Professional employer organizations provide human resources
solutions for small and mid-size businesses. In the US, PEOs serve
more than 175,000 small and mid-sized businesses, which represents
15% of all US employers with 10 to 99 employees, according to the National Association of Professional Employer
Organizations. In addition to handling human resources matters,
payroll and employee benefits, some PEOs offer employment practices
liability insurance – which provides their business clients
with liability and defense coverage for claims brought by employees
for "wrongful employment acts," such as wrongful
termination, harassment, retaliation, discrimination and other
workplace torts.
