NAPEO
May 2023
THIS MONTH'S FOCUS: Legal & Legislative
MEET CONGRESSWOMAN ERIN HOUCHIN
Voters in Indiana’s 9th Congressional district elected Congresswoman Erin Houchin to serve in the United States House of Representatives in November 2022. In doing so, Rep. Houchin became the first woman elected to Congress from her district. She also holds the distinction of being the only person elected to Congress who has worked for a PEO.Rep. Houchin spoke to PEO Insider about her decision to seek public office, her experience working for a PEO, and the policies she champions.
BY Chris Chaney
May 2023CONTENTS
FEATURED
VICTORY IN NEW MEXICO
In recent years, NAPEO has seen growing threats to a PEO’s ability to offer large group health plans in Democratic-led states. For example, in New Mexico, this started in 2019 with PEOs receiving “a cease and desist” letter from the New Mexico Office of Superintendent of Insurance (OSI) for operating an illegal multiple employer welfare arrangement (MEWA).
BY EMILY MARSH
May 2023
THE KENTUCKY PEO BILL: A GRASSROOTS STORY
A core mission of our state government affairs efforts is passing the NAPEO Model Act in every state. In states with the model act on the books, PEOs enjoy the benefit of operating in a fair regulatory environment that does not disadvantage PEOs and our small business clients simply because of the unique nature of the PEO business model. Kentucky is the latest state where NAPEO successfully worked to pass a Model Act thanks to the efforts of many members.
BY KRISTIN BALDWIN
May 2023
PAY TRANSPARENCY LAWS SWEEP THE NATION:
An increasing number of states and localities across the country have enacted laws expanding pay transparency requirements to even the employment playing field for women and persons of color. Up from several years ago, over 25 states and localities have enacted some form of pay transparency law that: (i) prohibits an employer from requesting or relying on salary history; (ii) requires employers to report salaries across different job descriptions; or (iii) requires an employer to disclose a salary range for any given position in a job advertisement or at various points in the application process or upon a reasonable request by the applicant.
BY MELISSA L. CIZMORRIS, ESQ
May 2023
MY CLIENT MOVES TO A NEW STATE: WHAT ARE MY NEXT STEPS?
The rise in remote work has brought new challenges. Sometimes, a client notifies its PEO that they are hiring an employee in a new state where the PEO might still need to be licensed. So, what should you do? Below are some key points to consider when a PEO does business in a new state.
BY Elisabeth Shaw, ESQ
May 2023
TO TEST OR NOT TO TEST: WORKPLACE DRUG TESTING RULES VARY BY STATE
Over the past few years, state and local governments have materially expanded the legalization of medical and recreational use of marijuana. While it remains illegal under federal law, most states have legalized marijuana use in a number of circumstances, presenting several practical problems for PEOs and staffing agencies— especially those that conduct workplace drug testing. Employers should become familiar with these laws to avoid legal claims from employees in 2023 and beyond.
BY CONOR J. DALE, ESQ.
May 2023
SUPREME IMPACT: SCOTUS DECISIONS TO AFFECT PEOS THIS YEAR
The U.S. Supreme Court’s (SCOTUS) current term is already well underway, and there are several cases on the docket that will have important implications for PEOs. SCOTUS has already decided one workplace law case this term, and there are several remaining cases that will surely shape labor and employment law in 2023 and beyond. What do PEOs need to know about these recent and pending decisions and their impact on your clients?
BY JOHN POLSON, ESQ.
May 2023
STAY INFORMED: RECENT LEGAL DEVELOPMENTS MAY IMPACT EMPLOYERS’ USE OF ARBITRATION IN EMPLOYMENT CLAIMS
Use of arbitration and class-action waiver agreements allows for the private resolution of employment claims on an individual basis. While arbitration is not a low-cost alternative, it can be a very strong hedge against runaway jury awards and swollen class-action damages.
BY STEPHEN CALVERT, ESQ.
May 2023TRACKS
I walk into this May in deep gratitude for joyous celebrations. Like many of us, my daughter, Abby, will graduate from high school. It is a milestone that parents, grandparents, bonus parents, and all parental figures look forward to with delight. For many years, I took the anticipation of this day for granted. You see, in February 2021, reality hit like a brick wall. My daughter made “an attempt” that would forever change my thinking about mental health and wellbeing.
BY KRISTEN J. APPLEMAN
May 2023LIFELINE TURNED MIRAGE: THE ERTC STORY
There are only three authentic objections – every other objection is BS. No good deed goes unpunished. In the case of PEO clients this punishment is an extended one - with no end in sight. During the height of the pandemic, thousands of small and mid-sized businesses made an ethical and noble decision: keep their employees on payroll while weathering a once-in-a-generation economic catastrophe.
BY EVAN FALLOR
May 2023PRESIDENT BIDEN’S PROPOSED RULE ON RESTRICTIVE COVENANTS
Restrictive covenants, also known as non-compete agreements or post-employment restrictions, are contractual clauses that limit an employee's ability to work for a competitor or start a competing business after leaving their current employer. These covenants have sparked considerable debate and controversy.
BY GORDON M. BERGER, ESQ.
May 2023For our May edition, I would normally say “Welcome to the Cap Summit issue!” but I'll get to that in a minute. Instead, I'll say “Welcome to the National PEO Week issue!” Thanks to the combined creativity of Kerry Marshall and the work of Thom Stohler to have it recognized, we are celebrating the first-ever National PEO Week during our PEO Capitol Summit, May 21- 27.
BY PAT CLEARY
May 2023THE FUTURE OF WORK: 5 GLOBAL EMPLOYMENT TRENDS TO WATCH AND HOW TO STAY COMPLIANT
For companies and employees around the world, the last few years have created opportunities to go beyond traditional ideas of where and how work happens. But, with these new opportunities comes risk. Staying compliant in a world of work that is changing daily requires businesses to be vigilant and proactive.
BY MIRANDA ZOLOT
May 2023