{"data":{"id":"us-ut/utah-code-31a-40-401","jurisdiction":"us-ut","citation":"Utah Code § 31A-40-401","heading":"Prohibited acts.","body":"(1) A person may not:\n(a) offer or provide a professional employer service if the person is not licensed under this chapter;\n(b) use one of the following names if the person is not licensed under this chapter:\n(i) \"administrative employer\";\n(ii) \"employee leasing\";\n(iii) \"PEO\";\n(iv) \"professional employer organization\";\n(v) \"staff leasing\"; or\n(vi) other name that represents the provision of a professional employer service;\n(c) knowingly provide false or fraudulent information to the commissioner:\n(i) in conjunction with an application to be licensed or to renew a license under this chapter; or\n(ii) in a report required under this chapter;\n(d) knowingly make a material misrepresentation to the commissioner or other governmental agency;\n(e) fail to make a filing with a state agency that is required by this chapter or the professional employer agreement within 30 days of the day on which the filing is due;\n(f) fail to make a payment to a state agency that is required by this chapter or the professional employer agreement within 30 days of the day on which the payment is due;\n(g)\n(i) offer a covered employee a self-funded medical plan unless the self-funded medical plan is maintained for the sole benefit of covered employees;\n(ii) misrepresent that a self-funded medical plan it offers is other than self-funded; or\n(iii) offer to a covered employee a self-funded or partially self-funded medical plan without delivering to a plan participant a summary plan description that accurately describes the terms of the plan, including disclosure that the plan is self-funded or partially self-funded;\n(h) subject to Subsection (2), divert to another purpose or use other than as designated funds paid by a client to the professional employer organization and designated for:\n(i) compensation of a covered employee;\n(ii) a benefit of a covered employee;\n(iii) a payroll-related tax;\n(iv) an unemployment insurance contribution;\n(v) withholding of compensation for a covered employee;\n(vi) a workers' compensation premium; or\n(vii) another assessment paid by a professional employer organization to or on behalf of a covered employee under a professional employer agreement;\n(i) provide a covered employee to a client under a provision, term, or condition that is not contained in a professional employer arrangement between the professional employer organization and client;\n(j) engage in a willful, fraudulent, or deceitful act that:\n(i) is by a professional employer organization, caused by a professional employer organization, or at a professional employer organization's direction; and\n(ii) causes material injury to a client or covered employee;\n(k) fail to comply with a federal law or state law, to the extent state law is not preempted by federal law, regarding an employee benefit offered to an employee; or\n(l) willfully or recklessly violate this chapter or an order or rule issued by the commissioner under this chapter.\n(2) If a client defaults on a professional employer agreement or otherwise fails to pay a professional employer organization, the professional employer organization is not in violation of this section if the professional employer organization allocates the deficient payment to the portions of an invoice.","path":["Title 31A Insurance Code","Chapter 31A-40 Professional Employer Organization Licensing Act","Part 31A-40-4 Enforcement"],"source_url":"https://le.utah.gov/xcode/Title31A/Chapter40/31A-40-S401.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"555de53ab729605f85a9ba4f9ac425e02469e6acfcc16fb50db802d015531a77","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-31a-40-309","next":"us-ut/utah-code-31a-40-402"},"notice":"GroundRules: Original legal text. Not legal advice."}