(A) An employer subject to the provisions of Title 42 who contracts with a professional employer organization or professional employer organization group continues to be subject to the provisions of Title 42 and shall comply with Title 42 with regard to procuring and maintaining workers’ compensation insurance for nonassigned employees. For purposes of construction, the term "employees" in § 42-1-360 includes both assigned and nonassigned employees.

(B) A client company who refuses or neglects to provide workers’ compensation insurance coverage to its nonassigned employees must be fined one thousand dollars a day for each nonassigned employee for each day the client company refuses or neglects to provide workers’ compensation insurance. In this event, the client company is liable during the continuance of the refusal or neglect to an employee either for compensation under Title 42 or in an action at law instituted by the employee or his personal representative against the client company to recover damages for personal injury or death by accident. In the action at law, the client company may not be permitted to defend upon any of the grounds mentioned in § 42-1-510 and § 42-1-540 does not apply. The fine provided in this section must be assessed by the Workers’ Compensation Commission in an open hearing with the right of review and appeal as in other cases.