structure their workers’ comp programs to fit their internal tolerance for risk so they can navigate the rate environment and grow a healthy, long-term, and profitable book of business.
BY BLAKE SOUERS, AU
February 2020WORKERS’ COMP & EPLI MARKET UPDATE
Seasoned PEO operators have experienced the uncertainty resulting from insurance program structures, program managers, and carriers that appear to be in a constant state of flux
BY DAVID E. CAROTHERS, CSP, ARM
February 2020TRACKS
Recession: It is a word we keep hearing. Is one coming? The so-called pundits cannot seem to agree. If a recession does occur, how can a PEO plan for what comes next? The first question is, what actions may businesses take when a recession occurs?
BY ANDREW LUBASH
February 2020APP UPDATE
After months of development, we released the Nextep app in May 2019. Our goal was simple: Give our clients and their employees the power to manage their info any time, any where, and on any device. I talked about how we developed our app in an article on page 54 of the September 2019 issue of PEO Insider.® This article follows up with feedback about the rollout and what clients found most valuable in the new app.
BY BILLY MILLER AND JA’VON BERRY
February 2020CASE STUDY: PAYROLL CRISIS MANAGEMENT
We live in a technology-centric world: So much so that it’s easy to become dependent. People are always connected. Instant feedback is expected. Financial transactions are easily processed and tracked online. But what happens when that ability is lost?
BY BILL MANESS
February 2020As we begin a new year, we are imbued with a renewed sense of optimism for this industry. We have seen great growth over the last few years, a trend that appears to be continuing. As I write this, we are most of the way through our renewal season.
BY PAT CLEARY
February 2020IS CALIFORNIA’S NEW AB 5 LAW A BUSINESS OPPORTUNITY FOR PEOS?
On September 18, 2019, California Governor Gavin Newsom signed into law legislation known as Assembly Bill 5 (AB 5). If you are not operating in California or do not routinely work in business sectors that use the services of independent contractors, you may rightfully be asking, “What is AB 5 and why do I care?” PEO companies familiar with the legislation and the California landscape do care and, as you will see, perhaps you should too. Many PEOs see AB 5 and the business climate it creates as a business opportunity.
BY STEVEN A. PLETCHER, ESQ.
February 2020NOT YOUR MAMA’S MEWA
Last year, many PEOs began receiving inquiries from state insurance commissioners about whether they were operating multiple-employer welfare arrangements (MEWAs) in their states. This article will provide a high-level overview of the history of MEWAs and the potential implications for PEOs being categorized as such.
BY NICHOLAS KAPIOTIS, ESQ. AND SETH T. PERRETTA, ESQ.
February 2020PEO INDEX: RECOVERING FROM RECENT LAG
The PEO Employment Index continues to show recovery from its recent lag. Once again, the very strong labor market has record low unemployment, rising wages, and a widening skills gap across almost all sectors.
BY JOHN J. SLAVIC
February 2020REGULATORY UPDATES, STATS, NEWS FROM MEMBERS
The U.S. Department of Labor (DOL) issued a final rule to update the regulations interpreting joint-employer status under the Fair Labor Standards Act (FLSA). The final rule provides a four-factor balancing test for determining FLSA joint-employer status in situations in which an employee performs work for one employer that simultaneously benefits another entity or individual.
BY
February 2020SUCCESS STORY: HOW TO SOAR AS A NICHE PEO
Over the past few years the PEO industry has seen tremendous growth amid rising levels of awareness. Businesses across the country are warming to the idea of using a PEO and are ready to reap the benefits. For New York City-based Little Bird HR, those businesses are schools. Charter, private, and pre-K schools, along with some other non-profit mission-driven organizations, make up its client list.
BY CHRIS CHANEY
February 2020WHAT IS ON YOUR RADAR IN 2020?
Other than the usual topics, some things on my radar outside of our organization are the effects of increasing private equity investment in the space and the prospect of additional software, insurance, and other service providers entering the PEO market
BY
February 2020WHAT YOU NEED TO KNOW: GETTING A MASTER HEALTH PLAN
There are numerous options for the expanded and improved services a master plan can bring, so before you begin, you must align on what you want to provide under your master plan.
BY WILLIAM J. KROPKOF, CEBS
February 2020