summary
Introduced
03/10/2025
03/10/2025
In Committee
08/29/2025
08/29/2025
Crossed Over
05/15/2025
05/15/2025
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
An act to add Chapter 1 (commencing with Section 1650) to Part 6 of Division 2 of the Labor Code, relating to employment.
AI Summary
This bill introduces regulations for Professional Employer Organizations (PEOs) in California, requiring them to register with the Division of Labor Standards Enforcement before providing services in the state. A PEO is defined as an organization that is either certified by the U.S. Treasury, accredited by the Employer Services Assurance Corporation, or provides professional employer services through a written agreement. Professional employer services include reporting employee wages under the PEO's federal employer identification number, securing workers' compensation insurance, and offering employee benefit plans. To operate legally, PEOs must pay an initial registration fee to the division that does not exceed the reasonable cost of registration. Additionally, the bill modifies existing requirements for the Director of Industrial Relations' annual report, mandating that it be submitted to both the Governor and the Legislature and be posted on the department's website. The bill aims to provide oversight and accountability for professional employer organizations operating in California, ensuring they meet specific standards and are properly registered with state authorities.
Committee Categories
Budget and Finance, Labor and Employment
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Labor and Employment (Assembly)
Last Action
Ordered to inactive file at the request of Senator Smallwood-Cuevas. (on 09/08/2025)
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