HI HB2346

Establishes that client companies and professional employer organizations cannot be exempt from federal, state, or county labor and employment laws, including collective bargaining rights and anti-discrimination provisions, with respect to covered employees.

Designates the client company as the "employer" under applicable laws for purposes of determining employment rights and protections, rather than the professional employer organization.

Exempts amounts received by professional employer organizations from client companies for employee wages, salaries, payroll taxes, insurance premiums, and benefits from general excise tax under section 237-24.75, provided the organization complies with tax withholding and employee rights requirements.

Creates a professional employer organization special fund to receive registration fees and interest, with proceeds to be used by the director for administering and enforcing the chapter.

Repeals Chapter 373K and takes effect on July 1, 2012.