Chapter Definitions

1. Law
2. Tennessee Code
3. Professions, Businesses and Trades
4. Tennessee Professional Employer Organization Act
5. 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”:
   1. Means an individual having a co-employment relationship with a professional employer organization and a client who meets all of the following criteria:
      1. The individual has received written notice of co-employment with the professional employer organization; and
      2. The individual's co-employment relationship results pursuant to a professional employer agreement; and
   2. 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:
    1. For the co-employment of covered employees;
    2. For the allocation of employer rights and obligations between the client and the professional employer organization with respect to covered employees; and
    3. That the professional employer organization and the client assume the responsibilities required by this chapter;
11. “Professional employer organization”:
    1. 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
    2. 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:
    1. Recruiting and hiring its own employees;
    2. Finding other organizations that need the services of its employees;
    3. Assigning its employees:
       1. To perform work at or services for the other organizations to support or supplement the other organizations' workforces;
       2. To provide assistance in special work situations such as, but not limited to, employee absences, skill shortages or seasonal workloads; or
       3. To perform special assignments or projects; and
    4. 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.

Download our app to see the most-to-date content.