2010 Tennessee Code
Title 62 - Professions, Businesses and Trades
Chapter 43 - Tennessee Employee Leasing Act
62-43-103 - Chapter definitions.

62-43-103. Chapter definitions.

As used in this chapter, unless the context otherwise requires:

     (1)  “Advisory board” means the advisory board of staff leasing companies;

     (2)  “Applicant” means a person seeking to be licensed under this chapter;

     (3)  “Client” means a person who obtains all or part of its work force for another person through a staff leasing arrangement;

     (4)  “Commissioner” means the commissioner of commerce and insurance or the commissioner's authorized representative;

     (5)  “Controlling person” means:

          (A)  Any natural person who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of any staff leasing company, through ownership of voting securities, by contract or otherwise; or

          (B)  Any natural person employed, appointed or authorized by a staff leasing company to enter into a contractual relationship with a client on behalf of the staff leasing company;

     (6)  “Good moral character” means a personal history of honesty, trustworthiness, fairness, a good reputation for fair dealings and respect for the rights of others and for the laws of this state and nation;

     (7)  “Licensee” means a person licensed as a staff leasing company or staff leasing group under this chapter;

     (8)  “Person” means an individual, an association, a company, a firm, a partnership or a corporation;

     (9)  (A)  “Staff leasing arrangement” means an arrangement, under contract or otherwise, whereby:

                (i)  A staff leasing company assigns employees to perform services for a client;

                (ii)  The arrangement sets no restriction or limitation on the duration of employment; and

                (iii)  Employer responsibilities are in fact shared by the staff leasing company and the client;

          (B)  For the purposes of this chapter, a “staff leasing arrangement” does not include:

                (i)  Personnel services, as defined under chapter 31 of this title [repealed];

                (ii)  Arrangements wherein a person, whose principal business activity is not entering into staff leasing arrangements, shares employees with a commonly owned company within the meaning of § 414(b) and (c) of the Internal Revenue Code of 1986, codified in 26 U.S.C. § 414(b) and (c), and that does not hold itself out as a staff leasing company; or

                (iii)  Arrangements for which a person assumes full responsibility for the product or service performed by the person or the person's agents and retains and exercises, both legally and in fact, a complete right of direction and control over the individuals whose services are supplied under the contractual arrangements, and the person and the person's agents perform a specified function for the recipient that is separate and divisible from the primary business or operations of the recipient;

     (10)  “Staff leasing company” or “leasing company” means an individual or business that, under an agreement between the client company and the leasing company, and for a fee, places all or substantially all of the regular, full-time employees of the client company on the leasing company's payroll and leases them to the client company on an ongoing basis with no restriction or limitation on the duration of employment; and

     (11)  “Staff leasing group” means two (2) or more, but no more than five (5), corporate staff leasing companies each of which are majority owned by the same ultimate parent, entity, or person.

[Acts 1994, ch. 950, § 4; 1996, ch. 887, §§ 1, 2.]