A. Each PEO shall
provide notice to the commission when it enters into an agreement with a client
company as required by §
65.2-803.1B of
the Code of Virginia. Such notification shall include the related insurance
information required by §
65.2-803.1B of
the Code of Virginia.
B. When a PEO
enters into an agreement with a client company, the PEO shall notify the client
company, in writing, of the client company's obligation to comply with the
insuring requirement of §
65.2-801 of the Code of Virginia
with respect to its employees who are not coemployees covered under any master
policy.
C. The notice to a client
company of a PEO's intent to terminate an agreement, as required by §
65.2-803.1E of
the Code of Virginia, shall include the following:
1. The date on which the agreement shall
terminate;
2. The date on which the
client companies' coverage under a master workers' compensation insurance
policy, if any, issued in the name of the PEO will terminate; and
3. The following statement placed
conspicuously:
The Virginia Workers' Compensation Act requires that all
employers subject to the Act maintain workers' compensation liability
insurance. On _____ [date], coverage of your employees under the workers'
compensation insurance policy issued to ______________ [name of PEO] will
terminate. Therefore, if you are subject to the Act, you must obtain the
required coverage. Your failure to obtain coverage may result in you incurring
civil penalties of up to $5,000 and additional criminal penalties.
Each PEO shall file with the commission copies of all
notices.
D. Each
PEO shall also send to the client company notice complying with subdivisions C
1 through C 3 of this section upon its receipt from a client company of notice
of the client company's intent to terminate the agreement for professional
employer services. The PEO shall file copies of these notices with the
commission.
E. The notice and
filing obligations imposed by this section and §
65.2-803.1E of
the Code of Virginia shall apply regardless of whether the termination of the
agreement for professional employer services is consistent with the terms of
the agreement.
F. The notice and
filing obligations imposed by this section and §
65.2-803.1E of
the Code of Virginia shall apply where the agreement is terminated by either
the PEO or the client company without prior notice of intent to
terminate.
G. Failure by a PEO to
provide the notices and filings required in this section shall subject the PEO
to the penalties provided in §§
65.2-803.1H and
65.2-902 of the Code of
Virginia.
