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NORTH CAROLINA STATUTES AND CODES

§ 58-89A-100. Contract requirements.

§ 58‑89A‑100. Contract requirements.

A contract between a licenseeand a client company shall provide:

(1)        That the licenseereserves a right of direction and control over employees assigned to a clientcompany's work sites. However, a client company may retain such sufficientdirection and control over the assigned employees as is necessary to conductthe client company's business and without which the client company would beunable to conduct its business, to discharge any fiduciary responsibility thatit may have, or to comply with any applicable licensure, regulatory, orstatutory requirement of the client company. The PEO agreement shall providethat employment responsibilities not allocated to the licensee by the PEOagreement or this section remain with the client company.

(2)        That the licenseeassumes responsibility for the payment of wages to the assigned employees asagreed to in the PEO agreement.

(3)        That the licenseeassumes responsibility for the payment of payroll taxes and collection of taxesfrom payroll on assigned employees.

(4)        That the licenseereserves a right to hire, fire, and discipline the assigned employees.

(5)        That the licenseeretains a right of direction and control over the adoption of employmentpolicies and the management of workers' compensation claims, claim filings, andrelated procedures in accordance with applicable federal laws and the laws ofthis State.

(6)        That responsibilityto obtain workers' compensation coverage for assigned employees, from an entityauthorized to do business in this State and otherwise in compliance with allapplicable requirements, shall be specifically allocated in the PEO agreementto either the client company or the licensee. If the responsibility isallocated to the licensee under any such agreement, that agreement shallrequire that the licensee maintain and provide to the client company, at thetermination of the agreement if requested by the client company, recordsregarding the loss experience related to workers' compensation insurance providedto assigned employees pursuant to the agreement. (2004‑162, s. 1.)

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