Committee Hears House Bill 250 to Regulate PEOs; Workers'‑comp Coverage Is Central Concern

Representative Darlene Taylor opened discussion of House Bill 250 (LC520711S), saying the measure would establish a regulatory framework for professional employer organizations, or PEOs, that provide payroll, benefits and human resources services to small and mid‑sized employers.

Taylor said the bill is based on a model act from the National Association of Professional Employer Organizations and would create "a level, field and a competitive field" and increase transparency for small employers and the state. "What they do is provide human resources services to small and mid sized employers and businesses," she told the committee, noting PEOs can handle payroll tax remittance, 401(k)s, health and workers'‑compensation administration and other benefits.

Why it matters: supporters argued PEOs let small employers compete with larger firms and improve employee retention; opponents warned the bill could create gaps in workers'‑compensation coverage if contracts or enrollment practices leave employees off PEO rosters. Taylor cited industry figures during her presentation — "more than 3,150 Georgia businesses employing more than 8,000 people" work with PEOs, and nationally PEOs serve about 200,000 businesses and 4,500,000 employees — saying standardized rules would protect consumers and reduce…