§ 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.

Legislative History

Acts 2012, ch. 1081, § 1.