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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2012
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
9. Commitments and Contingencies

Lease commitments

We lease office space for our branch offices under operating lease agreements that require minimum annual payments as follows (in thousands):

 

         

Year ending

December 31,

      

2013

   $ 2,649  

2014

     2,129  

2015

     1,724  

2016

     1,258  

2017

     774  

Thereafter

     0  
   

 

 

  
    $ 8,534  
   

 

 

  

Rent expense for the years ended December 31, 2012, 2011 and 2010 was approximately $2.9 million for each year.

Contingency

During September 2012, California Senate Bill 863 (“SB 863”), designed to reform California’s workers’ compensation system, was signed into law. Section 3701.9 of Section 16 of SB 863 was added to the Labor Code and includes a provision whereby the California Director of Self-Insurance is required not to issue certificates of consent to self-insure after January 1, 2013 to any employer engaged in the activities of a professional employer organization, a leasing employer, a temporary services employer or any employer the Director determines to be in the business of providing employees to other employers. Additionally, a certificate of consent to self-insure that previously had been issued to any employer engaged in these types of activities is required to be revoked by the Director not later than January 1, 2015. If the Company, which has a certificate of consent to self-insure in place, is not able to secure alternatives to address the impact of SB 863 on the Company’s ability to continue its self-insurance program in California, our results of operations may be adversely affected.