HRS §373L-6
PEO is the employer for insurance and benefits laws
While a professional employer organization (PEO) has a contract with a client company, the PEO is treated as the employer of the covered workers for unemployment, workers' comp, disability, and prepaid health care laws. The PEO must tell each covered worker in writing that it has this responsibility.
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The statute, as written — Responsibility of professional employer organizations
During the term of the agreement between a professional employer organization and its client company, the professional employer organization shall be deemed the employer for all covered employees for purposes of complying with all laws relating to unemployment insurance, workers' compensation, temporary disability insurance, and prepaid health care coverage and the professional employer organization shall provide written notification to each covered employee of this responsibility.
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