Partnering with professional employer organization, or PEO, will provide your organization with comprehensive human resource department outsourcing, helping with your HR issues, employee benefits, payroll, and regulatory compliance concerns. Your agency may experience liability concerns that must be addressed, and peo insurance is designed specifically to provide coverage for several exposures, many of which are not covered by the more basic insurance policies you may already have purchased.
Contractually, a co-employment arrangement exists between your business and the PEO of your choosing. The PEO will share certain employer responsibilities with your company, which is why having insurance protection in place to cover the cost of any damages incurred from outsourcing to a PEO is essential. The upside of working with a PEO is that it will optimize HR practices for client companies such as yours, and having employment practices liability insurance (EPLI) in place offers more valued protection.
To prevent employee lawsuits from occurring you must educate your managers and employees so that you minimize the types of issues that crop up in the first place. We suggest instilling effective hiring and screening programs to avoid discrimination in hiring.
You should also make employees aware of what steps to take if they are the object of sexual harassment or discrimination by a supervisor or co-worker. Make sure supervisors know where the company stands on just what behavior is not permissible.
Proper classification for employment agencies is crucial
Temp staffing agencies offer temporary workers, as opposed to employment agencies, which provide permanent employees to businesses in need. Temp agencies remain the employer of any workers they place, so they remain liable for the actions of those workers. An employment agency’s liability ends once they place an employee with a client.
Temp agencies will benefit from using peo services because of the type of relationship they have with their staffing placements. They fully understand many of the issues and concerns related to providing temp staff workers to an array of clients. This includes placement in diverse industries, so while a peo concentrates on HR and other related areas, the temp agency can better focus on placement and delivery of staff to their clients.
PEOs and peo insurance are a great addition to many companies that enjoy the benefits of outsourcing certain duties. Talk to an agent familiar with temp agencies for determining what will work best for you.