The bill amends section 4141.24 of the Revised Code to enhance the framework governing professional employer organizations (PEOs) and alternate employer organizations under the Unemployment Compensation Law. Key updates include the establishment of separate accounts for each employer, stipulating conditions under which negative balances may lead to transfers to a mutualized account, and defining criteria for charging benefits to employer accounts. Specifically, if an employer's account has a negative balance exceeding certain thresholds, transfers will only occur if the account has shown a positive balance for two consecutive computation dates prior to the transfer date. The bill also clarifies employer responsibilities regarding voluntary payments and benefit charges, while addressing business transfers and the assignment of unemployment experience and contribution rates.

Additionally, the bill recognizes PEOs as the employer of record for shared employees for reporting purposes, requiring that each shared employee be reported under a unique subaccount. It allows for the combination of experience rates from a client employer's account before and after entering into a PEO agreement, with the option to retain this combined experience upon termination. PEOs and reporting entities can elect to report shared employees under their own account and experience rate, with a notification requirement to the director. The bill mandates the adoption of rules for alternate employer organizations and includes definitions for key terms, while also repealing the existing section 4141.24 to streamline the reporting process.

Statutes affected:
As Introduced: 4141.24
As Reported By Senate Committee: 4141.24
As Passed By Senate: 4141.24