31A-40-204 - Rights and obligations unaffected -- Licensed, registered, or certified occupations or professions. - Utah Statutes

31A-40-204. Rights and obligations unaffected -- Licensed, registered, or certifiedoccupations or professions.
(1) This chapter does not and a professional employer agreement may not affect, modify,or amend a:
(a) collective bargaining agreement; or
(b) right or obligation of a client, professional employer organization, or coveredemployee under:
(i) the federal National Labor Relations Act, 29 U.S.C. Sec. 151 et seq.;
(ii) the federal Railway Labor Act, 45 U.S.C. Sec. 151 et seq.; or
(iii) a state law similar to a federal law described in this Subsection (1)(b).
(2) (a) A professional employer agreement may not:
(i) diminish, abolish, or remove a right of a covered employee to a client or an obligationof the client to a covered employee that exists on or before the day on which the professionalemployer agreement takes effect;
(ii) affect, modify, or amend a contractual relationship or restrictive covenant between acovered employee and a client in effect on the day on which the professional employer agreementtakes effect; or
(iii) prohibit or amend a contractual relationship or restrictive covenant that is enteredinto between a covered employee and a client after the day on which the professional employeragreement takes effect.
(b) A professional employer organization is not responsible or liable in connection with,or arising out of, a contractual relationship or restrictive covenant described in Subsection (2)(a)unless the professional employer organization specifically agrees to be responsible in writing.
(3) This chapter does not and a professional employer agreement may not create anenforceable right of a covered employee against a professional employer organization that is notspecifically provided by the professional employer agreement or this chapter.
(4) (a) Except as provided in this Subsection (4), this chapter does not and a professionalemployer agreement may not affect, modify, or amend a state, local, or federal license,registration, or certification requirement applicable to a client or a covered employee.
(b) If a covered employee is required by federal or state law to be licensed, registered, orcertified, the covered employee is considered to be solely an employee of the client for purposesof the license, registration, or certification requirement.
(c) A professional employer organization is not considered to engage in an activity that issubject to licensing, registration, or certification by a local, state, or federal government or isregulated by a local, state, or federal government solely by entering into or maintaining acoemployment relationship with a covered employee who is:
(i) subject to licensing, registration, or certification; or
(ii) regulated by the local, state, or federal government.
(d) A client has the sole right to direct or control a professional, licensed, registered, orcertified activity of:
(i) a covered employee; and
(ii) the client's business.
(e) Notwithstanding this chapter, a covered employee and client remain subject toregulation by the local, state, or federal government responsible for licensing, registration, orcertification of the covered employee or client.

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Enacted by Chapter 318, 2008 General Session