The civic record
Read. Follow. Verify.North Carolina Updates Professional Employer Organization Licensing and Financial Requirements
Last action · May 1, 2025: Ref To Com On Rules and Operations of the Senate (Senate action)Sponsors: Chris Humphrey and 2 others
Track this bill to get notified when it advances a stage. One tap to stop, anytime.
What This Bill Would Do
North Carolina updates licensing, financial reporting, background check, and surety bond rules for professional employer organizations and groups. The measure requires applicants to submit audited GAAP financial statements prepared within 120 days rather than 90 days, maintain a of at least $50,000, and provide fingerprints for criminal history record checks.
Professional employer organizations operating in North Carolina must meet revised financial transparency thresholds, surety bond calculations, and background investigation standards set by the Department of Insurance.
- Professional employer organizations (PEOs) enter into co-employment relationships with client businesses to handle human resources, payroll, and worker benefits. context
- The North Carolina Department of Insurance regulates professional employer organizations to ensure adequate financial solvency and consumer protection. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Professional employer organizations
PEOs must comply with updated financial reporting timelines, tangible net worth minimums, surety bond calculations, and background check submissions for licensure.
Department of Insurance
The Department administers license applications, reviews audited financial statements, processes background checks, and enforces regulatory compliance.
Assigned employees
Employees assigned by PEOs are affected by financial solvency protections and assurances regarding payroll, taxes, workers' compensation, and employee benefits.
Key Facts
- Applicants for a PEO license must submit an audited GAAP financial statement prepared as of a date not more than 120 days before application, expanded from the previous 90-day limit.
- PEO applicants must maintain a tangible net worth of not less than $50,000 and positive working capital.
- An applicant whose current assets do not exceed current liabilities must file an additional surety bond equal to the applicant's negative working capital.
- Every applicant must furnish a complete set of fingerprints for each officer, director, and controlling person to conduct state and national criminal history checks.
Show all 8 facts
- The Commissioner may accept the audited financial statement of an applicant's parent company if the parent executes a guaranty agreement for obligations including payroll, taxes, workers' compensation, and benefits.
- New or renewing licensees must file annual financial reports within 120 days after the end of each fiscal year along with an attestation regarding payroll and benefit obligations.
- De minimis registration is available for out-of-state PEOs that do not maintain a physical office in North Carolina and employ no more than 50 assigned employees in the state.
- The Commissioner may deny a license if an officer, director, or controlling person has been convicted of a felony, committed fraud, or violated professional employer laws.
Frequently Asked Questions
How do background checks work for PEO officers and directors?
When does an out-of-state PEO qualify for de minimis registration?
What else do you want to know?
News Coverage
Follow the record
Votes, people, money & the original sourceWhere This Stands
Currently passed chamber. The next step in the legislative lifecycle is Law.
Procedural history
18 actions- May 1, 2025SenateRef To Com On Rules and Operations of the Senate
- May 1, 2025SenatePassed 1st Reading
- May 1, 2025SenateRegular Message Received From House
- May 1, 2025HouseRegular Message Sent To Senate
- Apr 30, 2025HouseOrdered Engrossed
- Apr 30, 2025HousePassed 3rd Reading
Show 12 earlier actions
- Apr 30, 2025HousePassed 2nd Reading
- Apr 30, 2025HouseAmend Adopted A1
- Apr 29, 2025HousePlaced On Cal For 04/30/2025
- Apr 29, 2025HouseCal Pursuant Rule 36(b)
- Apr 29, 2025HouseReptd Fav
- Apr 17, 2025HouseRe-ref Com On Rules, Calendar, and Operations of the House
- Apr 17, 2025HouseWithdrawn From Com
- Apr 17, 2025HouseRe-ref Com On Finance
- Apr 17, 2025HouseReptd Fav Com Substitute
- Apr 3, 2025HouseRef to the Com on Insurance, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House
- Apr 3, 2025HousePassed 1st Reading
- Apr 2, 2025HouseIntroducedFiled
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Extension of Financial Statement Window
The bill extends the allowable age of audited GAAP financial statements submitted with license applications from 90 to 120 days.
Connected Entities
Sources
www.ncleg.gov
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy15Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz15Current news / social attention level
Publisher tools