PACE was originally founded in 1991 as the National Association for Alternative Staffing (NAAS) in the state of Texas. At that time our industry was known as “employee leasing” or “staff leasing.” The association was founded by a few Texas-based employee leasing companies to create a formal venue to voice industry concerns to the Texas Employment Commission. NAAS was then involved in a legal dispute regarding whether “leasing companies” should be allowed to be the employer of record for unemployment tax purposes.

NAAS stepped outside tense legal dealings, asked for a time out and opened a direct line of communication with the agency. The association calmly and effectively demonstrated the positive impact “leasing companies” would have on Texas employers and employees.

A meeting was arranged with Jimmy Kaster, then Chairman of the Texas Employment Commission. The meeting was rather tense until Kaster determined NAAS was not associated with another industry association that had brought the matter to suit. Once Kaster had an accurate understanding of our industry, he became interested in and respectful of the services provided. By the end of the meeting, Kaster remarked that he wished these services had been available to him earlier in his life when he had his own business. The Commission ultimately agreed that “employee leasing” service companies should be allowed to be the employer of record for unemployment purposes.

Some weeks later, NAAS held its first convention and Jimmy Kaster was there as the keynote speaker, enthusiastically endorsing the industry.

Over the years NAAS has replicated these types of successes nationwide. Our mission of bringing together industry leadership and government to promote healthy regulation and legislation of the industry remains a strong one.

Our industry’s name has evolved from “staff leasing” to “professional employer” to “HR outsourcing.” Our services have always been fundamentally based on the concept of co-employment. It was intuitively reasonable to legislators and regulators alike when the parties to this relationship are described as “worksite employer” and “administrative employer.” Worksite employees are directed and managed by their worksite employer and provided HR infrastructure, guidance and support by their administrative employer. Economies of scale and economies of competence were brought together in a new and unique way to increase the value of the “worksite employer.”

In January of 2007 the NAAS Board of Directors, recognizing this need for a more clear and consistent image for our industry, determined that the name of the organization should be changed to reflect the true relationship that exists between association members, their clients and the employees.

The new name, Professional Administrative Co-Employers (PACE), was presented and unanimously approved by members at the NAAS convention in San Antonio, Texas on May 1, 2007.

Our web address, www.pacepeo.com reflects the true relationship construct upon which our industry is built.