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Terms Used In Utah Code 31A-40-203

  • Client: means a person who enters into a professional employer agreement with a professional employer organization. See Utah Code 31A-40-102
  • Covered employee: means an individual who has a coemployment relationship with a client and a professional employer organization if the conditions of Section 31A-40-203 are met. See Utah Code 31A-40-102
  • Director: means a member of the board of directors of a corporation. See Utah Code 31A-1-301
  • Employee: means :
         (57)(a) an individual employed by an employer; or
         (57)(b) an individual who meets the requirements of Subsection (55)(b). See Utah Code 31A-1-301
  • Individual: means a natural person. See Utah Code 31A-1-301
  • Professional employer agreement: means a written contract by and between a client and a professional employer organization that provides for:
         (15)(a) the coemployment of a covered employee;
         (15)(b) with respect to a covered employee, the allocation of a right or obligation of an employer between:
              (15)(b)(i) the client; and
              (15)(b)(ii) the professional employer organization; and
         (15)(c) the assumption of the obligations imposed by this chapter by:
              (15)(c)(i) the client; or
              (15)(c)(ii) the professional employer organization. See Utah Code 31A-40-102
  • professional employer organization: means a person engaged in the business of providing a professional employer service. See Utah Code 31A-40-102
     (1)(a) An individual is a covered employee of a professional employer organization if the individual is coemployed pursuant to a professional employer agreement subject to this chapter.
     (1)(b) An individual who is a covered employee under a professional employer agreement is a covered employee, whether or not the professional employer organization provides the notice required by Subsection 31A-40-202(3), the earlier of the day on which:

          (1)(b)(i) the employee is first compensated by the professional employer organization; or
          (1)(b)(ii) the client notifies the professional employer organization of a new hire.
(2) An individual who is an officer, director, shareholder, partner, or manager of a client is a covered employee:

     (2)(a) to the extent that the client and the professional employer organization expressly agree in the professional employer agreement that the individual is a covered employee;
     (2)(b) if the conditions of Subsection (1) are met; and
     (2)(c) if the individual acts as an operational manager or performs day-to-day an operational service for the client.