TN Code § 62-43-102 (2021)
2021 Tennessee Code|Title 62 - Professions, Businesses and Trades|Chapter 43 - Tennessee Professional Employer Organization Act|§ 62-43-102. Chapter Definitions

 As used in this chapter, unless the context otherwise requires:   “Applicant” means a person seeking an initial or renewal registration pursuant to this chapter;   “Audit” means an engagement performed in accordance with the Statements on Auditing Standards (SAS);   “Client” means any person who enters into a professional employer agreement with a professional employer organization;   “Co-employer” means either a professional employer organization or a client;   “Co-employment relationship” means a relationship which is intended to be an ongoing relationship rather than a temporary or project specific one, wherein the rights, duties, and obligations of an employer which arise out of an employment relationship have been shared and allocated between co-employers pursuant to a professional employer agreement and this chapter;   “Covered employee”:  Means an individual having a co-employment relationship with a professional employer organization and a client who meets all of the following criteria:   The individual has received written notice of co-employment with the professional employer organization; and   The individual's co-employment relationship results pursuant to a professional employer agreement; and     Includes individuals who are officers, directors, shareholders, partners, and managers of the client; provided, that such individuals meet the criteria of subdivision (6)(A) and act as operational managers or perform day-to-day operational services for the client, unless the professional employer organization and the client have expressly agreed in the professional employer agreement that such individuals shall not be covered employees;     “Department” means the department of commerce and insurance;   “Local governmental entity” means a governing body, board, commission, committee or department of a municipality or county;   “Person” has the same meaning as in § 1-3-105 and as amended;   “Professional employer agreement” means a written contract between a client and a professional employer organization that provides:  For the co-employment of covered employees;   For the allocation of employer rights and obligations between the client and the professional employer organization with respect to covered employees; and   That the professional employer organization and the client assume the responsibilities required by this chapter;     “Professional employer organization”:  Means any person engaged in the business of providing professional employer services, regardless of the use of the term or conducting business as a “professional employer organization,” “PEO,” “staff leasing company,” “registered staff leasing company,” “employee leasing company,” “administrative employer,” or any other name; and   Includes a professional employer organization group;     “Professional employer organization benefit and welfare plan” means a plan offered to covered employees of a professional employer organization registered pursuant to this chapter;   “Professional employer organization group” means two (2) or more professional employer organizations that are majority owned or commonly controlled by the same entity, parent or controlling person;   “Professional employer services” means the service of entering into co-employment relationships under this chapter in which all or a majority of the employees providing services to a client, a division or work unit of a client are covered employees;   “Registrant” means a professional employer organization registered under this chapter;   “Small operations” means an applicant or registrant with less than fifty million dollars ($50,000,000) in annualized wages;   “Temporary help services” means services consisting of a person:  Recruiting and hiring its own employees;   Finding other organizations that need the services of its employees;   Assigning its employees:   To perform work at or services for the other organizations to support or supplement the other organizations' workforces;   To provide assistance in special work situations such as, but not limited to, employee absences, skill shortages or seasonal workloads; or   To perform special assignments or projects; and     Customarily attempting to reassign its employees to other organizations when they finish each assignment; and     “Working capital” means the excess of current assets over current liabilities as determined by generally accepted accounting principles.