| Actions |
| 2025-09-08 |
|
Ordered to inactive file at the request of Senator Smallwood-Cuevas. |
| 2025-08-29 |
|
From committee: Do pass. (Ayes 5. Noes 2.) (August 29). |
| 2025-08-29 |
|
Read second time. Ordered to third reading. |
| 2025-08-18 |
|
In committee: Referred to suspense file. |
| 2025-07-09 |
|
From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 1.) (July 9). Re-referred to Com. on APPR. |
| 2025-06-23 |
|
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R. |
| 2025-05-28 |
|
Referred to Com. on L., P.E. & R. |
| 2025-05-15 |
|
Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1570.) |
| 2025-05-15 |
|
In Senate. Read first time. To Com. on RLS. for assignment. |
| 2025-05-08 |
|
Read second time. Ordered to Consent Calendar. |
| 2025-05-07 |
|
From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (May 7). |
| 2025-04-24 |
|
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (April 23). Re-referred to Com. on APPR. |
| 2025-03-17 |
|
Referred to Com. on L. & E. |
| 2025-03-11 |
|
From printer. May be heard in committee April 10. |
| 2025-03-10 |
|
Read first time. To print. |
|
| Last Version Text |
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250AB__151598AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-03-10</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-06-23</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>1515</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Committee on Labor and Employment (Assembly Members Ortega (Chair), Elhawary, Kalra, and Ward)</ns0:AuthorText>
<ns0:Authors>
<ns0:Committee>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Committee on Labor and Employment</ns0:Name>
<ns0:Members>Assembly Members Ortega (Chair), Elhawary, Kalra, and Ward</ns0:Members>
</ns0:Committee>
</ns0:Authors>
<ns0:Title> An act to add Chapter 1 (commencing with Section 1650) to Part 6 of Division 2 of the Labor Code, relating to employment. </ns0:Title>
<ns0:RelatingClause>employment</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Professional employer organizations.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing federal law provides for certification of a professional employer organization (PEO) by the Secretary of the Treasury and, for purposes of specified taxes and other obligations, treats a PEO as the employer of any work site employee performing services for any customer of the PEO. Existing law establishes the Division of Labor Standards Enforcement, headed by the Labor Commissioner, within the Department of Industrial Relations, for the purpose of enforcing labor laws.</html:p>
<html:p>This bill would prohibit a person from providing, advertising, or otherwise holding oneself out as providing professional employer services, as defined, in the state unless the
person is registered with the division. The bill would require a PEO, as defined, upon registration, to pay an initial registration fee established by the division not to exceed the reasonable cost of registration.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_7E2CBBBF-8863-4F6D-829E-2382ED5B0ADD">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:LAB:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'6.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'1.'%5D)" ns3:label="fractionType: LAW_SPREAD||commencingWith: 1650" ns3:type="locator">
Chapter 1 (commencing with Section 1650) is added to Part 6 of Division 2 of the
<ns0:DocName>Labor Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawHeading id="id_7C99B813-CAA5-4CD4-90BB-C3430DB1C82D" type="CHAPTER">
<ns0:Num>1.</ns0:Num>
<ns0:LawHeadingVersion id="id_3B6219AE-17AB-4477-A69C-6E9C2412FB9E">
<ns0:LawHeadingText>Professional Employer Organizations</ns0:LawHeadingText>
</ns0:LawHeadingVersion>
<ns0:LawSection id="id_B352C74C-2F3F-441A-B6D1-2E5EB67738D4">
<ns0:Num>1650.</ns0:Num>
<ns0:LawSectionVersion id="id_A4CDD5E1-186A-48A2-BFF7-F6270740CB52">
<ns0:Content>
<html:p>For purposes of this chapter:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Division” means the Division of Labor Standards Enforcement.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Professional employer organization” (PEO) means a person that meets any of the following criteria:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Is certified by the Secretary of the Treasury pursuant to Section 7705 of Title 26 of the United States Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Is accredited by the Employer Services Assurance Corporation.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Provides professional employer services to a client pursuant to a written professional employer agreement intended by the parties
to create an ongoing relationship.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Professional employer services” means services pursuant to a professional services agreement that provides for all or substantially all employees of a client and includes all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Reporting employee wages using the federal employer identification number of the PEO.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Securing workers’ compensation insurance in compliance with paragraph (1) of subdivision (d) of Section 3602 and Section 3700.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Offering employee benefit plans.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_AE88F18E-5571-46B5-B22A-EFB9C65EBC65">
<ns0:Num>1651.</ns0:Num>
<ns0:LawSectionVersion id="id_39184FEE-1B2E-464F-8C39-69D58D2F43D8">
<ns0:Content>
<html:p>A person shall not provide, advertise, or otherwise hold oneself out as providing professional employer services in the state unless the person is registered with the division under this chapter.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_5473F746-6CFC-49A3-8CA9-6618AD00BB31">
<ns0:Num>1652.</ns0:Num>
<ns0:LawSectionVersion id="id_120940FA-07FC-4D8E-8B50-AF271EB7B401">
<ns0:Content>
<html:p>Upon registration, a PEO shall pay an initial registration fee established by the division not to exceed the reasonable cost of providing the registration under this chapter.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:LawHeading>
</ns0:Fragment>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>
|
| Last Version Text Digest |
Existing federal law provides for certification of a professional employer organization (PEO) by the Secretary of the Treasury and, for purposes of specified taxes and other obligations, treats a PEO as the employer of any work site employee performing services for any customer of the PEO. Existing law establishes the Division of Labor Standards Enforcement, headed by the Labor Commissioner, within the Department of Industrial Relations, for the purpose of enforcing labor laws. This bill would prohibit a person from providing, advertising, or otherwise holding oneself out as providing professional employer services, as defined, in the state unless the person is registered with the division. The bill would require a PEO, as defined, upon registration, to pay an initial registration fee established by the division not to exceed the reasonable cost of registration. |