Allocation of Employer Obligations

(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. (2) Workers Compensation. Workers' compensation shall be provided to covered employees at each client company either by the PEO or by the client company of the covered employee pursuant to the Workers' Compensation Law, M.G.L. c. 152. The professional employer agreement shall specify the allocation of responsibilities between the PEO and the client for workplace safety, risk and hazard control including the responsibility for disclosing information about workplace injuries and illness required by the federal Occupational Safety and Health Act and for performing workplace safety inspections of all premises where covered employees are employed. To the extent the PEO has assumed responsibility in the professional employer agreement, the PEO shall maintain responsibility for the management of workers' compensation claims. (a) Where the PEO has workers' compensation coverage and has executed an alternate employer endorsement naming the client as an additional insured, both the client and the PEO shall be considered the employer for purpose of coverage under M.G.L. c. 152. (b) Where the client has workers' compensation coverage and has executed an alternate employer endorsement naming the PEO as an additional insured, both the client and the PEO shall be considered the employer for the purpose of coverage under M.G.L. c. 152. (3) Unemployment Insurance. For purposes of the Unemployment Insurance law, M.G.L. c. 151A, covered employees of a PEO shall be considered the employees of the client and the PEO shall be responsible for the payment of contributions, penalties and interest on wages paid by the PEO to its covered employees during the term of the applicable professional employer agreement. The PEO shall report and pay all required contributions to the Department of Unemployment Assistance using the state employer account number and the experience rate of the client company pursuant to the Unemployment Insurance law, and the regulations promulgated pursuant to M.G.L. c. 151A. (4) Employment Benefits and Protections. Except as otherwise provided in this chapter, for the purposes of federal, state or local laws relating to employee count including, but not limited to, paid and unpaid leave, health and transportation benefits and protection under fair employment laws, the employee count shall include all of the client company's employees, including the client's employees who are covered employees under the PEO relationship between the client and the PEO.