An Act relative to professional employer organizations

HD 832 clarifies Massachusetts' treatment of Professional Employer Organizations (PEOs) for employee benefits. It states that both a business using a PEO (the "client") and the PEO itself are considered employers under state law for retirement and welfare benefit plans covering the PEO's employees. The bill also requires that health insurance plans sponsored by a PEO count all covered employees toward full-time equivalent (FTE) calculations under state health insurance rules. This primarily affects small businesses that outsource HR functions to PEOs and the PEOs themselves.