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Current as of January 01, 2025 | Updated by Findlaw Staff
(a) Collective bargaining agreements.--Nothing contained in this act or in any professional employer agreement shall affect, modify or amend any existing collective bargaining agreement, specifically limit or affect any future collective bargaining agreement, or affect, modify or amend any rights or obligations of any client, PEO or covered employee under the National Labor Relations Act (49 Stat. 449, 29 U.S.C. § 151 et seq.), the Railway Labor Act (Public Law 69-257, 44 Stat. 577) or the act of June 1, 1937 (P.L. 1168, No. 294), 1 known as the Pennsylvania Labor Relations Act. For purposes of determining the number of workers for existing and prospective collective bargaining agreements, each client shall be treated as employing its direct hire employees and only those covered employees coemployed by the client.
(b) Employment arrangements.--Nothing in this act or in any professional employer agreement shall:
(1) Diminish, abolish or remove rights of covered employees of a client or obligations of such client to a covered employee existing prior to the effective date of the professional employer agreement.
(2) Affect, modify or amend any contractual relationship or restrictive covenant between a covered employee and any client in effect at the time a professional employer agreement becomes effective, nor shall it prohibit or amend any contractual relationship or restrictive covenant that is entered into subsequently between a client and a covered employee. A PEO shall have no responsibility or liability in connection with or arising out of any existing or new contractual relationship or restrictive covenant unless the PEO has specifically agreed otherwise in writing.
(3) Eliminate any right otherwise existing in law, except as provided in this act.
(4) Create any right or cause of action not otherwise existing in law except as specifically set forth in the professional employer agreement or this act.
(c) Licensing.--Nothing contained in this act or any professional employer agreement shall affect, modify or amend any Federal, State or local licensing, registration or certification requirement applicable to any client or covered employee. The following apply:
(1) A covered employee who must be licensed, registered or certified according to law or regulation is deemed solely an employee of the client for purposes of the license, registration or certification requirement.
(2) A PEO shall not be deemed to engage in any occupation, trade, profession or other activity that is subject to licensing, registration or certification requirements, or is otherwise regulated by a governmental entity, solely by entering into and maintaining a coemployment relationship with a covered employee who is subject to such requirements or regulation.
(3) A client shall have the sole right of direction and control of the professional or licensed activities of covered employees and of the client's business. Covered employees and clients shall remain subject to regulation by the regulatory or governmental entity responsible for licensing, registration or certification of the covered employees or clients.
(d) Tax credits and other incentives.--For purposes of determination of tax credits and other economic incentives provided by the Commonwealth or other government entity and based on employment, covered employees shall be deemed employees solely of the client. A client shall be entitled to the benefit of any tax credit, economic incentive or other benefit arising as the result of the employment of covered employees of the client. If the grant or amount of any incentive is based on the number of employees, then each client shall be treated as employing its direct hire employees and those covered employees coemployed by the client. Covered employees working for other clients of the PEO shall not be counted. Each PEO will provide, upon request by a client or an agency or department of the Commonwealth, employment information reasonably required by any agency or department of the Commonwealth responsible for administration of a tax credit or economic incentive and necessary to support any request, claim, application or other action by a client seeking the tax credit or economic incentive.
(e) Disadvantaged business.--With respect to a bid, contract, purchase order or agreement entered into with the Commonwealth or a political subdivision of the Commonwealth, a client company's status or certification 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 into an agreement with a PEO or uses the services of a PEO.
(f) Other entity as employer.--Nothing in this act shall be construed to designate any entity other than the client as the employer of any employee performing services for or on its behalf while employed directly or indirectly by a PEO for any purposes other than those specifically designated in this act. Persons performing services for or on behalf of a client shall be deemed to be employees of the client for all purposes other than those specifically designated in this act where persons may be considered employees of a PEO.
Cite this article: FindLaw.com - Pennsylvania Statutes Title 43 P.S. Labor § 933.104. Construction - last updated January 01, 2025 | https://codes.findlaw.com/pa/title-43-ps-labor/pa-st-sect-43-933-104/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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