Bill > S1003

This bill establishes a framework for the recognition and registration of Professional Employer Organizations (PEOs) in Massachusetts, defining them as entities that provide "Professional Employer Services" by entering into co-employment relationships with clients. A PEO and a client are considered "co-employers," sharing employer rights and obligations for "Covered Employees," who are individuals notified of this co-employment arrangement. The bill mandates that PEOs must register with the Massachusetts Department of Labor, providing detailed information about their business, ownership, and financial status, and pay registration fees. It outlines specific requirements for PEOs, including maintaining financial stability through positive working capital or a surety bond, and clarifies the allocation of responsibilities between PEOs and clients regarding wages, taxes, benefits, and workers' compensation. The legislation also addresses how PEO-employed individuals are treated for tax credits, economic incentives, and business certifications, and sets forth grounds for disciplinary action against PEOs, such as denial, revocation, or suspension of registration.