State Updates

April 1, 2025

• Georgia: Our PEO model act bill stalled in the Senate’s Labor and Insurance subcommittee due to political rhetoric beyond our control surrounding the Workers Compensation Insurance provision. While it’s unfortunate that politics got in the way of great policy, because the subcommittee meeting did not end in a negative vote against our bill, our efforts are just paused as the bill carries over to the 2026 legislative session. We believe there are still opportunities to get our bill over the finish line next session.
  
  
• Kansas: A NAPEO-supported bill that makes some key changes to the state’s PEO Act has sailed through the House and Senate and is now awaiting the Governor's signature to become law. This bill amends the PEO Act to allow for a set renewal date of Oct 15 and removes the irrevocable letter of credit or securities requirement for PEOs. I’d be remiss if I didn’t extend a big thank you to NAPEO Vice Chair Bill Maness and Heartlands Leadership Council chair Erica Brune for all they have done in support of this bill.
  
  
• Maine: A bad bill recently was introduced that would remove the ability for a PEO to report unemployment insurance under their PEO rate. We quickly retained a lobbyist and met with Maine’s Commissioner of Labor and the Department of Labor’s senior staff. While it’s unlikely we will be able to stop the change, they are amenable to a delayed implementation timeline and are open to discussing other ways to minimize any negative impact on SMBs and PEOs.
  
  
• Maryland: The healthcare bill that would allow PEO-sponsored healthcare plans to small businesses in MD regardless continues to receive support as we received a letter of support from the Legislative Black Caucus of Maryland. Our coalition and sponsors continue to push to get the legislation across the finish line and are actively working to combat the negative influence of the Maryland Insurance Administration, particularly the new MIA Commissioner, whose behind-the-scenes concern is slowing efforts. We also testified against a business-to-business sales tax introduced in the state and Governor Moore signaled his opposition following the formation of an opposition coalition with more than 150 members, including NAPEO. 
  
  
• Montana: In a big win for NAPEO, a bill that revises current PEO application requirements by removing fingerprint and background check requirements for PEOs during their initial registration and annual renewal has passed out of the senate is headed to the governor's desk to be signed into law. The NAPEO SGA team has been engaged in this effort through collaboration with the Department of Insurance and by testifying before committee in both the House and Senate. 
  
  
• New Jersey: NAPEO legislation clarifying the client, not the PEO, is liable for the immediate and simultaneous notification requirement to the Department of Labor and Workforce Development when an employee is separated from their employer, unanimously passed out of the Senate and has been introduced by our Assembly sponsor Deputy Majority Leader and Chair of the Labor Committee, Assemblyman Anthony Verrelli (D).  This week A5506 was introduced and referred to the Assembly Labor Committee. 
  
  
• Oregon: Our UI reporting bill that codifies existing PEO UI reporting practices is scheduled for public hearing on March 31. NAPEO and several members will be providing testimony in support of the bill. If our bill passes, it will end our ongoing battle with OED to prevent a UI reporting change to solely client level reporting.