23-570. Liability

A. Unless otherwise expressly provided by a professional employer agreement or otherwise required by law, a client:

1. Shall be solely responsible for:

(a) The quality, adequacy and safety of the goods or services produced or sold in the client's business.

(b) Directing, supervising, training and controlling the work of covered employees with respect to the business activities of the client.

(c) The acts, errors or omissions of covered employees when directing, supervising, training and controlling the covered employees' work.

2. Shall not be liable for the acts, errors or omissions of a professional employer organization or any covered employee of the client and the professional employer organization if the covered employee is acting under the express direction and control of the professional employer organization.

B. This section does not limit any contractual liability or obligation required under a professional employer agreement or limit the liabilities and obligations of any professional employer organization or client required by this article.

C. For the purposes of general liability insurance, fidelity bonds, surety bonds, employer's liability that is not covered under workers' compensation and liquor liability insurance that is carried by the professional employer organization, a covered employee is not an employee of the professional employer organization unless the covered employee is specifically included by reference in the professional employer agreement and applicable prearranged employment contract, insurance contract or bond.