Professional Employer Organizations Helps Languishing California Employers

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                Professional Employer Organizations Help Languishing
                California Employers
                The Labor Department recently released the latest employment figures, and they don't look
                good. The jobless rate rose in more than half the states, and the national Unemployment
                Rate remained unchanged at 8.2%. In California, the jobless rate has remained at a virtual
                standstill the entire year, still holding at 10.7%, down just .2% since January.

                With health care reform, an election year and an uncertain economic future, many
                employers are loathe to begin hiring again. They prefer to tread water until the economy
                clearly starts to rebound. Beyond hiring, employment risks abound, thanks to a tireless
                legislature and active pro-employee lobby. Particularly in states like California, labor law
                regulations and expensive insurance premiums weigh heavily on the minds and pockets of
                small business owners.

                While many California employers are taking a wait-and-see approach, others are turning to
                Professional Employer Organizations (or PEOs) to help them navigate these difficult financial

                What is a PEO?

                Professional employer organizations (PEOs) enable clients to cost-effectively manage their
                human resources, employee benefits, payroll and worker’s compensation. By outsourcing
                these complicated and burdensome activities to the PEO, clients focus on their core
                competencies to maintain and grow their bottom line.

                A PEO legally assumes the insurance and tax-filing responsibilities for their clients, officially
                becoming the “employer of record”. Beyond taxes and insurance, the PEO assists clients
                manage the entire "life-cycle" of their employees, from hire to term. This includes:

                                 Recruiting
                                 New Hire Packets
                                 Training
                                 Job Descriptions
                                 Employee Files and Handbooks
                                 Employee Benefits
                                 Voluntary Insurance Products
                                 Payroll and Tax Administration
                                 Workers' Compensation Insurance
                                 Safety and risk management

              9000 Sunset Blvd, Suite 900, West Hollywood, CA 90069
     | | 800-850-7133
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                Employment Know-How

                At the turn of the new year, over two dozen new employment regulations were signed into
                law in California. These ranged from pay and rest periods procedures, to pregnancy leave, to
                paycheck stubs and new insurance guidelines. It is virtually guaranteed that small employers
                located in the state lacking in-house HR expertise will be unfamiliar with all the new
                regulations and may unwittingly violate the law.

                PEOs employ a range of human resource and California employment experts that track these
                regulations and communicate them back to the clients in real-time. As an example, following
                the passage of the Affordable Care Act ("Obamacare") and the subsequent Supreme Court
                decision, CPEhr's Benefits and HR experts spent dozens of hours reviewing the details of the
                law and the implications for small business owners. It is this pro-activity that helps clients
                rest assured they remain in compliance.

                A Financial Boon for Small Employers

                In addition to employment compliance, PEOs enhance the profitability of their client
                companies. By enrolling thousands of employees under one umbrella, the PEO is able to
                offer economies-of-scale typically available to only the largest employers. Especially in states
                like California, which boasts one of the highest workers’ compensation and medical
                insurance costs in the nation, these economies-of-scale can significantly impact employers’
                bottom line in numerous areas:

                     1. Clients can trim their internal HR infrastructure by maintaining a single point-of-
                     contact with the PEO, or to completely rely on the PEO to manage its HR administration.

                     2. The client can reduce turn-over, recruiting and re-training costs by providing
                     Fortune-500 style employee benefit plans, advanced management training, and
                     employee incentive programs.

                     3. Costs related to the monitoring of, and compliance with, employment laws are
                     reduced, as are the costs of failure to comply with such laws.

                     4. The PEO provides time savings by handling routine and redundant human
                     resources tasks for its clients, such as benefits administration, payroll and tax
                     processing, COBRA, unemployment administration, and the like. This enables the
                     business owner to focus on the company’s core competencies and to grow its bottom

              9000 Sunset Blvd, Suite 900, West Hollywood, CA 90069
     | | 800-850-7133
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                       5. By pooling thousands of employees, the PEO offers discounted medical insurance
                       rates and a significantly more robust benefit offering.

                       6. Clients access the PEO’s workers’ compensation insurance programs, coupled with
                       advanced safety training and claims administration. These insurance programs typically
                       lead to the reduction of workplace injuries, and lower insurance premiums over time.

                   While the economy remains uncertain and employers continue to watch and wait,
                   Professional Employer Organizations have become an attractive solution for California
                   employers looking to minimize their risks and reduce employment overhead. If you would
                   like to learn more about how a PEO can help your business, contact CPEhr today.

                   About CPEhr

                   Founded in 1982, CPEhr is a California-based Human Resources Outsourcing firm, offering
                   businesses an alternative for handling many HR responsibilities.

                   Beyond benefits management, CPEhr specializes in the following key employment areas:

               •     Employment administration
               •     Management training
               •     Employee relations
               •     Payroll and employment tax compliance
               •     Workers’ compensation insurance
               •     Claims and risk management
               •     Safety consulting
               •     Comprehensive employee benefits programs.

                   Headquartered in Los Angeles, CPEhr has been ranked by the Los Angeles Business Journal as
                   one of the “Best Places To Work”, four years running. It is currently one of the largest
                   privately held HR Outsourcing firms in the state.

              9000 Sunset Blvd, Suite 900, West Hollywood, CA 90069
     | | 800-850-7133

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Description: Learn how Professional Employer Organizations can help troubled California employers reduce insurance cost and employment risks, and offer improved benefit options to their employees.