Ohio 136th General Assembly Status: Enacted 1 R cosponsors

SB 263 — Regards professional employer organizations and Unemployment Law

Last action — Effective 9/17/26

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced September 17, 2026. Enacted.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 56% · moderate confidence

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 R).

  • Mixed recorded votes

    3 passed, 2 failed in recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

The bill amends how professional employer organizations are treated under Unemployment Compensation Law.

This legislation modifies the provisions of Unemployment Compensation Law that apply to professional employer organizations and alternate employer organizations. It aims to clarify how these organizations are treated in terms of unemployment benefits.

Summary

To amend section 4141.24 of the Revised Code to make changes regarding the treatment of professional employer organizations and alternate employer organizations under the Unemployment Compensation Law.

Bill Text

What changed in the latest version

306 added · 463 removed

Plain-language change summary

The amendment to Bill SB 263 modifies how the state handles contributions from employers who work with professional and alternate employer organizations under the Unemployment Compensation Law. Specifically, it clarifies the rules regarding how negative balances in employers' accounts are treated, particularly in cases where negative balances exceed a certain threshold relative to their annual payroll. This change is significant because it ensures that employers do not face disproportionate penalties for negative balances, potentially easing their financial burden and supporting their ability to comply with unemployment contribution requirements.

→
Previous
Latest
As Passed by the Senate 136th General Assembly Regular Session Sub.
(136th GeneralAssembly) (Substitute Senate Bill Number 263) ANACT To amend section 4141.24 of the Revised Code to make changes regarding the treatment of professional employer organizations and alternate employer organizations under the Unemployment Compensation Law.
S.
Be it enacted by the General Assembly of the State of Ohio:
B.
SECTION 1.
No.
That section 4141.24 of the Revised Code be amended to read as follows:
263 2025-2026 Senator Roegner Cosponsors:
Sec.
Senators Blackshear, Cirino, DeMora, Gavarone, Hicks-Hudson, Ingram, Lang, Patton, Reineke, Reynolds, Romanchuk, Schaffer, Timken, Weinstein, Wilson To amend section 4141.24 of the Revised Code to 1 make changes regarding the treatment of 2 professional employer organizations and 3 alternate employer organizations under the 4 Unemployment Compensation Law.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1.
That section 4141.24 of the Revised Code be 6 amended to read as follows:
7 Sec.
(A)(1) The director of job and family 8 services shall maintain a separate account for each employer 9 and, except as otherwise provided in division (B) of section 10 4141.25 of the Revised Code respecting mutualized contributions, 11 shall credit such employer's account with all the contributions, 12 or payments in lieu of contributions, which the employer has 13 paid on the employer's own behalf.
(A)(1) The director of job and family services shall maintain a separate account for each employer and, except as otherwise provided in division (B) of section 4141.25 of the Revised Code respecting mutualized contributions, shall credit such employer's account with all the contributions, or payments in lieu of contributions, which the employer has paid on the employer's own behalf.
14 (2) If, as of the computation date, a contributory 15 employer's account shows a negative balance computed as provided 16 in division (A)(3) of section 4141.25 of the Revised Code, less 17 any contributions due and unpaid on such date, which negative 18 Sub.
(2) If, as of the computation date, a contributory employer's account shows a negative balance computed as provided in division (A)(3) of section 4141.25 of the Revised Code, less any contributions due and unpaid on such date, which negative balance is in excess of the limitations imposed by divisions (A)(2)(a), (b), and (c) of this section and if the employer's account is otherwise eligible for the transfer, then before the employer's contribution rate is computed for the next succeeding contribution period, an amount equal to the amount of the excess eligible for transfer shall be permanently transferred from the account of such employer and charged to the mutualized account provided in division (B) of section 4141.25 of the Revised Code.
(a) If as of any computation date, a contributory employer's account shows a negative balance in excess of ten per cent of the employer's average annual payroll, then before the employer's contribution rate is computed for the next succeeding contribution period, an amount equal to the amount of the excess shall be transferred from the account as provided in this division.
No contributory employer's account may have any excess transferred pursuant to division (A)(2)(a) of this section, unless the employer's account has shown a positive balance for at least two consecutive computation dates prior to the computation date with respect to which the transfer is proposed.
Each time a transfer is made pursuant to division (A)(2)(a) of this section, the employer's account is ineligible for any additional transfers under that division, until the account shows a positive balance for at least two consecutive computation dates subsequent to the computation date of which the most recent transfer occurs pursuant to division (A)(2)(a), (b), or (c) of this section.
(b) If at the next computation date after the computation date at which a transfer from the account occurs pursuant to division (A)(2)(a) of this section, a contributory employer's account shows a negative balance in excess of fifteen per cent of the employer's average annual payroll, then Sub.
263 Page 2 As Passed by the Senate balance is in excess of the limitations imposed by divisions (A) 19 (2)(a), (b), and (c) of this section and if the employer's 20 account is otherwise eligible for the transfer, then before the 21 employer's contribution rate is computed for the next succeeding 22 contribution period, an amount equal to the amount of the excess 23 eligible for transfer shall be permanently transferred from the 24 account of such employer and charged to the mutualized account 25 provided in division (B) of section 4141.25 of the Revised Code.
263 136th G.A.
26 (a) If as of any computation date, a contributory 27 employer's account shows a negative balance in excess of ten per 28 cent of the employer's average annual payroll, then before the 29 employer's contribution rate is computed for the next succeeding 30 contribution period, an amount equal to the amount of the excess 31 shall be transferred from the account as provided in this 32 division.
before the employer's contribution rate is computed for the next succeeding contribution period an amount equal to the amount of the excess shall be permanently transferred from the account as provided in this division.
No contributory employer's account may have any excess 33 transferred pursuant to division (A)(2)(a) of this section, 34 unless the employer's account has shown a positive balance for 35 at least two consecutive computation dates prior to the 36 computation date with respect to which the transfer is proposed.
(c) If at the next computation date subsequent to the computation date at which a transfer from a contributory employer's account occurs pursuant to division (A)(2)(b) of this section, the employer's account shows a negative balance in excess of twenty per cent of the employer's average annual payroll, then before the employer's contribution rate is computed for the next succeeding contribution period, an amount equal to the amount of the excess shall be permanently transferred from the account as provided in this division.
37 Each time a transfer is made pursuant to division (A)(2)(a) of 38 this section, the employer's account is ineligible for any 39 additional transfers under that division, until the account 40 shows a positive balance for at least two consecutive 41 computation dates subsequent to the computation date of which 42 the most recent transfer occurs pursuant to division (A)(2)(a), 43 (b), or (c) of this section.
(d) If no transfer occurs pursuant to division (A)(2)(b) or (c) of this section, the employer's account is ineligible for any additional transfers under division (A)(2) of this section until the account requalifies for a transfer pursuant to division (A)(2)(a) of this section.
44 (b) If at the next computation date after the computation 45 date at which a transfer from the account occurs pursuant to 46 division (A)(2)(a) of this section, a contributory employer's 47 account shows a negative balance in excess of fifteen per cent 48 of the employer's average annual payroll, then before the 49 Sub.
(B) Any employer may make voluntary payments in addition to the contributions required under this chapter, in accordance with rules established by the director.
Such payments shall be included in the employer's account as of the computation date, provided they are received by the director by the thirty-first day of December following such computation date.
Such voluntary payment, when accepted from an employer, will not be refunded in whole or in part.
In determining whether an employer's account has a positive balance on two consecutive computation dates and is eligible for transfers under division (A)(2) of this section, the director shall exclude any voluntary payments made subsequent to the last transfer made under division (A)(2) of this section.
(C) All contributions to the fund shall be pooled and available to pay benefits to any individual entitled to benefits irrespective of the source of such contributions.
(D)(1) For the purposes of this section and sections 4141.241 and 4141.242 of the Revised Code, an employer's account shall be charged only for benefits based on remuneration paid by such employer.
Benefits paid to an eligible individual shall be charged against the account of each employer within the claimant's base period in the proportion to which wages attributable to each employer of the claimant bears to the claimant's total base period wages.
Charges to the account of a base period employer with whom the claimant is employed part-time at the time the claimant's application for a determination of benefits rights is filed shall be charged to the mutualized account when all of the following conditions are met:
(a) The claimant also worked part-time for the employer during the base period of the claim.
(b) The claimant is unemployed due to loss of other employment.
(c) The employer is not a reimbursing employer under section 4141.241 or 4141.242 of the Revised Code.
(2) Notwithstanding division (D)(1) of this section, charges to the account of any employer, including any reimbursing employer, shall be charged to the mutualized account if it finally is determined by a court on appeal that the employer's account is not chargeable for the benefits.
(3)(a) Any benefits paid to a claimant under section 4141.28 of the Revised Code prior to a Sub.
263 Page 3 As Passed by the Senate employer's contribution rate is computed for the next succeeding 50 contribution period an amount equal to the amount of the excess 51 shall be permanently transferred from the account as provided in 52 this division.
263 136th G.A.
53 (c) If at the next computation date subsequent to the 54 computation date at which a transfer from a contributory 55 employer's account occurs pursuant to division (A)(2)(b) of this 56 section, the employer's account shows a negative balance in 57 excess of twenty per cent of the employer's average annual 58 payroll, then before the employer's contribution rate is 59 computed for the next succeeding contribution period, an amount 60 equal to the amount of the excess shall be permanently 61 transferred from the account as provided in this division.
final determination of the claimant's right to the benefits shall be charged to the employer's account as provided in division (D)(1) of this section, provided that if there is no final determination of the claim by the subsequent thirtieth day of June, the employer's account shall be credited with the total amount of benefits that has been paid prior to that date, based on the determination that has not become final.
62 (d) If no transfer occurs pursuant to division (A)(2)(b) 63 or (c) of this section, the employer's account is ineligible for 64 any additional transfers under division (A)(2) of this section 65 until the account requalifies for a transfer pursuant to 66 division (A)(2)(a) of this section.
The total amount credited to the employer's account shall be charged to a suspense account, which shall be maintained as a separate bookkeeping account and administered as a part of this section, and shall not be used in determining the account balance of the employer for the purpose of computing the employer's contribution rate under section 4141.25 of the Revised Code.
67 (B) Any employer may make voluntary payments in addition 68 to the contributions required under this chapter, in accordance 69 with rules established by the director.
(b) If it is finally determined that the claimant is entitled to all or a part of the benefits in dispute, the suspense account shall be credited and the appropriate employer's account charged with the benefits.
Such payments shall be 70 included in the employer's account as of the computation date, 71 provided they are received by the director by the thirty-first 72 day of December following such computation date.
If it is finally determined that the claimant is not entitled to all or any portion of the benefits in dispute, the benefits shall be credited to the suspense account and, except as provided in division (D)(3)(d) of this section, a corresponding charge made to the mutualized account established in division (B) of section 4141.25 of the Revised Code, provided that, except as otherwise provided in this section, if benefits are chargeable to an employer or group of employers who is required or elects to make payments to the fund in lieu of contributions under section 4141.241 of the Revised Code, the benefits shall be charged to the employer's account in the manner provided in division (D)(1) of this section and division (B) of section 4141.241 of the Revised Code, and no part of the benefits may be charged to the suspense account provided in this division.
Such voluntary 73 payment, when accepted from an employer, will not be refunded in 74 whole or in part.
(c) Except as provided in division (D)(3)(d) of this section, to the extent that benefits that have been paid to a claimant and charged to the employer's account are found not to be due the claimant and are recovered by the director as provided in section 4141.35 of the Revised Code, they shall be credited to the employer's account.
In determining whether an employer's account 75 has a positive balance on two consecutive computation dates and 76 is eligible for transfers under division (A)(2) of this section, 77 the director shall exclude any voluntary payments made 78 subsequent to the last transfer made under division (A)(2) of 79 Sub.
(d)(i) An employer's account shall not be credited for amounts recovered by the director pursuant to division (D)(3)(c) of this section, and the mutualized account established in division (B) of section 4141.25 of the Revised Code shall not be charged pursuant to division (D)(3)(b) of this section, for benefits that have been paid to a claimant and are subsequently found not to be due to the claimant, if it is determined by the director, on or after October 21, 2013, that both of the following have occurred:
Show all 173 changed rows (133 more)
Previous
Latest
(I) The benefits were paid because the claimant's employer, or any employee, officer, or agent of that employer, failed to respond timely or adequately to a request for information regarding a determination of benefit rights or claims for benefits under section 4141.28 of the Revised Code.
(II) The claimant's employer, or any employee, officer, or agent of that employer, on behalf of the employer, previously established a pattern of failing to respond timely or adequately within the same calendar year period pursuant to division (D)(3)(d)(ii)(III) of this section.
(ii) For purposes of division (D)(3)(d) of this section:
(I) A response is considered "timely" if the response is received by the director within the time provided under section 4141.28 of the Revised Code.
Sub.
263 Page 4 As Passed by the Senate this section.
263 136th G.A.
80 (C) All contributions to the fund shall be pooled and 81 available to pay benefits to any individual entitled to benefits 82 irrespective of the source of such contributions.
(II) A response is considered "adequate" if the employer or employee, officer, or agent of that employer provided answers to all questions raised by the director pursuant to section 4141.28 of the Revised Code or participated in a fact-finding interview if requested by the director.
83 (D)(1) For the purposes of this section and sections 84 4141.241 and 4141.242 of the Revised Code, an employer's account 85 shall be charged only for benefits based on remuneration paid by 86 such employer.
(III) A "pattern of failing" is established after the third instance of benefits being paid because the claimant's employer, or any employee, officer, or agent of that employer, on behalf of the employer, failed to respond timely or adequately to a request for information regarding a determination of benefit rights or claims for benefits under section 4141.28 of the Revised Code within a calendar year period.
Benefits paid to an eligible individual shall be 87 charged against the account of each employer within the 88 claimant's base period in the proportion to which wages 89 attributable to each employer of the claimant bears to the 90 claimant's total base period wages.
(e) If the mutualized account established in division (B) of section 4141.25 of the Revised Code is not charged for benefits credited to a suspense account pursuant to division (D)(3)(d) of this section, a corresponding charge shall be made to the account of the employer whose failure to timely or adequately respond to a request for information caused the erroneous payment.
Charges to the account of a 91 base period employer with whom the claimant is employed part- 92 time at the time the claimant's application for a determination 93 of benefits rights is filed shall be charged to the mutualized 94 account when all of the following conditions are met:
(f) The appeal provisions of sections 4141.281 and 4141.282 of the Revised Code shall apply to all determinations issued under division (D)(3)(d) of this section.
95 (a) The claimant also worked part-time for the employer 96 during the base period of the claim.
(4) The director shall notify each employer at least once each month of the benefits charged to the employer's account since the last preceding notice;
97 (b) The claimant is unemployed due to loss of other 98 employment.
except that for the purposes of sections 4141.241 and 4141.242 of the Revised Code which provides the billing of employers on a payment in lieu of a contribution basis, the director may prescribe a quarterly or less frequent notice of benefits charged to the employer's account.
99 (c) The employer is not a reimbursing employer under 100 section 4141.241 or 4141.242 of the Revised Code.
Such notice will show a summary of the amount of benefits paid which were charged to the employer's account.
101 (2) Notwithstanding division (D)(1) of this section, 102 charges to the account of any employer, including any 103 reimbursing employer, shall be charged to the mutualized account 104 if it finally is determined by a court on appeal that the 105 employer's account is not chargeable for the benefits.
This notice shall not be deemed a determination of the claimant's eligibility for benefits.
106 (3)(a) Any benefits paid to a claimant under section 107 4141.28 of the Revised Code prior to a final determination of 108 Sub.
Any employer so notified, however, may file within fifteen days after the mailing date of the notice, an exception to charges appearing on the notice on the grounds that such charges are not in accordance with this section.
The director shall promptly examine the exception to such charges and shall notify the employer of the director's decision thereon, which decision shall become final unless appealed to the unemployment compensation review commission in the manner provided in section 4141.26 of the Revised Code.
For the purposes of this division, an exception is considered timely filed when it has been received as provided in division (D)(1) of section 4141.281 of the Revised Code.
(E) The director shall terminate and close the account of any contributory employer who has been subject to this chapter if the enterprise for which the account was established is no longer in operation and it has had no payroll and its account has not been chargeable with benefits for a period of five consecutive years.
The amount of any positive balance, computed as provided in division (A) (3) of section 4141.25 of the Revised Code, in an account closed and terminated as provided in this section shall be credited to the mutualized account as provided in division (B)(2)(b) of section 4141.25 of the Revised Code.
The amount of any negative balance, computed as provided in division (A)(3) of section 4141.25 of the Revised Code, in an account closed and terminated as provided in this section shall be charged to the mutualized account as provided in division (B)(1)(b) of section 4141.25 of the Revised Code.
The amount of any positive balance or negative balance, Sub.
263 Page 5 As Passed by the Senate the claimant's right to the benefits shall be charged to the 109 employer's account as provided in division (D)(1) of this 110 section, provided that if there is no final determination of the 111 claim by the subsequent thirtieth day of June, the employer's 112 account shall be credited with the total amount of benefits that 113 has been paid prior to that date, based on the determination 114 that has not become final.
263 136th G.A.
The total amount credited to the 115 employer's account shall be charged to a suspense account, which 116 shall be maintained as a separate bookkeeping account and 117 administered as a part of this section, and shall not be used in 118 determining the account balance of the employer for the purpose 119 of computing the employer's contribution rate under section 120 4141.25 of the Revised Code.
credited or charged to the mutualized account after the termination and closing of an employer's account, shall not thereafter be considered in determining the contribution rate of such employer.
121 (b) If it is finally determined that the claimant is 122 entitled to all or a part of the benefits in dispute, the 123 suspense account shall be credited and the appropriate 124 employer's account charged with the benefits.
The closing of an employer's account as provided in this division shall not relieve such employer from liability for any unpaid contributions or payment in lieu of contributions which are due for periods prior to such closing.
If it is finally 125 determined that the claimant is not entitled to all or any 126 portion of the benefits in dispute, the benefits shall be 127 credited to the suspense account and, except as provided in 128 division (D)(3)(d) of this section, a corresponding charge made 129 to the mutualized account established in division (B) of section 130 4141.25 of the Revised Code, provided that, except as otherwise 131 provided in this section, if benefits are chargeable to an 132 employer or group of employers who is required or elects to make 133 payments to the fund in lieu of contributions under section 134 4141.241 of the Revised Code, the benefits shall be charged to 135 the employer's account in the manner provided in division (D)(1) 136 of this section and division (B) of section 4141.241 of the 137 Revised Code, and no part of the benefits may be charged to the 138 suspense account provided in this division.
If the director finds that a contributory employer's business is closed solely because of the entrance of one or more of the owners, officers, or partners, or the majority stockholder, into the armed forces of the United States, or any of its allies, or of the United Nations after July 1, 1950, such employer's account shall not be terminated and if the business is resumed within two years after the discharge or release of such persons from active duty in the armed forces, the employer's experience shall be deemed to have been continuous throughout such period.
139 Sub.
The reserve ratio of any such employer shall be the total contributions paid by such employer minus all benefits, including benefits paid to any individual during the period such employer was in the armed forces, based upon wages paid by the employer prior to the employer's entrance into the armed forces divided by the average of the employer's annual payrolls for the three most recent years during the whole of which the employer has been in business.
(F) If an employer transfers all of its trade or business to another employer or person, the acquiring employer or person shall be the successor in interest to the transferring employer and shall assume the resources and liabilities of such transferring employer's account, and continue the payment of all contributions, or payments in lieu of contributions, due under this chapter.
If an employer or person acquires substantially all, or a clearly segregable and identifiable portion of an employer's trade or business, then upon the director's approval of a properly completed application for successorship, the employer or person acquiring the trade or business, or portion thereof, shall be the successor in interest.
The director by rule may prescribe procedures for effecting transfers of experience as provided for in this section.
(G) Notwithstanding sections 4141.09, 4141.23, 4141.24, 4141.241, 4141.242, 4141.25, 4141.26, and 4141.27 of the Revised Code, both of the following apply regarding assignment of rates and transfers of experience:
(1) If an employer transfers its trade or business, or a portion thereof, to another employer and, at the time of the transfer, both employers are under substantially common ownership, management, or control, then the unemployment experience attributable to the transferred trade or business, or portion thereof, shall be transferred to the employer to whom the business is so transferred.
The director shall recalculate the rates of both employers and those rates shall be effective immediately upon the date of the transfer of the trade or business.
(2) Whenever a person is not an employer under this chapter at the time the person acquires the trade or business of an employer, the unemployment experience of the acquired trade or business shall not be transferred to the person if the director finds that the person acquired the trade or business solely or primarily for the purpose of obtaining a lower rate of contributions.
Instead, that Sub.
263 Page 6 As Passed by the Senate (c) Except as provided in division (D)(3)(d) of this 140 section, to the extent that benefits that have been paid to a 141 claimant and charged to the employer's account are found not to 142 be due the claimant and are recovered by the director as 143 provided in section 4141.35 of the Revised Code, they shall be 144 credited to the employer's account.
263 136th G.A.
145 (d)(i) An employer's account shall not be credited for 146 amounts recovered by the director pursuant to division (D)(3)(c) 147 of this section, and the mutualized account established in 148 division (B) of section 4141.25 of the Revised Code shall not be 149 charged pursuant to division (D)(3)(b) of this section, for 150 benefits that have been paid to a claimant and are subsequently 151 found not to be due to the claimant, if it is determined by the 152 director, on or after October 21, 2013, that both of the 153 following have occurred:
person shall be assigned the applicable new employer rate under division (A)(1) of section 4141.25 of the Revised Code.
154 (I) The benefits were paid because the claimant's 155 employer, or any employee, officer, or agent of that employer, 156 failed to respond timely or adequately to a request for 157 information regarding a determination of benefit rights or 158 claims for benefits under section 4141.28 of the Revised Code.
(H) The director shall establish procedures to identify the transfer or acquisition of a trade or business for purposes of this section and shall adopt rules prescribing procedures for effecting transfers of experience as described in this section.
159 (II) The claimant's employer, or any employee, officer, or 160 agent of that employer, on behalf of the employer, previously 161 established a pattern of failing to respond timely or adequately 162 within the same calendar year period pursuant to division (D)(3) 163 (d)(ii)(III) of this section.
(I) No rate of contribution less than two and seven-tenths per cent shall be permitted a contributory employer succeeding to the experience of another contributory employer pursuant to this section for any period subsequent to such succession, except in accordance with rules prescribed by the director, which rules shall be consistent with federal requirements for additional credit allowance in section 3303 of the "Internal Revenue Code of 1954" and consistent with this chapter, except that such rules may establish a computation date for any such period different from the computation date generally prescribed by this chapter, and may define "calendar year" as meaning a twelve-consecutive-month period ending on the same day of the year as that on which such computation date occurs.
164 (ii) For purposes of division (D)(3)(d) of this section:
(J) The director may prescribe rules for the establishment, maintenance, and dissolution of common contribution rates for two or more contributory employers, and in accordance with such rules and upon application by two or more employers shall establish such common rate to be computed by merging the several contribution rate factors of such employers for the purpose of establishing a common contribution rate applicable to all such employers.
165 (I) A response is considered "timely" if the response is 166 received by the director within the time provided under section 167 4141.28 of the Revised Code.
(K) The director shall adopt rules applicable to professional employer organizations and professional employer organization reporting entities to address the method in which a professional employer organization or professional employer organization reporting entity reports quarterly wages and contributions to the director for shared employees.
168 Sub.
(1) The rules shall recognize do both of the following:
(a) Recognize a professional employer organization or professional employer organization reporting entity as the employer of record of the shared employees of the professional employer organization or professional employer organization reporting entity for reporting purposes;
however, the rules shall (b) Except as provided in division (K)(5) of this section, require that each shared employee of a single client employer be reported under a separate and unique subaccount of the professional employer organization or professional employer organization reporting entity to reflect the experience of the shared employees of that client employer.
(2) The director shall use a subaccount solely to determine experience rates for that individual subaccount on an annual basis and shall recognize a professional employer organization or professional employer organization reporting entity as the employer of record associated with each subaccount.
The director shall may combine the rate experience that existed on a client employer's account prior to entering into a professional employer organization agreement with the experience accumulated as a subaccount of attributable to the client employer while subject to the Sub.
263 Page 7 As Passed by the Senate (II) A response is considered "adequate" if the employer 169 or employee, officer, or agent of that employer provided answers 170 to all questions raised by the director pursuant to section 171 4141.28 of the Revised Code or participated in a fact-finding 172 interview if requested by the director.
263 136th G.A.
173 (III) A "pattern of failing" is established after the 174 third instance of benefits being paid because the claimant's 175 employer, or any employee, officer, or agent of that employer, 176 on behalf of the employer, failed to respond timely or 177 adequately to a request for information regarding a 178 determination of benefit rights or claims for benefits under 179 section 4141.28 of the Revised Code within a calendar year 180 period.
agreement with the professional employer organization or professional employer organization reporting entity.
181 (e) If the mutualized account established in division (B) 182 of section 4141.25 of the Revised Code is not charged for 183 benefits credited to a suspense account pursuant to division (D) 184 (3)(d) of this section, a corresponding charge shall be made to 185 the account of the employer whose failure to timely or 186 adequately respond to a request for information caused the 187 erroneous payment.
The combined experience shall may remain with the client employer's account upon termination of the professional employer organization agreement.
188 (f) The appeal provisions of sections 4141.281 and 189 4141.282 of the Revised Code shall apply to all determinations 190 issued under division (D)(3)(d) of this section.
(3) A professional employer organization or professional employer organization reporting entity shall provide a power of attorney or other evidence, which evidence may be included as part of a professional employer organization agreement, completed by each client employer of the professional employer organization or professional employer organization reporting entity, authorizing the professional employer organization or professional employer organization reporting entity to act on behalf of the client employer in accordance with the requirements of this chapter.
191 (4) The director shall notify each employer at least once 192 each month of the benefits charged to the employer's account 193 since the last preceding notice;
(4) Any rule adopted pursuant to division (K) of this section also shall include administrative requirements that permit a professional employer organization or a professional employer organization reporting entity to transmit any reporting and payment data required under division (K) (1)(K)(1)(b) of this section collectively as a single filing with the director.
except that for the purposes of 194 sections 4141.241 and 4141.242 of the Revised Code which 195 provides the billing of employers on a payment in lieu of a 196 contribution basis, the director may prescribe a quarterly or 197 less frequent notice of benefits charged to the employer's 198 Sub.
(5)(5)(a) A professional employer organization or professional employer organization reporting entity may elect to report shared employees of a client employer under the account and experience rate of the professional employer organization or professional employer organization reporting entity by giving notice to the director.
(b) If a professional employer organization or professional employer organization reporting entity has made an election under division (K)(5)(a) of this section and the election has been in effect for two or more calendar years, the professional employer organization or professional employer organization reporting entity may change the election by notifying the director.
(c) If a professional employer organization or professional employer organization reporting entity makes or changes an election under division (K)(5)(a) or (b) of this section, the director shall recalculate the experience rate of the professional employer organization or professional employer organization reporting entity to reflect the experience attributable to the shared employees of a client employer under the election.
The recalculated rate shall be effective beginning in the calendar year following the date the director receives notice of the election.
(6) As used in division (K) of this section, "client employer," "professional employer organization," "professional employer organization agreement," "professional employer organization reporting entity," and "shared employee" have the same meanings as in section 4125.01 of the Revised Code.
(L) The director shall adopt rules applicable to alternate employer organizations as defined in section 4133.01 of the Revised Code that are consistent with the requirements of and rules adopted under division (K) of this section.
SECTION 2.
That existing section 4141.24 of the Revised Code is hereby repealed.
SECTION 3.
(A)As used in this section:
Sub.
263 Page 8 As Passed by the Senate account.
263 136th G.A.
Such notice will show a summary of the amount of 199 benefits paid which were charged to the employer's account.
(1) "Professional employer organization," "professional employer organization reporting entity," and "shared employee" have the same meanings as in section 4125.01 of the Revised Code.
This 200 notice shall not be deemed a determination of the claimant's 201 eligibility for benefits.
(2) "Alternate employer organization" and "worksite employee" have the same meanings as in section 4133.01 of the Revised Code.
Any employer so notified, however, may 202 file within fifteen days after the mailing date of the notice, 203 an exception to charges appearing on the notice on the grounds 204 that such charges are not in accordance with this section.
(B) A professional employer organization, professional employer organization reporting entity, or alternate employer organization may elect to report quarterly wages and contributions for shared or worksite employees using the organization's or entity's account and experience rate under division (K)(5) of section 4141.24 of the Revised Code, as amended by this act, by giving notice to the Director of Job and Family Services.
The 205 director shall promptly examine the exception to such charges 206 and shall notify the employer of the director's decision 207 thereon, which decision shall become final unless appealed to 208 the unemployment compensation review commission in the manner 209 provided in section 4141.26 of the Revised Code.
To be valid, the notice must be received by the Director not later than sixty days after the effective date of this section.
For the 210 purposes of this division, an exception is considered timely 211 filed when it has been received as provided in division (D)(1) 212 of section 4141.281 of the Revised Code.
(C) If a professional employer organization, professional employer organization reporting entity, or alternate employer organization makes an election under division (B) of this section, the Director shall recalculate the experience rate of the professional employer organization, professional employer organization reporting entity, or alternate employer organization to reflect the experience attributable to the shared or worksite employees of a client employer under the election.
213 (E) The director shall terminate and close the account of 214 any contributory employer who has been subject to this chapter 215 if the enterprise for which the account was established is no 216 longer in operation and it has had no payroll and its account 217 has not been chargeable with benefits for a period of five 218 consecutive years.
The recalculated rate shall be effective immediately upon the date the Director receives notice of the election.
The amount of any positive balance, computed 219 as provided in division (A)(3) of section 4141.25 of the Revised 220 Code, in an account closed and terminated as provided in this 221 section shall be credited to the mutualized account as provided 222 in division (B)(2)(b) of section 4141.25 of the Revised Code.
Sub.
223 The amount of any negative balance, computed as provided in 224 division (A)(3) of section 4141.25 of the Revised Code, in an 225 account closed and terminated as provided in this section shall 226 be charged to the mutualized account as provided in division (B) 227 (1)(b) of section 4141.25 of the Revised Code.
The amount of any 228 positive balance or negative balance, credited or charged to the 229 Sub.
263 Page 9 As Passed by the Senate mutualized account after the termination and closing of an 230 employer's account, shall not thereafter be considered in 231 determining the contribution rate of such employer.
263 136th G.A.
The closing 232 of an employer's account as provided in this division shall not 233 relieve such employer from liability for any unpaid 234 contributions or payment in lieu of contributions which are due 235 for periods prior to such closing.
Speaker ___________________ of the House of Representatives.
236 If the director finds that a contributory employer's 237 business is closed solely because of the entrance of one or more 238 of the owners, officers, or partners, or the majority 239 stockholder, into the armed forces of the United States, or any 240 of its allies, or of the United Nations after July 1, 1950, such 241 employer's account shall not be terminated and if the business 242 is resumed within two years after the discharge or release of 243 such persons from active duty in the armed forces, the 244 employer's experience shall be deemed to have been continuous 245 throughout such period.
President ___________________ of the Senate.
The reserve ratio of any such employer 246 shall be the total contributions paid by such employer minus all 247 benefits, including benefits paid to any individual during the 248 period such employer was in the armed forces, based upon wages 249 paid by the employer prior to the employer's entrance into the 250 armed forces divided by the average of the employer's annual 251 payrolls for the three most recent years during the whole of 252 which the employer has been in business.
Passed ________________________, 20____ Approved ________________________, 20____ Governor.
253 (F) If an employer transfers all of its trade or business 254 to another employer or person, the acquiring employer or person 255 shall be the successor in interest to the transferring employer 256 and shall assume the resources and liabilities of such 257 transferring employer's account, and continue the payment of all 258 contributions, or payments in lieu of contributions, due under 259 this chapter.
Sub.
260 Sub.
263 Page 10 As Passed by the Senate If an employer or person acquires substantially all, or a 261 clearly segregable and identifiable portion of an employer's 262 trade or business, then upon the director's approval of a 263 properly completed application for successorship, the employer 264 or person acquiring the trade or business, or portion thereof, 265 shall be the successor in interest.
263 136th G.A.
The director by rule may 266 prescribe procedures for effecting transfers of experience as 267 provided for in this section.
The section numbering of law of a general and permanent nature is complete and in conformity with the Revised Code.
268 (G) Notwithstanding sections 4141.09, 4141.23, 4141.24, 269 4141.241, 4141.242, 4141.25, 4141.26, and 4141.27 of the Revised 270 Code, both of the following apply regarding assignment of rates 271 and transfers of experience:
Director, Legislative Service Commission.
272 (1) If an employer transfers its trade or business, or a 273 portion thereof, to another employer and, at the time of the 274 transfer, both employers are under substantially common 275 ownership, management, or control, then the unemployment 276 experience attributable to the transferred trade or business, or 277 portion thereof, shall be transferred to the employer to whom 278 the business is so transferred.
Filed in the office of the Secretary of State at Columbus, Ohio, on the ____ day of ___________,A.
The director shall recalculate 279 the rates of both employers and those rates shall be effective 280 immediately upon the date of the transfer of the trade or 281 business.
D.
282 (2) Whenever a person is not an employer under this 283 chapter at the time the person acquires the trade or business of 284 an employer, the unemployment experience of the acquired trade 285 or business shall not be transferred to the person if the 286 director finds that the person acquired the trade or business 287 solely or primarily for the purpose of obtaining a lower rate of 288 contributions.
20____.
Instead, that person shall be assigned the 289 applicable new employer rate under division (A)(1) of section 290 Sub.
Secretary of State.
S.
File No.
B.
_________ Effective Date ___________________
No.
263 Page 11 As Passed by the Senate 4141.25 of the Revised Code.
291 (H) The director shall establish procedures to identify 292 the transfer or acquisition of a trade or business for purposes 293 of this section and shall adopt rules prescribing procedures for 294 effecting transfers of experience as described in this section.
295 (I) No rate of contribution less than two and seven-tenths 296 per cent shall be permitted a contributory employer succeeding 297 to the experience of another contributory employer pursuant to 298 this section for any period subsequent to such succession, 299 except in accordance with rules prescribed by the director, 300 which rules shall be consistent with federal requirements for 301 additional credit allowance in section 3303 of the "Internal 302 Revenue Code of 1954" and consistent with this chapter, except 303 that such rules may establish a computation date for any such 304 period different from the computation date generally prescribed 305 by this chapter, and may define "calendar year" as meaning a 306 twelve-consecutive-month period ending on the same day of the 307 year as that on which such computation date occurs.
308 (J) The director may prescribe rules for the 309 establishment, maintenance, and dissolution of common 310 contribution rates for two or more contributory employers, and 311 in accordance with such rules and upon application by two or 312 more employers shall establish such common rate to be computed 313 by merging the several contribution rate factors of such 314 employers for the purpose of establishing a common contribution 315 rate applicable to all such employers.
316 (K) The director shall adopt rules applicable to 317 professional employer organizations and professional employer 318 organization reporting entities to address the method in which a 319 professional employer organization or professional employer 320 Sub.
S.
B.
No.
263 Page 12 As Passed by the Senate organization reporting entity reports quarterly wages and 321 contributions to the director for shared employees.
322 (1) The rules shall recognize do both of the following:
323 (a) Recognize a professional employer organization or 324 professional employer organization reporting entity as the 325 employer of record of the shared employees of the professional 326 employer organization or professional employer organization 327 reporting entity for reporting purposes;
however, the 328 rules shall (b) Except as provided in division (K)(5) of 329 this section, require that each shared employee of a single 330 client employer be reported under a separate and unique 331 subaccount of the professional employer organization or 332 professional employer organization reporting entity to reflect 333 the experience of the shared employees of that client employer.
334 (2) The director shall use a subaccount solely to 335 determine experience rates for that individual subaccount on an 336 annual basis and shall recognize a professional employer 337 organization or professional employer organization reporting 338 entity as the employer of record associated with each 339 subaccount.
The director shall may combine the rate experience 340 that existed on a client employer's account prior to entering 341 into a professional employer organization agreement with the 342 experience accumulated as a subaccount of attributable to the 343 client employer while subject to the agreement with the 344 professional employer organization or professional employer 345 organization reporting entity.
The combined experience shall may 346 remain with the client employer's account upon termination of 347 the professional employer organization agreement.
348 (3) A professional employer organization or professional 349 Sub.
S.
B.
No.
263 Page 13 As Passed by the Senate employer organization reporting entity shall provide a power of 350 attorney or other evidence, which evidence may be included as 351 part of a professional employer organization agreement, 352 completed by each client employer of the professional employer 353 organization or professional employer organization reporting 354 entity, authorizing the professional employer organization or 355 professional employer organization reporting entity to act on 356 behalf of the client employer in accordance with the 357 requirements of this chapter.
358 (4) Any rule adopted pursuant to division (K) of this 359 section also shall include administrative requirements that 360 permit a professional employer organization or a professional 361 employer organization reporting entity to transmit any reporting 362 and payment data required under division (K)(1)(K)(1)(b) of this 363 section collectively as a single filing with the director.
364 (5)(5)(a) A professional employer organization or 365 professional employer organization reporting entity may elect to 366 report shared employees of a client employer under the account 367 and experience rate of the professional employer organization or 368 professional employer organization reporting entity by giving 369 notice to the director.
370 (b) If a professional employer organization or 371 professional employer organization reporting entity has made an 372 election under division (K)(5)(a) of this section and the 373 election has been in effect for two or more calendar years, the 374 professional employer organization or professional employer 375 organization reporting entity may change the election by 376 notifying the director.
377 (c) If a professional employer organization or 378 professional employer organization reporting entity makes or 379 Sub.
S.
B.
No.
263 Page 14 As Passed by the Senate changes an election under division (K)(5)(a) or (b) of this 380 section, the director shall recalculate the experience rate of 381 the professional employer organization or professional employer 382 organization reporting entity to reflect the experience 383 attributable to the shared employees of a client employer under 384 the election.
The recalculated rate shall be effective beginning 385 in the calendar year following the date the director receives 386 notice of the election.
387 (6) As used in division (K) of this section, "client 388 employer," "professional employer organization," "professional 389 employer organization agreement," "professional employer 390 organization reporting entity," and "shared employee" have the 391 same meanings as in section 4125.01 of the Revised Code.
392 (L) The director shall adopt rules applicable to alternate 393 employer organizations as defined in section 4133.01 of the 394 Revised Code that are consistent with the requirements of and 395 rules adopted under division (K) of this section.
396 Section 2.
That existing section 4141.24 of the Revised 397 Code is hereby repealed.
398 Section 3.
(A) As used in this section:
399 (1) "Professional employer organization," "professional 400 employer organization reporting entity," and "shared employee" 401 have the same meanings as in section 4125.01 of the Revised 402 Code.
403 (2) "Alternate employer organization" and "worksite 404 employee" have the same meanings as in section 4133.01 of the 405 Revised Code.
406 (B) A professional employer organization, professional 407 employer organization reporting entity, or alternate employer 408 Sub.
S.
B.
No.
263 Page 15 As Passed by the Senate organization may elect to report quarterly wages and 409 contributions for shared or worksite employees using the 410 organization's or entity's account and experience rate under 411 division (K)(5) of section 4141.24 of the Revised Code, as 412 amended by this act, by giving notice to the Director of Job and 413 Family Services.
To be valid, the notice must be received by the 414 Director not later than sixty days after the effective date of 415 this section.
416 (C) If a professional employer organization, professional 417 employer organization reporting entity, or alternate employer 418 organization makes an election under division (B) of this 419 section, the Director shall recalculate the experience rate of 420 the professional employer organization, professional employer 421 organization reporting entity, or alternate employer 422 organization to reflect the experience attributable to the 423 shared or worksite employees of a client employer under the 424 election.
The recalculated rate shall be effective immediately 425 upon the date the Director receives notice of the election.
426
⬇ Download PDF
View plain text versions (6)

How this bill changes current law

5 changes Share ↗

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill amends section 4141.24 of the Revised Code to clarify the handling of employer accounts in relation to unemployment compensation, particularly regarding transfers of negative balances and the treatment of benefits charged against an employer's account.

  • 4141.24

    except as otherwise provided in division (B) of section 4141.25 of the Revised Code respecting mutualized contributions

    Removes the exception regarding mutualized contributions for clarity.

  • 4141.24(A)(1)

    The director of job and family services shall maintain a separate account for each employer...

    Establishes the need for individual employer accounts managed by the director.

  • 4141.24(A)(2)(a)

    If as of any computation date, a contributory employer's account shows a negative balance in excess of ten per cent of the employer's average annual payroll... → If, as of any computation date, a contributory employer's account shows a negative balance in excess of ten percent of the employer's average annual payroll...

    Slightly modifies the language for clarity but retains the existing provisions on transfers.

  • 4141.24(D)(3)(c)

    to the extent that benefits that have been paid to a claimant and charged to the employer's account are found not to be due the claimant and are recovered by the director as provided in section 4141.35... → to the extent that benefits that have been paid to a claimant and charged to the employer's account are found not to be due to the claimant and are recovered by the director...

    Clarifies the language regarding the recovery of benefits charged to employer accounts.

  • 4141.24(D)(3)(d)(i)

    An employer's account shall not be credited for amounts recovered by the director pursuant to division (D)(3)(c) of this section, and the mutualized account established in division (B) of section 4141.25... → An employer's account shall not be credited for amounts recovered by the director pursuant to division (D)(3)(c) of this section, and the mutualized account established in division (B) of section 4141.25...

    Reaffirms the non-crediting of amounts recovered, emphasizing the conditions under which this applies.

Action History

  1. As Enrolled

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 133 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (133)

133 members have not signed on to this bill.

Show all 133 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passed

Passed 92 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 31000
Republican 61000
Total 92000
% of votes cast 100%0%0%0%
How each member voted (92)
Member Party Vote
Anita Somani Democratic Yea
Beryl Brown Piccolantonio Democratic Yea
Bride Rose Sweeney Democratic Yea
C. Allison Russo Democratic Yea
Cecil Thomas Democratic Yea
Chris Glassburn Democratic Yea
Christine Cockley Democratic Yea
Crystal Lett Democratic Yea
Dani Isaacsohn Democratic Yea
Daniel P. Troy Democratic Yea
Darnell T. Brewer Democratic Yea
Derrick Hall Democratic Yea
Desiree Tims Democratic Yea
Dontavius L. Jarrells Democratic Yea
Elgin Rogers, Jr. Democratic Yea
Eric Synenberg Democratic Yea
Erika White Democratic Yea
Ismail Mohamed Democratic Yea
Juanita O. Brent Democratic Yea
Karen Brownlee Democratic Yea
Latyna M. Humphrey Democratic Yea
Mark Sigrist Democratic Yea
Meredith R. Lawson-Rowe Democratic Yea
Michele Grim Democratic Yea
Munira Abdullahi Democratic Yea
Phillip M. Robinson, Jr. Democratic Yea
Rachel B. Baker Democratic Yea
Sean P. Brennan Democratic Yea
Terrence Upchurch Democratic Yea
Tristan Rader Democratic Yea
Veronica R. Sims Democratic Yea
Adam C. Bird Republican Yea
Adam Holmes Republican Yea
Adam Mathews Republican Yea
Andrea White Republican Yea
Angela N. King Republican Yea
Bernard Willis Republican Yea
Beth Lear Republican Yea
Bill Roemer Republican Yea
Bob Peterson Republican Yea
Brian Lampton Republican Yea
Brian Lorenz Republican Yea
Brian Stewart Republican Yea
Cindy Abrams Republican Yea
D. J. Swearingen Republican Yea
David Thomas Republican Yea
Diane Mullins Republican Yea
Gary Click Republican Yea
Gayle Manning Republican Yea
Haraz N. Ghanbari Republican Yea
Heidi Workman Republican Yea
Jack K. Daniels Republican Yea
James M. Hoops Republican Yea
Jamie Callender Republican Yea
Jason Stephens Republican Yea
Jean Schmidt Republican Yea
Jeff LaRe Republican Yea
Jennifer Gross Republican Yea
Jim Thomas Republican Yea
Jodi Salvo Republican Yea
Johnathan Newman Republican Yea
Josh Williams Republican Yea
Justin Pizzulli Republican Yea
Kellie Deeter Republican Yea
Kevin D. Miller Republican Yea
Kevin Ritter Republican Yea
Levi Dean Republican Yea
Marilyn John Republican Yea
Mark Hiner Republican Yea
Mark Johnson Republican Yea
Matt Huffman Republican Yea
Matthew Kishman Republican Yea
Melanie Miller Republican Yea
Meredith Craig Republican Yea
Mike Odioso Republican Yea
Monica Robb Blasdel Republican Yea
Nick Santucci Republican Yea
Phil Plummer Republican Yea
Riordan T. McClain Republican Yea
Rodney Creech Republican Yea
Ron Ferguson Republican Yea
Roy Klopfenstein Republican Yea
Sarah Fowler Arthur Republican Yea
Scott Oelslager Republican Yea
Steve Demetriou Republican Yea
Tex Fischer Republican Yea
Thaddeus J. Claggett Republican Yea
Thomas Hall Republican Yea
Tim Barhorst Republican Yea
Tom Young Republican Yea
Tracy M. Richardson Republican Yea
Ty D. Mathews Republican Yea

Official roll call →

Subjects

labor
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 263 do?
To amend section 4141.24 of the Revised Code to make changes regarding the treatment of professional employer organizations and alternate employer organizations under the Unemployment Compensation Law.
Who sponsors SB 263?
SB 263 is sponsored by Kristina D. Roegner (Republican).
What is the current status of SB 263?
This bill has been enacted into law. Introduced September 17, 2026. Enacted.
Where can I track SB 263?
Track SB 263 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on SB 263

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of SB 263

Last checked for changes 3 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →