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H.B. 159
1
PROFESSIONAL EMPLOYER ORGANIZATION
2
LICENSING ACT
3
2008 GENERAL SESSION
4
STATE OF UTAH
5
Chief Sponsor: James A. Dunnigan
6
Senate Sponsor:
Wayne L. Niederhauser
7
8
LONG TITLE
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General Description:
10
This bill modifies provisions related to the Insurance Code and Occupations and
11
Professions to change the regulation of professional employer organizations from
12
registration under the Division of Occupations and Professional Licensing to licensure
13
under the Insurance Department.
14
Highlighted Provisions:
15
This bill:
16
. repeals the Professional Employer Organization Registration Act;
17
. enacts the Professional Employer Organization Licensing Act, including:
18
. defining terms;
19
. addressing the duties of the Insurance Department, including rulemaking;
20
. providing for confidentiality of certain information;
21
. outlining enforceable rights and obligations in a coemployment relationship;
22
. discussing covered employees;
23
. outlining rights and obligations affected or unaffected by the act;
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. establishing financial requirements;
25
. addressing issues such as insurance, taxation, benefit plans, workers'
26
compensation, unemployment compensation insurance, and employment related
27
economic incentives;
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. imposing licensing requirements and procedures, including grandfathering; and
29
. providing for enforcement; and
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. makes technical and conforming amendments.
31
Monies Appropriated in this Bill:
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None
33
Other Special Clauses:
34
None
35
Utah Code Sections Affected:
36
AMENDS:
37
34A-2-103, as last amended by Laws of Utah 2006, Chapter 295
38
34A-2-105, as last amended by Laws of Utah 2005, Chapter 71
39
35A-4-202, as last amended by Laws of Utah 2006, Chapter 22
40
49-12-102, as last amended by Laws of Utah 2006, Chapter 260
41
49-13-102, as last amended by Laws of Utah 2006, Chapter 260
42
ENACTS:
43
31A-40-101, Utah Code Annotated 1953
44
31A-40-102, Utah Code Annotated 1953
45
31A-40-103, Utah Code Annotated 1953
46
31A-40-104, Utah Code Annotated 1953
47
31A-40-201, Utah Code Annotated 1953
48
31A-40-202, Utah Code Annotated 1953
49
31A-40-203, Utah Code Annotated 1953
50
31A-40-204, Utah Code Annotated 1953
51
31A-40-205, Utah Code Annotated 1953
52
31A-40-206, Utah Code Annotated 1953
53
31A-40-207, Utah Code Annotated 1953
54
31A-40-208, Utah Code Annotated 1953
55
31A-40-209, Utah Code Annotated 1953
56
31A-40-210, Utah Code Annotated 1953
57
31A-40-211, Utah Code Annotated 1953
58
31A-40-301, Utah Code Annotated 1953
59
31A-40-302, Utah Code Annotated 1953
60
31A-40-303, Utah Code Annotated 1953
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31A-40-304, Utah Code Annotated 1953
62
31A-40-305, Utah Code Annotated 1953
63
31A-40-306, Utah Code Annotated 1953
64
31A-40-401, Utah Code Annotated 1953
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31A-40-402, Utah Code Annotated 1953
66
REPEALS:
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58-59-101, as last amended by Laws of Utah 2003, Chapter 260
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58-59-102, as last amended by Laws of Utah 2007, Chapter 134
69
58-59-301, as last amended by Laws of Utah 2003, Chapter 260
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58-59-302, as last amended by Laws of Utah 2007, Chapter 134
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58-59-302.5, as enacted by Laws of Utah 2007, Chapter 134
72
58-59-303, as last amended by Laws of Utah 2003, Chapter 260
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58-59-303.5, as last amended by Laws of Utah 2007, Chapter 134
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58-59-306, as last amended by Laws of Utah 2007, Chapter 134
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58-59-306.5, as enacted by Laws of Utah 2007, Chapter 134
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58-59-308, as last amended by Laws of Utah 2005, Chapter 102
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58-59-501, as last amended by Laws of Utah 2003, Chapters 131 and 260
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58-59-503, as last amended by Laws of Utah 2003, Chapter 260
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
31A-40-101
is enacted to read:
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CHAPTER 40. PROFESSIONAL EMPLOYER ORGANIZATION LICENSING ACT
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Part 1. General Provisions
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31A-40-101. Title.
85
This chapter is known as the "Professional Employer Organization Licensing Act."
86
Section 2.
Section
31A-40-102
is enacted to read:
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31A-40-102. Definitions.
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As used in this chapter:
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(1) (a) Except as provided in Subsection (1)(b), "administrative fee" means a fee
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charged to a client by a professional employer organization for a professional employer service.
91
(b) "Administrative fee" does not include an amount or a fee received by a professional
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employer organization that is:
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(i) compensation of a covered employee;
94
(ii) a benefit for a covered employee;
95
(iii) a payroll-related tax;
96
(iv) an unemployment insurance contribution;
97
(v) withholding of compensation for a covered employee;
98
(vi) a workers' compensation premium; or
99
(vii) another assessment paid by a professional employer organization to or on behalf
100
of a covered employee under a professional employer agreement.
101
(2) "Assurance organization" means a person designated as an assurance organization
102
in accordance with Section
31A-40-303
.
103
(3) "Client" means a person who enters into a professional employer agreement with a
104
professional employer organization.
105
(4) "Coemployer" means:
106
(a) a client; or
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(b) a professional employer organization.
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(5) "Coemployment relationship" means a relationship:
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(a) that is intended to be ongoing rather than a temporary or project specific
110
relationship; and
111
(b) wherein the rights and obligations of an employer that arise out of an employment
112
relationship are allocated between coemployers pursuant to:
113
(i) a professional employer agreement; or
114
(ii) this chapter.
115
(6) Notwithstanding Section
31A-1-301
, "controlling person" means a person who,
116
individually or acting in concert with one or more persons, owns, directly or indirectly, 10% or
117
more of the equity interest in a professional employer organization.
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(7) "Covered employee" means an individual who has a coemployment relationship
119
with a client and a professional employer organization if the conditions of Section
31A-40-203
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are met.
121
(8) (a) "Employment related economic incentive" means:
122
(i) (A) a credit against or exemption from taxes due the state or a political subdivision
123
of the state; or
124
(B) an economic inducement, including a loan or a grant; and
125
(ii) if the credit, exemption, or economic inducement described in Subsection (8)(a)(i):
126
(A) is offered by the state or a political subdivision of the state; and
127
(B) has an eligibility requirement that relates in whole or in part to employment
128
including:
129
(I) the number of employees; or
130
(II) the nature of the employment.
131
(9) "Guarantee" means to assume an obligation of another person if that person fails to
132
meet the obligation.
133
(10) "Licensee" means a person licensed under this chapter.
134
(11) "Professional employer agreement" means a written contract by and between a
135
client and a professional employer organization that provides for:
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(a) the coemployment of a covered employee;
137
(b) with respect to a covered employee, the allocation of a right or obligation of an
138
employer between:
139
(i) the client; and
140
(ii) the professional employer organization; and
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(c) the assumption of the obligations imposed by this chapter by:
142
(i) the client; or
143
(ii) the professional employer organization.
144
(12) (a) Subject to Subsection (12)(b), "professional employer organization" means a
145
person engaged in the business of providing a professional employer service.
146
(b) "Professional employer organization" does not include:
147
(i) a person that:
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(A) does not:
149
(I) have as a principal business activity the entering into of a professional employer
150
arrangement; or
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(II) hold the person out as a professional employer organization; and
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(B) shares an employee with a commonly owned company within the meaning of
153
Internal Revenue Code, Sections 414(b) and (c);
154
(ii) an independent contractor arrangement by which a person:
155
(A) assumes responsibility for the product produced or service performed by the person
156
or the person's agent; and
157
(B) retains and exercises primary direction and control over the work performed by an
158
individual whose service is supplied under the independent contractor arrangement; or
159
(iii) a person providing temporary help service.
160
(13) "Professional employer organization group" means two or more professional
161
employer organizations that are majority owned or commonly controlled or directed by the
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same one or more persons.
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(14) "Professional employer service" means the service of entering into a
164
coemployment relationship under this chapter under which all or a majority of the employees
165
who provide a service to a client, or a division or work unit of a client, are covered employees.
166
(15) "Qualified actuary" means an individual who:
167
(a) is a member in good standing of a professional actuarial accreditation organization
168
designated by the department by rule;
169
(b) is qualified to sign a statement of actuarial opinion or annual statement for a
170
professional employer organization in accordance with the qualification standards for an
171
actuary signing an opinion or annual statement as provided by the professional actuarial
172
accreditation organization designated under Subsection (15)(a);
173
(c) is familiar with the valuation requirements applicable to a professional employer
174
organization;
175
(d) has not been found by the commissioner, or if so found has subsequently been
176
reinstated as a qualified actuary, following appropriate notice and hearing to have:
177
(i) violated a provision of, or an obligation imposed by, statute or other law in the
178
course of the actuary's dealings as a qualified actuary;
179
(ii) been found guilty of a fraudulent or dishonest practice;
180
(iii) demonstrated the actuary's incompetency, lack of cooperation, or
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untrustworthiness to act as a qualified actuary;
182
(iv) submitted to the commissioner during the past five years, pursuant to this rule, an
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actuarial opinion or memorandum that the commissioner rejected because it did not meet the
184
provisions of rule; or
185
(v) resigned or been removed as an actuary within the past five years as a result of an
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act or omission indicated in an adverse report on examination or as a result of failure to adhere
187
to a generally acceptable actuarial standard; and
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(e) has not failed to notify the commissioner of an action taken by any commissioner of
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another state similar to that under Subsection (15)(d).
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(16) "Temporary help service" means a service consisting of a person:
191
(a) recruiting and hiring the person's own employee;
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(b) finding another person that wants the services of that employee;
193
(c) assigning the employee to:
194
(i) perform services at or for the other person to support or supplement the other
195
person's employees;
196
(ii) provide assistance in a special work situation such as:
197
(A) an employee absence;
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(B) a skill shortage; or
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(C) a seasonal workload; or
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(iii) perform a special assignment or project; and
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(d) customarily reassigning the employee to another organization when the employee
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finishes an assignment.
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(17) "Working capital" means the current assets minus the current liabilities of a
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professional employer organization determined in accordance with generally accepted
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accounting principles.
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Section 3.
Section
31A-40-103
is enacted to read:
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31A-40-103. Duties of the commissioner.
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(1) (a) The commissioner shall maintain a list of professional employer organizations
209
that are licensed under this chapter.
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(b) The commissioner shall make the list required by this Subsection (1) available to
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the public by electronic or other means.
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(2) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
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commissioner:
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(a) shall make rules to prescribe the requirements for forms required under this chapter;
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and
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(b) may make rules to prescribe the requirements for the review and submission of a
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financial statement under Section
31A-40-305
:
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(i) that are consistent with generally accepted accounting principles; and
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(ii) including the timeliness of a financial statement.
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(3) A rule in effect on May 5, 2008 under the repealed Title 58, Chapter 59,
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Professional Employer Organization Registration Act, shall be:
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(a) renumbered as a rule made under this chapter; and
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(b) remain in effect until such time as the commissioner modifies or repeals the rule.
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(4) The commissioner shall report to the Business and Labor Committee by no later
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than the November 2009 interim meeting as to whether the commissioner recommends that the
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working capital requirements of Section
31A-40-205
be modified.
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Section 4.
Section
31A-40-104
is enacted to read:
228
31A-40-104. Confidentiality -- Cooperation with other agencies.
229
(1) Notwithstanding Title 63, Chapter 2, Government Records Access and
230
Management Act, and except as provided in Subsection (2), (3), or (4), the commissioner or
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department may not disclose information obtained from a professional employer organization
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under this chapter.
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(2) The commissioner or department may disclose information on an aggregate basis
234
that does not identify an individual professional employer organization or client.
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(3) The commissioner or department may disclose information obtained from a
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professional employer organization under this chapter to a government entity if the government
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entity requires the information to perform the government entity's duties.
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(4) (a) The commissioner shall coordinate the commissioner's administration of this
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chapter and share information with:
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(i) the Department of Workforce Services;
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(ii) the Labor Commission; and
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(iii) the State Tax Commission.
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(b) An agency listed in Subsection (4)(a) shall treat the information obtained under this
244
section as confidential unless disclosure of the information is required in accordance with:
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(i) this title; or
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(ii) Title 63, Chapter 2, Government Records Access and Management Act.
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Section 5.
Section
31A-40-201
is enacted to read:
248
Part 2. Coemployment Relationship and Professional Employer Services
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31A-40-201. Enforceable rights and obligations.
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(1) In a coemployment relationship under a professional employer agreement:
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(a) a professional employer organization:
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(i) may only enforce a right of an employer that is specifically allocated to the
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professional employer organization under the professional employer agreement or this chapter;
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and
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(ii) is subject only to an obligation of an employer specifically allocated to the
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professional employer organization by the professional employer agreement or this chapter;
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and
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(b) a client:
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(i) may enforce a right of an employer:
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(A) allocated to the client in the professional employer agreement or this chapter; or
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(B) not specifically allocated to the professional employer organization under the
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professional employer agreement or this chapter; and
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(ii) is subject to an obligation of an employer:
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(A) allocated to the client by the professional employer agreement or this chapter; or
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(B) not specifically allocated to a professional employer organization by the
266
professional employer agreement or this chapter.
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(2) A right or obligation of a professional employer organization as a coemployer of a
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covered employee is limited to a right or obligation arising pursuant to the professional
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employer agreement and this chapter during the term of coemployment of the covered
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employee by the professional employer organization.
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Section 6.
Section
31A-40-202
is enacted to read:
272
31A-40-202. Professional employer agreement -- Specific responsibilities.
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(1) Except as specifically provided in this chapter, a coemployment relationship
274
between a client and a professional employer organization, and between each coemployer and a
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covered employee, is governed by a professional employer agreement.
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(2) (a) As used in this Subsection (2), unless a professional employer organization
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expressly agrees to assume liability for the payment in a professional employer agreement, the
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term "compensation to a covered employee" does not include an obligation between a client
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and a covered employee for a payment beyond or in addition to the covered employee's salary,
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draw, or regular rate of pay, such as:
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(i) a bonus;
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(ii) a commission;
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(iii) severance pay;
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(iv) deferred compensation;
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(v) profit sharing; or
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(vi) pay for vacation, sick, or other paid time off.
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(b) A professional employer agreement shall include the following:
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(i) the allocation of a right or obligation consistent with Section
31A-40-201
;
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(ii) a requirement that the professional employer organization shall:
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(A) pay compensation to a covered employee; and
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(B) withhold, collect, report, and remit one or more of the following:
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(I) a payroll-related tax; and
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(II) an unemployment insurance contribution; and
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(C) to the extent that the professional employer organization assumes responsibility in
295
the professional employer agreement, make payments for an employee benefit of a covered
296
employee;
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(iii) that the professional employer organization has a right to hire, discipline, or
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terminate a covered employee to the extent necessary to fulfill the professional employer
299
organization's obligations under the professional employer agreement and this chapter;
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(iv) that the client has a right to hire, discipline, and terminate a covered employee; and
301
(v) the responsibility of the client or professional employer organization related to
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obtaining workers' compensation coverage for a covered employee in a manner consistent with
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Section
31A-40-209
.
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(3) A professional employer organization shall provide written notice to a covered
305
employee of the general nature of the coemployment relationship between and among the
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professional employer organization, the client, and the covered employee.
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(4) (a) Except to the extent otherwise expressly provided by the professional employer
308
agreement:
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(i) a client is solely responsible for the quality, adequacy, or safety of a good or service
310
produced or sold in the client's business;
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(ii) a client is solely responsible for directing, supervising, training, and controlling the
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work of a covered employee with respect to:
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(A) a business activity of the client;
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(B) the discharge of a fiduciary responsibility of the client; or
315
(C) compliance with a licensure, registration, or certification requirement applicable to
316
the client or to the covered employee;
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(iii) a client is solely responsible for an act, error, or omission of a covered employee
318
with regard to a circumstance described in Subsection (4)(a)(ii);
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(iv) a client is not liable for an act, error, or omission of:
320
(A) a professional employer organization; or
321
(B) a covered employee, if the covered employee is acting under the express direction
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and control of the professional employer organization; and
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(v) a professional employer organization is not liable for an act, error, or omission of:
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(A) a client; or
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(B) a covered employee, if the covered employee is acting under the express direction
326
and control of the client.
327
(b) This Subsection (4) may not be interpreted to limit a contractual liability or
328
obligation specifically provided in a professional employer agreement.
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(c) (i) Unless the conditions of Subsection (4)(c)(ii) are met, a covered employee is not,
330
solely as the result of being a covered employee of a professional employer organization, an
331
employee of the professional employer organization for purposes of one or more of the
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following carried by the professional employer organization:
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(A) general liability insurance;
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(B) a fidelity bond;
335
(C) a surety bond;
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(D) an employer liability that is not covered by workers' compensation; or
337
(E) liquor liability insurance.
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(ii) A covered employee is considered an employee of the professional employer
339
organization for a purpose described in Subsection (4)(c)(i) if the covered employee is included
340
by specific reference for that purpose in:
341
(A) the professional employer agreement; and
342
(B) a prearranged employment contract, insurance contract, or bond.
343
Section 7.
Section
31A-40-203
is enacted to read:
344
31A-40-203. Covered employee.
345
(1) (a) An individual is a covered employee of a professional employer organization if
346
the individual is coemployed pursuant to a professional employer agreement subject to this
347
chapter.
348
(b) An individual who is a covered employee under a professional employer agreement
349
is a covered employer, whether or not the professional employer organization provides the
350
notice required by Subsection
31A-40-202
(3), the earlier of the day on which:
351
(i) the employee is first compensated by the professional employer organization; or
352
(ii) the client notifies the professional employer organization of a new hire.
353
(2) An individual who is an officer, director, shareholder, partner, or manager of a
354
client is a covered employee:
355
(a) to the extent that the client and the professional employer organization expressly
356
agree in the professional employer agreement that the individual is a covered employee;
357
(b) if the conditions of Subsection (1) are met; and
358
(c) if the individual acts as an operational manager or performs day-to-day an
359
operational service for the client.
360
Section 8.
Section
31A-40-204
is enacted to read:
361
31A-40-204. Rights and obligations unaffected -- Licensed, registered, or certified
362
occupations or professions.
363
(1) This chapter does not and a professional employer agreement may not affect,
364
modify, or amend a:
365
(a) collective bargaining agreement; or
366
(b) right or obligation of a client, professional employer organization, or covered
367
employee under:
368
(i) the federal National Labor Relations Act, 29 U.S.C. Sec. 151 et seq.;
369
(ii) the federal Railway Labor Act, 45 U.S.C. Sec. 151 et seq.; or
370
(iii) a state law similar to a federal law described in this Subsection (1)(b).
371
(2) (a) A professional employer agreement may not:
372
(i) diminish, abolish, or remove a right of a covered employee to a client or an
373
obligation of the client to a covered employee that exists on or before the day on which the
374
professional employer agreement takes effect;
375
(ii) affect, modify, or amend a contractual relationship or restrictive covenant between
376
a covered employee and a client in effect on the day on which the professional employer
377
agreement takes effect; or
378
(iii) prohibit or amend a contractual relationship or restrictive covenant that is entered
379
into between a covered employee and a client after the day on which the professional employer
380
agreement takes effect.
381
(b) A professional employer organization is not responsible or liable in connection
382
with, or arising out of, a contractual relationship or restrictive covenant described in Subsection
383
(2)(a) unless the professional employer organization specifically agrees to be responsible in
384
writing.
385
(3) This chapter does not and a professional employer agreement may not create an
386
enforceable right of a covered employee against a professional employer organization that is
387
not specifically provided by the professional employer agreement or this chapter.
388
(4) (a) Except as provided in this Subsection (4), this chapter does not and a
389
professional employer agreement may not affect, modify, or amend a state, local, or federal
390
license, registration, or certification requirement applicable to a client or a covered employee.
391
(b) If a covered employee is required by federal or state law to be licensed, registered,
392
or certified, the covered employee is considered to be solely an employee of the client for
393
purposes of the license, registration, or certification requirement.
394
(c) A professional employer organization is not considered to engage in an activity that
395
is subject to licensing, registration, or certification by a local, state, or federal government or is
396
regulated by a local, state, or federal government solely by entering into or maintaining a
397
coemployment relationship with a covered employee who is:
398
(i) subject to licensing, registration, or certification; or
399
(ii) regulated by the local, state, or federal government.
400
(d) A client has the sole right to direct or control a professional, licensed, registered, or
401
certified activity of:
402
(i) a covered employee; and
403
(ii) the client's business.
404
(e) Notwithstanding this chapter, a covered employee and client remain subject to
405
regulation by the local, state, or federal government responsible for licensing, registration, or
406
certification of the covered employee or client.
407
Section 9.
Section
31A-40-205
is enacted to read:
408
31A-40-205. Financial capability.
409
(1) Except as provided in Subsection (2) or (4), as of the day a person applies for
410
licensure or renewal of a license and at all times while licensed, a professional employer
411
organization or collectively a professional employer organization group shall:
412
(a) have at least $100,000 in working capital as determined by generally accepted
413
accounting principles; or
414
(b) provide to the commissioner one of the following in an amount equal to or greater
415
than an amount calculated by subtracting the amount of working capital of the professional
416
employer organization or professional employer organization group from $100,000:
417
(i) a bond;
418
(ii) an irrevocable letter of credit;
419
(iii) one or more credits or securities as determined by the market value of the credits
420
or securities; or
421
(iv) a combination of Subsections (1)(b)(i) through (iii).
422
(2) (a) Except as provided in Subsection (2)(c), the license of a professional employer
423
organization or professional employer organization group terminates 180 days from the day on
424
which the commissioner finds that the professional employer organization has less than
425
$100,000 in working capital, unless the professional employer organization or professional
426
employer organization group eliminates the deficiency within 180 days of the day on which the
427
commissioner makes the finding.
428
(b) During the 180-day period described in Subsection (2)(a), the professional
429
employer organization or professional employer organization group shall submit quarterly to
430
the commissioner:
431
(i) a quarterly financial statement; and
432
(ii) an attestation that:
433
(A) is signed by:
434
(I) the chief executive officer or a controlling person of the professional employer
435
organization; or
436
(II) for a professional employer organization group, the chief executive officer or chief
437
financial officer of each member of the professional employer organization group; and
438
(B) states that all of the following are paid for a covered employee when due by the
439
professional employer organization or each member of the professional employer organization
440
group:
441
(I) compensation;
442
(II) a benefit;
443
(III) a payroll-related tax;
444
(IV) an unemployment insurance contribution;
445
(V) withholding of compensation for a covered employee;
446
(VI) workers' compensation premium; or
447
(VII) another assessment paid by a professional employer organization to or on behalf
448
of a covered employee under a professional employer agreement.
449
(c) The license of a professional employer organization or professional employer
450
organization group terminates on the day on which the commissioner finds that the professional
451
employer organization:
452
(i) has negative working capital; and
453
(ii) (A) is incapable of continued operations; or
454
(B) poses an immediate threat to the public welfare.
455
(3) A bond, letter of credit, or security described in Subsection (1) shall:
456
(a) be held as designated by the commissioner; and
457
(b) secure payment by the professional employer organization or the professional
458
employer organization group of the following payments or other entitlements due to or with
459
respect to a covered employee, if the professional employer organization or each member of the
460
professional employer organization group does not make a payment when due:
461
(i) compensation of a covered employee;
462
(ii) a benefit for a covered employee;
463
(iii) payroll-related taxes;
464
(iv) unemployment insurance contributions; and
465
(v) workers' compensation premiums.
466
(4) A professional employer organization is exempt from this section if the
467
professional employer organization is licensed:
468
(a) through an assurance organization in accordance with Section
31A-40-303
; or
469
(b) under this chapter with a small operation license in accordance with Section
470
31A-40-304
.
471
Section 10.
Section
31A-40-206
is enacted to read:
472
31A-40-206. Professional employer service not insurance.
473
(1) A professional employer organization licensed under this chapter is not considered
474
engaged in the sale of insurance or as acting as a third party administrator when the
475
professional employer organization engages in one or more of the following with respect to a
476
professional employer service:
477
(a) offering;
478
(b) marketing;
479
(c) selling;
480
(d) administering; or
481
(e) providing.
482
(2) Subsection (1) applies to a professional employer service that includes an employee
483
benefit plan for a covered employee.
484
Section 11.
Section
31A-40-207
is enacted to read:
485
31A-40-207. Taxation.
486
(1) (a) A covered employee whose service is subject to a sales or use tax under Title
487
59, Chapter 12, Sales and Use Tax Act, is considered the employee of the client for purposes of
488
imposing and collecting the sales or use tax on the service performed by the covered employee.
489
(b) This chapter may not be interpreted to relieve a client of a sales or use tax liability
490
with respect to a good or service of the client.
491
(2) (a) If the amount of a tax or fee described in Subsection (2)(b) is determined on the
492
basis of the gross receipts of a professional employer organization, only an administrative fee
493
collected by the professional employer organization is considered gross receipts.
494
(b) This Subsection (2) applies to:
495
(i) a tax on a professional employer service;
496
(ii) a business license fee; or
497
(iii) another fee or charge.
498
(3) A taxing entity shall assess a tax assessed on a per capita or per employee basis:
499
(a) on a client for a covered employee; and
500
(b) on the professional employer organization for an employee of the professional
501
employer organization who is not a covered employee coemployed with a client.
502
(4) If a tax is imposed or calculated on the basis of total payroll, the professional
503
employer organization is eligible to apply a small business allowance or exemption available to
504
the client for a covered employee for the purpose of computing the tax.
505
Section 12.
Section
31A-40-208
is enacted to read:
506
31A-40-208. Benefit plan.
507
(1) A client and a professional employer organization licensed under this chapter shall
508
each be considered an employer for purposes of sponsoring a retirement or welfare benefit plan
509
for a covered employee.
510
(2) A fully insured welfare benefit plan offered to a covered employee of a single
511
professional employer organization licensed under this chapter:
512
(a) is to be treated as a single employer welfare benefit plan for purposes of this title
513
and rules made under this title;
514
(b) may not be considered an employer welfare fund or plan, as described in Section
515
31A-13-101
; and
516
(c) the single professional employer organization that sponsors the fully insured
517
welfare plan is exempt from the registration requirements under this title for:
518
(i) an insurance provider; or
519
(ii) an employer welfare fund or plan.
520
(3) For purposes of Chapter 30, Individual, Small Employer, and Group Health
521
Insurance Act:
522
(a) a professional employer organization licensed under this chapter is considered the
523
employer of a covered employee; and
524
(b) all covered employees of one or more clients participating in a health benefit plan
525
sponsored by a single professional employer organization licensed under this chapter are
526
considered employees of that professional employer organization.
527
(4) A professional employer organization licensed under this chapter may offer to a
528
covered employee a health benefit plan that is not fully insured by an authorized insurer, only
529
if:
530
(a) the professional employer organization has operated as a professional employer
531
organization for at least one year before the day on which the professional employer
532
organization offers the health benefit plan; and
533
(b) the health benefit plan:
534
(i) is administered by a third-party administrator licensed to do business in this state;
535
(ii) holds all assets of the health benefit plan, including participant contributions, in a
536
trust account;
537
(iii) has and maintains reserves that are sound for the health benefit plan as determined
538
by an actuary who:
539
(A) uses generally accepted actuarial standards of practice; and
540
(B) is an independent qualified actuary, including not being an employee or covered
541
employee of the professional employer organization;
542
(iv) provides written notice to a covered employee participating in the health benefit
543
plan that the health benefit plan is self-insured or is not fully insured; and
544
(v) consents to an audit:
545
(A) on a random basis; or
546
(B) upon a finding of a reasonable need by the commissioner.
547
(5) The cost of an audit described in Subsection (4)(b)(v) shall be paid by the
548
sponsoring professional employer organization.
549
(6) A plan of a professional employer organization described in Subsection (4) that is
550
not fully insured:
551
(a) is subject to the requirements of this section; and
552
(b) is not subject to another licensure or approval requirement of this title.
553
Section 13.
Section
31A-40-209
is enacted to read:
554
31A-40-209. Workers' compensation.
555
(1) In accordance with Section
34A-2-103
, a client is responsible for securing workers'
556
compensation coverage for a covered employee.
557
(2) Subject to the requirements of Section
34A-2-103
, if a professional employer
558
organization obtains or assists a client in obtaining workers' compensation insurance pursuant
559
to a professional employer agreement:
560
(a) the professional employer organization shall ensure that the client maintains and
561
provides workers' compensation coverage for a covered employee in accordance with
562
Subsection
34A-2-201
(1) or (2) and rules of the Labor Commission, made in accordance with
563
Title 63, Chapter 46a, Utah Administrative Rulemaking Act;
564
(b) the workers' compensation coverage may show the professional employer
565
organization as the named insured through a multiple coordinated policy, if:
566
(i) the client is shown as an insured by means of an endorsement for each individual
567
client;
568
(ii) the experience modification of a client is used; and
569
(iii) the insurer files the endorsement with the Division of Industrial Accidents as
570
directed by a rule of the Labor Commission, made in accordance with Title 63, Chapter 46a,
571
Utah Administrative Rulemaking Act;
572
(c) at the termination of the professional employer agreement, if requested by the
573
client, the insurer shall provide the client records regarding the loss experience related to
574
workers' compensation insurance provided to a covered employee pursuant to the professional
575
employer agreement; and
576
(d) the insurer shall notify a client if the workers' compensation coverage for the client
577
is terminated.
578
(3) In accordance with Section
34A-2-105
, the exclusive remedy provisions of Section
579
34A-2-105
apply to both the client and the professional employer organization under a
580
professional employer agreement regulated under this chapter.
581
(4) Notwithstanding the other provisions in this section, an insurer may choose whether
582
to issue:
583
(a) a policy for a client; or
584
(b) a multiple coordinated policy with the client shown as an additional insured by
585
means of an individual endorsement.
586
Section 14.
Section
31A-40-210
is enacted to read:
587
31A-40-210. Unemployment compensation insurance.
588
(1) For purposes of Title 35A, Chapter 4, Employment Security Act, a covered
589
employee of a professional employer organization licensed under this chapter is considered the
590
employee of the professional employer organization.
591
(2) The professional employer organization described in Subsection (1) shall pay a
592
contribution, penalty, or interest required under Title 35A, Chapter 4, Employment Security
593
Act, on wages, as defined in Section
35A-4-208
, paid by the professional employer
594
organization to the covered employee during the term of the professional employer agreement.
595
(3) A professional employer organization shall report and pay a required contribution
596
to the unemployment compensation fund when due using the state employer account number
597
and the contribution rate of the professional employer organization.
598
(4) Unless a client is otherwise eligible for an experience rating, the Unemployment
599
Insurance Division of the Department of Workforce Services shall treat a client as a new
600
employer without a previous experience record beginning on the day on which:
601
(a) a professional employer agreement between the client and a professional employer
602
organization terminates; or
603
(b) the professional employer organization fails to submit a report or make a tax
604
payment when due as required by this chapter.
605
Section 15.
Section
31A-40-211
is enacted to read:
606
31A-40-211. Employment related economic incentives -- Employment information
607
-- Client's status.
608
(1) Notwithstanding the other provisions of this chapter, for purposes of determining
609
eligibility for an employment related economic incentive, a covered employee is considered
610
only an employee of the client.
611
(2) (a) If eligibility for an employment related economic incentive relates to a covered
612
employee, the client is entitled to the employment related economic incentive if the client is
613
otherwise eligible for the employment related economic incentive.
614
(b) A professional employer organization is not eligible for an employment related
615
economic incentive described in Subsection (2)(a).
616
(3) If eligibility for or the amount of an employment related economic incentive is
617
determined on the basis of the number of employees, a client is treated as employing only:
618
(a) a covered employee coemployed by the client under the professional employer
619
agreement; or
620
(b) an employee solely employed by the client.
621
(4) Subject to a confidentiality provision in federal or state law, a professional
622
employer organization shall provide employment information:
623
(a) upon the request of:
624
(i) the client; or
625
(ii) the governmental entity administering an employment related economic incentive;
626
and
627
(b) reasonably required for:
628
(i) administration of an employment related economic incentive; or
629
(ii) necessary to support any of the following by a client seeking an employment related
630
economic incentive:
631
(A) a request;
632
(B) a claim;
633
(C) an application; or
634
(D) another action.
635
(5) With respect to a bid, contract, purchase order, or agreement entered into with the
636
state or a political subdivision of the state, the fact that the client enters into a professional
637
employer agreement does not affect the client's status or certification as a:
638
(a) small business;
639
(b) minority-owned business;
640
(c) disadvantaged business;
641
(d) woman-owned business; or
642
(e) historically underutilized business.
643
Section 16.
Section
31A-40-301
is enacted to read:
644
Part 3. Licensing Requirements
645
31A-40-301. Licensing required.
646
(1) Except as otherwise provided in this chapter, a person may not engage in the
647
following before the day on which the person is licensed under this chapter:
648
(a) providing a professional employer service in this state;
649
(b) advertising that the person provides a professional employer service in this state; or
650
(c) holding itself out as providing a professional employer service in this state.
651
(2) A person described in Subsection (1) is subject to this chapter regardless of whether
652
the person uses one of the following terms with or without the term "registered" or "licensed":
653
(a) "administrative employer";
654
(b) "employee leasing company";
655
(c) "professional employer organization";
656
(d) "PEO";
657
(e) "staff leasing company"; or
658
(f) another name.
659
Section 17.
Section
31A-40-302
is enacted to read:
660
31A-40-302. Licensing process -- Grandfathering.
661
(1) To apply for an initial or renewal license under this chapter, a person shall:
662
(a) (i) file an application with the commissioner on a form and in a manner the
663
commissioner shall determine by rule made in accordance with Title 63, Chapter 46a, Utah
664
Administrative Rulemaking Act; and
665
(ii) pay a license fee determined in accordance with Section
31A-3-103
that is not
666
refunded if the application:
667
(A) is denied; or
668
(B) if incomplete, is never completed by the person filing the application; or
669
(b) comply with Section
31A-40-303
.
670
(2) In the application described in Subsection (1)(a), the person shall provide:
671
(a) any name under which the professional employer organization will engage in a
672
professional employer service;
673
(b) the address of the principal place of business of the professional employer
674
organization;
675
(c) the address of each location the professional employer organization maintains in
676
this state;
677
(d) the professional employer organization's federal taxpayer or employer identification
678
number;
679
(e) the following information by jurisdiction of each name under which the
680
professional employer organization operated in the five years preceding the day on which the
681
person files the application:
682
(i) the name;
683
(ii) an alternative name, if any;
684
(iii) a name of a predecessor; and
685
(iv) if known, a successor business entity;
686
(f) a statement of ownership that includes the name and evidence of the business
687
experience of a person that, individually or acting in concert with one or more other persons,
688
owns or controls, directly or indirectly, 10% or more of the equity interests of the professional
689
employer organization;
690
(g) a statement of management that includes the name and evidence of the business
691
experience of a person who:
692
(i) serves as president of the professional employer organization;
693
(ii) serves as chief executive officer of the professional employer organization; or
694
(iii) may act as a senior executive officer of the professional employer organization;
695
and
696
(h) a financial statement that:
697
(i) sets forth the financial condition of:
698
(A) the professional employer organization; or
699
(B) a professional employer organization group in which the professional employer
700
organization is a member;
701
(ii) states whether or not the professional employer organization complies with Section
702
31A-40-205
; and
703
(iii) complies with Section
31A-40-305
.
704
(3) A professional employer organization that is registered by the Division of
705
Occupations and Professional Licensing as of May 4, 2008 shall comply with this section by no
706
later than November 5, 2008. An initial license obtained under this Subsection (3) is valid
707
until the end of the professional employer organization's first full fiscal year that immediately
708
follows the day on which the initial license application is filed.
709
(4) Within 180 days after the day on which a professional employer organization's
710
fiscal year ends, a professional employer organization shall renew its license by complying
711
with Subsection (1).
712
Section 18.
Section
31A-40-303
is enacted to read:
713
31A-40-303. Licensed through an assurance organization.
714
(1) (a) A person may comply with Section
31A-40-302
by:
715
(i) filing with the commissioner:
716
(A) a certification that an assurance organization certifies the qualifications of the
717
professional employer organization;
718
(B) the information required by Subsections
31A-40-302
(2)(a) through (d) and
719
31A-40-302
(2)(h); and
720
(C) any changes to the information required by Subsection (1)(a)(i)(B) within 30 days
721
of the day on which the information changes; and
722
(ii) paying a license fee determined in accordance with Section
31A-3-103
.
723
(b) A professional employer organization that meets the requirements of Section
724
31A-40-302
by complying with this section is not required to:
725
(i) renew its license until the day on which the assurance organization no longer
726
certifies the qualifications of the professional employer organization;
727
(ii) provide the information in Subsections
31A-40-302
(2)(e) through (g); or
728
(iii) comply with Section
31A-40-205
.
729
(c) If a professional employer organization that meets the requirements of Section
730
31A-40-302
by complying with this section receives a new or renewed certification by the
731
assurance organization, the professional employer organization shall file with the
732
commissioner a new certification within 30 days from the day on which the professional
733
employer organization receives the new or renewed certification from the assurance
734
organization.
735
(d) (i) If a professional employer organization authorizes an assurance organization to
736
act on behalf of the professional employer organization for purposes of licensure under this
737
section, the commissioner shall accept the assurance organization's filing of the information
738
required by Subsection (1)(a) or (1)(c) if the information otherwise complies with this section
739
and commission rules.
740
(ii) Notwithstanding Subsection (1)(d)(i), if the assurance organization fails to make a
741
required filing under this section, the commissioner may not accept, not renew, or terminate the
742
professional employer organization's license.
743
(2) The commissioner shall designate one or more assurance organizations by rule:
744
(a) consistent with this section;
745
(b) made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
746
Act; and
747
(c) that requires that an assurance organization designated by the commissioner be
748
licensed by one or more states other than Utah to certify the qualifications of a professional
749
employer organization.
750
(3) The qualifications certified by an assurance organization designated by the
751
commissioner shall include at a minimum that a professional employer organization:
752
(a) ensure that each controlling person of the professional employer organization:
753
(i) be competent to manage a professional employer organization;
754
(ii) be responsible in the controlling person's finances; and
755
(iii) not have a history of or be engaged in unlawful activities;
756
(b) has a history that is verifiable that the professional employer organization:
757
(i) complies with regulatory requirements; and
758
(ii) engages in financially responsible conduct;
759
(c) has or is able to obtain audited financial statements;
760
(d) has an adjusted net worth equal to or in excess of the greater of:
761
(i) $100,000; or
762
(ii) 5% of total adjusted liabilities;
763
(e) has liquid assets that are sufficient to pay short-term liabilities as demonstrated by a
764
ratio determined by dividing current assets by current liabilities or a similar formula;
765
(f) has on its books adequate financial reserves for all local, state, and federal
766
self-insurance and any insurance policy or plan in which the final cost of coverage is affected
767
by claim losses;
768
(g) operates in conformity with all applicable laws and regulations including those laws
769
and regulations in addition to this chapter;
770
(h) does not engage in deceptive trade practices or misrepresentations of an employer's
771
obligation or liability;
772
(i) has a written professional employer agreement with each client;
773
(j) has or is willing to obtain a written acknowledgment, as part of an existing form or
774
separately, from each covered employee stating that the covered employee understands and
775
accepts the nature, terms, and conditions of the coemployment relationship;
776
(k) establishes and maintains a coemployment relationship by assuming key employer
777
attributes with respect to covered employees as demonstrated by the professional employer
778
agreement and employment forms, policies, and procedures;
779
(l) provides all covered employees with a written copy of the professional employer
780
organization's employment policies and procedures;
781
(m) ensures that all covered employees are covered in a regulatory compliant manner
782
by workers' compensation insurance;
783
(n) does not knowingly use the coemployment relationship to assist a client to evade or
784
avoid the client's obligations under:
785
(i) the National Labor Relations Act, 29 U.S.C. Sec. 151 et seq.;
786
(ii) the federal Railway Labor Act, 45 U.S.C. Sec. 151 et seq.; or
787
(iii) any collective bargaining agreement;
788
(o) except through a licensed insurance agent, does not:
789
(i) represent or imply that it can sell insurance;
790
(ii) attempt to sell insurance; or
791
(iii) sell insurance;
792
(p) markets and provides, or is willing to market and provide professional employer
793
service under a separate and distinct trade name from any affiliated professional employer
794
organization that is not certified by the assurance organization;
795
(q) does not allow any person not certified by the assurance organization to use the
796
professional employer organization's trade name in the sale or delivery of the professional
797
employer organization's professional employer service;
798
(r) does not guarantee, participate in, transfer between, or otherwise share liabilities
799
with any other professional employer organization that is not certified by the assurance
800
organization:
801
(i) in the employment of covered employees; or
802
(ii) in any employee benefit or insurance policy or plan that is not fully insured and
803
fully funded; and
804
(s) has the ability to provide a regulatory agency or insurance carrier upon request with:
805
(i) a client's name, address, and federal tax identification number;
806
(ii) payroll data by:
807
(A) client;
808
(B) (I) client SIC Code of the 1987 Standard Industrial Classification Manual of the
809
federal Executive Office of the President, Office of Management and Budget; or
810
(II) client classification under the 2002 North American Industry Classification System
811
of the federal Executive Office of the President, Office of Management and Budget; and
812
(C) workers' compensation classification;
813
(iii) the names of covered employees by:
814
(A) the worksite of a client; and
815
(B) workers' compensation classification; and
816
(iv) workers' compensation certificates of insurance.
817
(4) This section does not modify the commissioner's authority or responsibility to
818
accept, renew, or terminate a license.
819
Section 19.
Section
31A-40-304
is enacted to read:
820
31A-40-304. Small operation license.
821
(1) A professional employer organization may obtain a small operation license under
822
this chapter if the professional employer organization:
823
(a) files an application for a small operation license with the commissioner:
824
(i) on a form and in a manner the commissioner shall determine by rule made in
825
accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act; and
826
(ii) that includes the information and documentation the commissioner determines is
827
necessary to show that the professional employer organization qualifies for a small operation
828
license;
829
(b) pays a small operation license fee determined in accordance with Section
830
31A-3-103
, that is not refunded if the application:
831
(i) is denied; or
832
(ii) if incomplete, is never completed by the person filing the application;
833
(c) is domiciled outside of this state;
834
(d) is licensed or registered as a professional employer organization in another state;
835
(e) does not maintain an office in this state or directly solicit a client that:
836
(i) is domiciled in this state; or
837
(ii) maintains a location within this state;
838
(f) does not have at any time more than 50 covered employees employed or domiciled
839
in this state; and
840
(g) is not owned or directed by another professional employer organization operating in
841
the state.
842
(2) (a) A small operation license is valid for one year.
843
(b) A professional employer organization may annually renew a small operation
844
license.
845
(3) A professional employer organization with a small operation license under this
846
chapter is not subject to Section
31A-40-205
.
847
Section 20.
Section
31A-40-305
is enacted to read:
848
31A-40-305. Financial statements required for licensing.
849
(1) (a) A person that files a financial statement with an application for an initial license
850
under Section
31A-40-302
shall file the professional employer organization's most recent audit
851
as of the day the application is filed, except that the financial statement may not be older than
852
ten months from the day on which the application is filed.
853
(b) A person that files a financial statement to renew a license shall file the most recent
854
financial statement of the professional employer organization as of the day the application for
855
renewal is filed with the commission.
856
(c) (i) The person filing an application may apply for an extension with the
857
commissioner if the request for an extension is accompanied by a letter from the person
858
conducting the audit for the financial statement stating:
859
(A) the reason for the delay; and
860
(B) the anticipated date on which the audit will be completed.
861
(ii) If a person complies with Subsection (1)(c)(i), the commissioner may grant an
862
extension up to 30 days from the day on which the financial statement is due under this section.
863
(d) A professional employer organization may file a combined or consolidated
864
financial statement if:
865
(i) the professional employer organization is owned by or in common control with
866
another person; and
867
(ii) the combined or consolidated financial statement clearly identifies the following of
868
the professional employer organization:
869
(A) its working capital;
870
(B) its assets; and
871
(C) its liabilities.
872
(2) A financial statement required by this chapter shall be:
873
(a) prepared in accordance with generally accepted accounting principles;
874
(b) audited by an independent certified public accountant licensed to practice in the
875
jurisdiction in which the person conducting the audit is located; and
876
(c) without qualification as to the going concern status of the professional employer
877
organization.
878
(3) Notwithstanding the other provisions of this section, the commissioner shall license
879
a professional employer organization that does not have sufficient operating history to have an
880
audited financial statement on the basis of at least 12 months if:
881
(a) the professional employer organization complies with the other requirements for
882
licensure, including Section
31A-40-205
; and
883
(b) the person filing the application for license files a financial statement that is
884
reviewed by a certified public accountant.
885
Section 21.
Section
31A-40-306
is enacted to read:
886
31A-40-306. Professional employer organization group.
887
(1) Subject to Subsection (2), a professional employer organization that is a member of
888
a professional employer organization group may comply with Section
31A-40-205
or Sections
889
31A-40-302
through
31A-40-305
on a combined or consolidated basis if each member of the
890
professional employer organization group guarantees the obligations under this chapter of each
891
other member of the professional employer organization group.
892
(2) The controlling entity of a professional employer organization group shall
893
guarantee the obligations of a professional employer organization under this chapter if the
894
professional employer organization group files a combined or consolidated audited financial
895
statement that includes a person that is not:
896
(a) a professional employer organization; or
897
(b) a member of the professional employer organization group.
898
Section 22.
Section
31A-40-401
is enacted to read:
899
Part 4. Enforcement
900
31A-40-401. Prohibited acts.
901
(1) A person may not:
902
(a) offer or provide a professional employer service if the person is not licensed under
903
this chapter;
904
(b) use one of the following names if the person is not licensed under this chapter:
905
(i) "administrative employer";
906
(ii) "employee leasing";
907
(iii) "PEO";
908
(iv) "professional employer organization";
909
(v) "staff leasing"; or
910
(vi) other name that represents the provision of a professional employer service;
911
(c) knowingly provide false or fraudulent information to the commissioner:
912
(i) in conjunction with an application to be licensed or to renew a license under this
913
chapter; or
914
(ii) in a report required under this chapter;
915
(d) knowingly make a material misrepresentation to the commissioner or other
916
governmental agency;
917
(e) fail to make a filing with a state agency that is required by this chapter or the
918
professional employer agreement within 30 days of the day on which the filing is due;
919
(f) fail to make a payment to a state agency that is required by this chapter or the
920
professional employer agreement within 30 days of the day on which the payment is due;
921
(g) (i) offer a covered employee a self-funded medical plan unless the self-funded
922
medical plan is maintained for the sole benefit of covered employees;
923
(ii) misrepresent that a self-funded medical plan it offers is other than self-funded; or
924
(iii) offer to a covered employee a self-funded or partially self-funded medical plan
925
without delivering to a plan participant a summary plan description that accurately describes
926
the terms of the plan, including disclosure that the plan is self-funded or partially self-funded;
927
(h) subject to Subsection (2), divert to another purpose or use other than as designated
928
funds paid by a client to the professional employer organization and designated for:
929
(i) compensation of a covered employee;
930
(ii) a benefit of a covered employee;
931
(iii) a payroll-related tax;
932
(iv) an unemployment insurance contribution;
933
(v) withholding of compensation for a covered employee;
934
(vi) a workers' compensation premium; or
935
(vii) another assessment paid by a professional employer organization to or on behalf
936
of a covered employee under a professional employer agreement;
937
(i) provide a covered employee to a client under a provision, term, or condition that is
938
not contained in a professional employer arrangement between the professional employer
939
organization and client;
940
(j) engage in a willful, fraudulent, or deceitful act that:
941
(i) is by a professional employer organization, caused by a professional employer
942
organization, or at a professional employer organization's direction; and
943
(ii) causes material injury to a client or covered employee;
944
(k) fail to comply with a federal law or state law, to the extent state law is not
945
preempted by federal law, regarding an employee benefit offered to an employee; or
946
(l) willfully or recklessly violate this chapter or an order or rule issued by the
947
commissioner under this chapter.
948
(2) If a client defaults on a professional employer agreement or otherwise fails to pay a
949
professional employer organization, the professional employer organization is not in violation
950
of this section if the professional employer organization allocates the deficient payment to the
951
portions of an invoice.
952
Section 23.
Section
31A-40-402
is enacted to read:
953
31A-40-402. Disciplinary action.
954
(1) Notwithstanding Section
31A-2-308
, in accordance with this section the
955
commissioner may take action against a person if the commissioner finds that the person:
956
(a) is violating or has violated Section
31A-40-401
; or
957
(b) (i) is a:
958
(A) professional employer organization licensed under this chapter; or
959
(B) controlling person of a professional employer organization licensed under this
960
chapter; and
961
(ii) is convicted of a crime that relates to:
962
(A) the operation of a professional employer organization;
963
(B) fraud or deceit; or
964
(C) the ability of the professional employer organization or a controlling person of the
965
professional employer organization to operate a professional employer organization.
966
(2) After notice and an opportunity for a hearing in accordance with Title 63, Chapter
967
46b, Administrative Procedures Act, if the commissioner makes a finding described in
968
Subsection (1), the commissioner may:
969
(a) deny an application for a license;
970
(b) revoke, restrict, or refuse to renew a license;
971
(c) place a licensee on probation for the period and subject to conditions specified by
972
the commissioner;
973
(d) impose an administrative penalty in an amount not to exceed $2,500 for each
974
violation; or
975
(e) issue a cease and desist order.
976
Section 24.
Section
34A-2-103
is amended to read:
977
34A-2-103. Employers enumerated and defined -- Regularly employed --
978
Statutory employers.
979
(1) (a) The state, and each county, city, town, and school district in the state are
980
considered employers under this chapter and Chapter 3, Utah Occupational Disease Act.
981
(b) For the purposes of the exclusive remedy in this chapter and Chapter 3, Utah
982
Occupational Disease Act prescribed in Sections
34A-2-105
and
34A-3-102
, the state is
983
considered to be a single employer and includes any office, department, agency, authority,
984
commission, board, institution, hospital, college, university, or other instrumentality of the
985
state.
986
(2) (a) Except as provided in Subsection (4), each person, including each public utility
987
and each independent contractor, who regularly employs one or more workers or operatives in
988
the same business, or in or about the same establishment, under any contract of hire, express or
989
implied, oral or written, is considered an employer under this chapter and Chapter 3, Utah
990
Occupational Disease Act.
991
(b) As used in this Subsection (2):
992
(i) "Independent contractor" means any person engaged in the performance of any work
993
for another who, while so engaged, is:
994
(A) independent of the employer in all that pertains to the execution of the work;
995
(B) not subject to the routine rule or control of the employer;
996
(C) engaged only in the performance of a definite job or piece of work; and
997
(D) subordinate to the employer only in effecting a result in accordance with the
998
employer's design.
999
(ii) "Regularly" includes all employments in the usual course of the trade, business,
1000
profession, or occupation of the employer, whether continuous throughout the year or for only a
1001
portion of the year.
1002
(3) (a) The client [company in an employee leasing arrangement] under a professional
1003
employer organization agreement regulated under Title [58, Chapter 59] 31A, Chapter 40,
1004
Professional Employer Organization [Registration] Licensing Act[,]:
1005
(i) is considered the employer of [leased employees] a covered employee; and
1006
(ii) subject to Section
31A-40-209
, shall secure workers' compensation benefits for
1007
[them] a covered employee by complying with Subsection
34A-2-201
(1) or (2) and
1008
commission rules.
1009
[(b) An insurance carrier may underwrite workers' compensation secured in accordance
1010
with Subsection (3)(a) showing the leasing company as the named insured and each client
1011
company as an additional insured by means of individual endorsements.]
1012
[(c) Endorsements shall be filed with the division as directed by commission rule.]
1013
[(d)] (b) The division shall promptly inform the [Division of Occupation and
1014
Professional Licensing within the Department of Commerce] Insurance Department if the
1015
division has reason to believe that [an employee leasing company] a professional employer
1016
organization is not in compliance with Subsection
34A-2-201
(1) or (2) and commission rules.
1017
(4) A domestic employer who does not employ one employee or more than one
1018
employee at least 40 hours per week is not considered an employer under this chapter and
1019
Chapter 3, Utah Occupational Disease Act.
1020
(5) (a) As used in this Subsection (5):
1021
(i) (A) "agricultural employer" means a person who employs agricultural labor as
1022
defined in Subsections
35A-4-206
(1) and (2) and does not include employment as provided in
1023
Subsection
35A-4-206
(3); and
1024
(B) notwithstanding Subsection (5)(a)(i)(A), only for purposes of determining who is a
1025
member of the employer's immediate family under Subsection (5)(a)(ii), if the agricultural
1026
employer is a corporation, partnership, or other business entity, "agricultural employer" means
1027
an officer, director, or partner of the business entity;
1028
(ii) "employer's immediate family" means:
1029
(A) an agricultural employer's:
1030
(I) spouse;
1031
(II) grandparent;
1032
(III) parent;
1033
(IV) sibling;
1034
(V) child;
1035
(VI) grandchild;
1036
(VII) nephew; or
1037
(VIII) niece;
1038
(B) a spouse of any person provided in Subsection (5)(a)(ii)(A)(II) through (VIII); or
1039
(C) an individual who is similar to those listed in Subsections (5)(a)(ii)(A) or (B) as
1040
defined by rules of the commission; and
1041
(iii) "nonimmediate family" means a person who is not a member of the employer's
1042
immediate family.
1043
(b) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an
1044
agricultural employer is not considered an employer of a member of the employer's immediate
1045
family.
1046
(c) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an
1047
agricultural employer is not considered an employer of a nonimmediate family employee if:
1048
(i) for the previous calendar year the agricultural employer's total annual payroll for all
1049
nonimmediate family employees was less than $8,000; or
1050
(ii) (A) for the previous calendar year the agricultural employer's total annual payroll
1051
for all nonimmediate family employees was equal to or greater than $8,000 but less than
1052
$50,000; and
1053
(B) the agricultural employer maintains insurance that covers job-related injuries of the
1054
employer's nonimmediate family employees in at least the following amounts:
1055
(I) $300,000 liability insurance, as defined in Section
31A-1-301
; and
1056
(II) $5,000 for health care benefits similar to benefits under health care insurance as
1057
defined in Section
31A-1-301
.
1058
(d) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an
1059
agricultural employer is considered an employer of a nonimmediate family employee if:
1060
(i) for the previous calendar year the agricultural employer's total annual payroll for all
1061
nonimmediate family employees is equal to or greater than $50,000; or
1062
(ii) (A) for the previous year the agricultural employer's total payroll for nonimmediate
1063
family employees was equal to or exceeds $8,000 but is less than $50,000; and
1064
(B) the agricultural employer fails to maintain the insurance required under Subsection
1065
(5)(c)(ii)(B).
1066
(6) An employer of agricultural laborers or domestic servants who is not considered an
1067
employer under this chapter and Chapter 3, Utah Occupational Disease Act, may come under
1068
this chapter and Chapter 3, Utah Occupational Disease Act, by complying with:
1069
(a) this chapter and Chapter 3, Utah Occupational Disease Act; and
1070
(b) the rules of the commission.
1071
(7) (a) If any person who is an employer procures any work to be done wholly or in
1072
part for the employer by a contractor over whose work the employer retains supervision or
1073
control, and this work is a part or process in the trade or business of the employer, the
1074
contractor, all persons employed by the contractor, all subcontractors under the contractor, and
1075
all persons employed by any of these subcontractors, are considered employees of the original
1076
employer for the purposes of this chapter and Chapter 3, Utah Occupational Disease Act.
1077
(b) Any person who is engaged in constructing, improving, repairing, or remodelling a
1078
residence that the person owns or is in the process of acquiring as the person's personal
1079
residence may not be considered an employee or employer solely by operation of Subsection
1080
(7)(a).
1081
(c) A partner in a partnership or an owner of a sole proprietorship is not considered an
1082
employee under Subsection (7)(a) if the employer who procures work to be done by the
1083
partnership or sole proprietorship obtains and relies on either:
1084
(i) a valid certification of the partnership's or sole proprietorship's compliance with
1085
Section
34A-2-201
indicating that the partnership or sole proprietorship secured the payment of
1086
workers' compensation benefits pursuant to Section
34A-2-201
; or
1087
(ii) if a partnership or sole proprietorship with no employees other than a partner of the
1088
partnership or owner of the sole proprietorship, a workers' compensation policy issued by an
1089
insurer pursuant to Subsection
31A-21-104
[(8)](9) stating that:
1090
(A) the partnership or sole proprietorship is customarily engaged in an independently
1091
established trade, occupation, profession, or business; and
1092
(B) the partner or owner personally waives the partner's or owner's entitlement to the
1093
benefits of this chapter and Chapter 3, Utah Occupational Disease Act, in the operation of the
1094
partnership or sole proprietorship.
1095
(d) A director or officer of a corporation is not considered an employee under
1096
Subsection (7)(a) if the director or officer is excluded from coverage under Subsection
1097
34A-2-104
(4).
1098
(e) A contractor or subcontractor is not an employee of the employer under Subsection
1099
(7)(a), if the employer who procures work to be done by the contractor or subcontractor obtains
1100
and relies on either:
1101
(i) a valid certification of the contractor's or subcontractor's compliance with Section
1102
34A-2-201
; or
1103
(ii) if a partnership, corporation, or sole proprietorship with no employees other than a
1104
partner of the partnership, officer of the corporation, or owner of the sole proprietorship, a
1105
workers' compensation policy issued by an insurer pursuant to Subsection
31A-21-104
[(8)](9)
1106
stating that:
1107
(A) the partnership, corporation, or sole proprietorship is customarily engaged in an
1108
independently established trade, occupation, profession, or business; and
1109
(B) the partner, corporate officer, or owner personally waives the partner's, corporate
1110
officer's, or owner's entitlement to the benefits of this chapter and Chapter 3, Utah
1111
Occupational Disease Act, in the operation of the partnership's, corporation's, or sole
1112
proprietorship's enterprise under a contract of hire for services.
1113
(f) (i) For purposes of this Subsection (7)(f), "eligible employer" means a person who:
1114
(A) is an employer; and
1115
(B) procures work to be done wholly or in part for the employer by a contractor,
1116
including:
1117
(I) all persons employed by the contractor;
1118
(II) all subcontractors under the contractor; and
1119
(III) all persons employed by any of these subcontractors.
1120
(ii) Notwithstanding the other provisions in this Subsection (7), if the conditions of
1121
Subsection (7)(f)(iii) are met, an eligible employer is considered an employer for purposes of
1122
Section
34A-2-105
of the contractor, subcontractor, and all persons employed by the contractor
1123
or subcontractor described in Subsection (7)(f)(i)(B).
1124
(iii) Subsection (7)(f)(ii) applies if the eligible employer:
1125
(A) under Subsection (7)(a) is liable for and pays workers' compensation benefits as an
1126
original employer under Subsection (7)(a) because the contractor or subcontractor fails to
1127
comply with Section
34A-2-201
;
1128
(B) (I) secures the payment of workers' compensation benefits for the contractor or
1129
subcontractor pursuant to Section
34A-2-201
;
1130
(II) procures work to be done that is part or process of the trade or business of the
1131
eligible employer; and
1132
(III) does the following with regard to a written workplace accident and injury
1133
reduction program that meets the requirements of Subsection
34A-2-111
(3)(d):
1134
(Aa) adopts the workplace accident and injury reduction program;
1135
(Bb) posts the workplace accident and injury reduction program at the work site at
1136
which the eligible employer procures work; and
1137
(Cc) enforces the workplace accident and injury reduction program according to the
1138
terms of the workplace accident and injury reduction program; or
1139
(C) (I) obtains and relies on:
1140
(Aa) a valid certification described in Subsection (7)(c)(i) or (7)(e)(i);
1141
(Bb) a workers' compensation policy described in Subsection (7)(c)(ii) or (7)(e)(ii); or
1142
(Cc) proof that a director or officer is excluded from coverage under Subsection
1143
34A-2-104
(4);
1144
(II) is liable under Subsection (7)(a) for the payment of workers' compensation benefits
1145
if the contractor or subcontractor fails to comply with Section
34A-2-201
;
1146
(III) procures work to be done that is part or process in the trade or business of the
1147
eligible employer; and
1148
(IV) does the following with regard to a written workplace accident and injury
1149
reduction program that meets the requirements of Subsection
34A-2-111
(3)(d):
1150
(Aa) adopts the workplace accident and injury reduction program;
1151
(Bb) posts the workplace accident and injury reduction program at the work site at
1152
which the eligible employer procures work; and
1153
(Cc) enforces the workplace accident and injury reduction program according to the
1154
terms of the workplace accident and injury reduction program.
1155
Section 25.
Section
34A-2-105
is amended to read:
1156
34A-2-105. Exclusive remedy against employer, and officer, agent, or employee of
1157
employer.
1158
(1) The right to recover compensation pursuant to this chapter for injuries sustained by
1159
an employee, whether resulting in death or not, [shall be] is the exclusive remedy against the
1160
employer and [shall be] is the exclusive remedy against any officer, agent, or employee of the
1161
employer and the liabilities of the employer imposed by this chapter [shall be] is in place of any
1162
and all other civil liability whatsoever, at common law or otherwise, to the employee or to the
1163
employee's spouse, widow, children, parents, dependents, next of kin, heirs, personal
1164
representatives, guardian, or any other person whomsoever, on account of any accident or
1165
injury or death, in any way contracted, sustained, aggravated, or incurred by the employee in
1166
the course of or because of or arising out of the employee's employment, and [no] an action at
1167
law may not be maintained against an employer or against any officer, agent, or employee of
1168
the employer based upon any accident, injury, or death of an employee. Nothing in this
1169
section[, however, shall prevent] prevents an employee, or the employee's dependents, from
1170
filing a claim for compensation in those cases in accordance with Chapter 3, Utah Occupational
1171
Disease Act.
1172
(2) The exclusive remedy provisions of this section apply to both the client [company]
1173
and the [employee leasing company in an employee leasing arrangement] professional
1174
employer organization in a coemployment relationship regulated under Title [58] 31A, Chapter
1175
[59] 40, Professional Employer Organization [Registration] Licensing Act.
1176
(3) (a) For purposes of this section:
1177
(i) "Temporary employee" means an individual who for temporary work assignment is:
1178
(A) an employee of a temporary staffing company; or
1179
(B) registered by or otherwise associated with a temporary staffing company.
1180
(ii) "Temporary staffing company" means a company that engages in the assignment of
1181
individuals as temporary full-time or part-time employees to fill assignments with a finite
1182
ending date to another independent entity.
1183
(b) If the temporary staffing company secures the payment of workers' compensation in
1184
accordance with Section
34A-2-201
for all temporary employees of the temporary staffing
1185
company, the exclusive remedy provisions of this section apply to both the temporary staffing
1186
company and the client company and its employees and provide the temporary staffing
1187
company the same protection that a client company and its employees has under this section for
1188
the acts of any of the temporary staffing company's temporary employees on assignment at the
1189
client company worksite.
1190
Section 26.
Section
35A-4-202
is amended to read:
1191
35A-4-202. Employing units.
1192
As used in this chapter:
1193
(1) (a) "Employing unit" means:
1194
(i) any individual or type of organization that has or subsequent to January 1, 1935, had
1195
one or more individuals performing services for it within the state including any:
1196
(A) partnership;
1197
(B) association;
1198
(C) trust;
1199
(D) estate;
1200
(E) joint stock company;
1201
(F) insurance company;
1202
(G) limited liability company;
1203
(H) limited liability partnership;
1204
(I) joint venture;
1205
(J) corporation, whether domestic or foreign;
1206
(K) the receiver, trustee in bankruptcy, trustee or successor of any entity listed in
1207
Subsections (1)(a)(i)(A) through (J);
1208
(L) the legal representative of a deceased person; or
1209
(M) a tribal unit; or
1210
(ii) any properly and legally registered professional employer organization[, commonly
1211
known as an employee leasing company,] as defined by Section [
58-59-102
]
31A-40-102
.
1212
(b) The department may adopt rules specific to a professional employer organization
1213
pursuant to Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
1214
(c) All individuals performing services within this state for any employing unit that
1215
maintains two or more separate establishments within this state are considered to be
1216
performing services for a single employing unit for all the purposes of this chapter.
1217
(d) Each individual employed to perform or to assist in performing the work of any
1218
person in the service of an employing unit is considered to be engaged by the employing unit
1219
for all the purposes of this chapter whether the individual was hired or paid directly by the
1220
employing unit or by the person, provided the employing unit had actual or constructive
1221
knowledge of the work.
1222
(2) "Hospital" means an institution that is licensed, certified, or approved by the
1223
Department of Health as a hospital.
1224
(3) "Institution of higher education," for the purposes of this section, means an
1225
educational institution that:
1226
(a) (i) admits, as regular students only, individuals having a certificate of graduation
1227
from a high school or the recognized equivalent of a certificate;
1228
(ii) is legally authorized in this state to provide a program of education beyond high
1229
school;
1230
(iii) provides:
1231
(A) an educational program for which it awards a bachelor's or higher degree;
1232
(B) a program that is acceptable for full credit toward a bachelor's or higher degree;
1233
(C) a program of postgraduate or postdoctoral studies; or
1234
(D) a program of training to prepare students for gainful employment in a recognized
1235
occupation; and
1236
(iv) is a public or other nonprofit institution.
1237
(b) All colleges and universities in this state are institutions of higher education for
1238
purposes of this section.
1239
Section 27.
Section
49-12-102
is amended to read:
1240
49-12-102. Definitions.
1241
As used in this chapter:
1242
(1) (a) Except as provided in Subsection (1)(c), "compensation" means the total
1243
amount of payments made by a participating employer to a member of this system for services
1244
rendered to the participating employer, including:
1245
(i) bonuses;
1246
(ii) cost-of-living adjustments;
1247
(iii) other payments currently includable in gross income and that are subject to Social
1248
Security deductions, including any payments in excess of the maximum amount subject to
1249
deduction under Social Security law;
1250
(iv) amounts that the member authorizes to be deducted or reduced for salary deferral
1251
or other benefits authorized by federal law; and
1252
(v) member contributions.
1253
(b) "Compensation" for purposes of this chapter may not exceed the amount allowed
1254
under Internal Revenue Code, Section 401(a)(17).
1255
(c) "Compensation" does not include:
1256
(i) the monetary value of remuneration paid in kind, including a residence or use of
1257
equipment;
1258
(ii) the cost of any employment benefits paid for by the participating employer;
1259
(iii) compensation paid to a temporary employee, an exempt employee, or an employee
1260
otherwise ineligible for service credit;
1261
(iv) any payments upon termination, including accumulated vacation, sick leave
1262
payments, severance payments, compensatory time payments, or any other special payments; or
1263
(v) any allowances or payments to a member for costs or expenses paid by the
1264
participating employer, including automobile costs, uniform costs, travel costs, tuition costs,
1265
housing costs, insurance costs, equipment costs, and dependent care costs.
1266
(d) The executive director may determine if a payment not listed under this Subsection
1267
(1) falls within the definition of compensation.
1268
(2) "Final average salary" means the amount computed by averaging the highest five
1269
years of annual compensation preceding retirement subject to Subsections (2)(a), (b), (c), and
1270
(d).
1271
(a) Except as provided in Subsection (2)(b), the percentage increase in annual
1272
compensation in any one of the years used may not exceed the previous year's compensation by
1273
more than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power
1274
of the dollar during the previous year, as measured by a United States Bureau of Labor
1275
Statistics Consumer Price Index average as determined by the board.
1276
(b) In cases where the participating employer provides acceptable documentation to the
1277
office, the limitation in Subsection (2)(a) may be exceeded if:
1278
(i) the member has transferred from another agency; or
1279
(ii) the member has been promoted to a new position.
1280
(c) If the member retires more than six months from the date of termination of
1281
employment, the member is considered to have been in service at the member's last rate of pay
1282
from the date of the termination of employment to the effective date of retirement for purposes
1283
of computing the member's final average salary only.
1284
(d) If the member has less than five years of service credit in this system, final average
1285
salary means the average annual compensation paid to the member during the full period of
1286
service credit.
1287
(3) "Participating employer" means an employer which meets the participation
1288
requirements of Sections
49-12-201
and
49-12-202
.
1289
(4) (a) "Regular full-time employee" means an employee whose term of employment
1290
for a participating employer contemplates continued employment during a fiscal or calendar
1291
year and whose employment normally requires an average of 20 hours or more per week,
1292
except as modified by the board, and who receives benefits normally provided by the
1293
participating employer.
1294
(b) "Regular full-time employee" includes:
1295
(i) a teacher whose term of employment for a participating employer contemplates
1296
continued employment during a school year and who teaches half-time or more;
1297
(ii) a classified school employee whose employment normally requires an average of
1298
20 hours per week or more for a participating employer, regardless of benefits provided;
1299
(iii) an officer, elective or appointive, who earns during the first full month of the term
1300
of office $500 or more, indexed as of January 1, 1990, as provided in Section
49-12-407
;
1301
(iv) a faculty member or employee of an institution of higher education who is
1302
considered full-time by that institution of higher education; and
1303
(v) an individual who otherwise meets the definition of this Subsection (4) who
1304
performs services for a participating employer through [an employee leasing] a professional
1305
employer organization or similar arrangement.
1306
(5) "System" means the Public Employees' Contributory Retirement System created
1307
under this chapter.
1308
(6) "Years of service credit" means:
1309
(a) a period, consisting of 12 full months as determined by the board;
1310
(b) a period determined by the board, whether consecutive or not, during which a
1311
regular full-time employee performed services for a participating employer, including any time
1312
the regular full-time employee was absent on a paid leave of absence granted by a participating
1313
employer or was absent in the service of the United States government on military duty as
1314
provided by this chapter; or
1315
(c) the regular school year consisting of not less than eight months of full-time service
1316
for a regular full-time employee of an educational institution.
1317
Section 28.
Section
49-13-102
is amended to read:
1318
49-13-102. Definitions.
1319
As used in this chapter:
1320
(1) (a) Except as provided in Subsection (1)(c), "compensation" means the total
1321
amount of payments made by a participating employer to a member of this system for services
1322
rendered to the participating employer, including:
1323
(i) bonuses;
1324
(ii) cost-of-living adjustments;
1325
(iii) other payments currently includable in gross income and that are subject to Social
1326
Security deductions, including any payments in excess of the maximum amount subject to
1327
deduction under Social Security law; and
1328
(iv) amounts that the member authorizes to be deducted or reduced for salary deferral
1329
or other benefits authorized by federal law.
1330
(b) "Compensation" for purposes of this chapter may not exceed the amount allowed
1331
under Internal Revenue Code, Section 401(a)(17).
1332
(c) "Compensation" does not include:
1333
(i) the monetary value of remuneration paid in kind, including a residence or use of
1334
equipment;
1335
(ii) the cost of any employment benefits paid for by the participating employer;
1336
(iii) compensation paid to a temporary employee, an exempt employee, or an employee
1337
otherwise ineligible for service credit;
1338
(iv) any payments upon termination, including accumulated vacation, sick leave
1339
payments, severance payments, compensatory time payments, or any other special payments; or
1340
(v) any allowances or payments to a member for costs or expenses paid by the
1341
participating employer, including automobile costs, uniform costs, travel costs, tuition costs,
1342
housing costs, insurance costs, equipment costs, and dependent care costs.
1343
(d) The executive director may determine if a payment not listed under this Subsection
1344
(1) falls within the definition of compensation.
1345
(2) "Final average salary" means the amount computed by averaging the highest three
1346
years of annual compensation preceding retirement subject to the following:
1347
(a) Except as provided in Subsection (2)(b), the percentage increase in annual
1348
compensation in any one of the years used may not exceed the previous year's compensation by
1349
more than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power
1350
of the dollar during the previous year, as measured by a United States Bureau of Labor
1351
Statistics Consumer Price Index average as determined by the board.
1352
(b) In cases where the participating employer provides acceptable documentation to the
1353
office, the limitation in Subsection (2)(a) may be exceeded if:
1354
(i) the member has transferred from another agency; or
1355
(ii) the member has been promoted to a new position.
1356
(c) If the member retires more than six months from the date of termination of
1357
employment and for purposes of computing the member's final average salary only, the
1358
member is considered to have been in service at his last rate of pay from the date of the
1359
termination of employment to the effective date of retirement.
1360
(3) "Participating employer" means an employer which meets the participation
1361
requirements of Sections
49-13-201
and
49-13-202
.
1362
(4) (a) "Regular full-time employee" means an employee whose term of employment
1363
for a participating employer contemplates continued employment during a fiscal or calendar
1364
year and whose employment normally requires an average of 20 hours or more per week,
1365
except as modified by the board, and who receives benefits normally provided by the
1366
participating employer.
1367
(b) "Regular full-time employee" includes:
1368
(i) a teacher whose term of employment for a participating employer contemplates
1369
continued employment during a school year and who teaches half-time or more;
1370
(ii) a classified school employee whose employment normally requires an average of
1371
20 hours per week or more for a participating employer, regardless of benefits provided;
1372
(iii) an officer, elective or appointive, who earns during the first full month of the term
1373
of office $500 or more, indexed as of January 1, 1990, as provided in Section
49-13-407
;
1374
(iv) a faculty member or employee of an institution of higher education who is
1375
considered full-time by that institution of higher education; and
1376
(v) an individual who otherwise meets the definition of this Subsection (4) who
1377
performs services for a participating employer through [an employee leasing] a professional
1378
employer organization or similar arrangement.
1379
(5) "System" means the Public Employees' Noncontributory Retirement System.
1380
(6) "Years of service credit" means:
1381
(a) a period, consisting of 12 full months as determined by the board;
1382
(b) a period determined by the board, whether consecutive or not, during which a
1383
regular full-time employee performed services for a participating employer, including any time
1384
the regular full-time employee was absent on a paid leave of absence granted by a participating
1385
employer or was absent in the service of the United States government on military duty as
1386
provided by this chapter; or
1387
(c) the regular school year consisting of not less than eight months of full-time service
1388
for a regular full-time employee of an educational institution.
1389
Section 29. Repealer.
1390
This bill repeals:
1391
Section 58-59-101, Short title.
1392
Section 58-59-102, Definitions.
1393
Section 58-59-301, Registration required.
1394
Section 58-59-302, Registration process.
1395
Section 58-59-302.5, Assurance organization.
1396
Section 58-59-303, Term of registration -- Expiration -- Renewal.
1397
Section 58-59-303.5, Information to be filed by PEO.
1398
Section 58-59-306, Financial requirements, contractual relations, and allocation of
1399
rights, duties, and obligations -- Taxes and fees.
1400
Section 58-59-306.5, Employment related economic incentives -- Employment
1401
information -- Client's status.
1402
Section 58-59-308, No guarantee.
1403
Section 58-59-501, Unlawful conduct.
1404
Section 58-59-503, Penalty for unlawful conduct.
Legislative Review Note
as of 1-23-08 5:24 PM