{"data":{"id":"us-tn/tenn.-code-ann.-62-43-102","jurisdiction":"us-tn","citation":"Tenn. Code Ann. § 62-43-102","heading":"Chapter definitions","body":"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 suppo\ntions\" 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.\nAs used in this chapter, unless the context otherwise requires:\n(1) \"Applicant\" means a person seeking an initial or renewal registration pursuant to this chapter;\n(2) \"Audit\" means an engagement performed in accordance with the Statements on Auditing Standards (SAS);\n(3) \"Client\" means any person who enters into a professional employer agreement with a professional employer organization;\n(4) \"Co-employer\" means either a professional employer organization or a client;\n(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;\n(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;\n(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\nt be covered employees;\n(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\n(i) The individual has received written notice of co-employment with the professional employer organization; and\n(ii) The individual's co-employment relationship results pursuant to a professional employer agreement; and\n(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;\n(7) \"Department\" means the department of commerce and insurance;\n(8) \"Local governmental entity\" means a governing body, board, commission, committee or department of a municipality or county;\n(9) \"Person\" has the same meaning as in § 1-3-105 and as amended;\n(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;\n(A) For the co-employment of covered employees;\n(B) For the allocation of employer rights and obligations between the client and the professional employer organization with respect to covered employees; and\n(C) That the professional employer organization and the client assume the responsibilities required by this chapter;\n(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;\n(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\n(B) Includes a professional employer organization group;\n(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;\n(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;\n(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;\n(15) \"Registrant\" means a professional employer organization registered under this chapter;\n(16) \"Small operations\" means an applicant or registrant with less than fifty million dollars ($50,000,000) in annualized wages;\n-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;\n(15) \"Registrant\" means a professional employer organization registered under this chapter;\n(16) \"Small operations\" means an applicant or registrant with less than fifty million dollars ($50,000,000) in annualized wages;\n(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\n(A) Recruiting and hiring its own employees;\n(B) Finding other organizations that need the services of its employees;\n(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\n(i) To perform work at or services for the other organizations to support or supplement the other organizations' workforces;\n(ii) To provide assistance in special work situations such as, but not limited to, employee absences, skill shortages or seasonal workloads; or\n(iii) To perform special assignments or projects; and\n(D) Customarily attempting to reassign its employees to other organizations when they finish each assignment; and\n(18) \"Working capital\" means the excess of current assets over current liabilities as determined by generally accepted accounting principles.","path":["TN Code","Title 62","Chapter 43"],"source_url":"https://oss-data-us.vaquill.ai/v2026.08/us_tn_statutes.parquet","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:26Z","sha256":"f904f93fc6c74b8405b1353cd5b5e331fb2912e89128a430f8889a85a116071a","source_id":"us-tn","stale":false,"prev":"us-tn/tenn.-code-ann.-62-43-101","next":"us-tn/tenn.-code-ann.-62-43-103"},"notice":"GroundRules: Original legal text. Not legal advice."}