(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.