Utah Code 31A-40-201. Enforceable rights and obligations

(1)

In a coemployment relationship under a professional employer agreement:

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Terms Used In Utah Code 31A-40-201

Client: means a person who enters into a professional employer agreement with a professional employer organization. See Utah Code 31A-40-102
Coemployer: means :

(a)	a client; or

(b)

a professional employer organization. See Utah Code 31A-40-102

Coemployment relationship: means a relationship:

(a)	that is intended to be ongoing rather than a temporary or project specific relationship; and

(b)

wherein the rights and obligations of an employer that arise out of an employment relationship are allocated between coemployers pursuant to:

(i)	a professional employer agreement; or

(ii)

this chapter. 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

Employee: means :

(a)	an individual employed by an employer; or

(b)

an individual who meets the requirements of Subsection (53)(b). See Utah Code 31A-1-301

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.

Professional employer agreement: means a written contract by and between a client and a professional employer organization that provides for:

(a)	the coemployment of a covered employee;

(b)

with respect to a covered employee, the allocation of a right or obligation of an employer between:

(i)	the client; and

(ii)	the professional employer organization; and

(c)

the assumption of the obligations imposed by this chapter by:

(i)	the client; or

(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

(a)

a professional employer organization:

(i)	may only enforce a right of an employer that is specifically allocated to the professional employer organization under the professional employer agreement or this chapter; and

(ii)	is subject only to an obligation of an employer specifically allocated to the professional employer organization by the professional employer agreement or this chapter; and

(b)

a client:

(i)

may enforce a right of an employer:

(A)	allocated to the client in the professional employer agreement or this chapter; or

(B)	not specifically allocated to the professional employer organization under the professional employer agreement or this chapter; and

(ii)

is subject to an obligation of an employer:

(A)	allocated to the client by the professional employer agreement or this chapter; or

(B)	not specifically allocated to a professional employer organization by the professional employer agreement or this chapter.

(2)

A right or obligation of a professional employer organization as a coemployer of a covered employee is limited to a right or obligation arising pursuant to the professional employer agreement and this chapter during the term of coemployment of the covered employee by the professional employer organization.

Enacted by Chapter 318, 2008 General Session

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