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PAG LIN
1 1 Section 1. NEW SECTION. 95.1 PURPOSE AND INTENT.
1 2 The general assembly finds that professional employer
1 3 organizations provide a valuable service to commerce and the
1 4 citizens of this state by increasing the opportunities of
1 5 employers to develop cost-effective methods of satisfying
1 6 their personnel requirements and providing employees with
1 7 access to certain employment benefits which might otherwise
1 8 not be available to them.
1 9 The general assembly further finds that professional
1 10 employer organizations operating in this state should be
1 11 properly recognized and regulated by the department of
1 12 workforce development, as provided in this chapter, and that
1 13 any allocation of the employer duties and responsibilities
1 14 pursuant to this chapter will preserve all rights to which
1 15 covered employees would be entitled under a traditional
1 16 employment relationship.
1 17 Sec. 2. NEW SECTION. 95.2 DEFINITIONS.
1 18 As used in this chapter, unless the context otherwise
1 19 requires:
1 20 1. "Administrative fee" means the fee charged to a client
1 21 by a professional employer organization for professional
1 22 employer services. However, the administrative fee shall not
1 23 be deemed to include any amount of a fee by the professional
1 24 employer organization that is for wages and salaries,
1 25 benefits, workers' compensation, payroll taxes, withholding,
1 26 or other assessments paid by the professional employer
1 27 organization to or on behalf of covered employees under the
1 28 professional employer agreement.
1 29 2. "Client" means any person who enters into a
1 30 professional employer agreement with a professional employer
1 31 organization.
1 32 3. "Coemployer" means either a professional employer
1 33 organization or a client.
1 34 4. "Coemployment relationship" means all of the following:
1 35 a. As between coemployers, a relationship whereby the
2 1 rights, duties, and obligations of an employer which arise out
2 2 of an employment relationship have been allocated between
2 3 coemployers pursuant to a professional employer agreement and
2 4 this chapter, and which is intended to be an ongoing
2 5 relationship, rather than a temporary or project-specific
2 6 relationship.
2 7 b. As between each PEO and a covered employee as to whom a
2 8 professional employer agreement applies, an employment
2 9 relationship whereby such PEO is entitled to enforce those
2 10 rights, and obligated to perform those duties and obligations,
2 11 allocated to such PEO by the professional employer agreement
2 12 and this chapter.
2 13 c. As between each client and a covered employee to whom a
2 14 professional employer agreement applies, an employment
2 15 relationship whereby such client is entitled to enforce those
2 16 rights, and obligated to provide and perform those employer
2 17 obligations allocated to such client by the professional
2 18 employer agreement and this chapter and whereby such client is
2 19 responsible for any employer right or obligation not otherwise
2 20 allocated by the professional employer agreement or this
2 21 chapter.
2 22 d. As to rights enforceable by an employee under state
2 23 law, covered employees shall be entitled to enforce against
2 24 the PEO all of the following rights:
2 25 (1) Those allocated to such PEO by the professional
2 26 employer agreement and this chapter.
2 27 (2) Those shared by the PEO and the client under the
2 28 professional employer agreement and this chapter.
2 29 (3) All other rights, duties, and obligations enforceable
2 30 by an employee against the client pursuant to state law.
2 31 5. "Covered employee" means an individual having a
2 32 coemployment relationship with a PEO and a client who meets
2 33 both of the following criteria:
2 34 a. The individual is a party to a coemployment
2 35 relationship with a PEO and a client.
3 1 b. The individual's coemployment relationship is pursuant
3 2 to a professional employer agreement subject to this chapter.
3 3 Individuals who are officers, directors, shareholders,
3 4 partners, and managers of the client will be covered employees
3 5 to the extent the PEO and the client have expressly agreed in
3 6 the professional employer agreement that such individuals
3 7 would be covered employees and provided such individuals meet
3 8 the criteria of this subsection and act as operational
3 9 managers or perform services for the client.
3 10 6. "Department" means the department of workforce
3 11 development.
3 12 7. "Director" means the director of the department of
3 13 workforce development.
3 14 8. "Person" means a person as defined in section 4.1,
3 15 subsection 20.
3 16 9. "Professional employer agreement" means a written
3 17 contract by and between a client and a PEO that provides all
3 18 of the following:
3 19 a. For the coemployment of covered employees.
3 20 b. For the allocation and sharing between the client and
3 21 the PEO employer responsibilities, including hiring, firing,
3 22 and disciplining, with respect to the covered employees.
3 23 c. That the PEO and the client assume the responsibilities
3 24 required by this chapter.
3 25 10. "Professional employer organization" or "PEO" means
3 26 any person engaged in the business of providing professional
3 27 employer services.
3 28 a. A person engaged in the business of providing
3 29 professional employer services shall be subject to
3 30 registration under this chapter regardless of its use of the
3 31 term "professional employer organization", "PEO", "staff
3 32 leasing company", "registered staff leasing company",
3 33 "employee leasing company", or any other similar name.
3 34 b. None of the following shall be deemed to be a
3 35 professional employer organization or professional employer
4 1 services for purposes of this chapter:
4 2 (1) Arrangements by which a person, whose principal
4 3 business activity is not entering into professional employer
4 4 arrangements and who does not hold itself out as a PEO, shares
4 5 employees with a commonly owned company within the meaning of
4 6 section 414(b) and (c) of the Internal Revenue Code of 1986,
4 7 as amended.
4 8 (2) Arrangements by which a person assumes responsibility
4 9 for the product produced or service performed by such person
4 10 or the person's agents and retains and exercises primary
4 11 direction and control over the work performed by the
4 12 individuals whose services are supplied under such
4 13 arrangements.
4 14 (3) Providing temporary help services.
4 15 11. "Professional employer services" means the service of
4 16 entering into coemployment relationships under this chapter in
4 17 which all or a majority of the employees providing services to
4 18 a client or to a division or work unit of a client are covered
4 19 employees.
4 20 12. "Registrant" means a PEO registered under this
4 21 chapter.
4 22 13. "Temporary help services" means services pursuant to
4 23 which a person does all of the following:
4 24 a. Recruits and hires employees.
4 25 b. Finds other organizations that need the services of
4 26 those employees.
4 27 c. Assigns those employees to perform work or services for
4 28 the other organizations to support or supplement the other
4 29 organizations' workforces, or to provide assistance in special
4 30 work situations such as, but not limited to, employee
4 31 absences, skill shortages, seasonal workloads, or to perform
4 32 special assignments or projects.
4 33 d. Customarily attempts to reassign the employees to other
4 34 organizations when they finish each assignment.
4 35 Sec. 3. NEW SECTION. 95.3 RIGHTS, DUTIES, AND
5 1 OBLIGATIONS.
5 2 1. COLLECTIVE BARGAINING AGREEMENTS. Nothing contained in
5 3 this chapter or in any professional employer agreement shall
5 4 affect, modify, or amend any collective bargaining agreement
5 5 or the rights or obligations of any client, PEO, or covered
5 6 employee under the federal National Labor Relations Act, the
5 7 federal Railway Labor Act, or the public employment relations
5 8 Act in chapter 20.
5 9 2. LICENSING.
5 10 a. Nothing contained in this chapter or any professional
5 11 employer agreement shall affect, modify, or amend any state,
5 12 local, or federal licensing, registration, or certification
5 13 requirement applicable to any client or covered employee. A
5 14 covered employee who must be licensed, registered, or
5 15 certified according to law or regulation is deemed solely an
5 16 employee of the client for purposes of any such license,
5 17 registration, or certification requirement.
5 18 b. A PEO shall not be deemed to engage in any occupation,
5 19 trade, profession, or other activity that is subject to
5 20 licensing, registration, or certification requirements, or is
5 21 otherwise regulated by a governmental entity solely by
5 22 entering into and maintaining a coemployment relationship with
5 23 a covered employee who is subject to such requirements or
5 24 regulation.
5 25 c. Unless otherwise expressly agreed to by the client in
5 26 the professional employer agreement, a client shall have the
5 27 sole right to direct and control the professional or licensed
5 28 activities of covered employees and of the client's business.
5 29 3. TAX CREDITS AND OTHER INCENTIVES. For purposes of
5 30 determination of tax credits and other economic incentives
5 31 provided by this state and based on employment, covered
5 32 employees shall be deemed employees solely of the client. A
5 33 client shall be entitled to the benefit of any tax credit,
5 34 economic incentive, or other benefit arising as the result of
5 35 the employment of covered employees of such client. If the
6 1 grant or amount of any such incentives is based on the number
6 2 of employees, then each client shall be treated as employing
6 3 only those covered employees actually working in the client's
6 4 business operations and covered employees working for other
6 5 clients of the PEO shall not be counted. Each PEO shall
6 6 provide, upon request by a client or an agency or department
6 7 of this state, employment information reasonably required by
6 8 any agency or department of this state responsible for
6 9 administration of any such tax credit or economic incentive
6 10 and necessary to support any request, claim, application, or
6 11 other action by a client seeking any such tax credit or
6 12 economic incentive.
6 13 4. DISADVANTAGED BUSINESS. With respect to a bid,
6 14 contract, purchase order, or agreement entered into with the
6 15 state or a political subdivision of the state, a client
6 16 company's status or certification as a small, minority-owned,
6 17 disadvantaged, or woman-owned business enterprise or as a
6 18 historically underutilized business is not affected because
6 19 the client company has entered into an agreement with a
6 20 registrant or uses the services of a registrant.
6 21 Sec. 4. NEW SECTION. 95.4 REGISTRATION REQUIREMENTS.
6 22 1. REGISTRATION REQUIRED. Except as otherwise provided in
6 23 this chapter, a person shall not provide, advertise, or
6 24 otherwise hold itself out as providing professional employer
6 25 services in this state, unless such person is registered under
6 26 this chapter.
6 27 2. REGISTRATION INFORMATION. Each applicant for
6 28 registration under this chapter shall provide the department
6 29 with all of the following information:
6 30 a. The name or names under which the PEO conducts
6 31 business.
6 32 b. The address of the principal place of business of the
6 33 PEO and the address of each office it maintains in this state.
6 34 c. The PEO's taxpayer or employer identification number.
6 35 d. A list by jurisdiction of each name under which the PEO
7 1 has operated in the preceding five years, including any
7 2 alternative names, names of predecessors, and if known,
7 3 successor business entities.
7 4 e. A statement of ownership, which shall include the name
7 5 and evidence of the business experience of any person that,
7 6 individually or acting in concert with one or more other
7 7 persons, owns or controls, directly or indirectly, twenty-five
7 8 percent or more of the equity interests of the PEO.
7 9 f. A statement of management, which shall include the name
7 10 and evidence of the business experience of any person who
7 11 serves as president, chief executive officer, or otherwise has
7 12 the authority to act as senior executive officer of the PEO.
7 13 g. A financial statement setting forth the financial
7 14 condition of the PEO, as of a date not earlier than three
7 15 hundred sixty-five days prior to the date submitted to the
7 16 department, prepared in accordance with generally accepted
7 17 accounting principles, and audited or reviewed by an
7 18 independent certified public accountant licensed to practice
7 19 in the jurisdiction in which such accountant is located. A
7 20 PEO group may submit combined or consolidated audited or
7 21 reviewed financial statements to meet the requirements of this
7 22 section.
7 23 3. INITIAL REGISTRATION. Each PEO operating within this
7 24 state as of July 1, 2004, shall complete its initial
7 25 registration not later than one hundred eighty days after July
7 26 1, 2004. Such initial registration shall be valid until the
7 27 end of the PEO's first fiscal year that is more than one year
7 28 after July 1, 2004. Each PEO not operating within this state
7 29 as of July 1, 2004, shall complete its initial registration
7 30 prior to commencement of operations within this state.
7 31 4. RENEWAL. Within one hundred eighty days after the end
7 32 of a registrant's fiscal year, such registrant shall renew its
7 33 registration by notifying the department of any changes in the
7 34 information provided in such registrant's most recent
7 35 registration or renewal.
8 1 5. GROUP REGISTRATION. Any two or more PEOs held under
8 2 common control of any other person or persons acting in
8 3 concert may be registered as a PEO group. A PEO group may
8 4 satisfy any reporting and financial requirements of this
8 5 chapter on a consolidated basis.
8 6 6. LIMITED REGISTRATION. A PEO is eligible for a limited
8 7 registration under this chapter if all of the following apply:
8 8 a. The PEO submits a properly executed request for limited
8 9 registration on a form provided by the department.
8 10 b. The PEO is domiciled outside this state and is licensed
8 11 or registered as a professional employer organization in
8 12 another state that has substantially the same or greater
8 13 requirements as this chapter.
8 14 c. The PEO does not maintain an office in this state or
8 15 directly solicit clients located or domiciled within this
8 16 state.
8 17 d. The PEO does not have more than fifty covered employees
8 18 employed or domiciled in this state on any given day.
8 19 A limited registration is valid for one year and may be
8 20 renewed. A PEO seeking limited registration under this
8 21 subsection shall provide the department with information and
8 22 documentation necessary to show that the PEO qualifies for a
8 23 limited registration. Section 95.6, subsection 1, shall not
8 24 apply to applicants for limited registration.
8 25 7. ALTERNATIVE REGISTRATION. The department may by rule
8 26 and regulation provide for the acceptance of an affidavit or
8 27 certification of a bonded, independent, and qualified
8 28 assurance organization that has been approved by the director
8 29 certifying qualifications of a professional employer
8 30 organization in lieu of the requirements of this section and
8 31 section 95.6.
8 32 8. LIST. The department shall maintain a list of
8 33 professional employer organizations registered under this
8 34 chapter.
8 35 9. FORMS. The department may prescribe forms necessary to
9 1 promote the efficient administration of this section.
9 2 10. RECORD CONFIDENTIALITY. All records, reports, and
9 3 other information obtained from a PEO under this chapter,
9 4 except to the extent necessary for the proper administration
9 5 of this chapter by the department, shall be confidential and
9 6 shall not be published or open to public inspection other than
9 7 to public employees in the performance of their public duties.
9 8 Sec. 5. NEW SECTION. 95.5 FEES.
9 9 1. INITIAL REGISTRATION. Upon filing an initial
9 10 registration application under this chapter, a PEO shall pay
9 11 an initial registration fee not to exceed five hundred
9 12 dollars.
9 13 2. RENEWAL. Upon each annual renewal of a registration
9 14 under this chapter, a PEO shall pay a renewal fee not to
9 15 exceed two hundred fifty dollars.
9 16 3. LIMITED REGISTRATION. Each PEO seeking limited
9 17 registration under the terms of this chapter shall pay a fee
9 18 in an amount not to exceed two hundred fifty dollars upon
9 19 initial application for limited registration and upon each
9 20 annual renewal of such limited registration.
9 21 4. ALTERNATIVE REGISTRATION. A PEO seeking alternative
9 22 registration shall pay an initial and annual fee not to exceed
9 23 two hundred fifty dollars.
9 24 5. OTHER FEES. The department shall adopt by rule any
9 25 other fee to be charged under this chapter. Such fees shall
9 26 not exceed those reasonably necessary for the administration
9 27 of the duties of the department under this chapter.
9 28 Sec. 6. NEW SECTION. 95.6 FINANCIAL CAPABILITY.
9 29 Each PEO shall maintain either of the following:
9 30 1. A minimum net worth of fifty thousand dollars as
9 31 reflected in the financial statements submitted to the
9 32 department with the initial registration application and each
9 33 annual renewal.
9 34 2. A bond, securities, or bank letter of credit with a
9 35 minimum value of fifty thousand dollars held by a depository
10 1 designated by the department, securing payment by the PEO of
10 2 all taxes, wages, benefits, or other entitlement due to or
10 3 with respect to covered employees, if the PEO does not make
10 4 such payments when due. Any bond or securities deposited
10 5 under this subsection shall not be included for the purpose of
10 6 calculation of the minimum net worth required by this section.
10 7 Sec. 7. NEW SECTION. 95.7 GENERAL REQUIREMENTS AND
10 8 PROVISIONS.
10 9 1. CONTRACTUAL RELATIONSHIP. Except as specifically
10 10 provided in this chapter, the coemployment relationship
10 11 between the client and the PEO, and between each coemployer
10 12 and each covered employee, shall be governed by the
10 13 professional employer agreement.
10 14 a. Nothing contained in any professional employer
10 15 agreement or this chapter shall be deemed to do any of the
10 16 following:
10 17 (1) Diminish, abolish, or remove rights of covered
10 18 employees as to clients or obligations of such client as to a
10 19 covered employee existing prior to the effective date of a
10 20 professional employer agreement.
10 21 (2) Terminate an employment relationship existing prior to
10 22 the effective date of a professional employer agreement.
10 23 (3) Create any new or additional enforceable right of a
10 24 covered employee against a PEO not specifically allocated to
10 25 such PEO in the professional employer agreement or this
10 26 chapter.
10 27 b. Each professional employer agreement shall include all
10 28 of the following:
10 29 (1) The PEO shall reserve a right of direction and control
10 30 over the covered employees, provided that the client may
10 31 retain the right to exercise such direction and control over
10 32 covered employees as is necessary to conduct the client's
10 33 business, to discharge any fiduciary responsibility which it
10 34 may have, or to comply with any applicable licensure
10 35 requirements.
11 1 (2) The PEO shall have the responsibility to pay agreed-
11 2 upon wages to covered employees; to withhold, collect, report,
11 3 and remit payroll-related and unemployment taxes; and, to the
11 4 extent the PEO has assumed responsibility in the professional
11 5 employer agreement, to make payments for employee benefits for
11 6 covered employees. As used in this subparagraph, "wages" does
11 7 not include any obligation between a client and a covered
11 8 employee for payments beyond or in addition to the covered
11 9 employee's salary, draw, or regular rate of pay, such as
11 10 bonuses, commissions, severance pay, deferred compensation,
11 11 profit sharing or vacation, sick or other paid time-off pay,
11 12 unless the PEO has expressly agreed to assume liability for
11 13 such payments in the professional employer agreement.
11 14 (3) The PEO and the client shall both have a right to
11 15 hire, terminate, and discipline the covered employees.
11 16 (4) The responsibility to obtain workers' compensation
11 17 coverage for covered employees, from a carrier licensed to do
11 18 business in this state and otherwise in compliance with all
11 19 applicable requirements, shall be specifically allocated to
11 20 either the client or the PEO.
11 21 2. ALLOCATION OF RIGHTS, DUTIES, AND OBLIGATIONS. Except
11 22 as specifically provided in this chapter or in the
11 23 professional employer agreement, in each coemployment
11 24 relationship, all of the following shall apply:
11 25 a. The client shall be entitled to exercise all rights and
11 26 shall be obligated to perform all duties and responsibilities
11 27 otherwise applicable to an employer in an employment
11 28 relationship.
11 29 b. The PEO shall be entitled to exercise only those
11 30 rights, and obligated to perform only those duties and
11 31 responsibilities, specifically required by this chapter or set
11 32 forth in the professional employer agreement. The rights,
11 33 duties, and obligations of the PEO as coemployer with respect
11 34 to any covered employee shall be limited to those arising
11 35 pursuant to the professional employer agreement and this
12 1 chapter during the term of coemployment by the PEO of such
12 2 covered employee.
12 3 c. Unless otherwise expressly agreed by the PEO and the
12 4 client in a professional employer agreement, the client
12 5 retains the exclusive right to direct and control the covered
12 6 employees as is necessary to conduct the client's business, to
12 7 discharge any of the client's fiduciary responsibilities, or
12 8 to comply with any licensure requirements applicable to the
12 9 client or to the covered employees.
12 10 3. NOTICE TO COVERED EMPLOYEES. With respect to each
12 11 professional employer agreement entered into by a PEO, such
12 12 PEO shall provide written notice to each covered employee
12 13 affected by such agreement of the general nature of the
12 14 coemployment relationship between and among the PEO, the
12 15 client, and such covered employee. Such notice shall include
12 16 notice to the employees of the client's and the PEO's
12 17 obligations under this section.
12 18 4. LIMITATIONS ON LIABILITY. Except to the extent
12 19 otherwise expressly provided by a professional employer
12 20 agreement, all of the following shall apply:
12 21 a. A client shall be solely responsible for the quality,
12 22 adequacy, or safety of the goods or services produced or sold
12 23 in the client's business.
12 24 b. A client shall be solely responsible for directing,
12 25 supervising, training, and controlling the work of the covered
12 26 employees with respect to the business activities of the
12 27 client and solely responsible for the acts, errors, or
12 28 omissions of the covered employees with regard to such
12 29 activities.
12 30 c. A client shall not be liable for the acts, errors, or
12 31 omissions of a PEO, or of any covered employee of the client
12 32 and a PEO when such covered employee is acting under the
12 33 express direction and control of the PEO.
12 34 d. Nothing in this subsection shall serve to limit any
12 35 contractual liability or obligation specifically provided in a
13 1 professional employer agreement, nor shall this subsection in
13 2 any way limit the liabilities and obligations of any PEO or
13 3 client as defined elsewhere in this chapter.
13 4 e. A covered employee is not, solely as the result of
13 5 being a covered employee of a PEO, an employee of the PEO for
13 6 purposes of general liability insurance, fidelity bonds,
13 7 surety bonds, employer's liability which is not covered by
13 8 workers' compensation, or liquor liability insurance carried
13 9 by the PEO unless the covered employee is included by specific
13 10 reference in the professional employer agreement and
13 11 applicable prearranged employment contract, insurance
13 12 contract, or bond.
13 13 5. SERVICES NOT INSURANCE. A registrant under this
13 14 chapter is not engaged in the sale of insurance by offering,
13 15 marketing, selling, administering, or providing PEO services
13 16 or employee benefit plans for covered employees.
13 17 6. TAXATION. Covered employees whose services are subject
13 18 to sales tax shall be deemed the employees of the client for
13 19 purposes of collecting and levying sales tax on the services
13 20 performed by the covered employee. Nothing contained in this
13 21 chapter shall relieve a client of any sales tax liability with
13 22 respect to its goods or services. Any tax upon professional
13 23 employer services shall be limited to the administrative fee.
13 24 Sec. 8. NEW SECTION. 95.8 BENEFIT PLANS.
13 25 1. A client and a PEO shall each be deemed an employer for
13 26 purposes of sponsoring retirement and welfare benefit plans
13 27 for its covered employees.
13 28 2. A fully insured welfare benefit plan offered to the
13 29 covered employees of a single PEO shall be considered a single
13 30 employer welfare benefit plan and shall not be considered a
13 31 multiple employer welfare arrangement as defined in section 3
13 32 of the federal Employee Retirement Income Security Act of
13 33 1974, 29 U.S.C. } 1002, paragraph 40, and referred to in
13 34 section 507A.4.
13 35 3. If a PEO offers to its covered employees any health
14 1 benefit plan which is not fully insured by an authorized
14 2 insurer, the plan shall do all of the following:
14 3 a. Utilize a third-party administrator licensed to do
14 4 business in this state.
14 5 b. Hold all plan assets, including participant
14 6 contributions, in a trust account.
14 7 c. Provide sound reserves for such plan as determined
14 8 using generally accepted actuarial standards.
14 9 Sec. 9. NEW SECTION. 95.9 WORKERS' COMPENSATION.
14 10 1. The responsibility to obtain workers' compensation
14 11 coverage for covered employees, from a carrier licensed to do
14 12 business in this state and otherwise in compliance with all
14 13 applicable requirements, shall be specifically allocated in
14 14 the professional employer agreement to either the client or
14 15 the PEO. If such responsibility is allocated to the PEO under
14 16 any such agreement, such agreement shall require that the PEO
14 17 maintain and provide to the client, at the termination of the
14 18 agreement if requested by the client, records regarding the
14 19 loss experience related to workers' compensation insurance
14 20 provided to covered employees pursuant to such agreement.
14 21 2. Both the client and the PEO shall be considered the
14 22 employer for the purpose of coverage under the workers'
14 23 compensation laws provided in chapters 85, 85A, and 85B, and
14 24 both the PEO and its client shall be entitled to protection of
14 25 the exclusive remedy provision in section 85.20, irrespective
14 26 of which coemployer obtains such workers' compensation
14 27 coverage.
14 28 Sec. 10. NEW SECTION. 95.10 UNEMPLOYMENT COMPENSATION
14 29 INSURANCE.
14 30 For purposes of the Iowa employment security law in chapter
14 31 96, covered employees of a registered PEO are considered the
14 32 employees of the client. The PEO shall be responsible for the
14 33 payment of contributions, penalties, and interest on wages
14 34 paid by the PEO to its covered employees during the term of
14 35 the applicable professional employer agreement.
15 1 Sec. 11. NEW SECTION. 95.11 SEVERABILITY.
15 2 The provisions of this chapter are severable. If any
15 3 provision of this chapter, or application thereof to any
15 4 person or circumstance, is held invalid, such invalidity shall
15 5 not affect other provisions or applications of this chapter
15 6 which can be given effect without the invalid provision or
15 7 application.
15 8 EXPLANATION
15 9 This bill creates the professional employer organization
15 10 recognition and registration Act in new Code chapter 95. A
15 11 professional employer organization, or "PEO", is required to
15 12 register annually with the department of workforce development
15 13 as provided in the bill. The bill provides requirements for
15 14 the application, renewal, confidentiality, applicable fees,
15 15 and proof of financial capability regarding the registration
15 16 of PEOs.
15 17 The bill provides for the rights, duties, and obligations
15 18 of professional employer organizations doing business in this
15 19 state. The bill provides that the relationship between a PEO
15 20 and its client must be governed by a professional employer
15 21 agreement which must contain information regarding the rights
15 22 of the PEO and the client, allocate certain obligations of the
15 23 PEO and the client, and may not affect rights under collective
15 24 bargaining agreements, licensing requirements, tax credits, or
15 25 other government incentives. The PEO must provide notice to
15 26 each of its employees covered by a professional employer
15 27 agreement of the obligations of the PEO and the client under
15 28 the agreement. The bill allocates liability and limits of
15 29 liability for certain actions and responsibilities of the
15 30 client and the PEO.
15 31 The bill specifies when either the client or PEO or both
15 32 are considered the employer under laws governing taxation,
15 33 retirement and health benefit plans, workers' compensation,
15 34 and unemployment insurance. The bill provides definitions of
15 35 terms used in the chapter and that the provisions of the
16 1 chapter are to be considered severable if any portion is held
16 2 invalid.
16 3 LSB 6660SC 80
16 4 kk/cf/24
Text: SSB03146 Text: SSB03148 Text: SSB03100 - SSB03199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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