(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 :
         (4)(a) a client; or
         (4)(b) a professional employer organization. See Utah Code 31A-40-102
  • Coemployment relationship: means a relationship:
         (5)(a) that is intended to be ongoing rather than a temporary or project specific relationship; and
         (5)(b) wherein the rights and obligations of an employer that arise out of an employment relationship are allocated between coemployers pursuant to:
              (5)(b)(i) a professional employer agreement; or
              (5)(b)(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 :
         (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
  • 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:
         (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) a professional employer organization:

          (1)(a)(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
          (1)(a)(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
     (1)(b) a client:

          (1)(b)(i) may enforce a right of an employer:

               (1)(b)(i)(A) allocated to the client in the professional employer agreement or this chapter; or
               (1)(b)(i)(B) not specifically allocated to the professional employer organization under the professional employer agreement or this chapter; and
          (1)(b)(ii) is subject to an obligation of an employer:

               (1)(b)(ii)(A) allocated to the client by the professional employer agreement or this chapter; or
               (1)(b)(ii)(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.