§ 31A-40-201. Enforceable rights and obligations.

(1) In a coemployment relationship under a professional employer agreement: (a) a professional employer organization: (i) may only enforce a right of an employer that is specifically allocated to the professional employer organization under the professional employer agreement or this chapter; and (ii) is subject only to an obligation of an employer specifically allocated to the professional employer organization by the professional employer agreement or this chapter; and (b) a client: (i) may enforce a right of an employer: (A) allocated to the client in the professional employer agreement or this chapter; or (B) not specifically allocated to the professional employer organization under the professional employer agreement or this chapter; and (ii) is subject to an obligation of an employer: (A) allocated to the client by the professional employer agreement or this chapter; or (B) not specifically allocated to a professional employer organization by the professional employer agreement or this chapter. (2) A right or obligation of a professional employer organization as a coemployer of a covered employee is limited to a right or obligation arising pursuant to the professional employer agreement and this chapter during the term of coemployment of the covered employee by the professional employer organization.