2020 Georgia Code
Title 34 - Labor and Industrial Relations
Chapter 7 - Employment Generally; Employer's Liability
Article 1 - General Provisions
Part 2 - Professional Employer Organizations
§ 34-7-6. Professional Employer Organizations; Rights, Powers, and Responsibilities

1. As used in this Code section, the term "professional employer organization" means an employee leasing company as defined in Code Section 34-8-32 that has established a coemployment relationship with another employer, pays the wages of the employees of the coemployer, reserves a right of direction and control over the employees of the coemployer, and assumes responsibility for the withholding and payment of payroll taxes of the coemployer.
2. A professional employer organization may collect information to evaluate costs; may obtain life, accident and sickness, disability income, workers' compensation, and other types of insurance coverage; may establish retirement plans; may have other types of employee benefits; and may discuss such benefits with prospective coemployers and their employees.
3. A coemployer of a professional employer organization shall retain sufficient direction and control over the employees involved in a coemployment relationship as is necessary to conduct its business operations and fulfill its obligations to such employees. Unless otherwise agreed in writing, such coemployer shall be considered to be the sole employer of such employees for licensing purposes, provided that nothing contained in this Code section shall be deemed to prohibit a professional employer organization and its coemployer from agreeing that the professional employer organization shall be considered to be an employer for licensing purposes. The professional employer organization shall give written notice of such an agreement to the appropriate licensing agency and to the employees involved.
4. It is the intent of this Code section that professional employer organizations shall be considered to be employers under this title and are required to comply with the provisions of Code Sections 34-8-32, 34-8-34, and 34-8-172. Professional employer organizations and their coemployer clients are entitled to exclusive remedy under Code Section 34-9-11.

(Code 1981, §34-7-6, enacted by Ga. L. 1999, p. 519, § 1.)

- For survey article on labor and employment law for the period from June 1, 2002 to May 31, 2003, see 55 Mercer L. Rev. 303 (2003).

JUDICIAL DECISIONS

PEO was not liable to employee after contract terminated.

- Professional employer organization (PEO) could qualify as an employer of one of its provided employees under Georgia law; however, a PEO was not liable to a discharged employee for a pay period that occurred after the PEO had terminated its contract with the restaurant group the employee worked for. The PEO was not unjustly enriched because the employee did not perform services for the PEO, and the PEO was not fully paid by the restaurant group. Coleman v. Oasis Outsourcing, Inc., F.3d (11th Cir. July 8, 2019)(Unpublished).

RESEARCH REFERENCES

Am. Jur. 2d.

- 27 Am. Jur. 2d, Employment Relationship, § 5.

ARTICLE 2 EMPLOYER'S LIABILITY FOR INJURIES GENERALLY

Cross references.

- Form of complaint for negligence under Federal Employers Liability Act, § 9-11-114.

Protection of employees from improperly designed or erected scaffolding, staging, or other mechanical device, § 25-15-110.

General duty of employer with respect to employment safety, § 34-2-10.

Protection of employees from accidental contact with high-voltage lines, § 46-3-31.

- For annual survey on labor and employment law, see 66 Mercer L. Rev. 121 (2014).

JUDICIAL DECISIONS

Limitation of benefits to dependents constitutional.

- Because the Workers' Compensation Act's, O.C.G.A. § 34-9-1 et seq., differing treatment of dependent and non-dependent heirs is not irrational and serves the legitimate government purpose of workers' compensation, the Act's limitation on recovery by non-dependent heirs does not violate the due process or equal protection rights guaranteed by the United States Constitution. Barzey v. City of Cuthbert, 295 Ga. 641, 763 S.E.2d 447 (2014).

- Master is liable for the tortious action of a servant when done within the time covered by the employment and in the prosecution of the master's business. Pratt v. Melton, 107 Ga. App. 127, 129 S.E.2d 346 (1962), later appeal, 109 Ga. App. 781, 137 S.E.2d 481 (1964).

- If a servant, who is employed to do certain work for the servant's master, employs another person to assist the servant, the master is liable for the negligence of the assistant only when the servant had authority, express or implied, to employ the servant, or when the act of the employment is ratified by the master. Hockmuth v. Perkins, 55 Ga. App. 649, 191 S.E. 156 (1937).

- When a servant steps aside from an employer's business for no matter how short a time, to do an act entirely disconnected with the employer's business, the master is not liable. Pratt v. Melton, 107 Ga. App. 127, 129 S.E.2d 346 (1962), later appeal, 109 Ga. App. 781, 137 S.E.2d 481 (1964).

- When a person is employed and paid by a servant as a temporary substitute, with the express or implied knowledge of the master, or with a subsequent ratification by the master, the person employed is entitled to the same protection against injury while engaged in the master's work as the regular servant for whom the person is substituting, even though the person may not be entitled to recover wages from the master. Spivey v. Lovett & Brinson, 48 Ga. App. 335, 172 S.E. 658 (1934).

RESEARCH REFERENCES

ALR.

- Loaned servant doctrine under Federal Employers' Liability or Safety Appliance Act, 1 A.L.R.2d 302.

Liability in damages for injury to or death of window washer, 17 A.L.R.2d 637.

Liability of employer for injury resulting from games or other recreational or social activities, 18 A.L.R.2d 1372.

General contractor's liability for injuries to employees of other contractors on the project, 20 A.L.R.2d 868.

Duty and liability of employer to domestic servant for personal injury or death, 49 A.L.R.2d 317.

Master's duty to care for or to furnish medical aid to servant stricken by illness or injury, 64 A.L.R.2d 1108.

Master's liability for failure to inform servant of disease or physical condition disclosed by medical examination, 69 A.L.R.2d 1213.

Liability for injury to one servicing airplane, 76 A.L.R.2d 1070.

Liability of master for injury or death of servant on master's premises where injury occurred outside working hours, 76 A.L.R.2d 1215.

Shipowner's liability to longshoreman for injuries due to aspects of unseaworthiness brought about by acts of stevedore company or latter's servants, 77 A.L.R.2d 829.

Status of gasoline and oil distributor or dealer as agent, employee, independent contractor, or independent dealer as regards responsibility for injury to person or damage to property, 83 A.L.R.2d 1282.

Validity, enforceability, and effect of provision in seamen's employment contract stipulating the maximum recovery for scheduled personal injuries, 9 A.L.R.3d 417.

Master's liability to agricultural worker injured other than by farm machinery, 9 A.L.R.3d 1061.

Liability of owner or operator of motor vehicle for injury caused thereby while it is being repaired or serviced, 15 A.L.R.3d 1387.

Master and servant: employer's liability for injury caused by food or drink purchased by employee in plant facilities, 50 A.L.R.3d 505.

Imputation of servant's or agent's contributory negligence to master or principal, 53 A.L.R.3d 664.

Liability for injury or death of participant in theatrical performance or spectacle, 67 A.L.R.3d 451.

Liability of employer, supervisor, or manager for intentionally or recklessly causing employee emotional distress, 86 A.L.R.3d 454.

Employer's right of action for loss of services or the like against third person tortiously killing or injuring employee, 4 A.L.R.4th 504.

Employer's liability for injury to babysitter in home or similar premises, 29 A.L.R.4th 304.

Liability of employer, supervisor, or manager for intentionally or recklessly causing employee emotional distress, 52 A.L.R.4th 853.

Employer's liability to employee for failure to provide work environment free from tobacco smoke, 63 A.L.R.4th 1021.

Tort liability for window washer's injury or death, 69 A.L.R.4th 207.

Employer's liability for assault, theft, or similar intentional wrong committed by employee at home or business of customer, 13 A.L.R.5th 217.

Employer's liability to employee or agent for injury or death resulting from assault or criminal attack by third person, 40 A.L.R.5th 1.

Pre-emptive effect of Occupational Safety and Health Act of 1970 (29 USC §§ 651 - 678) and standards issued thereunder, 88 A.L.R. Fed. 833.