(1)  Notwithstanding the other provisions of this chapter, for purposes of determining eligibility for an employment related economic incentive, a covered employee is considered only an employee of the client.

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Terms Used In Utah Code 31A-40-211

  • Application: means a document:
(a) 
(i) completed by an applicant to provide information about the risk to be insured; and
(ii) that contains information that is used by the insurer to evaluate risk and decide whether to:
(A) insure the risk under:
(I) the coverage as originally offered; or
(II) a modification of the coverage as originally offered; or
(B) decline to insure the risk; or
(b) used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301
  • Client: means a person who enters into a professional employer agreement with a professional employer organization. See Utah Code 31A-40-102
  • Contract: A legal written agreement that becomes binding when signed.
  • 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
  • Employment related economic incentive: means :
    (a) 
    (i) a credit against or exemption from taxes due the state or a political subdivision of the state; or
    (ii) an economic inducement, including a loan or a grant; and
    (b) if the credit, exemption, or economic inducement described in Subsection (8)(a):
    (i) is offered by the state or a political subdivision of the state; and
    (ii) has an eligibility requirement that relates in whole or in part to employment including:
    (A) the number of employees; or
    (B) the nature of the employment. See Utah Code 31A-40-102
  • Order: means an order of the commissioner. See Utah Code 31A-1-301
  • 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
  • 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
  • (2) 

    (a)  If eligibility for an employment related economic incentive relates to a covered employee, the client is entitled to the employment related economic incentive if the client is otherwise eligible for the employment related economic incentive.

    (b)  A professional employer organization is not eligible for an employment related economic incentive described in Subsection (2)(a).

    (3)  If eligibility for or the amount of an employment related economic incentive is determined on the basis of the number of employees, a client is treated as employing only:

    (a)  a covered employee coemployed by the client under the professional employer agreement; or

    (b)  an employee solely employed by the client.

    (4)  Subject to a confidentiality provision in federal or state law, a professional employer organization shall provide employment information:

    (a)  upon the request of:

    (i)  the client; or

    (ii)  the governmental entity administering an employment related economic incentive; and

    (b)  reasonably required for:

    (i)  administration of an employment related economic incentive; or

    (ii)  necessary to support any of the following by a client seeking an employment related economic incentive:

    (A)  a request;

    (B)  a claim;

    (C)  an application; or

    (D)  another action.

    (5)  With respect to a bid, contract, purchase order, or agreement entered into with the state or a political subdivision of the state, the fact that the client enters into a professional employer agreement does not affect the client’s status or certification as a:

    (a)  small business;

    (b)  minority-owned business;

    (c)  disadvantaged business;

    (d)  woman-owned business; or

    (e)  historically underutilized business.

    Enacted by Chapter 318, 2008 General Session