Hawaii PEO Legislation
Hawaii Bill 1062 for PEO and Professional Employer Organizations, State of Hawaii Passes Bill Relating to Professional Employer Organizations.

In May of 2010 the State of Hawaii passed legislation – SB1062 that requires PEOs operating in Hawaii to meet new requirements:

PEOs must provide registration information that includes:

• Name of business, address of all offices, excise tax number.
• Certificate of Authority to transact business issued by the Hawaii director of commerce.
• Names of all the PEOs former operating names an predecessor and successor companies.
• Statement of names of all PEO principals and management.
• Proof of valid Workers’ Compensation insurance coverage
• Proof of disability insurance law compliance in Hawaii
• Proof of compliance with Hawaii prepaid health care act.
• Proof of compliance with Hawaii employment security laws.
• Audit financial statements by a Hawaii licensed CPA.
• Additionally PEOs are required to post a $250,000 security bond and to maintain bond currency and meet other requirements.

The full language of the bill is located here: The full measure is available at Hawaii Professional Employer Organization law. StaffMarket advises all PEOs to become familiar with the new legislation and meet the new requirements for PEOs operating in Hawaii.

Testimony leading to the passage of the bill was provided by J. P. Schmidt, the Hawaii State Insurance Commissioner,

Darwin L.D. Ching, Director Department of Labor Industrial Relations

Tim Tucker, Vice President, Governmental Affairs, National Association of Professional Employer Organizations

Proservice Hawaii HR Administration

Barron Guss, President and CEO, Altres

Jack Schneider, President, JS Services Inc – an employee leasing company testified against the bill. He claimed that increase costs for the new bonding requirements for PEOs will force smaller PEOs out of business and leave the marked to a few large local PEOs.

John Radcliff representing NAPEO

Peter Fritz attorney in Hawaii

Celia Suzuki, Licensing Administrator, Professional Vocational Licensing Division of the Hawaii Department of Commerce and Consumer Affairs  

SHRM Hawaii- Society for Human Resource Management Hawaii Chapter

Read Hawaii PEO Legislation Testimony

http://www.capitol.hawaii.gov/session2010/Testimony/SB1062_SD1_TESTIMONY_FIN_03-29-10_3_.pdf

http://www.capitol.hawaii.gov/session2010/Testimony/SB1062_SD1_TESTIMONY_LAB-EBM_03-09-10_.pdf

http://www.capitol.hawaii.gov/session2010/Testimony/SB1062_TESTIMONY_CPN_02-18-10.pdf

http://www.capitol.hawaii.gov/session2010/Testimony/SB1062_TESTIMONY_CPN_02-25-09.pdf

---