Code of Massachusetts Regulations
454 CMR - DEPARTMENT OF LABOR STANDARDS
Title 454 CMR 30.00 - Professional Employer Organization Registration Regulations
Section 30.04 - Application Requirements for PEOs
Current through Register 1531, September 27, 2024
(1) Any person providing professional employer services or soliciting clients, or advertising such services in the Commonwealth shall submit to the department a completed application for PEO registration, pay the required registration fee and provide all required information on a form prescribed by the director.
(2) Positive Working Capital. Each PEO or collectively each PEO group shall maintain positive working capital necessary to meet its financial obligations to provide professional employer services, and shall submit a surety bond as set forth in 454 CMR 30.04(3).
(3) Surety Bond. A surety bond in the amount of $250,000 payable to "The people of the Commonwealth" shall be submitted along with the initial application for registration and filed with the Department of Labor Standards, as the keeper of the bond. Said bond shall be maintained while the registration remains in effect or any obligations or liabilities of the registrant remain outstanding. Such bond shall be held by a depository designated by the department, securing payment by the PEO of all taxes, wages, benefits or other entitlement due to or with respect to covered employees, if the PEO does not make such payments when due.
(4) Copy of PEO Agreement. As the relationship between the client, PEO, and each covered employee, are governed by professional employer agreements, a copy of the registrant's standard comprehensive PEO agreement shall be submitted with the initial application for PEO registration. Each professional employer agreement shall include:
(5)
Registration
Fee. Applications for PEO registration must be accompanied by
payment of the application fee made payable to the "Commonwealth of
Massachusetts" in the annual amount of $500.00. Registration fees may be
processed online through the Department of Labor Standards website at