Unemployment insurance: professional employer organizations.

Existing law requires that the determination of the employer-employee relationship be made pursuant to common-law principles, with specified exceptions. Existing law provides that when an individual or entity contracts to supply an employee to perform services for a customer or client and is a leasing employer or a temporary services employer, as defined, the individual or entity is the employer of the employee who performs the services. This bill would, on and after January 1, 2012, for purposes of all unemployment insurance laws of this state, provide that a professional employer organization, as defined, shall be deemed to be an employing unit for covered employees under a professional employer agreement, as defined. This bill would require the Employment Development Department to administer the provisions of the bill, as specified. This bill would impose various requirements on professional services organizations and clients, and would also provide for an assessment, fines, and disciplinary actions.