Effective 28 Aug 2018

285.705. Definitions. — As used in sections 285.700 to 285.750, the following terms mean:

(1) "Client", any person who enters into a professional employer agreement with a PEO;

(2) "Coemployer", either a PEO or a client;

(3) "Coemployment relationship", a relationship that is intended to be an ongoing relationship rather than a temporary or project-specific relationship, wherein the rights, duties, and obligations of an employer that arise out of an employment relationship have been allocated between coemployers pursuant to a professional employer agreement and sections 285.700 to 285.750. In such a coemployment relationship:

(a) The PEO is entitled to enforce only such employer rights and is subject to only those obligations specifically allocated to the PEO by the professional employer agreement or sections 285.700 to 285.750;

(b) The client is entitled to enforce those rights and obligated to provide and perform those employer obligations allocated to such client by the professional employer agreement and sections 285.700 to 285.750; and

(c) The client is entitled to enforce any right and obligated to perform any obligation of an employer not specifically allocated to the PEO by the professional employer agreement or sections 285.700 to 285.750;

(4) "Covered employee", an individual having a coemployment relationship with a PEO and a client who meets the following criteria:

(a) The individual has received written notice of coemployment with the PEO; and

(b) The individual's coemployment relationship is pursuant to a professional employer agreement subject to sections 285.700 to 285.750.

­­Individuals who are officers, directors, shareholders, partners, and managers of the client will be covered employees, except to the extent the PEO and the client have expressly agreed in the professional employer agreement that such individuals would not be covered employees, provided such individuals meet the criteria of this subdivision and act as operational managers or perform day-to-day operational services for the client;

(5) "PEO group", any two or more PEOs that are majority owned or commonly controlled by the same entity, parent, or controlling person;

(6) "Person", any individual, partnership, corporation, limited liability company, association, or any other form of legally recognized entity;

(7) "Professional employer agreement", a written contract by and between a client and a PEO that provides:

(a) For the coemployment of covered employees;

(b) For the allocation of employer rights and obligations between the client and the PEO with respect to the covered employees; and

(c) That the PEO and the client assume the responsibilities required under sections 285.700 to 285.750;

(8) "Professional employer organization" or "PEO", any person engaged in the business of providing professional employer services. A person engaged in the business of providing professional employer services shall be subject to registration and regulation under sections 285.700 to 285.750 regardless of its use of the term or conducting business as a professional employer organization, staff leasing company, registered staff leasing company, employee leasing company, administrative employer, or any other name. The following shall not be deemed to be professional employer organizations or the providing of professional employment services for the purposes of sections 285.700 to 285.750:

(a) Arrangements wherein a person, whose principal business activity is not entering into professional employer arrangements and does not hold itself out as a PEO, shares employees with a commonly owned company within the meaning of Section 414(b) and (c) of the Internal Revenue Code of 1986, as amended;

(b) Independent contractor arrangements by which a person assumes responsibility for the product produced or service performed by such person or his or her agents and retains and exercises primary direction and control over the work performed by the individuals whose services are supplied under such arrangements; and

(c) Providing temporary help services;

(9) "Professional employer services", the service of entering into coemployment relationships under sections 285.700 to 285.750 in which all or a majority of the employees providing services to a client or to a division or work unit of a client are covered employees;

(10) "Registrant", a PEO registered under sections 285.700 to 285.750;

(11) "Temporary help services", services consisting of a person:

(a) Recruiting and hiring its own employees;

(b) Finding other organizations that need the services of those employees;

(c) Assigning those employees to perform work at or services for the other organizations to support or supplement the other organizations' workforces, or to provide assistance in special work situations including, but not limited to, employee absences, skill shortages, seasonal workloads, or to perform special assignments or projects; and

(d) Customarily attempting to reassign the employees to other organizations when they finish each assignment.

­­--------

(L. 2018 H.B. 1719)