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If a PC is under the effect of some Dominate effect, they can be targeted by the other PCs without violating the PVP rule. Though, tactically speaking, attacking a dominated person is generally not a great idea as killing them is expensive.
I've found that the best way to manage dominated PCs as a GM is to give the player orders, and then allow the player to act them out in a way they feel their PC would do them.
Also, a good bit of advice to keep in mind is that you usually want to give them orders that are detrimental to the party but not directly harmful to get around that second will save invoked whenever an order that goes against the nature of the PC is given.
For instance, you might tell that PC to defend the enemy party. You might also just tell the dominated PC to leave the room/building/region or something like that to remove them from combat. But ordering the PC to attack their friends is often a bad choice.
Hope that helps.
