Oklahoma Code § 40-600.2

Title 40. Labor: Definitions
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1.  “Client” means any person who enters into a coemployment
relationship as a coemployer with a professional employer
organization (PEO);
2.  “Coemployer” means either a PEO or a client;
3.  “Coemployment relationship” means:
a. as between coemployers, a relationship whereby the
rights, duties and obligations of an employer which
arise out of an employment relationship have been
allocated between coemployers pursuant to a
professional employer agreement and the Oklahoma
Professional Employer Organization Recognition and
Registration Act, and which is intended to be an
ongoing relationship, rather than a temporary or
project specific relationship, and
b. as between each PEO and a covered employee as to which
a professional employer agreement applies, an
employment relationship whereby:
(1) such PEO is entitled to enforce those rights, and
obligated to perform those duties and
obligations, allocated to such PEO by the
professional employer agreement and the Oklahoma
Professional Employer Organization Recognition
and Registration Act, and
(2) such covered employee is entitled to enforce
against such PEO those duties and obligations

allocated to the PEO by the professional employer
agreement and the Oklahoma Professional Employer
Organization Recognition and Registration Act;
c. as between each client and a covered employee to which
a professional employer agreement applies and
employment relationship whereby:
(1) such client is entitled to enforce those rights,
and obligated to provide and perform those
employer obligations allocated to such client by
the professional employer agreement and the
Oklahoma Professional Employer Organization
Recognition and Registration Act and whereby such
client is responsible for any employer right or
obligation not otherwise allocated by the
professional employer agreement of the Oklahoma
Professional Employer Organization Recognition
and Registration Act, and
(2) such covered employee is entitled to enforce
against such client those duties and obligations
allocated to the client by the professional
employer agreement and the Oklahoma Professional
Employer Organization Recognition and
Registration Act and any other duties and
obligations of an employer not otherwise
allocated by the professional employer agreement
or the Oklahoma Professional Employer
Organization Recognition and Registration Act;
4.  “Commissioner” means the Insurance Commissioner of the State
of Oklahoma;
5.  “Covered Employee” means an individual having a coemployment
relationship with a PEO and a client who have entered into a
professional employer agreement with respect to such person, and
shall include the client’s officers, directors, shareholders,
partners and managers to the extent such persons act as operational
managers or perform services for the client;
6.  “Department” means the Department of Insurance of the State
of Oklahoma;
7.  “Person” means any individual, partnership, corporation,
limited liability company, association, or any other form of legally
recognized entity;
8.  “Professional employer agreement” means a written contract
by and between a client and a PEO under which the PEO and the client
agree to establish a coemployment relationship and which satisfies
the requirements of subsection C of Section 7 of this act;
9.  “Professional Employer Organization” or PEO means any person
engaged in the business of providing professional employer services.
A person engaged in the business of providing professional employer

services shall be subject to registration under the Oklahoma
Professional Employer Organization Recognition and Registration Act
regardless of its use of the term “professional employer
organization”, “PEO”, “staff leasing company”, “registered staff
leasing company”, “employee leasing company”, or any other name;
10.  “Professional employer services” means the service of
entering into coemployment relationships under the Oklahoma
Professional Employer Organization Recognition and Registration Act,
in which, except in isolated instances, all or a majority of the
employees providing services to a client or to a division or work
unit of client are covered employees;
11.  “Registrant” means a PEO registered under the Oklahoma
Professional Employer Organization Recognition and Registration Act;
and
12.  “Temporary help services” means a service whereby a person
hires workers and assigns them to a person for a temporary time
period or nonpermanent basis to support or supplement the other
person’s workforce in special work situations such as, but not
limited to, employee absences, temporary skill shortages, seasonal
workloads, and special assignments and projects.  Temporary help
services shall not be deemed professional employer services.

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