NAPEO
May2022
THIS MONTH'S FOCUS: Legal & Regulatory
THE TANGLED WEB OF CLASSIFYING EMPLOYEES & LIMITING PEO LIABILITY FOR MISCLASSIFICATIONS
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.
BY MELISSA L. CIZMORRIS, ESQ.
May2022CONTENTS
FEATURED
2022 IS SHAPING UP TO BE ANOTHER BLOCKBUSTER YEAR OF CHANGES FOR HEALTH PLANS
In recent years, Congress, the federal agencies, and the Trump and Biden administrations have taken significant actions affecting health and welfare plans, and 2022 promises to be no different. This article discusses some of the primary issues we expect PEOs to be grappling with over the coming months with respect to their PEO-sponsored group health plans.
BY MALCOLM C. SLEE, ESQ. AND KATELYN DAVIS, ESQ.
May2022COVID PAYROLL TAX BENEFITS: ISSUES TO CONSIDER FOR 2022
Although the tax credit and tax deferral parts of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and subsequent legislation expanding certain parts of the CARES Act have expired,1 some of its effects (some advantageous and others not) on PEOs continue through 2022. This article discusses the opportunities that remain for PEOs and their clients, as well as the risks not to be forgotten.
BY BRIAN NUGENT, ESQ.
May2022EMPLOYERS’ WORKPLACE SAFETY & HEALTH OBLIGATIONS POST-COVID
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.
BY KRISTINA T. BROOKS, ESQ. AND CATHERINE A. CANO, ESQ.
May2022FEDERAL AGENCIES’ STEPPED-UP EFFORTS TO ENFORCE LABOR COMPLIANCE COMPEL EMPLOYERS TO TAKE NOTICE
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.
BY STEVEN A. PLETCHER, ESQ. AND A. JACK FINKLEA, ESQ.
May2022INTEGRATING COMPLIANCE INTO THE PEO SPACE
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.
BY ELISABETH SHAW, ESQ.
May2022REWRITING U.S. LABOR LAW THROUGH THE PRO ACT & OTHER AVENUES: IMPLICATIONS FOR THE EMPLOYER COMMUNITY
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.
BY MICHAEL J. LOTITO, ESQ., DAVID S. OSTERN, ESQ., AND MICHELLE L. DEVLIN, ESQ.
May2022UNIQUE CHALLENGES FOR PEOS SUBJECT TO STATE CONSUMER PRIVACY LAWS
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?
BY VANESSA WU, ESQ. AND USAMA KAHF, ESQ.
May2022TRACKS
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.
BY BRUCE CORNUTT
May2022CYBERSECURITY FOR PEOS
With the recent rise of cybercrimes, PEOs, like many businesses, must now recognize that data security in cyberspace and in their own systems is of the utmost importance for the safety of not only themselves but also for their clients.
BY
May2022LONG-TERM LEAD NURTURING
The prospecting your team does today often doesn’t result in closed business for several weeks or months. How do you keep a prospect engaged for an extended sales cycle? How do you keep your qualified leads from going into a “black hole?” Longer sales cycles and shortened attention spans are often deal-breakers, but lead nurturing gives you an advantage when it comes to converting prospects and building trust.
BY DEAN MOOTHART
May2022When I was at the National Association of Manufacturers (NAM), at our weekly all-staff meetings, our trade policy VP, Howard Lewis—a brilliant guy with a wry sense of humor—would always start out his report with the same deadpan comment: “We are very busy.” Because he was universally beloved and respected, it always got a laugh.
BY PAT CLEARY
May2022NAPEO FEDERAL GOVERNMENT AFFAIRS
Since 2018, NAPEO has found itself caught up in a series of federal legislative and regulatory issues.
BY THOM STOHLER
May2022PEO 2.0
Cognition: The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses. Digital disruption has transformed the way businesses operate. Consider this: The world’s largest retailer has no physical stores, the world’s largest hotelier owns no hotels, and the world’s largest taxi company owns no cabs. Amazon, Airbnb, and Uber have all disrupted their respective industries. Looking back, the level of disruption resulting from the recent wave of digital transformation is truly astounding.
BY PAUL CATALDO
May2022PEO INDEX REFLECTS UNIQUE ECONOMIC ENVIRONMENT
Looking at this month’s PEO Index, it appears at first glance that gross domestic product (GDP) is taking off and the PEO Index is lagging. However, the unique employment environment of today belies first impressions.
BY JOHN J. SLAVIC
May2022WHAT HAVE BEEN THE GREATEST CHALLENGES IN STARTING UP YOUR PEO?
Decent launched in Austin, Texas, last year. Our team comes from the world of...
BY
May2022WHY NOW IS THE TIME FOR PEOS
Scholars, leaders, and researchers often speak about how widespread catastrophes or crises can lead to re-evalutions, new perspectives, and dramatic changes that affect various areas of society. COVID is a prime example that certainly fits into this scenario. For business leaders, it illuminated the importance of a sophisticated human resources department. It drove home the need to focus on people and develop a robust people strategy for business success.
BY CHRIS CHANEY
May2022