§ 43-55-02 — Rights, duties, and obligations unaffected

1. Neither this chapter nor a professional employer agreement may affect, modify, or
amend a collective bargaining agreement or any right or obligation of a client,
professional employer organization, or covered employee under federal law.
2. Neither this chapter nor a professional employer agreement may:
a. Diminish, abolish, or remove any right of a covered employee to a client or
obligation of the client to a covered employee existing before the effective date of
the professional employer agreement.
b. Affect, modify, or amend any contractual relationship or restrictive covenant
between a covered employee and a client in effect at the time a professional
employer agreement becomes effective or prohibit or amend a contractual
relationship or restrictive covenant that is entered subsequently between a client
and a covered employee.
3. A covered employee who is required under law to be licensed, registered, or certified
is deemed solely an employee of the client for purposes of the license, registration, or
certification requirement.
4. Unless otherwise provided by this chapter, a professional employer organization is not
deemed to engage in any occupation, trade, profession, or other activity that is subject
to licensing, registration, or certification requirements or is otherwise regulated solely
by entering and maintaining a coemployment relationship with a covered employee
who is subject to the requirement.
5. A client has the sole right of direction and control of the professional or licensed
activities of a covered employee and of the client's business. The covered employee
and client remain subject to regulation by the entity responsible for licensing,
registration, or certification of the covered employee or client.
6. For purposes of determination of a tax credit or other economic incentive based on
employment, a covered employee is deemed an employee solely of the client. A client
is entitled to the benefit of any tax credit, economic incentive, or other benefit arising
as the result of the employment of a covered employee of the client. If the grant or
amount of the incentive is based on the number of employees, each client must be
treated as employing only those covered employees coemployed by the client. A
covered employee working for another client of the professional employer organization
may not be counted. Each professional employer organization shall provide, upon
request by a client or an agency or department of the state, employment information
reasonably required for administration of the tax credit or economic incentive and
which is necessary to support any request, claim, application, or other action by a
client seeking the tax credit or economic incentive.
7. With respect to a bid, contract, purchase order, or agreement entered with the state or
a political subdivision, a client company's status or certification by any agency of this
state as a small, minority-owned, disadvantaged, or woman-owned business
enterprise or as a historically underutilized business is not affected because the client
company has entered an agreement with a professional employer organization or uses
the services of a professional employer organization.