Governor Neil Abercrombie of Hawaii has vetoed a bill that would have placed restrictions on professional employer organizations operating within the state of Hawaii. The aforementioned Senate Bill 2424 would have increased fees for PEOs, requiring human resources businesses to pay increased registration fees, produce audited financial statements and quadruple the bond requirement to conduct business in Hawaii.
Under this bill, if the PEO failed to register or comply with all rules, penalties would be authorized for noncompliance. Governor Abercrombie was quoted as saying that the bill was too broad and would impose restrictions too difficult for all PEOs to comply with (especially the smaller ones). Several PEOs in Hawaii said the proposed rules and regulations would be so time consuming and costly they would be forced to shut down if the bill was passed.
PEOs vary in size, and many of the smaller PEOs make great partners for smaller US businesses due to their similarities and understanding of the small business model and their ability to provide cost effective payroll and human resources support, employee benefits and workers compensation
insurance. With Governor Abercrombie’s veto last week, Hawaiian PEOs will continue to operate under the standard statutory requirements enacted by the legislature in 2012 that already provide a strong framework for PEOs operating in the state. The current PEO statute protects consumer while empowering the PEO to save money, improve productivity and profitability, reduce risk and attract and retain top employees on behalf of their clients.
PEO Advantage works with PEOs of all sizes across the country, and we’re happy to hear that our PEO friends in Hawaii can go about business as usual. There are currently more than 800 PEOs in the United States, each with different specialties. PEO Advantage is skilled at finding the perfect PEO for businesses of all sizes.
To learn more, contact us today!