Professional employer organizations.

Provides that, for purposes of the unemployment compensation system law, a professional employer organization (PEO): (1) that enters into a professional employer agreement is not treated as a successor employer or as receiving a transfer of a trade or business; (2) that elects to use the PEO level reporting method is liable for contributions, interest, penalties, and surcharges for the duration of a professional employer agreement unless the PEO elects to change to the client level reporting method; and (3) is permitted to apply certain wages to the maximum amount of wages that are subject to contributions to the system. Provides that certain changes in a PEO relationship do not make a client a successor employer. Provides that a PEO that has made an election to use the client level reporting method may file a request for clearance with the department of workforce development.