According to a National Association of Professional Employer Organizations press release, the bill will require PEOs to become licensed by July 30, 2009. The legislation will establish a licensing program that provides employer status to PEOs under the state’s Insurance Commission, ensuring complete workers’ compensation market flexibility in advance of the opening of the competitive market in July 2008.
The NAPEO said no law before this one required PEOs to secure a license from the state, file audited financial statements every year, or maintain a minimum of working capital. PEOs want regulation in order to protect clients and their employees.
“The bill paves the way for the PEO industry to serve even more employers and workers in West Virginia, because it gives PEOs the statutory certainty they needed from the state. Companies that want to benefit from PEOs’ human resources services and offer their workers the benefits PEOs provide will have the assurance that PEOs have met the state’s requirements, including financial standards. That will be good for all concerned,” said Milan P. Yager, executive vice president of the National Association of Professional Employer Organizations, in the press release.
PEOs provide outsourced human resources services to businesses and nonprofits including services for workers’ compensation programs, employee benefits, Section 125 plans, and retirement benefits.
More information can be found at www.napeo.org .
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