Hawaii Revised Statutes 373L-3 – Bond required
Terms Used In Hawaii Revised Statutes 373L-3
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Client company: means any person that enters into a professional employer agreement with a professional employer organization and has covered employees. See Hawaii Revised Statutes 373L-1
- Director: means the director of labor and industrial relations. See Hawaii Revised Statutes 373L-1
- Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
- Professional employer organization: means any person that is a party to a professional employer agreement with a client company and whose covered employees perform services on a long-term, rather than temporary or project-specific basis. See Hawaii Revised Statutes 373L-1
If the professional employer organization posts a bond, the director shall be named as the obligee and the bond may be canceled only if the professional employer organization gives sixty days prior written notice to the surety and the director or if the surety gives thirty days prior written notice to the director of cancellation of the bond. If the professional employer organization furnishes an irrevocable letter of credit approved by the director, the director shall be named as the beneficiary, and the irrevocable letter of credit shall be issued by a bank, savings bank, or other depository financial institution insured by a federal depository insurance agency and authorized to do business in the State. The requirements of this section shall be satisfied by a single bond or its irrevocable letter of credit equivalent. If a professional employer organization has more than one branch location, the bond or its irrevocable letter of credit equivalent shall cover all locations.