In May 2005, the Arizona legislature passed legislation mandating the registration of all Professional Employer Organization’s (PEO) doing business in the state. ARS §23-561 et.seq. addresses the various duties and responsibilities of a PEO regarding registration and business practices.

Arizona statutory law specifically cites that registration procedures shall be based on administrative rules that are to be implemented by the Secretary of State’s office. Arizona law also prescribes that these rules be reviewed and approved by the Attorney General’s Office before becoming effective. The Attorney General approved the PEO administrative rules on November 30, 2007 and according to Arizona law the rules are effective on January 29, 2008.  However, PEO forms dependent on the approval of administrative rules are presently under review to ensure legal compliance, as well as conforming with the database that is being created for PEO registration. In the meanwhile, should you have any further questions please contact a Secretary of State representative at 602-542-6187.