2025 Oregon Revised Statutes
Volume : 16 - Trade Practices, Labor and Employment
Chapter 656 - Workers’ Compensation
Section 656.849 - Definitions for PEOs.

(1) "Client worker" means an individual who performs services for compensation for the client of a professional employer organization.

(2) "Covered employee" means a client worker for whom a PEO has assumed employer responsibilities under a PEO relationship.

(3) "Direct hire employee" means a client worker for whom a PEO has not assumed employer responsibilities under a PEO relationship.

(4) "Multiple coordinated policy basis" means an arrangement under which a separate policy for workers’ compensation coverage is issued to or on behalf of each client or group of affiliated clients of a PEO, which coordinates the premium obligations and stated policy communications with respect to the policy.

(5) "PEO relationship" means an agreement between a PEO and a client employer under which certain employer responsibilities for some or all of the client employer’s workers are allocated.

(6)(a) "Professional employer organization" or "PEO" means a person that enters into a PEO relationship with a client employer.

(b) "Professional employer organization" or "PEO" does not mean a person that solely provides workers to a client on a temporary basis or a person that provides payroll processing or similar administrative services without assuming employer responsibilities for client workers.

(7) "Temporary basis" means providing workers to a client:

(a) For special situations, including but not limited to employee absences, employee leaves, professional skill shortages, seasonal workloads and special assignments and projects with the expectation that the position will be terminated when the special situation ends.

(b) As probationary new hires with a reasonable expectation of transitioning to permanent employment with the client, if the client uses a preestablished probationary period in its overall employment selection program.

(8) "Temporary service provider" means a person that:

(a) Regardless of the terminology the parties use to describe the relationship, enters into contracts with clients under which:

(A) The person provides workers to the client on a temporary basis;

(B) The worker’s contract of employment is with the person rather than the person’s client; and

(C) The person retains all employer responsibilities for the worker, except to the extent necessary to allow the person’s client to direct and control the services provided by the worker for the client; and

(b) Customarily attempts to reassign the person’s workers to other clients when the workers finish each assignment, except for workers provided as described in subsection (7)(b) of this section. [2025 c.78 §2]

Note: 656.849 becomes operative July 1, 2027. See section 23, chapter 78, Oregon Laws 2025.