Professional employer organizations.

Existing law requires employers to make specified payments and withholdings from wages paid for employment to the Employment Development Department, which also is charged with administering the state's unemployment insurance program. Existing law also requires employers, as defined, to register with the department, and imposes penalties on employers for failure to register. This bill would prohibit a person or entity from providing, advertising for, or otherwise holding itself out as providing, professional employer services in the state, unless that person or entity is registered as a professional employer organization with the department. The bill would require the director to prescribe rules establishing the method for professional employer organizations to report quarterly wages and contributions to the director for worksite employees, as specified.