PEO Regulators... Why ESAC is Important

What Others Say...

Bill Posner & Wayne Quigg
Bill Posner, Past COO, Pension Benefit Guaranty Corp.
Wayne Quigg, Retired Florida Revenue Program Administrator

Bill: In every industry, including the PEO industry, there are strong firms and firms that are not very well run. The difficulty for clients that want to hire a PEO is to figure out which is which. Very fortunately, through ESAC's compliance and bonding program, it's very easy to tell the difference.

Wayne: As a former state regulator, I saw PEO failures and the impact they had on their clients and employees. ESAC provides the structure to allow a PEO's clients to know that the PEO has met strict financial and operational obligations.

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Brad Tibbitts
Director, Life & Property Casualty Division, Utah Insurance Department

Since the implementation of our PEO Licensing legislation and initial contact with ESAC, we have found ESAC to be a valuable resource for our Department.

One of the key elements for us has been the availability of ESAC's eMAC program in our regulation process. We have found this to be a very valuable and accessible tool in obtaining information on those PEOs in Utah who use ESAC's services. It has also helped immensely in understanding the PEO industry, assisted us in understanding some of their financial nuances and the services they provide. In essence, ESAC allowed us access to the educational information we needed to understand and implement our regulatory process via the eMAC program. We have felt that ESAC is a valuable partner in this process and would highly recommend their services.

Mike Pickens
Past Arkansas Insurance Commissioner

...ESAC is the gold standard for PEOs. As a regulator, you have ESAC's early warning system available to you, the eMAC electronic compliance system, and a number of other tools. And, as a state regulator, you still retain all your authority to license, register and otherwise regulate PEOs. So it's a win win for the industry AND for the regulators!

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Sherry Barnes
Indiana Department of Insurance

...Since the IDOI has partnered with ESAC to use their online services, it has significantly reduced the amount of time and paperwork needed to review an ESAC accredited PEO.  With ESAC’s stringent accreditation requirements, the IDOI determined ESAC’s requirements would meet Indiana’s statutory and regulatory requirements.

ESAC has a very streamlined service. Their website is very user-friendly and self-explanatory.  ESAC maintains all the necessary information needed in a concise, up-to-date format.  It has been Indiana’s experience that using ESAC’s online services has been very helpful.

Bob Gross
CEO, Robert C. Gross and Associates

...I'm very familiar with the importance of accreditation and financial assurance programs for businesses and industries with responsibilities for large amounts of cash.

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Dom Rotondi
Former Director of Unemployment Insurance, New York State Dept. of Labor

The tangible value of ESAC’s program warrants the support and participation of the entire industry. These programs offer a solid foundation for the industry to develop an effective strategy for achieving reasonable and cost-effective regulation nationwide. Government regulators will view any industry’s self regulation efforts favorably if it includes meaningful standards and financial protection. This should be the PEO industry’s number one government affairs goal.

Ron Retterath
Past Senior VP and Chief Actuary, National Council on Compensation Insurance

ESAC’s client assurance program provides a way for legitimate PEOs that are doing things right to clearly differentiate themselves from firms that are likely to fail in hard times. During an intense time of competition in the 80s, over 100 insurance companies went broke leaving billions of dollars of losses. The state insurance guaranty funds generally made the policyholders whole and ensured that employees and plaintiffs were compensated. This is why negative press toward the insurance industry was minimal, and most people didn’t even realize the enormity of the insolvencies.

ESAC provides the PEO industry with a legitimate foundation for self-regulation that can be developed over the next few years into meaningful industry-wide protection of the public from damaging failures that always occur from time to time in any industry. This program deserves the full support and proactive development of the entire PEO industry.

Les Rawls
Former Insurance Commissioner, State of Oregon
Past President, National Association of Insurance Commissioners

As the PEO industry grows, it will come under increasingly closer scrutiny by local and state governments and by regulators. These regulators are sensitive to the protection of PEO clients and will appreciate ESAC’s valuable program offering solid financial protection to these clients. ESAC’s program for accredited PEOs can be a cornerstone of regulatory and legislative support for the PEO industry’s argument for uniform and cost effective regulation. Every PEO, large and small, needs to support this extremely beneficial program.