New Laws Set Rules for PEOs With Clients in Tennessee

State of Tennessee Passes Legislation Pertaining to PEOs

The Tennessee State Senate has passed Senate Bill 2633 that codifies the requirements for PEOs with clients in Tennessee. The new legislation contains provisions for Professional Employer Organizations in TN and clarifies the rights and responsibilities of both PEO and their clients. PEOs operating in Tennessee will now be required to provide audited financial statements to the state, proof of workers’ compensation policy validity and proof of adequate working capital (or appropriate bond).