Ind. Code ch. 27-16-3

in effect

Ind. Code § 27-16-3-1 Effect on collective bargaining agreement or federal rights or obligations

Sec. 1. This article and a professional employer agreement do not affect, modify, or amend: (1) a collective bargaining agreement; or (2) rights or obligations of a client, PEO, or covered employee under: (A) the federal National Labor Relations Act (29 U.S.C. 151 et seq.); (B) the federal Railway Labor Act (45 U.S.C. 151 et seq.); or (C) IC 22-7. As added by P.L.245-2005, SEC.7.

Ind. Code § 27-16-3-2 Effect on duties

Sec. 2. This article and a professional employer agreement do not do the following: (1) Diminish, abolish, or remove the obligations of a client to a covered employee that exist before the effective date of the professional employer agreement. (2) Affect, modify, or amend a contractual relationship or restrictive covenant: (A) between a covered employee and a client that is in effect on the effective date of the professional employer agreement; or (B) that is entered into between a client and a covered employee after the effective date of the professional employer agreement. A PEO is not responsible or liable for a dispute in connection with or arising out of a contractual relationship or restrictive covenant described in this subdivision unless the PEO has otherwise specifically agreed in writing. (3) Create a new or additional enforceable right of a covered employee against a PEO that is not specifically provided by the professional employer agreement or this article. As added by P.L.245-2005, SEC.7.

Ind. Code § 27-16-3-3 Effect on federal, state, or local requirements

Sec. 3. (a) This article and a professional employer agreement do not affect, modify, or amend a federal, state, or local: (1) license; (2) registration; or (3) certification; requirement that applies to a client or covered employee. (b) The following apply to a federal, state, or local requirement described in subsection (a): (1) A covered employee who is required to be licensed, registered, or certified is considered solely an employee of the client for purposes of a license, registration, or certification requirement. (2) A PEO is not considered to engage in an occupation, a trade, a profession, or another activity that is: (A) subject to a license, registration, or certification requirement; or (B) otherwise regulated by a governmental entity; solely because the PEO has entered into and maintained a co-employment relationship with a covered employee who is subject to a requirement or regulation described in clause (A) or (B). (3) A client has the sole right of direction and control of the professional or licensed activities of a covered employee and of the client's business. (4) Only a: (A) covered employee; or (B) client; that is subject to a requirement or regulation described in subdivision (2)(A) or (2)(B) is subject to the regulation by a regulatory or governmental entity responsible for licensing, registration, certification, or other regulation of the covered employee or client. As added by P.L.245-2005, SEC.7.

Ind. Code § 27-16-3-4 Effect on tax credits and incentives

Sec. 4. (a) For purposes of the determination of tax credits and other economic incentives: (1) provided by the state or another governmental entity; and (2) based on employment; a covered employee is considered an employee solely of the client. (b) A client is entitled to the benefit of any tax credit, economic incentive, or other benefit arising as the result of the employment of a covered employee of the client. (c) If the grant or amount of an incentive is based on the number of employees a client employs: (1) each client must be treated as employing only the covered employees actually working in the client's business operations; and (2) covered employees working for other clients of the PEO must not be counted. (d) A PEO shall provide, upon request by a client or an agency or a department of the state or of another governmental entity, employment information: (1) reasonably required by an agency or a department of the state or of another governmental entity that is responsible for administration of a tax credit or economic incentive described in this section; and (2) necessary; to support a request, a claim, an application, or another action by a client seeking a tax credit or an economic incentive. As added by P.L.245-2005, SEC.7.

Ind. Code § 27-16-3-5 Effect on government contracts

Sec. 5. With respect to a bid, a contract, a purchase order, or an agreement entered into with the state or a political subdivision of the state, a client's status or certification as a: (1) small, minority owned, disadvantaged, or woman owned business enterprise; or (2) historically underutilized business; is not affected because the client has entered into the professional employment agreement. As added by P.L.245-2005, SEC.7.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/27Fetched: 10/17/2026