CA AB2570

Requires professional employer organizations (PEOs) to register with the Employment Development Department and be deemed employing units for unemployment insurance purposes effective January 1, 2012

PEOs must establish master accounts and subaccounts for each client employer, with client employer experience ratings calculated separately on PEO UI-ETT subaccounts

Applicants must provide surety bonds (15-25% of unemployment insurance and disability insurance contributions based on employee count), annual assessments set by the department, and ownership statements excluding felons or those with revoked PEO registrations

PEOs must notify covered employees annually of the employment relationship and provide the department with client employer information and covered employee details within 14 days of agreement effective dates or terminations

Unregistered PEOs operating after June 1, 2012 face civil penalties of $100 per day up to $10,000 maximum; department may revoke registration and pursue enforcement for unpaid taxes using surety bonds