As used in this chapter:

1. (1) "Applicant" means a business seeking to be licensed under this chapter or seeking the renewal of a license under this chapter.
2. (2) "Client company" means a person that contracts with a licensee and is assigned employees by the licensee under that contract.
3. (3) "Administrator" means the administrator of the Department of Consumer Affairs.

4. (4) "Controlling person" means:

   1. (a) an officer or director of a corporation seeking to offer professional employer services, a shareholder holding ten percent or more of the voting stock of a corporation seeking to offer professional employer services, or a partner of a partnership seeking to offer professional employer services;
   2. (b) an individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of a company seeking to offer professional employer services through the ownership of voting securities, by contract or otherwise, and who is actively involved in the day-to-day management of the company; or
   3. (c) an individual employed, appointed, or authorized by a business seeking to offer professional employer services to enter into a contractual relationship with a client company on behalf of the business.
5. (5) "Department" means the South Carolina Department of Consumer Affairs.
6. (6) "Insured health benefit plan", for the purposes of this chapter, means a plan offered by an insurer licensed by the Department of Insurance.
7. (7) "Licensee" means a person licensed under this chapter as a professional employer organization to provide professional employer services. The term includes a professional employer services group licensed under Section 40-68-80.
8. (8) "Person" means an individual, association, corporation, partnership, or other private legal entity.
9. (9) "Professional employer services" means an arrangement by which employees of a licensee are assigned to work at a client company and in which employment responsibilities are shared by the licensee and the client company. The employee's assignment is intended to be of a long-term or continuing nature, rather than temporary or seasonal in nature, and a majority of the work force at a client company worksite or a specialized group within that work force consists of assigned employees of the licensee. Professional employer services does not include temporary employees.
10. (10) "Professional employer organization" means an individual business entity that offers professional employer services.
11. (11) "Professional employer organization group" means a combination of professional employer services companies that operates under a group license issued under Section 40-68-80.
12. (12) "Assigned employee" means a person performing services for a client company as affected by a contract between a licensee and client company in which employment responsibilities are shared.
13. (13) "Entire work force" means all persons engaged by a client company and are employees as defined in Title 42 including persons considered employees under Sections 42-1-400, 42-1-410, and 42-1-420.

HISTORY: 1993 Act No. 169, Section 1; 2005 Act No. 112, Section 1.