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TITLE 16ECONOMIC REGULATION
PART 4TEXAS DEPARTMENT OF LICENSING AND REGULATION
CHAPTER 72PROFESSIONAL EMPLOYER ORGANIZATION
RULE §72.70Responsibilities of Licensee--General

(a) Notices to Clients.

  (1) A licensee must notify its clients of the name, mailing address, and telephone number of the department. The notice also must contain a statement that unresolved complaints concerning a licensee or questions concerning the regulation of PEO's may be addressed to the department.

  (2) The notice required by this subsection must be made a part of all agreements between licensees and clients. The notification shall appear in a typeface no smaller than the body of the contract and shall be printed in bold face, all capital letters or contrasting color of ink to set it out from the surrounding written material.

(b) Notices to Covered Employees.

  (1) A licensee must provide written notice of a professional employer services agreement to each covered employee that sets forth the general nature of the coemployment relationship, the name, mailing address, website www.tdlr.texas.gov, and telephone number of the department, and a statement that unresolved complaints concerning a licensee or questions concerning the regulation of PEO services may be addressed to the department.

  (2) A licensee must notify each covered employee that, pursuant to §91.032(c) of the Code, a client company is solely obligated to pay any wages for which:

    (A) an obligation to pay is created by an agreement, contract, plan, or policy between the client company and the covered employee; and

    (B) the PEO has not contracted to pay.

  (3) A licensee shall have each covered employee either sign a document or electronically acknowledge that the covered employee has received the notice required by §72.70(b)(1) and other notices set forth in this subsection. The signed document or electronic record must be kept on file for two years after employment is terminated. The signed document or electronic record may be included as part of the professional employer services agreement or other agreement with the covered employee or may be a separate document.

(c) Notwithstanding subsection (b)(2), a PEO may process payments for wages that it has not contracted to pay at the request or direction of its clients.

(d) A licensee must update the information provided to the department as part of the original or renewal license application within 45 days after any change to the information.


Source Note: The provisions of this §72.70 adopted to be effective January 1, 2010, 34 TexReg 9430; amended to be effective January 1, 2014, 38 TexReg 9512

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