Bill Text: MI HB4545 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Occupations; business licensing and registration; responsibility to provide worker's compensation insurance under a professional employment agreement; revise. Amends sec. 17 of 2010 PA 370 (MCL 338.3737). TIE BAR WITH: HB 4544'19
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2019-06-06 - Referred To Committee On Ways And Means, With Substitute (h-3) [HB4545 Detail]
Download: Michigan-2019-HB4545-Introduced.html
HOUSE BILL No. 4545
May 2, 2019, Introduced by Reps. Lilly and Iden and referred to the Committee on Commerce and Tourism.
A bill to amend 2010 PA 370, entitled
"Michigan professional employer organization regulatory act,"
by amending section 17 (MCL 338.3737), as amended by 2011 PA 125.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 17. (1) Each professional employer agreement executed on
or
after September 1, 2012 shall must
include the following
provisions:
(a) The responsibility of the PEO to pay wages to covered
employees; to withhold, collect, report and remit payroll-related
and unemployment taxes; and, to the extent the PEO has assumed
responsibility in the professional employer agreement, to make
payments for employee benefits for covered employees. For purposes
of this subdivision, wages do not include any obligation between a
client and a covered employee for payments beyond, or in addition
to, the covered employee's salary, draw, or regular rate of pay,
including bonuses, commissions, severance pay, deferred
compensation, profit sharing, or vacation, sick, or other paid time
off pay, unless the PEO has expressly agreed to assume liability
for those payments in the professional employer agreement.
(b) The hiring, disciplining, and termination by the PEO of a
covered employee, as necessary to fulfill the PEO's
responsibilities under this act and the professional employer
agreement. The client may also hire, discipline, and terminate a
covered employee.
(c) The responsibility of the client and the PEO to comply
with the worker's disability compensation act of 1969, 1969 PA 317,
MCL 418.101 to 418.941. Beginning on the effective date of the
amendatory act that added this sentence, for purposes of this
subdivision, the professional employer agreement must allocate the
responsibility to assume liability for compensation and benefits
under the worker's disability compensation act of 1969, 1969 PA
317, MCL 418.101 to 418.941, to either the client or the PEO.
(2) Each professional employer agreement executed on or after
September 1, 2012 shall require that the PEO provide written notice
to each covered employee affected by the agreement regarding the
general nature of the coemployment relationship between and among
the PEO, the client, and that covered employee.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4544 (request no.
01036'19) of the 100th Legislature is enacted into law.
