§ 62-43-101. Short Title
This chapter shall be known and may be cited as the “Tennessee Professional Employer Organization Act.”
§ 62-43-102. Chapter Definitions
As used in this chapter, unless the context otherwise requires: “Applicant” means a person seeking an initial or renewal registration pursuant to this chapter; “Audit” means an engagement performed in accordance with the Statements on Auditing Standards (SAS); “Client” means any person who enters into a professional employer agreement with a professional employer organization; “Co-employer” […]
§ 62-43-103. Rules — Creation of Professional Employer Organization Advisory Council — Composition of Council — Officers — Compensation — Powers and Duties — Administration — Recommendations for Appointments to Council
The department may promulgate rules and prescribe forms reasonably necessary for the administration and enforcement of §§ 62-43-106, 62-43-107 and 62-43-112. Rules shall be promulgated pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5 and as amended. The professional employer organization advisory council is created and shall consist of five (5) […]
§ 62-43-104. Confidentiality
All records, reports and other information obtained from an applicant or registrant under this chapter, except to the extent necessary for the proper administration of this chapter by the department, shall be confidential and shall not be published or open to public inspection other than to public employees in the actual performance of their public […]
§ 62-43-105. Chapter or Professional Employer Agreements Do Not Affect Collective Bargaining Agreements, or Federal or State Labor Relations Law — Limits on Chapter or Professional Employer Agreements — Determination of Tax Credits and Economic Incentives
Nothing contained in this chapter or in any professional employer agreement shall affect, modify or amend any collective bargaining agreement, or the rights or obligations of any client, professional employer organization or covered employee under: The National Labor Relations Act (29 U.S.C. §§ 151 et seq.), and as amended; The Railway Labor Act (45 U.S.C. […]
§ 62-43-106. Registration
No person shall provide, advertise or otherwise hold itself out as providing professional employer services in this state unless such person is registered under this chapter. The department shall register an applicant meeting the requirements of this chapter. If the department denies registration to an applicant, the department shall provide written notice that includes the […]
§ 62-43-107. Fees
The department may establish the following fees by rule: Initial application fee; Initial registration fee, which includes a fee for limited registration, as applicable; and Renewal registration fee. No fee charged pursuant to this section shall exceed the amount reasonably necessary for the administration of this chapter. All fees collected by this state pursuant to […]
§ 62-43-108. Basis of Co-Employment Relationship
The co-employment relationship shall be based on a written professional employer agreement between the client and the professional employer organization setting forth the responsibilities and duties of each co-employer. The professional employer agreement shall disclose to the client the services to be rendered, including charges and fees, the respective rights and obligations of the parties […]
§ 62-43-109. Professional Employer Organization Deemed Employer
A professional employer organization shall be deemed an employer of its covered employees and shall pay state unemployment premiums as required by the Tennessee Employment Security Law, compiled in title 50, chapter 7 and as amended. A professional employer organization shall keep separate records and submit separate state unemployment insurance wage and premium reports with […]
§ 62-43-110. Duties of Professional Employer Organization
A professional employer organization shall: Ensure that its Tennessee covered employees are covered by workers’ compensation insurance provided in accordance with title 50 and the applicable Tennessee insurance laws and regulations as amended; Notify the department and its clients within ten (10) days of any notice of cancellation of its workers’ compensation coverage; and Notify […]
§ 62-43-111. Collecting and Assessing Sales Tax
Covered employees whose services are subject to sales tax shall be deemed the employees of the client for purposes of collecting and levying sales tax on the services performed by the covered employee. Nothing contained in this chapter shall relieve a client of any sales tax liability with respect to its goods or services. Any […]
§ 62-43-112. Violations — Grounds for Action
No person shall: Submit false information to the department; Make a materially false entry in the records of a professional employer organization; or Violate this chapter. The following constitute grounds for which the department may take action under subsection (c) against a person subject to this chapter: Being convicted of an offence or disciplined as […]
§ 62-43-113. Severability
The provisions of this chapter are severable. If any provision of this chapter or application thereof to any person or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application.
§ 62-43-114. Rules of the Former Tennessee Employee Leasing Act Remain in Effect — Effect of Current Licenses — Recent Appointments to Advisory Board
Rules promulgated pursuant to the Tennessee Employee Leasing Act, that are in effect prior to May 21, 2012, shall remain in effect unless such rules are in conflict with this chapter or until modified or repealed by the department. A plan, adopted by a study committee establishing criteria for a staff leasing company sponsoring and […]