Requirements of co-employment relationships

Sec. 1. Except as provided in a professional employer agreement, the following apply to a co-employment relationship: (1) The client: (A) may exercise and enforce all rights; and (B) is obligated to perform all duties and responsibilities; that otherwise apply to an employer in an employment relationship, that are allocated to the client by the professional employer agreement and this article, and that are not specifically allocated to the PEO by the professional employer agreement and this article. (2) The PEO: (A) may exercise and enforce only the rights; and (B) is obligated to perform only the duties and responsibilities; that are required of the PEO or specifically allocated to the PEO by this article and the professional employer agreement. (3) Unless otherwise expressly agreed by the PEO and the client in the professional employer agreement, the client retains the exclusive right to direct and control the covered employees as necessary to: (A) conduct the client's business; (B) discharge the client's fiduciary responsibilities; or (C) comply with licensure requirements that apply to the client or the covered employees.