PEO and Employer News for Nevada, New Jersey, Louisiana and West Virginia

March 24, 2016

Hawaii – Legislation Regarding PEO Fees Moves through the Legislature
Senate Bill 2544 continues through the legislature in Hawaii. The bill will establish a sliding scale based on the number of covered employees (in HI) reported to the Department of Labor and Industrial Relations. As amended, the bill would increase the renewal fee due every two years from a $750 flat fee to a sliding scale:

  • Less than 50 covered employees      $2,000
  • 50 – 250 covered employees            $3,000
  • 251 – 500 covered employees           $5,000
  • 501 or more covered employees       $7,000

If enacted, the bill would become effective on July 1, 2091. – Seventy five years from now. That should be enough time for PEOs to financial plan for the expense!

Nevada –Implementation of Assembly Bill 389
The Nevada Department of Employment, Training and Rehabilitation (DETR) announced that the U.S. Department of Labor (DOL) has approved its plan to issue credits on 2015 4th quarter SUTA overpayments and will provide affected employers with a newly developed “Statement to Correct” form to be completed and returned to DETR in order to process the appropriate future account credits for the 4th quarter of 2015. As we have previously reported, DETR informed NAPEO that it would implement AB 389 as of the law’s effective date of October 1, 2015. DETR also stated that it would issue credits in the amount of those 4th quarter SUTA payments after receiving approval from the U.S. Department of Labor (DOL) of its plan to issue credits. Any PEO operating in Nevada should contact the DETR for instructions about applying for the credit.

New Jersey –Paid Sick Leave for workers – Bill moves though Legislature
Legislation that would require employers in New Jersey to provide employees with paid sick leave benefits is progressing through the New Jersey Senate. Senate Bill 799, will require employers to grant workers one hour of paid sick leave for every 30 hours worked (or about nine days a year. Last week, the bill was amended to provide that an employer would be in compliance with the bill in circumstances where such employer offers paid time off. Workers at businesses with fewer than 10 employees would be able to accrue up to 40 hours of sick time that could be carried over from one year to the next. Employers with 10 or more workers would be required to allow them to accrue and carry over up to 72 hours of sick leave.

New Orleans, Louisiana – requires stand alone work comp policies  
On March 15, 2016 NAPEOs Mid-South Leadership Council Forum (LCF) was held at the Hotel Monteleone in New Orleans, Louisiana. Attendees were able to discuss a recent letter from the Louisiana State Licensing Board for Contractors (LSLBC) and its refusal to allow PEOs to provide evidence of workers’ compensation coverage on behalf of its clients. Those in attendance also heard presentations on the political environment in Louisiana and recent employment law developments. Additionally, there was a discussion on the issues affecting PEOs within the Mid-South Region including: introducing the NAPEO Model Act in Mississippi in 2017 and forming a Louisiana working group to update the state’s PEO statute. PEOs operating in Louisiana should be advised.

West Virginia – PEO Bill Passes House and Senate in West Virginia
On Saturday, March 12, 2016, Senate Bill 465 passed the West Virginia House and moved to the Governor’s desk, having passed the Senate last month. The bill allows PEOs operating in West Virginia to sponsor health benefit plans as a single employer plan with all covered employees considered employees of the PEO. In addition, if a PEO wants to self-insure for purposes of health, the bill would allow this through a captive insurance company. The House version passed with the inclusion of an amendment that would authorize the insurance commissioner to promulgate and adopt rules with respect to WV PEOs sponsoring health benefit plans.