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Committee clarifies separation reporting: bill shifts reporting liability from PEOs to client companies
Summary
Senate Bill 3773, approved by the Senate Labor Committee, would make client companies — not Professional Employer Organizations (PEOs) — responsible for reporting employee separations to the Department of Labor, responding to industry concerns about immediate reporting timelines.
The Senate Labor Committee voted Dec. 5 to advance S3773, a bill that would place the legal responsibility for reporting employee separations to the Department of Labor and Workforce Development on the client company rather than on Professional Employer Organizations (PEOs).
Industry representatives told the committee the current statute and proposed…
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