31A-40-203. Covered employee.
(1) An individual is a covered employee of a professional employer organization if the individual is coemployed pursuant to a professional employer agreement subject to this chapter. An individual who is a covered employee under a professional employer agreement is a covered employee, whether or not the professional employer organization provides the notice required by Subsection, the earlier of the day on which: 31A-40-202(3) the employee is first compensated by the professional employer organization; or the client notifies the professional employer organization of a new hire.
(2) An individual who is an officer, director, shareholder, partner, or manager of a client is a covered employee: to the extent that the client and the professional employer organization expressly agree in the professional employer agreement that the individual is a covered employee; if the conditions of Subsectionare met; and (1) if the individual acts as an operational manager or performs day-to-day an operational service for the client.