24 LC 52 0566
House Bill 1515
By: Representatives Taylor of the 173
rd
and Cheokas of the 151
st
A BILL TO BE ENTITLED
AN ACT
To amend Titles 33 and 34 of the Official Code of Georgia Annotated, relating to insurance
1
and labor and industrial relations, respectively, so as to provide for the registration and2
regulation of professional employer organizations; to provide for certain regulatory powers,3
duties, and authority of the Commissioner of Insurance and the Commissioner of Labor over4
professional employer organizations; to exclude such organizations from certain definitions5
related to insurance; to provide for definitions; to provide for the registration of such6
organizations with the Commissioner of Insurance; to provide for certain fees; to provide for7
the restriction of the use of certain terms; to provide for complaints; to provide for rules and8
regulations; to provide for a co-employment relationship; to provide for no effect on existing9
collective bargaining agreements or other contracts; to provide for legislative construction;10
to clarify rights, duties, and obligations of clients and professional employer organizations;11
to clarify employer and employee statuses; to provide for the disciplinary actions; to provide12
for the applicability of Chapter 8 of Title 34, the "Employment Security Law"; to repeal13
obsolete provisions; to provide for the posting of a surety bond; to provide for conforming14
changes; to provide for a short title; to provide for related matters; to provide an effective15
date; to repeal conflicting laws; and for other purposes.16
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:17
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PART I
18
SECTION 1-1.19
Title 33 of the Official Code of Georgia Annotated, relating to insurance, is amended in Code20
Section 33-2-11, relating to examination of insurers and organizations and effect of insurer's21
change of domicile from Georgia, by revising subsection (c) as follows:22
"(c) The Commissioner shall in like manner examine each insurer or rating organization23
applying for authority to do business in this state or any professional employer organization
24
registering with the department to do business in this state."25
SECTION 1-2.26
Said title is further amended in Code Section 33-23-1, relating to definitions relative to27
agents, agencies, subagents, counselors, and adjusters, by revising subsection (b) as follows:28
"(b) The definitions of agent, subagent, and counselor in subsection (a) of this Code29
section shall not be deemed to include:30
(1) An attorney at law admitted to practice in this state, when handling the collections31
of premiums or advising clients as to insurance as a function incidental to the practice of32
law or who adjusts losses which are incidental to the practice of his or her profession;33
(2) Any representative of ocean marine insurers;34
(3) Any representative of farmers' mutual fire insurance companies as defined in35
Chapter 16 of this title;36
(4) A salaried employee of a credit or character reporting firm or agency not engaged in37
the insurance business who may, however, report to an insurer;38
(5) A person acting for or as a collection agency;39
(6) A person who makes the salary deductions of premiums for employees or, under a40
group insurance plan, a person who serves the master policyholder of group insurance in41
administering the details of such insurance for the employees or debtors of the master42
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policyholder or of a firm or corporation by which the person is employed and who does
43
not receive insurance commissions for such service; provided, further, that an44
administration fee not exceeding 5 percent of the premiums collected paid by the insurer45
to the administration office shall not be construed to be an insurance commission;46
(7) Persons exempted from licensure as provided in subsection (h) of Code47
Section 33-23-4; or
48
(8) An individual who collects claim information from, or furnishes claim information49
to, insureds or claimants, who conducts data entry, and who enters data into an automated50
claims adjudication system, provided that the individual is an employee of a licensed51
independent adjuster or its affiliate where no more than 25 such persons are under the52
supervision of one licensed independent adjustor or licensed agent; or53
(9) A professional employer organization to the extent that such organization collects54
information; obtains, offers, or provides life, accident and sickness, disability income,55
workers' compensation, and other types of insurance coverage; establishes retirement56
plans; and has or obtains, offers, or provides other types of employee benefits and57
discusses such benefits."58
PART II59
SECTION 2-1.60
This Act shall be known and may be cited as the "Better Small Business Employee Benefits61
Act."62
SECTION 2-2.63
Title 34 of the Official Code of Georgia Annotated, relating to labor and industrial relations,64
is amended by amending Chapter 11, which is reserved, as follows:65
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"CHAPTER 11
66
34-11-1.67
As used in this chapter:
68
(1) 'Client' means any person who enters into a professional employer agreement with69
a professional employer organization.70
(2) 'Co-employer' means either a professional employer organization or a client.71
(3) 'Co-employment relationship' means an arrangement wherein the rights, duties, and72
obligations of an employer which arise out of an employment arrangement are allocated73
between the parties to such arrangements.74
(4) 'Commissioner' means the Commissioner of Labor.75
(5) 'Covered employee' means an individual working under a co-employment76
relationship between a PEO and a client pursuant to a professional employer agreement77
subject to this chapter.78
(6) 'Department' means the Department of Labor.79
(7) 'Limited registrant' means a PEO that:80
(A) Is domiciled and registered or licensed in another state;81
(B) Has 50 or fewer covered employees; and82
(C) Maintains no principal place of business in this state.83
(8) 'PEO group' means two or more PEO entities that are majority owned or commonly84
controlled by the same entity or parent company.85
(9) 'Professional employer agreement' means a contract between a client and a PEO86
which provides:87
(A) For the co-employment of covered employees;88
(B) An express allocation of the client's rights and obligations as an employer to the89
co-employee and allocation of such rights and obligations to the co-employee assigned90
to the PEO; and91
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(C) That the PEO and the client assume the responsibilities required by this chapter.92
(10) 'Professional employer organization' or 'PEO' means any person engaged in the93
business of providing professional employer services.94
(11) 'Professional employer services' means the service of entering into co-employment95
relationships in which all or a majority of the employees providing services to a client are96
covered employees pursuant to a professional employer agreement.97
(12) 'Registrant' means a PEO registered with the Department of Insurance pursuant to98
Code Section 34-11-2.99
34-11-2.100
(a) As used in this Code section, the term:101
(1) 'Commissioner' means the Commissioner of Insurance.102
(2) 'Department' means the Department of Insurance.103
(b) Beginning July 1, 2026, except as otherwise provided in this chapter, no person shall104
provide, advertise, or otherwise hold itself out as providing professional employer services105
in this state, unless such person is registered with the department in accordance with this106
chapter. The department shall begin accepting applications for registration no later than107
January 2, 2025. Only a firm, corporation, professional corporation, partnership,108
association, or other entity may apply with the department for registration to provide109
professional employer services in this state.110
(c) Each applicant for registration shall provide the department with the following:111
(1) The name or names under which the PEO conducts business;112
(2) The address of the principal place of business of the PEO;113
(3) The address of each office it maintains in this state;114
(4) The PEO's taxpayer or employer identification number;115
(5) A list by jurisdiction of each name under which the PEO has operated in the116
preceding two years;117
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(6) A statement of ownership, which shall include the name and address of any person118
that, individually or in a business relationship with one or more other persons, owns or119
controls at least 25 percent or more of the equity interests of the PEO;120
(7) A statement of management, which shall include the name of any person who serves121
as chief executive officer, president, or secretary or otherwise has been empowered with122
the authority to act as an officer of the PEO; and123
(8) A financial statement, prepared in accordance with generally accepted accounting124
principles by an independent, certified public accountant licensed to practice in the125
jurisdiction in which such accountant is located. A PEO group may submit combined or126
consolidated financial statements to meet the requirements of this paragraph. A PEO that127
has not had sufficient operating history to be able to provide such records shall meet the128
financial requirements set forth in this Code section and present financial statements as129
requested by the department.130
(d) In the event a PEO not registered in this state becomes knowledgeable that a client has131
covered employees in this state, the PEO shall:132
(1) Notify the department within 30 days of such knowledge and file a limited133
registration application under subsection (g) of this Code section; or134
(2) If the number of covered employees exceeds 50, the department may allow for a135
temporary registration while registration applications are being prepared and evaluated. 136
In its evaluation for such temporary registration, the department may consider whether137
the PEO is currently registered or licensed in another state and if temporary registration138
is in the best interests of the covered employees based in this state.139
(e) A registrant shall renew its registration annually by making a filing in a form140
determined by the department, which shall provide for the registrants to notify the141
department of any changes in the information provided in its most recent registration filing. 142
A registrant's existing registration shall remain in effect while such renewal application is143
under review.144
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(f) A PEO group applying for renewal may satisfy the registration and financial reporting145
requirements of this chapter by filing combined or consolidated filings, provided that each146
member of the PEO group attests to be responsible for meeting the requirements set forth147
in this chapter on behalf of each member of the group.148
(g) A PEO shall be eligible to be a limited registrant if such PEO submits a request for149
limited registration on a form provided by the department and the department finds that150
such PEO is domiciled outside this state and is licensed or registered as a professional151
employer organization in another state. A limited registrant shall not maintain an office152
in this state or have more than 50 covered employees employed or domiciled in this state153
at any time. Limited registrants shall be registered for a maximum period of one year and154
may be considered for renewal as a limited registrant as set forth by the department.155
(h) The department shall maintain a directory of professional employer organizations156
registered under this chapter and shall make such directory readily available on the157
department's public website and by any other means deemed appropriate by the department.158
(i) The department shall, to the extent practical, accept electronic filings, including, but not159
limited to, applications, documents, reports, and other filings required under this chapter. 160
The department may provide for the acceptance of electronic filings and other assurance161
by an independent and qualified assurance organization approved by the department that162
provides satisfactory assurance of compliance and security. The department may permit163
a PEO to be authorized to agree that such an approved assurance organization may act on164
the PEO's behalf in complying with the registration requirements of this chapter.165
(j) All records, reports, and other information obtained from or on behalf of a PEO, except166
to the minimum extent necessary for the proper administration by the department or to167
comply with the provisions of Article 4 of Chapter 18 of Title 50 shall be confidential and168
shall not be published or open to public inspection other than to public employees in the169
performance of their public duties.170
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(k) The Commissioner of Insurance shall adopt such and regulations as are reasonable and171
necessary to effectuate the provisions of this Code section.172
34-11-3.173
(a) The Commissioner of Insurance shall establish by rules and regulations the amount of174
the fees for the initial and renewal registration of a PEO, initial and renewal registration of175
a PEO group, and limited and temporary registration of a PEO or a PEO group.176
(b) The amount of the fees established by the Commissioner of Insurance shall be limited177
as follows:178
(1) The initial registration fee of a PEO shall not exceed $500.00, and the renewal179
registration fee of a PEO shall not exceed $250.00;180
(2) The initial registration fee of a PEO group shall not exceed $500.00 per group181
member, and the renewal registration fee of a PEO group shall not exceed $250.00 per182
group member;183
(3) The limited registration fee of a PEO shall not exceed $250.00, and the limited184
registration fee of a PEO group shall not exceed $250.00 per group member;185
(4) The temporary registration fee of a PEO shall not exceed $500.00, and the temporary186
registration fee of a PEO group shall not exceed $500.00 per group member; and187
(5) Such fees shall not exceed the amount reasonably necessary for the registration and188
regulation of professional employer organizations.189
34-11-4.190
(a) Any applicant, either for an initial registration or a renewal, shall submit financial191
statements, in accordance with paragraph (8) of subsection (c) of Code Section 34-11-2,192
that prove that the applicant has positive working capital.193
(b) The Commissioner of Insurance shall adopt such and regulations as are reasonable and194
necessary to effectuate the provisions of this Code section.195
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34-11-5.196
(a) It shall be unlawful for any person to use the term 'PEO,' 'professional employer197
organization,' 'staff leasing,' 'staff leasing company,' 'registered staff leasing company,'198
'employee leasing,' 'employee leasing company,' 'administrative employer,' or any other199
title deemed by the Department of Insurance to be representative of professional employer200
services without being registered as a PEO with the Department of Insurance.201
(b) It shall be unlawful for any person to knowingly provide false or otherwise fraudulent202
information to the Department of Insurance in support of any application for registration,203
renewal, or in any report required under this chapter.204
(c) Any complaints regarding a professional employer organization shall be filed with the205
Department of Insurance, and any complaints filed with the Department of Labor shall be206
forwarded to the Department of Insurance; provided, however that the Department of207
Insurance and the Department of Labor shall cooperate in the documentation, investigation,208
and resolution of any complaints received and in any disciplinary actions.209
(d) The Commissioner of Insurance shall adopt such and regulations as are reasonable and210
necessary to effectuate the provisions of this Code section.211
34-11-6.212
(a) In a co-employment relationship:213
(1) The client is entitled to enforce those rights, and obligated to provide and perform214
those employer obligations, allocated to such client by the professional employer215
agreement and this chapter;216
(2) The client is entitled to enforce any right and obligated to perform any obligation of217
an employer not specifically allocated to the PEO in the professional employer agreement218
or this chapter; and219
(3) For purposes of any law of this state where employer coverage and employee220
eligibility is determined based on the number of covered employees employed by the221
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employer, the client as an employer shall only be required to count covered employees222
of the client, and not employees of other clients of the PEO or of the PEO itself.223
(b) Except as specifically provided in this chapter, the co-employment relationship224
between the client and the PEO, and between each co-employer and each covered225
employee, shall be governed by a professional employer agreement. Each professional226
employer agreement shall provide for the following:227
(1) The allocation of rights, duties, and obligations of each co-employer for each228
co-employee;229
(2) The allocation of rights, duties, and obligations to the PEO regarding payroll230
processing. The PEO shall pay wages to covered employees; shall withhold, collect, and231
remit payroll related and unemployment taxes; and may make payments for employee232
benefits. This shall not be interpreted as to include any obligation between a client and233
a covered employee for payments beyond or in addition to the covered employee's salary,234
draw, or regular rate of pay, including, but not limited to, severance pay, deferred235
compensation, profit sharing, vacation, sick, or other paid time off pay, unless the PEO236
has expressly agreed to assume liability for such payments in the professional employer237
agreement;238
(3) The right to hire, discipline, and terminate a covered employee shall be allocated to239
both the client and the PEO; provided, however, that the PEO's right shall be limited to240
such employment decisions as may be necessary to fulfill the PEO's responsibilities under241
this chapter and a valid professional employer agreement; and242
(4) The responsibility to purchase and obtain adequate workers' compensation coverage243
for covered employees shall be specifically allocated to either the client or the PEO in the244
professional employer agreement.245
(c) A PEO shall provide written notice to each covered employee whose co-employment246
is made effective by a professional employer agreement of the general nature of the247
co-employment relationship between and among the PEO, the client, and such covered248
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employee. Such notice shall be delivered as designated within the professional employer249
agreement but shall not exceed 60 days.250
(d) A PEO registered with the Department of Insurance and in compliance with this251
chapter shall not be required to obtain a license from the Commissioner of Insurance under252
Chapter 23 of Title 33 unless such PEO is selling, soliciting, or negotiating insurance253
outside of the exclusion provided for in Code Section 33-23-1. A PEO registered with the254
Department of Insurance and in compliance with this chapter shall not be considered to be255
engaged in the sale, solicitation, or negotiation of an insurance contract or acting as a256
third-party administrator by marketing, selling, or administering professional employer257
services including employee benefits to co-employees. Such employee benefits may258
include, but are not limited to, health and other insurance products procured by the PEO259
from a licensed agent and carrier for the benefit of co-employees.260
34-11-7.261
(a) A professional employer agreement shall have no effect on existing collective262
bargaining agreements. Nothing in this chapter shall alter the rights or obligations of any263
client, professional employer organization, or worksite employee under the federal264
National Labor Relations Act or any state law.265
(b) Nothing in this chapter or in any professional employer agreement shall:266
(1) Diminish, abolish, or remove rights of covered employees to a client or obligations267
of such client to a covered employee existing prior to the effective date of a professional268
employer agreement;269
(2) Affect, modify, or amend any contractual relationship or restrictive covenant between270
a covered employee and any client in effect at the time a professional employer271
agreement becomes effective;272
(3) Prohibit or amend any contractual relationship or restrictive covenant that is entered273
into subsequently between a client and a covered employee, provided that a PEO shall274
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bear no liability arising from any such contractual relationship or restrictive covenant275
unless the PEO and the client have each expressly agreed to such an exception, which276
shall become an addendum to the professional employment agreement; or277
(4) Create any new or additional enforceable right of a covered employee against a PEO278
that is not expressly provided by the professional employer agreement or this chapter.279
(c) Nothing contained in this chapter or any professional employer agreement shall affect,280
modify, or amend any state, local, or federal licensing, registration, or certification281
requirement applicable to any client or covered employee.282
(d) A covered employee who is required by law or any rule or regulation promulgated283
thereunder to be licensed, registered, or certified shall be deemed to be solely an employee284
of the client for purposes of any such license, registration, or certification requirement.285
(e) A PEO shall not be deemed to engage in any occupation, trade, profession, or other286
activity that is subject to licensing, registration, or certification requirements, or is287
otherwise regulated by a governmental entity solely by entering into and maintaining a288
co-employment relationship with a covered employee who is subject to such requirements289
or regulation.290
(f) A client shall have the sole right of direction and control of the professional or licensed291
activities of covered employees. Such covered employees and clients shall remain subject292
to regulation by the regulatory or governmental entity responsible for licensing,293
registration, or certification of such covered employees or clients.294
(g) For purposes of determination of tax credits and other economic incentives provided295
by this state or other governmental entity and based on employment, covered employees296
shall be deemed employees solely of the client. A client shall be entitled to the benefit of297
any tax credit, economic incentive, or other benefit arising as the result of the employment298
of covered employees of such client. Notwithstanding that the PEO shall be the W-2299
reporting employer, the client shall continue to qualify for any such benefit, incentive, or300
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credit. If the grant or amount of any such incentive is based on number of employees, then301
each client shall be treated as employing only those covered co-employees.302
(h) With respect to a bid, contract, purchase order, or agreement entered into with this state303
or a political subdivision of this state, a client company's status as a small business certified304
as a minority business enterprise, women owned business, or veteran owned business or305
as a historically underutilized business shall not be affected because such client has a306
professional employment agreement with a PEO or otherwise transacts business with a307
PEO.308
34-11-8.309
(a) A client and a registered PEO operating under a professional employer agreement shall310
each be deemed an employer for the purposes of sponsoring retirement and welfare benefit311
plans for its covered employees.312
(b) A fully insured welfare benefit plan offered to the covered employees of a single PEO313
shall be treated as a single employer welfare benefit plan. A plan or arrangement shall be314
considered fully insured only if all benefits payable are guaranteed under a contract or315
policy of insurance issued by an insurer licensed or otherwise authorized to transact the316
business of insurance in this state pursuant to Title 33.317
(c) For purposes of Chapter 60 of Title 33, the 'Small Business Employee Choice of318
Benefits Health Insurance Plan Act,' a PEO shall be considered the employer of all of its319
covered employees and all covered co-employees of one or more clients who are320
participating in any health benefit plan sponsored by such single PEO shall be considered321
employees of that PEO.322
(d) If a PEO offers any health benefit plan to its covered employees which is not fully323
insured by an authorized insurer, the plan shall:324
(1) Utilize a third-party administrator licensed to do business in this state;325
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(2) Hold all plan assets, including participant contributions, in a trust account consistent326
with the requirements of Section 403 of the federal Employee Retirement Income327
Security Act of 1974, 29 U.S.C. Section 1001, et seq.;328
(3) Provide sound reserves for such plan as determined using generally accepted329
actuarial standards of practice and consistent with the prudence and loyalty standards of330
care for fiduciaries provided for under the federal Employee Retirement Income Security331
Act of 1974, 29 U.S.C. Section 1001, et seq.; and332
(4) Provide written notice to each covered employee participating in the benefit plan that333
the plan is self-funded or is not fully insured.334
34-11-9.335
(a) The party to which the duty belongs to obtain workers' compensation coverage from336
a carrier authorized to do business in this state for covered employees in compliance with337
Chapter 9 of this title shall be expressed in the professional employer agreement.338
(b) Both the client and the PEO shall be considered the employer for purposes of workers'339
compensation coverage. The protection of the exclusive remedy provision of Chapter 9 of340
this title shall apply to the PEO, the client, and to all covered employees and other341
employees of the client irrespective of which co-employer obtains such workers'342
compensation coverage.343
34-11-10.344
(a) Upon finding that a PEO, an owner or manager of a PEO, or a person offering PEO345
services has committed a violation of a provision in Title 33, Code Sections 34-11-2,346
34-11-3, 34-11-4, or 34-11-5, or the rules and regulations or an order of the Commissioner347
of Insurance, in addition to all other penalties provided for under Title 33, the348
Commissioner of Insurance shall have the authority to:349
(1) Deny an application for registration or refuse to renew a registration;350
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(2) Place any registration on probation for a time period and subject to conditions;351
(3) Suspend, revoke, or restrict a registration;352
(4) Impose an administrative penalty in an amount not to exceed $2,000.00 for each and353
every violation; and354
(5) Issue an order to cease and desist and provided for in Code Section 33-2-24.355
(b) Except as provided for in subsection (a) of this Code section, the Commissioner of356
Labor is authorized to take action against any person in violation of this title or any rule or357
regulation promulgated thereof.358
(c) The hearing and any administrative review thereof shall be conducted in accordance359
with Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'360
34-11-11.361
Nothing contained in this chapter shall affect the rights and obligations established under362
Chapter 8 of Title 34, the 'Employment Security Law,' or any rules or regulations363
promulgated pursuant to such chapter.364
34-11-12.365
This chapter shall not be applicable to:366
(1) Arrangements wherein a person, whose principal business activity is not entering into367
professional employer agreements, does not hold itself out as a PEO, shares employees368
with a commonly owned company within the meaning of Section 414(b) and (c) of the369
Internal Revenue Code of 1986; or370
(2) Temporary help contracting firms as defined in Code Section 34-8-46.371
34-11-13.372
The commissioner may adopt such regulations as are reasonable and necessary to373
effectuate the provisions of this chapter. Reserved."374
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PART III
375
SECTION 3-1.376
Said title is further amended by revising Code Section 34-7-6, relating to professional377
employer organizations, rights, powers, and responsibility, as follows:378
"34-7-6.379
(a) As used in this Code section, the term 'professional employer organization' means an
380
employee leasing company as defined in Code Section 34-8-32 that has established a381
coemployment relationship with another employer, pays the wages of the employees of the382
coemployer, reserves a right of direction and control over the employees of the383
coemployer, and assumes responsibility for the withholding and payment of payroll taxes384
of the coemployer.385
(b) A professional employer organization may collect information to evaluate costs; may386
obtain life, accident and sickness, disability income, workers' compensation, and other387
types of insurance coverage; may establish retirement plans; may have other types of388
employee benefits; and may discuss such benefits with prospective coemployers and their389
employees.390
(c) A coemployer of a professional employer organization shall retain sufficient direction391
and control over the employees involved in a coemployment relationship as is necessary392
to conduct its business operations and fulfill its obligations to such employees. Unless393
otherwise agreed in writing, such coemployer shall be considered to be the sole employer394
of such employees for licensing purposes, provided that nothing contained in this Code395
section shall be deemed to prohibit a professional employer organization and its396
coemployer from agreeing that the professional employer organization shall be considered397
to be an employer for licensing purposes. The professional employer organization shall398
give written notice of such an agreement to the appropriate licensing agency and to the399
employees involved.400
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(d) It is the intent of this Code section that professional employer organizations shall be401
considered to be employers under this title and are required to comply with the provisions402
of Code Sections 34-8-32, 34-8-34, and 34-8-172. Professional employer organizations403
and their coemployer clients are entitled to exclusive remedy under Code Section 34-9-11. 404
Reserved."405
SECTION 3-2.406
Said title is further amended by revising Code Section 34-8-32, relating to employee leasing407
company, as follows:408
"34-8-32.409
(a) As used in this chapter, the term 'employee leasing company' means an independently410
established business entity which engages in the business of providing leased employees411
to any other employing unit under the following conditions:412
(1) Negotiates with clients or customers for such matters as time, place, type of work,413
working conditions, quality, and price of service;414
(2) Determines assignments of individuals to its clients or customers, even if the415
individuals retain the right to refuse specific assignments;416
(3) Sets the rate of pay of the individuals, whether or not through negotiation;417
(4) Pays the individuals from its accounts; and418
(5) Hires and terminates individuals who perform services for the clients or customers.419
(b) Individuals performing services for an employee leasing company shall be considered420
employees of the employee leasing company. The employee leasing company shall file421
required reports in accordance with regulations prescribed by the Commissioner and pay422
contributions on wages paid to such employees.423
(c) Individuals who perform services for temporary help contracting firms as that term is424
defined in Code Section 34-8-46 shall not be considered employees of an employee leasing425
company. Reserved."426
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SECTION 3-3.
427
Said title is further amended by revising Code Section 34-8-34, relating to employing unit,428
as follows:429
"34-8-34.430
As used in this chapter, the term 'employing unit' means any individual, the legal431
representative of a deceased individual, or any type of organization, including any432
partnership, association, trust, estate, joint-stock company, insurance company, or433
corporation, whether domestic or foreign, employee leasing company
professional434
employer organization, common paymaster, or the receiver, trustee in bankruptcy, trustee,435
or successor thereof which has or had in its employ one or more individuals performing436
services for it within this state. Each individual performing services within this state for437
any employing unit which maintains two or more separate establishments within this state438
shall be deemed to be employed by a single employing unit for all the purposes of this439
chapter. Each individual employed to perform or to assist in performing the work of any440
agent or employee of an employing unit shall be deemed to be employed by such441
employing unit for all the purposes of this chapter, whether such individual was hired or442
paid directly by such employing unit or by such agent or employee, provided the443
employing unit had actual or constructive knowledge of such work."444
SECTION 3-4.445
Said title is further amended by revising Code Section 34-8-172, relating to surety bond446
required of employee leasing company, as follows:447
"34-8-172.448
The Commissioner shall require any employee leasing company, as defined in Code449
Section 34-8-32, professional employer organization or PEO group to post a surety bond450
or such equivalent financial securities as approved by the Commissioner in such an amount451
as needed to cover the total of any potential tax liability which may reasonably be expected452
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to be incurred by such employer. In the event an employee leasing company a professional453
employer organization or PEO group is unable to procure such bond or security, the454
employee leasing company the professional employer organization or PEO group may455
report such employees as being in the employment of its client employers, notwithstanding456
any provision of Code Section 34-8-32 to the contrary."457
SECTION 3-5.458
Said title is further amended by revising subsection (c) of Code Section 34-8-195, relating459
to determination of eligibility for unemployment benefits generally, eligibility while in460
training, and deductions and withholdings from compensation, as follows:461
"(c) An individual shall not be deemed to be unemployed in any week such individual462
refuses an intermittent or temporary assignment without good cause when the assignment463
offered is comparable to previous work or assignments performed by the individual or464
meets the conditions of employment previously agreed to between the individual and the465
employer. Such individual may be considered unemployed with respect to any week an466
assignment or work is not offered by the employer; provided, however, that an employee467
of a temporary help contracting firm, an employee leasing company, or a professional468
employer organization as defined in Code Section 34-7-6 34-11-1 will be presumed to have469
voluntarily left employment without good cause if the employee does not contact the470
temporary help contracting firm, employee leasing company, or professional employer471
organization for reassignment upon completion of an assignment; provided, further, that472
such failure to contact the temporary help contracting firm, employee leasing company, or473
professional employer organization will not be considered a voluntary departure from474
employment unless the employee has been advised in writing of the obligation to contact475
such employer upon completion of assignments and has been advised in writing that476
unemployment benefits may be denied for failure to do so."477
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SECTION 3-6.
478
Said title is further amended by revising subsection (c) of Code Section 34-9-11, relating to479
exclusivity of rights and remedies granted to employee under chapter and immunity granted480
to construction design professionals, as follows:481
"(c) The immunity provided by this subsection shall apply and extend to the businesses482
using the services of a temporary help contracting firm, as such term is defined in Code483
Section 34-8-46, or an employee leasing company
a professional employer organization,484
as such term is defined in Code Section 34-8-32 34-11-1, when the benefits required by this485
chapter are provided by either the temporary help contracting firm or the employee leasing486
company professional employer organization or the business using the services of either487
such firm or company. A temporary help contracting firm or an employee leasing company488
a professional employer organization shall be deemed to be a statutory employer for the489
purposes of this chapter."490
PART IV491
SECTION 4-1.492
This Act shall become effective upon its approval by the Governor or upon its becoming law493
without such approval.494
SECTION 4-2.495
All laws and parts of laws in conflict with this Act are repealed.496
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