A. A covered employee who is required to be licensed, registered or certified under the laws of this state shall be deemed an employee of the client for purposes of the license, registration or certification requirement.

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Terms Used In Arizona Laws 23-574

  • Client: means a person who contracts with a professional employer organization under a professional employer agreement. See Arizona Laws 23-561
  • Co-employment relationship: means all of the following:

    (a) A relationship between co-employers if the rights, duties and obligations of an employer that arise out of an employment relationship are allocated between co-employers subject to a professional employer agreement and this article, and the relationship is intended to be an ongoing relationship and not a temporary or project specific relationship. See Arizona Laws 23-561

B. A professional employer organization shall not be deemed to be engaged in any occupation, trade, profession or other activity that is subject to licensing, registration or certification requirements under the laws of this state solely on the basis of entering into and maintaining a co-employment relationship with a covered employee who is required to be regulated or certified.

C. Unless otherwise expressly agreed to by a client in a professional employment agreement, a client shall maintain the right to direct and control the professional or licensed activities of the covered employees and the client’s business.