Worksite Liability! Employment Risk!
It All Comes Down to the Worksite
Every PEO’s goal is to help client companies succeed. The PEO’s infrastructure, strategy, and technology are designed to help it meet this goal. All of the PEO’s people work towards this goal. PEOs develop policies, procedures, and workflows to provide HR services, benefits, payroll, regulatory compliance, and much more to the client, all geared towards allowing the people at the company to do what they do best. In doing so, PEOs bear risk and liability.
PEO success depends on client success, and when it comes down to it, client success can be measured by what happens at the worksite. Problems at the worksite can mean problems with the company, and problems for the PEO. The PEO must keep a handle on employee relations and employment law compliance at the client worksite without always being there. Employee relations issues can easily develop into employment liability issues, ranging from workplace squabbles and hostile workplace claims to Fair Labor Standard Act (FLSA) violations and wrongful discharge claims. It can be very scary.