The Source You Trust
Search
800-622-4123
  • About Us |
  • Careers |
  • Contact Us |
  • Learning Center |
  • Log In |
  • My Profile
    • My Contact Information
    • My Email Notifications
    • My Services and Tools
    • Company Administrators
    • Issues Tracking
  • Data Reporting
  • Industry Information
  • Residual Markets
  • Underwriting
  • Agents/Brokers
  • Insights
Search
  • My Profile
    • My Contact Information
    • My Email Notifications
    • My Services and Tools
    • Company Administrators
    • Issues Tracking
  • Data Reporting
  • Industry Information
  • Residual Markets
  • Underwriting
  • Agents/Brokers
  • Insights
  • About Us
  • Careers
  • Contact Us
  • Learning Center
Industry Information

Professional Employer Organizations (PEO) - Guide to State-Specific Requirements

Posted Date: October 26, 2021
    
Page Content

​ Industry InformationProfessional Employer Organizations (PEO)

Using the services of a vendor to provide all or some of their employees for a fee has become an increasingly popular option for employers. These arrangements serve to provide employers an alternative to the traditional management and administration of the employee workforce.

Information is available for clickable states below. Information for some states is unavailable where existing laws and rules do not specify treatment of these arrangements.

Employee leasing arrangements (also known as Professional Employer Organization arrangements) can cause problems related to the proper determination of workers compensation premium. This occurs when confusion exists as to which party, client, or vendor is the employer. Other issues include:
  • Proper classification
  • Payroll determination
  • Experience modification application
In 1991, the National Association of Insurance Commissioners issued the Model Employee Leasing Act. It supported the concept of multiple coordinated policies, whereby separate policies, classifications, and experience modifications are maintained for each client employer. In recent years, the growth of this industry and the enactment of state laws have changed the way these arrangements operate.

The state charts provide a current picture of the employee leasing issue at the state level. The charts include specific requirements related to:
  • Policy issuance
  • Data reporting
  • Experience rating
  • Endorsement requirements
NCCI Page Content Right Top
Related Links

To review a particular state's statutes for more details regarding the treatment of employee leasing companies, please see the Cornell Law Library's web site: http://www.law.cornell.edu/statutes.html

 

NCCI
Home
About Us
Careers
Contact Us
Website SLA
QUICK LINKS
Events and Programs
Learning Center
Online Invoice Service (View/Pay My Invoice)
Services & Tools Catalog
Solutions
LEGAL
Privacy Policy
Terms of Use

CONNECT WITH US

We use cookies on this site to enhance your user experience. By continuing to use this site you are giving us your consent to place cookies on your device.

Continue Give me more information