by David Schek | Mar 18, 2013 | Professional Employer Organization (PEO), Staffing Company, Workers Comp, Workers' Compensation Insurance
While it is hard to generalize from one legal case, this one may help you to understand why partnering with a Professional Employer Organization (PEO) can save you time and money.
A Customer Service representative sued her employer after she was fired for having anxiety attacks which forced her to take time away from the job. The employee was fired after taking a few days off without telling the employer. She was subsequently awarded 16M because the (California) court felt she earned this amount in damages (please do not ask me to explain this amount) Actually she was awarded only 5.1M, but the court added treble damages so the total was 21M. See this case/link below
http://www.swrnn.com/2013/02/15/los-angeles-woman-fired-for-having-panic-attacks-awarded-21-7-million/
The take away from this story is two fold. First California can be a very expensive state to employ people, Second, employing people these days without the use of a human resource specialist like a PEO is inviting trouble.
Had the employer been using a Professional Employer Organization (PEO) they may not have made this personnel mistake, and more importantly, certainly would have had a qualified human resource/ legal partner to help deal with the aftermath of this management decision.
Please feel free to contact Work Comp Staffing Solutions at 202-302-1212 to discuss your PEO needs and how you can get a worker’s compensation quote. Also visit us at www.StaffingCompSolutions.com to learn more about PEO’s and other workers compensation insurance solutions.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
by David Schek | Mar 11, 2013 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
I speak to dozens of staffing company owners each month. All size companies and all niches. Almost all of them are seeing their payroll costs increasing and are not sure what to do about them. There are 3 reasons that this is happening now:
- Increased healthcare costs
- Higher workers compensation insurance rates
- Increased state unemployment rates
As a former staffing owner, I know the last thing I ever wanted to do was to talk about having to increase my prices to a client. But as an industry, we are at that “tipping point” where workers compensation and other key payroll costs like Obamacare and unemployment costs are forcing staffing owners to have that tough conversation about raising prices.
Having managed many of these “sensitive ” client conversations successfully in the past, I have found some great ways to delicately talk about pricing issues- especially when it comes to workers compensation insurance rates and overall payroll costs. The key is to use hard data to reflect what is going on in the market place.
Below is a good article with hard data describing the trends for workers compensation insurance rates.
http://www.iii.org/facts_statistics/workplace-safety-workers-comp.html
Please feel free to call me at 202 302-1212 or visit us at www.StaffingCompSolutions.com so we can discuss this very important issue and ways to make you more profitable.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
by David Schek | Mar 5, 2013 | Professional Employer Organization (PEO), Staffing Company, Workers Comp, Workers' Compensation Insurance
Last weeks blog generated ALOT of feedback from staffing owners who could relate to the additional pressure or “HEAT” they feel these days about workers compensation insurance. One of the staffing owners said, “Everyday I feel like I am one accident away from losing my business.”
During the first 2 months of 2013 we helped many staffing companies with their workers compensation insurance challenges. Here are two examples of the staffing companies we helped in February:
- A 10M light industrial day labor staffing company that needed to generate the payroll themselves- and was turned away by nearly every carrier. So we found a PEO solution that allowed them to generate their own payroll and included lowering their deductible from 250K to 50K.
- A start up medical staffing medical company that needed workers compensation insurance coverage in 10 states and could not afford hefty deposits as a new company. Their solution included a guaranteed cost program using PEO with Zurich insurance
Please contact us today at 202-302-1212 or visit us at www.StaffingCompSolutions.com and we would be glad to share more success stories with you. Most importantly, we will help you solve your workers compensation insurance challenges.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
by David Schek | Feb 27, 2013 | Professional Employer Organization (PEO), Staffing Company, Workers Comp, Workers' Compensation Insurance
Since the first of the year, I have spoken with about 30 staffing owners concerning their workers compensation insurance. After reviewing my notes, I find these calls can be categorized into 3 areas.
1. Panicked staffing owner — Their Agent assumed workers compensation policy was going to be renewed as in years past, only to find that the carrier wants off the policy. The staffing owner must beg the carrier for a 30 day reprieve to shop for insurance– quickly. The Agent admits he does not have too much experience in a challenging worker compensation insurance market and/or identifying a reputable solid Professional Employer Organization (PEO.)
2. Skeptical staffing owner– The agent or Staffing owner has realized that the market for workers compensation insurance has changed and can not believe that they have few options other than a PEO or the State Fund. They are very surprised to find out that PEO’s have also become more selective as to which staffing companies they underwrite now.
3. Upset staffing owner- Staffing owner has an excellent loss history, but the insurance company does not want to renew their policy because they do not want to underwrite staffing anymore. They have been with the same carrier for years, and now feel they are being thrown under the proverbial bus.
In today’s challenging workers compensation insurance market for staffing companies, there is no easy solution for most staffing companies; especially if your premium is under 100K or if you have offices in multiple states. In order to be proactive, contact Work Comp Staffing Solutions TODAY before your carrier cancels you, or your rates go through the roof. We can find a Professional Employer Solution (PEO) solution that is reputable, makes economic sense and is still accepting staffing clients.
Always feel free to call us at 202-302-1212 or visit us at www.StaffingCompSolutions.com to discuss your particular workers compensation insurance situation.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
by David Schek | Feb 18, 2013 | Workers' Compensation Insurance
Did you think that the workers compensation insurance system was started in the United States? Or did you think it was started in the early twentieth century? You would be wrong on both accounts.
The earliest record of workers compensation insurance dates back to the Samaria civilization in the year 2050 BC; which was also about the time of the earliest evidence of the written word! In fact, the United States was one of last countries to embrace a legal framework for workers compensation insurance beginning in the 1910’s.
For more startling historical information about the history of workers compensation insurance read more at:
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1888620/pdf/IowaOrthopJ-19-106.pdf
If you have questions about workers compensation insurance options in today’s dynamic market place for staffing companies, please contact us at 202-302-1212 and visit us www.StaffingCompSolutions.com
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
