{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/65.2-803.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/65.2-803.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/65.2-803.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/65.2-803.1.html"}],"law_id":62818,"edition_id":1,"section_id":62818,"structure_id":13374,"section_number":"65.2-803.1","catch_line":"Requirements for registration as professional employer organization; annual assessment","history":"2000, cc. 624, 718; 2001, c. 706; 2002, c. 469; 2005, c. 158.","full_text":"A\n\nAny business entity desiring to engage in the business of providing professional employer services shall register with the Commission before any such services may be provided. The Commission may require any business entity having a controlling ownership interest in or sharing common ownership with a professional employer organization providing professional employer services in the Commonwealth to guarantee, in a form prescribed by the Commission, performance of all obligations pursuant to this title, including the payment of workers’ compensation benefits.B\n\nEach registered professional employer organization shall notify the Commission and the Bureau of Insurance of the State Corporation Commission within 30 calendar days of all new or terminated, in whole or in part, client companies. Upon registration and annually thereafter, each registered professional employer organization shall notify the Commission and the Bureau of Insurance of the State Corporation Commission of all client companies. Such notice shall be confidential and shall not be disclosed to the public, provided that the Commission may respond to inquiries as to whether a client company has workers’ compensation coverage; however, nothing herein shall be interpreted to prohibit or limit the production of documents containing such information from the professional employer organization pursuant to an otherwise lawful subpoena issued by a court of competent jurisdiction. Each such notification shall indicate, by client company, if the professional employer organization will provide voluntary market workers’ compensation insurance and whether the client company will obtain separate workers’ compensation insurance. The Commission may require such other information as it deems necessary for the administration of this section.C\n\nAll agreements for professional employer services shall be in writing and shall provide a description of the respective rights and obligations of the professional employer organization and the client company. The professional employer organization shall provide a written summary of such rights and obligations to each coemployee, including information concerning filing for workers’ compensation and unemployment benefits. No agreement for professional employer services shall alter or affect the terms and conditions of any collective bargaining agreement between the client company and its employees without the consent of the parties to such collective bargaining agreement.D\n\nA professional employer organization that is registered with the Commission and operating in compliance with the requirements of this section shall be deemed to be an employer of its coemployees and may assume responsibilities as an employer of its coemployees for the term of its agreement with a client company. A professional employer organization may secure and provide all required voluntary market workers’ compensation insurance for its coemployees under a master workers’ compensation insurance policy in the name of the professional employer organization.E\n\nA professional employer organization shall notify in writing the client company and coemployees of its intent to terminate any agreement for professional employer services with a client company at the time of or prior to termination. Such notice shall advise the client company of its obligation to secure workers’ compensation coverage. The professional employer organization shall provide a copy of such notice to the Commission and the insurer at the time notice is given to the client company. Workers’ compensation insurance coverage shall continue until termination or for fifteen calendar days after receipt of notice of termination by both the Commission and the client company, whichever is later. This section shall not alter the notice obligations of an insurer seeking to cancel workers’ compensation coverage pursuant to subsection B of § 65.2-804. If a professional employer organization has received notice that its workers’ compensation insurance policy will be cancelled or nonrenewed, the professional employer organization shall notify the client companies within seven calendar days after receipt of the notice. Failure of the professional employer organization to provide such notice to the client companies subrogates the Commission, upon payment of a claim from the Uninsured Employer’s Fund to any coemployee of a client company that did not receive notice, to any right to recover damages which the injured coemployee or his personal representative may have against the professional employer organization.F\n\nThis section shall not exempt a client company from any other license requirements imposed under federal, state, or local law, and a coemployee shall be recognized as an employee of the client company for all purposes. For purposes of licensing requirements, a professional employer organization shall not be deemed to be engaged in the occupation, trade or profession of the client company solely through the provision of professional employer services to that client company.G\n\nWhere a professional employer organization or a staffing service has obtained workers’ compensation insurance to secure its obligations under this title with respect to compensation on account of injury or death by accident, the rights and remedies available to the employee or coemployee under this title shall be exclusive as to both the client company and the professional employer organization or staffing service in accordance with this title.H\n\nA professional employer organization that fails to comply with the provisions of this title or with the regulations of the Commission shall be subject to the requirements of Chapter 9 (§ 65.2-900 et seq.) of this title. The Commission is authorized to revoke or suspend any registration hereunder if the professional employer organization fails to comply with the provisions of this title or with the regulations of the Commission. If a registration is revoked as herein provided, the Commission may allow the professional employer organization to reregister upon application therefor if, when and after the conditions upon which revocation was based have been corrected and the professional employer organization has complied with all provisions of this title and applicable regulations. Whenever a registration is revoked or suspended the Commission may request the Office of the Attorney General to petition the circuit court of the jurisdiction in which the professional employer organization is located for an injunction to cause such professional employer organization to cease providing professional employer services. Suspension of a registration shall in all cases be for an indefinite time and the suspension may be lifted and rights under the registration fully or partially restored at such time as the Commission determines that the rights of the registrant appear to so require and the interests of the public will not be jeopardized by resumption of operation.I\n\nNotwithstanding any provision of this title to the contrary, each registered professional employer organization shall be assessed annually by the Commission, in addition to any other assessments provided in this title, an assessment in an amount not to exceed the sums necessary for the registration and supervision of all professional employer organizations. The assessment shall be apportioned and assessed and paid in proportion to the aggregate of the annual payroll of all coemployees shared by or assigned or allocated to the professional employer organization.J\n\nThe Bureau of Insurance of the State Corporation Commission may request and shall receive information filed with the Commission by a professional employer organization. Such information shall be confidential and shall be used solely for informational purposes by the Bureau of Insurance and its staff.K\n\nNo person shall sell, solicit, or negotiate, as those terms are defined in § 38.2-1800, contracts of insurance for or on behalf of a professional employer organization unless such person is licensed for that class of insurance as an insurance agent, as defined in § 38.2-1800.L\n\nThe Commission may promulgate regulations as it deems necessary for the administration of this section.","order_by":null,"text":{"0":{"id":228980,"text":"Any business entity desiring to engage in the business of providing professional employer services shall register with the Commission before any such services may be provided. The Commission may require any business entity having a controlling ownership interest in or sharing common ownership with a professional employer organization providing professional employer services in the Commonwealth to guarantee, in a form prescribed by the Commission, performance of all obligations pursuant to this title, including the payment of workers’ compensation benefits.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":228981,"text":"Each registered professional employer organization shall notify the Commission and the Bureau of Insurance of the State Corporation Commission within 30 calendar days of all new or terminated, in whole or in part, client companies. Upon registration and annually thereafter, each registered professional employer organization shall notify the Commission and the Bureau of Insurance of the State Corporation Commission of all client companies. Such notice shall be confidential and shall not be disclosed to the public, provided that the Commission may respond to inquiries as to whether a client company has workers’ compensation coverage; however, nothing herein shall be interpreted to prohibit or limit the production of documents containing such information from the professional employer organization pursuant to an otherwise lawful subpoena issued by a court of competent jurisdiction. Each such notification shall indicate, by client company, if the professional employer organization will provide voluntary market workers’ compensation insurance and whether the client company will obtain separate workers’ compensation insurance. The Commission may require such other information as it deems necessary for the administration of this section.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":228982,"text":"All agreements for professional employer services shall be in writing and shall provide a description of the respective rights and obligations of the professional employer organization and the client company. The professional employer organization shall provide a written summary of such rights and obligations to each coemployee, including information concerning filing for workers’ compensation and unemployment benefits. No agreement for professional employer services shall alter or affect the terms and conditions of any collective bargaining agreement between the client company and its employees without the consent of the parties to such collective bargaining agreement.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":228983,"text":"A professional employer organization that is registered with the Commission and operating in compliance with the requirements of this section shall be deemed to be an employer of its coemployees and may assume responsibilities as an employer of its coemployees for the term of its agreement with a client company. A professional employer organization may secure and provide all required voluntary market workers’ compensation insurance for its coemployees under a master workers’ compensation insurance policy in the name of the professional employer organization.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":228984,"text":"A professional employer organization shall notify in writing the client company and coemployees of its intent to terminate any agreement for professional employer services with a client company at the time of or prior to termination. Such notice shall advise the client company of its obligation to secure workers’ compensation coverage. The professional employer organization shall provide a copy of such notice to the Commission and the insurer at the time notice is given to the client company. Workers’ compensation insurance coverage shall continue until termination or for fifteen calendar days after receipt of notice of termination by both the Commission and the client company, whichever is later. This section shall not alter the notice obligations of an insurer seeking to cancel workers’ compensation coverage pursuant to subsection B of § 65.2-804. If a professional employer organization has received notice that its workers’ compensation insurance policy will be cancelled or nonrenewed, the professional employer organization shall notify the client companies within seven calendar days after receipt of the notice. Failure of the professional employer organization to provide such notice to the client companies subrogates the Commission, upon payment of a claim from the Uninsured Employer’s Fund to any coemployee of a client company that did not receive notice, to any right to recover damages which the injured coemployee or his personal representative may have against the professional employer organization.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":228985,"text":"This section shall not exempt a client company from any other license requirements imposed under federal, state, or local law, and a coemployee shall be recognized as an employee of the client company for all purposes. For purposes of licensing requirements, a professional employer organization shall not be deemed to be engaged in the occupation, trade or profession of the client company solely through the provision of professional employer services to that client company.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":228986,"text":"Where a professional employer organization or a staffing service has obtained workers’ compensation insurance to secure its obligations under this title with respect to compensation on account of injury or death by accident, the rights and remedies available to the employee or coemployee under this title shall be exclusive as to both the client company and the professional employer organization or staffing service in accordance with this title.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"7":{"id":228987,"text":"A professional employer organization that fails to comply with the provisions of this title or with the regulations of the Commission shall be subject to the requirements of Chapter 9 (§ 65.2-900 et seq.) of this title. The Commission is authorized to revoke or suspend any registration hereunder if the professional employer organization fails to comply with the provisions of this title or with the regulations of the Commission. If a registration is revoked as herein provided, the Commission may allow the professional employer organization to reregister upon application therefor if, when and after the conditions upon which revocation was based have been corrected and the professional employer organization has complied with all provisions of this title and applicable regulations. Whenever a registration is revoked or suspended the Commission may request the Office of the Attorney General to petition the circuit court of the jurisdiction in which the professional employer organization is located for an injunction to cause such professional employer organization to cease providing professional employer services. Suspension of a registration shall in all cases be for an indefinite time and the suspension may be lifted and rights under the registration fully or partially restored at such time as the Commission determines that the rights of the registrant appear to so require and the interests of the public will not be jeopardized by resumption of operation.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"8":{"id":228988,"text":"Notwithstanding any provision of this title to the contrary, each registered professional employer organization shall be assessed annually by the Commission, in addition to any other assessments provided in this title, an assessment in an amount not to exceed the sums necessary for the registration and supervision of all professional employer organizations. The assessment shall be apportioned and assessed and paid in proportion to the aggregate of the annual payroll of all coemployees shared by or assigned or allocated to the professional employer organization.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"9":{"id":228989,"text":"The Bureau of Insurance of the State Corporation Commission may request and shall receive information filed with the Commission by a professional employer organization. Such information shall be confidential and shall be used solely for informational purposes by the Bureau of Insurance and its staff.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I","next_prefix":"K"},"10":{"id":228990,"text":"No person shall sell, solicit, or negotiate, as those terms are defined in § 38.2-1800, contracts of insurance for or on behalf of a professional employer organization unless such person is licensed for that class of insurance as an insurance agent, as defined in § 38.2-1800.","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J","next_prefix":"L"},"11":{"id":228991,"text":"The Commission may promulgate regulations as it deems necessary for the administration of this section.","type":"section","prefixes":["L"],"prefix":"L","entire_prefix":"L","prefix_anchor":"L","level":1,"prior_prefix":"K"}},"ancestry":[{"id":13374,"edition_id":1,"name":"Insurance and Self-Insurance","identifier":"8","label":"chapter","depth":2,"order_by":1,"parent_id":13199,"metadata":{},"date_created":"2026-06-26 03:44:44","date_modified":"2026-06-26 03:44:44","permalink":{"id":276659,"object_type":"structure","relational_id":13374,"identifier":"8","token":"65.2\/8","url":"\/65.2\/8\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13199,"edition_id":1,"name":"Workers' Compensation","identifier":"65.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:26","date_modified":"2026-06-26 03:44:26","permalink":{"id":276115,"object_type":"structure","relational_id":13199,"identifier":"65.2","token":"65.2","url":"\/65.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":68174,"structure_id":13374,"section_number":"65.2-800","catch_line":"Duty to insure payment of compensation; effect of insurance","url":"\/65.2-800\/","token":"65.2\/8\/65.2-800","metadata":false},{"id":60093,"structure_id":13374,"section_number":"65.2-801","catch_line":"Insurance or proof of financial ability to pay required","url":"\/65.2-801\/","token":"65.2\/8\/65.2-801","metadata":false},{"id":85387,"structure_id":13374,"section_number":"65.2-802","catch_line":"Requirements for licensure as group self-insurance association; annual assessment","url":"\/65.2-802\/","token":"65.2\/8\/65.2-802","metadata":false},{"id":72917,"structure_id":13374,"section_number":"65.2-803","catch_line":"Administrator and service company affiliation prohibited; exception","url":"\/65.2-803\/","token":"65.2\/8\/65.2-803","metadata":false},{"id":62818,"structure_id":13374,"section_number":"65.2-803.1","catch_line":"Requirements for registration as professional employer organization; annual assessment","url":"\/65.2-803.1\/","token":"65.2\/8\/65.2-803.1","metadata":false},{"id":58097,"structure_id":13374,"section_number":"65.2-804","catch_line":"Evidence of compliance with title; notices of cancellation of insurance","url":"\/65.2-804\/","token":"65.2\/8\/65.2-804","metadata":false},{"id":83221,"structure_id":13374,"section_number":"65.2-805","catch_line":"Civil penalty for violation of \u00a7\u00a7 65.2-800, 65.2-803.1, and 65.2-804","url":"\/65.2-805\/","token":"65.2\/8\/65.2-805","metadata":false},{"id":72140,"structure_id":13374,"section_number":"65.2-806","catch_line":"Criminal penalties","url":"\/65.2-806\/","token":"65.2\/8\/65.2-806","metadata":false},{"id":54347,"structure_id":13374,"section_number":"65.2-807","catch_line":"Cost of insurance may not be deducted from wages","url":"\/65.2-807\/","token":"65.2\/8\/65.2-807","metadata":false},{"id":77557,"structure_id":13374,"section_number":"65.2-808","catch_line":"Self-insurance certificate","url":"\/65.2-808\/","token":"65.2\/8\/65.2-808","metadata":false},{"id":82374,"structure_id":13374,"section_number":"65.2-809","catch_line":"Constructive notice to, jurisdiction of, and awards, etc., binding upon insurer","url":"\/65.2-809\/","token":"65.2\/8\/65.2-809","metadata":false},{"id":68876,"structure_id":13374,"section_number":"65.2-810","catch_line":"How formal notice may be given","url":"\/65.2-810\/","token":"65.2\/8\/65.2-810","metadata":false},{"id":68761,"structure_id":13374,"section_number":"65.2-811","catch_line":"Liability of insurer","url":"\/65.2-811\/","token":"65.2\/8\/65.2-811","metadata":false},{"id":70340,"structure_id":13374,"section_number":"65.2-812","catch_line":"Subrogation of insurance carrier to employer's rights; compromise","url":"\/65.2-812\/","token":"65.2\/8\/65.2-812","metadata":false},{"id":74334,"structure_id":13374,"section_number":"65.2-813","catch_line":"Insurance deemed subject to title; approval of forms","url":"\/65.2-813\/","token":"65.2\/8\/65.2-813","metadata":false},{"id":67685,"structure_id":13374,"section_number":"65.2-813.1","catch_line":"Insurers offering policies with deductibles","url":"\/65.2-813.1\/","token":"65.2\/8\/65.2-813.1","metadata":false},{"id":81677,"structure_id":13374,"section_number":"65.2-813.2","catch_line":"Premium discounts; drug-free workplace programs","url":"\/65.2-813.2\/","token":"65.2\/8\/65.2-813.2","metadata":false},{"id":62332,"structure_id":13374,"section_number":"65.2-814","catch_line":"Insurer to furnish written evidence of coverage on request","url":"\/65.2-814\/","token":"65.2\/8\/65.2-814","metadata":false},{"id":59696,"structure_id":13374,"section_number":"65.2-815","catch_line":"Group self-insurance association required to furnish written evidence of membership","url":"\/65.2-815\/","token":"65.2\/8\/65.2-815","metadata":false},{"id":77993,"structure_id":13374,"section_number":"65.2-816","catch_line":"Title not applicable to boiler, etc., insurance","url":"\/65.2-816\/","token":"65.2\/8\/65.2-816","metadata":false},{"id":57348,"structure_id":13374,"section_number":"65.2-817","catch_line":"Rates; cooperation between State Corporation Commission and Workers' Compensation Commission","url":"\/65.2-817\/","token":"65.2\/8\/65.2-817","metadata":false},{"id":80112,"structure_id":13374,"section_number":"65.2-818","catch_line":"Minimum standards of service for insurers","url":"\/65.2-818\/","token":"65.2\/8\/65.2-818","metadata":false},{"id":70096,"structure_id":13374,"section_number":"65.2-819","catch_line":"Penalty for violation of certain provisions","url":"\/65.2-819\/","token":"65.2\/8\/65.2-819","metadata":false},{"id":80066,"structure_id":13374,"section_number":"65.2-820","catch_line":"Application to State Corporation Commission for assignment of risk; insurer assigned risk to issue policy","url":"\/65.2-820\/","token":"65.2\/8\/65.2-820","metadata":false},{"id":57462,"structure_id":13374,"section_number":"65.2-821","catch_line":"State Corporation Commission to make rules and regulations, and establish rating schedules and rates","url":"\/65.2-821\/","token":"65.2\/8\/65.2-821","metadata":false},{"id":68923,"structure_id":13374,"section_number":"65.2-821.1","catch_line":"Payment and reimbursement practices; prohibitions","url":"\/65.2-821.1\/","token":"65.2\/8\/65.2-821.1","metadata":false},{"id":65060,"structure_id":13374,"section_number":"65.2-822","catch_line":"Action by State Corporation Commission upon application","url":"\/65.2-822\/","token":"65.2\/8\/65.2-822","metadata":false},{"id":79323,"structure_id":13374,"section_number":"65.2-823","catch_line":"Information filed with State Corporation Commission by insurance carrier to be confidential; exception","url":"\/65.2-823\/","token":"65.2\/8\/65.2-823","metadata":false},{"id":71179,"structure_id":13374,"section_number":"65.2-824","catch_line":"Disclosures not required of State Corporation Commission; liability for acts or omissions","url":"\/65.2-824\/","token":"65.2\/8\/65.2-824","metadata":false}],"previous_section":{"id":72917,"structure_id":13374,"section_number":"65.2-803","catch_line":"Administrator and service company affiliation prohibited; exception","url":"\/65.2-803\/","token":"65.2\/8\/65.2-803","metadata":false},"next_section":{"id":58097,"structure_id":13374,"section_number":"65.2-804","catch_line":"Evidence of compliance with title; notices of cancellation of insurance","url":"\/65.2-804\/","token":"65.2\/8\/65.2-804","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/65.2-803.1\/","history_text":"

This law was first created in 2000. The record of its establishment is cataloged in chapters 624<\/a> and 718<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2001, chapter 706<\/a>; in 2002, chapter 469<\/a>; in 2005, chapter 158<\/a>.<\/p>","references":[{"id":83221,"section_number":"65.2-805","catch_line":"Civil penalty for violation of \u00a7\u00a7 65.2-800, 65.2-803.1, and 65.2-804","order_by":null,"url":"\/65.2-805\/"}],"refers_to":[{"id":67482,"section_number":"38.2-1800","catch_line":"Definitions","order_by":null,"url":"\/38.2-1800\/"},{"id":58097,"section_number":"65.2-804","catch_line":"Evidence of compliance with title; notices of cancellation of insurance","order_by":null,"url":"\/65.2-804\/"},{"id":63922,"section_number":"65.2-900","catch_line":"Records and reports of accidents","order_by":null,"url":"\/65.2-900\/"}],"permalink":{"id":276677,"object_type":"law","relational_id":62818,"identifier":"65.2-803.1","token":"65.2\/8\/65.2-803.1","url":"\/65.2-803.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/65.2-803.1\/","token":"65.2\/8\/65.2-803.1","dublin_core":{"Title":"Requirements for registration as professional employer organization; annual assessment","Type":"Text","Format":"text\/html","Identifier":"\u00a7 65.2-803.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any business entity desiring to engage in the business of providing professional employer services<\/span> shall register with the Commission<\/span> before any such services may be provided. The Commission<\/span> may require any business entity having a controlling ownership interest in or sharing common ownership with a professional employer organization<\/span> providing professional employer services<\/span> in the Commonwealth to guarantee, in a form prescribed by the Commission<\/span>, performance of all obligations pursuant to this title, including the payment of workers’ compensation benefits. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Each registered professional employer organization<\/span> shall notify the Commission<\/span> and the Bureau of Insurance of the State Corporation Commission<\/span> within 30 calendar days of all new or terminated, in whole or in part, client companies. Upon registration and annually thereafter, each registered professional employer organization<\/span> shall notify the Commission<\/span> and the Bureau of Insurance of the State Corporation Commission<\/span> of all client companies. Such notice shall be confidential and shall not be disclosed to the public, provided that the Commission<\/span> may respond to inquiries as to whether a client company<\/span> has workers’ compensation coverage; however, nothing herein shall be interpreted to prohibit or limit the production of documents containing such information from the professional employer organization<\/span> pursuant to an otherwise lawful subpoena<\/span> issued by a court<\/span> of competent jurisdiction<\/span>. Each such notification shall indicate, by client company<\/span>, if the professional employer organization<\/span> will provide voluntary market workers’ compensation insurance and whether the client company<\/span> will obtain separate workers’ compensation insurance. The Commission<\/span> may require such other information as it deems necessary for the administration of this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> All agreements for professional employer services<\/span> shall be in writing and shall provide a description of the respective rights and obligations of the professional employer organization<\/span> and the client company<\/span>. The professional employer organization<\/span> shall provide a written summary of such rights and obligations to each coemployee<\/span>, including information concerning filing for workers’ compensation and unemployment benefits. No agreement for professional employer services<\/span> shall alter or affect the terms and conditions of any collective bargaining agreement between the client company<\/span> and its employees without the consent of the parties to such collective bargaining agreement. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A professional employer organization<\/span> that is registered with the Commission<\/span> and operating in compliance with the requirements of this section shall be deemed to be an employer of its coemployees<\/span> and may assume responsibilities as an employer of its coemployees<\/span> for the term of its agreement with a client company<\/span>. A professional employer organization<\/span> may secure and provide all required voluntary market workers’ compensation insurance for its coemployees<\/span> under a master workers’ compensation insurance policy in the name of the professional employer organization<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> A professional employer organization<\/span> shall notify in writing the client company<\/span> and coemployees<\/span> of its intent<\/span> to terminate any agreement for professional employer services<\/span> with a client company<\/span> at the time of or prior to termination. Such notice shall advise the client company<\/span> of its obligation to secure workers’ compensation coverage. The professional employer organization<\/span> shall provide a copy of such notice to the Commission<\/span> and the insurer at the time notice is given to the client company<\/span>. Workers’ compensation insurance coverage shall continue until termination or for fifteen calendar days after receipt of notice of termination by both the Commission<\/span> and the client company<\/span>, whichever is later. This section shall not alter the notice obligations of an insurer seeking to cancel workers’ compensation coverage pursuant to subsection B of § 65.2-804<\/a>. If a professional employer organization<\/span> has received notice that its workers’ compensation insurance policy will be cancelled or nonrenewed, the professional employer organization<\/span> shall notify the client companies within seven calendar days after receipt of the notice. Failure of the professional employer organization<\/span> to provide such notice to the client companies subrogates the Commission<\/span>, upon payment of a claim from the Uninsured Employer’s Fund to any coemployee<\/span> of a client company<\/span> that did not receive notice, to any right to recover damages<\/span> which the injured coemployee<\/span> or his personal representative may have against the professional employer organization<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> This section shall not exempt a client company<\/span> from any other license requirements imposed under federal, state, or local law<\/span>, and a coemployee<\/span> shall be recognized as an employee of the client company<\/span> for all purposes. For purposes of licensing requirements, a professional employer organization<\/span> shall not be deemed to be engaged in the occupation, trade or profession of the client company<\/span> solely through the provision of professional employer services<\/span> to that client company<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Where a professional employer organization<\/span> or a staffing service<\/span> has obtained workers’ compensation insurance to secure its obligations under this title with respect to compensation on account of injury<\/span> or death by accident, the rights and remedies available to the employee or coemployee<\/span> under this title shall be exclusive as to both the client company<\/span> and the professional employer organization<\/span> or staffing service<\/span> in accordance with this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> A professional employer organization<\/span> that fails to comply with the provisions of this title or with the regulations of the Commission<\/span> shall be subject to the requirements of Chapter 9 (§ 65.2-900<\/a> et seq.) of this title. The Commission<\/span> is authorized to revoke or suspend any registration hereunder if the professional employer organization<\/span> fails to comply with the provisions of this title or with the regulations of the Commission<\/span>. If a registration is revoked as herein provided, the Commission<\/span> may allow the professional employer organization<\/span> to reregister upon application therefor if, when and after the conditions upon which revocation<\/span> was based have been corrected and the professional employer organization<\/span> has complied with all provisions of this title and applicable regulations. Whenever a registration is revoked or suspended the Commission<\/span> may request the Office of the Attorney General<\/span> to petition<\/span> the circuit<\/span> court<\/span> of the jurisdiction<\/span> in which the professional employer organization<\/span> is located for an injunction<\/span> to cause such professional employer organization<\/span> to cease providing professional employer services<\/span>. Suspension of a registration shall in all cases be for an indefinite time and the suspension may be lifted and rights under the registration fully or partially restored at such time as the Commission<\/span> determines that the rights of the registrant appear to so require and the interests of the public will not be jeopardized by resumption of operation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> Notwithstanding any provision of this title to the contrary, each registered professional employer organization<\/span> shall be assessed annually by the Commission<\/span>, in addition to any other assessments provided in this title, an assessment in an amount not to exceed the sums necessary for the registration and supervision of all professional employer organizations<\/span>. The assessment shall be apportioned and assessed and paid in proportion to the aggregate of the annual payroll of all coemployees<\/span> shared by or assigned or allocated to the professional employer organization<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> The Bureau of Insurance of the State Corporation Commission<\/span> may request and shall receive information filed<\/span> with the Commission<\/span> by a professional employer organization<\/span>. Such information shall be confidential and shall be used solely for informational purposes by the Bureau of Insurance and its staff. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> No person shall sell, solicit, or negotiate, as those terms are defined in § 38.2-1800<\/a>, contracts<\/span> of insurance for or on behalf of a professional employer organization<\/span> unless such person is licensed for that class of insurance as an insurance agent, as defined in § 38.2-1800<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

L.<\/span> The Commission<\/span> may promulgate regulations as it deems necessary for the administration of this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREQUIREMENTS FOR REGISTRATION AS PROFESSIONAL EMPLOYER ORGANIZATION; ANNUAL\nASSESSMENT (\u00a7 65.2-803.1)\n\nA. Any business entity desiring to engage in the business of providing\nprofessional employer services shall register with the Commission before any\nsuch services may be provided. The Commission may require any business entity\nhaving a controlling ownership interest in or sharing common ownership with a\nprofessional employer organization providing professional employer services in\nthe Commonwealth to guarantee, in a form prescribed by the Commission,\nperformance of all obligations pursuant to this title, including the payment of\nworkers’ compensation benefits.\n\nB. Each registered professional employer organization shall notify the\nCommission and the Bureau of Insurance of the State Corporation Commission\nwithin 30 calendar days of all new or terminated, in whole or in part, client\ncompanies. Upon registration and annually thereafter, each registered\nprofessional employer organization shall notify the Commission and the Bureau of\nInsurance of the State Corporation Commission of all client companies. Such\nnotice shall be confidential and shall not be disclosed to the public, provided\nthat the Commission may respond to inquiries as to whether a client company has\nworkers’ compensation coverage; however, nothing herein shall be\ninterpreted to prohibit or limit the production of documents containing such\ninformation from the professional employer organization pursuant to an otherwise\nlawful subpoena issued by a court of competent jurisdiction. Each such\nnotification shall indicate, by client company, if the professional employer\norganization will provide voluntary market workers’ compensation insurance\nand whether the client company will obtain separate workers’ compensation\ninsurance. The Commission may require such other information as it deems\nnecessary for the administration of this section.\n\nC. All agreements for professional employer services shall be in writing and\nshall provide a description of the respective rights and obligations of the\nprofessional employer organization and the client company. The professional\nemployer organization shall provide a written summary of such rights and\nobligations to each coemployee, including information concerning filing for\nworkers’ compensation and unemployment benefits. No agreement for\nprofessional employer services shall alter or affect the terms and conditions of\nany collective bargaining agreement between the client company and its employees\nwithout the consent of the parties to such collective bargaining agreement.\n\nD. A professional employer organization that is registered with the Commission\nand operating in compliance with the requirements of this section shall be\ndeemed to be an employer of its coemployees and may assume responsibilities as\nan employer of its coemployees for the term of its agreement with a client\ncompany. A professional employer organization may secure and provide all\nrequired voluntary market workers’ compensation insurance for its\ncoemployees under a master workers’ compensation insurance policy in the\nname of the professional employer organization.\n\nE. A professional employer organization shall notify in writing the client\ncompany and coemployees of its intent to terminate any agreement for\nprofessional employer services with a client company at the time of or prior to\ntermination. Such notice shall advise the client company of its obligation to\nsecure workers’ compensation coverage. The professional employer\norganization shall provide a copy of such notice to the Commission and the\ninsurer at the time notice is given to the client company. Workers’\ncompensation insurance coverage shall continue until termination or for fifteen\ncalendar days after receipt of notice of termination by both the Commission and\nthe client company, whichever is later. This section shall not alter the notice\nobligations of an insurer seeking to cancel workers’ compensation coverage\npursuant to subsection B of § 65.2-804. If a professional employer\norganization has received notice that its workers’ compensation insurance\npolicy will be cancelled or nonrenewed, the professional employer organization\nshall notify the client companies within seven calendar days after receipt of\nthe notice. Failure of the professional employer organization to provide such\nnotice to the client companies subrogates the Commission, upon payment of a\nclaim from the Uninsured Employer’s Fund to any coemployee of a client\ncompany that did not receive notice, to any right to recover damages which the\ninjured coemployee or his personal representative may have against the\nprofessional employer organization.\n\nF. This section shall not exempt a client company from any other license\nrequirements imposed under federal, state, or local law, and a coemployee shall\nbe recognized as an employee of the client company for all purposes. For\npurposes of licensing requirements, a professional employer organization shall\nnot be deemed to be engaged in the occupation, trade or profession of the client\ncompany solely through the provision of professional employer services to that\nclient company.\n\nG. Where a professional employer organization or a staffing service has obtained\nworkers’ compensation insurance to secure its obligations under this title\nwith respect to compensation on account of injury or death by accident, the\nrights and remedies available to the employee or coemployee under this title\nshall be exclusive as to both the client company and the professional employer\norganization or staffing service in accordance with this title.\n\nH. A professional employer organization that fails to comply with the provisions\nof this title or with the regulations of the Commission shall be subject to the\nrequirements of Chapter 9 (§ 65.2-900 et seq.) of this title. The\nCommission is authorized to revoke or suspend any registration hereunder if the\nprofessional employer organization fails to comply with the provisions of this\ntitle or with the regulations of the Commission. If a registration is revoked as\nherein provided, the Commission may allow the professional employer organization\nto reregister upon application therefor if, when and after the conditions upon\nwhich revocation was based have been corrected and the professional employer\norganization has complied with all provisions of this title and applicable\nregulations. Whenever a registration is revoked or suspended the Commission may\nrequest the Office of the Attorney General to petition the circuit court of the\njurisdiction in which the professional employer organization is located for an\ninjunction to cause such professional employer organization to cease providing\nprofessional employer services. Suspension of a registration shall in all cases\nbe for an indefinite time and the suspension may be lifted and rights under the\nregistration fully or partially restored at such time as the Commission\ndetermines that the rights of the registrant appear to so require and the\ninterests of the public will not be jeopardized by resumption of operation.\n\nI. Notwithstanding any provision of this title to the contrary, each registered\nprofessional employer organization shall be assessed annually by the Commission,\nin addition to any other assessments provided in this title, an assessment in an\namount not to exceed the sums necessary for the registration and supervision of\nall professional employer organizations. The assessment shall be apportioned and\nassessed and paid in proportion to the aggregate of the annual payroll of all\ncoemployees shared by or assigned or allocated to the professional employer\norganization.\n\nJ. The Bureau of Insurance of the State Corporation Commission may request and\nshall receive information filed with the Commission by a professional employer\norganization. Such information shall be confidential and shall be used solely\nfor informational purposes by the Bureau of Insurance and its staff.\n\nK. No person shall sell, solicit, or negotiate, as those terms are defined in\n§ 38.2-1800, contracts of insurance for or on behalf of a professional\nemployer organization unless such person is licensed for that class of insurance\nas an insurance agent, as defined in § 38.2-1800.\n\nL. The Commission may promulgate regulations as it deems necessary for the\nadministration of this section.\n\nHISTORY: 2000, cc. 624, 718; 2001, c. 706; 2002, c. 469; 2005, c. 158.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}