Professional employer organizations.

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 authorizes the Director of Industrial Relations to adopt regulations reasonably necessary to carry out certain laws relating to workers' compensation insurance requirements, including regulations regulating the workers' compensation self-insurance obligations of professional employer organizations.

This bill would define the terms "professional employer organization" and "professional employer services" for purposes of the Labor Code.