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Prescription for a Robust Healthcare Program

What makes for a robust PEO healthcare program? Well, it would need to have qualities that make it strong, productive, and dynamic.

There are generally three things that contribute to this. First, strength. The plan needs to have a strong foundation that allows it to serve a broad array of participants. PEOs can achieve program strength by offering plan choice. If the range of plans provides options and benefit levels that cover a wide variety of jobs, pay ranges, and locations, enrollment will remain strong and keep the plan strong.

Productivity. When the PEO keeps healthcare costs in check, the program is productive, meaning that participants get the most bang for their buck. A variety of things can help with this, including new distribution channels, performance monitoring, and strategies such as using health savings accounts, health reimbursement arrangements, and flexible spending accounts. These tools also help the PEO enhance its healthcare value proposition.

Being dynamic. This means staying abreast of the marketplace, client concerns, and developments in the healthcare arena to implement plan design changes, make contribution changes, re-evaluate vendors, and update delivery systems.

All of these things will contribute to making your healthcare program robust: strong, productive, and dynamic.

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Legal Currents

NLRA Joint Employer Status

With the immediacy of processing payroll, solving clients’ day-to-day human resources headaches, and maintaining quality benefit plans, keeping track of developments under the National Labor Relations Act (NLRA) is just not a priority for most PEOs. Following a very recent decision by the D.C. Circuit Court of Appeals concerning joint employment, however, it is high time for PEOs to dust off their copies of the NLRA and re-engage on this very consequential employment law. For starters, readers should recall that the NLRA applies to nearly all private-sector employers regardless of whether or not the employer has any union-represented employees at all.

Human Resources

Curbing Leave Abuse under the FMLA

It seems every HR professional is destined to hear about the employee who just seems prone to abuse every benefit, including leave that is potentially protected under the federal Family and Medical Leave Act (FMLA). So, when you get that call from an exasperated worksite employer complaining about the employee’s latest attempt to abuse the system, what assistance can you provide? This article will highlight a few things you might consider.


Fraud Alert: The PEO Industry is Being Targeted

A few months ago, I was having dinner with a client—a CEO of a PEO and his vice president of sales—when the CEO’s phone rang. He took one look at his phone and said, “It’s the FBI. I have to take this.” Really!? Did he just say the FBI is on the phone? The F-B-I. The Federal Bureau of Investigation. You are telling me the highest-ranking law enforcement agency in the U.S. is on the phone? I have a friend who was 20-plus years with the FBI. He will tell you that his calls are usually not good news.

Finance & Accounting

Payroll Best Practices for PEOs

Whether you have been in business for 12 months or 12 years, you can always improve. In many cases, you learn primarily from your mistakes, but there is also a wealth of information available through your peers, NAPEO, and even from your clients. Below are some tips I’ve developed over my 10 years as a CFO, which I wish I had known from the start.


Inside Word

Transparency—It’s Just Not That Clear

You’ve probably seen the action movie or cartoon where the hero attempts to thwart the villain by pushing him over the edge of the cliff, only to find out that the rope attached to the bad guy’s belt is tangled around his own ankle. Before you know it, the well-intentioned hero, along with the bad guy, are both clinging for their lives onto the edge of the cliff. Is this you when you are explaining to prospects why your company is the true hero in the market and your competitor is out to scorch the earth with their predatory business methods?

NAPEO Notebook

Member Favorites, Member Diversity, and Relevant Speakers Patrick J. Cleary

By now you should have received our mailing highlighting the results of our recent member survey. (You can find the full results at We’re proud of the results because—as I mentioned in last month’s column—the level of satisfaction with your trade association and with the excellent NAPEO staff (present company excluded, of course) was at its highest levels during my time here. I was gratified by that. Our membership honcho, Denise King, has a summary on page 47 of this issue, but there were a few things I wanted to point out.


Department of Labor Rejecting Form 5500 Filings from 2016 Thom Stohler

Starting on Tuesday, February 26, PEOs began receiving notices of rejection (NOR) from the U.S. Department of Labor (DOL) for their 2016 Form 5500 filings. NAPEO believes that all PEOs that masked or otherwise coded their clients on their 2016 Form 5500 filings received NORs from the DOL.

Statehouse Update

Issues in the States Daniel Harris and Michael Kreiter

The year is young but most state legislatures are in session and in high gear. This is our busy time in state government affairs and we always look forward to implementing our state action plan, getting favorable results, and being in a position to respond to threats from across the country. Below is a recap of our activities so far.

Capitol Comment

Lots Going on That Could Affect PEOs Thom Stohler

The lack of apparent action in Congress does not mean there’s nothing going on. On the contrary, there’s a great deal of activity in both Congress and the administration. Below is a roundup of legislative and regulatory activity that could impact the PEO industry.

Legal Q&A

What You Need to Know About Overtime, EEO-1 Reporting Farrah L. Fielder, Esq.

Q. The latest on overtime has been released after we have waited for it for several years. What do we need to know? A. On March 7, 2019, the Department of Labor (DOL) announced its proposed rule on overtime...

PEOs in the Community

Erigo Employer Solutions Chris Chaney

A few years ago, Charlie Vance and his wife Katherine did something many parents with young families do: They hired a professional photographer to take a family portrait. It was after this experience that Vance realized how expensive it is to have a high quality, professional family portrait taken. He began to wonder how less fortunate families could ever afford it.

Special Report

2019 NAPEO Member Survey Shows a Vibrant Association Denise King

As part of a comprehensive strategic planning process, NAPEO conducted a member-wide survey earlier this year to gather feedback on performance and expectations for the years ahead. The survey was conducted by independent third-party firm Industry Insights. Overall, the results show an association with highly engaged members who are happy with the services they receive.

The Big Picture

Clear Rules of the Road on Data Privacy Thomas J. Donohue

At the U.S. Chamber of Commerce, we believe it is possible to both protect individual privacy and promote technological innovation. That’s why we unveiled model legislation this month that secures important new data privacy rights while providing businesses with the regulatory certainty they need to grow our economy and better serve consumers. 


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