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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.
Introduced
Mar 10, 2025
Last Action
Sep 8, 2025
Session
CA 20252026
Sponsors
1 primary · 0 co
Ordered to inactive file at the request of Senator Smallwood-Cuevas.
Read second time. Ordered to third reading.
From committee: Do pass. (Ayes 5. Noes 2.) (August 29).
In committee: Referred to suspense file.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 1.) (July 9). Re-referred to Com. on APPR.
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.
Referred to Com. on L., P.E. & R.
In Senate. Read first time. To Com. on RLS. for assignment.
Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1570.)
Read second time. Ordered to Consent Calendar.
From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (May 7).
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.
Referred to Com. on L. & E.
From printer. May be heard in committee April 10.
Read first time. To print.
Get a plain-English explanation of what this bill does, who it affects, and why it matters.
Ordered to inactive file at the request of Senator Smallwood-Cuevas.
Committee on Labor and Employment