Full-Service HR

PEOs and Unions

Ella Baker
PEOs and Unions
Reading time 3 Mins
Published on Sep 6
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Your partner is labor relations and collective bargaining

Your company doesn’t have to navigate union negotiations on its own. Your professional employer organization (PEO) partner can help you conduct collective bargaining agreements with your employee union, ensuring that the best interests of your company represented while keeping you compliant with labor laws.

What is a PEO?

A PEO is a firm that provides comprehensive HR solutions to employers. PEOs partner with small and mid-size businesses to provide outsourced HR management, including employee benefits administration, risk management, compliance with regulatory issues, and training. Through the co-employment model, PEOs are able to provide businesses with:

  • Human Resources (HR) Management
  • Benefits Administration
  • Payroll Processing
  • Time and Labor Management
  • Tax Administration
  • Better rates on Worker’s Compensation
  • Safety and Risk Management
  • Employee Relations Support
  • Ensure ACA Compliance
  • Ensure Labor Law Compliance

PEOs and Unions

PEOs work equally well in union and non-union worksites. Due to the co-employment relationship, your PEO partner has a vested interest in the outcome of collective bargaining negotiations and can assist your company in the process.

The National Labor Relations Board (NLRB) recognizes that in co-employment relationships, worksite employees are appropriately included in the client employer’s collective bargaining unit. When working with a client company where a collective bargaining agreement is in place or forms after the partnership is underway, PEOs fully abide by the agreement’s terms. PEOs endorse the rights of employees to organize, or not organize, under state and federal laws.

Make labor relations a central part of your PEO relationship by working with your partner to:

  1. Conduct a labor relations audit to vet company policies that might restrict concerted activity. Policies on confidentiality, anti-harassment, social media, conduct, and behavior may all need revision to confirm compliance with NLRB decisions.
  2. Enable and encourage website communication between employees and management. Greater connectivity between management and employees lets you discover and address potential concerns faster, thereby reducing or solving many worker tensions before they become a larger issue.
  3. Identify supervisors correctly. Since supervisors are not eligible for unionization, it only makes sense to ensure that you have correctly identified which members of your team are classified as supervisors, allowing you to know how many members of your staff are eligible for organization.

Let Sheakley meet your HR needs

PEOs work in tandem with both union and non-union setups. The employees under a PEO contract are included in the collective bargaining unit of their original employer – the PEO’s client. PEOs adhere to the collective bargaining agreement terms applicable for their employees. The employees exercise their right to organize or choose to refrain from taking part in union activities.

Accredited by Employer Services Assurance Corporation (ESAC), Certification Institute, and backed by a $3 million Employment Practices Liability Insurance policy, Sheakley’s 120 years of combined PEO experience and expertise are unrivaled in the industry. Sheakley’s PEO professionals have the knowledge and experience in labor legislation necessary to ensure that your labor negotiations are conducted fairly and meet NLRB requirements.

Schedule your free consultation with a Sheakley PEO professional today. For more in-depth information about PEOs, download our What is a PEO e-book today. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. Join in the discussion by commenting below.


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