Public-domain · open source
OpenJurist

Tenn. Code Ann. § 62-43-102

Chapter definitions

Known as the Tennessee Professional Employer Organization Act

The act spans §§ 62-43-101 to 62-43-114 (14 sections).

Acts 2012, ch. 1081, § 1.

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”: 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

(7) The individual's co-employment relationship results pursuant to a professional employer agreement; and

(8) 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;

(9) “Department” means the department of commerce and insurance;

(10) “Local governmental entity” means a governing body, board, commission, committee or department of a municipality or county;

(11) “Person” has the same meaning as in § 1-3-105 and as amended;

(12) “Professional employer agreement” means a written contract between a client and a professional employer organization that provides: For the co-employment of covered employees;

(13) For the allocation of employer rights and obligations between the client and the professional employer organization with respect to covered employees; and

(14) That the professional employer organization and the client assume the responsibilities required by this chapter;

(15) “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

(16) Includes a professional employer organization group;

(17) “Professional employer organization benefit and welfare plan” means a plan offered to covered employees of a professional employer organization registered pursuant to this chapter;

(18) “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;

(19) “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;

(20) “Registrant” means a professional employer organization registered under this chapter;

(21) “Small operations” means an applicant or registrant with less than fifty million dollars ($50,000,000) in annualized wages;

(22) “Temporary help services” means services consisting of a person: Recruiting and hiring its own employees;

(23) Finding other organizations that need the services of its employees;

(24) Assigning its employees: To perform work at or services for the other organizations to support or supplement the other organizations' workforces;

(25) To provide assistance in special work situations such as, but not limited to, employee absences, skill shortages or seasonal workloads; or

(26) To perform special assignments or projects; and

(27) Customarily attempting to reassign its employees to other organizations when they finish each assignment; and

(28) “Working capital” means the excess of current assets over current liabilities as determined by generally accepted accounting principles.

Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.