Who is responsible for workers compensation?
Many states recognize the PEO as the employer of work site employees for purposes of providing workers’ compensation coverage. Does a PEO arrangement impact a collective bargaining agreement? No. PEO’s work equally well in union and non-union work sites. The National Labor Relations Board (NLRB) recognizes that in co-employment relationships, work site employees are appropriately included in the client employer’s collective bargaining unit. Where a collective bargaining agreement exists, PEO’s fully abide by the agreement’s terms. PEO’s endorse the rights of employees to organize, or not organize, under state and federal laws. • Do PEO’s need to be licensed to provide insurance benefits to their workers? Like other employers, a PEO may sponsor employee benefit plans for its work site employees. Such benefits may be mandated by law, such as workers’ compensation and unemployment benefits.
