2023 Tennessee Code › Title 62 - PROFESSIONS, BUSINESSES AND TRADES (§§ 62-1-101 — 62-76-203) › Chapter 43 - TENNESSEE PROFESSIONAL EMPLOYER ORGANIZATION ACT (§§ 62-43-101 — 62-43-114) › Section 62-43-102 - Chapter definitions

As used in this chapter, unless the context otherwise requires:
(1)
"Applicant" means a person seeking an initial or renewal registration pursuant to this chapter;
(2)
"Audit" means an engagement performed in accordance with the Statements on Auditing Standards (SAS);
(3)
"Client" means any person who enters into a professional employer agreement with a professional employer organization;
(4)
"Co-employer" means either a professional employer organization or a client;
(5)
"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;
(6)
"Covered employee":
(A)
Means an individual having a co-employment relationship with a professional employer organization and a client who meets all of the following criteria:
(i)
The individual has received written notice of co-employment with the professional employer organization; and
(ii)
The individual's co-employment relationship results pursuant to a professional employer agreement; and
(B)
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;
(7)
"Department" means the department of commerce and insurance;
(8)
"Local governmental entity" means a governing body, board, commission, committee or department of a municipality or county;
(9)
"Person" has the same meaning as in §
1-3-105
and as amended;
(10)
"Professional employer agreement" means a written contract between a client and a professional employer organization that provides:
(A)
For the co-employment of covered employees;
(B)
For the allocation of employer rights and obligations between the client and the professional employer organization with respect to covered employees; and
(C)
That the professional employer organization and the client assume the responsibilities required by this chapter;
(11)
"Professional employer organization":
(A)
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
(B)
Includes a professional employer organization group;
(12)
"Professional employer organization benefit and welfare plan" means a plan offered to covered employees of a professional employer organization registered pursuant to this chapter;
(13)
"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;
(14)
"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;
(15)
"Registrant" means a professional employer organization registered under this chapter;
(16)
"Small operations" means an applicant or registrant with less than fifty million dollars ($50,000,000) in annualized wages;
(17)
"Temporary help services" means services consisting of a person:
(A)
Recruiting and hiring its own employees;
(B)
Finding other organizations that need the services of its employees;
(C)
Assigning its employees:
(i)
To perform work at or services for the other organizations to support or supplement the other organizations' workforces;
(ii)
To provide assistance in special work situations such as, but not limited to, employee absences, skill shortages or seasonal workloads; or
(iii)
To perform special assignments or projects; and
(D)
Customarily attempting to reassign its employees to other organizations when they finish each assignment; and
(18)
"Working capital" means the excess of current assets over current liabilities as determined by generally accepted accounting principles.
Acts 2012, ch. 1081, § 1.