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 New Legislation Governing Professional Employer Organizations (PEO) 

New York State has effectuated legislation governing Professional Employer Organizations (PEO) which are rapidly becoming popular with small businesses (typically less than 15 employees) as an alternative to dealing with issues of managing employees, employee benefits, 401(k) plans, and the other myriad and burdensome compliance laws required by state and federal agencies. The PEOs differ from a temporary staffing service or payroll service. Instead, the PEO becomes a "co-employer" with the business it works with and takes over such tasks as hiring and firing, payroll, employee benefits, and human resources issues, while the client company retains day to day control of the work force in carrying on the companys trade or business.

New York Law governs the PEOs which provides for a written contract describing the services to be performed by the PEO and also governs the registration of such PEO and requiring certain financial security standards to be met by the PEO.

Evans & Fox LLP is available to answer further questions you may have about Professional Employer Organizations and to discuss whether a PEO may be right as an alternative for your business. Please contact us at 585-241-5999 or e-mail us at revans@evansfox.com. We will be happy to assist you in your analysis.

 

 

 

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  Did you know that Evans & Fox has been actively involved in community service in Upstate New York? Read about us on Attorney Profiles.  
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