Georgia 2023-2024 Regular Session

Georgia House Bill HB1515 Compare Versions

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11 24 LC 52 0566
22 House Bill 1515
33 By: Representatives Taylor of the 173
44 rd
55 and Cheokas of the 151
66 st
77
88 A BILL TO BE ENTITLED
99 AN ACT
1010 To amend Titles 33 and 34 of the Official Code of Georgia Annotated, relating to insurance
1111 1
1212 and labor and industrial relations, respectively, so as to provide for the registration and2
1313 regulation of professional employer organizations; to provide for certain regulatory powers,3
1414 duties, and authority of the Commissioner of Insurance and the Commissioner of Labor over4
1515 professional employer organizations; to exclude such organizations from certain definitions5
1616 related to insurance; to provide for definitions; to provide for the registration of such6
1717 organizations with the Commissioner of Insurance; to provide for certain fees; to provide for7
1818 the restriction of the use of certain terms; to provide for complaints; to provide for rules and8
1919 regulations; to provide for a co-employment relationship; to provide for no effect on existing9
2020 collective bargaining agreements or other contracts; to provide for legislative construction;10
2121 to clarify rights, duties, and obligations of clients and professional employer organizations;11
2222 to clarify employer and employee statuses; to provide for the disciplinary actions; to provide12
2323 for the applicability of Chapter 8 of Title 34, the "Employment Security Law"; to repeal13
2424 obsolete provisions; to provide for the posting of a surety bond; to provide for conforming14
2525 changes; to provide for a short title; to provide for related matters; to provide an effective15
2626 date; to repeal conflicting laws; and for other purposes.16
2727 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:17
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3030 PART I
3131 18
3232 SECTION 1-1.19
3333 Title 33 of the Official Code of Georgia Annotated, relating to insurance, is amended in Code20
3434 Section 33-2-11, relating to examination of insurers and organizations and effect of insurer's21
3535 change of domicile from Georgia, by revising subsection (c) as follows:22
3636 "(c) The Commissioner shall in like manner examine each insurer or rating organization23
3737 applying for authority to do business in this state or any professional employer organization
3838 24
3939 registering with the department to do business in this state."25
4040 SECTION 1-2.26
4141 Said title is further amended in Code Section 33-23-1, relating to definitions relative to27
4242 agents, agencies, subagents, counselors, and adjusters, by revising subsection (b) as follows:28
4343 "(b) The definitions of agent, subagent, and counselor in subsection (a) of this Code29
4444 section shall not be deemed to include:30
4545 (1) An attorney at law admitted to practice in this state, when handling the collections31
4646 of premiums or advising clients as to insurance as a function incidental to the practice of32
4747 law or who adjusts losses which are incidental to the practice of his or her profession;33
4848 (2) Any representative of ocean marine insurers;34
4949 (3) Any representative of farmers' mutual fire insurance companies as defined in35
5050 Chapter 16 of this title;36
5151 (4) A salaried employee of a credit or character reporting firm or agency not engaged in37
5252 the insurance business who may, however, report to an insurer;38
5353 (5) A person acting for or as a collection agency;39
5454 (6) A person who makes the salary deductions of premiums for employees or, under a40
5555 group insurance plan, a person who serves the master policyholder of group insurance in41
5656 administering the details of such insurance for the employees or debtors of the master42
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5959 policyholder or of a firm or corporation by which the person is employed and who does
6060 43
6161 not receive insurance commissions for such service; provided, further, that an44
6262 administration fee not exceeding 5 percent of the premiums collected paid by the insurer45
6363 to the administration office shall not be construed to be an insurance commission;46
6464 (7) Persons exempted from licensure as provided in subsection (h) of Code47
6565 Section 33-23-4; or
6666 48
6767 (8) An individual who collects claim information from, or furnishes claim information49
6868 to, insureds or claimants, who conducts data entry, and who enters data into an automated50
6969 claims adjudication system, provided that the individual is an employee of a licensed51
7070 independent adjuster or its affiliate where no more than 25 such persons are under the52
7171 supervision of one licensed independent adjustor or licensed agent; or53
7272 (9) A professional employer organization to the extent that such organization collects54
7373 information; obtains, offers, or provides life, accident and sickness, disability income,55
7474 workers' compensation, and other types of insurance coverage; establishes retirement56
7575 plans; and has or obtains, offers, or provides other types of employee benefits and57
7676 discusses such benefits."58
7777 PART II59
7878 SECTION 2-1.60
7979 This Act shall be known and may be cited as the "Better Small Business Employee Benefits61
8080 Act."62
8181 SECTION 2-2.63
8282 Title 34 of the Official Code of Georgia Annotated, relating to labor and industrial relations,64
8383 is amended by amending Chapter 11, which is reserved, as follows:65
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8686 "CHAPTER 11
8787 66
8888 34-11-1.67
8989 As used in this chapter:
9090 68
9191 (1) 'Client' means any person who enters into a professional employer agreement with69
9292 a professional employer organization.70
9393 (2) 'Co-employer' means either a professional employer organization or a client.71
9494 (3) 'Co-employment relationship' means an arrangement wherein the rights, duties, and72
9595 obligations of an employer which arise out of an employment arrangement are allocated73
9696 between the parties to such arrangements.74
9797 (4) 'Commissioner' means the Commissioner of Labor.75
9898 (5) 'Covered employee' means an individual working under a co-employment76
9999 relationship between a PEO and a client pursuant to a professional employer agreement77
100100 subject to this chapter.78
101101 (6) 'Department' means the Department of Labor.79
102102 (7) 'Limited registrant' means a PEO that:80
103103 (A) Is domiciled and registered or licensed in another state;81
104104 (B) Has 50 or fewer covered employees; and82
105105 (C) Maintains no principal place of business in this state.83
106106 (8) 'PEO group' means two or more PEO entities that are majority owned or commonly84
107107 controlled by the same entity or parent company.85
108108 (9) 'Professional employer agreement' means a contract between a client and a PEO86
109109 which provides:87
110110 (A) For the co-employment of covered employees;88
111111 (B) An express allocation of the client's rights and obligations as an employer to the89
112112 co-employee and allocation of such rights and obligations to the co-employee assigned90
113113 to the PEO; and91
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116116 (C) That the PEO and the client assume the responsibilities required by this chapter.92
117117 (10) 'Professional employer organization' or 'PEO' means any person engaged in the93
118118 business of providing professional employer services.94
119119 (11) 'Professional employer services' means the service of entering into co-employment95
120120 relationships in which all or a majority of the employees providing services to a client are96
121121 covered employees pursuant to a professional employer agreement.97
122122 (12) 'Registrant' means a PEO registered with the Department of Insurance pursuant to98
123123 Code Section 34-11-2.99
124124 34-11-2.100
125125 (a) As used in this Code section, the term:101
126126 (1) 'Commissioner' means the Commissioner of Insurance.102
127127 (2) 'Department' means the Department of Insurance.103
128128 (b) Beginning July 1, 2026, except as otherwise provided in this chapter, no person shall104
129129 provide, advertise, or otherwise hold itself out as providing professional employer services105
130130 in this state, unless such person is registered with the department in accordance with this106
131131 chapter. The department shall begin accepting applications for registration no later than107
132132 January 2, 2025. Only a firm, corporation, professional corporation, partnership,108
133133 association, or other entity may apply with the department for registration to provide109
134134 professional employer services in this state.110
135135 (c) Each applicant for registration shall provide the department with the following:111
136136 (1) The name or names under which the PEO conducts business;112
137137 (2) The address of the principal place of business of the PEO;113
138138 (3) The address of each office it maintains in this state;114
139139 (4) The PEO's taxpayer or employer identification number;115
140140 (5) A list by jurisdiction of each name under which the PEO has operated in the116
141141 preceding two years;117
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144144 (6) A statement of ownership, which shall include the name and address of any person118
145145 that, individually or in a business relationship with one or more other persons, owns or119
146146 controls at least 25 percent or more of the equity interests of the PEO;120
147147 (7) A statement of management, which shall include the name of any person who serves121
148148 as chief executive officer, president, or secretary or otherwise has been empowered with122
149149 the authority to act as an officer of the PEO; and123
150150 (8) A financial statement, prepared in accordance with generally accepted accounting124
151151 principles by an independent, certified public accountant licensed to practice in the125
152152 jurisdiction in which such accountant is located. A PEO group may submit combined or126
153153 consolidated financial statements to meet the requirements of this paragraph. A PEO that127
154154 has not had sufficient operating history to be able to provide such records shall meet the128
155155 financial requirements set forth in this Code section and present financial statements as129
156156 requested by the department.130
157157 (d) In the event a PEO not registered in this state becomes knowledgeable that a client has131
158158 covered employees in this state, the PEO shall:132
159159 (1) Notify the department within 30 days of such knowledge and file a limited133
160160 registration application under subsection (g) of this Code section; or134
161161 (2) If the number of covered employees exceeds 50, the department may allow for a135
162162 temporary registration while registration applications are being prepared and evaluated. 136
163163 In its evaluation for such temporary registration, the department may consider whether137
164164 the PEO is currently registered or licensed in another state and if temporary registration138
165165 is in the best interests of the covered employees based in this state.139
166166 (e) A registrant shall renew its registration annually by making a filing in a form140
167167 determined by the department, which shall provide for the registrants to notify the141
168168 department of any changes in the information provided in its most recent registration filing. 142
169169 A registrant's existing registration shall remain in effect while such renewal application is143
170170 under review.144
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173173 (f) A PEO group applying for renewal may satisfy the registration and financial reporting145
174174 requirements of this chapter by filing combined or consolidated filings, provided that each146
175175 member of the PEO group attests to be responsible for meeting the requirements set forth147
176176 in this chapter on behalf of each member of the group.148
177177 (g) A PEO shall be eligible to be a limited registrant if such PEO submits a request for149
178178 limited registration on a form provided by the department and the department finds that150
179179 such PEO is domiciled outside this state and is licensed or registered as a professional151
180180 employer organization in another state. A limited registrant shall not maintain an office152
181181 in this state or have more than 50 covered employees employed or domiciled in this state153
182182 at any time. Limited registrants shall be registered for a maximum period of one year and154
183183 may be considered for renewal as a limited registrant as set forth by the department.155
184184 (h) The department shall maintain a directory of professional employer organizations156
185185 registered under this chapter and shall make such directory readily available on the157
186186 department's public website and by any other means deemed appropriate by the department.158
187187 (i) The department shall, to the extent practical, accept electronic filings, including, but not159
188188 limited to, applications, documents, reports, and other filings required under this chapter. 160
189189 The department may provide for the acceptance of electronic filings and other assurance161
190190 by an independent and qualified assurance organization approved by the department that162
191191 provides satisfactory assurance of compliance and security. The department may permit163
192192 a PEO to be authorized to agree that such an approved assurance organization may act on164
193193 the PEO's behalf in complying with the registration requirements of this chapter.165
194194 (j) All records, reports, and other information obtained from or on behalf of a PEO, except166
195195 to the minimum extent necessary for the proper administration by the department or to167
196196 comply with the provisions of Article 4 of Chapter 18 of Title 50 shall be confidential and168
197197 shall not be published or open to public inspection other than to public employees in the169
198198 performance of their public duties.170
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201201 (k) The Commissioner of Insurance shall adopt such and regulations as are reasonable and171
202202 necessary to effectuate the provisions of this Code section.172
203203 34-11-3.173
204204 (a) The Commissioner of Insurance shall establish by rules and regulations the amount of174
205205 the fees for the initial and renewal registration of a PEO, initial and renewal registration of175
206206 a PEO group, and limited and temporary registration of a PEO or a PEO group.176
207207 (b) The amount of the fees established by the Commissioner of Insurance shall be limited177
208208 as follows:178
209209 (1) The initial registration fee of a PEO shall not exceed $500.00, and the renewal179
210210 registration fee of a PEO shall not exceed $250.00;180
211211 (2) The initial registration fee of a PEO group shall not exceed $500.00 per group181
212212 member, and the renewal registration fee of a PEO group shall not exceed $250.00 per182
213213 group member;183
214214 (3) The limited registration fee of a PEO shall not exceed $250.00, and the limited184
215215 registration fee of a PEO group shall not exceed $250.00 per group member;185
216216 (4) The temporary registration fee of a PEO shall not exceed $500.00, and the temporary186
217217 registration fee of a PEO group shall not exceed $500.00 per group member; and187
218218 (5) Such fees shall not exceed the amount reasonably necessary for the registration and188
219219 regulation of professional employer organizations.189
220220 34-11-4.190
221221 (a) Any applicant, either for an initial registration or a renewal, shall submit financial191
222222 statements, in accordance with paragraph (8) of subsection (c) of Code Section 34-11-2,192
223223 that prove that the applicant has positive working capital.193
224224 (b) The Commissioner of Insurance shall adopt such and regulations as are reasonable and194
225225 necessary to effectuate the provisions of this Code section.195
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228228 34-11-5.196
229229 (a) It shall be unlawful for any person to use the term 'PEO,' 'professional employer197
230230 organization,' 'staff leasing,' 'staff leasing company,' 'registered staff leasing company,'198
231231 'employee leasing,' 'employee leasing company,' 'administrative employer,' or any other199
232232 title deemed by the Department of Insurance to be representative of professional employer200
233233 services without being registered as a PEO with the Department of Insurance.201
234234 (b) It shall be unlawful for any person to knowingly provide false or otherwise fraudulent202
235235 information to the Department of Insurance in support of any application for registration,203
236236 renewal, or in any report required under this chapter.204
237237 (c) Any complaints regarding a professional employer organization shall be filed with the205
238238 Department of Insurance, and any complaints filed with the Department of Labor shall be206
239239 forwarded to the Department of Insurance; provided, however that the Department of207
240240 Insurance and the Department of Labor shall cooperate in the documentation, investigation,208
241241 and resolution of any complaints received and in any disciplinary actions.209
242242 (d) The Commissioner of Insurance shall adopt such and regulations as are reasonable and210
243243 necessary to effectuate the provisions of this Code section.211
244244 34-11-6.212
245245 (a) In a co-employment relationship:213
246246 (1) The client is entitled to enforce those rights, and obligated to provide and perform214
247247 those employer obligations, allocated to such client by the professional employer215
248248 agreement and this chapter;216
249249 (2) The client is entitled to enforce any right and obligated to perform any obligation of217
250250 an employer not specifically allocated to the PEO in the professional employer agreement218
251251 or this chapter; and219
252252 (3) For purposes of any law of this state where employer coverage and employee220
253253 eligibility is determined based on the number of covered employees employed by the221
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256256 employer, the client as an employer shall only be required to count covered employees222
257257 of the client, and not employees of other clients of the PEO or of the PEO itself.223
258258 (b) Except as specifically provided in this chapter, the co-employment relationship224
259259 between the client and the PEO, and between each co-employer and each covered225
260260 employee, shall be governed by a professional employer agreement. Each professional226
261261 employer agreement shall provide for the following:227
262262 (1) The allocation of rights, duties, and obligations of each co-employer for each228
263263 co-employee;229
264264 (2) The allocation of rights, duties, and obligations to the PEO regarding payroll230
265265 processing. The PEO shall pay wages to covered employees; shall withhold, collect, and231
266266 remit payroll related and unemployment taxes; and may make payments for employee232
267267 benefits. This shall not be interpreted as to include any obligation between a client and233
268268 a covered employee for payments beyond or in addition to the covered employee's salary,234
269269 draw, or regular rate of pay, including, but not limited to, severance pay, deferred235
270270 compensation, profit sharing, vacation, sick, or other paid time off pay, unless the PEO236
271271 has expressly agreed to assume liability for such payments in the professional employer237
272272 agreement;238
273273 (3) The right to hire, discipline, and terminate a covered employee shall be allocated to239
274274 both the client and the PEO; provided, however, that the PEO's right shall be limited to240
275275 such employment decisions as may be necessary to fulfill the PEO's responsibilities under241
276276 this chapter and a valid professional employer agreement; and242
277277 (4) The responsibility to purchase and obtain adequate workers' compensation coverage243
278278 for covered employees shall be specifically allocated to either the client or the PEO in the244
279279 professional employer agreement.245
280280 (c) A PEO shall provide written notice to each covered employee whose co-employment246
281281 is made effective by a professional employer agreement of the general nature of the247
282282 co-employment relationship between and among the PEO, the client, and such covered248
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285285 employee. Such notice shall be delivered as designated within the professional employer249
286286 agreement but shall not exceed 60 days.250
287287 (d) A PEO registered with the Department of Insurance and in compliance with this251
288288 chapter shall not be required to obtain a license from the Commissioner of Insurance under252
289289 Chapter 23 of Title 33 unless such PEO is selling, soliciting, or negotiating insurance253
290290 outside of the exclusion provided for in Code Section 33-23-1. A PEO registered with the254
291291 Department of Insurance and in compliance with this chapter shall not be considered to be255
292292 engaged in the sale, solicitation, or negotiation of an insurance contract or acting as a256
293293 third-party administrator by marketing, selling, or administering professional employer257
294294 services including employee benefits to co-employees. Such employee benefits may258
295295 include, but are not limited to, health and other insurance products procured by the PEO259
296296 from a licensed agent and carrier for the benefit of co-employees.260
297297 34-11-7.261
298298 (a) A professional employer agreement shall have no effect on existing collective262
299299 bargaining agreements. Nothing in this chapter shall alter the rights or obligations of any263
300300 client, professional employer organization, or worksite employee under the federal264
301301 National Labor Relations Act or any state law.265
302302 (b) Nothing in this chapter or in any professional employer agreement shall:266
303303 (1) Diminish, abolish, or remove rights of covered employees to a client or obligations267
304304 of such client to a covered employee existing prior to the effective date of a professional268
305305 employer agreement;269
306306 (2) Affect, modify, or amend any contractual relationship or restrictive covenant between270
307307 a covered employee and any client in effect at the time a professional employer271
308308 agreement becomes effective;272
309309 (3) Prohibit or amend any contractual relationship or restrictive covenant that is entered273
310310 into subsequently between a client and a covered employee, provided that a PEO shall274
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313313 bear no liability arising from any such contractual relationship or restrictive covenant275
314314 unless the PEO and the client have each expressly agreed to such an exception, which276
315315 shall become an addendum to the professional employment agreement; or277
316316 (4) Create any new or additional enforceable right of a covered employee against a PEO278
317317 that is not expressly provided by the professional employer agreement or this chapter.279
318318 (c) Nothing contained in this chapter or any professional employer agreement shall affect,280
319319 modify, or amend any state, local, or federal licensing, registration, or certification281
320320 requirement applicable to any client or covered employee.282
321321 (d) A covered employee who is required by law or any rule or regulation promulgated283
322322 thereunder to be licensed, registered, or certified shall be deemed to be solely an employee284
323323 of the client for purposes of any such license, registration, or certification requirement.285
324324 (e) A PEO shall not be deemed to engage in any occupation, trade, profession, or other286
325325 activity that is subject to licensing, registration, or certification requirements, or is287
326326 otherwise regulated by a governmental entity solely by entering into and maintaining a288
327327 co-employment relationship with a covered employee who is subject to such requirements289
328328 or regulation.290
329329 (f) A client shall have the sole right of direction and control of the professional or licensed291
330330 activities of covered employees. Such covered employees and clients shall remain subject292
331331 to regulation by the regulatory or governmental entity responsible for licensing,293
332332 registration, or certification of such covered employees or clients.294
333333 (g) For purposes of determination of tax credits and other economic incentives provided295
334334 by this state or other governmental entity and based on employment, covered employees296
335335 shall be deemed employees solely of the client. A client shall be entitled to the benefit of297
336336 any tax credit, economic incentive, or other benefit arising as the result of the employment298
337337 of covered employees of such client. Notwithstanding that the PEO shall be the W-2299
338338 reporting employer, the client shall continue to qualify for any such benefit, incentive, or300
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341341 credit. If the grant or amount of any such incentive is based on number of employees, then301
342342 each client shall be treated as employing only those covered co-employees.302
343343 (h) With respect to a bid, contract, purchase order, or agreement entered into with this state303
344344 or a political subdivision of this state, a client company's status as a small business certified304
345345 as a minority business enterprise, women owned business, or veteran owned business or305
346346 as a historically underutilized business shall not be affected because such client has a306
347347 professional employment agreement with a PEO or otherwise transacts business with a307
348348 PEO.308
349349 34-11-8.309
350350 (a) A client and a registered PEO operating under a professional employer agreement shall310
351351 each be deemed an employer for the purposes of sponsoring retirement and welfare benefit311
352352 plans for its covered employees.312
353353 (b) A fully insured welfare benefit plan offered to the covered employees of a single PEO313
354354 shall be treated as a single employer welfare benefit plan. A plan or arrangement shall be314
355355 considered fully insured only if all benefits payable are guaranteed under a contract or315
356356 policy of insurance issued by an insurer licensed or otherwise authorized to transact the316
357357 business of insurance in this state pursuant to Title 33.317
358358 (c) For purposes of Chapter 60 of Title 33, the 'Small Business Employee Choice of318
359359 Benefits Health Insurance Plan Act,' a PEO shall be considered the employer of all of its319
360360 covered employees and all covered co-employees of one or more clients who are320
361361 participating in any health benefit plan sponsored by such single PEO shall be considered321
362362 employees of that PEO.322
363363 (d) If a PEO offers any health benefit plan to its covered employees which is not fully323
364364 insured by an authorized insurer, the plan shall:324
365365 (1) Utilize a third-party administrator licensed to do business in this state;325
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368368 (2) Hold all plan assets, including participant contributions, in a trust account consistent326
369369 with the requirements of Section 403 of the federal Employee Retirement Income327
370370 Security Act of 1974, 29 U.S.C. Section 1001, et seq.;328
371371 (3) Provide sound reserves for such plan as determined using generally accepted329
372372 actuarial standards of practice and consistent with the prudence and loyalty standards of330
373373 care for fiduciaries provided for under the federal Employee Retirement Income Security331
374374 Act of 1974, 29 U.S.C. Section 1001, et seq.; and332
375375 (4) Provide written notice to each covered employee participating in the benefit plan that333
376376 the plan is self-funded or is not fully insured.334
377377 34-11-9.335
378378 (a) The party to which the duty belongs to obtain workers' compensation coverage from336
379379 a carrier authorized to do business in this state for covered employees in compliance with337
380380 Chapter 9 of this title shall be expressed in the professional employer agreement.338
381381 (b) Both the client and the PEO shall be considered the employer for purposes of workers'339
382382 compensation coverage. The protection of the exclusive remedy provision of Chapter 9 of340
383383 this title shall apply to the PEO, the client, and to all covered employees and other341
384384 employees of the client irrespective of which co-employer obtains such workers'342
385385 compensation coverage.343
386386 34-11-10.344
387387 (a) Upon finding that a PEO, an owner or manager of a PEO, or a person offering PEO345
388388 services has committed a violation of a provision in Title 33, Code Sections 34-11-2,346
389389 34-11-3, 34-11-4, or 34-11-5, or the rules and regulations or an order of the Commissioner347
390390 of Insurance, in addition to all other penalties provided for under Title 33, the348
391391 Commissioner of Insurance shall have the authority to:349
392392 (1) Deny an application for registration or refuse to renew a registration;350
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395395 (2) Place any registration on probation for a time period and subject to conditions;351
396396 (3) Suspend, revoke, or restrict a registration;352
397397 (4) Impose an administrative penalty in an amount not to exceed $2,000.00 for each and353
398398 every violation; and354
399399 (5) Issue an order to cease and desist and provided for in Code Section 33-2-24.355
400400 (b) Except as provided for in subsection (a) of this Code section, the Commissioner of356
401401 Labor is authorized to take action against any person in violation of this title or any rule or357
402402 regulation promulgated thereof.358
403403 (c) The hearing and any administrative review thereof shall be conducted in accordance359
404404 with Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'360
405405 34-11-11.361
406406 Nothing contained in this chapter shall affect the rights and obligations established under362
407407 Chapter 8 of Title 34, the 'Employment Security Law,' or any rules or regulations363
408408 promulgated pursuant to such chapter.364
409409 34-11-12.365
410410 This chapter shall not be applicable to:366
411411 (1) Arrangements wherein a person, whose principal business activity is not entering into367
412412 professional employer agreements, does not hold itself out as a PEO, shares employees368
413413 with a commonly owned company within the meaning of Section 414(b) and (c) of the369
414414 Internal Revenue Code of 1986; or370
415415 (2) Temporary help contracting firms as defined in Code Section 34-8-46.371
416416 34-11-13.372
417417 The commissioner may adopt such regulations as are reasonable and necessary to373
418418 effectuate the provisions of this chapter. Reserved."374
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421421 PART III
422422 375
423423 SECTION 3-1.376
424424 Said title is further amended by revising Code Section 34-7-6, relating to professional377
425425 employer organizations, rights, powers, and responsibility, as follows:378
426426 "34-7-6.379
427427 (a) As used in this Code section, the term 'professional employer organization' means an
428428 380
429429 employee leasing company as defined in Code Section 34-8-32 that has established a381
430430 coemployment relationship with another employer, pays the wages of the employees of the382
431431 coemployer, reserves a right of direction and control over the employees of the383
432432 coemployer, and assumes responsibility for the withholding and payment of payroll taxes384
433433 of the coemployer.385
434434 (b) A professional employer organization may collect information to evaluate costs; may386
435435 obtain life, accident and sickness, disability income, workers' compensation, and other387
436436 types of insurance coverage; may establish retirement plans; may have other types of388
437437 employee benefits; and may discuss such benefits with prospective coemployers and their389
438438 employees.390
439439 (c) A coemployer of a professional employer organization shall retain sufficient direction391
440440 and control over the employees involved in a coemployment relationship as is necessary392
441441 to conduct its business operations and fulfill its obligations to such employees. Unless393
442442 otherwise agreed in writing, such coemployer shall be considered to be the sole employer394
443443 of such employees for licensing purposes, provided that nothing contained in this Code395
444444 section shall be deemed to prohibit a professional employer organization and its396
445445 coemployer from agreeing that the professional employer organization shall be considered397
446446 to be an employer for licensing purposes. The professional employer organization shall398
447447 give written notice of such an agreement to the appropriate licensing agency and to the399
448448 employees involved.400
449449 H. B. 1515
450450 - 16 - 24 LC 52 0566
451451 (d) It is the intent of this Code section that professional employer organizations shall be401
452452 considered to be employers under this title and are required to comply with the provisions402
453453 of Code Sections 34-8-32, 34-8-34, and 34-8-172. Professional employer organizations403
454454 and their coemployer clients are entitled to exclusive remedy under Code Section 34-9-11. 404
455455 Reserved."405
456456 SECTION 3-2.406
457457 Said title is further amended by revising Code Section 34-8-32, relating to employee leasing407
458458 company, as follows:408
459459 "34-8-32.409
460460 (a) As used in this chapter, the term 'employee leasing company' means an independently410
461461 established business entity which engages in the business of providing leased employees411
462462 to any other employing unit under the following conditions:412
463463 (1) Negotiates with clients or customers for such matters as time, place, type of work,413
464464 working conditions, quality, and price of service;414
465465 (2) Determines assignments of individuals to its clients or customers, even if the415
466466 individuals retain the right to refuse specific assignments;416
467467 (3) Sets the rate of pay of the individuals, whether or not through negotiation;417
468468 (4) Pays the individuals from its accounts; and418
469469 (5) Hires and terminates individuals who perform services for the clients or customers.419
470470 (b) Individuals performing services for an employee leasing company shall be considered420
471471 employees of the employee leasing company. The employee leasing company shall file421
472472 required reports in accordance with regulations prescribed by the Commissioner and pay422
473473 contributions on wages paid to such employees.423
474474 (c) Individuals who perform services for temporary help contracting firms as that term is424
475475 defined in Code Section 34-8-46 shall not be considered employees of an employee leasing425
476476 company. Reserved."426
477477 H. B. 1515
478478 - 17 - 24 LC 52 0566
479479 SECTION 3-3.
480480 427
481481 Said title is further amended by revising Code Section 34-8-34, relating to employing unit,428
482482 as follows:429
483483 "34-8-34.430
484484 As used in this chapter, the term 'employing unit' means any individual, the legal431
485485 representative of a deceased individual, or any type of organization, including any432
486486 partnership, association, trust, estate, joint-stock company, insurance company, or433
487487 corporation, whether domestic or foreign, employee leasing company
488488 professional434
489489 employer organization, common paymaster, or the receiver, trustee in bankruptcy, trustee,435
490490 or successor thereof which has or had in its employ one or more individuals performing436
491491 services for it within this state. Each individual performing services within this state for437
492492 any employing unit which maintains two or more separate establishments within this state438
493493 shall be deemed to be employed by a single employing unit for all the purposes of this439
494494 chapter. Each individual employed to perform or to assist in performing the work of any440
495495 agent or employee of an employing unit shall be deemed to be employed by such441
496496 employing unit for all the purposes of this chapter, whether such individual was hired or442
497497 paid directly by such employing unit or by such agent or employee, provided the443
498498 employing unit had actual or constructive knowledge of such work."444
499499 SECTION 3-4.445
500500 Said title is further amended by revising Code Section 34-8-172, relating to surety bond446
501501 required of employee leasing company, as follows:447
502502 "34-8-172.448
503503 The Commissioner shall require any employee leasing company, as defined in Code449
504504 Section 34-8-32, professional employer organization or PEO group to post a surety bond450
505505 or such equivalent financial securities as approved by the Commissioner in such an amount451
506506 as needed to cover the total of any potential tax liability which may reasonably be expected452
507507 H. B. 1515
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509509 to be incurred by such employer. In the event an employee leasing company a professional453
510510 employer organization or PEO group is unable to procure such bond or security, the454
511511 employee leasing company the professional employer organization or PEO group may455
512512 report such employees as being in the employment of its client employers, notwithstanding456
513513 any provision of Code Section 34-8-32 to the contrary."457
514514 SECTION 3-5.458
515515 Said title is further amended by revising subsection (c) of Code Section 34-8-195, relating459
516516 to determination of eligibility for unemployment benefits generally, eligibility while in460
517517 training, and deductions and withholdings from compensation, as follows:461
518518 "(c) An individual shall not be deemed to be unemployed in any week such individual462
519519 refuses an intermittent or temporary assignment without good cause when the assignment463
520520 offered is comparable to previous work or assignments performed by the individual or464
521521 meets the conditions of employment previously agreed to between the individual and the465
522522 employer. Such individual may be considered unemployed with respect to any week an466
523523 assignment or work is not offered by the employer; provided, however, that an employee467
524524 of a temporary help contracting firm, an employee leasing company, or a professional468
525525 employer organization as defined in Code Section 34-7-6 34-11-1 will be presumed to have469
526526 voluntarily left employment without good cause if the employee does not contact the470
527527 temporary help contracting firm, employee leasing company, or professional employer471
528528 organization for reassignment upon completion of an assignment; provided, further, that472
529529 such failure to contact the temporary help contracting firm, employee leasing company, or473
530530 professional employer organization will not be considered a voluntary departure from474
531531 employment unless the employee has been advised in writing of the obligation to contact475
532532 such employer upon completion of assignments and has been advised in writing that476
533533 unemployment benefits may be denied for failure to do so."477
534534 H. B. 1515
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536536 SECTION 3-6.
537537 478
538538 Said title is further amended by revising subsection (c) of Code Section 34-9-11, relating to479
539539 exclusivity of rights and remedies granted to employee under chapter and immunity granted480
540540 to construction design professionals, as follows:481
541541 "(c) The immunity provided by this subsection shall apply and extend to the businesses482
542542 using the services of a temporary help contracting firm, as such term is defined in Code483
543543 Section 34-8-46, or an employee leasing company
544544 a professional employer organization,484
545545 as such term is defined in Code Section 34-8-32 34-11-1, when the benefits required by this485
546546 chapter are provided by either the temporary help contracting firm or the employee leasing486
547547 company professional employer organization or the business using the services of either487
548548 such firm or company. A temporary help contracting firm or an employee leasing company488
549549 a professional employer organization shall be deemed to be a statutory employer for the489
550550 purposes of this chapter."490
551551 PART IV491
552552 SECTION 4-1.492
553553 This Act shall become effective upon its approval by the Governor or upon its becoming law493
554554 without such approval.494
555555 SECTION 4-2.495
556556 All laws and parts of laws in conflict with this Act are repealed.496
557557 H. B. 1515
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