Workers' Compensation is the Last Nail in the Coffin for Small Businesses; PEO7 Survey...

Workers' Compensation is the Last Nail in the Coffin for Small Businesses;
PEO7 Survey Finds

CALABASAS, Calif., July 14 /PRNewswire/ -- According to a recent survey
conducted by www.PEO7.com, Workers' Compensation rates are rising throughout
the nation, pressuring businesses to find alternatives as they struggle to
survive. For example, in the state of California, Workers' Comp rates
increased 6% in January 2009, and are slated to increase another 24% in July.

With financial woes mounting, the State has proposed selling State Insurance
Fund, which is the Workers' Compensation provider of last resort for small
businesses. Though the insurance commissioner has objected to such proposal,
it points to even higher rates in the future, regardless of the sale.

The Workers' Compensation issue has been further exacerbated by AIG suffering
major losses in 2008, sending their workers' compensation rates spiraling
higher. Many AIG policy holders were left with no coverage and scrambled to
find lower Workers' Comp rates, but to no avail.

While the current economic downturn shows no immediate signs of improvement,
Professional Employer Organizations (PEOs) are proving to be a lifesaver for
many small businesses.

PEOs are able to offer lower costs because of their innovative business model.
A PEO administers payroll, workers' compensation, human resources, and
employee benefits to a large number of companies, thus qualifying for much
lower rates on a wide range of insurance products. These savings are then
passed on to the clients.

The national economic crisis has begun to highlight the advantages of PEO
Employee Leasing service providers. The lower rates that PEOs offer for costs
such as Workers' Comp, healthcare, and unemployment are deciding factors for
many businesses as they struggle to survive our current economic conditions,
providing innovative options and saving businesses as much as 30% on their
overall administrative costs.

As the economic climate worsens, www.PEO7.com anticipates that more and more
businesses will take a closer look at the cost benefits of Employee Leasing
PEO Services. Ironically, in this economic environment, outsourcing of
administrative functions to PEOs finally makes sense.

About PEO7.com

www.PEO7.com is the largest PEO broker in the US, connecting companies seeking
PEO employee leasing services with some of the finest PEO services in the
nation. PEO7 offers a great deal of information on its website at www.PEO7.com
with a PEO blog at www.peo7.net.
Contact:
David Sheehan
818-444-2400

SOURCE PEO7.com

David Sheehan of PEO7.com, +1-818-444-2400