what is professional employer organization mean
1. What is a Professional Employer Organization (PEO)? A Professional Employer Organization (PEO) is the new term for âstaff leasing companyâ and is regulated by the department through Chapter 91 of the Texas Labor Code. The department issues licenses, regulates compliance with the law, and has authority to sanction a licensee for proven violations. A PEO is defined as a business entity that offers professional employer services.