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State of Ohio moves forward with PEO Legislation

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Article Title: State of Ohio moves forward with PEO Legislation - Source: State of Ohio - 1/28/2010

The State of Ohio has moved forward to consider legislation regarding the operation of Professional Employer Organizations operating in Ohio. Included in the bill are provisions for PEOs to be the employer of record for Unemployment Insurance and to use subaccounts for client level tracking. Also included were provisions for benefit plan sponsorships and clarification of workers' compensation classifications. - (1) A professional employer organization shall not be liable for the acts, errors, and omissions of a client employer or a shared employee when those acts, errors, and omissions occur under the direction and control of the client employer. (2) A client employer shall not be liable for the acts, errors, and omissions of a professional employer organization or a shared employee when those acts, errors, and omissions occur under the direction and control of the professional employer organization. (D) Nothing in divisions (B) and (C) of this section shall be construed to limit any liability or obligation specifically agreed to in the professional employer organization agreement.