For companies of all sizes, HR-related litigation poses a constant risk that can have devastating consequences if not properly managed. Lawsuits stemming from issues like discrimination, wrongful termination, harassment, or labor disputes can drain resources and cripple productivity. This is where embracing human resource outsourcing (HRO) can mitigate risk and deliver a major return on investment (ROI). 

Outsourcing HR functions to a professional employer organization (PEO) transfers the risks and liabilities associated with workforce management. A PEO becomes the employer of record, shouldering the burden of compliance and liability. Even if litigation ensues, the PEO handles the entire legal process, preventing disruption to operations. Here are four ways HRO helps shield businesses from HR lawsuits and claims: 


Proactive Compliance  

With HR experts continuously monitoring and adapting to changing regulations, compliance risks are minimized. Preventative measures reduce the chance of lawsuits. 


Swift Dispute Resolution  

PEOs have specialized teams dedicated to resolving employee disputes before they escalate to litigation. A quick response can often nip issues in the bud. 


Airtight Agreements  

Contracts with a PEO clearly outline liability, ensuring the provider assumes any risks from legal claims and actions. Businesses can focus on operations. 


Ongoing Training  

PEOs implement regular training programs to educate managers and employees on compliance topics like anti-discrimination, diversity awareness, and harassment prevention. Keeping everyone informed aids in avoiding lawsuits. 


Outsourcing HR functions to a PEO transfers the risks and liabilities associated with workforce management. Explore our risk management services or contact us today to start the conversation. Don’t wait for a lawsuit to strike – be proactive with AlphaStaff.