Workers’ comp law is different in every state and even complicated. So much so, that staffing companies may avoid doing business in states such as California or New York. Multi-state staffing companies may not realize they can get state “carve-outs” through a professional employer organization (PEO) or employer of record (EOR) to cover workers’ comp and other HR functions.
Carve outs work best when the staffing company wants to “carve out ” a state or a group of states for the PEO/ EOR to manage because their primary work comp solution (Carrier or State Fund) is not economical in that particular state. The number of employees at the staffing company client must be sufficient to cover the risk and the clients must have a good work comp history. The payrolls must also be distinct. A staffing company can’t shift temporary employees from one class code to another at the same client or from one client to another.
If you’re expanding to other states consider carve-outs as part of your strategy. Work Comp Staffing Solutions can help introduce you to the best PEO’s and other work comp solutions.
Visit our web site at www.StaffingCompSolutions.com, call us at 202-302-1212, or email us at david@StaffingCompSolutions.com for more information about all our staffing and workers’ comp offerings.
Sincerely
David Schek
President
StaffingCompSolutions.com