Today the Ohio House of Representatives passed legislation to modernize the state’s laws dealing with Professional Employer Organizations (PEOs), which contract with small and medium-sized businesses to provide assistance with human resources, unemployment, payroll, health care and other administrative needs.

The legislation, Senate Bill 139, requires PEOs to submit audited financial statements that provide transparency into their operations and to maintain the working capital to protect client businesses from unexpected PEO failures. It also promotes competitiveness by clarifying that businesses using PEOs can receive the same economic development incentives as other businesses of their size.

“Professional Employers Organizations are very useful to many businesses, helping the businesses themselves to focus their time and effort into the core of what the business is there for, rather than some of the administrative tasks,” said Representative Richard Adams, chairman of the House Commerce and Labor Committee. “Senate Bill 139 makes important changes to the laws governing PEOs, and I’m confident that it is a step in the right direction for both employers and employees.”

There are currently 237 registered PEOs in the State of Ohio.