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
License: includes a certificate of authority issued to an insurer. 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:
professional employer organization: means a person engaged in the business of providing a professional employer service. See Utah Code 31A-40-102
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
a state law similar to a federal law described in this Subsection (1)(b).
(2)
(a)
A professional employer agreement may not:
(i)
diminish, abolish, or remove a right of a covered employee to a client or an obligation of the client to a covered employee that exists on or before the day on which the professional employer agreement takes effect;
(ii)
affect, modify, or amend a contractual relationship or restrictive covenant between a covered employee and a client in effect on the day on which the professional employer agreement takes effect; or
(iii)
prohibit or amend a contractual relationship or restrictive covenant that is entered into between a covered employee and a client after the day on which the professional employer agreement takes effect.
(b)
A professional employer organization is not responsible or liable in connection with, or arising out of, a contractual relationship or restrictive covenant described in Subsection (2)(a) unless the professional employer organization specifically agrees to be responsible in writing.
(3)
This chapter does not and a professional employer agreement may not create an enforceable right of a covered employee against a professional employer organization that is not specifically provided by the professional employer agreement or this chapter.
(4)
(a)
Except as provided in this Subsection (4), this chapter does not and a professional employer agreement may not affect, modify, or amend a state, local, or federal license, registration, or certification requirement applicable to a client or a covered employee.
(b)
If a covered employee is required by federal or state law to be licensed, registered, or certified, the covered employee is considered to be solely an employee of the client for purposes of the license, registration, or certification requirement.
(c)
A professional employer organization is not considered to engage in an activity that is subject to licensing, registration, or certification by a local, state, or federal government or is regulated by a local, state, or federal government solely by entering into or maintaining a coemployment relationship with a covered employee who is:
(i)
subject to licensing, registration, or certification; or
(ii)
regulated by the local, state, or federal government.
(d)
A client has the sole right to direct or control a professional, licensed, registered, or certified activity of:
(i)
a covered employee; and
(ii)
the client’s business.
(e)
Notwithstanding this chapter, a covered employee and client remain subject to regulation by the local, state, or federal government responsible for licensing, registration, or certification of the covered employee or client.
