How to PEO’s Protect Us from Fines and Penalties from the DOL and from E.R.I.S.A. Violations?
You are going to get sued as an employer – that is the world unfortunately. Running a business with employees is really hard and the state, federal and even local laws continue to carry more enforcement and bigger penalties – and that’s before we get into form violations in PTO, overtime, sex discrimination, pay discrimination, 1099 vs. w-2 suits, Job offering, ACA reporting, etc.
PEOs actually protect you from most of this – their HR and legal staff are their to help you avoid these suits (even class actions suits). They protect you three ways actually; The Call – how do I fire this person without getting sued, The Documents – policies and documents in place in advance to pre-empt suits and protect you, and actual HR lawsuit insurance protection called EPLI coverage. Lastly, they don’t just do it because they say they will like some vendor – they are actually liable also and will be sued along with you, so they have skin in the game to protect both you and themselves.
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