IC 27-16-3
    Chapter 3. Effect on Rights, Duties, and Obligations

IC 27-16-3-1
Effect on collective bargaining agreement or federal rights orobligations
    Sec. 1. This article and a professional employer agreement do notaffect, modify, or amend:
        (1) a collective bargaining agreement; or
        (2) rights or obligations of a client, PEO, or covered employeeunder:
            (A) the federal National Labor Relations Act (29 U.S.C. 151et seq.);
            (B) the federal Railway Labor Act (45 U.S.C. 151 et seq.);or
            (C) IC 22-7.
As added by P.L.245-2005, SEC.7.

IC 27-16-3-2
Effect on duties
    Sec. 2. This article and a professional employer agreement do notdo the following:
        (1) Diminish, abolish, or remove the obligations of a client to acovered employee that exist before the effective date of theprofessional employer agreement.
        (2) Affect, modify, or amend a contractual relationship orrestrictive covenant:
            (A) between a covered employee and a client that is in effecton the effective date of the professional employeragreement; or
            (B) that is entered into between a client and a coveredemployee after the effective date of the professionalemployer agreement.
        A PEO is not responsible or liable for a dispute in connectionwith or arising out of a contractual relationship or restrictivecovenant described in this subdivision unless the PEO hasotherwise specifically agreed in writing.
        (3) Create a new or additional enforceable right of a coveredemployee against a PEO that is not specifically provided by theprofessional employer agreement or this article.
As added by P.L.245-2005, SEC.7.

IC 27-16-3-3
Effect on federal, state, or local requirements
    Sec. 3. (a) This article and a professional employer agreement donot affect, modify, or amend a federal, state, or local:
        (1) license;
        (2) registration; or
        (3) certification;
requirement that applies to a client or covered employee.    (b) The following apply to a federal, state, or local requirementdescribed in subsection (a):
        (1) A covered employee who is required to be licensed,registered, or certified is considered solely an employee of theclient for purposes of a license, registration, or certificationrequirement.
        (2) A PEO is not considered to engage in an occupation, a trade,a profession, or another activity that is:
            (A) subject to a license, registration, or certificationrequirement; or
            (B) otherwise regulated by a governmental entity;
        solely because the PEO has entered into and maintained aco-employment relationship with a covered employee who issubject to a requirement or regulation described in clause (A)or (B).
        (3) A client has the sole right of direction and control of theprofessional or licensed activities of a covered employee and ofthe client's business.
        (4) Only a:
            (A) covered employee; or
            (B) client;
        that is subject to a requirement or regulation described insubdivision (2)(A) or (2)(B) is subject to the regulation by aregulatory or governmental entity responsible for licensing,registration, certification, or other regulation of the coveredemployee or client.
As added by P.L.245-2005, SEC.7.

IC 27-16-3-4
Effect on tax credits and incentives
    Sec. 4. (a) For purposes of the determination of tax credits andother economic incentives:
        (1) provided by the state or another governmental entity; and
        (2) based on employment;
a covered employee is considered an employee solely of the client.
    (b) A client is entitled to the benefit of any tax credit, economicincentive, or other benefit arising as the result of the employment ofa covered employee of the client.
    (c) If the grant or amount of an incentive is based on the numberof employees a client employs:
        (1) each client must be treated as employing only the coveredemployees actually working in the client's business operations;and
        (2) covered employees working for other clients of the PEOmust not be counted.
    (d) A PEO shall provide, upon request by a client or an agency ora department of the state or of another governmental entity,employment information:
        (1) reasonably required by an agency or a department of thestate or of another governmental entity that is responsible for

administration of a tax credit or economic incentive describedin this section; and
        (2) necessary;
to support a request, a claim, an application, or another action by aclient seeking a tax credit or an economic incentive.
As added by P.L.245-2005, SEC.7.

IC 27-16-3-5
Effect on government contracts
    Sec. 5. With respect to a bid, a contract, a purchase order, or anagreement entered into with the state or a political subdivision of thestate, a client's status or certification as a:
        (1) small, minority owned, disadvantaged, or woman ownedbusiness enterprise; or
        (2) historically underutilized business;
is not affected because the client has entered into the professionalemployment agreement.
As added by P.L.245-2005, SEC.7.