(a)  The responsibility to obtain workers’ compensation coverage for covered employees, from a carrier licensed to do business in this state and otherwise in compliance with all applicable requirements, shall be specifically allocated in the professional employer agreement to either the client or the PEO. If the responsibility is allocated to the PEO under the agreement, the agreement shall require that the PEO maintain and provide to the client, at the termination of the agreement if requested by the client, records regarding the loss experience related to workers’ compensation insurance provided to covered employees pursuant to the agreement. A certificate of insurance as proof of workers’ compensation coverage shall be issued to the client if the PEO is to provide coverage or to the PEO if the client is to provide coverage with notification of cancellation to be issued immediately to either entity. In the case of cancellation, the other entity must immediately obtain coverage.

Terms Used In Rhode Island General Laws 5-75-9

  • Client: means any person who enters into a professional employer agreement with a PEO. See Rhode Island General Laws 5-75-2
  • Co-employer: means either a PEO or a client. See Rhode Island General Laws 5-75-2
  • PEO: means any person engaged in the business of providing professional employer services. See Rhode Island General Laws 5-75-2
  • Professional employer agreement: means a written contract by and between a client and a PEO that provides:

    (1)  For the co-employment of covered employees;

    (2)  For the allocation and sharing between the client and the PEO of employer responsibilities (including hiring, firing, and disciplining) with respect to the covered employees; and

    (3)  That the PEO and the client assume the responsibilities required by this chapter. See Rhode Island General Laws 5-75-2

(b) Workers’ compensation.  Both the client and the PEO shall be considered the employer for the purpose of coverage under the workers’ compensation act and both the PEO and its client shall be entitled to protection of the exclusive remedy provision of the workers’ compensation act irrespective of which co-employer obtains such workers’ compensation coverage.

History of Section.
P.L. 2004, ch. 87, § 1; P.L. 2004, ch. 124, § 1; P.L. 2006, ch. 215, § 1.