Tag Archives: wrongful termination

How PEO helps businesses gain control

We are often perplexed by companies that come to us looking for a solution and seem to be under the misguided perception that PEO (professional employer organization), sometimes referred to as employee leasing, would mean a loss of control.

On the contrary, PEO allows business owners to know exactly, to the penny, how much their total labor burden is or will be.

Currently, their payroll processing, benefits costs and risk management are in differing departments or services. With PEO, it all comes together, neat and tidy. The rates charged, plus benefits, are already pre-negotiated. In addition, the employer risk is shifted entirely to the PEO. Meaning, if there is a workers comp claim or unemployment claim or workplace tort for harrasment or wrongful termination, that responsibility all falls upon the PEO.

Where does my liability start and where does the PEO pick up?

With PEO – Professional Employer Organization, the owner/client is not liable for workers compensation nor unemployment claims.  In some instances, the PEO offers EPLI (employment practice liability insurance) to cover workplace torts such as sexual harassment suits or wrongful termination suits.