Georgia’s small businesses are the backbone of our state’s economy. From family-owned manufacturers in Middle Georgia to fast-growing tech startups in Atlanta and Main Street retailers in rural communities, entrepreneurs drive job creation and innovation in every corner of the Peach State.
But in today’s increasingly complex regulatory and benefits landscape, running a small business requires more than a great idea and a strong work ethic. It requires navigating payroll compliance, workplace regulations, health insurance markets, workers’ compensation and a host of ever-changing employment laws. For many small and mid-sized employers, that burden can slow growth and distract from their mission.
That’s why the Georgia Legislature’s passage of the Better Small Business Employee Benefits Act (H.B. 250) is so important. This legislation establishes a modern, clear and transparent regulatory framework for professional employer organizations (PEOs) operating in Georgia — providing certainty for employers, employees and regulators alike.
In Georgia, nearly 8,200 small businesses partner with PEOs, supporting more than 196,300 employees across the state. These partnerships are not niche, but rather, they are a meaningful and growing part of Georgia’s small business ecosystem.
As a Georgia-based PEO, we partner with small and mid-sized companies in a co-employment relationship. That means we share certain employer responsibilities, such as payroll processing, benefits administration, HR compliance and workers’ compensation, while business owners retain full control over day-to-day operations and management decisions.
This model allows small businesses to offer competitive, Fortune 500-level employee benefits, access experienced HR professionals, navigate complex state and federal regulations, reduce administrative burdens and compliance risk and focus on growing their businesses, taking care of their employees and serving customers and communities.
H.B. 250 would ensure that this partnership model is clearly defined and appropriately regulated. The legislation establishes a modern, clear and transparent regulatory framework for professional employer organizations (PEOs) operating in Georgiathat provides the Georgia Insurance Commissioner with clear authority to regulate and oversee PEO operations in the state. Just as importantly, the bill would clarify the respective rights and responsibilities of both the PEO and the client company within a co-employment relationship.
That clarity is critical.
When laws are ambiguous uncertainty can create hesitation among small business owners considering a PEO partnership. It can also create unnecessary compliance risk that can be costly to employers. By defining responsibilities and strengthening financial safeguards, this legislation would reinforce transparency and accountability while preserving flexibility for employers.
In short, H.B. 250 would provide regulatory certainty without overregulation — striking the right balance for a state that consistently ranks among the best places in the nation to do business.
Georgia continues to attract new investment and job creation across industries — from advanced manufacturing and logistics to technology and healthcare. Small businesses play a central role in that growth. In fact, PEOs support Georgia employers in these key industries, with the majority of companies in professional, scientific and technical services and healthcare.
Yet small employers often struggle to compete for talent against larger corporations that can offer robust benefits packages and dedicated HR departments. PEO partnerships help level that playing field by giving smaller companies access to high-quality benefits and professional HR expertise at a predictable cost.
With H.B. 250 in place, business owners could confidently pursue these partnerships knowing that the regulatory framework governing them is transparent and aligned with today’s employment practices. That stability supports stronger workforce retention, improved employee engagement and sustained economic growth.
Georgia has built a national reputation as a pro-business state. Passing H.B. 250 reinforces that reputation by demonstrating a commitment to regulatory clarity and practical solutions for small employers.
As a Georgia PEO serving local employers and their employees, we applaud state leaders for advancing a framework that protects workers, supports entrepreneurs and strengthens our economy.
Clarity in the law creates confidence in the marketplace. And confidence fuels growth.
Daniel Harris is the director of government relations and senior counsel at Trinet, a full service HR-solutions firm
