Committee Hears Debate on PEO Bill: Sponsors Seek Flexibility, Labor Department Flags Draft Conflicts
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Summary
SB655 would let either a professional employer organization (PEO) or a client employer hold workers' compensation coverage for leased employees. Sponsor said the change modernizes statute and expands options; the Department of Labor said it is neutral but identified statutory conflicts and recommended clarifying reporting and injured‑worker notice requirements. Industry groups signaled willingness to work on fixes.
Senator Dan Innes presented Senate Bill 655, which would allow a professional employer organization (PEO) or the client company to secure workers' compensation coverage for leased employees rather than requiring the PEO always to hold the policy. Innes said the change is technical, aimed at aligning New Hampshire with national practice and expanding access to PEO services for some employers.
Danielle Albert, deputy commissioner of the New Hampshire Department of Labor, testified the department is neutral but identified potential statutory conflicts in RSA 277‑B, noted reporting challenges when client companies hold non‑PEO policies, and recommended language requiring client‑employer notice to employees about which entity is the employer of record for workers' compensation purposes. Heather Menaziz, an attorney who represents injured workers, echoed concerns that the bill as drafted could create confusion for claimants about whom to name in a workers' compensation claim. Industry representatives including Justin Worrell of Insperity said most states permit flexibility and that the intent is not to make coverage optional but to allow client/PEO choice; Insperity indicated willingness to work on notification provisions and statutory clean‑ups.
Committee members asked clarifying questions but did not take a final vote; staff and the sponsor will work on reconciling statutory language and the notification process before further action.
