Committee hears competing views on PEO bill; workers’ compensation concerns pause action

ATLANTA — The Georgia House Small Business Development Committee on Oct. 12 heard extended testimony on House Bill 250 (LC 520711S), a bill to adopt model standards for professional employer organizations, or PEOs, and then paused further action to allow additional meetings.

The bill’s sponsor, Chairwoman Shirley Taylor, said the legislation adopts a National Association of Professional Employer Organizations model to standardize PEO operations in Georgia, arguing that PEOs help small and midsize employers access payroll, benefits and human-resources services. "By providing these payroll benefits and HR services and assisting with . . . compliance issues for state and federal laws, PEO allows small businesses to improve their productivity and profitability," Taylor said. She cited figures in the bill text that put the number of Georgia businesses using PEOs at about 3,150, employing roughly 108,000 people.

Proponents said the measure would create transparency and reduce fly-by-night operators; opponents, including insurers, workers’ advocates and the State Board of Workers’ Compensation advisory council, said portions of the bill could allow PEOs or client employers to avoid full statutory workers’ compensation coverage.

John Wal…