Code of Massachusetts Regulations › 454 CMR - DEPARTMENT OF LABOR STANDARDS › Title 454 CMR 30.00 - Professional Employer Organization Registration Regulations › Section 30.07 - Allocation of Employer Obligations

Current through Register 1525, July 5, 2024
(1) Except
			 to the extent otherwise expressly provided by the applicable professional
			 employer agreement:
(a) a client shall be
			 solely responsible for the quality, adequacy or safety of the goods or service
			 produced or sold in the client's business;
(b) a client shall be solely responsible for
			 directing, supervising, training and controlling the work of the covered
			 employees with respect to the business activities of the client and solely
			 responsible for the acts, errors or omissions of the covered employees with
			 regard to such activities;
(c) a
			 client shall be solely responsible for the payment of any wages to covered
			 employees and to make payments for employee benefits for covered
			 employees;
(d) a client shall be
			 solely responsible for safety, risk and hazard control at the worksite and
			 compliance with related state and federal laws;
(e) upon termination of the PEO relationship,
			 the client shall be solely responsible for providing employees with information
			 regarding the handling of claims and benefits;
(f) a client shall not be liable for the
			 acts, errors or omissions of a PEO, or of any covered employee of the client
			 and a PEO, when such covered employee is acting under the express direction and
			 control of the PEO;
(g) a PEO shall
			 not be liable for the acts, errors or omissions of a client, or of any covered
			 employee of the client, when such covered employee is acting under the express
			 direction and control of the client;
(h) nothing in 454 CMR 30.07(1) shall serve
			 to limit any contractual liability or obligation specifically provided in the
			 written professional employer agreement;
(i) a covered employee shall not be, solely
			 as the result of being a covered employee of a PEO, an employee of the PEO for
			 purposes of general liability insurance, fidelity bonds, surety bonds,
			 employer's liability that is not covered by workers' compensation or liquor
			 liability insurance carried by the PEO unless the covered employees are
			 included by specific reference in the professional employer agreement and
			 applicable prearranged employment contract, insurance contract or
			 bond;
(j) nothing in 454 CMR
			 30.07(1) shall in any way limit the liabilities and obligations of any PEO or
			 client to covered employees as required by 454 CMR 30.00;
(k) the client shall be solely responsible
			 for notifying the PEO of all covered employees; provided however, that where
			 the client has failed to notify the PEO, the client will be deemed to be the
			 sole employer of the employee; and
(l) the client shall retain all records in
			 compliance with state and federal law including, but not limited to M.G.L. c.
			 149, § 52C, M.G.L. c. 151, § 15, and 29 CFR Part 516; provided,
			 however, that if an obligation under 454 CMR 30.07(1) is allocated to a PEO
			 under the professional service agreement, the PEO shall disclose to a covered
			 employee, upon request, the documents retained under 454 CMR 30.07(1) as
			 required by state and federal law.