CHAPTER 2. DEFINITIONS

IC 27-16-2
    Chapter 2. Definitions

IC 27-16-2-1
Application of definitions
    Sec. 1. The definitions in this chapter apply throughout thisarticle.
As added by P.L.245-2005, SEC.7.

IC 27-16-2-2
"Administrative fee"
    Sec. 2. (a) "Administrative fee" means the fee charged to a clientby a professional employer organization for professional employerservices.
    (b) The term does not include any amount charged to a client bya professional employer organization for wages and salaries,benefits, worker's compensation, payroll taxes, withholding, or otherassessments paid by a professional employer organization to or onbehalf of a covered employee.
As added by P.L.245-2005, SEC.7.

IC 27-16-2-3
"Client"
    Sec. 3. "Client" means a person that enters into a professionalemployer agreement with a professional employer organization.
As added by P.L.245-2005, SEC.7.

IC 27-16-2-4
"Co-employed"
    Sec. 4. "Co-employed" means that an individual iscontemporaneously employed by both a client and a professionalemployer organization.
As added by P.L.245-2005, SEC.7.

IC 27-16-2-5
"Co-employer"
    Sec. 5. "Co-employer" refers to a client or a professionalemployer organization that has entered into a professional employeragreement and has a relationship with a co-employed individual.
As added by P.L.245-2005, SEC.7.

IC 27-16-2-6
"Co-employment relationship"
    Sec. 6. "Co-employment relationship" means a relationship:
        (1) between a:
            (A) client and a professional employer organization; or
            (B) co-employer and a covered employee; and
        (2) that results from the client and the professional employerorganization entering into a professional employer agreement.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-7
"Commissioner"
    Sec. 7. "Commissioner" refers to the insurance commissionerappointed under IC 27-1-1-2.
As added by P.L.245-2005, SEC.7.

IC 27-16-2-8
"Covered employee"
    Sec. 8. (a) "Covered employee" means an individual who isco-employed.
    (b) The term includes an individual who is an officer, a director,a shareholder, a partner, or a manager of a client to the extent theprofessional employer organization and the client expressly agreethat the individual:
        (1) is described in subsection (a); and
        (2) acts as an operational manager or performs day to dayoperational services for the client;
as reflected in the professional employer agreement.
As added by P.L.245-2005, SEC.7.

IC 27-16-2-9
"Department"
    Sec. 9. "Department" refers to the department of insurance createdby IC 27-1-1-1.
As added by P.L.245-2005, SEC.7.

IC 27-16-2-10
"PEO group"
    Sec. 10. "PEO group" means two (2) or more professionalemployer organizations that are majority owned or commonlycontrolled by the same entity, parent, or controlling person.
As added by P.L.245-2005, SEC.7.

IC 27-16-2-11
"Person"
    Sec. 11. "Person" means an individual, a partnership, acorporation, a limited liability company, an association, or anotherlegally recognized entity.
As added by P.L.245-2005, SEC.7.

IC 27-16-2-12
"Professional employer agreement"
    Sec. 12. "Professional employer agreement" means a writtencontract between a person and a professional employer organization:
        (1) under which all or a majority of the person's employeesbecome covered employees;
        (2) that provides for the allocation of employer rights andobligations between the person and the professional employerorganization with respect to the covered employees; and
        (3) that specifies the professional employer services that will be

provided.
As added by P.L.245-2005, SEC.7.

IC 27-16-2-13
"Professional employer organization" or "PEO"
    Sec. 13. (a) "Professional employer organization" or "PEO" meansa person engaged in the business of providing professional employerservices.
    (b) The term does not include the following:
        (1) An arrangement through which a person:
            (A) whose principal business activity is an activity otherthan entering into professional employer agreements; and
            (B) that does not hold the person out as a professionalemployer organization;
        shares employees with a commonly owned company within themeaning of Section 414(b) and 414(c) of the Internal RevenueCode of 1986, as amended.
        (2) An independent contractor arrangement through which aperson:
            (A) assumes responsibility for a product produced or aservice performed by the person or the person's agent; and
            (B) retains and exercises primary direction and control overthe work performed by an individual whose services aresupplied under the independent contractor arrangement.
        (3) The provision of temporary help services.
As added by P.L.245-2005, SEC.7.

IC 27-16-2-14
"Professional employer services"
    Sec. 14. "Professional employer services" means the services thatare provided to a client by a professional employer organizationunder a professional employer agreement.
As added by P.L.245-2005, SEC.7.

IC 27-16-2-15
"Temporary help service"
    Sec. 15. "Temporary help service" means a service consisting ofa person that:
        (1) recruits and hires the person's own employees, not includingan officer, a manager, or a controlling person of a client towhich the person's own employee is assigned by the person;
        (2) identifies organizations that need the services of employeesdescribed in subdivision (1);
        (3) assigns employees described in subdivision (1) to:
            (A) perform work or services for organizations described insubdivision (2);
            (B) support or supplement the workforces of organizationsdescribed in subdivision (2); or
            (C) provide assistance in special work situations, includingemployee absences, skill shortages, seasonal workloads, and

special assignments or projects; and
        (4) customarily attempts to reassign the employees described insubdivision (1) to other organizations when an assignmentdescribed in subdivision (3) is completed.
As added by P.L.245-2005, SEC.7.