Employers with PEOs Prepared for New Immigration Regulations

Employers could face a new wave of federal and state immigration laws once legislators reach agreement. Companies that work with professional employer organizations (PEOs) will be prepared for any new regulation that may emerge from the debate.

PEOs specialize in advising their business clients about how to practically comply with applicable state and federal employment regulations. ìSmall to mid-sized businesses cannot afford to ignore employment regulations, but they may not understand the ramifications until the government notifies them about a violation. PEOs advise them about the regulations and how to comply. Thatís a powerful service that most businesses want and need,î said Milan P. Yager, president of the National Association of Professional Employers Organizations (NAPEO).

The employment verification (I-9) process has special significance given the recent crackdown on illegal employment of unauthorized aliens by the Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE). The PEO typically verifies the employment eligibility and identity of all employees covered by its contract with a business. The PEO assures that a Form I-9 has been completed for each employee and that I-9 records are properly maintained.

ìBusiness owners concerned about illegal workers want to work with PEOs to help ensure their records are clear, accurate and well maintained,î Yager said. ìThey cannot afford a raid that could shut them down.î

PEOs also enable their business clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workersí compensation. They provide the professional advice and proactive practices that improve a businessís compliance and create a better workplace. While this support will not provide ironclad guarantees against errors and lawsuits, it will help to minimize the potential.

Solid human resources practices help a business minimize risk and create a positive working environment. PEOs work with business owners to formulate and follow HR practices that comply with current laws on hiring, firing and disciplining employees. For example, a PEO can provide guidance with respect to structuring compensation so that it adheres to the state and federal wage and hour laws. The PEO can also provide guidance on the rules and practices surrounding criminal and credit background checks, the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act, COBRA, ERISA, and the complex rules for 401(k) plans, such as the safe-harbor and nondiscrimination-testing provisions.

For more information on PEOs and the PEO industry, visit NAPEOís Web site: