The bill amends section 4141.24 of the Revised Code to enhance the regulatory framework for 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 to employer accounts based on remuneration. The bill also outlines processes for voluntary payments by employers, the management of benefits charged to employer accounts, and the termination procedures for accounts of employers that have ceased operations. Notably, it deletes previous language regarding the method of reporting quarterly wages by PEOs, suggesting a move towards a more streamlined reporting process.

Furthermore, the bill clarifies that PEOs will be recognized as the employer of record for shared employees, requiring each shared employee to be reported under a unique subaccount. It mandates the establishment of rules for determining experience rates for client employers and allows for the combination of experience rates prior to entering into a PEO agreement. Additionally, PEOs must provide a power of attorney from each client employer to act on their behalf and are permitted to submit reporting and payment data collectively. The bill also repeals the existing section 4141.24, indicating a comprehensive update to the management and reporting obligations of PEOs.

Statutes affected:
As Introduced: 4141.24