80 LAWYER MONTHLY JULY 2023 reasons for termination. In the event of employment-related disputes or lawsuits, employment law attorneys can provide representation and support. They can assist in alternative dispute resolution methods, such as mediation or arbitration and, if necessary, advocate for the PEO or client company in court proceedings. Overall, competent employment law attorneys or teams ensure compliance, help navigate complex employment laws, and protect business interests. By partnering with knowledgeable employment law professionals, PEOs can effectively address legal challenges, mitigate risks, and maintain a legally compliant and harmonious employment environment. How far does a PEO’s liability extend when it comes to workers’ compensation? The extent of a PEO’s workers' compensation liability can vary, depending again on the specific contractual agreements and applicable laws. But generally, in a co-employment relationship, the PEO assumes workers' compensation coverage for the co-employed workers. The PEOs obtain workers' compensation insurance policies to employee benefits and retirement plans to workers, ensuring compliance with complex benefit laws, such as ERISA (Employee Retirement Income Security Act), or tax laws, can be challenging. And of course, with our legal practice, we see the challenges that manifest in terms of employee safety (OSHA) and more prominently, in the workers’ compensation system. It is fundamentally challenging to have operational actions (injuries, personnel action, employment-related conduct), which a PEO has to deal with and yet has only a degree of control over. While PEOs may scaffold an excellent safety program including well-trained supervisors, shape and implement employment policies, ultimately, the client company is the proverbial ‘boots on the ground’ to oversee operations. Thus, a challenge, and certainly an opportunity, is for the client company to execute the policies and procedures. It is also crucial that, in the times where there are injuries, incidents, or claims, that the PEO and client company have excellent and honest communication, as well as strong degree of trust and partnership. PEOs must stay up-to-date with ever-changing employment laws and regulations at the federal, state, and local levels. A good employment law attorney can provide ongoing counsel on compliance matters, including antidiscrimination laws, workplace safety regulations, workers' compensation requirements and more. They can help develop policies and practices that align with legal requirements and mitigate potential compliance risks. It is always important to have a good employment law attorney to guide PEOs and client companies in personnel actions including discipline and termination processes, addressing performance issues, and ensuring compliance with applicable laws, such as providing proper notice and documenting the PEOs must stay up-todate with ever-changing employment laws and regulations at the federal, state, and local levels. cover the co-employed workers and, barring any issues (such as noncompliance on the part of a client company), the PEO indemnifies the client company of liability. The PEO administers the claim, engages legal representation to defend the claim (depending on whether the claim is litigated or not) and ultimately brings the claim to resolution. As with most workers’ compensation coverage, there are often limitations or exclusions in coverage, such as serious and willful misconduct, as well as claims against the employer for retaliation in response to filing a claim. Coverage typically extends to resolution of a case in chief, and any tortious claims against the client company are often excluded. But again, PEOs often assist client companies in implementing risk management strategies and safety programs to reduce the likelihood of workplace accidents and subsequent workers' compensation claims. By promoting a culture of safety and providing guidance on best practices, PEOs aim to minimise risks and associated liabilities. PEOs must ensure compliance with workers' compensation laws and regulations, including obligations such as proper state reporting, insurance premium calculations, and coverage
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