Michigan Delays PEO Licensing Requirement

Michigan Delays PEO Licensing Requirements

New Requirements for Professional Employer Organizations scheduled to be effective in 2012

Legislation has been enacted in Michigan that delays the implementation of the PEO licensing
requirement until September 1, 2012. Given the December 2010 enactment of the initial PEO law, the
December 31, 2011, licensing deadline, and the reconfiguration of the key regulatory agency, it was
determined that delaying the licensing requirement would give the state and NAPEO time necessary to
ensure effective implementation. The licensing requirement was contained in Senate Bill 1037 of 2010
(Public Act 370), which provides increased operational certainty for PEOs operating in Michigan. The
new PEO statutory provisions include significant portions of the NAPEO model act. It provides a statutory framework for reasonable regulatory standards by clarifying the PEO relationship and
protecting PEOs from undue liabilities. It is anticipated to become effective on September 1, 2012.
Michigan House Bill 4584 related to Professional Employer Organizations

Michigan PEO Regulatory Act 370