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Updated:   2026-02-04

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Measure
Authors Committee on Labor and Employment  
Subject Professional employer organizations.
Relating To relating to employment.
Title An act to add Chapter 1 (commencing with Section 1650) to Part 6 of Division 2 of the Labor Code, relating to employment.
Last Action Dt 2025-06-23
State Amended Senate
Status In Floor Process
Flags
Vote Req Approp Fiscal Cmte Local Prog Subs Chgs Urgency Tax Levy Active?
Majority No Yes No None No No Y
i
Leginfo Link  
Bill 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.
Versions
Amended Senate     2025-06-23
Introduced     2025-03-10
Analyses TBD
Latest Text Bill Full Text
Latest 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.