A person who engages only in the following activities shall not be deemed a professional employer organization for purposes of this chapter and shall be exempt from the requirements of this chapter:

(1) Arrangements wherein a person, whose principal business activity is not entering into professional employer arrangements and who does not hold the person’s self out as a professional employer organization, shares employees with a commonly-owned company within the meaning of [section] 414(b) and (c) of the Internal Revenue Code;
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Terms Used In Hawaii Revised Statutes 373L-4

  • Person: means a natural or legal person. See Hawaii Revised Statutes 373L-1
  • Professional employer organization: means any person that is a party to a professional employer agreement with a client company and whose covered employees perform services on a long-term, rather than temporary or project-specific basis. See Hawaii Revised Statutes 373L-1
  • Temporary help services: means an arrangement by which a person recruits and hires the person's own employees and:

    (1) Finds other organizations that need the services of those employees;

    (2) Assigns those employees to perform work or services for other organizations to support or supplement the other organizations' workforces or to provide assistance in special work situations, including employee absences, skill shortages, seasonal workloads, or special assignments or projects; and

    (3) Customarily attempts to reassign the employees to successive placements with other organizations at the end of each assignment. See Hawaii Revised Statutes 373L-1

(2) Independent contractor arrangements by which a person assumes responsibility for the product produced or service performed by the person or the person’s agents and retains and exercises primary direction and control over the work performed by the individuals whose services are supplied under those arrangements; or
(3) The providing of temporary help services.

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