Terms Used In Rhode Island General Laws > Chapter 5-75 - Professional Employer Organizations Act of 2004

• Administrative fee: means the fee charged to a client by a professional employer organization for professional employer services. See Rhode Island General Laws 5-75-2
• Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Client: means any person who enters into a professional employer agreement with a PEO. See Rhode Island General Laws 5-75-2
• Co-employer: means either a PEO or a client. See Rhode Island General Laws 5-75-2
• Co-employment relationship: shall mean :

  (1)  As between co-employers, a relationship whereby the rights, duties, and obligations of an employer that arise out of an employment relationship have been allocated between co-employers pursuant to a professional employer agreement and this chapter and that is intended to be an ongoing relationship, rather than a temporary or project-specific relationship;

  (2)  As between each PEO and a covered employee as to which a professional employer agreement applies, an employment relationship whereby such PEO is entitled to enforce those rights, and obligated to perform those duties and obligations, allocated to such PEO by the professional employer agreement and this chapter;

  (3)  As between each client and a covered employee to which a professional employer agreement applies, an employment relationship whereby such client is entitled to enforce those rights, and obligated to provide and perform those employer obligations allocated to such client by the professional employer agreement and this chapter, and whereby such client is responsible for any employer right or obligation not otherwise allocated by the professional employer agreement or this chapter; and

  (4)  As to rights enforceable by an employee under state law, covered employees shall be entitled to enforce against the PEO those rights: (i) Allocated to such PEO by the professional employer agreement and this chapter; or (ii) Shared by the PEO and the client under the professional employer agreement and this chapter. See Rhode Island General Laws 5-75-2

• Contract: A legal written agreement that becomes binding when signed.
• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• Covered employee: means an individual having a co-employment relationship with a PEO and a client who meets all of the following criteria: (1) The individual has executed an employment agreement with the PEO; (2) The individual is a party to a co-employment relationship with a PEO and a client; and (3) The individual's co-employment relationship is pursuant to a professional employer agreement subject to this chapter. See Rhode Island General Laws 5-75-2
• Department: means the department of administration, division of taxation. See Rhode Island General Laws 5-75-2
• Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Fiduciary: A trustee, executor, or administrator.
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• PEO: means any person engaged in the business of providing professional employer services. See Rhode Island General Laws 5-75-2
• Person: means any individual, partnership, corporation, limited-liability company, association, or any other form of legally recognized entity. See Rhode Island General Laws 5-75-2
• Professional employer agreement: means a written contract by and between a client and a PEO that provides:

  (1)  For the co-employment of covered employees;

  (2)  For the allocation and sharing between the client and the PEO of employer responsibilities (including hiring, firing, and disciplining) with respect to the covered employees; and

  (3)  That the PEO and the client assume the responsibilities required by this chapter. See Rhode Island General Laws 5-75-2

• Professional employer services: shall mean the service of entering into co-employment relationships under this chapter in which all or a majority of the employees providing services to a client or to a division or work unit of the client are covered employees. See Rhode Island General Laws 5-75-2
• Registrant: means a PEO registered under this chapter. See Rhode Island General Laws 5-75-2
• Temporary help services: means a service consisting of a person:

  (1)  Recruiting and hiring its own employees;

  (2)  Finding other organizations that need the services of those employees;

  (3)  Assigning those employees to perform work at, or services for, the other organizations to support or supplement the other organizations' workforces, or to provide assistance in special work situations such as, but not limited to, employee absences, skill shortages, seasonal workloads, or to perform special assignments or projects; and

  (4)  Customarily attempting to reassign the employees to other organizations when they finish each assignment. See Rhode Island General Laws 5-75-2

• Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. ^{Source: OCC}