Employers Asked to Pay as Mainstay Liabilities Near $50 Million

The $16.9 million security deposit posted by a tribe-owned professional employer organization was enough to pay claims only for a about a year-and-a-half after the self-insured PEO became insolvent, and now its former California clients may have to pick up a $30 million tab. Mainstay Business Solutions went out of business in April 2011 as a result of what it called an unexpected $16.4 assessment from the Employment Development Department over unpaid taxes. At the time, the Self-Insurers’ Security Fund said it was taking responsibility for 481 open claims with an estimated future l...