With health care reform, an election year and an uncertain economic future, many employers are loathe to begin hiring again and unemployment still remains at historical highs. 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 times.

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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
times.
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
www.cpehr.com | info@cpehr.com | 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
line.
9000 Sunset Blvd, Suite 900, West Hollywood, CA 90069
www.cpehr.com | info@cpehr.com | 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
www.cpehr.com | info@cpehr.com | 800-850-7133