House Bill 250 (COMMITTEE SUBSTITUTE)
By: Representatives Taylor of the 173rd, Cheokas of the 151st, Jones of the 25th, Williams of
the 148th, and Martin of the 49th
A BILL TO BE ENTITLED
AN ACT
To amend Titles 33 and 34 of the Official Code of Georgia Annotated, relating to insurance
and labor and industrial relations, respectively, so as to provide for the registration and
regulation of professional employer organizations; to provide for certain regulatory powers,
duties, and authority of the Commissioner of Insurance over professional employer
organizations; to exempt such organizations from certain licensing requirements; to provide
for definitions; to provide for the registration of such organizations; to provide for certain
fees; to provide for the restriction of the use of certain terms; to provide for complaints; to
provide for coordination with the Commissioner of Labor; to provide for a co-employment
relationship; to provide for no effect on existing collective bargaining agreements or other
contracts; to provide for legislative construction; to clarify rights, duties, and obligations of
clients and professional employer organizations; to clarify employer and employee statuses;
to clarify tax duties, obligations, and credits; to provide for disciplinary actions; to provide
for the applicability of Chapter 8 of Title 34, the "Employment Security Law"; to provide for
rules and regulations; to repeal obsolete provisions; to provide for the posting of a surety
bond; to provide for conforming changes; to provide for a short title; to provide for related
matters; to provide for an effective date; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
PART I
SECTION 1-1.
Title 33 of the Official Code of Georgia Annotated, relating to insurance, is amended in
subsections (b) and (c) of Code Section 33-23-1, relating to definitions relative to agents,
agencies, subagents, counselors, and adjusters, as follows:
"(b) The definitions of agent, subagent, and counselor in subsection (a) of this Code
section shall not be deemed to include:
(1) An attorney at law admitted to practice in this state, when handling the collections
of premiums or advising clients as to insurance as a function incidental to the practice of
law or who adjusts losses which are incidental to the practice of his or her profession;
(2) Any representative of ocean marine insurers;
(3) Any representative of farmers' mutual fire insurance companies as defined in
Chapter 16 of this title;
(4) A salaried employee of a credit or character reporting firm or agency not engaged in
the insurance business who may, however, report to an insurer;
(5) A person acting for or as a collection agency;
(6) A person who makes the salary deductions of premiums for employees or, under a
group insurance plan, a person who serves the master policyholder of group insurance in
administering the details of such insurance for the employees or debtors of the master
policyholder or of a firm or corporation by which the person is employed and who does
not receive insurance commissions for such service; provided, further, that an
administration fee not exceeding 5 percent of the premiums collected paid by the insurer
to the administration office shall not be construed to be an insurance commission;
(7) Persons exempted from licensure as provided in subsection (h) of Code
Section 33-23-4; <del>or
</del>
(8) An individual who collects claim information from, or furnishes claim information
to, insureds or claimants, who conducts data entry, and who enters data into an automated
claims adjudication system, provided that the individual is an employee of a licensed
independent adjuster or its affiliate where no more than 25 such persons are under the
supervision of one licensed independent adjustor or licensed agent; <ins>or
(9) A professional employer organization providing professional employer services to
a client or covered employee pursuant to a professional employer agreement, as such
terms are defined in Code Section 34-11-1, to the extent that such organization collects
information from a client or covered employee; obtains, offers, or provides life, accident
and sickness, disability income, and other types of insurance coverage for a client or
covered employee; establishes a retirement plan for a client or covered employee; and has
or obtains, offers, or provides other types of employee benefits and discusses such
benefits with a client or covered employee.
</ins> (c) In addition to paragraphs (2) through <del>(8)</del> <ins>(9)</ins> of subsection (b) of this Code section, the
definitions of public adjuster, independent adjuster, and adjuster in subsection (a) of this
Code section shall not be deemed to include an attorney admitted to practice law in this
state."
SECTION 1-2.
Said title is further amended in subsection (b) of Code Section 33-23-100, relating to
definitions, exemptions, and applicability of Code Section 33-24-59.5 and 33-24-59.14, by
striking "or" at the end of paragraph (12), replacing the period at the end of paragraph (13)
with "; or", and adding a new paragraph to read as follows:
<ins>"(14) A professional employer organization to the extent that such organization
administers insurance or certain claims pursuant to a professional employer agreement,
as such terms are defined in Code Section 34-11-1."
</ins>
PART II
SECTION 2-1.
This Act shall be known and may be cited as the "Better Small Business Employee Benefits
Act."
SECTION 2-2.
Title 34 of the Official Code of Georgia Annotated, relating to labor and industrial relations,
is amended by revising Chapter 11, which is reserved, as follows:
"CHAPTER 11
34-11-1.
<ins>As used in this chapter, the term:
(1) 'Client' means any person who enters into a professional employer agreement with
a professional employer organization.
(2) 'Co-employer' means either a professional employer organization or a client.
(3) 'Co-employment relationship' means an arrangement wherein the rights, duties, and
obligations of an employer which arise out of an employment arrangement are allocated
between the parties to such arrangement.
(4) 'Commissioner' means the Commissioner of Insurance.
(5) 'Covered employee' means an individual working under a co-employment
relationship between a PEO and a client pursuant to a professional employer agreement
subject to this chapter.
(6) 'Department' means the Department of Insurance.
(7) 'Limited registrant' means a PEO that:
(A) Is domiciled and registered or licensed in another state;
</ins>
<ins>(B) Has 50 or fewer covered employees; and
(C) Maintains no principal place of business in this state.
(8) 'PEO group' means two or more PEO entities that are majority owned or commonly
controlled by the same entity or parent company.
(9) 'Person' means any individual, corporation, company, association, partnership,
limited liability company, or other form of legally recognized entity.
(10) 'Professional employer agreement' means a written contract between a client and a
PEO that provides:
(A) For the co-employment of covered employees;
(B) An express allocation of employer rights and obligations regarding covered
employees between the client and the PEO; and
(C) That the PEO and the client assume the responsibilities required by this chapter.
(11) 'Professional employer organization' or 'PEO' means any person engaged in the
business of providing professional employer services. Such term is not required to be in
the title of the business. Such term shall include a staff leasing company, registered staff
leasing company, employee leasing company, administrative employer, or any other
similar name, provided that the person is engaged in the business of providing
professional employer services. Such term shall not include:
(A) A person, whose principal business activity is not entering into professional
employer agreements and which does not hold itself out as a PEO, that shares
employees with a commonly controlled corporation, trade, or business within the
meaning of Section 414(b) and (c) of the federal Internal Revenue Code of 1986;
(B) A person in an independent contractor arrangement by which such person assumes
responsibility for the goods produced or services performed by such person or such
person's agents and retains and exercises primary direction and control over the work
performed by the individuals whose goods or services are supplied under such
arrangement; or
</ins>
<ins>(C) A temporary help contracting firm as defined in Code Section 34-8-46.
(12) 'Professional employer services' means the service of entering into co-employment
relationships in which all or a majority of the employees providing services to a client are
covered employees pursuant to a professional employer agreement.
(13) 'Registrant' means a PEO registered with the department pursuant to Code
Section 34-11-2.
34-11-2.
(a) Beginning July 1, 2027, except as otherwise provided in this chapter, no person shall
provide, advertise, or otherwise hold itself out as providing professional employer services
in this state, unless such person is registered with the department in accordance with this
chapter. The department shall begin accepting applications for registration no later than
January 2, 2026.
(b) Each applicant for registration shall provide the department with the following:
(1) The name or names under which the PEO conducts business;
(2) The address of the principal place of business of the PEO;
(3) The address of each office, if any, it maintains in this state;
(4) The PEO's taxpayer or employer identification number;
(5) A list by jurisdiction of each name under which the PEO has operated in the
preceding two years;
(6) A statement of ownership, which shall include the name and address of any person
that, individually or in a business relationship with one or more other persons, owns or
controls at least 25 percent of the equity interests of the PEO;
(7) A statement of management, which shall include the name of any person who serves
as chief executive officer, president, or secretary or otherwise has been empowered with
the authority to act as an officer of the PEO; and
</ins>
<ins>(8) A financial statement, prepared in accordance with generally accepted accounting
principles by an independent, certified public accountant licensed to practice in the
jurisdiction in which such accountant is located. A PEO group may submit combined or
consolidated financial statements to meet the requirements of this paragraph. A PEO that
has not had sufficient operating history to be able to provide such records shall meet the
financial requirements set forth in this Code section and present financial statements as
requested by the department.
(c) In the event a PEO not registered in this state becomes knowledgeable that a client has
covered employees in this state:
(1) The PEO shall notify the department within 30 days of such knowledge and file a
limited registrant application under subsection (f) of this Code section; or
(2) If the number of covered employees exceeds 50, the department may allow for a
temporary registration while registration applications are being prepared and evaluated.
In its evaluation for such temporary registration, the department may consider whether
the PEO is currently registered or licensed in another state and if temporary registration
is in the best interests of the covered employees in this state.
(d) A registrant shall renew its registration annually by making a filing in a form
determined by the department, which shall provide for the registrants to notify the
department of any material changes in the information provided in its most recent
registration filing. A registrant's existing registration shall remain in effect while such
renewal application is under review.
(e) A PEO group applying for renewal may satisfy the registration and financial reporting
requirements of this chapter by filing combined or consolidated filings, provided that each
member of the PEO group attests to being responsible for meeting the requirements set
forth in this chapter.
(f) A PEO shall be eligible to be a limited registrant if such PEO submits a request for
limited registration on a form provided by the department and the department finds that
</ins>
<ins>such PEO is domiciled outside this state and is licensed or registered as a professional
employer organization in another state. A limited registrant shall not maintain an office
in this state or have more than 50 covered employees employed or domiciled in this state
at any time. Limited registrants shall be registered for a maximum period of one year and
may be considered for renewal as a limited registrant as set forth by the department.
(g) The department shall maintain a directory of professional employer organizations
registered under this chapter and shall make such directory readily available on the
department's public website and by any other means deemed appropriate by the department.
(h) The department shall, to the extent practicable, accept electronic filings, including, but
not limited to, applications, documents, reports, and other filings required under this
chapter. The department may provide for the acceptance of electronic filings and other
assurance by an independent and qualified assurance organization approved by the
department that provides satisfactory assurance of compliance and security. The
department may authorize a PEO to agree that such an approved assurance organization
may act on the PEO's behalf in complying with the registration requirements of this
chapter.
(i) All records, reports, and other information obtained from or on behalf of a PEO, except
to the minimum extent necessary for the proper administration by the department or to
comply with the provisions of Article 4 of Chapter 18 of Title 50, relating to open records,
shall be confidential and shall not be published or open to public inspection other than to
public employees in the performance of their official duties.
34-11-3.
(a) The Commissioner is authorized to assess and collect in advance, and persons so
assessed shall pay in advance to the Commissioner, fees for the initial and renewal
registration of a PEO, initial and renewal registration of a PEO group, and limited and
temporary registration of a PEO or a PEO group.
</ins>
<ins>(b) The amount of the fees provided for in subsection (a) of this Code section shall be
limited as follows:
(1) The initial registration fee of a PEO shall not exceed $500.00, and the renewal
registration fee of a PEO shall not exceed $250.00;
(2) The initial registration fee of a PEO group shall not exceed $500.00 per group
member, and the renewal registration fee of a PEO group shall not exceed $250.00 per
group member;
(3) The limited registration fee of a PEO shall not exceed $250.00, and the limited
registration fee of a PEO group shall not exceed $250.00 per group member;
(4) The temporary registration fee of a PEO shall not exceed $250.00, and the temporary
registration fee of a PEO group shall not exceed $250.00 per group member; and
(5) Such fees shall not exceed the amount reasonably necessary for the registration and
regulation of professional employer organizations.
34-11-4.
Any applicant, either for an initial registration or a renewal, shall submit financial
statements, in accordance with paragraph (8) of subsection (b) of Code Section 34-11-2,
that prove that the applicant has positive working capital.
34-11-5.
(a) It shall be unlawful for any person to use the term 'PEO,' 'professional employer
organization,' 'staff leasing,' 'staff leasing company,' 'registered staff leasing company,'
'employee leasing,' 'employee leasing company,' 'administrative employer,' or any other
title deemed by the department to be representative of professional employer services and
to provide professional employer services without being registered as a PEO with the
department.
</ins>
<ins>(b) It shall be unlawful for any person to knowingly provide false or otherwise fraudulent
information to the department in support of any application for registration or renewal or
in any report required under this chapter.
(c) Any complaints regarding a professional employer organization shall be filed with the
department, and any complaints filed with the Department of Labor shall be forwarded to
the department; provided, however, that the department and the Department of Labor shall
cooperate in the documentation, investigation, and resolution of any complaints received
and in any disciplinary actions.
34-11-6.
(a) In a co-employment relationship:
(1) The client is entitled to enforce the rights and obligated to provide and perform the
employer obligations allocated to such client by the professional employer agreement and
this chapter;
(2) The client is entitled to enforce any right and obligated to perform any obligation of
an employer not specifically allocated to the PEO in the professional employer agreement
or this chapter;
(3) The rights, duties, and obligations of the PEO as co-employer with respect to any
covered employee shall be limited to those arising pursuant to the professional employer
agreement and this chapter during the term of the co-employment relationship with the
PEO of such covered employee;
(4) Unless otherwise expressly agreed by the PEO and the client in a professional
employer agreement, the client retains the exclusive right to direct and control covered
employees as is necessary to conduct the client's business, to discharge any of the client's
fiduciary responsibilities, or to comply with any licensure, regulatory, or statutory
requirements applicable to the client or covered employees; and
</ins>
<ins>(5) For purposes of any law of this state where employer coverage and employee
eligibility is determined based on the number of covered employees employed by the
employer, the client as an employer shall be required to count only the covered
employees of the client, and not the employees of other clients of the PEO or of the PEO
itself.
(b) Except as specifically provided in this chapter, the co-employment relationship
between the client and the PEO, and between each co-employer and each covered
employee, shall be governed by a professional employer agreement. Each professional
employer agreement shall provide for the following:
(1) The allocation of rights, duties, and obligations of each co-employer for each covered
employee;
(2) The allocation of rights, duties, and obligations to the PEO regarding payment of
wages. The PEO shall pay wages to covered employees; shall withhold, collect, and
remit payroll and unemployment taxes; and may make payments for employee benefits.
Such payment of wages shall not be interpreted as to include any obligation between a
client and a covered employee for payments beyond or in addition to the covered
employee's salary, draw, or regular rate of pay, including, but not limited to, severance
pay, deferred compensation, profit sharing, or vacation, sick, or other paid time off pay,
unless the PEO has expressly agreed to assume liability for such payments in the
professional employer agreement; and
(3) A right to hire, discipline, and terminate a covered employee shall be allocated to
both the client and the PEO; provided, however, that the PEO's right shall be limited to
such employment decisions as may be necessary to fulfill the PEO's responsibilities under
this chapter and a valid professional employer agreement.
(c) A PEO shall provide written notice to each covered employee whose co-employment
relationship is made effective by a professional employer agreement of the general nature
</ins>
<ins>of the co-employment relationship between and among the PEO, the client, and such
covered employee.
(d) Except to the extent otherwise provided by the professional employer agreement:
(1) A client shall be solely responsible for:
(A) The quality, adequacy, or safety of the goods produced or sold or services
performed in the client's business; and
(B) Directing, supervising, training, and controlling the work of covered employees
with respect to the client's business activities, and the acts, errors, or omissions of such
covered employees with regard to such activities;
(2) A client shall not be liable for the acts, errors, or omissions of a PEO or of a covered
employee when such covered employee is acting under the express direction and control
of the PEO;
(3) A PEO shall not be liable for the acts, errors, or omissions of a client or of a covered
employee when such covered employee is acting under the express direction and control
of the client;
(4) Nothing in this subsection shall serve to limit any contractual liability or obligation
specifically provided in the professional employer agreement; and
(5) A covered employee is not an employee of the PEO for purposes of general liability
insurance, fidelity bonds, surety bonds, employer's liability, or liquor liability insurance
carried by the PEO solely as the result of being a covered employee of a PEO unless
covered employees are included by specific reference in the professional employer
agreement and applicable prearranged employment contract, insurance contract, or bond.
(e) A PEO registered with the department and in compliance with this chapter shall not be
required to obtain:
(1) A license as an agent, subagent, or counselor, provided that such PEO is not selling,
soliciting, or negotiating insurance outside of a professional employer agreement as
excluded in paragraph (9) of subsection (b) of Code Section 33-23-1;
</ins>
<ins>(2) A license as an administrator, provided that such PEO is not administering insurance
outside of a professional employer agreement as excluded in paragraph (14) of
subsection (b) of Code Section 33-23-100; or
(3) A certificate of authority to transact insurance, provided that such PEO is not selling,
soliciting, negotiating, administering, inducing, or effectuating insurance outside of a
professional employer agreement.
(f) For purposes of any tax collected by the state or a county, municipality, or other
political subdivision thereof:
(1) A covered employee whose goods or services are subject to sales tax shall be deemed
the employee of a client for purposes of collecting and levying sales tax on the goods
produced or services performed by the covered employee. Nothing contained in this
chapter shall relieve a client of any sales tax liability with respect to its goods or services;
(2) Any tax or assessment imposed upon professional employer services or any business
license or other fee which is based upon gross receipts shall allow a deduction from the
gross income or receipts of the business derived from performing professional employer
services that is equal to that portion of the fee charged to a client that represents the actual
cost of wages and salaries, benefits, payroll taxes, withholding, or other assessments paid
to or on behalf of a covered employee by the PEO under a professional employer
agreement;
(3) Any tax assessed or assessment or mandated expenditure on a per capita or per
employee basis shall be assessed against the client for covered employees and against the
professional employer organization for its employees who are not covered employees of
a client. Benefits or monetary consideration meeting the requirements of mandates
imposed on a client that are received by covered employees through the PEO either
through payroll or through benefit plans sponsored by the PEO shall be credited against
the client's obligation to fulfill such mandates; and
</ins>
<ins>(4) In the case of a tax or an assessment imposed or calculated upon the basis of total
payroll, the professional employer organization shall be eligible to apply any small
business allowance or exemption available to the client for the covered employees for the
purpose of computing such tax or assessment.
34-11-7.
(a) A professional employer agreement shall have no effect on existing collective
bargaining agreements. Nothing in this chapter shall alter the rights or obligations of any
client, professional employer organization, or worksite employee under the federal
National Labor Relations Act or any state law.
(b) Nothing in this chapter or in any professional employer agreement shall:
(1) Diminish, abolish, or remove rights of a covered employee to a client or obligations
of such client to a covered employee existing prior to the effective date of a professional
employer agreement;
(2) Affect, modify, or amend any contractual relationship or restrictive covenant between
a covered employee and any client in effect at the time a professional employer
agreement becomes effective;
(3) Prohibit or amend any contractual relationship or restrictive covenant that is entered
into subsequently between a client and a covered employee, provided that a PEO shall
bear no liability arising from any such contractual relationship or restrictive covenant
unless the PEO and the client have each expressly agreed to such an exception, which
shall become an addendum to the professional employment agreement; or
(4) Create any new or additional enforceable right of a covered employee against a PEO
that is not expressly provided by the professional employer agreement or this chapter.
(c) Nothing contained in this chapter or any professional employer agreement shall affect,
modify, or amend any state, local, or federal licensing, registration, or certification
</ins>
<ins>requirement applicable to any client or covered employee or affect, modify, or amend a
client's or covered employee's duties and obligations with respect to workplace safety.
(d) A covered employee of a client who is required by law or rule or regulation
promulgated thereunder to be licensed, registered, or certified shall be deemed to be solely
an employee of the client for purposes of such license, registration, or certification
requirement.
(e) A PEO shall not be deemed to engage in any occupation, trade, profession, or other
activity that is subject to licensing, registration, or certification requirements, or is
otherwise regulated by a governmental entity, solely by entering into and maintaining a
co-employment relationship with a covered employee who is subject to such requirements
or regulation.
(f) A client shall have the sole right of direction and control of the professional or licensed
activities of covered employees and the client's business. Such covered employees and
clients shall remain subject to regulation by the regulatory or governmental entity
responsible for licensing, registration, or certification of such covered employees or clients.
(g) For purposes of determination of tax credits and other economic incentives provided
by the state or any other governmental entity and based on employment, covered
employees shall be deemed employees solely of the client. A client shall be entitled to the
benefit of any tax credit, economic incentive, or other benefit arising as the result of the
employment of covered employees of such client. Notwithstanding that the PEO shall be
the W-2 reporting employer, the client shall continue to qualify for any such benefit,
incentive, or credit. If the grant or amount of any such incentive is based on number of
employees, then each client shall be treated as employing only those covered employees.
Covered employees working for other clients of the PEO shall not be counted. Each PEO
shall provide, upon request by a client or state agency, employment information reasonably
required by the state agency responsible for the administration of any such tax credit or
</ins>
<ins>economic incentive and necessary to support any request, claim, application, or other action
by a client seeking any such tax credit or economic incentive.
(h) With respect to a bid, contract, purchase order, or agreement entered into with the state
or a political subdivision of the state, a client's status as a small business certified as a
minority business enterprise, women owned business, or veteran owned business or as a
historically underutilized business shall not be affected because such client has a
professional employment agreement with a PEO or otherwise transacts business with a
PEO.
34-11-8.
(a) A client and a PEO operating under a professional employer agreement shall each be
deemed an employer for the purposes of sponsoring retirement and welfare benefit plans
for its covered employees.
(b) A fully insured welfare benefit plan offered to the covered employees of a PEO shall
be treated as a single employer welfare benefit plan. A plan shall be considered fully
insured only if all benefits payable are guaranteed under a contract or policy of insurance
issued by an insurer licensed or otherwise authorized to transact the business of insurance
in this state pursuant to Title 33.
(c) For purposes of Chapter 60 of Title 33, the 'Small Business Employee Choice of
Benefits Health Insurance Plan Act,' a PEO shall be considered the employer of all of its
covered employees, and all covered employees of one or more clients who are participating
in any health benefit plan sponsored by such PEO shall be considered employees of that
PEO.
34-11-9.
(a) Upon finding that a PEO, an owner or manager of a PEO, or a person offering
professional employer services has committed a violation of a provision of Title 33; Code
</ins>
<ins>Section 34-11-2, 34-11-3, 34-11-4, or 34-11-5; or the rules and regulations or an order of
the Commissioner, in addition to all other penalties provided for under Title 33, the
Commissioner shall have the authority to:
(1) Deny an application for registration or refuse to renew a registration;
(2) Place any registration on probation for any time period and subject to conditions;
(3) Suspend, revoke, or restrict a registration;
(4) Impose an administrative penalty in an amount not to exceed $2,000.00 for each and
every violation; and
(5) Issue an order to cease and desist as provided for in Code Section 33-2-24.
(b) Except as provided for in subsection (a) of this Code section, the Commissioner of
Labor is authorized to take action against any person in violation of this title or any rule or
regulation promulgated under this title.
(c) The hearing and any administrative review thereof regarding an action taken pursuant
to this Code section shall be conducted in accordance with Chapter 13 of Title 50, the
'Georgia Administrative Procedure Act.'
34-11-10.
Nothing contained in this chapter shall affect the rights and obligations established under
Chapter 8 of Title 34, the 'Employment Security Law,' or any rules or regulations
promulgated pursuant to such chapter.
34-11-11.
This chapter shall not be applicable to:
(1) Arrangements wherein a person, whose principal business activity is not entering into
professional employer agreements and which does not hold itself out as a PEO, shares
employees with a commonly owned corporation, trade, or business within the meaning
of Section 414(b) and (c) of the federal Internal Revenue Code of 1986; or
</ins>
<ins>(2) Temporary help contracting firms as defined in Code Section 34-8-46.
34-11-12.
The Commissioner and the Commissioner of Labor shall adopt such rules and regulations
as are reasonable and necessary to effectuate the provisions of this chapter.</ins> <del>Reserved."
</del> PART III
SECTION 3-1.
Said title is further amended by revising Code Section 34-7-6, relating to professional
employer organizations and rights, powers, and responsibility, as follows:
"34-7-6.
<del>(a) As used in this Code section, the term 'professional employer organization' means an
employee leasing company as defined in Code Section 34-8-32 that has established a
coemployment relationship with another employer, pays the wages of the employees of the
coemployer, reserves a right of direction and control over the employees of the
coemployer, and assumes responsibility for the withholding and payment of payroll taxes
of the coemployer.
(b) A professional employer organization may collect information to evaluate costs; may
obtain life, accident and sickness, disability income, workers' compensation, and other
types of insurance coverage; may establish retirement plans; may have other types of
employee benefits; and may discuss such benefits with prospective coemployers and their
employees.
(c) A coemployer of a professional employer organization shall retain sufficient direction
and control over the employees involved in a coemployment relationship as is necessary
to conduct its business operations and fulfill its obligations to such employees. Unless
otherwise agreed in writing, such coemployer shall be considered to be the sole employer
</del>
<del>of such employees for licensing purposes, provided that nothing contained in this Code
section shall be deemed to prohibit a professional employer organization and its
coemployer from agreeing that the professional employer organization shall be considered
to be an employer for licensing purposes. The professional employer organization shall
give written notice of such an agreement to the appropriate licensing agency and to the
employees involved.
(d) It is the intent of this Code section that professional employer organizations shall be
considered to be employers under this title and are required to comply with the provisions
of Code Sections 34-8-32, 34-8-34, and 34-8-172. Professional employer organizations
and their coemployer clients are entitled to exclusive remedy under Code Section 34-9-11.
</del> <ins>Reserved."
</ins> SECTION 3-2.
Said title is further amended by revising Code Section 34-8-32, relating to employee leasing
company, as follows:
"34-8-32.
<del>(a) As used in this chapter, the term 'employee leasing company' means an independently
established business entity which engages in the business of providing leased employees
to any other employing unit under the following conditions:
(1) Negotiates with clients or customers for such matters as time, place, type of work,
working conditions, quality, and price of service;
(2) Determines assignments of individuals to its clients or customers, even if the
individuals retain the right to refuse specific assignments;
(3) Sets the rate of pay of the individuals, whether or not through negotiation;
(4) Pays the individuals from its accounts; and
(5) Hires and terminates individuals who perform services for the clients or customers.
</del>
<del>(b) Individuals performing services for an employee leasing company shall be considered
employees of the employee leasing company. The employee leasing company shall file
required reports in accordance with regulations prescribed by the Commissioner and pay
contributions on wages paid to such employees.
(c) Individuals who perform services for temporary help contracting firms as that term is
defined in Code Section 34-8-46 shall not be considered employees of an employee leasing
company.</del> <ins>Reserved."
</ins> SECTION 3-3.
Said title is further amended by revising Code Section 34-8-34, relating to employing unit,
as follows:
"34-8-34.
As used in this chapter, the term 'employing unit' means any individual, the legal
representative of a deceased individual, or any type of organization, including any
partnership, association, trust, estate, joint-stock company, insurance company, or
corporation, whether domestic or foreign, <del>employee leasing company</del> <ins>professional
employer organization as defined in Code Section 34-11-1,</ins> common paymaster, or the
receiver, trustee in bankruptcy, trustee, or successor thereof which has or had in its employ
one or more individuals performing services for it within this state. Each individual
performing services within this state for any employing unit which maintains two or more
separate establishments within this state shall be deemed to be employed by a single
employing unit for all the purposes of this chapter. Each individual employed to perform
or to assist in performing the work of any agent or employee of an employing unit shall be
deemed to be employed by such employing unit for all the purposes of this chapter,
whether such individual was hired or paid directly by such employing unit or by such agent
or employee, provided the employing unit had actual or constructive knowledge of such
work."
SECTION 3-4.
Said title is further amended by revising Code Section 34-8-172, relating to surety bond
required of employee leasing company, as follows:
"34-8-172.
The Commissioner shall require any <del>employee leasing company, as defined in Code
Section 34-8-32,</del> <ins>professional employer organization or PEO group, as such terms are
defined in Code Section 34-11-1,</ins> to post a surety bond or such equivalent financial
securities as approved by the Commissioner in such an amount as needed to cover the total
of any potential tax liability which may reasonably be expected to be incurred by such
employer. In the event <del>an employee leasing company</del> <ins>a professional employer organization
or PEO group</ins> is unable to procure such bond or security, <del>the employee leasing company
</del> <ins>the professional employer organization or PEO group</ins> may report such employees as being
in the employment of its client employers, <del>notwithstanding any provision of Code
Section 34-8-32 to the contrary."
</del> SECTION 3-5.
Said title is further amended by revising subsection (c) of Code Section 34-8-195, relating
to determination of eligibility for unemployment benefits generally, eligibility while in
training, and deductions and withholdings from compensation, as follows:
"(c) An individual shall not be deemed to be unemployed in any week such individual
refuses an intermittent or temporary assignment without good cause when the assignment
offered is comparable to previous work or assignments performed by the individual or
meets the conditions of employment previously agreed to between the individual and the
employer. Such individual may be considered unemployed with respect to any week an
assignment or work is not offered by the employer; provided, however, <ins>that</ins> an employee
of a temporary help contracting firm, <del>an employee leasing company,</del> or a professional
employer organization as defined in Code Section <del>34-7-6</del> <ins>34-11-1</ins> will be presumed to have
voluntarily left employment without good cause if the employee does not contact the
temporary help contracting firm, <del>employee leasing company,</del> or professional employer
organization for reassignment upon completion of an assignment; provided, further, that
such failure to contact the temporary help contracting firm, <del>employee leasing company,</del> or
professional employer organization will not be considered a voluntary departure from
employment unless the employee has been advised in writing of the obligation to contact
such employer upon completion of assignments and has been advised in writing that
unemployment benefits may be denied for failure to do so."
SECTION 3-6.
Said title is further amended by revising subsection (c) of Code Section 34-9-11, relating to
exclusivity of rights and remedies granted to employee under chapter and immunity granted
to construction design professionals, as follows:
"(c) The immunity provided by this subsection shall apply and extend to the businesses
using the services of a temporary help contracting firm, as such term is defined in Code
Section 34-8-46, or <del>an employee leasing company</del> <ins>a professional employer organization,
</ins> as such term is defined in Code Section <del>34-8-32</del> <ins>34-11-1,</ins> when the benefits required by this
chapter are provided by either the temporary help contracting firm or the <del>employee leasing
company</del> <ins>professional employer organization</ins> or the business using the services of either
such firm or <del>company</del> <ins>organization.</ins> A temporary help contracting firm or <del>an employee
leasing company</del> <ins>a professional employer organization</ins> shall be deemed to be a statutory
employer for the purposes of this chapter."
PART IV
SECTION 4-1.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
SECTION 4-2.
All laws and parts of laws in conflict with this Act are repealed.