Bill > H2113

This bill amends Massachusetts law to clarify the legal status of Professional Employer Organizations (PEOs) in relation to employee benefits and insurance. Specifically, the bill establishes that both a client company and a registered PEO are considered employers for the purpose of sponsoring retirement and welfare benefit plans for covered employees. For fully-insured welfare benefit plans, the bill mandates that these will be treated as single employer welfare benefit plans under state law. Additionally, for health insurance purposes under Massachusetts General Laws Chapter 176J, a PEO will be considered the employer of covered employees, and these employees will be included in calculating full-time equivalent (FTE) counts when determining health insurance plan requirements. This legislation aims to provide clearer guidelines for how PEOs, which provide comprehensive HR and employment services to businesses, are classified and how they can provide benefits to workers.

Labor and Employment

https://malegislature.gov/Bills/194/H2113