Topic: LEGAL & LEGISLATIVE

When writing his theories on evolution, Professor Leon C. Megginson said, “It is not the strongest or the most intelligent who will survive, but those who can best manage change.” The global business world continues to shrink for the modern employer, and change is inevitable. New business opportunities are just an email away. Employees want remote work options, and employers wish to find talent wherever they can. As businesses expand their borders regarding services and products, and evolve their internal company makeup, international barriers still exist- laws, language, and resources. However, enterprises view these obstacles as manageable. There are avenues to expand globally, and our clients are looking for those solutions. 

Earned wage access (EWA) is the increasingly accepted term referring to an employee’s ability to access a portion of earned wages in between pay periods. EWA is not a loan, but an advance payment on funds available in the employees’ next paycheck. Financial technology advancements have allowed for significant growth in EWA solutions. However, growing input from state and federal regulatory agencies suggests that PEOs need to carefully consider which solutions most closely adhere to regulatory guidance.

As of the writing of this article, it appears that the Democrats will retain control of the Senate. The only question is whether their majority is 50-50 (with Vice President Harris breaking ties) or 51-49. That will be determined by the Georgia run-off between incumbent Sen. Raphael Warnock and challenger Herschel Walker. The House of Representatives will be controlled by the Republicans, though by a very slim margin. From a legislative perspective, with Republican’s controlling the House, President Biden’s remaining legislative agenda has little to no possibility of being enacted. Split control of Congress means that the only bills that will be enacted into law will have to be bipartisan in nature. This is another way of saying “expect gridlock” this session of Congress. 

As PEO industry professionals serving our companies and our customers, it is prudent to have an introductory knowledge about ESG, consider reasons why our industry should pay attention to ESG, identify ways you can help further ESG initiatives within your own organizations, and aid your customers in doing the same. While the aspects of ESG covered here easily merit separate articles or hour-long webinars, this article will serve as a primer and cover ESG ideas at a high level.

As more and more states legalize the use of cannabis for both medical and recreational purposes, worker advocates have increasingly pushed for corresponding employment legislation that protect employees’ right to use cannabis without the fear of adverse employment action. This is a growing area of the law that can create real compliance challenges for PEO clients on issues ranging from hiring decisions to workplace drug testing.

On September 7, 2022, the National Labor Relations Board (NLRB) released a Notice of Proposed Rulemaking (NPRM) that would update the requirements for whether a company is a joint employer under the National Labor Relations Act (NLRA). The NPRM proposes to rescind and replace the current final rule, entitled “Joint Employer Status Under the National Labor Relations Act,” that took effect on April 27, 2020.

The past few years set the stage for significant upheaval in the regulatory landscape for employers across industries and localities. COVID-19 sent certain regulatory agencies into high gear as they rushed to introduce new policies to meet the unique moment. But the pandemic wasn’t the only factor that reshaped the business landscape. Heading into 2022, concerns around equity, security, privacy, benefits access, and other larger issues took center stage, changing long-held practices at small and large businesses alike—and more of these changes are in the pipeline.

As the industry continues to grow, we will continue to expand our lobbying presence in Washington. Ramping up our efforts and resources will be necessary to meet the challenges presented to PEOs. The hiring of Mehlman has, and will continue to, helped NAPEO and the PEO industry navigate the many challenges that await.

Just as the pandemic seems to be at a manageable point and you think you can breathe easy for a bit, it’s time for you to gear up for the next wave of workplace troubles. A confluence of several events will likely lead workplaces across the country to face a wave of employment litigation at the end of 2022 and well into 2023. What forces are leading to this inevitable future, what will it look like, and what should PEOs do to prepare?

The PEO industry has made great strides in recent years in raising public awareness in large part due to NAPEO’s industry marketing efforts. While the future seems bright, it is unfortunate that still many people do not have a clear understanding of what PEOs are all about. Regrettably, many legislators and regulators fall into this category which is why industry advocacy is so very important.

The Supreme Court of the United States (SCOTUS) has certainly received much attention in recent weeks, but PEOs need to keep their eyes on the highest court in the land for an altogether different reason: The decisions we have already seen—and soon expect to see—from SCOTUS in 2022 will alter the landscape of workplace law. We’ve seen two big workplace law decisions already this year, we expect another one in the next month, and the court just accepted review of another case we will most likely see decided around the end of the year.

Among the biggest landmines for PEOs is the misclassification of co-employees. This has become increasingly pressing as the Biden administration focuses heavily on the misclassification of exempt employees, as well as the misclassification of independent contractors. This article discusses common pitfalls of classification, best practices to minimize PEO liability when misclassification occurs, and how to navigate issues when they arise.

It’s 2023. You manage compliance for a PEO with clients in California. You receive a request from a California worksite employee asking for a copy of all personal information collected from or about him or her in the last 12 months. Where do you start? Is the PEO even obligated to comply with such a request?

During his candidacy, President Biden promised help for individual workers. The agencies under the president’s control, and even Congress in some instances, have worked to further that broad agenda, particularly with respect to retaliation against workers. These actions, in turn, require attention by PEOs and their client companies.

Since now-President Joseph R. Biden Jr.’s announcement that he was running for office, one thing has been clear: He intends to be the most pro-union president and promoting labor organizing is a cornerstone of his agenda. On February 4, 2021, House and Senate Democrats gave President Biden his wish through the introduction of the Protecting the Right to Organize (PRO) Act.

When I was a kid, optical illusions were popular. You would put your face up close to the image, un-focus your eyes, and slowly pull back. What was once swirling colors or thousands of dots would soon form an image hiding in plain sight. Or so, that’s how it was supposed to work. I think that is how compliance can be. We all want to do an excellent job with compliance, but there is an art to doing it well. As PEOs, we want to help our clients implement new laws so they become embedded, workable parts of their businesses. 

Just like every major disaster leaves a lasting imprint on the landscape that it touches, COVID has forever left its indelible mark on the workplace safety landscape. How can PEOs help employers rebuild and move forward? On the safety front, it still will mean providing employers with different and sometimes conflicting information. However, a roadmap may be emerging through the evolution and devolution of COVID regulations and policies.

As an industry, we gather every year in May at the Ritz-Carlton, Pentagon City, for what I consider to be the best event NAPEO presents: the PEO Capitol Summit. The information shared during the PEO Capitol Summit is always timely and activities and events are second to none. 

Since 2018, NAPEO has found itself caught up in a series of federal legislative and regulatory issues.

Despite being described as more deeply divided than ever, Congress found a way to pass the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFASASHA). President Biden has said he will will sign the bill into law, and may have already done so by the time this article goes to press. This means all employees subject to arbitration agreements will have the right to choose whether to bring covered claims in arbitration or in court, even if they previously signed a PEO’s mandatory arbitration agreement. This development significantly impacts PEOs from both an operational standpoint and a liability standpoint.