Statement of Purpose and Operation

ESAC's purpose is to build integrity and trust and provide assurance for the PEO industry. To accomplish its purpose, ESAC:
  1. Establishes standards for ethical conduct, professional competency, and financial and operational reliability;
  2. Provides a credible program of accreditation based on independent verification of standards compliance;
  3. Provides financial assurance and notification programs to assure the clients, employees and insurers of accredited PEOs and government agencies that accredited PEOs are in compliance with ESAC's standards; and
  4. Provides services to make PEO compliance with state and federal laws and regulations more time and cost efficient and reliable.
ESAC is managed by its officers and staff under the supervision of a Board of Directors. ESAC's board is comprised of Independent Directors, including former regulators, Professional Advisory Directors, and PEO industry executives.

PEO participation in ESAC programs is totally voluntary. Annual fees paid by participating PEOs provide funding for ESAC programs. The accreditation fee schedule is established by majority vote of the Board of Directors as necessary to cover administrative and program costs. The Board diligently seeks to manage the affairs of ESAC consistent with accomplishing its purpose and its nonprofit status.

Any Professional Employer Organization (PEO) or group of Affiliated Professional Employer Organizations (PEO Group) is eligible to apply for accreditation. As a condition of eligibility for initial and continued accreditation, Applicants, Accredited PEOs and Responsible Persons agree to be bound by the terms and conditions set forth in these Standards.