The bill amends section 4141.24 of the Revised Code to enhance the regulation of professional employer organizations (PEOs) and alternate employer organizations under the Unemployment Compensation Law. Key updates include the establishment of separate accounts for each employer, conditions for transferring negative balances to a mutualized account, and criteria for charging benefits based on remuneration. The bill also outlines the process for voluntary payments by employers and their impact on account balances. Additionally, it introduces provisions regarding the transfer of unemployment experience during business acquisitions, ensuring that such experience is not transferred if the acquisition aims primarily at obtaining a lower contribution rate. The bill mandates the director to adopt rules for common contribution rates and addresses reporting requirements for PEOs, while deleting specific methods of reporting quarterly wages, indicating a move towards a more streamlined approach.

Furthermore, the bill clarifies the role of PEOs as the employer of record for shared employees and requires that each shared employee be reported under a unique subaccount to accurately reflect their experience. It modifies the rules for determining experience rates, allowing for the combination of experience rates from a client employer's account before entering into a PEO agreement. The bill also requires PEOs to obtain authorization from client employers to act on their behalf and permits collective transmission of reporting and payment data to the director. New definitions for "client employer" and "shared employee" are introduced, aligning them with existing definitions in the Revised Code, and the previous section 4141.24 is repealed to streamline the legal framework governing these organizations.

Statutes affected:
As Introduced: 4141.24