PEO companies, also known as Professional Employer Organizations, are a huge benefit to the companies that use them. Benefits like group healthcare, direct deposit, background checks, and discounted workers' compensation insurance appeal to just about everyone. But each company is unique, and has its own set of needs. PEOs can appeal to companies of almost any size and in any industry. Here are a few examples of how they help employers.

PEO HR & Compliance Benefits

As we climb out of the pandemic and more employees return to work, we’re fielding more calls from employers asking, “can I require COVID test results, or testing on my employees before they return to work.” According to recent guidance from the Equal Employment Opportunity Commission (EEOC), the answer is probably yes. 

The EEOC has stated that employers can generally require employees to undergo viral testing as long as the testing procedure complies with the Americans with Disabilities Act (ADA). There are parameters and guidelines, even by particular state laws - but this has now become another HR issue where THE RIGHT PEO can help.

Medical marijuana laws have also created confusion and a number of conversations with employers recently. One example was a pool service company, where a valued employee of almost 20 years suffered an injury while carrying supplies to a customer. Before going to receive treatment, the employee acknowledged to his employer that he would fail the drug test, but had a medical marijuana license. Concerned if benefits would be paid for the injury and the future status of the employee, the employer wanted understanding of the laws and potential liabilities for their business.

With courts in multiple states concluding that the ADA does not protect someone using a federally prohibited drug - marijuana still classified as a Schedule I substance (along with heroin, LSD, and ecstasy), falls under this category. However, recent court cases could create change in the near future on this evolving topic.

PEO Services for General Contractors

General contractors who subcontract all, or the majority of their work can many times find it difficult to get workers’ compensation coverage. That’s because insurers view the potential liabilities that come with uninsured subcontractors and the small amount of insurance premium collected on a GC policy. For almost 20 years now, we’ve provided general contractors access to workers’ compensation insurance through special programs aligned with our PEO partners. Even better, these policies eliminate work comp audits saving employers time and unexpected costs.

New Moving Companies

With the pandemic fueling a gig economy, people are on the move and the moving business is booming. Historically, new moving companies have a difficult time finding workers’ comp coverage. Between back injuries and driving accidents, the standard insurance market understandable prefers to see at least a few years of coverage history. A businesses’ claims report and safety manual can quickly identify the investment in injury prevention, or a need for help. ELQ has a network of PEO companies from across the country who specialize in new moving companies, providing access to coverage and great risk management services.

Why ELQ?

Need help dealing with new laws regarding COVID testing, or employees with medical marijuana licenses? We have solutions. Are you a GC in Charlotte, or starting a new moving company in Dallas? We can help. With over 900 PEO providers in the US, specializing in different industries, employee size groups, services and more – give us a call. We’ve done the research and vetting on hundreds of PEO programs from across the country since 2001! As one of the largest and oldest PEO brokerages in the country, let’s find out how a PEO could benefit your business.

About the Author: Mike Burgelin

With two decades of experience in the PEO Employee Leasing industry, Mike Burgelin is an expert in helping business owners maximize their growth potential through the outsourcing of human resources and payroll tasks. He is also a fully licensed insurance agent, whose skills and knowledge in workers’ compensation insurance help his clients save over $40 million in premiums each year.