25 LC 52 0687
House Bill 250
By: Representatives Taylor of the 173
rd
, Cheokas of the 151
st
, Jones of the 25
th
, Williams of
the 148
th
, and Martin of the 49
th
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 over professional employer4
organizations; to exempt such organizations from certain licensing requirements; to provide5
for definitions; to provide for the registration of such organizations; to provide for certain6
fees; to provide for the restriction of the use of certain terms; to provide for complaints; to7
provide for coordination with the Commissioner of Labor; to provide for a co-employment8
relationship; to provide for no effect on existing collective bargaining agreements or other9
contracts; to provide for legislative construction; to clarify rights, duties, and obligations of10
clients and professional employer organizations; to clarify employer and employee statuses;11
to clarify tax duties, obligations, and credits; to provide for disciplinary actions; to provide12
for the applicability of Chapter 8 of Title 34, the "Employment Security Law"; to provide for13
rules and regulations; to repeal obsolete provisions; to provide for the posting of a surety14
bond; to provide for conforming changes; to provide for a short title; to provide for related15
matters; to provide for an effective 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 in20
subsections (b) and (c) of Code Section 33-23-1, relating to definitions relative to agents,21
agencies, subagents, counselors, and adjusters, as follows:22
"(b) The definitions of agent, subagent, and counselor in subsection (a) of this Code23
section shall not be deemed to include:24
(1) An attorney at law admitted to practice in this state, when handling the collections25
of premiums or advising clients as to insurance as a function incidental to the practice of26
law or who adjusts losses which are incidental to the practice of his or her profession;27
(2) Any representative of ocean marine insurers;28
(3) Any representative of farmers' mutual fire insurance companies as defined in29
Chapter 16 of this title;30
(4) A salaried employee of a credit or character reporting firm or agency not engaged in31
the insurance business who may, however, report to an insurer;32
(5) A person acting for or as a collection agency;33
(6) A person who makes the salary deductions of premiums for employees or, under a34
group insurance plan, a person who serves the master policyholder of group insurance in35
administering the details of such insurance for the employees or debtors of the master36
policyholder or of a firm or corporation by which the person is employed and who does37
not receive insurance commissions for such service; provided, further, that an38
administration fee not exceeding 5 percent of the premiums collected paid by the insurer39
to the administration office shall not be construed to be an insurance commission;40
(7) Persons exempted from licensure as provided in subsection (h) of Code41
Section 33-23-4; or
42
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(8) An individual who collects claim information from, or furnishes claim information
43
to, insureds or claimants, who conducts data entry, and who enters data into an automated44
claims adjudication system, provided that the individual is an employee of a licensed45
independent adjuster or its affiliate where no more than 25 such persons are under the46
supervision of one licensed independent adjustor or licensed agent; or
47
(9) A professional employer organization providing professional employer services to48
a client or covered employee pursuant to a professional employer agreement, as such49
terms are defined in Code Section 34-11-1, to the extent that such organization collects50
information from a client or covered employee; obtains, offers, or provides life, accident51
and sickness, disability income, workers' compensation, and other types of insurance52
coverage for a client or covered employee; establishes a retirement plan for a client or53
covered employee; and has or obtains, offers, or provides other types of employee54
benefits and discusses such benefits with a client or covered employee.55
(c) In addition to paragraphs (2) through (8)(9) of subsection (b) of this Code section, the56
definitions of public adjuster, independent adjuster, and adjuster in subsection (a) of this57
Code section shall not be deemed to include an attorney admitted to practice law in this58
state."59
SECTION 1-2.60
Said title is further amended in subsection (b) of Code Section 33-23-100, relating to61
definitions, exemptions, and applicability of Code Section 33-24-59.5 and 33-24-59.14, by62
striking "or" at the end of paragraph (12), replacing the period at the end of paragraph (13)63
with "; or", and adding a new paragraph to read as follows:64
"(14) A professional employer organization to the extent that such organization65
administers insurance or administers workers' compensation claims pursuant to a66
professional employer agreement, as such terms are defined in Code Section 34-11-1."67
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PART II
68
SECTION 2-1.69
This Act shall be known and may be cited as the "Better Small Business Employee Benefits70
Act."71
SECTION 2-2.72
Title 34 of the Official Code of Georgia Annotated, relating to labor and industrial relations,73
is amended by revising Chapter 11, which is reserved, as follows:74
"CHAPTER 1175
34-11-1.76
As used in this chapter, the term:
77
(1) 'Client' means any person who enters into a professional employer agreement with78
a professional employer organization.79
(2) 'Co-employer' means either a professional employer organization or a client.80
(3) 'Co-employment relationship' means an arrangement wherein the rights, duties, and81
obligations of an employer which arise out of an employment arrangement are allocated82
between the parties to such arrangement.83
(4) 'Commissioner' means the Commissioner of Insurance.84
(5) 'Covered employee' means an individual working under a co-employment85
relationship between a PEO and a client pursuant to a professional employer agreement86
subject to this chapter.87
(6) 'Department' means the Department of Insurance.88
(7) 'Limited registrant' means a PEO that:89
(A) Is domiciled and registered or licensed in another state;90
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(B) Has 50 or fewer covered employees; and91
(C) Maintains no principal place of business in this state.92
(8) 'PEO group' means two or more PEO entities that are majority owned or commonly93
controlled by the same entity or parent company.94
(9) 'Person' means any individual, corporation, company, association, partnership,95
limited liability company, or other form of legally recognized entity.96
(10) 'Professional employer agreement' means a written contract between a client and a97
PEO that provides:98
(A) For the co-employment of covered employees;99
(B) An express allocation of employer rights and obligations regarding covered100
employees between the client and the PEO; and101
(C) That the PEO and the client assume the responsibilities required by this chapter.102
(11) 'Professional employer organization' or 'PEO' means any person engaged in the103
business of providing professional employer services. Such term is not required to be in104
the title of the business. Such term shall include a staff leasing company, registered staff105
leasing company, employee leasing company, administrative employer, or any other106
similar name, provided that the person is engaged in the business of providing107
professional employer services. Such term shall not include:108
(A) A person, whose principal business activity is not entering into professional109
employer agreements and which does not hold itself out as a PEO, that shares110
employees with a commonly controlled corporation, trade, or business within the111
meaning of Section 414(b) and (c) of the federal Internal Revenue Code of 1986;112
(B) A person in an independent contractor arrangement by which such person assumes113
responsibility for the goods produced or services performed by such person or such114
person's agents and retains and exercises primary direction and control over the work115
performed by the individuals whose goods or services are supplied under such116
arrangement; or117
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(C) A temporary help contracting firm as defined in Code Section 34-8-46.118
(12) 'Professional employer services' means the service of entering into co-employment119
relationships in which all or a majority of the employees providing services to a client are120
covered employees pursuant to a professional employer agreement.121
(13) 'Registrant' means a PEO registered with the department pursuant to Code122
Section 34-11-2.123
34-11-2.124
(a) Beginning July 1, 2027, except as otherwise provided in this chapter, no person shall125
provide, advertise, or otherwise hold itself out as providing professional employer services126
in this state, unless such person is registered with the department in accordance with this127
chapter. The department shall begin accepting applications for registration no later than128
January 2, 2026.129
(b) Each applicant for registration shall provide the department with the following:130
(1) The name or names under which the PEO conducts business;131
(2) The address of the principal place of business of the PEO;132
(3) The address of each office, if any, it maintains in this state;133
(4) The PEO's taxpayer or employer identification number;134
(5) A list by jurisdiction of each name under which the PEO has operated in the135
preceding two years;136
(6) A statement of ownership, which shall include the name and address of any person137
that, individually or in a business relationship with one or more other persons, owns or138
controls at least 25 percent of the equity interests of the PEO;139
(7) A statement of management, which shall include the name of any person who serves140
as chief executive officer, president, or secretary or otherwise has been empowered with141
the authority to act as an officer of the PEO; and142
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(8) A financial statement, prepared in accordance with generally accepted accounting143
principles by an independent, certified public accountant licensed to practice in the144
jurisdiction in which such accountant is located. A PEO group may submit combined or145
consolidated financial statements to meet the requirements of this paragraph. A PEO that146
has not had sufficient operating history to be able to provide such records shall meet the147
financial requirements set forth in this Code section and present financial statements as148
requested by the department.149
(c) In the event a PEO not registered in this state becomes knowledgeable that a client has150
covered employees in this state:151
(1) The PEO shall notify the department within 30 days of such knowledge and file a152
limited registrant application under subsection (f) of this Code section; or153
(2) If the number of covered employees exceeds 50, the department may allow for a154
temporary registration while registration applications are being prepared and evaluated. 155
In its evaluation for such temporary registration, the department may consider whether156
the PEO is currently registered or licensed in another state and if temporary registration157
is in the best interests of the covered employees in this state.158
(d) A registrant shall renew its registration annually by making a filing in a form159
determined by the department, which shall provide for the registrants to notify the160
department of any material changes in the information provided in its most recent161
registration filing. A registrant's existing registration shall remain in effect while such162
renewal application is under review.163
(e) A PEO group applying for renewal may satisfy the registration and financial reporting164
requirements of this chapter by filing combined or consolidated filings, provided that each165
member of the PEO group attests to being responsible for meeting the requirements set166
forth in this chapter.167
(f) A PEO shall be eligible to be a limited registrant if such PEO submits a request for168
limited registration on a form provided by the department and the department finds that169
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such PEO is domiciled outside this state and is licensed or registered as a professional170
employer organization in another state. A limited registrant shall not maintain an office171
in this state or have more than 50 covered employees employed or domiciled in this state172
at any time. Limited registrants shall be registered for a maximum period of one year and173
may be considered for renewal as a limited registrant as set forth by the department.174
(g) The department shall maintain a directory of professional employer organizations175
registered under this chapter and shall make such directory readily available on the176
department's public website and by any other means deemed appropriate by the department.177
(h) The department shall, to the extent practicable, accept electronic filings, including, but178
not limited to, applications, documents, reports, and other filings required under this179
chapter. The department may provide for the acceptance of electronic filings and other180
assurance by an independent and qualified assurance organization approved by the181
department that provides satisfactory assurance of compliance and security. The182
department may authorize a PEO to agree that such an approved assurance organization183
may act on the PEO's behalf in complying with the registration requirements of this184
chapter.185
(i) All records, reports, and other information obtained from or on behalf of a PEO, except186
to the minimum extent necessary for the proper administration by the department or to187
comply with the provisions of Article 4 of Chapter 18 of Title 50, relating to open records,188
shall be confidential and shall not be published or open to public inspection other than to189
public employees in the performance of their official duties.190
34-11-3.191
(a) The Commissioner is authorized to assess and collect in advance, and persons so192
assessed shall pay in advance to the Commissioner, fees for the initial and renewal193
registration of a PEO, initial and renewal registration of a PEO group, and limited and194
temporary registration of a PEO or a PEO group.195
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(b) The amount of the fees provided for in subsection (a) of this Code section shall be196
limited as follows:197
(1) The initial registration fee of a PEO shall not exceed $500.00, and the renewal198
registration fee of a PEO shall not exceed $250.00;199
(2) The initial registration fee of a PEO group shall not exceed $500.00 per group200
member, and the renewal registration fee of a PEO group shall not exceed $250.00 per201
group member;202
(3) The limited registration fee of a PEO shall not exceed $250.00, and the limited203
registration fee of a PEO group shall not exceed $250.00 per group member;204
(4) The temporary registration fee of a PEO shall not exceed $250.00, and the temporary205
registration fee of a PEO group shall not exceed $250.00 per group member; and206
(5) Such fees shall not exceed the amount reasonably necessary for the registration and207
regulation of professional employer organizations.208
34-11-4.209
Any applicant, either for an initial registration or a renewal, shall submit financial210
statements, in accordance with paragraph (8) of subsection (b) of Code Section 34-11-2,211
that prove that the applicant has positive working capital.212
34-11-5.213
(a) It shall be unlawful for any person to use the term 'PEO,' 'professional employer214
organization,' 'staff leasing,' 'staff leasing company,' 'registered staff leasing company,'215
'employee leasing,' 'employee leasing company,' 'administrative employer,' or any other216
title deemed by the department to be representative of professional employer services and217
to provide professional employer services without being registered as a PEO with the218
department.219
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(b) It shall be unlawful for any person to knowingly provide false or otherwise fraudulent220
information to the department in support of any application for registration or renewal or221
in any report required under this chapter.222
(c) Any complaints regarding a professional employer organization shall be filed with the223
department, and any complaints filed with the Department of Labor shall be forwarded to224
the department; provided, however, that the department and the Department of Labor shall225
cooperate in the documentation, investigation, and resolution of any complaints received226
and in any disciplinary actions.227
34-11-6.228
(a) In a co-employment relationship:229
(1) The client is entitled to enforce the rights and obligated to provide and perform the230
employer obligations allocated to such client by the professional employer agreement and231
this chapter;232
(2) The client is entitled to enforce any right and obligated to perform any obligation of233
an employer not specifically allocated to the PEO in the professional employer agreement234
or this chapter;235
(3) The rights, duties, and obligations of the PEO as co-employer with respect to any236
covered employee shall be limited to those arising pursuant to the professional employer237
agreement and this chapter during the term of the co-employment relationship with the238
PEO of such covered employee;239
(4) Unless otherwise expressly agreed by the PEO and the client in a professional240
employer agreement, the client retains the exclusive right to direct and control covered241
employees as is necessary to conduct the client's business, to discharge any of the client's242
fiduciary responsibilities, or to comply with any licensure, regulatory, or statutory243
requirements applicable to the client or covered employees; and244
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(5) For purposes of any law of this state where employer coverage and employee245
eligibility is determined based on the number of covered employees employed by the246
employer, the client as an employer shall be required to count only the covered247
employees of the client, and not the employees of other clients of the PEO or of the PEO248
itself.249
(b) Except as specifically provided in this chapter, the co-employment relationship250
between the client and the PEO, and between each co-employer and each covered251
employee, shall be governed by a professional employer agreement. Each professional252
employer agreement shall provide for the following:253
(1) The allocation of rights, duties, and obligations of each co-employer for each covered254
employee;255
(2) The allocation of rights, duties, and obligations to the PEO regarding payment of256
wages. The PEO shall pay wages to covered employees; shall withhold, collect, and257
remit payroll and unemployment taxes; and may make payments for employee benefits. 258
Such payment of wages shall not be interpreted as to include any obligation between a259
client and a covered employee for payments beyond or in addition to the covered260
employee's salary, draw, or regular rate of pay, including, but not limited to, severance261
pay, deferred compensation, profit sharing, or vacation, sick, or other paid time off pay,262
unless the PEO has expressly agreed to assume liability for such payments in the263
professional employer agreement;264
(3) A right to hire, discipline, and terminate a covered employee shall be allocated to265
both the client and the PEO; provided, however, that the PEO's right shall be limited to266
such employment decisions as may be necessary to fulfill the PEO's responsibilities under267
this chapter and a valid professional employer agreement; and268
(4) The responsibility to purchase and obtain adequate workers' compensation coverage269
for covered employees shall be specifically allocated to either the client or the PEO as270
provided for in Code Section 34-11-9.271
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(c) A PEO shall provide written notice to each covered employee whose co-employment272
relationship is made effective by a professional employer agreement of the general nature273
of the co-employment relationship between and among the PEO, the client, and such274
covered employee.275
(d) Except to the extent otherwise provided by the professional employer agreement:276
(1) A client shall be solely responsible for:277
(A) The quality, adequacy, or safety of the goods produced or sold or services278
performed in the client's business; and279
(B) Directing, supervising, training, and controlling the work of covered employees280
with respect to the client's business activities, and the acts, errors, or omissions of such281
covered employees with regard to such activities;282
(2) A client shall not be liable for the acts, errors, or omissions of a PEO or of a covered283
employee when such covered employee is acting under the express direction and control284
of the PEO;285
(3) A PEO shall not be liable for the acts, errors, or omissions of a client or of a covered286
employee when such covered employee is acting under the express direction and control287
of the client;288
(4) Nothing in this subsection shall serve to limit any contractual liability or obligation289
specifically provided in the professional employer agreement; and290
(5) A covered employee is not an employee of the PEO for purposes of general liability291
insurance, fidelity bonds, surety bonds, employer's liability which is not covered by292
workers' compensation, or liquor liability insurance carried by the PEO solely as the293
result of being a covered employee of a PEO unless covered employees are included by294
specific reference in the professional employer agreement and applicable prearranged295
employment contract, insurance contract, or bond.296
(e) A PEO registered with the department and in compliance with this chapter shall not be297
required to obtain:298
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(1) A license as an agent, subagent, or counselor, provided that such PEO is not selling,299
soliciting, or negotiating insurance outside of a professional employer agreement as300
excluded in paragraph (9) of subsection (b) of Code Section 33-23-1;301
(2) A license as an administrator, provided that such PEO is not administering insurance302
outside of a professional employer agreement as excluded in paragraph (14) of303
subsection (b) of Code Section 33-23-100; or304
(3) A certificate of authority to transact insurance, provided that such PEO is not selling,305
soliciting, negotiating, administering, inducing, or effectuating insurance outside of a306
professional employer agreement.307
(f) For purposes of any tax collected by the state or a county, municipality, or other308
political subdivision thereof:309
(1) A covered employee whose goods or services are subject to sales tax shall be deemed310
the employee of a client for purposes of collecting and levying sales tax on the goods311
produced or services performed by the covered employee. Nothing contained in this312
chapter shall relieve a client of any sales tax liability with respect to its goods or services;313
(2) Any tax or assessment imposed upon professional employer services or any business314
license or other fee which is based upon gross receipts shall allow a deduction from the315
gross income or receipts of the business derived from performing professional employer316
services that is equal to that portion of the fee charged to a client that represents the actual317
cost of wages and salaries, benefits, workers' compensation, payroll taxes, withholding,318
or other assessments paid to or on behalf of a covered employee by the PEO under a319
professional employer agreement;320
(3) Any tax assessed or assessment or mandated expenditure on a per capita or per321
employee basis shall be assessed against the client for covered employees and against the322
professional employer organization for its employees who are not covered employees of323
a client. Benefits or monetary consideration meeting the requirements of mandates324
imposed on a client that are received by covered employees through the PEO either325
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through payroll or through benefit plans sponsored by the PEO shall be credited against326
the client's obligation to fulfill such mandates; and327
(4) In the case of a tax or an assessment imposed or calculated upon the basis of total328
payroll, the professional employer organization shall be eligible to apply any small329
business allowance or exemption available to the client for the covered employees for the330
purpose of computing such tax or assessment.331
34-11-7.332
(a) A professional employer agreement shall have no effect on existing collective333
bargaining agreements. Nothing in this chapter shall alter the rights or obligations of any334
client, professional employer organization, or worksite employee under the federal335
National Labor Relations Act or any state law.336
(b) Nothing in this chapter or in any professional employer agreement shall:337
(1) Diminish, abolish, or remove rights of a covered employee to a client or obligations338
of such client to a covered employee existing prior to the effective date of a professional339
employer agreement;340
(2) Affect, modify, or amend any contractual relationship or restrictive covenant between341
a covered employee and any client in effect at the time a professional employer342
agreement becomes effective;343
(3) Prohibit or amend any contractual relationship or restrictive covenant that is entered344
into subsequently between a client and a covered employee, provided that a PEO shall345
bear no liability arising from any such contractual relationship or restrictive covenant346
unless the PEO and the client have each expressly agreed to such an exception, which347
shall become an addendum to the professional employment agreement; or348
(4) Create any new or additional enforceable right of a covered employee against a PEO349
that is not expressly provided by the professional employer agreement or this chapter.350
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(c) Nothing contained in this chapter or any professional employer agreement shall affect,351
modify, or amend any state, local, or federal licensing, registration, or certification352
requirement applicable to any client or covered employee or affect, modify, or amend a353
client's or covered employee's duties and obligations with respect to workplace safety.354
(d) A covered employee of a client who is required by law or rule or regulation355
promulgated thereunder to be licensed, registered, or certified shall be deemed to be solely356
an employee of the client for purposes of such license, registration, or certification357
requirement.358
(e) A PEO shall not be deemed to engage in any occupation, trade, profession, or other359
activity that is subject to licensing, registration, or certification requirements, or is360
otherwise regulated by a governmental entity, solely by entering into and maintaining a361
co-employment relationship with a covered employee who is subject to such requirements362
or regulation.363
(f) A client shall have the sole right of direction and control of the professional or licensed364
activities of covered employees and the client's business. Such covered employees and365
clients shall remain subject to regulation by the regulatory or governmental entity366
responsible for licensing, registration, or certification of such covered employees or clients.367
(g) For purposes of determination of tax credits and other economic incentives provided368
by the state or any other governmental entity and based on employment, covered369
employees shall be deemed employees solely of the client. A client shall be entitled to the370
benefit of any tax credit, economic incentive, or other benefit arising as the result of the371
employment of covered employees of such client. Notwithstanding that the PEO shall be372
the W-2 reporting employer, the client shall continue to qualify for any such benefit,373
incentive, or credit. If the grant or amount of any such incentive is based on number of374
employees, then each client shall be treated as employing only those covered employees. 375
Covered employees working for other clients of the PEO shall not be counted. Each PEO376
shall provide, upon request by a client or state agency, employment information reasonably377
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required by the state agency responsible for the administration of any such tax credit or378
economic incentive and necessary to support any request, claim, application, or other action379
by a client seeking any such tax credit or economic incentive.380
(h) With respect to a bid, contract, purchase order, or agreement entered into with the state381
or a political subdivision of the state, a client's status as a small business certified as a382
minority business enterprise, women owned business, or veteran owned business or as a383
historically underutilized business shall not be affected because such client has a384
professional employment agreement with a PEO or otherwise transacts business with a385
PEO.386
34-11-8.387
(a) A client and a PEO operating under a professional employer agreement shall each be388
deemed an employer for the purposes of sponsoring retirement and welfare benefit plans389
for its covered employees.390
(b) A fully insured welfare benefit plan offered to the covered employees of a PEO shall391
be treated as a single employer welfare benefit plan. A plan shall be considered fully392
insured only if all benefits payable are guaranteed under a contract or policy of insurance393
issued by an insurer licensed or otherwise authorized to transact the business of insurance394
in this state pursuant to Title 33.395
(c) For purposes of Chapter 60 of Title 33, the 'Small Business Employee Choice of396
Benefits Health Insurance Plan Act,' a PEO shall be considered the employer of all of its397
covered employees, and all covered employees of one or more clients who are participating398
in any health benefit plan sponsored by such PEO shall be considered employees of that399
PEO.400
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34-11-9.401
(a) A professional employer agreement shall specify the party responsible for obtaining 402
workers' compensation coverage from a carrier authorized to do business in this state in403
compliance with Chapter 9 of this title for covered employees.404
(b) A professional employer agreement shall specify the party responsible for obtaining405
workers' compensation coverage from a carrier authorized to do business in this state in406
compliance with Chapter 9 of this title for directly employed workers of the client,407
provided that such agreement identifies which directly employed workers of the client are408
included under such coverage.409
(c) Workers' compensation coverage for the covered employees of a client and for any 410
directly employed workers of the client identified in the professional employer agreement411
as provided for in subsection (b) of this Code section shall be obtained as follows:412
(1) In the voluntary market, by either:413
(A) The client, through a standard workers' compensation policy or through duly414
authorized self-insurance; or415
(B) The PEO, through a duly authorized self-insurance program, a master policy issued416
to the PEO by a carrier authorized to do business in this state, or a multiple coordinated417
policy issued by a carrier authorized to do business in this state in the name of the PEO418
or the client. A PEO authorized to self-insure or a carrier providing coverage through419
the PEO under this subparagraph shall report to the appropriate state and rating420
authorities such client information as is necessary to maintain the client's experience421
rating; or422
(2) In the residual market, by either:423
(A) The client, through a residual market policy; or424
(B) The PEO, through a multiple coordinated policy in the name of either the PEO or425
the client. A PEO obtaining coverage under this subparagraph shall report to the426
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appropriate state and rating authorities the client based information as is necessary to427
maintain the client's experience rating.428
(d) The protection of the exclusive remedy provision of Chapter 9 of this title shall apply429
to the PEO, client, covered employees, and directly employed workers of the client430
irrespective of which co-employer obtains such workers' compensation coverage. The PEO431
and the client shall be considered co-employers for purposes of workers' compensation432
coverage of covered employees and any directly employed workers of the client identified433
in the professional employer agreement as provided for in subsection (b) of this Code434
section. The client shall be considered the sole employer for any directly employed435
workers of the client outside of the professional employer agreement.436
34-11-10.437
(a) Upon finding that a PEO, an owner or manager of a PEO, or a person offering438
professional employer services has committed a violation of a provision of Title 33; Code439
Section 34-11-2, 34-11-3, 34-11-4, or 34-11-5; or the rules and regulations or an order of440
the Commissioner, in addition to all other penalties provided for under Title 33, the441
Commissioner shall have the authority to:442
(1) Deny an application for registration or refuse to renew a registration;443
(2) Place any registration on probation for any time period and subject to conditions;444
(3) Suspend, revoke, or restrict a registration;445
(4) Impose an administrative penalty in an amount not to exceed $2,000.00 for each and446
every violation; and447
(5) Issue an order to cease and desist as provided for in Code Section 33-2-24.448
(b) Except as provided for in subsection (a) of this Code section, the Commissioner of449
Labor is authorized to take action against any person in violation of this title or any rule or450
regulation promulgated under this title.451
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(c) The hearing and any administrative review thereof regarding an action taken pursuant452
to this Code section shall be conducted in accordance with Chapter 13 of Title 50, the453
'Georgia Administrative Procedure Act.'454
34-11-11.455
Nothing contained in this chapter shall affect the rights and obligations established under456
Chapter 8 of Title 34, the 'Employment Security Law,' or any rules or regulations457
promulgated pursuant to such chapter.458
34-11-12.459
This chapter shall not be applicable to:460
(1) Arrangements wherein a person, whose principal business activity is not entering into461
professional employer agreements and which does not hold itself out as a PEO, shares462
employees with a commonly owned corporation, trade, or business within the meaning463
of Section 414(b) and (c) of the federal Internal Revenue Code of 1986; or464
(2) Temporary help contracting firms as defined in Code Section 34-8-46.465
34-11-13.466
The Commissioner and the Commissioner of Labor shall adopt such rules and regulations467
as are reasonable and necessary to effectuate the provisions of this chapter. Reserved."468
PART III469
SECTION 3-1.470
Said title is further amended by revising Code Section 34-7-6, relating to professional471
employer organizations and rights, powers, and responsibility, as follows:472
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"34-7-6.
473
(a) As used in this Code section, the term 'professional employer organization' means an
474
employee leasing company as defined in Code Section 34-8-32 that has established a475
coemployment relationship with another employer, pays the wages of the employees of the476
coemployer, reserves a right of direction and control over the employees of the477
coemployer, and assumes responsibility for the withholding and payment of payroll taxes478
of the coemployer.479
(b) A professional employer organization may collect information to evaluate costs; may480
obtain life, accident and sickness, disability income, workers' compensation, and other481
types of insurance coverage; may establish retirement plans; may have other types of482
employee benefits; and may discuss such benefits with prospective coemployers and their483
employees.484
(c) A coemployer of a professional employer organization shall retain sufficient direction485
and control over the employees involved in a coemployment relationship as is necessary486
to conduct its business operations and fulfill its obligations to such employees. Unless487
otherwise agreed in writing, such coemployer shall be considered to be the sole employer488
of such employees for licensing purposes, provided that nothing contained in this Code489
section shall be deemed to prohibit a professional employer organization and its490
coemployer from agreeing that the professional employer organization shall be considered491
to be an employer for licensing purposes. The professional employer organization shall492
give written notice of such an agreement to the appropriate licensing agency and to the493
employees involved.494
(d) It is the intent of this Code section that professional employer organizations shall be495
considered to be employers under this title and are required to comply with the provisions496
of Code Sections 34-8-32, 34-8-34, and 34-8-172. Professional employer organizations497
and their coemployer clients are entitled to exclusive remedy under Code Section 34-9-11.498
Reserved."499
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SECTION 3-2.
500
Said title is further amended by revising Code Section 34-8-32, relating to employee leasing501
company, as follows:502
"34-8-32.503
(a) As used in this chapter, the term 'employee leasing company' means an independently
504
established business entity which engages in the business of providing leased employees505
to any other employing unit under the following conditions:506
(1) Negotiates with clients or customers for such matters as time, place, type of work,507
working conditions, quality, and price of service;508
(2) Determines assignments of individuals to its clients or customers, even if the509
individuals retain the right to refuse specific assignments;510
(3) Sets the rate of pay of the individuals, whether or not through negotiation;511
(4) Pays the individuals from its accounts; and512
(5) Hires and terminates individuals who perform services for the clients or customers.513
(b) Individuals performing services for an employee leasing company shall be considered514
employees of the employee leasing company. The employee leasing company shall file515
required reports in accordance with regulations prescribed by the Commissioner and pay516
contributions on wages paid to such employees.517
(c) Individuals who perform services for temporary help contracting firms as that term is518
defined in Code Section 34-8-46 shall not be considered employees of an employee leasing519
company. Reserved."520
SECTION 3-3.521
Said title is further amended by revising Code Section 34-8-34, relating to employing unit,522
as follows:523
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"34-8-34.
524
As used in this chapter, the term 'employing unit' means any individual, the legal525
representative of a deceased individual, or any type of organization, including any526
partnership, association, trust, estate, joint-stock company, insurance company, or527
corporation, whether domestic or foreign, employee leasing company
professional528
employer organization as defined in Code Section 34-11-1, common paymaster, or the529
receiver, trustee in bankruptcy, trustee, or successor thereof which has or had in its employ530
one or more individuals performing services for it within this state. Each individual531
performing services within this state for any employing unit which maintains two or more532
separate establishments within this state shall be deemed to be employed by a single533
employing unit for all the purposes of this chapter. Each individual employed to perform534
or to assist in performing the work of any agent or employee of an employing unit shall be535
deemed to be employed by such employing unit for all the purposes of this chapter,536
whether such individual was hired or paid directly by such employing unit or by such agent537
or employee, provided the employing unit had actual or constructive knowledge of such538
work."539
SECTION 3-4.540
Said title is further amended by revising Code Section 34-8-172, relating to surety bond541
required of employee leasing company, as follows:542
"34-8-172.543
The Commissioner shall require any employee leasing company, as defined in Code544
Section 34-8-32, professional employer organization or PEO group, as such terms are545
defined in Code Section 34-11-1, to post a surety bond or such equivalent financial546
securities as approved by the Commissioner in such an amount as needed to cover the total547
of any potential tax liability which may reasonably be expected to be incurred by such548
employer. In the event an employee leasing company a professional employer organization549
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or PEO group is unable to procure such bond or security, the employee leasing company550
the professional employer organization or PEO group may report such employees as being551
in the employment of its client employers, notwithstanding any provision of Code552
Section 34-8-32 to the contrary."553
SECTION 3-5.554
Said title is further amended by revising subsection (c) of Code Section 34-8-195, relating555
to determination of eligibility for unemployment benefits generally, eligibility while in556
training, and deductions and withholdings from compensation, as follows:557
"(c) An individual shall not be deemed to be unemployed in any week such individual558
refuses an intermittent or temporary assignment without good cause when the assignment559
offered is comparable to previous work or assignments performed by the individual or560
meets the conditions of employment previously agreed to between the individual and the561
employer. Such individual may be considered unemployed with respect to any week an562
assignment or work is not offered by the employer; provided, however, that an employee563
of a temporary help contracting firm, an employee leasing company, or a professional564
employer organization as defined in Code Section 34-7-6 34-11-1 will be presumed to have565
voluntarily left employment without good cause if the employee does not contact the566
temporary help contracting firm, employee leasing company, or professional employer567
organization for reassignment upon completion of an assignment; provided, further, that568
such failure to contact the temporary help contracting firm, employee leasing company, or569
professional employer organization will not be considered a voluntary departure from570
employment unless the employee has been advised in writing of the obligation to contact571
such employer upon completion of assignments and has been advised in writing that572
unemployment benefits may be denied for failure to do so."573
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SECTION 3-6.
574
Said title is further amended by revising subsection (c) of Code Section 34-9-11, relating to575
exclusivity of rights and remedies granted to employee under chapter and immunity granted576
to construction design professionals, as follows:577
"(c) The immunity provided by this subsection shall apply and extend to the businesses578
using the services of a temporary help contracting firm, as such term is defined in Code579
Section 34-8-46, or an employee leasing company
a professional employer organization,580
as such term is defined in Code Section 34-8-32 34-11-1, when the benefits required by this581
chapter are provided by either the temporary help contracting firm or the employee leasing582
company professional employer organization or the business using the services of either583
such firm or company organization. A temporary help contracting firm or an employee584
leasing company a professional employer organization shall be deemed to be a statutory585
employer for the purposes of this chapter."586
PART IV587
SECTION 4-1.588
This Act shall become effective upon its approval by the Governor or upon its becoming law589
without such approval.590
SECTION 4-2.591
All laws and parts of laws in conflict with this Act are repealed.592
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