PEO and Staffing Snapshot: 5 Steps to Ensure Compliance Throughout 2024

New employment laws are being pushed out with ever-increasing frequency and complexity, which makes compliance a never-ending process – with PEOs and staffing firms are on the front lines each day. And let’s be honest, your compliance work is never really done. Just staying up to date and knowing about new laws is not enough. You have to update your policies and procedures, train your leaders and employees, and effectively communicate the changes throughout your organization. What can your organization do ensure you and your clients stay in compliance in 2024? Here are five steps to consider. [And we’ll dive deeper into compliance challenges and strategies during the Fisher Phillips’ PeopleLaw Conference from January 24-26, so make sure you register today.]

1. Catch Up. First things first. To make sure you start the year off on the right foot, make sure you are caught up on last year. If you are still digging out from last year’s avalanche of new laws, this Insight provides a great summary of recent legal developments with links to more detail.
2. Be Intentional. Gone are the days when legal updates and related compliance activities could be shuffled to Q4 of each year. Employment law compliance should be a scheduled weekly task all year long for your compliance, HR, and operations teams. Use this scheduled time to discuss recent developments and plan your compliance activities.
3. Be Strategic About Sourcing Information. Identify several reliable sources for employment law updates, including law firms, HR organizations, and government agencies. Many organizations offer subscription services so you know that you will get the latest updates.
4. Adopt An Annual Update Cadence. Handbooks, policies, job descriptions, and wage-hour and payroll procedures all need annual review and update to keep pace with the ever-changing legal landscape.
5. Leverage Legal Resources. Employment counsel isn’t just for when you get sued anymore. Many companies are setting up regular touch-ins with their legal counsel to get training and support for their compliance initiatives throughout the year and ensure they are on the right track in the first instance.

Challenges for PEOs and Staffing Firms

PEOs need to be ready to educate and assist their clients with needed updates to their policies and practices. Staffing firms need to make sure their client service teams are ready to implement updated policies and procedures for the locations where employees are providing services.

Additionally, both PEOs and staffing firms should have their service agreements reviewed and updated by their legal counsel at least once a year to make sure that legal developments are incorporated.

In addition, 2023 was particularly challenging for staffing firms with operations in New Jersey and Illinois. Both states adopted and/or amended laws that mandate “equal pay” for temporary workers and permanent employees of a third-party client. Operations in those states have been severely hampered and there is fear that similar proposals could spread to other states in 2024.

Learn More!

We invite you to join us at the Terranea Resort in Rancho Palos Verdes, California, for the annual Fisher Phillips’ PeopleLaw Conference on January 24-26, where we’ll discuss issues related to compliance challenges – and many other topics – in depth. We’ll bring together thought leaders in the PEO, staffing, and gig economy industries to discuss common legal challenges and solutions, and you’ll hear from our firm’s PEO and Staffing Group lawyers, along with industry association executives, on the latest trends in a series of engaging and interactive sessions. Each session will provide you practical skills you can put to use right away. You’ll also have plenty of time to network with your peers to gain invaluable insights and learn from each other. You can learn more about the conference and register by clicking through here.

Conclusion

If you have questions, contact your Fisher Phillips attorney, the authors of this Insight, or any attorney on our PEO and Staffing Team. We will continue to monitor further developments and provide updates on this and other workplace law issues, so make sure you are subscribed to Fisher Phillips’ Insight System to gather the most up-to-date information.