Some PEOs were started by HR Professionals, others were not. Because some staff-leasing firms' have had problems with fraud and mismanagement, HR professionals will want to evaluate them carefully. Some firms lacked enough insurance reserves to cover claims. Others went bankrupt or collected fees and disappeared, leaving clients to pay benefits and claims. Generally, these laws impose financial disclosure and reporting requirements.
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.