Barrett Business Services (BBSI): what its 10-K says it depends on

Suppliers

Third-party workers' compensation insurers (insured program)

depends on · Approximately 86% of the Company’s workers’ compensation exposurenamed as a risk

Approximately 86% of the Company’s workers’ compensation exposure is covered through the insured program.Business (Item 1)

Third-party health insurance carriers

depends onnamed as a risk

Our arrangement with third-party insurers provides health insurance coverage to BBSI’s PEO clients through December 31, 2026, with the possibility of additional annual renewals.Risk factors (Item 1A)

Third-party licensed software

depends onnamed as a risk

Significant portions of our services and operations rely on software that is licensed from third-party vendors.Risk factors (Item 1A)

Partners and platforms

Referral partners

depends onnamed as a risk

We currently maintain a limited internal professional sales force, instead relying heavily on referral partners to provide referrals to new business.Risk factors (Item 1A)

Other companies

Ecole (captive insurance subsidiary)

operates in · Approximately 14% of the Company’s workers’ compensation exposure

The Company also operates a wholly owned, fully licensed insurance company, Ecole, which provides workers’ compensation coverage to client employees working in Arizona and Utah.Business (Item 1)

Competitors

Automatic Data Processing, Inc. (ADP)

competes withnamed as a risk

Our competitors include companies that are engaged in staffing services such as Robert Half International Inc., Kelly Services, Inc., and ManpowerGroup Inc.; companies that are focused on co-employment, such as Insperity, Inc., and TriNet Group, Inc.; and human capital management companies, such as Automatic Data Processing, Inc. and Paychex, Inc.Risk factors (Item 1A)

Also named by PAYC, WDAY

Paychex, Inc.

competes withnamed as a risk

Our competitors include companies that are engaged in staffing services such as Robert Half International Inc., Kelly Services, Inc., and ManpowerGroup Inc.; companies that are focused on co-employment, such as Insperity, Inc., and TriNet Group, Inc.; and human capital management companies, such as Automatic Data Processing, Inc. and Paychex, Inc.Risk factors (Item 1A)

Also named by PAYC

Insperity, Inc.

competes withnamed as a risk

Our competitors include companies that are engaged in staffing services such as Robert Half International Inc., Kelly Services, Inc., and ManpowerGroup Inc.; companies that are focused on co-employment, such as Insperity, Inc., and TriNet Group, Inc.; and human capital management companies, such as Automatic Data Processing, Inc. and Paychex, Inc.Risk factors (Item 1A)

TriNet Group, Inc.

competes withnamed as a risk

Our competitors include companies that are engaged in staffing services such as Robert Half International Inc., Kelly Services, Inc., and ManpowerGroup Inc.; companies that are focused on co-employment, such as Insperity, Inc., and TriNet Group, Inc.; and human capital management companies, such as Automatic Data Processing, Inc. and Paychex, Inc.Risk factors (Item 1A)

ManpowerGroup Inc.

competes withnamed as a risk

Our competitors include companies that are engaged in staffing services such as Robert Half International Inc., Kelly Services, Inc., and ManpowerGroup Inc.; companies that are focused on co-employment, such as Insperity, Inc., and TriNet Group, Inc.; and human capital management companies, such as Automatic Data Processing, Inc. and Paychex, Inc.Risk factors (Item 1A)

Kelly Services, Inc.

competes withnamed as a risk

Our competitors include companies that are engaged in staffing services such as Robert Half International Inc., Kelly Services, Inc., and ManpowerGroup Inc.; companies that are focused on co-employment, such as Insperity, Inc., and TriNet Group, Inc.; and human capital management companies, such as Automatic Data Processing, Inc. and Paychex, Inc.Risk factors (Item 1A)

Robert Half International Inc.

competes withnamed as a risk

Our competitors include companies that are engaged in staffing services such as Robert Half International Inc., Kelly Services, Inc., and ManpowerGroup Inc.; companies that are focused on co-employment, such as Insperity, Inc., and TriNet Group, Inc.; and human capital management companies, such as Automatic Data Processing, Inc. and Paychex, Inc.Risk factors (Item 1A)

Places

California

concentrated in · approximately 72% of our total revenues in 2025named as a risk

Our California operations accounted for approximately 72% of our total revenues in 2025.Risk factors (Item 1A)

Also named by A, AAON, AFRM, ALK, ALLY, AN, ARE, AVAV and 88 more

Colorado

operates in · $2.0 millionnamed as a risk

For all claims incurred under the Company’s self-insured programs, the Company retains risk of loss up to the first $3.0 million per occurrence, except in Maryland and Colorado, where the Company’s retention per occurrence is $1.0 million and $2.0 million, respectively.Business (Item 1)

Also named by AN, BKH, CVX, DMLP, ENSG, FPI, MLM, PLTR and 4 more

Maryland

operates in · $1.0 millionnamed as a risk

For all claims incurred under the Company’s self-insured programs, the Company retains risk of loss up to the first $3.0 million per occurrence, except in Maryland and Colorado, where the Company’s retention per occurrence is $1.0 million and $2.0 million, respectively.Business (Item 1)

Also named by AUB, TFC

Ohio

subject to

The Company is a self-insured employer with respect to workers' compensation coverage for all employees, including employees of PEO clients that elect to participate in our workers’ compensation program, working in Colorado, Maryland, Ohio, and Oregon.Business (Item 1)

Also named by AM, AR, CINF, DRVN, ELV, FE, INTC, KEY and 6 more

Arizona

subject to

We are also subject to laws and regulations governing our two wholly owned insurance companies in Arizona.Business (Item 1)

Also named by ABR, AMKR, AXON, BRK/B, DJCO, ELS, ENSG, GDDY and 5 more

Washington

subject to

In the state of Washington, state law allows only the Company's staffing services and internal management employees to be covered under the Company's self-insured workers' compensation program.Business (Item 1)

Also named by AAON, ALK, COST, MDU

Oregon

subject to

The Company is a self-insured employer with respect to workers' compensation coverage for all employees, including employees of PEO clients that elect to participate in our workers’ compensation program, working in Colorado, Maryland, Ohio, and Oregon.Business (Item 1)

Also named by CAH, IOT

Hazards

Natural disaster in California

concentrated innamed as a risk

Similarly, due to our geographic concentration in California, a natural disaster or major event that disrupts these markets or the related workforce could have an immediate and material adverse impact on our operations and profitability.Risk factors (Item 1A)

Regulators

Internal Revenue Service (IRS)

subject tonamed as a risk

Notwithstanding, the IRS has taken the position that certain third-party payors, including PEOs, as well as their clients, are responsible for repaying rejected tax credit claims under the ERC program.Risk factors (Item 1A)

Also named by AAPL, ABNB, ADI, AJG, AMGN, BMNR, BRO, CAH and 39 more

U.S. Department of Labor

subject tonamed as a risk

We are the administrative employer sponsoring single-employer plans in our co-employment relationships under the various laws and regulations of the IRS and the U.S. Department of Labor.Risk factors (Item 1A)

Also named by ADP, AMG, FLO, HCC, MRSH, PAYX, PFG, TROW and 1 more

State insurance commissioners

subject tonamed as a risk

Our wholly owned insurance companies are primarily regulated by state insurance commissioners in the states in which they conduct business.Risk factors (Item 1A)

Laws and programs

California Consumer Privacy Act (CCPA)

subject tonamed as a risk

If we experience a significant data security breach, fail to detect and appropriately respond to a significant data security breach, or fail to comply with the various state cybersecurity regulations including the California Consumer Privacy Act ("CCPA") and the California Privacy Rights Act ("CPRA"), we could be exposed to government enforcement actions and private litigation.Risk factors (Item 1A)

Also named by AAP, AIOT, AKAM, ALL, APP, AYI, BAC, BBW and 69 more

One Big Beautiful Bill Act

subject tonamed as a risk

As new tax laws and regulations are adopted— including recently enacted legislation such as the One Big Beautiful Bill Act—we must update and modify our systems and processes to address these changes.Risk factors (Item 1A)

Also named by AA, ABR, ADI, ADM, ALB, AMAT, AMGN, AMKR and 121 more

U.S. tariffs

named as a risk

These measures can significantly raise the cost of raw materials, components, and finished goods, placing considerable financial pressure on our clients in certain industries that rely on imports, such as construction, manufacturing and logistics.Risk factors (Item 1A)

Also named by A, AAPL, ACHR, ADI, AEHR, AEP, AIOT, AKAM and 170 more

HIPAA

subject tonamed as a risk

Non-compliance with HIPAA can lead to penalties and fines.Risk factors (Item 1A)

Also named by AFL, BAX, CI, DHR, DOC, DOCN, DOCU, DXCM and 19 more

Affordable Care Act

subject tonamed as a risk

The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, the “Acts”) subject us to potential penalties unless we offer our employees minimum essential healthcare coverage that is affordable.Risk factors (Item 1A)

Also named by ABBV, ABT, ADP, AFL, BRO, BWIN, COR, DOC and 8 more

ERISA

subject tonamed as a risk

Any determination that we are not the administrative employer sponsoring single-employer plans for purposes of ERISA could also adversely affect our ability to offer health care benefits to our PEO clients by subjecting us to additional state and federal laws and regulations, and could materially adversely affect our business, financial condition, and results of operations.Risk factors (Item 1A)

Also named by BLK, KKR, LNC, LPLA, MET, MRSH, STT, WHR

Employee Retention Tax Credit (ERC)

subject tonamed as a risk

These filings are currently under examination by the IRS to assess the eligibility of the ERCs claimed by our PEO clients.Risk factors (Item 1A)

California Climate Corporate Data Accountability Act (CCDAA)

subject to

Beginning in 2026, we are required to disclose information regarding the Company’s greenhouse gas emissions and climate-related risks under California’s Climate Corporate Data Accountability Act (CCDAA) and the Climate-Related Financial Risk Act (CRFRA).Business (Item 1)

Also named by ALL, CMG, DKS, FCNCA, PTC, TSCO