Idaho § 44-2403 - Definitions

§ 44-2403. Definitions

As used in this chapter:

(1) "Administration fee" means those charges made by the professional employer to the client over and above the cost of taxes, premiums, wages, state and federal withholdings or licensing procedures.

(2) "Assigned worker" is a person with an employment relationship with both the professional employer and the client.

(3) "Client" means a person who obtains its work force from another person through a professional employer arrangement.

(4) "Person" means an individual, an association, a company, a firm, a partnership or a corporation.

(5) "Professional employer arrangement" means an arrangement, under contract or otherwise, whereby:

(a) A professional employer assigns workers to perform services for a client;

(b) The arrangement is intended to be, or is, on-going rather than temporary in nature; and

(c) Employer responsibilities are in fact shared by the professional employer and the client for assigned workers.

(d) For the purposes of this chapter, a professional employer arrangement shall not include:

(i) Temporary employees;

(ii) Arrangements wherein a person, whose principal business activity is not entering into professional employer arrangements, shares employees with a commonly owned company within the meaning of section 414(b) and (c) of the Internal Revenue Code of 1986, as amended, and which does not hold itself out as a professional employer;

(iii) Arrangements for which a person assumes full responsibility for the product or service performed by such person or his agents and retains and exercises, both legally and in fact, a complete right of direction and control over the individuals whose services are supplied under such contractual arrangements, and such person and his agents perform a specified function for the client which is separate and divisible from the primary business or operations of the client.

(6) "Professional employer" means any person engaged in providing the services of employees pursuant to one (1) or more professional employer arrangements or any person that represents itself to the public as providing services pursuant to a professional employer arrangement.

(7) "Temporary employee" means a worker employed by an organization which hires its own employees and assigns them to a third party to support or supplement the third party’s work force in work situations such as employee absences, temporary skill shortages, seasonal workload conditions, and special assignments and projects.

[44-2403, added 1994, ch. 129, sec. 1, p. 287.]