The Rising Trend of PEO in New York
Despite a well-earned reputation as the epicenter of global business, New York is not without its challenges. Chief among these is a highly-volatile HR regulatory landscape, whose constant evolution can leave businesses in a race to stay compliant, lest they face hefty penalties.
Recent studies have shown that businesses, especially small to medium-sized enterprises, increasingly feel burdened by HR tasks. From handling payroll and employment taxes to benefits administration to recruiting and onboarding staff, these tasks can be time-consuming and, if not done correctly, potentially costly. According to recent reports, businesses spend an average of 80 hours a year on federal and state employment law compliance. This doesn’t even scratch the surface when it comes to time spent on other HR-related tasks.
This is where the benefits of PEO become immediately apparent, and where top-tier PEOs like Aspen HR can help. With a full-service office on Park Avenue in Manhattan, we offer tailored HR solutions to New York businesses of all sizes. Whether your business is a startup or a thriving enterprise, outsourcing HR services to Aspen allows your business to zero in on core operations, saving massive amounts of time and money. With our support, you can keep payroll and benefits running smoothly, stay compliant without headaches, and attract and keep the best talent.
Recent data indicates a significant surge in businesses turning to PEO, so more and more companies are seeing its value. Below, we illuminate the myriad benefits of HR outsourcing, its growing significance in the New York business landscape, and insights on transitioning seamlessly when you choose to outsource your HR functions.
Unpacking the Benefits of HR Outsourcing
Operational Excellence and Business Focus
When asking the question “Why HR outsourcing?”, one of the primary answers is also one of the simplest. By outsourcing HR operations, businesses can direct more focus and resources towards pivotal strategic areas, ensuring more growth and faster innovation.
No more worrying about the intricacies of payroll, choosing a new benefits package, or staying abreast of all the nuances of ADA, EEO, and FMLA compliance. Instead, your company can redirect its time and energy toward strategic growth, confident that your HR responsibilities are in good hands.
Nowhere are the benefits of PEO more apparent than in New York, well known for its dynamic regulatory environment. In this environment, outsourcing HR becomes even more essential, offering businesses the agility to adapt without being overwhelmed by HR complexities. More on this later.
Compliance and Risk Management
As the business world continues to evolve faster than ever, employment law compliance is becoming more and more complicated. Staying abreast of rapidly changing regulations represents a significant risk factor for small and medium-sized businesses that lack the necessary resources.
Nowhere is this more important than in New York, where complying with state and municipal employment laws can make remaining compliant difficult. With workforce protections mandated by the New York State Dept. of Labor often overlapping federal mandates, staying abreast of the law can be a full-time job.
But there’s a solution: PEO. Providers like Aspen HR act as a much-needed safeguard, ensuring businesses are always informed and aligned with the latest regulations. In states with daunting regulatory environments like New York and California, this is especially crucial. Additionally, for investment firms needing HR due diligence before they invest or acquire a company, Aspen HR is a lifesaver.
Access to Expertise and Advanced HR Technology
In today’s cutthroat business climate, having access to advanced HR tools and platforms is indispensable. Outsourcing HR ensures your business is equipped with the latest in HR technology, allowing you to gain access to elegant solutions, like our Aspen Cloud online payroll platform. More crucially, you benefit from dedicated HR professionals who understand the nuances of managing operations in a multifaceted market like New York.
Why More Businesses Are Opting for PEO in New York
The Cost-Benefit Analysis
Financial prudence is central to why many businesses are gravitating towards HR outsourcing. Traditional HR management can be a financial sinkhole, while PEO offers tangible savings and a clear ROI. For example, the average annual cost savings driven by PEOs currently stands at 27.3%.
But it’s not just about the numbers. The pros of PEO, especially in a challenging environment like New York, far outweigh the cons. For a more comprehensive breakdown, refer to our article on the benefits of HR Outsourcing.
Navigating New York’s Complex Regulatory Landscape
The Empire State, known for its vibrant business ecosystem, has always been at the forefront of labor rights and protections. This proactive stance, while favorable for workers, means businesses have to stay on their toes to stay compliant.
Per the New York Department of Labor, the state has a strong stance on ensuring that “every hardworking New Yorker is paid fair wages.” This commitment is reflected in the myriad of labor laws the state enforces.
- Wage and Hours Law: New York has stringent laws regarding minimum wage, working hours, and more to ensure workers are compensated fairly.
- Paid Sick Leave: A recent revision to the New York State Labor Law, 196-b, mandates employers provide sick leave to their employees. The provision of this leave is based on the number of employees and/or the employer’s yearly net income.
- Employment of Minors: The state has specific regulations concerning the employment of minors. The law details the type of work minors are not allowed to perform and details maximum and prohibited working hours.
- Industry-Specific Regulations: Various industries in New York each have their own set of distinct labor laws. For instance, the apparel industry, home health care aides, and the nail salon industry each have specific regulations tailored to their unique challenges and needs.
Another recent piece of sweeping legislation is the Salary History Ban, which came into effect on January 6, 2020. This law, as outlined by the New York State Department, prohibits employers from inquiring about an applicant’s past or current salary, compensation, or benefits. The law’s intent is to eliminate wage disparities and ensure fair compensation for all.
New York employers facing compliance with the ban can benefit from the guidance of a respected PEO, which can help ensure the following:
- Understanding the Nuances: The Salary History Ban is comprehensive. It not only bars employers from asking applicants about their salary history but also prevents them from relying on this information when deciding on employment offers or salary determinations. Expert HR guidance can ensure that businesses navigate these intricacies without inadvertently overstepping.
- Compliance with the Law: The law extends its protection to current employees as well. Employers cannot seek prior salary details from them, particularly when the employee is being considered for a new position or a promotion. However, nuances exist. For instance, while employers can’t ask about pay from previous jobs, they can use an employee’s current salary (if already in their possession) for calculations like raises.
- Best Practices for Hiring: The law encourages employers to focus on an applicant’s salary expectations for a position rather than their past earnings. PEO experts like Aspen can guide businesses in framing their interview questions and job applications to align with this perspective, ensuring they attract top talent without legal pitfalls.
- Protection Against Retaliation: The Salary History Ban also safeguards applicants and employees from retaliation. If they choose not to disclose their salary history or raise concerns about potential violations, employers cannot penalize them or retaliate in any way. Expert HR guidance helps businesses maintain a positive employer-employee relationship, fostering trust and transparency.
- Broad Applicability: The law applies universally across New York State, covering both public and private employers, including those in New York City. It’s pertinent for any position primarily based in New York State, even if interviews occur virtually or out-of-state.
The examples above are just a few of the comprehensive labor laws in New York. The frequent changes and updates to these laws can pose significant challenges for businesses, especially those without a dedicated HR department. Non-compliance can lead to hefty fines and penalties, not to mention the lasting reputational damage that can ensue from running afoul of state labor law.
In dynamic regulatory environments like New York and California, PEO emerges as an effective solution. By partnering with experts who are well-versed in New York’s labor laws, businesses can ensure they remain compliant while also focusing on their core operations. This not only mitigates risks but also allows businesses to thrive in a competitive market.
Aspen HR, with its specialized expertise, has been instrumental in guiding businesses through these unique challenges. Whether it’s maintaining compliance, preparing a business to move into New York, or providing due diligence prior to a merger or acquisition, Aspen HR is proud to safeguard our partners in this complex regulatory environment.
Making the Transition: What New York Businesses Need to Know
Starting the PEO Journey
Choosing the right PEO partner is paramount, especially in a labor environment as complicated as New York. Businesses need a partner who understands the New York market and regulatory landscape inside and out and who can safeguard them from unnecessary risk while also delivering top-tier HR services. Aspen HR’s highly regarded PEO services in New York reflect our profound understanding of the region’s needs and our commitment to the region.
Ensuring HR Compliance
Transitioning to an outsourced HR model comes with its own set of challenges, especially in New York with its specific HR regulations. Partnering with a PEO like Aspen HR offers invaluable guidance through the transition, ensuring a business always lands on the right side of the latest regulations through continuous monitoring.
Conclusion: New York’s Future with PEO
Key Takeaways and the Path Forward
The rising trend of PEO in New York is undeniable. The benefits are many, from operational excellence to ensuring compliance in a challenging regulatory environment. For many companies, the future of efficient business management in New York goes hand in hand with PEO.
Ready to experience the benefits of PEO for yourself? Contact Aspen HR today for all-encompassing HR solutions that are custom-tailored to the challenging but exciting New York business landscape.