Some laws deal specifically with capitalization for workers' compensation and employment insurance. Being regulated has cut down on the number of complaints from the public. Florida has licensed 214 PEOs since it passed the Employee Leasing Licensing Act in 1991. In Florida and Texas both early regulators of PEOs most complaints have involved minor misdeeds, such as filing late reports, rather than unsound operations. The PEO industry also has its own voluntary regulation.
Certification involves passing a three hour test.
To become accredited, firms must meet ethical, financial and operational standards. He recommends examining PEOs' history and growth, number of offices, number of workers under management and for public companies financial statements and stock prices. Look for a PEO that emphasizes HR services over saving money and one with clients in various industries so it will be more recession-proof, says Dawn Dempsey, executive vice president at Alliant Employer Services. Interview some of the people you're going to work with. Talking to clients will also be revealing.