NAPEO
May 2025
THIS MONTH'S FOCUS: Legal and Regulatory Outlook
A Q&A WITH CHAIRMAN JASON SMITH
As Congress continues working on the budget reconciliation bill to extend the 2017 Tax Cuts and Jobs Act, Chairman Smith and his committee are leading the charge. He spoke with PEO Insider ® to share a little about his background, policy goals and explain why this legislation is so important for small businesses.
BY Chris Chaney
May 2025CONTENTS
FEATURED
SECURE ACT 2.0: LEGISLATIVE OPPORTUNITY TO HELP SMALL BUSINESSES
PEOs have another opportunity due to regulatory disruption - the SECURE Act and SECURE Act 2.0. Some aspects of the laws were effective immediately, but most were phased in over time, especially in January 2025, when auto enrollment became mandatory.
BY John Slavic
May 2025
THE EVOLUTION OF PEOS AS COMPLIANCE CHAMPIONS FOR SMALL BUSINESSES
The future is bright for the PEO industry. As federal and state actions continue to influence employers' day-to-day actions, PEOs continue to represent our small business clients, and our industry continues to grow in recognition and stature.
BY Elisabeth Shaw, Esq.
May 2025
PAY EQUITY IN THE SPOTLIGHT: HOW STATE-LEVEL CHANGES COULD IMPACT YOUR CLIENTS
While state laws continue to gain momentum, federal action on pay equity remains uncertain. The Paycheck Fairness Act, which would have strengthened pay transparency and reporting at the national level, has wavered in Congress multiple times.
BY Lillian M. Chavez, Esq.
May 2025
TAKE BACK WHAT’S YOURS: A PEO’S GUIDE TO WORKERS’ COMPENSATION SUBROGATION
At its core, subrogation allows a PEO to recover workers’ compensation benefits—both indemnity and medical—paid to an injured worker when a third party is ultimately responsible for the injury.
BY Dustin W. Osborne, Esq.
May 2025
CHANGES AT THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
The EEOC came out with new guidance on “diversity, equity, and inclusion-related discrimination.” This guidance contains a new interpretation on DEI initiatives intersect with respect to anti-discrimination protections.
BY Gordon Berger, Esq.
May 2025
IS DEI LEGALLY DEAD?
While it may be premature to sign DEI’s death certificate, winds have clearly shifted. Fundamentally the law has not; discrimination based on protected class status was already illegal, being all-welcoming remains legal (if sometimes unpopular).
BY Kerim Fidel, Esq.
May 2025
THE ROTH CATCH-UP MANDATE IS COMING FOR YOUR 401(K) PLAN
While the new Roth catch-up requirement can be described fairly simply – or at least I tried to do so in the prior section – in practice this is going to be harder to administer than it sounds.
BY Michael Hadley, Esq.
May 2025ADVERTISEMENT
TRACKS
“When our industry shows up in D.C. or a state capital, we’re not just advocating for PEOs — we’re standing in for thousands of small employers who can’t be there themselves.”
BY David Feinberg
May 2025THE ART OF WRITING: AMIE REMINGTON’S JOURNEY AS AN AUTHOR
For the past few years, Saturday mornings for Amie Remington looked a bit different than most. The 20-year PEO industry veteran spent the early hours of the day writing, editing, and re-writing drafts of her recently published book, The Art (and Science) of HR: A Legal Guide for New Managers, CEOs and Leaders in Between.
BY Chris Chaney
May 2025KEY COMPLIANCE DEVELOPMENTS PEOS MUST NAVIGATE IN 2025
The 2025 compliance landscape presents significant challenges for PEOs but also creates opportunities to deliver exceptional value to clients.
BY JENIFER DUGGAN, J.D., SPHR-CA, SHRM-CP
May 2025
“The PAC allows us to establish, maintain and strengthen relationships with lawmakers.”
BY Casey M. Clark
May 2025NEXTEP: A PEOPLE FIRST COMMITMENT
For its nearly three decades of existence, Nextep has prided itself on its people-first commitment. That mantra has extended both to its employees as well as to the communities it serves in the Norman, Oklahoma area and beyond. For years, Nextep employees gave back in myriad ways, often on their own time and their own accord.
BY Evan Fallor
May 2025PEOS AS KEY PARTNERS IN AI COMPLIANCE AND RISK MANAGEMENT
As trusted advisors, PEOs are uniquely positioned to guide their clients through the complexities of integrating AI into HR operations. The goal should be to improve efficiency, but also to ensure that legal and ethical responsibilities are met.
BY CRISTINA FAHRBACH-CONNORS, J.D., PHR
May 2025Are Your Customers RIF-Ready?
Perhaps the most scrutinized part of any RIF – and therefore the most critical – is the selection process used to determine which employees will be let go.
BY John Polson, Esq.
May 2025WORKERS’ COMP. ON OUR MINDS: UPDATES & TRENDS FROM KEY STATES
The first few months of 2025 have been filled with legislative and regulatory activity in the states. One particular area of interest to PEOs is workers’ compensation insurance.
BY Hannah Walker, Esq.
May 2025FROM WISH LIST TO BILL TEXT
Even though reconciliation is a partisan political exercise, NAPEO continues to take a bipartisan approach to federal advocacy.
BY Alex Milliken
May 2025Finally, Some Good News About ACA Reporting: Less Paperwork (potentially)
In contrast to many other laws, the Paperwork Burden Reduction Act is a law that might actually do what it claims—reduce paperwork!
BY Malcolm Slee, Esq.
May 2025THE HIRING COMPLIANCE TIGHTROPE
States like California, Colorado, Illinois, and Washington have implemented strict pay transparency laws, with penalties for non-compliance reaching thousands of dollars per violation.
BY Joshua Siler
May 2025ADVERTISEMENT
