Arizona Laws 23-901.08. Professional employer organizations
A. A person engaged in the business of providing professional employer services is subject to this chapter regardless of whether the person uses the term professional employer organization, PEO, staff leasing company, registered staff leasing company, employee leasing company or any other name.
Terms Used In Arizona Laws 23-901.08
- Client: means an individual, association, company, firm, partnership, corporation or any other legally recognized entity that is subject to this chapter and that enters into a professional employer agreement with a professional employer organization. See Arizona Laws 23-901
- Commission: means the industrial commission of Arizona. See Arizona Laws 23-901
- Compensation: means the compensation and benefits provided by this chapter. See Arizona Laws 23-901
- Insurance carrier: means every insurance carrier duly authorized by the director of the department of insurance and financial institutions to write workers' compensation or occupational disease compensation insurance in this state. See Arizona Laws 23-901
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Professional employer agreement: means a written contract between a client and a professional employer organization:
(a) In which the professional employer organization expressly agrees to co-employ all or a majority of the employees providing services for the client. See Arizona Laws 23-901
- Professional employer organization: means any person engaged in the business of providing professional employer services. See Arizona Laws 23-901
- Professional employer services: means the service of entering into co-employment relationships under this chapter to which all or a majority of the employees providing services to a client or to a division or work unit of a client are covered employees. See Arizona Laws 23-901
- Writing: includes printing. See Arizona Laws 1-215
B. As long as the professional employer organization’s professional employer agreement with a client remains in force, the professional employer organization shall be regarded as a co-employer of the employee.
C. The professional employer organization and its client shall be considered the employer for the purpose of coverage under this chapter and both the professional employer organization and its client shall be entitled to protection of the exclusive remedy set forth in section 23-1022. Both the professional employer organization and its client shall comply with sections 23-906 and 23-964.
D. When a professional employer organization enters into a professional employer agreement with a client in this state, the professional employer organization shall notify its workers’ compensation insurance carrier and the commission. The notification shall be on a form approved by the commission and shall include the following information:
1. The name and business address of the client employer.
2. Whether all or a majority of the client employer’s workforce is covered by the professional employer agreement.
3. Unless all of the client employer’s workforce is covered by the professional employer agreement, the name of the client employer’s workers’ compensation insurance carrier that is insuring the client employer’s obligation to secure compensation under section 23-961 for any employees who are not covered by the professional employer agreement. The professional employer organization shall also notify each client, in writing, of the client’s obligation under section 23-961 to secure workers’ compensation for any employees who are not covered by the professional employer agreement, even if such employees are hired after the execution of the professional employer agreement.
E. If a professional employer agreement is terminated, the professional employer organization shall immediately notify its workers’ compensation insurance carrier and the commission, in writing, of the name of the client and the date of termination of the agreement.