Client: means a person who enters into a professional employer agreement with a professional employer organization. See Utah Code 31A-40-102
Covered employee: means an individual who has a coemployment relationship with a client and a professional employer organization if the conditions of Section 31A-40-203 are met. See Utah Code 31A-40-102
Director: means a member of the board of directors of a corporation. See Utah Code 31A-1-301
Employee: means :
(a)
an individual employed by an employer; or
(b)
an individual who meets the requirements of Subsection (53)(b). See Utah Code 31A-1-301
professional employer organization: means a person engaged in the business of providing a professional employer service. See Utah Code 31A-40-102
(a)
An individual is a covered employee of a professional employer organization if the individual is coemployed pursuant to a professional employer agreement subject to this chapter.
(b)
An individual who is a covered employee under a professional employer agreement is a covered employee, whether or not the professional employer organization provides the notice required by Subsection 31A-40-202(3), the earlier of the day on which:
(i)
the employee is first compensated by the professional employer organization; or
(ii)
the client notifies the professional employer organization of a new hire.
(2)
An individual who is an officer, director, shareholder, partner, or manager of a client is a covered employee:
(a)
to the extent that the client and the professional employer organization expressly agree in the professional employer agreement that the individual is a covered employee;
(b)
if the conditions of Subsection (1) are met; and
(c)
if the individual acts as an operational manager or performs day-to-day an operational service for the client.
Amended by Chapter 290, 2014 General Session Amended by Chapter 300, 2014 General Session
