Bill > HB2800

This bill modernizes and updates Oregon's legal definitions and regulations regarding professional employer organizations (PEOs), which are companies that provide comprehensive human resources and employment-related services to businesses. The bill replaces outdated terminology like "worker leasing company" with "professional employer organization" and introduces precise definitions for terms such as "client worker," "covered employee," and "direct hire employee." It establishes a comprehensive licensing system for PEOs, requiring them to obtain a license from the Department of Consumer and Business Services and outlining specific responsibilities for workers' compensation coverage, including maintaining separate statistical experience for each client and ensuring adequate training and supervision. The bill also makes corresponding amendments to various Oregon Revised Statutes to align terminology and regulatory requirements across different sections of law, affecting areas such as construction contracting, landscape contracting, and workers' compensation. The changes are set to become operative on July 1, 2027, providing businesses and regulatory agencies ample time to prepare for the new framework. The primary goal appears to be creating a more precise and modern regulatory environment for professional employer organizations while maintaining worker protections and clear employer responsibilities.

Business and Industry, Labor and Employment

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2800