July 27, 2006 14:05 ET

PEOs Help Companies Navigate California's Complex Business Maze

WEST HOLLYWOOD, CA -- (MARKET WIRE) -- July 27, 2006 --Burdened by environmental, labor and other complicated regulations, California is considered by many experts to be the most difficult state in which to do business. These complexities have led to the tremendous growth and increasing need for the PEO -- Professional Employer Organization -- industry in California.

A recent study revealed that 60 percent of California business leaders were frustrated by policies that restrict job growth and are rife with oppressive regulatory standards. The study conducted by the consulting firm Bain & Co. reported that the price of doing business in California costs approximately 30 percent more than in other Western states, and that California regulations are "more costly, complex and uncertain than those in any other state, by a wide margin."

The result of this tough business environment has forced many California companies to cut costs by turning to PEOs like CPEhr. The Los Angeles-based company has been an industry leader in California since 1982, providing clients with an effective outlet to outsource human resource demands in the areas of benefits, payroll, workers' compensation and other HR consulting needs. It's a cost-effective solution for companies operating in a tumultuous business climate.

"CPEhr can help with an employer's frustration with California's strict regulations by providing them with a team of professionals that assist them with a variety of services," said Mitzi Branvold, CPEhr's Manager of Human Resources. "CPEhr takes pride in educating California employers on the laws and regulations. We explain the possible consequences in regards to acting on impulse. When a client is faced with an issue and seeks our advice, we educate them about the reasons behind our advice, as opposed to simply reciting the law."

Many of those clients are turning to CPEhr and other PEOs in record numbers. The PEO industry serves between two and three million employees per year and is experiencing an increase of more than 20 percent annually, according to NAPEO, the national trade association for the industry. PEOs have penetrated just a fraction of their potential market, leaving the prospect for substantial growth wide open as the sector continues to consolidate and become flush with capital.

"This has created a great opportunity for California and CPEhr," said Branvold, whose company has a vast supply of professionals who specialize in laws, policies and regulations that are unique to the state. "Because of these changing regulations, CPEhr has to constantly stay ahead of the game by offering customized PEO services to California employers. CPEhr is currently doing this with the flexibility and courtesy that our clients expect and deserve."

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