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 ollowing 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 act 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 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 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.
Tennessee Legal Code