23-570

23-570. Liability

A. Unless otherwise expressly provided by a professional employer agreement or
otherwise required by law, a client:

1. Shall be solely responsible for:

(a) The quality, adequacy and safety of the goods or services produced or sold in
the client's business.

(b) Directing, supervising, training and controlling the work of covered employees
with respect to the business activities of the client.

(c) The acts, errors or omissions of covered employees when directing, supervising,
training and controlling the covered employees' work.

2. Shall not be liable for the acts, errors or omissions of a professional employer
organization or any covered employee of the client and the professional employer
organization if the covered employee is acting under the express direction and control of
the professional employer organization.

B. This section does not limit any contractual liability or obligation required
under a professional employer agreement or limit the liabilities and obligations of any
professional employer organization or client required by this article.

C. For the purposes of general liability insurance, fidelity bonds, surety bonds,
employer's liability that is not covered under workers' compensation and liquor liability
insurance that is carried by the professional employer organization, a covered employee
is not an employee of the professional employer organization unless the covered employee
is specifically included by reference in the professional employer agreement and
applicable prearranged employment contract, insurance contract or bond.