AB-1515 • 2026

Professional employer organizations.

Labor Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Committee on Labor and Employment (A) - (Assembly Members Ortega (Chair), Elhawary, Kalra, and Ward)
Last action: 2025-09-08
Official status: Ordered to inactive file at the request of Senator Smallwood-Cuevas.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details about updates to reporting requirements for safe working conditions, only that annual reports will be submitted to the Governor and posted online.

Professional Employer Organizations Registration

This law requires professional employer organizations (PEOs) to register with the state and pay a fee, and it updates reporting requirements for workplace safety.

What This Bill Does

Requires PEOs to register with the Division of Labor Standards Enforcement before providing services in California.
Sets an initial registration fee for PEOs that covers the cost of registering them.
Adds a requirement for the Director of Industrial Relations to send annual reports on workplace safety to both the Governor and post online.

Who It Names or Affects

Professional employer organizations (PEOs) in California
The Division of Labor Standards Enforcement within the Department of Industrial Relations

Terms To Know

Professional Employer Organization (PEO): A company that provides human resources, employment law compliance, and benefits administration services to other businesses.
Division of Labor Standards Enforcement: An agency within the California Department of Industrial Relations responsible for enforcing labor laws.

Limits and Unknowns

The bill does not specify what happens if a PEO fails to register.
It is unclear how much the registration fee will be, but it must cover the cost of registering the PEO.
The exact details of nonsubstantive changes are not provided in the summary.

Bill History

2025-09-08 California Legislative Information
Ordered to inactive file at the request of Senator Smallwood-Cuevas.
2025-08-29 California Legislative Information
Read second time. Ordered to third reading.
2025-08-29 California Legislative Information
From committee: Do pass. (Ayes 5. Noes 2.) (August 29).
2025-08-18 California Legislative Information
In committee: Referred to suspense file.
2025-07-09 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 1.) (July 9). Re-referred to Com. on APPR.
2025-06-23 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R.
2025-05-28 California Legislative Information
Referred to Com. on L., P.E. & R.
2025-05-15 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2025-05-15 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1570.)
2025-05-08 California Legislative Information
Read second time. Ordered to Consent Calendar.
2025-05-07 California Legislative Information
From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (May 7).
2025-04-24 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (April 23). Re-referred to Com. on APPR.
2025-03-17 California Legislative Information
Referred to Com. on L. & E.
2025-03-11 California Legislative Information
From printer. May be heard in committee April 10.
2025-03-10 California Legislative Information
Read first time. To print.

Official Summary Text

AB 1515, as amended, Committee on Labor and Employment.
Division of Occupational Safety and Health: report.
Professional employer organizations.
Existing federal law provides for certification of a professional employer organization (PEO) by the Secretary of the Treasury and, for purposes of specified taxes and other obligations, treats a PEO as the employer of any work site employee performing services for any customer of the PEO. Existing law establishes the Division of Labor Standards Enforcement, headed by the Labor Commissioner, within the Department of Industrial Relations, for the purpose of enforcing labor laws.
This bill would prohibit a person from providing, advertising, or otherwise holding oneself out as providing professional employer services, as defined, in the state unless the
person is registered with the division. The bill would require a PEO, as defined, upon registration, to pay an initial registration fee established by the division not to exceed the reasonable cost of registration.
Existing law establishes the Division of Occupational Safety and Health in the Department of Industrial Relations, and charges the division with the enforcement of various laws affecting safe working conditions, including the California Occupational Safety and Health Act of 1973. Existing law requires the Director of Industrial Relations to prepare and submit to the Legislature an annual report on the activities of the division, as specified.
This bill would additionally require the director to submit the report to the Governor and post the report on the department’s internet website. This bill would also make nonsubstantive changes
to those provisions.

Current Bill Text

Read the full stored bill text

Download Bill PDF