Administrative Code

Virginia Administrative Code
Title 16. Labor and Employment
Agency 30. Virginia Workers' Compensation Commission
9/21/2020

Chapter 100. Regulations for Professional Employer Organizations

16VAC30-100-10. Definitions.

The following words and terms when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise:

"Act" means the Virginia Workers' Compensation Act, Title 65.2 (§ 65.2-100 et seq.) of the Code of Virginia.

"Aggregate annual payroll" means the sum of all payroll reported to the commission by PEOs.

"Agreement" means an agreement for professional employer services as "professional employer services" is defined in § 65.2-101 of the Code of Virginia.

"Calendar year" means a 12-month period beginning January 1 and ending December 31.

"Client company" means "client company" as defined in § 65.2-101 of the Code of Virginia.

"Coemployee" means "coemployee" as defined in § 65.2-101 of the Code of Virginia.

"Commission" means the Virginia Workers' Compensation Commission.

"Electronic" or "electronically" means using a computer-based information input and handling system designated by the commission.

"File" or "filed" means received by the commission. Where a document is filed electronically, it shall be deemed received by the commission at the date and time it is first written to disk on the commission's computer or that of the commission's agent, unless the commission rejects the document.

"Identifying information" means information describing the PEO's place or places of business including street address, mailing address, and telephone numbers; the street address, mailing address, and telephone numbers of its representative designated pursuant to 16VAC30-100-20 C; and information describing the PEO's business form.

"Payroll" means gross amounts paid by a PEO to its coemployees in the Commonwealth of Virginia as compensation during the calendar year immediately preceding the year in which the assessment is calculated. Such gross amounts shall be equal to the sum of all items included in the NCCI definition of remuneration.

"PEO" means a professional employer organization as defined in § 65.2-101 of the Code of Virginia.

Statutory Authority

§§ 65.2-201 and 65.2-803.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 17, Issue 9, eff. February 14, 2001.

16VAC30-100-20. Initial registration.

A. Each PEO shall register as required by § 65.2-803.1 A of the Code of Virginia by filing with the commission an application on a form and in a manner prescribed and furnished by the commission. The application shall include the list of all client companies of the PEO and related insurance information required by § 65.2-803.1 B of the Code of Virginia.

B. Subject to subsection C of this section, a PEO's registration shall be effective when the completed application is filed in the proper format, unless it is rejected by the commission.

C. Each PEO shall comply with the following when it files its application for registration:

1. The PEO shall designate a representative maintaining a street address, mailing address, and telephone number in the Commonwealth of Virginia. This designated representative shall be authorized to receive service of process and communications from the commission. Notice to this designated representative shall be deemed sufficient notice to the PEO for all purposes for which notice is required or permitted under the Act or these regulations.

2. At the time of registration, the PEO and each of its client companies shall be in compliance with the insuring requirement of § 65.2-801 of the Code of Virginia. Each PEO shall certify this compliance in its registration.

D. This registration shall not be transferable.

E. Failure of a PEO to file the application for the registration required by § 65.2-803.1 A of the Code of Virginia and subsection A of this section shall subject the PEO to the penalties provided in § 65.2-902 of the Code of Virginia.

Statutory Authority

§§ 65.2-201 and 65.2-803.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 17, Issue 9, eff. February 14, 2001.

16VAC30-100-30. Annual reporting.

A. Each PEO shall file annually with the commission its report of all client companies and related insurance information required by § 65.2-803.1 B of the Code of Virginia on a form and in a manner prescribed and furnished by the commission. This report shall include the PEO's payroll used in calculating the assessment in 16VAC30-100-70.

B. This report shall be filed by 5 p.m., Eastern Standard Time, on January 31.

C. Failure by a PEO to file the report referenced in subsection A of this section by the deadline in subsection B shall subject the PEO to the penalties provided in §§ 65.2-803.1 H and 65.2-902 of the Code of Virginia.

Statutory Authority

§§ 65.2-201 and 65.2-803.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 17, Issue 9, eff. February 14, 2001.

16VAC30-100-40. Notification of changes in client company status and insurance coverage.

A. Each PEO shall provide notice to the commission when it enters into an agreement with a client company as required by § 65.2-803.1 B of the Code of Virginia. Such notification shall include the related insurance information required by § 65.2-803.1 B of the Code of Virginia.

B. When a PEO enters into an agreement with a client company, the PEO shall notify the client company, in writing, of the client company's obligation to comply with the insuring requirement of § 65.2-801 of the Code of Virginia with respect to its employees who are not coemployees covered under any master policy.

C. The notice to a client company of a PEO's intent to terminate an agreement, as required by § 65.2-803.1 E of the Code of Virginia, shall include the following:

1. The date on which the agreement shall terminate;

2. The date on which the client companies' coverage under a master workers' compensation insurance policy, if any, issued in the name of the PEO will terminate; and

3. The following statement placed conspicuously:

The Virginia Workers' Compensation Act requires that all employers subject to the Act maintain workers' compensation liability insurance. On _____ [date], coverage of your employees under the workers' compensation insurance policy issued to ______________ [name of PEO] will terminate. Therefore, if you are subject to the Act, you must obtain the required coverage. Your failure to obtain coverage may result in you incurring civil penalties of up to $5,000 and additional criminal penalties.

Each PEO shall file with the commission copies of all notices.

D. Each PEO shall also send to the client company notice complying with subdivisions C 1 through C 3 of this section upon its receipt from a client company of notice of the client company's intent to terminate the agreement for professional employer services. The PEO shall file copies of these notices with the commission.

E. The notice and filing obligations imposed by this section and § 65.2-803.1 E of the Code of Virginia shall apply regardless of whether the termination of the agreement for professional employer services is consistent with the terms of the agreement.

F. The notice and filing obligations imposed by this section and § 65.2-803.1 E of the Code of Virginia shall apply where the agreement is terminated by either the PEO or the client company without prior notice of intent to terminate.

G. Failure by a PEO to provide the notices and filings required in this section shall subject the PEO to the penalties provided in §§ 65.2-803.1 H and 65.2-902 of the Code of Virginia.

Statutory Authority

§§ 65.2-201 and 65.2-803.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 19, Issue 7, eff. February 14, 2001.

16VAC30-100-50. Notification of change in identifying information.

A. Each PEO shall have a continuing duty to timely notify the commission of changes in its identifying information in a format and manner prescribed by the commission.

B. Failure by a PEO to timely notify the commission of a change in its identifying information shall subject the PEO to the penalties provided in §§ 65.2-803.1 H and 65.2-902 of the Code of Virginia.

Statutory Authority

§§ 65.2-201 and 65.2-803.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 17, Issue 9, eff. February 14, 2001.

16VAC30-100-60. Requirements for filing with the commission.

A. Unless the commission directs or permits otherwise, each PEO shall make the filings with the commission required by the Act or these regulations electronically in a manner and format prescribed by the commission.

B. Where, under the circumstances, the electronic filing requirement in subsection A would be an undue hardship on a PEO, the PEO may request in writing to the commission a waiver of the requirement. The commission may grant or deny the request in its discretion. Where the commission grants the request, the PEO shall make its report in an alternate format as prescribed by the commission.

C. Each document filed by a PEO with the commission shall be signed by an officer or principal of the PEO. Such signature shall be deemed a certification by that officer or principal on behalf of the PEO that the information contained in the document is true and correct. Electronic submission of any document by a PEO to the commission with the appropriate account number and PIN shall be deemed a signature for all purposes under the Act and these regulations.

Statutory Authority

§§ 65.2-201 and 65.2-803.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 17, Issue 9, eff. February 14, 2001.

16VAC30-100-70. Annual assessment.

A. The commission shall calculate the annual assessment for a PEO required by § 65.2-803.1 I of the Code of Virginia using the following formula:

(a/b) x c where,

a = payroll of the PEO for which assessment is being calculated;

b = aggregate annual payroll; and

c = sums necessary for registration and supervision of all PEOs.

B. Each PEO shall report payroll on the form prescribed by the commission as provided in 16VAC30-100-30.

C. The commission shall calculate the assessment for each PEO and send an appropriate invoice. The PEO shall pay the assessment to the commission no later than 60 days from the date of the invoice. Payment shall be made in the manner prescribed by the commission in the invoice.

D. The assessment shall be nonrefundable, in whole or in part.

E. Failure of a PEO to pay the assessment shall subject the PEO to the penalties provided in §§ 65.2-803.1 H and 65.2-902 of the Code of Virginia.

Statutory Authority

§§ 65.2-201 and 65.2-803.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 17, Issue 9, eff. February 14, 2001.

16VAC30-100-80. Revocation, suspension, and voluntary termination of registration.

A. The commission may suspend or revoke a PEO's registration where it fails to comply with the requirements of the Act or these regulations as provided in § 65.2-803.1 H of the Code of Virginia. A suspension may be for a period of up to 12 months.

B. The following procedure shall apply to a revocation or suspension:

1. The commission shall send written notice to the PEO describing the noncompliance.

2. The PEO shall have 30 days to correct the noncompliance and to provide the commission with written verification of the correction. Where the noncompliance is specifically addressed in the Act or in the commission's regulations, those specific statutory or regulatory provisions shall apply as well.

3. If the PEO fails to comply with subdivision 2 of this subsection, the commission shall initiate a hearing pursuant to § 65.2-704 of the Code of Virginia and provide appropriate notice to the PEO and other proper parties. A decision issued in connection with a hearing shall specify the effective date of the revocation or suspension. Where a suspension is imposed, the decision shall specify the duration of the period of suspension. During a period of suspension or revocation, the PEO shall be deemed to have not registered with the commission as required by § 65.2-803.1 of the Code of Virginia.

4. Review of a decision issued in connection with the proceedings provided in § 65.2-704 of the Code of Virginia shall be as provided in §§ 65.2-705 and 65.2-706 of the Code of Virginia.

C. A PEO whose registration has been revoked may apply to reregister as provided in § 65.2-803.1 H of the Code of Virginia. The PEO shall comply with the relevant provisions of § 65.2-803.1 of the Code of Virginia and these regulations in connection with such application. In addition, the PEO shall submit written documentation verifying that the noncompliance resulting in the revocation has been corrected. The PEO may apply for a hearing as provided in § 65.2-704 of the Code of Virginia to determine if it has satisfied the prerequisites for reregistration.

D. A PEO may voluntarily terminate its registration under § 65.2-803.1 A of the Code of Virginia by filing a written request with the commission. In its request, the PEO may specify a date on which the termination of registration is to be effective. The commission shall issue a response assigning the date on which the PEO's registration will terminate.

E. Suspension, revocation, or voluntary termination of a PEO's registration shall not alter its obligation, or that of its client companies, to maintain the insurance required by Chapter 8 (§ 65.2-800 et seq.) of the Act or any other insurance coverage required by statute or regulation.

Statutory Authority

§§ 65.2-201 and 65.2-803.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 17, Issue 9, eff. February 14, 2001.



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