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In the latest episode of The Chartwell Chronicles, hosts Brittany Atkinson and Adam Devine discuss a significant and evolving issue in workers’ compensation law: the treatment of Professional Employer Organizations (PEOs) and the distinction between leased and non-leased employees, particularly in light of a recent New York decision.
Drawing on their recent presentation at the New Jersey Self-Insured Conference, Brittany and Adam revisit the fundamentals of how PEOs operate, including their role in handling HR, payroll, and workers’ compensation coverage for client companies. They then unpack one of the most heavily litigated issues in this space — determining who qualifies as a covered leased employee versus a non-leased employee, and why that distinction is critical.
The episode focuses on a recent New York Workers’ Compensation Board ruling that imposes new and controversial requirements on PEOs. Specifically, the decision suggests that PEOs must incorporate and maintain a list of covered leased employees within their policies and demonstrate ongoing efforts to obtain proof of coverage for any non-leased employees. Brittany and Adam explain why these requirements may create significant administrative burdens and present practical impossibilities for many organizations.
Adam also shares insight into the appellate process and next steps, including a potential motion for re-argument, while both hosts discuss strategies PEOs may consider to mitigate risk, such as enhanced documentation practices and communication protocols with client companies.
This timely episode highlights the tension between regulatory intent — ensuring workers are covered — and the operational realities faced by PEOs. It’s a must-listen for employers, carriers, brokers, and legal professionals facing the challenges of workers’ compensation coverage in New York and beyond.
