A.R.S. § 23-901.08: PEO Co-Employment
Professional employer organizations
What is a professional employer organization (PEO) in Arizona?
In Arizona, any business providing professional employer services (a PEO) is covered by this chapter, whatever name it uses, and while its agreement with a client lasts it is a co-employer of the employees, so both it and the client count as the employer and get the exclusive remedy protection. When it signs a client in Arizona, it must notify its workers' compensation insurance carrier and the commission on an approved form giving the client's name and address, whether all or most of the client's workforce is covered, and, if not all, the client's own carrier for the rest, and it must also tell each client in writing that the client must secure workers' compensation for any employees the agreement does not cover. If the agreement ends, it must immediately notify its carrier and the commission in writing of the client's name and the termination date.
Full statute text
Official text last checked against azleg.gov:
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.
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.
Drafted by AI from the official text and checked sentence by sentence against azleg.gov. ClearStatute is run by David Bartlett, who is not an attorney. Legal information, not legal advice — consult a licensed attorney for your situation.