Code of Massachusetts Regulations › 454 CMR - DEPARTMENT OF LABOR STANDARDS › Title 454 CMR 30.00 - Professional Employer Organization Registration Regulations › Section 30.02 - Definitions

Current through Register 1525, July 5, 2024
Certificate of Registration
. A
				document issued by the director to a professional employer organization (PEO)
				indicating that said PEO has submitted a completed initial or renewal
				application for registration, with a surety bond and registration fee and the
				PEOs application for registration has been accepted and approved by the
				director.
Client or Client Company
. A person who
				enters into a professional employer agreement with a PEO.
Covered Employee
. An individual whose
				employment is subject to a professional employer agreement.
Director
. The director of the
				Department of Labor Standards.
Employment Agency
. Any person who
				conducts in whole or in part an agency for the purpose of procuring or
				attempting to procure permanent or temporary help or employment or engagements,
				or for the registration of persons seeking such help, employment or engagement,
				or for giving information as to where and of whom such help, employment or
				engagement may be procured, where a fee is exacted or attempted to be collected
				for such service; provided however,
Employment Agency
shall not include a firm none of whose fees or charges are paid either directly
				or indirectly by any applicant for employment, unless such firm is engaged in
				providing domestic employees, nor shall such definition apply to any person
				conducting a business which consists of employing individuals directly for the
				purpose of furnishing part time or temporary help to others or to any person
				conducting a business which consists solely of providing employers or
				prospective employers, by electronic means, biographical information,
				background and experience of applicants for temporary employment, help or
				engagement.
PEO Group
. Two or more PEOs that are
				majority owned or commonly controlled by the same entity, parent or controlling
				person.
PEO Relationship
. A co-employment
				relationship, where all employer rights, duties and obligations such as
				payroll, health care, benefits, workers compensation, unemployment assistance,
				or tax reporting, are allocated between a PEO and a client pursuant to a
				professional employer agreement. Neither a client nor a PEO may delegate
				rights, duties or responsibilities to the other unless the delegation is
				provided for in a written professional employer agreement and covered employees
				are informed about the delegation. The client shall be entitled to enforce any
				right and is required to perform any obligation to employees not specifically
				allocated to a PEO in a PEO Agreement. The client retains the exclusive right
				to direct and control the covered employees as is necessary to conduct the
				client's business.
Person
. Any individual, partnership,
				corporation, limited liability company, association, or any other form of
				legally recognized entity.
Professional Employer Agreement
. A
				written contract by and between a client and a professional employer
				organization that establishes the PEO relationship, identifies covered
				employees and allocates employer rights, responsibilities and obligations
				between the client and the PEO with respect to the covered employees.
Professional Employer Organization or
				PEO
. Any person engaged in the business of providing professional
				employer services who is subject to registration and regulation pursuant to
				M.G.L. c. 149, §§ 192 through 203, regardless of the use or lack of
				use of the commonly used terms such as "professional employer organization",
				"PEO", "staff leasing company", "registered staff leasing company", "employee
				leasing company", "administrative employer" or other name. Where the employer
				does not otherwise hold itself out as a PEO, the following three situations
				shall not, in and of themselves, be sufficient to require PEO
				registration:
(a) sharing employees with a commonly owned company within the
				meaning of the 1986 IRC, §§ 414(b) and 414(c);
(b) providing legitimate independent contractor services as
				governed by M.G.L. c. 149, § 148B; or
(c) providing employment agency or staffing agency
				services.
Professional Employer Services
. Any
				services, management tasks, or obligations imposed by law or undertaken
				voluntarily by an employer that are allocated to a PEO in a professional
				employer agreement. In a PEO relationship, professional employer services may
				include, but are not limited to, employee benefits, payroll, tax obligations,
				workers compensation, unemployment insurance, risk/safety management, training
				or development.
Registrant
. A PEO registered pursuant
				to M.G.L. c. 149, § 196.
Staffing Agency
. An individual,
				company, corporation or partnership that procures or provides temporary or
				part-time employment to a person who then works under the supervision or
				direction of a work-site employer.
Wages
. Any and all forms of
				remuneration for employment.