Mich. Comp. Laws § 338.3721
Short title.
This act shall be known and may be cited as the "Michigan professional employer organization regulatory act".
Michigan Compiled Laws — MICHIGAN PROFESSIONAL EMPLOYER ORGANIZATION REGULATORY ACT (Act 370 of 2010)
Michigan · statute · 370 of 2010, Mich. Comp. Laws · 14 active provisions
Provisions
Mich. Comp. Laws § 338.3723
Definitions.
As used in this act: (a) "Client" means any person who enters into a professional employer agreement with a PEO. (b) "Coemployer" means either a PEO or a client. (c) "Coemployment relationship" means a relationship that is intended to be an ongoing relationship rather than a temporary or project-specific one, wherein t…
Mich. Comp. Laws § 338.3725
Professional employer agreement; effect.
(1) Neither this act nor a professional employer agreement shall affect, modify, or amend any collective bargaining agreement, or the rights or obligations of any client, PEO, or covered employee under any state or federal act. (2) Neither this act nor any professional employer agreement shall do any of the following:…
Mich. Comp. Laws § 338.3727
Provider of professional employer services; license; fee; application; prohibitions relating to person convicted of certain felony; filing by PEO operating on effective date of act; renewal application; combined or consolidated audited financial statement; electronic filings.
(1) Except as otherwise provided in this act, beginning September 1, 2012, a person shall not provide, advertise, or otherwise hold itself out as providing professional employer services in this state, unless licensed or exempt from licensure under this act. (2) An applicant for licensure shall submit to the department…
Mich. Comp. Laws § 338.3729
Limited license.
(1) Beginning September 1, 2012, the department may issue a limited PEO license. A PEO seeking limited licensure under this section shall submit to the department a properly executed and completed application on a form provided by the department and include with the application the license fee for limited licensure est…
Mich. Comp. Laws § 338.3731
List of licensed PEOs; availability to public.
The department shall maintain a list of PEOs licensed under this act. The list shall be readily available to the public by electronic or other means.
Mich. Comp. Laws § 338.3733
License fees; adjustment; "Detroit consumer price index" defined.
(1) The department may charge an application fee for an initial license under this act. The amount of the fee shall be determined by the department and shall not exceed $1,500.00 for an individual license or $1,500.00 for a PEO group license. (2) Except for an initial license, the term of a license issued under this ac…
Mich. Comp. Laws § 338.3735
Working capital; requirements.
Unless otherwise exempt under this act, beginning September 1, 2012, each PEO or collectively each PEO group shall submit to the department evidence of and maintain either of the following: (a) A minimum of $100,000.00 in working capital, as defined by generally accepted accounting principles, as reflected in the finan…
Mich. Comp. Laws § 338.3737
Professional employer agreement; provisions; written notice to covered employee affected by agreement.
(1) Each professional employer agreement executed on or after September 1, 2012 shall 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 responsibilit…
Mich. Comp. Laws § 338.3739
Professional employer agreement; liabilities or obligations; tax or assessment.
(1) Except to the extent otherwise expressly provided for by the professional employer agreement, the following apply: (a) A client is solely responsible for the quality, adequacy, or safety of the goods or services produced or sold in the client's business. (b) A client is solely responsible for directing, supervising…
Mich. Comp. Laws § 338.3741
Prohibited conduct; opportunity for hearing; penalties.
(1) Beginning September 1, 2012, a person that commits 1 or more of the following is subject to the penalties described in subsection (2): (a) Practices fraud or deceit in obtaining or renewing a license. (b) Aids or abets another person in the unlicensed practice of an occupation. (c) Engages in activities regulated u…
Mich. Comp. Laws § 338.3743
Violation of act as misdemeanor; penalty.
Beginning September 1, 2012, a person that knowingly and willfully violates this act, or that aids and abets, directly or indirectly, a violation of this act, is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $10,000.00, or both.
Mich. Comp. Laws § 338.3745
Rules.
The department shall promulgate consistent and necessary rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, as considered necessary to implement this act.
Mich. Comp. Laws § 338.3747
Effective date.
This act takes effect January 1, 2012.