Another Win for Professional Employer Organizations at New York Third Department
KEY TAKEAWAYS The New York Third Department once again h eld that a Professional Employer Organization (PEO) was not obligated to provide coverage for a worker who was never enrolled as a leased employee. The decision hinged on the production of a detailed PEO agreement, policy documents, payroll records, and clear testimony confirming the claimant was not submitted for enrollment. Notably, the court again declined to address whether PEOs must verify that clients carry separate coverage for non-leased workers — leaving unresolved tension between board-level expectations and appellate rulings. Another day, another chapter in the evolving world of New York Workers’ Compensation for Professional Employer Organizations (PEOs). As discussed in prior updates , this decision follows the foundational Third Department rulings in Gaylord , Cardona , and Brown . Fortunately, we continue to see good news coming out of the Third Department. In Fonseca v. Pl...