Louisiana Revised Statutes 23:1768 – Professional employer services agreement requirements
Terms Used In Louisiana Revised Statutes 23:1768
- Benefits: means the money payments payable to an individual, as provided in this Chapter, with respect to his unemployment. See Louisiana Revised Statutes 23:1472
- Client: means an employer who obtains services on all or a majority of its work force or labor from a professional employer organization. See Louisiana Revised Statutes 23:1761
- Employer: means :
(a) Any employing unit which in any calendar quarter in either the current or preceding calendar year paid for services in employment wages of one thousand five hundred dollars or more for some portion of a day in each of twenty different calendar weeks, whether or not such weeks were consecutive, in either the current or the preceding calendar year, had in employment at least one individual regardless of whether the same individual was in employment each day. See Louisiana Revised Statutes 23:1472
- Employment: means , subject to the other provisions of this Subsection, any services including service in interstate commerce, performed for wages or under any contract of hire, written or oral, express or implied;
- PEO: means any person that offers professional employer services pursuant to a professional employer services agreement with a client, including but not limited to administrative services organizations and employee leasing organizations that provide services pursuant to a PEO agreement. See Louisiana Revised Statutes 23:1761
- State: includes the states of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands. See Louisiana Revised Statutes 23:1472
Every professional employer services agreement (“PEO agreement”) shall comply with the following requirements:
(1) The agreement shall be in writing and executed by both the PEO and the client.
(2) The agreement shall have an initial term of at least one year or, in the absence of an initial term of one year, the agreement shall clearly indicate that the intent is for the agreement to be ongoing rather than temporary.
(3) The agreement shall provide that the client retains control over its business enterprise and exercises direction and control over the covered employees as to the manner and method of work done in furtherance of the client’s business, but that authority and responsibility as to other employment matters, including but not limited to hiring, firing, discipline, and compensation are allocated to and shall be between the PEO and the client.
(4) The agreement shall specifically provide for and allocate responsibility between the PEO and the client company with regard to the procurement and maintenance of workers’ compensation insurance covering their liability for workers’ compensation benefits and group health insurance to or with respect to the employees covered by the professional services agreement.
(5) The agreement shall state specifically that the agreement is executed between the parties subject to the provisions of this Part.
Acts 2001, No. 1150, §2, eff. Jan. 1, 2002.